Abstract
ABSTRACTA popular rural development strategy in recent years has been through the adoption of what has been widely called a ‘value chain approach’, where improved linkages between small producers in underdeveloped rural communities and ‘lead firms’ constitute the foundations for development interventions. Whilst the global value-chain framework can deliver insights into the broad structural processes shaping livelihood possibilities, the adoption of value chains as a development strategy tends to disregard the complexity of smallholder livelihoods that shape poverty alleviation pathways in different contexts. The relationships between global value chains, development interventions, and rural livelihoods are explored in this article through a case study of smallholder coffee farming in the Toraja region of Indonesia. In this case, value-chain interventions in the coffee sector are unlikely to significantly contribute to improved rural welfare due to the diversified reality of local livelihoods, the nuances of how coffee production is embedded within Torajan culture and economy, and excellent prevailing market opportunities. The livelihood framework, therefore, provides an important corrective for the sometimes excessive optimism presented by advocates of a value-chain approach to rural development.
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