This document "explains the essence of the M4P (making markets work for the poor) approach - its rationale, including evidence of impact, and key features in implementation" (from the foreword of the document). With thanks to Rob Hitchins for allowing MaFI to upload it here.
This working paper provides important background for anyone designing a training on market facilitation. The paper discusses market facilitation and what the implications are for being a facilitator in a market systems development program. It highlights main areas where facilitation intervenes and the roles of different stakeholders. Finally, this paper provides a checklist for donors and implementers to use.
The document provides an overview and operational guide for implementing the Making Markets Work for the Poor (M4P) approach to development. It discusses the basic considerations and characteristics of successful M4P programs, outlines the key components of the M4P intervention process including setting strategic frameworks, understanding market systems, defining outcomes, and facilitating systemic change. It also covers managing and governing M4P programs and provides good practice notes on various topics related to implementing the M4P approach. The overall goal of the guide is to improve understanding and application of market development approaches to reduce poverty through inclusive, sustainable market systems.
The document is an operational guide for implementing the Making Markets Work for the Poor (M4P) approach to development. It provides an overview of key considerations for designing, commissioning, and implementing M4P programs. The guide explains the frameworks and principles that guide the M4P process, common challenges that programs may face, and how they can be addressed. It also identifies important management and governance aspects of M4P programs and provides examples of good practices from real programs. However, the guide notes that every context is different and M4P implementation cannot be reduced to a rigid step-by-step process. The goal is to equip practitioners with useful tools and lessons while allowing for flexibility.
The document provides guidance on implementing the 5S methodology to achieve a visual workplace. 5S involves the five Japanese words: Sort, Set in Order, Shine, Standardize, and Sustain. The methodology is used to organize a workspace by removing unnecessary items, properly storing and labeling necessary items, cleaning the area, standardizing processes, and sustaining the new systems. Implementing 5S creates a well-organized visual workspace that identifies abnormal conditions, eliminates waste, and supports process improvement efforts.
Linking Value Chain Analysis and the “Making Markets work better for the Poo...led4lgus
This document discusses linking the concepts of "Making Markets Work Better for the Poor" (M4P) and value chain promotion (VCP). At first glance, M4P and VCP seem incompatible but closer examination reveals opportunities to connect them. M4P emphasizes market development over distorting markets, prioritizing interventions that benefit the poor. VCP examines how producers connect to markets through value chains. The document explores conceptual issues in linking the approaches and proposes a process-oriented value chain analysis informed by both, involving action research elements. This would allow introducing M4P concepts to enhance pro-poor outcomes of value chain development projects.
Guidance note for the Programmatic Approach (version 31-12-2011)ICCO Cooperation
This document provides guidance on the programmatic approach used by the ICCO Alliance. It describes the objective of promoting systemic social change through multi-stakeholder cooperation. The programmatic approach is grounded in systems thinking and complexity theory, and aims to create networks and coalitions to address complex social issues. A variety of methods are discussed to analyze systems and contexts, map stakeholders, and facilitate collaboration between partners. The roles of the ICCO Alliance in strategic funding, brokering, and capacity development are also covered, as well as governance models for programmatic cooperation.
MS Management Consultancy Disseration 2008 University Of Wales, United Ki...fazal9
This document provides an overview of a study on a consultant's approach to local store marketing efforts at Pizza Hut restaurants in the UK. The study examines current local store marketing activities and develops new strategies using action research. It analyzes aspects of organizational culture, stakeholder engagement, and a customer relationship management framework. The document outlines the study's objectives, rationale, limitations, and literature review covering topics such as management consulting, local store marketing, culture, leadership, and stakeholder engagement. It also describes the study's methodology, findings from consumer and staff surveys, conclusions, and recommendations for a local store marketing framework.
This document is the thesis submitted by Nerijus Dumbrava for the Master of Science programme at the International School of Management. The thesis examines the growth of mobile telephony and factors that affect this growth. It provides an overview of the development of 1G, 2G, 2.5G and 3G mobile communication systems. It discusses relevant theoretical concepts from the literature on network effects and the diffusion of innovations. It also reviews research on the role of regulation in fostering or decreasing growth. The empirical analysis section compares results from previous research and performs its own analysis of the factors driving growth in the Lithuanian mobile market through correlation, regression and curve estimation analyses.
This working paper provides important background for anyone designing a training on market facilitation. The paper discusses market facilitation and what the implications are for being a facilitator in a market systems development program. It highlights main areas where facilitation intervenes and the roles of different stakeholders. Finally, this paper provides a checklist for donors and implementers to use.
The document provides an overview and operational guide for implementing the Making Markets Work for the Poor (M4P) approach to development. It discusses the basic considerations and characteristics of successful M4P programs, outlines the key components of the M4P intervention process including setting strategic frameworks, understanding market systems, defining outcomes, and facilitating systemic change. It also covers managing and governing M4P programs and provides good practice notes on various topics related to implementing the M4P approach. The overall goal of the guide is to improve understanding and application of market development approaches to reduce poverty through inclusive, sustainable market systems.
The document is an operational guide for implementing the Making Markets Work for the Poor (M4P) approach to development. It provides an overview of key considerations for designing, commissioning, and implementing M4P programs. The guide explains the frameworks and principles that guide the M4P process, common challenges that programs may face, and how they can be addressed. It also identifies important management and governance aspects of M4P programs and provides examples of good practices from real programs. However, the guide notes that every context is different and M4P implementation cannot be reduced to a rigid step-by-step process. The goal is to equip practitioners with useful tools and lessons while allowing for flexibility.
The document provides guidance on implementing the 5S methodology to achieve a visual workplace. 5S involves the five Japanese words: Sort, Set in Order, Shine, Standardize, and Sustain. The methodology is used to organize a workspace by removing unnecessary items, properly storing and labeling necessary items, cleaning the area, standardizing processes, and sustaining the new systems. Implementing 5S creates a well-organized visual workspace that identifies abnormal conditions, eliminates waste, and supports process improvement efforts.
Linking Value Chain Analysis and the “Making Markets work better for the Poo...led4lgus
This document discusses linking the concepts of "Making Markets Work Better for the Poor" (M4P) and value chain promotion (VCP). At first glance, M4P and VCP seem incompatible but closer examination reveals opportunities to connect them. M4P emphasizes market development over distorting markets, prioritizing interventions that benefit the poor. VCP examines how producers connect to markets through value chains. The document explores conceptual issues in linking the approaches and proposes a process-oriented value chain analysis informed by both, involving action research elements. This would allow introducing M4P concepts to enhance pro-poor outcomes of value chain development projects.
Guidance note for the Programmatic Approach (version 31-12-2011)ICCO Cooperation
This document provides guidance on the programmatic approach used by the ICCO Alliance. It describes the objective of promoting systemic social change through multi-stakeholder cooperation. The programmatic approach is grounded in systems thinking and complexity theory, and aims to create networks and coalitions to address complex social issues. A variety of methods are discussed to analyze systems and contexts, map stakeholders, and facilitate collaboration between partners. The roles of the ICCO Alliance in strategic funding, brokering, and capacity development are also covered, as well as governance models for programmatic cooperation.
MS Management Consultancy Disseration 2008 University Of Wales, United Ki...fazal9
This document provides an overview of a study on a consultant's approach to local store marketing efforts at Pizza Hut restaurants in the UK. The study examines current local store marketing activities and develops new strategies using action research. It analyzes aspects of organizational culture, stakeholder engagement, and a customer relationship management framework. The document outlines the study's objectives, rationale, limitations, and literature review covering topics such as management consulting, local store marketing, culture, leadership, and stakeholder engagement. It also describes the study's methodology, findings from consumer and staff surveys, conclusions, and recommendations for a local store marketing framework.
This document is the thesis submitted by Nerijus Dumbrava for the Master of Science programme at the International School of Management. The thesis examines the growth of mobile telephony and factors that affect this growth. It provides an overview of the development of 1G, 2G, 2.5G and 3G mobile communication systems. It discusses relevant theoretical concepts from the literature on network effects and the diffusion of innovations. It also reviews research on the role of regulation in fostering or decreasing growth. The empirical analysis section compares results from previous research and performs its own analysis of the factors driving growth in the Lithuanian mobile market through correlation, regression and curve estimation analyses.
