How To Develop A Farm Farm Capacity Development

Transcription

1 Capacity Development Concept for Value Chain Development Margret Will Lambertus Vogelzang Miriam Wanyonyi Heike Hoeffler Ministry of Agriculture

2 Capacity Development Concept for Value Chain Development Margret Will Lambertus Vogelzang Miriam Wanyonyi Heike Hoeffler

3 Editor: Promotion of Private Sector Development in Agriculture (PSDA) Authors: Margret Will Lambertus Vogelzang Miriam Wanyonyi Heike Hoeffler Graphic Design of Cover and Graphs: December 2008

4 Akili ni mali knowledge is power Preface Capacity Development aims at enhancing the ability and proficiency of people and organisations to initiate and manage changes for sustainable development: people need to acquire skills enabling them to improve their livelihoods in a market-oriented economy; private and public organisations have to raise their competencies and become accountable in their role as providers of services; finally, policy-makers and the administration have to adopt new attitudes and develop expertise for creating an enabling environment. This also holds true for the development of value chains as a means to achieving pro-poor growth through the generation of income, creation of employment and improvement of food security. Striving for sustainable socially equitable, economically viable and environmentally sound development with the relatively innovative value chain approach, calls for developing the necessary human and institutional capacities for achieving broad impact. This concept paper is intended to give guidance to the programme Promotion of Private Sector Development in Agriculture (PSDA) and its partners in Kenya, to other interested programmes within the Sector Network for Rural Development, Africa (SNRD) of the Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH as well as to any other interested party such as non-governmental organisations (NGOs), development partners or others challenged with the task of promoting agri-food value chains. The present Capacity Development Concept for Value Chain Development draws on four years experiences in developing and testing training curricula and manuals as well as implementing training of trainers (ToT) and farmer trainings in Farming as a Business (FaaB) and organisational development (OD) for farmer groups as well as several short courses on value chain development (VCD). This document reflects the programme s current state of the art recommendations for up-scaling Capacity Development for VCD. Special focus is laid on assuring the sustainability of Capacity Development (CD) by combining institutional and human resources development, as well as proposing tailor-made training cum mentoring (follow-up) to assure that trainees are put into the position to translate theory into daily work routines. However, it is a living document and will be further adapted, complemented and, if necessary, corrected as lessons will be derived during the course of implementation. The CD Concept for VCD still being work in progress, the authors would like to invite interested readers to comment and communicate any observations, corrections, case studies and best practices.

5 Acknowledgements Many people have assisted PSDA in developing curricula, manuals and other material and adapting them to the specific needs of VCD within the Kenyan environment. Having shared their practical experiences and recommendations with the authors, they have become an indispensable source of expertise, on which this concept draws. Thanks are due to all who have given their ideas and recommendations in creative discussions, fruitful working group meetings and during lively training courses. Special thanks go to the representatives of the Agri and Co-operative Training and Consultancy Services Ltd. (ATC) and their network of trainers, the Kenya Agricultural Research Institute (KARI), the German Development Service (Deutscher Entwicklungsdienst DED), the Sector Network for Rural Development, Africa (SNRD) and the GTZ Trade Programme, which developed ValueLinks 1, as a standard manual for GTZ-programmes and other users in the field of development cooperation. 1 GTZ (2007): ValueLinks Manual The Methodology for Value Chain Promotion; edited by: Andreas Springer- Heinze; 1 st edition; online available at:

6 Contents PREFACE ACKNOWLEDGEMENTS CONTENTS LIST OF ABBREVIATIONS I III 1 PROMOTION OF PRIVATE SECTOR DEVELOPMENT IN AGRICULTURE (PSDA) The programme in brief The Value Chain (VC) Approach 5 2 THE CAPACITY DEVELOPMENT CONCEPT FOR UP-SCALING VCD Understanding analogies and differences between CD and Training Terms and Definitions Purpose and Structure of the Capacity Development Concept for VCD Objective and Expected Impacts of Capacity Development for VCD Getting Practical: Some Principles of Capacity Development for VCD Principles for Quality Assurance of Capacity Development Roles and Responsibilities of Stakeholders in Capacity Development Two pillar approach of Capacity Development for VCD The First Pillar: Building Structures for Sustained Capacity Development Identification of Service Providers Development of Materials for Capacity Development Capacity Development of Service Providers (Training of Trainers) Quality Control of CD Activities and Certification of Service Providers The second pillar: Developing the capacities of target groups Training Cycle Phase 1: Training Identification Training Cycle Phase 2: Training Preparation Training Cycle Phase 3: Training Implementation Training Cycle Phase 4: Follow-up and Monitoring of Trainings Applying the CD Concept in practice the case of the Passion Fruit Value Chain within PSDA 23 3 MONITORING OF CAPACITY DEVELOPMENT AND IMPACT ASSESSMENT 25 i

