Practical adaptation of Value Chain Analysis and Tools

in the TREE Methodology

1. The TREE Methodology

2. Latest country adaptation

3. Adaptation of Value Chain Analysis

Contents of Presentation

The TREE Methodology The TREE Methodology

TREE - Training for (Rural) Economic Empowerment International Labour Organization (ILO)

Weak/ absence Weak/ absence of economic of economic

support support STRUCTURES and

servicesservices

Low level of production Low level of production SKILLS and entrepreneurial and entrepreneurial

awarenessawareness

Absence/ Absence/ lack of lack of appropriateappropriate

micro finance schemes micro finance schemes & internal market & internal market

SYSTEMS

Weak institutional

support

Low level of local development

Weak linkages with the formal sector

Tri-Dimensional Image of the Poverty Problem seen from the lens of TREE

Under- Under- privileged privileged Groups in Groups in Rural & Rural & Urban Urban

VillagesVillages

The TREE response and Intervention Strategy

SKILLS

Build capability to Build capability to START START economic activities thru skills economic activities thru skills

training-cum- enterprise training-cum- enterprise development and start-up tools development and start-up tools

and equipmentand equipment

STRUCTURES

Improve local capacity to Improve local capacity to support and support and EXPANDEXPAND

enterprise projects thru enterprise projects thru group organizing and linking group organizing and linking

with business & service with business & service organizationsorganizations

SYSTEM

Develop local systems to Develop local systems to SUSTAINSUSTAIN economic activities economic activities

thru community owned & thru community owned & managed capital, & promoting managed capital, & promoting

internal market/ community internal market/ community enterprise linkagesenterprise linkages

Institutional development

of communities

Community and

local development

Strategic linkage with the formal

sector

Under- Under- privileged privileged Groups in Groups in Rural & Rural & Urban Urban

VillagesVillages

Extension of Formal Vocational Training Extension of Formal Vocational Training

• Rural Vocational Training• Outreach Training Programme• Mobile Training Programme

Emergence of Non-formal/ Rural Skills TrainingEmergence of Non-formal/ Rural Skills Training

• Skills Development for Self-Reliance (SDSR)• Training for Rural Gainful Activities (TRUGA)• Community-based Training (CBT)

Expansion to People Empowerment & Community Expansion to People Empowerment & Community DevelopmentDevelopment

• Training for (Rural) Economic Empowerment (TREE) – started in Philippines & Pakistan adapted later in Sri Lanka, So. Pacific, etc.

Evolution of Community-based Training in ILO

The Place of TREE within the TVET System

FORMAL TVETFORMAL TVET

Non-Formal TVET

Enterprise and Community Development

Skills Training

TREE

1. Concept - TREE is not a training programme, not a training project. It is a Methodology - a tool for identifying economic opportunities and training needs in order to develop and implement training programmes

2. Focus - specifically focused on disadvantaged social and economic sectors in marginalized communities that are not reached or served by the formal or non-formal training systems

3. Objective – to help reduce poverty in the countryside and minimize rural to urban migration by increasing income opportunities in the basic sectors in the rural informal economy

4. Approach - the methodology follows a convergent and systems approach of participatory needs assessment, training designing and delivery, and organizing post-training support mechanisms

5. Result of planning - tailor-made training proposals that can be delivered by training providers in the communities, vocational training centers, small enterprises and big industries

6. Tools and instruments - The assessment tools and instruments are simple, practical and designed to empower the target groups to use them with (initial) facilitation of local partners

7. Applicability - The methodology can be applied to local development programs or in the non-formal vocational training system of a country

Brief Description & Characteristics

Selection of Project sites is based on:

1. Labor market studies

2. Manpower requirement analysis

3. Market opportunities

4. Development programs and policies, etc.

But Selection of Local Projects is based on:

1. Rapid area and sectoral assessment

2. Participatory project planning techniques

3. Targeted survey instruments

Two Components of the Present TREE Methodology

Skills Training and Enterprise Creation Component:

Build the capabilities of the poor and underprivileged population to identify, prioritize, plan and implement self-employment or wage-employment training projects

Community Economic Development Component:

Build the capability of Communities or Target Groups to link to, or manage local support mechanisms to expand and sustain their economic projects

Former CBT programmesFormer CBT programmes Added component to become TREE

Training designing,

organizing & delivery

Mainstreaming with LED

programs & formal sectors

(Re) organizing

target groups &

communities

Linking/ Installing credit & market

mechanisms

Mobilization, organization, capability-building of Partners

Project Performance Monitoring

Stages/ Elements of the TREE Methodology

Start Economic Activities Expand Sustain

ECOTRAIN assessment,

preparation of proposals

Post-training activities &

follow-up

- Community/ TG identifies Self & Wage Employment (SE/WE) opportunities - Prepares training proposals

- Training is delivered: SE trainees are provided with tools, trained to prepare Transition Enterprise Project (TEP)