Jeanette Carlsson Oxford Paperon Social Media Final12 July2010jcarlsson
This document analyzes social media business models and their strategic implications. It examines current social media models, categories, and players through interviews with industry leaders. While social media's future growth is clear, the document evaluates what value has been created by different models to date. Scale, learning, differentiation, innovation, and complementary resources/players will drive industry changes over the next 3-5 years.
Price per earning ratio is very simple and important metric to decide whether any stock is fairly valued or not. The project PE ratio and it's application has been done by MBA student under my guidance.
This handbook provides guidance and templates to help organizations prepare comprehensive crisis
communication plans. It outlines assembling a crisis communications team, identifying potential issues,
planning communications strategies and key messages, handling media relations, and evaluating effectiveness.
Regular updates are important as circumstances change. The goal is to build preparedness to respond quickly
and confidently to minimize damage to reputation when a crisis occurs.
This document summarizes a report on a consultancy to conduct a business development services (BDS) market diagnostic in Rwanda. The diagnostic was conducted by FIT Resources and Research International East Africa on behalf of the East Africa Dairy Development project. The diagnostic involved:
1. Conducting background research, planning meetings and developing research tools.
2. Training field research teams and conducting a BDS training workshop.
3. Carrying out fieldwork including consumer surveys and supplier diagnostics in target locations to understand the dairy BDS market.
4. Analyzing the data collected, identifying constraints and opportunities, and developing recommendations for market-based interventions and strategies to strengthen the BDS market.
Leadership style and perceived benefits of electronic data interchange for re...rsd kol abundjani
This dissertation examines the relationship between leadership style and perceptions of benefits from electronic data interchange (EDI) in the retail industry. Survey data was collected from 90 retail executives using validated scales to measure leadership style and perceived EDI benefits. Linear regression analysis found that executives with more transformational leadership styles perceived greater usefulness of EDI, while those with more transactional styles perceived EDI as easier to use. The study aims to provide insights into how leadership impacts views of information technology benefits in supply chain management.
This doctoral thesis examines consumer behavior towards the purchase of new luxury cars in the culturally distinct countries of the UK and Thailand. Specifically, it aims to 1) define what distinguishes a luxury car and 2) explore how cultural differences between the UK and Thailand can explain differences in purchasing patterns of BMW and Mercedes cars and provide insights for brand marketing. The research design involves both qualitative and quantitative data collection and analysis to develop a comparative study of consumer perceptions of BMW and Mercedes in the two countries.
This document provides a manual for facilitators of Local and Regional Economic Development (LRED) processes. It introduces the LRED approach, which aims to promote sustainable local economic development and reduce regional disparities. The manual describes the key features and theoretical foundations of LRED, including its basis in sustainable development principles and the concept of systemic competitiveness. It then outlines the six steps of the LRED cycle to kick-start the process, from organizing stakeholders to implementation and replanning. Finally, it discusses the role and ethics of LRED facilitators in supporting local governments and communities through the process.
Changing Platforms, Not Values: Is Magazine Journalism in Decline?Hristina Hristova
BA dissertation on the relationship between journalistic platform and function, and its effects on the magazine publishing industry in the United Kingdom.
This document provides information about Roni Bhowmik's master's program project on Beximco Pharmaceuticals Ltd (BPL). Specifically, it includes:
1) Roni Bhowmik is completing a master's program and chose BPL as the topic of their assignment.
2) The objectives of the assignment are to understand BPL's market research process and use of e-marketing, as well as get practical experience in a business setting.
3) Information was collected from sources like the internet, textbooks, BPL's annual reports, and information provided by BPL's Market Research & Statistical Cell department.
This handbook provides templates and guidance for creating a comprehensive crisis communications plan. It details setting up a crisis communications team with defined roles. Templates are included for skills inventories, team member biographies, contact lists, and stakeholder maps. Guidance is given for issues management, communication planning, media relations, and evaluation. The handbook aims to help organizations prepare response plans and teams to effectively manage communications during a crisis.
Beginning in March 2011, Internews has been working to understand local information needs of residents and those who have fled to neighboring countries, map available information sources, and develop recommendations to improve the flow of reliable local news and information in Libya.
Report: Libyan Media Finds New Voice—But Next Steps Are Critical For Long-Term Freedom
An extraordinary proliferation of media outlets is emerging in areas controlled by Libya’s rebels, an encouraging sign in the North African country that today faces a tense stand-off in the capitol of Tripoli with the Gaddafi regime, a new report shows.
This document discusses scenario planning that was conducted to develop four scenarios for the telecom market in 2015. It first describes the scenario planning method used, which involved gathering trends through interviews, clustering similar trends, prioritizing the most important trends, determining scenario axes based on the most uncertain and high impact trends, describing the scenarios and strategic options within each scenario. It then provides an overview of the trends identified in the telecom sector. The core of the document presents the four scenarios for 2015 and the role of telecom companies in each scenario. It concludes by defining early warning indicators that could signal which scenario may become reality.
All the current theories and market signals point unanimously out that the cloud is one of the factors to completely shake up the market behaviour and totally transform the IT industry. The cloud adoption is going mainstream as it is about to tackle the core of the organisations. Its adoption has reached a considerable enough proportion so that it cannot be ignored anymore by any of the ecosystem players.
Additionally, the IT procurement process is also evolving, driven by the rise of social media and a channel mutation towards E-markets. The current transition period is more than favourable to conduct a research and get to know how these trends impact both the entire channel ecosystem.
This document summarizes a webinar discussion on defining and measuring market quality in European equity markets. The webinar featured a panel of experts from NYSE Euronext and ITG moderated by a principal from TABB Group. The panelists discussed how market quality is currently defined, the metrics used to compare liquidity across venues, and factors that influence liquidity. They also addressed how transaction cost analysis and venue analysis provide insight into liquidity characteristics and how transparency could be improved.
The document describes the process of participatory market mapping, which brings diverse groups of market actors together to increase their understanding of how their market system works and facilitate dialogue to build trust for coordination and collaboration. The objectives are for actors to gain a shared understanding of the system and build conditions of trust. A series of flexible workshops are used, with facilitators helping actors progress through milestones from understanding the system to planning and undertaking coordinated actions. The roles of the facilitator are to create a participatory space, manage expectations and energy levels, channel the process, and moderate any conflicts.
What is the best approach to integrate Traditional Media and Social Media int...Carine ESTEVES
This document discusses approaches to integrating traditional and social media into a single marketing strategy. It analyzes whether traditional and social media compete or complement each other. Through interviews and analysis, the document finds that traditional and social media do not compete and instead complement each other. Multiple media channels have become dominant, and traditional and social media are beginning to converge into a single media. The document develops suggestions for allocating media time based on different marketing objectives.
The mobile telephony industry in India is growing rapidly with over 50 million subscribers by 2005 and projected to exceed 300 million by 2010. Key factors driving growth include falling mobile handset prices making them affordable for most consumers. Major players in the industry include Airtel, Reliance, Idea Cellular, and Tata Indicom providing services using GSM and CDMA technologies. The Telecom Regulatory Authority of India regulates the industry and promotes conditions for growth while maintaining fair competition between providers.
This document summarizes a research project conducted at a Reliance Fresh retail store in Ranchi, India. The research analyzed the store's catchment area, footfall (number of visitors), and customers' average ticket size (amount of purchases). The catchment area included nearby residential and commercial areas. On average, the store saw 500-600 visitors per day. Analyzing these operational metrics provided insights into the store's performance and helped evaluate the effectiveness of the company's retail strategy. Descriptive research methods were used, including analyzing data on footfall, ticket size, and their association to understand customer purchasing behavior.
ACDI/VOCA's Activate is a tool to walk project staff through six steps, resulting in an Social Behaviour Change strategy and M&E plan. First, Activate will provide a set of customizable behaviors with simple guidance on how to select and tailor those behaviors. After projects identify and customize these behaviors, they will have a clearer picture of which behaviors they are trying to change. Activate will then provide training curricula and guidance on barrier analysis and formative research, so that staff will understand how to collect data on drivers and barriers of those behaviors. It will also include a set of sequential decision-making process aides, guidance on best practices from behavioral sciences, and resources on Behavior Mapping to connect target behaviors to M&E processes.
These slides propose a few guidelines and concrete projects to relaunch MaFI as a group that will focus on the psychological and cognitive aspects of facilitation of market systems development (MSD) programmes.