7 Annex A: Generic Sample Formats for Capacity Development Activities Annex A.1: Annex A.2: Annex A.3: Annex A.4: Annex A.5: Annex A.6: Annex A.7: Annex A.8: Annex A.9: Training programme form for training organiser Assessment form for Curriculum Vitae for candidates for training organiser Training expectation form for trainees Training evaluation form for trainees Training follow-up form for trainees, trainer and training organiser Training cost/expenditure form for training organiser Training report form for training organiser Assessment form for training activities for training organiser Monitoring form for training progress for training organiser Annex B: Resource material Annex B.1: Annex B.2: Annex B.3: Annex B.4: Inventory of service providers Inventory of trainers Inventory of training venues Inventory of training packages ii

8 List of Abbreviations ATC BDS BMZ CD CV DED FAAB FEW FTC GoK GTZ HCDA KACE KARI KENFAP MDG MoA MoCDM MoFD MoLD MoU NGO OD PMU PSDA SMS SNRD TNA ToR ToT VC VCD Agri and Co-operative Training and Consultancy Services Ltd. Business Development Services Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung (Federal Ministry for Economic Cooperation and Development) Capacity Development Curriculum Vitae Deutscher Entwicklungsdienst (German Development Service) Farming as a Business Frontline Extension Workers Farmer Training Centre Government of Kenya Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH (German Technical Cooperation) Horticultural Crops Development Authority Kenya Agricultural Commodity Exchange Kenya Agricultural Research Institute Kenya National Federation of Agricultural Producers Millennium Development Goals Ministry of Agriculture Ministry of Cooperative Development and Marketing Ministry of Fisheries Development Ministry of Livestock Development Memorandum of Understanding Non-Governmental Organisation Organisational Development Programme Management Unit Promotion of Private Sector Development in Agriculture Subject Matter Specialist Sector Network for Rural Development Training Needs Assessment Terms of Reference Training of Trainers Value Chain Value Chain Development iii

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10 1 Promotion of Private Sector Development in Agriculture (PSDA) 1.1 The programme in brief Promotion of Private Sector Development in Agriculture (PSDA) is a bilateral programme, jointly implemented by the Ministry of Agriculture (MoA), the Ministry of Livestock Development (MoLD), the Ministry of Fisheries Development (MoFD) and the Ministry of Cooperative Development and Marketing (MoCDM) on behalf of the Government of Kenya (GoK), and the Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH on behalf of the German Government represented by the Federal Ministry for Economic Cooperation and Development (BMZ). Competitive firms (including small-scale farms), an efficient service sector, as well as favourable legal and economic framework conditions are prerequisites for pro-poor growth and thus for political, economic, and social stability. In order to build a competitive, however socially equitable and environmentally sound, market economy, mindsets in politics, administration, the business sector, and the civil society need to change. In line with this, PSDA aims at promoting private sector development in agriculture by improving the access to markets for small and medium agro-industrial entrepreneurs, by building sustainable structures for needs-oriented service provision as well as by supporting the development of conducive framework conditions with regard to value chain related policies, legislation, regulations, economic and social infrastructure. The programme s objective describes the changes, which the programme intends to achieve at the level of the final beneficiaries: Men and women running small and medium agricultural production and processing enterprises in the high- and medium-potential areas are enabled to fully utilise their production, market and employment potential while managing their natural resource base in a sustainable manner. Value chain development as the centrepiece of PSDA s approach to private sector development aims at developing sustainable rural-urban business linkages. The goal is to foster the change towards favourable political, legal, administrative and economic framework conditions as well as to strengthening existing and promoting emerging needs-oriented Business Development Services (BDS). This kind of structure building will make a major contribution to the formation of competitive value chains, and will hence generate sustained economic and pro-poor growth and improve rural and urban livelihoods. To achieve this, PSDA applies an integrated approach with three inter-related programme components: Component 1: Supporting a Conducive Policy Framework for Private Sector Development in Agriculture, Component 2: Value Chain Development in a maximum of eight Agricultural VCs, and Component 3: Promotion of Resource-friendly Technologies of Agro-Processing. Depending on the strategic intervention areas (leverage points) identified for value chain development, support to selected value chains 2 may cut across all three components, or be limited to selected components only. 2 PSDA promotes currently eight value chains: Beef, Dairy Goats, Irish Potatoes, Mangoes, Omena (dried fish), Passion Fruits, Poultry and Sweet Potatoes. 4