- SE Trainees implement TEP. WE trainees are employed in pre-identified industries, or as informal apprentices

-Trainees plus other community members are (re) organized

- Group trained on community enterprise system - provided with CORE Fund, operates enterprise projects

- further skills upgrading, prepared for skills certification &/or sustain their enterprise

Latest Adaptation of the TREE Methodology

TVET Reform Project Bangladesh

Economic Opportunities and Training Needs Assessment Process (ECOTRAIN)

PPP PPP – Participatory Project Planning

Preparation of Training

Proposals

TNA-ISOTNA-ISO– Training Needs Assess-ment of Informal Sector Operators

VCA-RTO VCA-RTO – Value Chain Analysis of Rural Trades & Occupations

JOSJOS – Job Opportunities Survey in SMEs

CDSCDS – Consumer Demand Survey

Geographic/ Village & Target Group Approach

Industry/ Trade Approach

1. Local raw materials or products

2. Distinctive skills and crafts

3. Chain of local enterprises

4. Modern products & technologies

5. Natural resources

6. Infrastructures

7. Service Providers

8. Known consumer demands

9. Existing companies, enterprises

10. Development projects in the area

RCA RCA – Rapid Community Appraisal

Feasibility Studies,

Employment Pledge

SJU SJU – Survey of Jobs for UPG in big/large Co.

Local Coordinating Committee Meeting

Links of ECOTRAIN results with types of Training Proposals

PPP PPP – Participatory Project Planning

TNA-ISOTNA-ISO– Training Needs Assess-ment of Informal Sector Operators

VCA-RTO VCA-RTO – Value Chain Analysis of Rural Trades & Occupations

JOSJOS – Job Opportunities Survey in SMEs

CDSCDS – Consumer Demand Survey

SJU SJU – Survey of Jobs for UPG in big/large Co.

1. Local raw materials or products

2. Distinctive skills and crafts

3. Chain of local enterprises

4. Modern products &

technologies

5. Natural resources

6. Infrastructures

7. Service Providers

8. Known consumer demands

9. Existing companies, Ent.

10. Development projects in area

RCA RCA – Rapid Community Appraisal

Type A - Training Proposal for the establishment of New group enterprises

Type B - Training Proposal on Small Business Management for Informal Sector Operators (ISO)

Type C - Training Proposal on Transition Enterprise Planning and Management

Type D - Training Proposal for developing local chain of growing trades and occupations

Type E - Training Proposal for Basic or Skills Upgrading Training

Review/ Assessment, Approval of

Training Proposals

Designation &

Contracting Training Provider/ Institution

Role of Lead Agencies

PPP – Participatory Project Planning

Preparation of Training

Proposals

TNA-ISO– Training Needs Assessment of Informal Sector Operators

VCA-RTO – Value Chain Analysis of Rural Trades & Occupations

JOS – Job Opportunities Survey

CDS – Consumer Demand Survey

Local raw materials or products

Distinctive skills and crafts

Chain of local enterprises

Modern products & technologies

Natural resources

Infrastructures

Service Providers

Known consumer demands

Existing companies, enterprises

Development project in the area

RCA – Rapid Community Appraisal

Feasibility Studies, Employment Pledge

The Whole Planning Process

ECOTRAIN Assessment

SJU – Survey jobs for UPG in BLC

TTCs – if training proposals fall under BMET’s non-formal training programmes

TSCs – if training proposals fall under DTE’s non-formal training programmes

Small Informal Enterprises – if training proposals are for informal apprenticeship

Private Training Centers or Industries – that the training proposals have specifically identified

Local Government NGO Training Centers – if training proposals are to establish new enterprises within the villages for IPs, PWD, Women, Youth

Training Providers (Ideally the same local partners/ facilitators)

Local Coordinating Committee Meeting

Assigning of Trainers, Preparing training design/ syllabus

Selection of Trainees

(with Community/

Target Group)

Procurement of Training Inputs and materials

(Tools, small equipment)

Delivery of Training (Skills

or together with enterprise development

Post-training assistance (job placement or advisory to enterprise projects)

Community-based Enterprise System Development

Component

Training Delivery

Role of Training Providers/ Institutions

Monitoring, Tracer Studies - by Lead Agencies

Lead Implementing

Agencies (DTE, BMET,

NILG)

Local level Coordinating Committees

Community Partners/ Project

Mobilizers

Target Communities/ Target Groups

National Coordination Committee

2. Proponents submit proposals to local coordinating committee for development assessment

3. Lead agencies review the proposals, provide budget allocation, assign training providers/ institutions

(Proposed) Delivery System

1. Economic Opportunities and Training Needs assessment, preparation of Training Proposals by community/ target groups with facilitators

4. Training Projects are implemented by appropriate training providers/ institutions

Announce a “Call for Submission of CB-TREE Training Proposals

Adaptation of Value Chain Analysis in the

TREE Methodology

Firm Infrastructure

Human Resource Management

Technology Development

Procurement

Inbound Logistic

s

OperationsOutbound Logistics

Marketing and Sales Service

PRIMARY ACTIVITIES

SUPPORT ACTIVITIES

Firm-based Value Chain Model – Michael Porter

Sea

mle

ss s

yste

ms

for

bu

sin

ess

com

pet

itiv

enes

s

Inbound Logistics: raw

materials business

inputs

Processing/ Manufacturing/Se

rvice industry sectors

Distribution, Placemen/

Middlewo/men, Wholesalers,

etc.

