Orbicon A/S; GHK Consulting Limited; Pinto Consulting GmbH, 2011, Evaluation of the Danish Neighbourhood Programme with a focus on the Economic Development Portfolio

2.1 ENABLING ENVIRONMENT

2.1.9 Value Chains and adding value to value chain components

Recommendation: 9. Support the development of the whole value chain of production and selling to improve local conditions and support beneficiaries independent from development projects. Pay particular attention to those parts of the value chain involving people dependent on the IE and how these can be strengthened to improve their decent work and income conditions.

Reference: Orbicon A/S; GHK Consulting Limited; Pinto Consulting GmbH, 2011, Evaluation of the Danish Neighbourhood Programme with a focus on the Economic Development Portfolio.

Evidence sample: The evaluation found that the interventions in horticulture in Kosovo were based on a justified logic: it was focused on restoring the productive potential of agribusinesses by promoting value chains, in particular horticultural and related agribusinesses, through labour intensive growth for agribusinesses. In particular, the components were explicitly focused on supporting the whole chain from improving the quality of the products, to establishing of local collection centres and linking-up to large local buyers (e.g. supermarket chains). They appear to be appropriate to sustainably increase production levels.

Generally, the evaluation found that beneficiaries in the value chain became increasingly independent and built on the initial supported investments (e.g. green-houses, incubators, collection centres, etc.). Contracts were signed with local storage operators, food processors and supermarkets. Furthermore, the value-chain activities supported through the horticulture component resulted in a degree of import substitution and/or export.  Some international firms demonstrated willingness to buy Kosovo farming products (fruits and vegetables) and the requirements of these firms in terms of the standard of the exported products are contributing to improving quality over time and other positive knock-on effects for the Kosovo horticultural value chains.

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2.1.9 Value Chains and adding value to value chain components

Recommendation: 13. Take into account that interventions in parts of a particular value chain may negatively affect the level of employment in those parts of the value chain. This may especially occur when more modern technical equipment is used to increase production.

Reference: Orbicon A/S; GHK Consulting Limited; Pinto Consulting GmbH, 2011, Evaluation of the Danish Neighbourhood Programme with a focus on the Economic Development Portfolio.

Evidence sample: according to the evaluation carried out in Eastern Europe\neighbourhood countries, production increases obtained through the acquisition of new and more modern technical equipment at small family farm sites does not lead to significant employment effects.

Thus, it is recommended that design and formulation of future economic development interventions should take more explicitly into account the potential trade-off between the wish to increase production through investing in more effective agricultural production within family farms on the one hand and the intention to generate large rural employment effects on the other hand. By focusing on the entire value chain it could be anticipated that employment will decrease in some part of the value chain due to introduction of more efficient production methods but at the same time lead to increase in other parts of the value chain e.g. in the processing industry.

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2.3 Direct actions in communities

2.3.6. Vocational education/skills training

Recommendation: 5) Carefully review and plan the implementation steps of a TVET programme and ensure that these are well organised to avoid implementation delays. Note that any significant delays may result in loss of momentum and poor results.

Reference: Orbicon A/S; GHK Consulting Limited; Pinto Consulting GmbH, 2011, Evaluation of the Danish Neighbourhood Programme with a focus on the Economic Development Portfolio, Final evaluation, Danida, Copenhagen, Covered countries: Armenia, Kosovo, Serbia.

Evidence sample: the evaluation note the problems of implementation delays in the Kosovo VET Programme. The teaching material was supposed to be ready for printing early enough to be available for the next academic year. Purchase of complementary teaching material was scheduled to be initiated once development of the new curriculum and learning material had been finalised. Unfortunately, the required material arrived very late, and most of the planned practical teacher training was dependent on the provision of teaching materials. The big challenge in relation to the components intervention logic is that each element is to some extent dependent on the timely delivery of other inputs to work properly. Thus, there is a significant risk, therefore, that delays in implementation of some activities would cause general delays and inefficiencies at the overall component level.

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2.3 Direct actions in communities

2.3.6. Vocational education/skills training

Recommendation: 19) Ensure that training includes both practical as well as theoretical aspects. Projects on TVET should emphasise and directly include the establishment of effective connections between job training and job placements. This may specifically include supporting:

• The establishment of direct interactions during training between potential employers and trainees/students
• Job placement centres/services and raising the awareness of their staff of the existence of the TVET graduates.

Reference: Orbicon A/S; GHK Consulting Limited; Pinto Consulting GmbH, 2011, Evaluation of the Danish Neighbourhood Programme with a focus on the Economic Development Portfolio, Final evaluation, Danida, Copenhagen, Covered countries: Armenia, Kosovo, Serbia.

Evidence sample: in terms of achievements, the evaluation finds that the VET Component in Armenia is likely to achieve, and in some cases even surpass, the intended outputs.  The available evidence suggests that the new colleges and VET courses, including the short-term vocational training for the unemployed, are resulting in better opportunities that lead to increased employment for the graduates. For example, discussions at the VET colleges visited suggest that ca. 70% of the graduates progress either to further education or employment in Vanadzor and ca. 50% in Hrazdan; this is reportedly a significantly higher rate than previous to the component interventions. This reduces the gaps seen as a result of closer connection and matching between demand (firms) and supply (trained students) leading to direct recruitment of graduates and involvement in course development (e.g. during the visit to one college, the graduation fashion show was being held). Local firms were participating in the evaluation panel, resulting in recruitment benefits for the firms in question as well as the graduating students. The creation of VET Councils and College Boards has resulted in new forms of public-private partnerships, including work placements and traineeships, at the local level.