11 1.2 The Value Chain (VC) Approach The value chain describes the full range of activities which are required to bring a product or service from conception, through the different phases of production (involving a combination of physical transformation and the input of various producer services), delivery to final consumers, and final disposal after use. 3 As such, the VC methodology is a conceptual means for characterising the different stages that a given product experiences from initial product conception, to the provision of inputs, to primary production, to intermediary trade, to processing, to retail marketing and to final consumption, including the identification of the value added at each node of the value chain. Following the selection of products that merit to be promoted as value chains (due to their potential with regard to market access, employment creation, income generation and the like), the general approach to value chain development (VCD) is divided in four phases (see following graph): Phase 1: Phase 2: Phase 3: Phase 4: participatory VC Analysis/VC Mapping, participatory VCD Strategy and Action Planning, participatory Implementation of Interventions for VCD, and participatory Monitoring and Impact Assessment of VCD. The first phase, VC Analysis/VC Mapping, is about the quantitative and qualitative description of major features of the structures and performance of the value chain that may impede or foster competitiveness. It is about assessing the efficiency and/or deficiencies of business linkages along the entire value chain as well as of support services and of the business environment. Furthermore, VC Analysis aims at analysing VC economics and assessing the value added at every node of the VC as well as the potential for increasing value-addition. 3 Kaplinsky and Morris: A Handbook for Value Chain Research; IDRC 5

12 VC Analysis/VC Mapping plays a central role for the identification of entry points for upgrading and intervention strategies for the promotion of value chains. However, VC Analysis is not an end in itself, but aims at gaining knowledge on the business reality as a basis for elaborating viable VC up-grading strategies and interventions, such as, among others, Capacity Development (CD). According to PSDA s frame concept for interventions in value chains, every value chain supported by the programme is analysed along the following steps: participatory stakeholder analysis: e.g. to identify actors in the VC; including for example, analysis of CD needs of VC operators, assessment of service providers, identification of gaps in CD service provision; market and economic studies (if required): e.g. to quantify the market potential (i.e. local demand, the regional market, export opportunities) as well as transaction costs and other VC performance indicators; and participatory VC mapping: e.g. to identify the different process steps/transactions along the value chain, the actors involved and the strengths, weaknesses, opportunities and threats within the value chain. The results of the VC Analysis/VC Mapping form the basis for stakeholders to develop a needs-oriented VCD strategy and action plan (Phase 2), to steer the implementation of interventions (Phase 3), to monitor progress and to benchmark achievements through impact assessment (Phase 4). In this sense, VC Analysis is the starting point for conceiving and implementing interventions for VCD in general but as well for Capacity Development as a means for up-scaling value chain development. The complexity of the value chain approach and hence the challenge for conceiving Capacity Development programmes for VCD emerges from the interrelated structures and relations between the three-level stakeholder-system for VCD: VC operators the business structures at the micro level: represented by farmers, traders, processors, retailers and consumers as VC operators along the value chain and their respective self-help organisations; VC supporters the service structures at the meso level: represented by private, public and non-governmental organisations providing nonfinancial 4 and financial services to the business sector; and VC enablers the framework conditions at the macro level: represented by governmental institutions and administration, responsible for creating an enabling framework for VCD (policies, legislation, regulations, infrastructure, public utilities, and the like). The following graph illustrates that the business, service and framework structures need to operate and cooperate effectively and efficiently to strengthen the overall competitiveness of the value chain. 4 Business Development Services (BDS) 6

13 PROMOTION OF PRIVATE SECTOR DEVELOPMENT IN AGRICULTURE - PSDA The graph also shows the vital role Business Development Services (BDS) play in the promotion of VCD. Services are becoming increasingly important, not only in the process of economic development in general, but as well in VCD. Consequently, PSDA aims at strengthening the market for VC-related services, among other, Capacity Development services. 7