Points of Sales

Consumers

Application of VCA in Training Needs Assessment

Determine production

materials that can be locally supplied;

kind, volume, number of producers

required, area of land needed, etc.

Determine: kind of products,

services, systems &

procedures, technology, etc.

Determine modes of transporting

products, volumes,

destinations, primary buyers

Determine retailers:

who, where, buyers, service

areas, etc.

Identify jobs & skills

requirements, numbers needed to

satisfy demand

Identify jobs & skills

requirements, number of workers needed

Identify jobs & skills

requirements, number of workers needed

Identify jobs & skills

requirements, number of workers needed

Organize & Conduct

comprehensive training program

1. Identify a firm or company operating in the community or nearby area (Anchor Firm)

2. Identify the products or services being manufactured or offered by the company

3. Identify and trace out the production/ service inputs being procured by the company

4. With the help of the company, determine which of them can be supplied locally by local residents

5. Get approval or cooperation of the company on a local procurement from the residents

6. Prepare training program design, secure funding and conduct training

7. Prepare to implement the local procurement agreement with the company

Steps in the Economic Opportunities and Training Needs Analysis

Possible income-generating activities derived from this approach:

Supply of production materials, small tools, furniture, fixture, transport, uniforms and foods for workers, free acquisition of scrap or discarded production materials, etc.

ANCHOR FIRM/

COMPANYMarket

PS

PS

PS

PS

Scrap/ Discarded Materials

Primary Suppliers

SS

Secondary Suppliers

Application of VCA in employment generation through a local firm/ company (Anchor firm approach)

Planting of

Abaca

Pre-processing

of raw materials

and weaving

Big Middlewo/men buy the Tinalak

Mats

Big firms make finished

products from the Tinalak mat

Tinalak Weaving (Lake Sebu, South

Cotabato, Philippines)Traditional system

Area of intervention

Product makers sells

to Whole-salers

Retailers/ Buyers

Planting of

Abaca

Pre-processing

of raw materials

and weaving

Members make

finished products from the

Tinalak mat

Retailers/ Buyers

Organizing the materials suppliers, weavers

Training of some members in

making finished products from the

tinalak

Distribution to Whole-

salers

Retailers/ Buyers

Group put up

common marketing

facility

Training of some members in

entrepreneurship & business

management

Supply of Feeds

Supply of Chicks

Raising the Chickens

General System in Poultry Raising

Meat Processing

Product Marketing

Consumers

Buyers/ Consumers

Organize families, train in skill in home-based

poultry raising

Organize and train groups in

commercial meat

processing and business management

Assign, train and provide capital to some families to

distribute/ market the products

Areas of Intervention Goal: Create additional income, employment, local economic development

Farm-gate Buyers

Industry processors,

Restaurants, etc.

VCA applied to Youth Project in Cassava Paste/ Flour Making: Western Samoa,

South Pacific

Processing, packaging

Product Placement in

their small grocery store

Cassava planting, supply by members provided

without cost

Buyers/ Consumers

Training in Internet advertising and selling, market expansion

through other stores in the urban center: Apia

Organizing the enterprise elements of supply inputs and processing, training in costing

and marketing

Existing group operation

YEP Project intervention

Native trinkets (tsurba-tsurba) industry

Material suppliers

Trinket makers

City-based Middlemen/

women

Malls/ Boutiques

Mall Buyers

Local buyers/ tourists

Organize the trinket

makers and

material suppliers

Assign/ train

wholesale buyer

among the members

Assign/ train

forwarder among

the group

Areas of Intervention

Traditional system

Post-tsunami CB-TREE Project General Strategy: Ampara, Sri Lanka

Skills training and enterprise development

Organizing communities

and group/ job placement assistance

Providing micro

finance through Co-

Fund Scheme

Community Planning,

identification of economic opportunities

NGO-operated common market facility

Project Additional Intervention

Adaptation of the TREE Methodology

Organizing federations of

community members and

group enterprises

Employment/ Self-employment

Critical Elements:

1. Community-centered planning

2. People-oriented project designing

3. Product/ service-oriented skills training

4. Practical enterprise creation training

5. Community-based enterprise system organizing

6. Community/ member-based micro-finance support

7. Local economic support mechanisms