More Related Content
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Jeanette Carlsson Oxford Paperon Social Media Final12 July2010jcarlsson
This document analyzes social media business models and their strategic implications. It examines current social media models, categories, and players through interviews with industry leaders. While social media's future growth is clear, the document evaluates what value has been created by different models to date. Scale, learning, differentiation, innovation, and complementary resources/players will drive industry changes over the next 3-5 years.
Price per earning ratio is very simple and important metric to decide whether any stock is fairly valued or not. The project PE ratio and it's application has been done by MBA student under my guidance.
This handbook provides guidance and templates to help organizations prepare comprehensive crisis
communication plans. It outlines assembling a crisis communications team, identifying potential issues,
planning communications strategies and key messages, handling media relations, and evaluating effectiveness.
Regular updates are important as circumstances change. The goal is to build preparedness to respond quickly
and confidently to minimize damage to reputation when a crisis occurs.
This document summarizes a report on a consultancy to conduct a business development services (BDS) market diagnostic in Rwanda. The diagnostic was conducted by FIT Resources and Research International East Africa on behalf of the East Africa Dairy Development project. The diagnostic involved:
1. Conducting background research, planning meetings and developing research tools.
2. Training field research teams and conducting a BDS training workshop.
3. Carrying out fieldwork including consumer surveys and supplier diagnostics in target locations to understand the dairy BDS market.
4. Analyzing the data collected, identifying constraints and opportunities, and developing recommendations for market-based interventions and strategies to strengthen the BDS market.
Leadership style and perceived benefits of electronic data interchange for re...rsd kol abundjani
This dissertation examines the relationship between leadership style and perceptions of benefits from electronic data interchange (EDI) in the retail industry. Survey data was collected from 90 retail executives using validated scales to measure leadership style and perceived EDI benefits. Linear regression analysis found that executives with more transformational leadership styles perceived greater usefulness of EDI, while those with more transactional styles perceived EDI as easier to use. The study aims to provide insights into how leadership impacts views of information technology benefits in supply chain management.
This doctoral thesis examines consumer behavior towards the purchase of new luxury cars in the culturally distinct countries of the UK and Thailand. Specifically, it aims to 1) define what distinguishes a luxury car and 2) explore how cultural differences between the UK and Thailand can explain differences in purchasing patterns of BMW and Mercedes cars and provide insights for brand marketing. The research design involves both qualitative and quantitative data collection and analysis to develop a comparative study of consumer perceptions of BMW and Mercedes in the two countries.
This document provides a manual for facilitators of Local and Regional Economic Development (LRED) processes. It introduces the LRED approach, which aims to promote sustainable local economic development and reduce regional disparities. The manual describes the key features and theoretical foundations of LRED, including its basis in sustainable development principles and the concept of systemic competitiveness. It then outlines the six steps of the LRED cycle to kick-start the process, from organizing stakeholders to implementation and replanning. Finally, it discusses the role and ethics of LRED facilitators in supporting local governments and communities through the process.
Changing Platforms, Not Values: Is Magazine Journalism in Decline?Hristina Hristova
BA dissertation on the relationship between journalistic platform and function, and its effects on the magazine publishing industry in the United Kingdom.
This document provides information about Roni Bhowmik's master's program project on Beximco Pharmaceuticals Ltd (BPL). Specifically, it includes:
1) Roni Bhowmik is completing a master's program and chose BPL as the topic of their assignment.
2) The objectives of the assignment are to understand BPL's market research process and use of e-marketing, as well as get practical experience in a business setting.
3) Information was collected from sources like the internet, textbooks, BPL's annual reports, and information provided by BPL's Market Research & Statistical Cell department.
This handbook provides templates and guidance for creating a comprehensive crisis communications plan. It details setting up a crisis communications team with defined roles. Templates are included for skills inventories, team member biographies, contact lists, and stakeholder maps. Guidance is given for issues management, communication planning, media relations, and evaluation. The handbook aims to help organizations prepare response plans and teams to effectively manage communications during a crisis.
Beginning in March 2011, Internews has been working to understand local information needs of residents and those who have fled to neighboring countries, map available information sources, and develop recommendations to improve the flow of reliable local news and information in Libya.
Report: Libyan Media Finds New Voice—But Next Steps Are Critical For Long-Term Freedom
An extraordinary proliferation of media outlets is emerging in areas controlled by Libya’s rebels, an encouraging sign in the North African country that today faces a tense stand-off in the capitol of Tripoli with the Gaddafi regime, a new report shows.
This document discusses scenario planning that was conducted to develop four scenarios for the telecom market in 2015. It first describes the scenario planning method used, which involved gathering trends through interviews, clustering similar trends, prioritizing the most important trends, determining scenario axes based on the most uncertain and high impact trends, describing the scenarios and strategic options within each scenario. It then provides an overview of the trends identified in the telecom sector. The core of the document presents the four scenarios for 2015 and the role of telecom companies in each scenario. It concludes by defining early warning indicators that could signal which scenario may become reality.
All the current theories and market signals point unanimously out that the cloud is one of the factors to completely shake up the market behaviour and totally transform the IT industry. The cloud adoption is going mainstream as it is about to tackle the core of the organisations. Its adoption has reached a considerable enough proportion so that it cannot be ignored anymore by any of the ecosystem players.
Additionally, the IT procurement process is also evolving, driven by the rise of social media and a channel mutation towards E-markets. The current transition period is more than favourable to conduct a research and get to know how these trends impact both the entire channel ecosystem.
This document summarizes a webinar discussion on defining and measuring market quality in European equity markets. The webinar featured a panel of experts from NYSE Euronext and ITG moderated by a principal from TABB Group. The panelists discussed how market quality is currently defined, the metrics used to compare liquidity across venues, and factors that influence liquidity. They also addressed how transaction cost analysis and venue analysis provide insight into liquidity characteristics and how transparency could be improved.
The document describes the process of participatory market mapping, which brings diverse groups of market actors together to increase their understanding of how their market system works and facilitate dialogue to build trust for coordination and collaboration. The objectives are for actors to gain a shared understanding of the system and build conditions of trust. A series of flexible workshops are used, with facilitators helping actors progress through milestones from understanding the system to planning and undertaking coordinated actions. The roles of the facilitator are to create a participatory space, manage expectations and energy levels, channel the process, and moderate any conflicts.
What is the best approach to integrate Traditional Media and Social Media int...Carine ESTEVES
This document discusses approaches to integrating traditional and social media into a single marketing strategy. It analyzes whether traditional and social media compete or complement each other. Through interviews and analysis, the document finds that traditional and social media do not compete and instead complement each other. Multiple media channels have become dominant, and traditional and social media are beginning to converge into a single media. The document develops suggestions for allocating media time based on different marketing objectives.
The mobile telephony industry in India is growing rapidly with over 50 million subscribers by 2005 and projected to exceed 300 million by 2010. Key factors driving growth include falling mobile handset prices making them affordable for most consumers. Major players in the industry include Airtel, Reliance, Idea Cellular, and Tata Indicom providing services using GSM and CDMA technologies. The Telecom Regulatory Authority of India regulates the industry and promotes conditions for growth while maintaining fair competition between providers.
This document summarizes a research project conducted at a Reliance Fresh retail store in Ranchi, India. The research analyzed the store's catchment area, footfall (number of visitors), and customers' average ticket size (amount of purchases). The catchment area included nearby residential and commercial areas. On average, the store saw 500-600 visitors per day. Analyzing these operational metrics provided insights into the store's performance and helped evaluate the effectiveness of the company's retail strategy. Descriptive research methods were used, including analyzing data on footfall, ticket size, and their association to understand customer purchasing behavior.
Similar to M4P Approach Synthesis (DFID and SDC), 2008 (20)
ACDI/VOCA's Activate is a tool to walk project staff through six steps, resulting in an Social Behaviour Change strategy and M&E plan. First, Activate will provide a set of customizable behaviors with simple guidance on how to select and tailor those behaviors. After projects identify and customize these behaviors, they will have a clearer picture of which behaviors they are trying to change. Activate will then provide training curricula and guidance on barrier analysis and formative research, so that staff will understand how to collect data on drivers and barriers of those behaviors. It will also include a set of sequential decision-making process aides, guidance on best practices from behavioral sciences, and resources on Behavior Mapping to connect target behaviors to M&E processes.
These slides propose a few guidelines and concrete projects to relaunch MaFI as a group that will focus on the psychological and cognitive aspects of facilitation of market systems development (MSD) programmes.
