Making markets work for the poor: the case of emerging wool enterprises in South Africa
Farmers raising sheep on South Africa's communal lands have in some cases been assisted to access the international wool market; this success can be analysed from the perspective of making markets work for the poor. This paper starts off by briefly sketching the international research on making markets work for the poor. In the case of the woolgrowers, the following aspects are identified as pivotal factors in ensuring adequate market access for the poor: understanding how the markets work and eliminating the barriers; appropriate technical support; institutional development; the role of infrastructure; credit access; an appropriate role for large enterprises; technical skills; and building on existing activities, as well as the support of local assets. A number of stumbling blocks are also identified, namely the financing method; cost benefits; informality; property rights and local customs. The principles in the literature are assessed by means of examples from the South African case study.Bundy, C. (1979) The Rise and Fall of the South African Peasantry, University of California Press, Los Angeles.
Department of International Development (DFID) (2000) Making Markets Work Better for the Poor: A Framework Paper, Economic Policy and Research Department and Business Partnership Department, London.
De Soto, H. (1989) The Other Path: The Invisible Revolution in the Third World, Harper and Row, New York.
De Soto, H. (2000) The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else, Black Swan, London.
D'Haese, M. and Vink, N. (2003) Local Institutional Innovation on Pro-poor Agricultural Growth: The Case of Small-woolgrowers' Associations in South Africa, Garant publishers, Antwerp.
D'Haese, M., Calus, M., Kirsten, M.J., Van Huylenbroeck G. and Bostyn, F. (2001) ‘Efficiency analysis of small-scale wool production in the former Transkei, South Africa’, Working Paper 2001-04, Department of Agricultural Economics, University of Pretoria.
D'Haese, M., Verbeke, W., Van Huylenbroeck, G., Kirsten, M.J. and D'Haese, L. (2003) ‘Institutioinal innovation to increase farmers' revenue: a case study of small-scale farming in sheep, Transkei region, South Africa’, 25th International Conference of Agricultural Economists, Durban, 16-22 August.
Fourie, C. (2004) ‘CMW begin nuwe SEB-maatskappy’, Die Burger, 26 November 2004.
Harper, M. and Tanburn, J. (2005) Mapping the Shift in Business Development Services. Making Markets Work for the Poor, ITDG Publishing, New Delhi.
Kirsten, J., Vink, N. and van Zyl, J. (1998) ‘Conclusion: Synthesis and an agenda for the empowerment of black farmers’, in J. Kirsten, J. Van Zyl and N. Vink (eds.), The Agricultural Democratisation of South Africa, Africa Institute for Policy Analysis and Economic Integration, Francolin Publishers (Pty) Ltd, Cape Town, pp.245-252.
Marais, L., Lenka, M. and Venter, A. (2005) ‘Assisting poor wool farmers to access the international wool market: successes and stumbling blocks’, unpublished research paper conducted for the Centre for Development and Enterprise, Johannesburg.
National Wool Growers Association (NWGA) (2005) Statistics Provided on Wool Production in South Africa, National Wool Growers Association, Port Elizabeth.
Prahalad, C.K., (2005) The Fortune at the Bottom of the Pyramid: Eradicating Poverty through Profits, Pearson Education Ltd, New Jersey.
Prahalad, C.K. and Hart, S. (2003) ‘The fortune at the bottom of the pyramid’, Strategy and Business, Issue 26.
Schirmer, S. (2005) Making Markets Work for the Poor: The International Experience, Centre for Development and Enterprise, Johannesburg.
Sida, (2003) Making Markets Work for the Poor: Framework for Sida's Support to Private Sector Development, Sida, Sweden.
UNDP (2004) Unleashing Entrepreneurship: Making Business Work for the Poor, Commission on the Private Sector and Development, Report to the Secretary General of the United Nations, New York.
Van Rooyen, J.P., Vink, N. and Christodoulou, N.T. (1987) ‘Access to the agricultural market for small farmers in South Africa: The farmer support programme’, Development Southern Africa, 4(2), pp.207-223.
World Bank (2005) World Development Report 2005: A Better Investment Climate for Everyone, Oxford University Press, Oxford.
Bundy, C. (1979) The Rise and Fall of the South African Peasantry, University of California Press, Los Angeles.
Department of International Development (DFID) (2000) Making Markets Work Better for the Poor: A Framework Paper, Economic Policy and Research Department and Business Partnership Department, London.
De Soto, H. (1989) The Other Path: The Invisible Revolution in the Third World, Harper and Row, New York.
De Soto, H. (2000) The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else, Black Swan, London.
D'Haese, M. and Vink, N. (2003) Local Institutional Innovation on Pro-poor Agricultural Growth: The Case of Small-woolgrowers' Associations in South Africa, Garant publishers, Antwerp.
