The Social Sciences Working Paper Series is intended to advance social science knowledge about production and utilization of potato, sweetpotato, and root and tuber crops in developing countries to encourage debate and exchange of ideas.The views expressed in the papers are those of the author(s) and do

The Papa Andina network employs collective action in two novel approaches for fostering market chain innovation. The participatory market chain approach (PMCA) and stakeholder platforms engage small potato producers together with market agents and agricultural service providers in group activities to identify common interests, share market knowledge and develop new business opportunities. These forms of collective action have generated commercial, technological and institutional innovations, and created new market niches for Andean native potatoes grown by poor farmers in remote highland areas. These innovations have benefited small farmers as well as other market chain actors. This paper describes Papa Andina’s experiences with collective action for market chain innovation. It then discusses the implications of these experiences for the understanding of collective action and the policy implications for research and development organizations.

Innovation in the food and agriculture sector is frequently short-circuited by a lack of trust and communication between actors in the market chain. To overcome these problems and stimulate innovation, the Participatory Market Chain Approach (PMCA) brings together small farmers, market agents, and service providers for an intense process of facilitated interaction. The PMCA uses a flexible three-stage participatory process to improve communication, build trust, and facilitate collaboration among participants so that they can jointly identify, analyze, and exploit new market opportunities. The PMCA focuses on innovation in products, technologies, and ways of working together. By carefully selecting market chains and partners, and building in social responsibility, the PMCA can lead to favourable outcomes and impacts for poor farmers, typically the weakest link in the chain. The PMCA requires facilitation and technical support from professionals with good social skills, research experience, and marketing knowledge, based in a neutral research and development organization. To ensure that impacts are sustained, the PMCA is best used as part of a broader programme of market chain development.

Food systems are evolving rapidly in developing countries. Supermarkets and sales of packaged food are expanding fast, impacting on production and the marketing practices and livelihoods of small farmers. There is a new consensus that agricultural research and development (R&D) should help small farmers link up with profitable markets. The Participatory Market Chain Approach (PMCA) was developed to address this need. The PMCA differs from other market chain approaches because of its focus on stimulating innovation and long-term partnerships among farmers, market agents, and service providers. It pays particular attention to engaging private sector actors, who are critical in identifying and making use of new market opportunities. The PMCA was developed by the Papa Andina Initiative and its partners, the Foundation for Promotion and Research on Andean Crops (PROINPA) in Bolivia, and the project for Technological Innovation and Competitiveness (INCOPA) in Peru, to improve the competitiveness of small potato producers in the Andes. The Papa Andina Initiative was keen to address one of the principal constraints to agricultural innovation: a lack of trust and knowledge sharing among different actors in the market chain. So, in 2003, Papa Andina carried out a 'Rapid Appraisal of Agricultural Knowledge Systems' (Engel and Salomon, 1995) in Peruvian potato market chains. Based on this experience, the PMCA was developed to facilitate pro-poor market chain innovation. A key feature of the approach is that it brings together small farmers, market agents, and agricultural service providers who don't know each other or who distrusted one another (Bernet et al., 2006). This Brief should interest R&D professionals wanting to help small farmers participate in dynamic markets. And, it provides useful information for donor agencies looking for more effective ways to intervene in market chains to reduce poverty and promote sustainable development.

Andean highlands are home to some of the poorest rural households in South America. Native potato varieties and local knowledge for their cultivation and use are unique resources possessed by farmers in these areas. As the forces of globalization and market integration penetrate the Andes, they present both challenges and opportunities for farmers there. This paper reports on how the Papa Andina Regional Initiative is promoting the use of collective action to reduce poverty in the Andes, by developing market niches and adding value to potatoes, particularly the native potatoes grown by poor farmers. Since 1998, Papa Andina has worked with partners in Bolivia, Ecuador and Peru to stimulate pro-poor innovation within market chains for potato-based products. Market chain actors (including small-scale potato producers, traders, and processors), researchers, and other service providers have engaged in innovation processes via two principal tools for facilitating collective action: the Participatory Market Chain Approach (PMCA) and Stakeholder Platforms. The PMCA fosters commercial, technological, and institutional innovation through a structured process that builds interest, trust, and collaboration among participants. Stakeholder Platforms provide a space for potato producers, other market chain actors, and service providers to come together to identify their common interests, share knowledge, and develop joint activities. The PMCA and Stakeholder Platforms have empowered Andean potato farmers by expanding their knowledge of markets, market agents, and business opportunities. Social networks built up among producers, market agents, and service providers have stimulated commercial innovation, which in turn has stimulated technical and institutional innovation. These innovations have allowed small farmers to market their potatoes on more favorable terms and other market chain actors to increase their incomes. This paper describes experiences with collective action in Bolivia, Ecuador, and Peru, via the PMCA and Stakeholder Platforms. Based on these experiences, a number of lessons are formulated for using collective action to stimulate innovation, market access, and poverty reduction in other settings. authors' abstract