The results of a poll done to get feedback from members about a proposal to focus MaFI on the human and organisational sides of facilitation of market systems development.
The document summarizes a meeting of the Market Facilitation Initiative (MaFI) that promoted facilitation of market systems development. It discussed MaFI's strategy in action through Market Facilitation Clinics that allow practitioners to address challenges together, and a Tools Portal to help facilitators access appropriate tools. Participants provided ideas on how the Clinics and Portal could better support practitioners and ensure application of market systems approaches in sectors like women's economic empowerment and food security.
This document outlines an agenda for a lunch session on market facilitation clinics. It discusses the background and rationale for the clinics, as well as the methods used and results obtained. Key elements of the clinics are defined and examples are given of feedback received. Next steps discussed include following up with past participants, rolling out additional thematic programs, and adapting the pilot clinic approach based on lessons learned.
This set of slides provide an account of the meeting building upon the original slides that were used that day. Comments and questions from the participants and replies from the facilitator were added. The slides also contain the main insights and recommendations from the breakout groups which focused on five concrete ideas that could become part of MaFI's 2016 Work Plan; namely:
- adaptable management
- facilitation
- complexity for scale
- practitioner groups
- financial inclusion through market systems
The document summarizes a session from the SEEP Annual Conference in 2014 on scaling impact in inclusive market systems. The session focused on the state of the Market Facilitation Initiative (MaFI) and opportunities for collaboration. Key points included: MaFI continues growing slowly with impressive engagement among members; focus on sustainable knowledge production; exploring e-learning strategies for scaling facilitator training. Participants discussed topics like measuring systemic change, models for input/output market facilitation, and integrating human-centered design into development projects.
1) The document examines how effectively evaluations are contributing to learning among market development practitioners. It discusses findings from a survey of 25 practitioners that identified barriers like the quality and dissemination of evaluation results.
2) The survey found that while practitioners generally have opportunities to participate in and discuss evaluations, some lack incentives for learning like dedicated time or review in appraisals.
3) The author proposes a framework and recommendations to better incentivize learning, including tying evaluator compensation to demonstrated learning, using IT for internal feedback loops, and sector-wide surveys of learning initiatives.
A white paper produced by Kenya Markets Trust (KMT) and Engineers Without Borders (EWB) to promote the application of lean management principles to the field of inclusive market development
This is one of the learning documents produced by USAID's Leveraging Economic Opportunities (LEO) Programme. MaFI members will use this document to share knowledge about theories and practices related to market systems.
The Market Systems Framework initiative aims to align the VC framework with systems concepts, make the very poor more visible, and better express the fact that VCs are adaptive, multi-layered, non-linear, and relationship based. The initiative seeks to define inclusive market systems and propose recommendations for project design and implementation.
The framework will be used to develop a detailed learning agenda to address how we (i) analyse market systems, (ii) use the analysis to design inclusive interventions that achieve systemic change, and (iii) measure the results.
You can learn more about LEO at: http://www.acdivoca.org/LEO
This document provides instructions for members of MaFI (Microfinance Opportunities' Access to Finance Initiative) to introduce themselves on LinkedIn in order to build trust within the organization. Members are asked to answer three questions about their current work, an important recent lesson, and what help they would ask for from a fairy godmother or genie. They are then instructed to post their introductions and answers on the MaFI LinkedIn page under a specific discussion title format. The purpose is to get to know other members better through open sharing and build higher levels of trust, which can contribute to more effective learning, coordination, and collaboration.
The paper starts out by examining the civil society strategy of the Danish Ministry of Foreign Affairs which forms the basis for public NGO financing in Denmark. The assessment of the Danish policy environment includes extensive reference to a paper on the role of civil society in pro-poor growth initiatives prepared by CISU, an umbrella and fund for smaller Danish NGOs. Secondly, a couple of studies on the experiences of Danish NGOs working with the private sector are presented. Starting from a short reference to the role of NGOs and private sector in the area of microfinance, the paper then presents the role of the NGO in the development of pro-poor value chains including the planning and analysis process. Interventions are further specified in terms of a number of areas in which NGOs can support lead firms and small producers followed by a presentation of a number of ways that NGOs can ensure that working with the private sector indeed benefits the very poor. (Taken from the paper)
The Market Learning Event had the following aim:
To promote the appropriate use of market analysis and market based programming in humanitarian contexts through the consideration of the current and potential engagement with markets. The event set out to answer the following questions:
What are we doing today in relation to humanitarian programming and research?
What should we be aiming for?
What have we learnt in terms of challenges and solutions?
What do we need to do now and what is the priority?
The event combined presentations on experience and learning in assessment, analysis and response in relation to markets (see Agenda in Annex 1 for topics) in both the humanitarian and development sector, with working group discussions to explore gaps in knowledge and practices, and outline possible solutions for addressing these. While the learning had a clear humanitarian focus, the event aimed to explore developmental and private sector practices and knowledge, to allow for broadened learning and different approaches that could feed in and support the further development of humanitarian engagements.
This is a document that proposes a vision and strategies to do a second round of testing to find out a sustainable and efficient model to promote local-global dialogues between MaFI and LLGs all over the world.
This is the short version of the MaFI 2013 Work Plan. If you do not have much time to read the details, here’s a summary of objectives and modules:
Objectives:
- To continue influencing the principles, rules and practices of international development to promote facilitation approaches in inclusive market development using the MaFI-festo as a general guideline.
- To further the practice and thinking of inclusive market development facilitation through a systematic process of learning and action-research between market facilitators and M&E and complexity experts, mainly through the Complexity Dialogues and the Systemic M&E Initiative.
- To produce knowledge products based on MaFI’s learning agenda and processes (e.g. online discussions, webinars and in-person meetings) that inform and build the capacity of field practitioners and are relevant and interesting to other decision-makers such as donors and lead firms.
- To promote in-person interactions and local-global dialogue, learning and coordination through formal and informal initiatives such as Local Learning Groups, MaFI Ambassadors, workshops and conferences.
- To continue improving the efficiency and effectiveness of MaFI’s back-end operations (e.g. guidance to members, processing and selection of requests to join, MaFI introductions, selection of Top Influencer of the Month, etc.)
Modules:
- M&E of MaFI: To build better theories of change and indicators to monitor how learning and collaboration processes change in MaFI and to assess MaFI’s impacts on its members
- MaFI “Instructions Manual”: To codify the operational principles and the lessons learned by the facilitator of MaFI since its beginnings in 2007-8 and to provide tips and instructions about how to manage the back-end processes that keep MaFI running efficiently.
- Systemic M&E, Phase II: To illustrate the practical application, implications and impacts of the principles proposed in the Systemic M&E synthesis document in the context of inclusive market development initiatives.
- Complexity Dialogues: To build a learning agenda that will help MaFI to interact in a more systematic way with complexity experts to improve the application of complexity science in inclusive market development practice and policy-making.
- Capacity Building: To build global convergence and consensus around the basic skills and attitudes that effective and efficient facilitators of inclusive market development initiatives should have.
- Knowledge Production System: To convert the best discussions ever produced by MaFI into knowledge products that are easy to read and can reach large numbers of practitioners globally, both for information and training purposes.
- Local Learning and collaboration: To promote locally contextualised learning and collaboration between key development actors such as field practitioners, policy-makers and donors around issues related to facilitation of inclusive market development
“The purpose of this paper is to stimulate debate on what makes for good monitoring. It draws on my reading of history and perceptions of current practice, in the development aid and a bit in the corporate sectors. I dwell on the history deliberately as it throws up some good practice and relevant lessons. This is particularly instructive regarding the resurgence of the aid industry’s focus on results and recent claims about scant experience in involving intended beneficiaries and establishing feedback loops. The main audience I have in mind are not those associated with managing or carrying out evaluations. Rather, this paper is aimed at managers responsible for monitoring (be they directors in Ministries, managers in consulting companies, NGOs or civil servants in donor agencies who oversee programme implementation) and will improve a neglected area.” (Daniel Ticehurst)
IF YOU WANT TO DOWNLOAD THIS PAPER BUT DO NOT HAVE A SLIDESHARE ACCOUNT, PLEASE GO TO: http://bit.ly/mafisystemandesynthseep This paper is the synthesis of conversations that started in MaFI in June 2010 and a series of online and in-person conversations that took place in the second half of 2012. This paper captures the voices of practitioners, academics, donors and entrepreneurs who are trying to find better ways to monitor and evaluate the influence of development projects on market systems and learn more, better and faster from their interventions. The paper flags up three critical issues related to targeting, accountability and sustainability; and PROPOSES SEVEN PRINCIPLES that could help practitioners and policy-makers to designs and implement appropriate and usable systemic M&E frameworks.
