India - Rubber Project
Yoon Joo Lee | DED
The project outcome is satisfactory, sustainability is likely, and the institutional development impact is substantial. Lessons highlight the importance of identifying early on, the specific development roles to be played by the public, and private sector upon designing development projects which involve long-term tree crops such as rubber. This is particularly important because, while rubber production, and processing are largely handled as private sector investments, well functioning public institutions, such as the Rubber Board, with a clear focus on, and complementary services to the private sector, is critical in the effective mobilization of public resources. This approach would also foster a business environment, conducive to expand private sector initiatives in the rubber industry, which is seemingly the case in India, despite the unfavorable world market situation. Additionally, in designing smallholder development projects which entail tree crop development with long gestation periods, the adoption of an integrated farming system approach would be appropriate, for it would help overcome the significant problems of negative cash flows, during the initial, immature phase of the crop, as well as divert the risk of output price fluctuations. And, in evaluating rubber development projects, environmental benefits, and timber production should be considered as benefits, justifiably so because the green cover, and carbon sequestration are enhanced, while soil erosion reduced.
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