14 2 The Capacity Development Concept for up-scaling VCD 2.1 Understanding analogies and differences between CD and Training Terms and Definitions GTZ defines Capacity Development as the process of strengthening the abilities or capacities of individuals, organisations and societies to make effective and efficient use of resources, in order to achieve their own goals on a sustainable basis. 5 The Capacity Development concept of GTZ comprises four dimensions: Development of Human Resources, Cooperation and Network Building, Organisational Development, and System and Institutional Development. In line with this definition, the present concept paper understands Capacity Development as building sustainable institutional and human resources capacities within existing or emerging BDS-providers for skills development, knowledge and technology transfer: For Development of Human Resources the term Training is employed, which refers to skills development predominantly in the form of class-room adult-learning approaches complemented by mentoring to assist trainees translate theory into practice. Cooperation and Network Building refers to linkages between operators at certain stages of the VC (horizontal), along the VC (vertical), as well as to relations between VC operators and service providers and to public-private dialogue, which all provide platforms for Capacity Development. Cooperation and network building are promoted with a view to stimulating the emergence of self-help capacities for VCD in general and for peerlearning in the context of Capacity Development. Organisational Development (OD) comprises measures aimed at strengthening the capacities of potential providers offering services for Capacity Development. Organisational Development supports the establishment of sustainable BDS structures which will eventually maintain the offer of CD services beyond external support. System and Institutional Development refers to political, legal, infrastructure and administrative framework conditions for formal and informal education systems. However, VCD projects are usually not meant to implement full-fledged Capacity Development programmes, since it would in most cases be too far-reaching to also address education systems in partner countries. Even if not discussed in the present concept paper, development agents may nevertheless address this field if necessary and feasible within their projects scope. The CD Concept for VCD focuses especially on two dimensions: Organisational Development and Human Resources Development. 5 Source: GTZ-website Themes Capacity Development 8

15 2.2 Purpose and Structure of the Capacity Development Concept for VCD The prevailing fragmented linkages between VC operators, the low productivity at all stages of the value chain and the high wastage rates from the field to the consumer s table are the main causes for the currently weak marketability of local produce and low competitiveness of the domestic supply-to-market chains in many developing countries. Strengthening competitiveness through the development of linkages and improvement of processes and transactions requires the transfer of knowledge and technologies followed by mentoring VC actors to translate theory into daily work routines. For building sustainable structures for increased competitiveness and market access, capacities need to be developed along the entire VC and at all actor levels: VC operators the business structures at the micro level: technical, entrepreneurship and marketing skills, capacities for collective action (horizontal cooperation), for the management of business linkages (vertical cooperation) and continuous innovation as well as capacities for accessing and using services as well as for advocacy and lobbying; VC supporters the service structures at the meso level: human resources and institutional capacities enabling private and public service providers to offer competent client-oriented services to support the development of skills and capacities required by operators along the value chain; VC enablers the framework conditions at the macro level: human resources and institutional capacities enabling policy decision makers and subordinate public entities to manage change and establish enabling framework conditions. The Capacity Development Concept will be described along the following lines: objective and expected impacts of Capacity Development for VCD (chapter 2.3), principles of Capacity Development for VCD (chapter 2.4), first pillar: building structures for sustained Capacity Development (chapter 2.5), second pillar: building capacities of target groups (chapter 2.6), case study: application of the Capacity Development Concept (chapter 2.7) and monitoring of Capacity Development and Impact Assessment (chapter 2.8). The concept paper is based on field-experiences in the Kenyan context in combination with internationally recognised good practices. It has been developed in a stepwise process of theoretical reflections, expert discussions and field-testing involving PSDA staff, short term consultants as well as service providers, trainers and farmers as trainees in the period from April 2005 to September To facilitate the implementation of the Capacity Development Concept, various formats have been developed giving guidance for preparing, implementing and following up CD activities (see Annexes A and B). 2.3 Objective and Expected Impacts of Capacity Development for VCD The ultimate objective of Capacity Development for VCD is to strengthen existing and to support emerging structures for sustainable value chain development. In other words, CD for up-scaling the VC approach aims at achieving measurable changes in the performance of operators at different links of the value chain as a means to improving the 9