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Chapter-1
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Chapter 2
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M4P Approach Synthesis (DFID and SDC), 2008
1. A synthesis of
the MAking MArkets
Work for the Poor
(M4P) APProAch
A publication financed by the UK Department for International Development (DFID) and the Swiss Agency for Development and Cooperation (SDC)
2.
3. A Synthesis of the Making Markets Work for the Poor (M4P) Approach
TABlE OF CONTENTS
FOREWORD
glOSSARy
OvERvIEW 1
the context 1
the approach 2
the paper and how to read it 3
1. MARKET SySTEMS MATTER FOR THE POOR 5
1.1 introduction 7
1.2 Understanding the poor in market systems 7
1.3 emerging conceptual thinking on market systems 12
2. WHy M4P? 15
2.1 introduction 17
2.2 the wider development experience 17
2.3 M4P in practice 19
2.4 caution and caveats 23
3. WHAT IS M4P? 25
3.1 introduction 27
3.2 M4P as an approach 27
3.3 A focus on market systems 27
3.4 Leveraging scale and impact 29
3.5 giving meaning and priority to sustainability 30
3.6 Addressing causes not symptoms 31
3.7 A facilitation role 32
3.8 An overarching approach 33
4. HOW TO IMPlEMENT M4P? 35
4.1 introduction 37
4.2 setting the strategic framework 38
4.3 Understanding market systems 40
4.4 Defining sustainable outcomes 41
4.5 facilitating systemic change 44
4.6 key attributes of facilitators 46
REFERENCES 48
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5. A Synthesis of the Making Markets Work for the Poor (M4P) Approach
FOREWORD
An estimated 2.6 billion people live on less than $2 a day. Over Opportunities for the Majority and the IFC’s Next Four Billion.
a billion lack clean water, 1.6 billion lack electricity and 3 billion Amongst businesses, there is growing interest in social investment,
lack access to telecommunications. This represents huge unmet sustainable business practices, fair trade and engaging with the
needs. As many of the world’s poor live in areas with limited Base of the (Economic) Pyramid. Although terminology and
state service provision they must rely on private markets for emphasis may differ, all of these approaches see a market-based
their livelihoods. As consumers, poor men and women rely on economic engagement with the poor as essential for sustainable
markets to meet their needs for food and essential services. As development.
employees or producers, they sell their labour or products in
these markets. But these markets are often difficult or costly In order to improve the understanding and uptake of market
to access for poor people. These markets may be informal, un- development approaches and to consolidate existing experience,
competitive and may not meet the needs of the poor effectively. DFID and SDC have commissioned a series of three documents
on M4P. Aimed at agency and government officials, consultants,
researchers and practitioners, these together provide a
More widely, the world’s poor are not well integrated into comprehensive overview of the approach in theory and
the global economy and do not get access to its benefits. In practice.
Development as Freedom, Amartya Sen describes participation
in economic interchange as a basic part of social living and The M4P Synthesis paper (this document) explains the essence
argues that economic freedoms are closely tied to political and of the M4P approach – its rationale, including evidence of
social freedoms. The poor often lack these freedoms. impact, and key features in implementation. M4P Perspectives
introduces the conceptual underpinnings of M4P and explores
Making Markets Work for the Poor (M4P) is an approach to its application in different fields including finance, agriculture,
poverty reduction that donors such as the Department for water, labour and climate change. These first two documents
International Development (DFID) and the Swiss Agency for have been sponsored by SDC. The M4P Operational Guide
Development and Cooperation (SDC) have been supporting (sponsored by DFID) provides a substantial operational
over the past few years. The central idea is that the poor are resource on how to implement M4P, including an overview of
dependent on market systems for their livelihoods. Therefore good practices, common management challenges and the main
changing those market systems to work more effectively and lessons from experience.
sustainably for the poor will improve their livelihoods and
consequently reduce poverty. More accessible and competitive Development of these documents was led by a team from The
markets enable poor people to find their own way out of Springfield Centre. They were assisted by advice and comments
poverty by providing more real choices and opportunities. from Marshall Bear, gerry Bloom, Richard Boulter, Don Brown,
Markets that function well have wider economic benefits too. Jean-Christophe Favre, Tracy gerstle, Alison griffith, Justin
Highstead, Joanna ledgerwood, Marc lundy, luis Osorio,
They stimulate investment and encourage firms to innovate, Alexandra Miehlbradt, Mark Napier, Kate Philip, David Porteous,
reduce costs and provide better quality jobs, goods and Peter Roggekamp, Prashant Rana, Hugh Scott, Dominic Smith
services to more people. The involvement of poor people in and Jim Tomecko.
economic growth is the best way to get people out of poverty
and represents the exit strategy for aid. All of these documents are also available in electronic form
at www.M4Pnetwork.org. We hope you find them helpful
The last few years have seen an upsurge of interest in market in meeting the challenge of developing market systems that
development approaches amongst aid agencies. Alongside benefit poor people.
M4P there is UNDP’s Growing Inclusive Markets, the IADB’s
Peter Tschumi Harry Hagan
Head of Employment and Income Division Senior Economic Adviser and Head of growth Team
SDC, Berne growth & Investment group, Policy & Research Division
DFID, london
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6.
7. A Synthesis of the Making Markets Work for the Poor (M4P) Approach
glOSSARy
Agencies: development organisations – funded by aid or other hierarchical exchange: exchange where one party, for example
non-commercial sources – who act as funders or facilitators in a large firm, has relatively more power in setting the terms of
pursuit of developing market systems. exchange with vertically-integrated suppliers.
Approach: a set of principles, frameworks and good practice institutions: structures and mechanisms of social, political
points to guide both analysis of a market system and actions to and economic order and cooperation – formal and informal
bring about change. – in a society/economy which shape the incentives and
behaviour of market players. Institutions therefore refer both
Asymmetric information: when one party in a market to the supporting functions and rules – sometimes referred to
trans-action – supplier or consumer – knows more than the other. collectively as ‘rules of the game’– in a market system.
Basic services: a range of services important in building people’s intervention: a defined package of temporary activities or
capacities, where consumption serves not just individuals but actions through which facilitators seek to affect change in a
impacts on the wider economy and society. This includes market system.
education, health, water and sanitation.
Lead firms: businesses capable of exerting a leading influence
BDs: business development services. on other firms and other players because of, for example,
their size or their reputation for innovation.
BMo: business membership organisation or business association
(see Representative organisation). M4P: the making markets work for the poor or market
development approach.
core function: the central set of exchanges between providers
(supply-side) and consumers (demand-side) of goods and Market: a set of arrangements by which buyers and sellers are
services at the heart of a market system. The medium of in contact to exchange goods or services; the interaction of
exchange can be financial or non-financial (such as through demand and supply.
accountability mechanisms).
Market player: organisations or individuals who are active in
crowding-in: the central process in – and purpose of – a market system not only as suppliers or consumers but as
facilitation through which interventions catalyse or bring other regulators, developers of standards and providers of services,
players and functions into the market system so that it works information, etc. This therefore may include organisations in the
better for the poor. Crowding-in can result in enhanced breadth private and public sectors as well as non-profit organisations,
(more transactions in the core of a market), depth (supporting representative organisations, academic bodies and civil society
functions) or reach (new areas or markets). groups.
externalities: negative or positive spill-over effects that are not Market system: the multi-player, multi-function arrangement
reflected in a market price. comprising three main sets of functions (core, rules and
supporting) undertaken by different players (private sector,
facilitation / facilitator: action or agent that is external to a government, representative organisations, civil society etc)
market system but seeks to bring about change within a market through which exchange takes place, develops, adapts and
system in order to achieve the public benefit objective of grows. A construct through which both conventionally-defined
systemic change. markets and basic services can be viewed.
gift exchange: exchange based around shared values and organisations: entities with a formal structure that play a range
reciprocity that is non-financial but still conducted on an informal of roles in the market system.
transactional basis.
