Practical Action is an organization established in 1966 that uses technology and innovation to eradicate poverty in over 15 countries. In Nepal, they work with over 80,000 smallholder farmers to help them access rewarding markets. They use a Participatory Market Systems Development (PMSD) approach, which considers the market as a complex system and involves producers and actors in identifying opportunities and constraints. The key elements of PMSD are taking a systemic view of the entire value chain, facilitating market actors to build ownership and resources, focusing on sustainability, and scaling promising practices. The outcomes of using PMSD include stronger market linkages and relationships, a more enabling environment for pro-poor policy and business, and viable markets for business

1. PRACTICAL ACTION
technology, innovation and passion
to eradicate poverty

2. established in 1966
as a charity
organisation
working in more than
15 countries

3. our vision is a sustainable
world free of poverty and
injustice in which technology
is used to the benefit of all

4. Practical Action in
Nepal:
Practical Action (then ITDG) started its
work in 1979, initially concentrating on the
development and transfers of micro-hydro
technologies
Country Office established in 1998 and
focused on agro-processing, transport and
energy.

5. Current focuses in Nepal
Four international programme AIMS:
Reducing Vulnerability
Markets and livelihoods
Improving access to useful services,
systems and structures; and
Responding to new technologies

6. Focus of presentation
Making markets work for the poor:
In Nepal, Practical Action is working with
over 80,000 smallholder farmers to help
them access rewarding markets
Practical Action marries the unique
approach of the M4P framework with our
capabilities in technological innovations

7. The PMSD approach
Participatory Market Systems
Development (PMSD). What is it?
It is an approach to market development for the
poor that is:
Systemic i.e. it considers the market
as a complex, dynamic system and
takes a holistic focus.
Participatory i.e. it involves poor
producers and other market system
actors in identifying opportunities and
constraints, and developing action
plans

8. The PMSD approach
Participatory Market Systems
Development (PMSD). What is it?
It is an approach to market development for the
poor that is:
Systemic i.e. it considers the market
as a complex, dynamic system and
takes a holistic focus.
Participatory i.e. it involves poor
producers and other market system
actors in identifying opportunities and
constraints, and developing action
plans

9. Key elements of PMSD
PMSD approach uses four principles to
design and implement pro-poor market
development projects
Systemic thinking: taking into account the
issues and the interplay within the market
system and addressing issues across the value
chain rather than only focusing on producers.
Facilitation role: we focus on building
ownership, capacities and resources of the
market actors while developing shared visions
and catalysing innovations. We are NOT
directly involved in the market system.

10. Key elements of PMSD (contd…)
PMSD approach uses four principles to
design and implement pro-poor market
development projects
Sustainability: Requires jointly exploring new
ideas and innovations to be ‘owned’ by the
market actors and understanding and ‘shaping’
incentives for market actors to realise value in
performing new roles.
Scaling-up: Promising practices and innovative
business models are communicated via a
series of routines and spaces to ‘crowd-in’ more
actors and scaling-up in other locations and
sectors.

11. Outcomes
What are the outcomes of using a PMSD approach?
More dialogue, better collaboration, leading to…
Stronger, more equitable Market-Chain Linkages & Relationships
Enabling environment – identification of issues and a plan for action… towards:
A more enabling, pro-poor Policy & Business
Environment
Assessment of demand for services e.g market intelligence; quality standards
leading to…
Viable, sustainable markets for Business & Extension Services