Capitalisation of Samriddhi's experiences on private rural service system

An assessment on the growth of Samriddhi’s Private Rural Service Provider System and its facilitative impact on the development of market linkages in livestock-related and medicinal plant value chains in rural Bangladesh. Through an analysis of collective action in new markets, the document analyses how the poor and extreme poor receive support to increase their incomes and sustain their livelihoods.

Main findings

• Both governments and corporations have recognised the value of Service Provider Associations (SPAs) in reducing transaction costs and expanding the outreach of small businesses.
• Service delivery needs to be affordable to the poor and extreme poor.
• Close attention needs to be paid to redressing the main impediments to the coordination of the value chain, which the SPAs are often better placed to do than pre-existing authorities. For instance, the report states that 'SPAs are in principle powerful pro-poor intermediaries between private sector stakeholders and small producers.'
• Although the LSP-SPA system provides advantages for both the poor and private sector, Samriddhi and the LSP-SPA system need to gain a clearer understanding of the system's role in local communities and how the private sector can be expected to contribute more.

Intervention description

The promotion of a bottom-up approach in which Local Service Providers (LSPs) are recruited from a group of experienced farmers and encouraged to increase their capacity through training. Initially, they extended their support voluntarily to neighbours and family members. Yet with increasing demand for their services, LSPs were able to organiSe into Service Providers' Associations (SPAs) and charge for their work. As social enterprises, LSP and SPA capabilities are built to bring benefits to poor farmers and the private sector, to lead to the development of an inclusive market system.

Evidence methodology

The document makes use of qualitative research methods.

• Using a combination of monitoring data and interviews conducted with field workers and local farmers, the report assesses the main impact points of the Samriddhi Private Rural Service Provider System, relaying its successes and shortcomings.
• Some measures of success include: a before and after assessment of individuals' daily income; qualitative assessment of improvements to their standard of living and overall before and after assessments of the market.
• Documents, including annual reports and self-assessments, were also used to inform this research.

Useful for:

Useful analysis of how the economic development of producers through sustainable service provisions can enhance livelihoods and provide poor and extreme producers with linkages to the private sector