16 marketability and competitiveness of the entire value chain, which will in turn contribute to generating income, creating employment and hence to pro-poor rural growth. In a bid to helping stakeholders manage the implementation of projects, GTZ conceives project implementation strategies along so-called impact chains, defining different impact levels starting from activities realised and culminating in impacts aspired. The following graph gives an example of an impact chain for projects aiming at developing capacities for value chain development. 2.4 Getting Practical: Some Principles of Capacity Development for VCD Principles for Quality Assurance of Capacity Development The quality of Capacity Development is reflected in the impacts achieved and the costbenefit relations realised. To assure the quality of CD activities in this sense, principles have been developed for the following areas: orienting Capacity Development to impacts, linking VCD and Capacity Development, sub-contracting service providers, creating ownership and accountability of service providers, assuring quality of training activities, and assuring continuous improvement. Orienting Capacity Development to impacts: CD activities have to be practice-oriented, target group oriented and gender-balanced. In this line of thinking, CD should be implemented along the following principles: facilitate access to Capacity Development for poor target groups, e.g. by empowering smallholders through the promotion joint learning in farmer groups, 10

17 translate gender-specific roles and activities along the VC into gender-differentiated CD programmes and activities, make the participation of female VC operators feasible, e.g. by adapting the duration of trainings to the specific needs of female trainees, integrate HIV/AIDS issues beyond pure awareness campaigns by developing specific modules forming part of every CD activity, contribute to increasing the adoption of environmentally-friendly technologies by building the respective skills and knowledge base in technical as well as in management CD programmes, create strategic partnerships with other support organisations (public partners, development agents) to strengthen service providers and to achieve broader impact. Linking Capacity Development with VCD: The impact of Capacity Development on VCD mainly depends on the capacities of the development agents and their partners to gearing CD to the real needs of people and institutions playing a role in value chain development: business people from the farm to retail outlets, service providers and/or policy makers and civil servants. To align CD to the objectives and requirements of value chain development, the following principles should be applied: select VCs having a realistic and realisable potential for up-grading, develop VC action plans reflecting real up-grading needs, assure strong stakeholder ownership through participatory VCD, focus the CD approach on strengthening the selected VCs, orient CD activities towards real needs as defined in the VC action plans, select target groups for CD based on an assessment of their role in the VC system, select service providers for CD based on an assessment of their role in VCD. Sub-contracting service providers: Sub-contracting private service providers and/or involving public service providers on the basis of a Memorandum of Understanding implies that the quality of the services provided depends on the capacities of the service providers commissioned. To select appropriate service providers capable of implementing CD for VCD, the following principles should be applied: assure the quality of CD services by: identifying service providers using pre-established selection criteria (e.g. knowledge on the subject matter, methodologies and approaches to CD, willingness and capability to up-grade service capacities as required, as well as capability to sustain the service beyond external support), assessing the capacities of selected service providers and identifying needs for upgrading the capacities of the service providers (organisational development and/or human resources development); establish contracts/memorandums of Understanding (MoU) including detailed terms of reference (ToR) specifying objectives, target groups, scope of work, time lines and expected outputs; supervise service providers in a bid to assure clear orientation towards project objectives and clear understanding of their roles and tasks as well as to realise corrective actions if required; monitor the performance of the service providers and the impacts achieved at target group level. Creating ownership and accountability of service providers: Ownership and accountability are an issue where development agents or public entities respectively commission public or private BDS providers to supply services to third party beneficiaries. To assure quality of services, client-oriented service provision and accountability to 11

