Developing institutional and policy related mechanisms to enable pro-poor growth at the local level is essential if there is to be community driven development. Currently, there are a number of blockages holding back local growth including monopolies and unfavorable marketing policies.
The focus of this component is to create a more reliable and favourable economic environment for poor farmers. In order to achieve this, NUDP will strengthen the capacities of district authorities to facilitate the operation of commodity chains. NUDP will also support the provision of advisory services to farmers and farmer groups to improve their ability to negotiate with contracts with traders and investors.
A number of value chain analyses will be completed within the first two years of the NUDP. According to the feasibility study, the most urgent value chains to be assessed are maize and rubber (focusing on Luang Prabang, Phongsaly and Houaphanh), job's tears, stick lack (focusing on Luang Prabang) and tea (focusing on Phongsaly). Public-private regulatory and development bodies will be established for important agricultural commodities.
Poor farmers in the target districts benefit from a more reliable and more favourable economic environment for agriculture production and NRM.
- Trade concessions for key commodities and NTFPs have been eliminated by the end of the second year, and replaced by regulatory and development bodies (Commodity Chain Organizations, CCOs) in selected areas by the end of the fourth year
- The Agricultural Services delivered in the target districts by companies/businesses (including through 2+3 schemes) are better regulated and monitored.