D'Haese, M., Calus, M., Kirsten, M.J., Van Huylenbroeck G. and Bostyn, F. (2001) ‘Efficiency analysis of small-scale wool production in the former Transkei, South Africa’, Working Paper 2001-04, Department of Agricultural Economics, University of Pretoria.
D'Haese, M., Verbeke, W., Van Huylenbroeck, G., Kirsten, M.J. and D'Haese, L. (2003) ‘Institutioinal innovation to increase farmers' revenue: a case study of small-scale farming in sheep, Transkei region, South Africa’, 25th International Conference of Agricultural Economists, Durban, 16-22 August.
Fourie, C. (2004) ‘CMW begin nuwe SEB-maatskappy’, Die Burger, 26 November 2004.
Harper, M. and Tanburn, J. (2005) Mapping the Shift in Business Development Services. Making Markets Work for the Poor, ITDG Publishing, New Delhi.
Kirsten, J., Vink, N. and van Zyl, J. (1998) ‘Conclusion: Synthesis and an agenda for the empowerment of black farmers’, in J. Kirsten, J. Van Zyl and N. Vink (eds.), The Agricultural Democratisation of South Africa, Africa Institute for Policy Analysis and Economic Integration, Francolin Publishers (Pty) Ltd, Cape Town, pp.245-252.
Marais, L., Lenka, M. and Venter, A. (2005) ‘Assisting poor wool farmers to access the international wool market: successes and stumbling blocks’, unpublished research paper conducted for the Centre for Development and Enterprise, Johannesburg.
National Wool Growers Association (NWGA) (2005) Statistics Provided on Wool Production in South Africa, National Wool Growers Association, Port Elizabeth.
Prahalad, C.K., (2005) The Fortune at the Bottom of the Pyramid: Eradicating Poverty through Profits, Pearson Education Ltd, New Jersey.
Prahalad, C.K. and Hart, S. (2003) ‘The fortune at the bottom of the pyramid’, Strategy and Business, Issue 26.
Schirmer, S. (2005) Making Markets Work for the Poor: The International Experience, Centre for Development and Enterprise, Johannesburg.
Sida, (2003) Making Markets Work for the Poor: Framework for Sida's Support to Private Sector Development, Sida, Sweden.
UNDP (2004) Unleashing Entrepreneurship: Making Business Work for the Poor, Commission on the Private Sector and Development, Report to the Secretary General of the United Nations, New York.
Van Rooyen, J.P., Vink, N. and Christodoulou, N.T. (1987) ‘Access to the agricultural market for small farmers in South Africa: The farmer support programme’, Development Southern Africa, 4(2), pp.207-223.
World Bank (2005) World Development Report 2005: A Better Investment Climate for Everyone, Oxford University Press, Oxford.
Bundy, C. (1979) The Rise and Fall of the South African Peasantry, University of California Press, Los Angeles.
Department of International Development (DFID) (2000) Making Markets Work Better for the Poor: A Framework Paper, Economic Policy and Research Department and Business Partnership Department, London.
De Soto, H. (1989) The Other Path: The Invisible Revolution in the Third World, Harper and Row, New York.
De Soto, H. (2000) The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else, Black Swan, London.
D'Haese, M. and Vink, N. (2003) Local Institutional Innovation on Pro-poor Agricultural Growth: The Case of Small-woolgrowers' Associations in South Africa, Garant publishers, Antwerp.
D'Haese, M., Calus, M., Kirsten, M.J., Van Huylenbroeck G. and Bostyn, F. (2001) ‘Efficiency analysis of small-scale wool production in the former Transkei, South Africa’, Working Paper 2001-04, Department of Agricultural Economics, University of Pretoria.
D'Haese, M., Verbeke, W., Van Huylenbroeck, G., Kirsten, M.J. and D'Haese, L. (2003) ‘Institutioinal innovation to increase farmers' revenue: a case study of small-scale farming in sheep, Transkei region, South Africa’, 25th International Conference of Agricultural Economists, Durban, 16-22 August.
Fourie, C. (2004) ‘CMW begin nuwe SEB-maatskappy’, Die Burger, 26 November 2004.
Harper, M. and Tanburn, J. (2005) Mapping the Shift in Business Development Services. Making Markets Work for the Poor, ITDG Publishing, New Delhi.
Kirsten, J., Vink, N. and van Zyl, J. (1998) ‘Conclusion: Synthesis and an agenda for the empowerment of black farmers’, in J. Kirsten, J. Van Zyl and N. Vink (eds.), The Agricultural Democratisation of South Africa, Africa Institute for Policy Analysis and Economic Integration, Francolin Publishers (Pty) Ltd, Cape Town, pp.245-252.
Marais, L., Lenka, M. and Venter, A. (2005) ‘Assisting poor wool farmers to access the international wool market: successes and stumbling blocks’, unpublished research paper conducted for the Centre for Development and Enterprise, Johannesburg.