18 target groups (beneficiaries) in such tri-partite service relations, the following principles should be applied: stimulate the involvement and commitment of beneficiaries (trainees) through cost sharing 6 right from the beginning and if possible cost recovery in the longer run, promote accountability of service providers to clients (beneficiaries/trainees) through direct linkages between service providers and clients as well as cost-sharing. Assuring quality of training activities: To assure the quality during the course of implementation, the following principles should be applied: limit the size of training groups (15-25 participants proved appropriate), establish and apply appropriate criteria for the selection of participants, select trainees based on capacities, gender and further criteria from case to case, establish and apply appropriate criteria for the selection of service providers, select service providers based on an assessment of their capacities, explain project and CD objectives to service providers and participants, facilitate learning by doing through active/participatory approaches to CD, facilitate adoption through practice-oriented and VC-specific CD approaches, facilitate learning from each other by fostering exchange of experiences (peer learning), facilitate learning through a stimulating and motivating learning environment, promote change of attitudes by building confidence and self-esteem of participants, assure follow-up to CD to assist participants to translate the theory into daily practice, and incorporate cross-cutting issues such as gender, environmental impacts and VC-specific impacts of HIV and AIDS. Assuring continuous improvement: Continuous improvement of the approach and instruments as well as of the human resources implementing Capacity Development is necessary to be able to improve performance and respond to ever-changing challenges in Capacity Development and value chain development. This requires frequent up-grading of the capacities of BDS providers through training of trainers, coaching and supervision as likewise the regular review and revision of curricula and CD material Roles and Responsibilities of Stakeholders in Capacity Development Capacity Development for VCD requires the involvement and commitment of different stakeholders, who, in turn, may have different needs for capacity development: target groups (VC operators, beneficiaries), local private and public partner organisations (implementing partners), service providers, programme staff responsible for VCD, programme staff responsible for CD coordination, and programme management. Target groups (VC operators, beneficiaries) should be committed to developing their capacities, be willing to share costs for the training activities, be willing to contribute to the preparation and implementation of the CD activities, 6 e.g. contributions in the form of payments for own transport and/or food and/or accommodation. 12

19 be prepared to participate during the entire CD process, and be motivated and able to implement relevant follow up activities. Local private and public partner organisations (implementing partners) should appoint competent staff to cooperate with the development agent and the target groups, support service providers to prepare the CD syllabus as required, support service providers to implement the CD activity as required, and support the follow up activities as agreed. Service providers have to be reliable and accountable for the quality of the CD services provided, be capable to develop VC-/client-oriented CD activities, be capable to implement CD activities according to the approved ToR, assess the impact of the CD activities, turn conclusions and recommend improvements to methodologies and instruments, and report on the results of the CD activities. Programme staff responsible for VCD has to coordinate and oversee VCD activities, but not implement directly, facilitate the assessment of CD needs of selected VCs in a participatory way, support the development of CD syllabus for selected VCs in a participatory way, draft Terms of Reference (ToR) for VC-specific CD activities, brief and supervise contracted service providers with regard to VC-specific issues, feed the programme monitoring system with relevant data, provide the staff responsible for CD coordination with relevant reports, arrange payments to service providers after approval of contracted activities, and monitor progress and impacts of CD and report to the programme management. Programme staff responsible for CD coordination has to act as contact person responsible for CD issues within the development programme, establish and maintain an inventory of existing service providers, coordinate the development of CD curricula, manuals and toolkits as required, contribute to drafting ToR for contracting service providers, brief and supervise contracted service providers with regard to CD-specific issues, control the quality of services provided and request improvements, if necessary, draw conclusions from reports (CD contents/methodologies, service providers, etc.), initiate and coordinate further development of the programme s CD Concept, and organise meetings for exchange of experiences to further develop the CD Concept. Programme management should plan CD for VCD strategically, provide necessary financial and human resources for implementation, formulate needs for reporting and monitoring of progress, and backstop and motivate staff and provide qualified feedback. 13

20 PROMOTION OF PRIVATE SECTOR DEVELOPMENT IN AGRICULTURE - PSDA Two pillar approach of Capacity Development for VCD Striving to achieve broad and sustainable impacts through the up-scaling of the value chain approach, the Capacity Development Concept for VCD builds on two pillars: The First Pillar: Building Structures for Sustained Capacity Development: Aiming at improving the demand-orientation and quality of Capacity Development services offered, institutional and human resources capacities of private and public service providers need to be up-graded (see section 2.5). The Second Pillar: Developing the capacities of target groups: Aiming at improving the performance of selected value chains, capacities of target groups, namely operators along VCs such as such as farmers, traders, processors and consumers (e.g. consumer education) need to be up-graded (see section 2.6). Based on the structures for Value Chain Competitiveness described in Graph 2, the following illustration depicts the relation between these two pillars and explains the roles of a development agent such as PSDA and service providers in Capacity Development for VCD: While the programme aims at facilitating the emergence and strengthening of the capacities of the service system (1st pillar), the programme also commissions service providers to build capacities of target groups (2nd pillar). 14