Global agricultural value chains, standards, and development

Abstract

Understanding the development implications of agri-food value chains is crucial as they are a fundamental component of developing countries’ growth potential and could increase rural incomes and reduce poverty. This note reviews some of the implications of these global agri-food value chains for developing countries and global poverty reduction. I focus on five aspects: (a) smallholder inclusion in value chains; (b) impacts on smallholder income and food security; (c) technology transfer and access to inputs; (d) labor market effects and impacts on gender and rural poverty; and (e) the interaction between liberalization policies and value chains.[1] I summarize key insights and provide references to a rapidly growing literature. [1] One important issue which I do not discuss here is the use (or effect) of standards as non-tariff barriers for global trade. I refer to Beghin (2013) and special issues of the World Trade Review (guest edited by Heckelei and Swinnen in 2012) and the World Economy (guest edited by Beghin and Orden in 2012).