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8. A Synthesis of the Making Markets Work for the Poor (M4P) Approach
glOSSARy
Public goods: goods or services which are non-rival and
non-excludable and therefore cannot be offered by private
firms.
representative organisation: an organisation which acts to
advance the interests of a specific group, such as a trade union
or a consumer rights body. Also referred to as a membership
organisation (see also BMO).
rules: formal (laws, regulations and standards) and informal
(values, relationships and social norms) controls that provide
a key input in defining incentives and behaviour in market
systems.
supporting functions: a range of functions supporting the core
exchange helping the market to develop, learn, adapt and grow
including, for example, product development, skills enhancement,
R & D, coordination and advocacy.
Sustainability (M4P definition): the market capability to ensure
that relevant, differentiated goods and services continue to be
offered to and consumed by the poor beyond the period of an
intervention.
strategic framework: a hierarchy of objectives linking an M4P
programme’s final goal of poverty reduction with an intervention
focus on sustainable market system change.
systemic change: change in the underlying causes of market
system performance – typically in the rules and supporting
functions – that can bring about more effective, sustainable and
inclusive functioning of the market system.
tools/instruments: relatively standardised methodologies for
market analysis (eg value chain analysis or usage, attitude and
image surveys) or for intervention (e.g. vouchers or challenge
funds).
transaction costs: the costs associated with the basic process
of exchange including costs concerned with searching, screening,
negotiating, contracting, monitoring and enforcing transactions;
the ‘‘cost of running the economic system’’ (Arrow, 1969).
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9. A Synthesis of the Making Markets Work for the Poor (M4P) Approach
OvERvIEW
Nothing much seems to be going right Rahim is in two minds over globalisation. Sam’s a natural optimist but even he has
for Jyoti. She wants her four kids to have On the one hand, he knows that the fast- to recognise that his vision of turning his
the education she didn’t but the teacher growing food processing factory where small machine shop into a sub-contractor
at the village school, even when he does he is employed depends on exports. His to large companies is a pipedream.
turn up, seems only half-interested. Jyoti job and wages – and the amount he can He can’t meet their quality or delivery
doesn’t know what to do about it. She send to his extended family back in his standards and he’s never really had a
does know what she’d like to do with her village (many of whom have no job) – are chance to meet those people anyway.
youngest. He’s sick and she’d like to take all derived from overseas markets. His In the meantime, he has more pressing
him to the private doctor in the nearby concerns have the same source. problems. One customer has decided
town, but she can’t afford the fees. So she Stories circulate in the company about not to pay the full amount for his order.
can only try her luck at the government stiff competition from other countries. Although Sam has pleaded, he knows that
clinic. Foreign buyers, previously the bringers the courts are too expensive and complex
Money is tight. She and her husband of orders and prosperity, are, according for him – his customer also knows this.
work hard on their small patch of land to his manager, now becoming more He’s asked his business association for
– and on any they can lease – but the demanding. They don’t just want the advice but they seem equally powerless.
returns are small. They never seem to get same ‘old stuff ’; they want ‘higher quality’, Sam feels that a better deal from the
better prices at the local market, while ‘safer’, ‘compliant’ with higher standards, bank would help his immediate cash
other farmers seem to squeeze more ‘pre-packaged’, ‘quicker’ and ‘more reliable’. flow problems and provide capital for
production from their lands. They have They want ‘better’… and would prefer to investment in new equipment. But Sam’s
always gone to a relative for their inputs – pay nothing more for it. bank seems unmoved by his requests.
seeds, fertiliser, pesticide – and his advice How is the company going to achieve legally, they can’t accept his ageing plant
has always been to use more. this? It needs to change, but how? Who as collateral and when he produced
Jyoti thinks that they’re coping just now can advise it? Rahim worries and ponders the title deeds to his village land, they
but, when she allows her mind to think whether he should reduce his weekly disputed their authenticity. The optimism
ahead, she can’t really envisage how payment to the family. Just in case. of ‘Enterprise Sam’ is being tested.
things might get better.
the context education and health, supposedly provided by the government
– are barely functional. But her limited access to effective channels
This paper is about how to improve the lives, fundamentally, of of representation makes it hard to push for change. And without
Jyoti, Rahim and Sam and the billions of other poor and excluded improvement here, her children’s vulnerability remains high, their
like them, by making market systems work more effectively. opportunity low.
‘Poor people’, of course, are very diverse.They come from different Rahim’s situation is different. He and his family have benefited from
locations, urban and rural; they have different cultures and values; the success of the company he works for in newly-open export
they have different livelihoods and expectations. Different, yes, but markets, and the growth it has generated. But his employment is
in many ways also alike. They share a sense that their lives could now tied to the company’s performance; and it needs to change.
be better and, like Jyoti, Rahim and Sam, face a common reality; low-cost production of commodities is no longer enough; it needs
for their lives to improve, their immediate environment needs to to move up the chain of value-added and to do so needs to use
change. In particular the markets and services around them, the a range of business services in logistics, production and quality
‘market systems’ which are often failing, and are an underlying control. But if the markets for these services are not working well,
cause of their problems, need to work better for people like if supply is limited or Rahim’s managers don’t see the need to
them. invest in them, the company’s competitiveness will be threatened
and jobs may go – including Rahim’s.
For Jyoti, living in a rural area, the key to higher incomes is better
markets for agriculture inputs and outputs. Without the right As a struggling small enterprise-owner, Sam is subject to a broad
information to hand, she doesn’t have the right answers to basic range of the economy’s problems. Inappropriate regulations
questions – what to use, how to grow, what to grow, when to sell, mean that he can’t use his ownership of property and land to
who to sell to. Higher incomes would clearly help her but only access finance – land markets are not working. He can’t pursue
to some extent. The services available to her family – especially a major debtor because commercial justice services are not
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10. A Synthesis of the Making Markets Work for the Poor (M4P) Approach
OvERvIEW
working. And he can’t bridge the gap dividing his small business the approach
from other larger businesses because the formal and informal
means of business exchange – networks, standards, information M4P is an overarching approach to development that provides
– have passed him by. agencies and governments with the direction required to
achieve large-scale, sustainable change in different contexts.
Addressing the underlying reasons why market systems – such as Focused on the underlying constraints that prevent the effective
those around Jyoti, Rahim and Sam – are not working well is at development of market systems around poor people.
the heart of the market development or making markets work
for the poor approach (M4P). M4P contains:
l
A strategic rationale.
l
A framework for understanding market systems.
l
guidance for intervention.
M4P is neither a narrow prescription nor a branded tool
but a flexible, comprehensive approach with application in
both economic (eg agriculture, finance, investment climate
and livelihoods) and social (eg water, health and education)
fields. Building on a wide range of experience and learning,
it recognises both the achievements and limitations of many
conventional approaches and the growing number of diverse,
successful applications of M4P.
For people like Jyoti, Rahim and Sam, M4P in practice might
mean a range of interventions. It might mean strengthening the
capacity and incentives of suppliers and retailers to provide
farmers, like Jyoti, with relevant information so they too can
be valued participants in the agricultural system. And it might
mean developing health and education provision that is more
responsive to the demands of rural households. For Rahim,
M4P might mean actions that tackle the core reasons for the
low level of business services. While for Sam, facing multiple
challenges, actions might concentrate on flaws in regulation and
enforcement that undermine the land and finance markets and
the commercial justice system. Or on the ‘softer’ constraints
related to business networks and lack of representation for the
thousands of emerging but disconnected entrepreneurs like
Sam. In each case, M4P offers potentially practical and lasting
solutions.
M4P is now being successfully used to reach and change the
lives of millions of people. Its potential to reach many more
– more Jyotis, Rahims and Sams – and to bring about sustained,
systemic change for more competitive and inclusive economies
is the impetus for this paper.
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11. A Synthesis of the Making Markets Work for the Poor (M4P) Approach
OvERvIEW
the paper and how to read it
This paper seeks to explain the essence of M4P – its rationale, its
key principles and features and the main implementation tasks. It
is aimed at a broad audience for whom M4P is relevant – policy
makers, agency officials, consultants, NgOs, researchers and
government staff – and provides a brief synthesis of the main
evidence and arguments for the approach. Its purpose is to:
l
Summarise key trends and issues in M4P.
l
Contribute to new thinking and more effective practice.
l
Provide an introduction to a series of connected documents
on M4P.
