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Market systems development in fragile contexts 13 may dj
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Market systems development in fragile contexts 13 may dj

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  • 1. Energy Efficiency in Municipal District HeatingMarket systems development in fragile contextsDiane Johnson- The Springfield Centre
  • 2. Springfield Centre | Making markets workM4P IN BASIC SERVICESSystems are multi-function, multi-playerSUPPORTINGFUNCTIONSRULESStandardsInformationBusinessmembershiporganisationsGovernmentPrivate sectorInformalnetworksPLAYERSDemand SupplyFinancialservicesR&DLawsInformalrules &normsCivil Society GroupsAcademic bodies
  • 3. Springfield Centre | Making markets workM4P IN BASIC SERVICES...and interconnected
  • 4. Springfield Centre | Making markets workM4P IN BASIC SERVICESSame framework- different sectorsMarket SystemsDevelopmentFrameworkVocational training- LabourGovernanceEducationEnergyPrivate Sector DevelopmentWater-SanitationFinancial ServicesHealthAgricultureLand
  • 5. Springfield Centre | Making markets workM4P IN BASIC SERVICESWhat makes the difference?Market Systems Development Principles Context-specific & Systemic: understanding wheresystems are failing to serve the needs of the poor-constraints- and acting to correct those failings Large-scale Impact- explicitly aims to reach largenumbers of poor by harnessing the dynamism of themarket system- seeks leverage points, co-investmentand ‘crowding’ in of market players
  • 6. Springfield Centre | Making markets workM4P IN BASIC SERVICES1,000,000 500,000 20,000 2,000LeverageMarket 1Market 2Market 3Market 4
  • 7. Springfield Centre | Making markets workM4P IN BASIC SERVICES Learning & Adaptability: systems are dynamic -interventions need to be! Iterative process of changeneeds built-in learning to support flexible decision-makingand seize windows of opportunity. Facilitative role- Sustainable change: catalytic role ofdevelopment agent to stimulate, not displace, marketfunctions or players.better aligning functions and players with the incentivesand capacities to work more effectively.
  • 8. Springfield Centre | Making markets workM4P IN BASIC SERVICESSustainability Matrix:current and future visionFunctions Players IncentivesWho does? Who pays? Why?CORE MarketRULESSUPPORTING FUNCTIONS
  • 9. Springfield Centre | Making markets workM4P IN BASIC SERVICESDirect DeliveryHow can wehelp tosolve these?What problemsdo poor peopleand theirbusinesses andinstitutionshave?What problems dopoor people andtheir businessesand institutionshave?Why isn’t theirmarket environmentproviding solutions?Why isn’t the marketsystem working for thepoor?Market SystemsDevelopment
  • 10. Springfield Centre | Making markets workM4P IN BASIC SERVICESMarket Systems….. impact poor people in fragile contexts-even more so! provide jobs, essential goods and services continue to function even if at reduced rates/ informal levelsand even when other institutions may have broken down rebound quickly ‘phases’ of relief, recovery, development interventions do notreflect on- the-ground realities and may ‘do harm’ may promote stabilityWhy utilize aMarket SystemsDevelopment Framework inFragile Contexts??
  • 11. Springfield Centre | Making markets workM4P IN BASIC SERVICESMarket Systems Development & Fragile ContextsStrategic principles are the SAMEhowever….application of the strategy- tactics- requirescontextual adaptation
  • 12. Springfield Centre | Making markets workM4P IN BASIC SERVICESWhat is different in fragile contexts? Less partners for engagement Potential for increased importance of informal institutions/players More intensive work with partners Limited sectors for engagement Increased use of subsidies Increased temporary direct interventions Longer timescale to achieve scale/ sustainability Pressure to demonstrate ‘quick-wins’
  • 13. Springfield Centre | Making markets workM4P IN BASIC SERVICESWhat is different in fragile contexts? Government may be weak, corrupt Potential presence of illicit markets Increased distortion from aid interventions Issue of lack of trust is paramount- affects social,civic, and business relationships Need for integrated skill set of facilitation team
  • 14. Springfield Centre | Making markets workM4P IN BASIC SERVICESEffective,equitablegovernanceStronginstitutionsStable,competitiveeconomyInclusive growthFragilityGeographic isolationLow natural resourcesDisaster/conflict pronePoor governanceSocial exclusionResilienceSpectrum of Weaknessdifferent systems…..same framework
  • 15. Springfield Centre | Making markets workM4P IN BASIC SERVICESContext Analysis as starting pointConflictCrisisFragilityMarketPoliticaleconomyPower dynamics ininstitutions/ systemsare interlinked!
  • 16. Springfield Centre | Making markets workM4P IN BASIC SERVICESMarket-Integrated ReliefEarly Economic Recovery meets basic needs minimizes market distortions targets crisis-affected populations jump-starts private sector promote re-emergence of essential markets builds platform (relationships, knowledge) for marketsystems development (MICRO)
  • 17. Springfield Centre | Making markets workM4P IN BASIC SERVICESDividersNegative drivers of changeDynamics, players andinstitutions/ systems thatdivide people
  • 18. Springfield Centre | Making markets workM4P IN BASIC SERVICESConnectorsPositive drivers of changeDynamics, players andinstitutions/ systems thatconnect people
  • 19. Springfield Centre | Making markets workM4P IN BASIC SERVICESFragility SENSITIVE ‘Do No Harm’ as minimum standard Goal: poverty reduction or increasedwell-being Understand systemic causes of fragility CSPM: increase connectors
  • 20. Springfield Centre | Making markets workM4P IN BASIC SERVICESFragility RELEVANT Assumes application of ‘Do No Harm’ Goal: reduced fragility and/or povertyreduction or increased well-being Understand and address systemiccauses of fragility
  • 21. Springfield Centre | Making markets workM4P IN BASIC SERVICESSystemicinterventionPovertyreductionImprovedgrowth andaccessSystem change-increased accessto inputsStrategic framework = Theory of ChangeSystemicinterventionStabilityIncreasednegotiatedsettlementsSystem change-increased trustFocus on system change!
  • 22. Springfield Centre | Making markets workM4P IN BASIC SERVICESOut of Fragility Vision- Theory of Change Does the program have a clear theory of change as to howsystemic intervention will lead to reduced fragility? Is a market development intervention the most effectivemeans of achieving the desired outcome? Does the theory of change have clear, logical indicators tomeasure progress towards multiple goals?
  • 23. Springfield Centre | Making markets workM4P IN BASIC SERVICESWhy Market Systems Development IS a validframework in Fragile Contexts lens to consider complexity keeps strategic focus on the poor considers institutions, systems and power dynamics incorporates DO NO HARM principles forces focus on sustainability inherently flexible, dynamic – focus on learning framework to link relief »recovery» development applicable to multiple sectors
  • 24. Springfield Centre | Making markets workM4P IN BASIC SERVICESTake Away Messages Context is the starting point Must consider POWER dynamics Focus on causes not symptoms Clarify programme goal(s) – and indicators of change Sustainability = facilitative role of development actor Flexibility, adaptability is key