Many policy prescriptions emphasise poverty reduction through closer integration of poor people or areas with global markets. Global value chain (GVC) studies reveal how firms and farms in developing countries are upgraded by being integrated in global markets, but few explicitly document the impact on poverty, gender and the environment, or conversely, how value chain restructuring is in turn mediated by local history, social relations and environmental factors. This article develops a conceptual framework that can help overcome the shortcomings in ‘standalone’ value-chain, livelihood and environmental analyses by integrating the ‘vertical’ and ‘horizontal’ aspects of value chains that together affect poverty and sustainability.

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A Strategic Framework and Practical Guide

This article aims to guide the design and implementation of action research projects in value-chain analysis by presenting a strategic framework focused on small producers and trading and processing firms in developing countries. Its stepwise approach – building on the conceptual framework set out in a companion article – covers in detail what to do, questions to be asked and issues to be considered, and integrates poverty, gender, labour and environmental concerns. ‘Upgrading’ strategies potentially available for improving value-chain participation for small producers are identified, with the ultimate purpose of increasing the rewards and/or reducing the risks.

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