National Wool Growers Association (NWGA) (2005) Statistics Provided on Wool Production in South Africa, National Wool Growers Association, Port Elizabeth.
Prahalad, C.K., (2005) The Fortune at the Bottom of the Pyramid: Eradicating Poverty through Profits, Pearson Education Ltd, New Jersey.
Prahalad, C.K. and Hart, S. (2003) ‘The fortune at the bottom of the pyramid’, Strategy and Business, Issue 26.
Schirmer, S. (2005) Making Markets Work for the Poor: The International Experience, Centre for Development and Enterprise, Johannesburg.
Sida, (2003) Making Markets Work for the Poor: Framework for Sida's Support to Private Sector Development, Sida, Sweden.
UNDP (2004) Unleashing Entrepreneurship: Making Business Work for the Poor, Commission on the Private Sector and Development, Report to the Secretary General of the United Nations, New York.
Van Rooyen, J.P., Vink, N. and Christodoulou, N.T. (1987) ‘Access to the agricultural market for small farmers in South Africa: The farmer support programme’, Development Southern Africa, 4(2), pp.207-223.
World Bank (2005) World Development Report 2005: A Better Investment Climate for Everyone, Oxford University Press, Oxford.
Bundy, C. (1979) The Rise and Fall of the South African Peasantry, University of California Press, Los Angeles.
Department of International Development (DFID) (2000) Making Markets Work Better for the Poor: A Framework Paper, Economic Policy and Research Department and Business Partnership Department, London.
De Soto, H. (1989) The Other Path: The Invisible Revolution in the Third World, Harper and Row, New York.
De Soto, H. (2000) The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else, Black Swan, London.
D'Haese, M. and Vink, N. (2003) Local Institutional Innovation on Pro-poor Agricultural Growth: The Case of Small-woolgrowers' Associations in South Africa, Garant publishers, Antwerp.
D'Haese, M., Calus, M., Kirsten, M.J., Van Huylenbroeck G. and Bostyn, F. (2001) ‘Efficiency analysis of small-scale wool production in the former Transkei, South Africa’, Working Paper 2001-04, Department of Agricultural Economics, University of Pretoria.
D'Haese, M., Verbeke, W., Van Huylenbroeck, G., Kirsten, M.J. and D'Haese, L. (2003) ‘Institutioinal innovation to increase farmers' revenue: a case study of small-scale farming in sheep, Transkei region, South Africa’, 25th International Conference of Agricultural Economists, Durban, 16-22 August.
Fourie, C. (2004) ‘CMW begin nuwe SEB-maatskappy’, Die Burger, 26 November 2004.
Harper, M. and Tanburn, J. (2005) Mapping the Shift in Business Development Services. Making Markets Work for the Poor, ITDG Publishing, New Delhi.
Kirsten, J., Vink, N. and van Zyl, J. (1998) ‘Conclusion: Synthesis and an agenda for the empowerment of black farmers’, in J. Kirsten, J. Van Zyl and N. Vink (eds.), The Agricultural Democratisation of South Africa, Africa Institute for Policy Analysis and Economic Integration, Francolin Publishers (Pty) Ltd, Cape Town, pp.245-252.
Marais, L., Lenka, M. and Venter, A. (2005) ‘Assisting poor wool farmers to access the international wool market: successes and stumbling blocks’, unpublished research paper conducted for the Centre for Development and Enterprise, Johannesburg.
National Wool Growers Association (NWGA) (2005) Statistics Provided on Wool Production in South Africa, National Wool Growers Association, Port Elizabeth.
Prahalad, C.K., (2005) The Fortune at the Bottom of the Pyramid: Eradicating Poverty through Profits, Pearson Education Ltd, New Jersey.
Prahalad, C.K. and Hart, S. (2003) ‘The fortune at the bottom of the pyramid’, Strategy and Business, Issue 26.
Schirmer, S. (2005) Making Markets Work for the Poor: The International Experience, Centre for Development and Enterprise, Johannesburg.
Sida, (2003) Making Markets Work for the Poor: Framework for Sida's Support to Private Sector Development, Sida, Sweden.
UNDP (2004) Unleashing Entrepreneurship: Making Business Work for the Poor, Commission on the Private Sector and Development, Report to the Secretary General of the United Nations, New York.
Van Rooyen, J.P., Vink, N. and Christodoulou, N.T. (1987) ‘Access to the agricultural market for small farmers in South Africa: The farmer support programme’, Development Southern Africa, 4(2), pp.207-223.
World Bank (2005) World Development Report 2005: A Better Investment Climate for Everyone, Oxford University Press, Oxford.
Towards collective business action and cross-sector collaboration in responsible competitiveness clusters in southern Africa
Hamann, Ralph
Kambalame, Daisy
De Cleene, Sean
Ndlovu, Nkosithabile
Development Southern Africa, Vol. 25 (2008), Iss. 1 P.99
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