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IFC (2012) Poverty Literature Review: Supply Chain Linkages (FAST, EST, SCI) and Poverty Reduction

  • This briefing note is a literature review that aims to identify and understand transmission links between supply chain development projects and poverty reduction. It provides examples of projects and evaluations carried out by different donor agencies or multilateral organizations which demonstrate this link. The note also provides a snapshot of IFC’s SBA products, such as Sustainable Community Investment (SCI); Environmental, Social and Trade Standards (EST) and Farmer and SME Training (FAST) and the portfolio composition by regions. This review does not attempt to measure or demonstrate the impact of IFC projects.
  • The review provided examples of supply chain projects and initiatives carried out by different donor agencies or multilateral organizations which demonstrated the link with poverty alleviation. While this brief shows that the casual linkages exist along the value chain, further studies with statistical analysis of different supply chain projects (implemented by either IFC or other organizations) is required to test the hypotheses that these interventions increase income of the poor. Currently, only select projects in IFC portfolio directly track the change in income of farmers.Thus, to monitor and evaluate the impact in most of IFC interventions may require development and/or adoption of a new set of indicators and methodology. It should also be noted that carrying these evaluations could be a costly exercise.
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