Promoting resource efficiency along the value chains of key sectors in South Asia

Policy-makers in South Asia as well as other developing economies are increasingly focusing on the development of small &medium enterprises (SME) and agro-based value chains as a means of promoting economic growth and poverty reduction. This is because agriculture and SMEs account for a major share of workforce providing employment to millions, both directly as well as indirectly, apart from contributing to Gross Domestic Product (GDP) and export earnings. However, these sectors are also vulnerable due to high dependence on natural resource (land, water, energy, forests) with significant environmental (waste generation, pollution of water, air & land, resource depletion etc.) and social (poor working condition, insecure livelihoods etc.) externalities.

A supply chain based development approach with a focus on effective resource conservation and management that also addresses environmental and social issues can help in dealing with these challenges. If effectively implemented, such an approach can have a positive impact on:

• ensuring sustainable supply of natural resources/ raw material/other inputs, (ii) profit margins of the SMEs and primary producers
• sustaining employment in these sectors
• offering access to better market to small and medium entrepreneurs, and
• create business linkages with large national and international buyers
  

Such developments will have a number of co-benefits like better quality of life for workers and their family (better access to educa tion, health and other facilities due to sustained and better earnings), better and safe work place environment etc. It will also help in building a responsible and sustainable relationships among supply chain actors and enhanced resource efficiency, food security, responsible production and trade. In India, a number of similar interventions have been supported through policy changes, technological input, institutional reforms, changes in practices etc. along the value chain of key sectors with positive impact on resource conservation and overall bottom line, particularly for the primary producers and SMEs. The knowledge from these initiatives has high value for replication and scale up in other countries in South Asia region, which have quite similar socio-economic & institutional construct along with similarity in production and manufacturing practices. This knowledge base can also facilitate the development process in these countries by providing access to learning (from both successes and failures), to enable them to make informed decisions.