It is structured in four sections. It can be read as one document
or readers can go directly to the section which is most relevant
for their needs. Each section can therefore be been seen as an
integral part of the paper as a whole or read as a self-contained
document.
section go here for:
1. Market systems matter for the poor
The two principal background factors that have influenced development agencies and An overview of the ‘roots’ – real world
governments to pursue M4P. First, the observed reality of the poor in market systems, and conceptual – of M4P.
and second, new conceptual thinking on how market systems function.
2.Why M4P?
How the specific arguments for the approach emerged from development experience. The immediate factors driving agencies
It focuses first on similar learning from different fields and second on examples of M4P and governments to consider M4P – an
success. Together these make the case for M4P. organisational perspective.
3.What is M4P?
The key features of M4P, highlighting what is distinctive about the approach. These A concise explanation of M4P and its key
include its focus on market systems, the priority it gives to sustainability and large-scale characteristics.
impact, the facilitation role required in intervention and M4P’s overarching nature as an
approach within which many tools can be used.
4. How to implement M4P?
The main components in the M4P intervention process. An outline of key considerations A summary of how to put M4P into
in setting the strategic framework, understanding market systems, defining sustainable practice.
outcomes and acting to achieve systemic change.
This Synthesis paper is the first in a series of three documents that examine and explain M4P. The M4P Perspectives contain a
set of specific analyses of key issues in particular market systems (such as finance, agriculture, and water) and of the conceptual
underpinnings of the approach. In addition, the M4P Operational Guide builds on the outline given in Section 4 and presents the
main lessons learned in implementing M4P in order to provide an operational resource for users.
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12.
13. A Synthesis of the Making Markets Work for the Poor (M4P) Approach
1. MARKET SySTEMS MATTER FOR THE POOR
SUMMARy the underlying rationale for the M4P approach stems from
a new appreciation of the importance and role of market
systems in reducing poverty.
economic growth (the most important contributor to
poverty reduction) and expanded access are critical factors
in developing competitive and inclusive economies. these, in
turn, require:
l
Markets for goods, services and commodities that operate
effectively for everyone but especially the poor as consumers,
producers or employees.
l
Basic services – for example such as education, health
and water – that can build people’s capacities to escape
poverty.
Markets and basic services are traditionally regarded as very
different. The first is seen as being commercial and the domain
of private providers and the second primarily the domain of
government. however, recent trends and major changes in
economic thinking have allowed a more nuanced and realistic
view to emerge which recognises that they have common
characteristics.
Both are multi-functional; they require a mixture of different
functions to be undertaken such as regulation, information
and delivery. Both are multi-player; they require a range of
public and private players. in both, appropriate incentives and
capacities are central to success.
the term market system describes these shared features
of markets and basic services and provides a common lens
through which both can be viewed.
changing the lives of the poor – stimulating growth and
expanding access – means changing the market systems around
them. M4P recognises this reality and provides a coherent
and unified approach first to understanding and second acting
to improve market systems.
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14.
15. A Synthesis of the Making Markets Work for the Poor (M4P) Approach
1. MARKET SySTEMS MATTER FOR THE POOR
1.1 introduction Overall, at least 80% of the variation between countries’ poverty
reduction performance is attributable to differences in growth.5
Two sets of key factors provide the underlying rationale for
the M4P approach. First is the observed reality of the poor This straightforward message – that growth is good for all,
in market systems and the need therefore to understand including the poor – does not mean that all types of growth
and influence those systems. Second, in support of this, are are the same. In some latin American countries the poor, while
the conceptual foundations for M4P, particularly changes in still benefiting from growth, have done so proportionately less
economic thinking. Both of these factors have brought new than the average population.a But in many Asian countries the
insight into the importance of market systems and the way reverse has been true.6 growth that is pro-poor tends to be
in which they function and interact with the poor – and have more labour intensive and/or circulates the benefits more
major implications for agencies and governments, shaping both effectively through public transfers.
their policies and actions.
Access – poor people’s access to a range of basic services (Box 1)
1.2 Understanding the poor in market systems such as education, health and sanitation also has a strong
influence on poverty reduction. Consumption of these services
The eradication of poverty remains the main goal of the is related closely to economic growth.7 As incomes rise,
international development community and against it the world individuals and societies often choose to use this new freedom
has experienced mixed fortunes in the last two decades. globally, to invest in services such as education, health and telecommu-
the number of people with incomes below $1 a day has fallen nications. growth can generate a ‘virtuous circle’ of opportunity
to below 1 billion (18% of the population) with spectacular and prosperity, where higher incomes leads to a healthier and
reductions in many countries.1 This progress is mirrored in the more educated population, building capacity to take advantage
general health, education and other benefits associated with of opportunities and contribute to future growth.8
higher incomes.
But if growth and access are mutually reinforcing, access is not
But this aggregate picture disguises considerable diversity. simply a formulaic result of higher growth. The Indian states of
Reductions in some regions (such as East Asia where poverty Kerala and Uttar Pradesh, for example, have similar levels of
rates are now only 9% of the population) are countered by the gDP but Kerala has far superior health and education services,
rise in numbers elsewhere (Africa remains at 41%). While global with neo-natal service coverage four times higher and female
inequality (ie between countries) has reduced, within most school enrolment rates 50% higher than in Uttar Pradesh.9
countries it has increased. Changing the definition of poverty Higher incomes do not always translate into better access to
to an income of $2 a day places 2.5 billion people, almost half services. How services are offered – the mechanisms, incentives
the world’s population, under the poverty line – a figure that and relationships that guide delivery – may be as important as
has changed little in two decades. Other analyses refer to 4 the amount of resources (how much) devoted to them.
billion people on low incomes at the base of the “economic
pyramid’’ .2 Self-evidently, many people are still poor, subject to given this, what are the characteristics of an environment that
the vulnerabilities of low incomes and largely excluded from the delivers growth and access to poor people? At one level there is
benefits that others enjoy. broad consensus on this: an environment conducive to poverty
reduction will offer overall macro-economic stability, access to
Why growth and access are important international trade, security and rule of law, effective voice for
The central challenge for development agencies and the poor to decision-makers and transparent property rights –
governments is to learn from this disparate experience and the central tenets of mainstream economic thinking. But beyond
create an environment that allows more people to build their this, it must also provide markets and basic services that work
capacities and assets, earn higher incomes and take advantage for the poor.
of opportunities to escape from poverty. Such an environment
has to deliver two critical features: growth and access. Why markets matter for the poor
Markets are arrangements through which buyers and sellers
Growth – economic growth is the single biggest contributor to exchange goods and services and are the central organising
poverty reduction.3 Regions that have experienced the highest principle at the heart of successful economies. Markets stimulate
growth rates have seen the highest falls in poverty. For example, choice and competition so that producers are continually
the halving of poverty in vietnam between 1993 and 2002 – pressured to improve their efficiency and products and, in doing
from 58% to 29% – was fuelled by annual growth rates of 6%.4 so, offer better value to more consumers. When set within
a Here the growth elasticity of poverty has been below one – whereas on average it is close to one. r
7
16. A Synthesis of the Making Markets Work for the Poor (M4P) Approach
1. MARKET SySTEMS MATTER FOR THE POOR
an appropriate framework of rules, functioning markets are a Absence of information – about prices, trends, contacts – is
means through which both private and wider public gains are a key constraint for the poor in markets where, characteristi-
realised and are the basis for competitiveness and growth. cally, they have less ‘know-how’ and ‘know-who’ than those with
more resources. However, information flow in rural areas has
Markets matter for everyone. But for the poor – with weaker been greatly improved by better functioning markets. More than
informal networks and links to government patronage – one-fifth of Africans now subscribe to a mobile phone service
markets are especially important.They provide the direct means offered by private providers within an environment set by public
through which the poor participate in economic activity – as regulators.15 And newly-permitted private media, especially
producers (farmers, business owners), as employees (providers radio, are now the main information source for rural people in
of labour) and as consumers (of goods and services). Markets many countries.16
operating in an inclusive way offer the poor the things they
need – jobs, opportunities, goods, services – to increase their The main asset of the poor, however, is not land, but labour, and
incomes. Conversely, where markets are working exclusively or it is labour productivity which has to grow if incomes are to
inefficiently, poor people have fewer chances to benefit directly rise. Some countries allow poor people to use this asset more
from growth. Indirectly, even if the poor are not immediately than others. globally, the garment industry has often been the
involved, markets such as those for services and the factor foundation for industrialisation and its starting point has been
markets of land, labour and capital, affect the whole economy labour-intensive manufacture. Countries such as Bangladesh
and the poor within it. (2.2 million employees) and lesotho (50,000) have created
labour conditions that attract investment and allow wages that,
Whether direct or indirect, the sometimes complex ways in for women in particular (80% of the garment workforce), are
which markets function shape the environment of the poor. higher than for comparable jobs.17 18 In others, such as South
Access to land for example is always a critical issue in agriculture Africa and many East European countries, labour regulations
and is often problematic. In China and vietnam, changing the render them high cost and unproductive locations.19
rules governing the use of land – allowing farmers to take de
facto title – altered incentive structures and stimulated major Whether countries can progress from cheap labour to higher
increases in output (7% per annum in China) and productivity. 10 11 value-added products, competing on quality, delivery and design
In many African countries, however, traditional land ownership depends critically on better functioning service markets. In
patterns and the social norms around them, especially for middle-income economies such as those in South East Asia,
women, provide few incentives for investment. specialised services – consulting, technology, transport and
design – may not involve the poor directly but indirectly as
This weakness in the operation of land markets may be worsened interconnected markets are crucial for the competitiveness of
by other market flaws. In Rwanda, agriculture is intensive but farmers the industry and for the livelihoods of those working in it.
