Understanding the impact of trade-related capacity building interventions

Understanding the impact of trade-related capacity building interventions

This article presents the findings of a pilot study commissioned by COLEAD in the framework of the FFM+ programme to explore the ‘spillover effects’ of trade-related capacity building interventions over the past two decades aimed at improving the export horticulture value chain in Kenya. Spillovers, understood as unintended impacts of development interventions, have been underexplored in standard project performance matrices. While some work has been done in this area by organizations like the WTO’s Standards and Trade Development Facility (STDF), a systematic understanding and integration of these effects into future programming remains lacking. This pilot study was designed to uncover potential spillovers and lay the groundwork for a more comprehensive study in the future.

Since 2001, COLEAD has implemented various programmes to strengthen the agri-food export sector in ACP countries, with a focus on enabling smallholders, farmer groups, and MSMEs to access international and domestic horticultural markets by addressing SPS issues and market requirements sustainably. Despite progress in market access and SPS capabilities, there has been limited understanding of how trade-related SPS capacity building affects domestic practices and institutions, and related development impacts on productivity, health, and livelihoods.

The STDF’s initiative in 2017-18, which involved Michigan State University, attempted to study indicators of spillovers but faced methodological challenges and a lack of data. Nevertheless, it highlighted the need for practical methods and advice to better integrate spillovers into programme design. COLEAD’s participation in the STDF Spillover Working Group led to a recommendation for a detailed country case study, which this report describes, focusing on Kenya due to its extensive activity in the horticulture sector. This study aims to understand the broader impacts of programming, beyond compliance with SPS standards, including impacts on resilience, livelihoods, and power dynamics.

The findings are based on fieldwork conducted in Kenya between June and August 2023, including interviews and focus group discussions with stakeholders throughout the horticulture value chain. Over 100 individuals participated in this research.

Main conclusions of the spillover study

The study identified several significant spillover effects with implications for future programming both in Kenya and other regions. A more detailed research process is needed to explore these spillovers further, allowing COLEAD and other agencies to proactively integrate these impacts into future interventions.

The overarching goal of international support to Kenya’s horticulture sector has been to enable compliance with trade-related standards, thus unlocking export potential. While the primary focus has been on achieving market access, the spillover effects have been substantial. These effects include enhanced professionalism and systematization within companies, improved individual skills leading to new business ventures, and stronger government institutions.

One notable positive spillover is the internalization of good practices within companies, moving from mere compliance to an ingrained understanding of the value of these practices. This shift has led to more consistent and professional business operations, reducing rejection rates and improving traceability. Additionally, many individuals trained through COLEAD’s programmes have leveraged their skills to establish new businesses or provide services within the supply chain, enhancing overall sector resilience.

Government institutions have also benefited, with interventions contributing to policy formation and institutional development, although challenges remain.

Negative spillovers were also highlighted, such as the impact of piece rates in packing houses on worker welfare, which were not directly caused by COLEAD’s support but highlight the need for greater awareness of potential negative impacts and proactive measures to address them.

The creation of an industry capable of adapting and thriving despite challenges, such as static prices and increased competition, demonstrates the broader impact of spillovers. The sector has diversified into other crops and value-added products, applying skills learned from export horticulture to domestic markets as well.

Spillover effects extend beyond the horticulture sector, with individuals applying skills such as first aid and food preparation in their personal lives, enhancing self-confidence and improving power dynamics within the supply chain. This has enabled exporters to push back against some unfair practices by customers.

The study underscores the need for a more comprehensive examination of spillover effects to develop meaningful metrics and integrate these impacts into future programming. Understanding these spillovers can significantly enhance the planning and effectiveness of future interventions, particularly by demonstrating to younger people that farming can be a viable career option.

In conclusion, while spillovers are often unplanned and unmeasured, this study has highlighted their importance in shaping the overall impact of development interventions. A detailed understanding of these effects can help evolve programmes to be more relevant and responsive to changing needs, ensuring that future interventions are both effective and sustainable.

For more information, consult the full study here.

This activity is supported by the Fit For Market Plus (FFM+) programme, implemented by COLEAD within the Framework of Development Cooperation between the Organisation of African, Caribbean and Pacific States (OACPS) and the European Union. This publication receives financial support from the European Union and the OACPS. The content of this publication is the sole responsibility of COLEAD and can in no way be taken to reflect the views of the European Union or the OACPS.