Institutional change in value chains : evidence from tea in Nepal

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IDL-54968.pdf (496.71 KB)

Date

2015-10

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Publisher

Elsevier

Abstract

The impact of participation in global value chains is not uniform. In this case study of the Nepali tea value chain, the status of labor, factory, and informal institutions conditioned whether small-scale farmers benefitted from upgrading to organic production. Organic tea is sold relatively directly to small-scale retailers in developed countries. The value chain is buyer-driven, and conventional and organic threads are coordinated through spot and captive governance respectively. The institutional history of upgrading in Ilam, Nepal, highlights how institutional change unfolded around Organic initiatives. In reaction to shortcomings of the code of conduct (CoC) upgrading process and burgeoning markets, several factories investigated converting to organic production.

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Keywords

DEVELOPMENT STRATEGY, VALUE CHAINS, LIVELIHOODS, CASE STUDIES, TEA, ORGANIC FARMING, LOCAL LEVEL, INSTITUTIONAL FRAMEWORK, ORGANIZATIONAL CHANGE, OPERATIONS RESEARCH, ECONOMIC THEORY, SMALLHOLDERS

Citation

Mohan, S. (2016). Institutional Change in Value Chains: Evidence from Tea in Nepal. World Development, 78: 52-65. http://dx.doi.org/10.1016/j.worlddev.2015.10.004

URI

http://hdl.handle.net/10625/54968
 http://www.sciencedirect.com/science/article/pii/S0305750X15002260

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IDRC Research Results / Résultats de recherches du CRDI
2010-2019 / Années 2010-2019
Research Results (Fellowships and Awards) / Résultats de recherche (Programme de bourses)