have little access to information about good practices, seeds or
other inputs. Consequently productivity is low – one-third that Markets are always interconnected and the cause of one
of ghana.12 People work hard in Rwanda but their environment market’s weak performance frequently lies in related markets.
does not allow them to work ‘smart’. In contrast, farmers in other As Hernando de Soto20 has highlighted, the operation of
countries, such as Bangladesh, are better served by a network of land and property markets is often central to the operation
input suppliers who provide information and advice as well as new of other markets. For example, effective land markets provide
seeds and fertiliser – and here productivity is rising. the collateral basis to stimulate financial services; differences
in national financial sector performance have been shown to
More widely in Africa the absence of developed market account for approximately 20% of variances in overall growth
structures such as commodity exchanges13 – which offer pooling rates.21 And the interconnection of markets is also evident in
mechanisms to reduce price volatility – means that farmers the environmental sphere where some potential solutions to
are especially vulnerable to ruinous boom and bust cycles. For addressing climate change centre on more effective marketsb
example, record grain harvests for Ethiopian farmers in 2001 – ranging from carbon markets to those for energy production
were followed by a disastrous (80%) price collapse in 2002.14 technologies and conservation.22
b The Stern Report into the economics of climate change characterised it as the “greatest and widest-ranging market failure ever seen’’. r
8
17. A Synthesis of the Making Markets Work for the Poor (M4P) Approach
1. MARKET SySTEMS MATTER FOR THE POOR
These examples show how markets can work efficiently for
all and in particular in favour of the poor – but also how, in Box 1
many situations, they don’t. They also illustrate that markets are explaining ‘basic services’
pervasive and important parts of the poor’s socio-economic
environment. As Amartya Sen23 notes, there’s little point being Commonly-used terms can serve to confuse rather than clarify
against markets per se. like breathing air, they’re there… the nature of services. ‘Public’ and ‘private’ imply an unrealistically
the point is to make them work more effectively. concrete distinction. By the normal definition (non-rival,
non-excludable etc) there are very few genuine public goods
M4P recognises this central fact – the ubiquity and importance or services. Services widely perceived to be public – such as
of markets – and its clear consequence: poverty reduction water – provide direct (private) benefits to individuals as well as
requires that markets work better for the poor. contributing to better public health and economic growth.
Basic services and the poor On the other hand, services often seen to be ‘private’ including
A range of services are important in building people’s capacities to most business services such as mobile phones (although fixed
develop beyond poverty. ‘Basic services’c – where consumption lines are often seen as a public service) bring direct benefits for
serves not just an individual but impacts on the wider economy users but also serve a public purpose of reducing information
and society – are related most obviously to education, health, and search costs in markets and therefore increasing economic
water and sanitation. However, basic services might also include efficiency. In both there are significant externalities.
new services of growing relevance in a changing economy such
as mobile telephony, vocational training and basic finance.
In relation to children’s education for example, direct
Fixed lines cannot be drawn easily around ‘basic’ services to government delivery has a mixed record. While some publicly-
distinguish them from others, like accounting for instance, which delivered services are seen to be excellent (as in Singapore),
can be seen as within the domain of private markets (Box 1). for lower-income countries the record is often one of low
But basic services can be distinguished by the strong externalities standards, little accountability and weak provider motivation and
associated with them and, for some, their connection to human competence. For the most remote and poorest areas, teachers
rights.d In this sense, basic services cannot simply be ‘left’: they are often simply not there. In India, for example, teachers’
are always a concern for and responsibility of governments. absenteeism averages 25%.24 State-delivered education has
become dysfunctional in many countries.
For poor people, access to and use of these basic services is
especially important since they are pivotal to strengthening The weak state of children’s education is a key reason why
capacity – which the poor characteristically lack – to take wealthier people pay for private education. However, in a grow-
advantage of opportunities. yet, despite their importance, ing number of situations, poorer families are also abandoning
there are no fixed models of delivery that can claim to be government schools for private providers. One recent study
best practice and define what a successful system looks like for covering India, ghana, Nigeria and Kenya found that a majority
providing basic services. Rather there are a range of experiences of residents in selected poorer slum areas used local, relatively
involving both private and public players from which common low-cost private schools – and that the standards in these were
themes emerge. higher than in their government counterparts.25
There are other examples which actively combine public and
private players. In El Salvador, community-based schooling,
supported financially by government and with accountability to
parents and the community, has delivered higher enrolment and
standards than conventional state schools.26
Innovations in water and sanitation services also revolve around
a re-alignment of public and private roles. In some cases, blanket
privatisation which has not understood the incentives and
capacities of different players has not succeeded. However, in
many other situations realignment of public and private roles
has produced clear benefits. In latin America, for instance, a
range of different models of public regulation and supervision
and private provision have been used.
c Often referred to in economics literature as ‘merit goods’. r
d The Universal Declaration of Human Rights covers both health and education.
9
18. A Synthesis of the Making Markets Work for the Poor (M4P) Approach
1. MARKET SySTEMS MATTER FOR THE POOR
These have produced major growth in water connections (in from markets and basic services to market systems
Argentina these increased by 30% during the 1990s), with the Countries where markets and basic services work effectively
largest gains for the poorest groups (Figure 1), and have achieved in favour of the poor offer the most conducive environment
discernible reductions in child mortality.27 But this improvement for poverty reduction. At first sight, markets and basic services
stands in contrast to the overall picture of low and static access might seem to be entirely different, one being commercial,
where the traditional subsidies given to existing consumers payment-based and offered by private providers and the other
exclude those who are not connected (the poor). And the poor with public organisations in prominent roles. Closer inspection,
commonly only have access to unsafe and expensive services; however, shows that they share a number of features (Box 2):
buyers of door-to-door water in Africa typically pay between
three to ten times more than tap-connected users. Multi-player
In both cases, the mixture of different functions necessary for an
There are similar issues in the relationship between public and effective system requires a range of private and public players
private roles in the more complex world of health and nutrition. (such as private firms, government departments, membership
Here, services include those aimed at individuals (personal organisations and academic groups). ‘Public’ services are never
treatment) and the wider population (immunisation, public entirely public, and ‘private’ markets never entirely private.
health messages). The wider experience with public delivery
in low-income economies is mixed. In some countries, such as figure 1
Cuba, Malaysia and Sri lanka – it has been relatively successful. growth in water connections following private sector
However, poorly motivated staff (absenteeism in public health participation
facilities in Bangladesh averages 35%), low capacity and poor
performance are more common. In most cases, the reality is a
‘messy’ pluralist, public and private, health sector. This poses new 35
challenges for public policy such as more appropriate regulatory
% gROWTH IN CONNECTIONS
30
arrangements and the state as a purchaser of services – rather
than continued pursuit of a unitary centralised system. 25
Promising new initiatives have sought to, among other changes, 20 Argentina
place the management of services in community hands (as in
15
Benin, guinea and Mali28) and, by requiring co-payment from
users, make providers more accountable to them (as in Mexico29). 10
But this kind of successful re-alignment of roles between public
Bolivia
and private players is still rare. And some reforms produce 5
negative results; for example, as a consequence of reforms, The poor benefit most
0
Chile
heath workers in China have been encouraged to sell excessive
POOREST 2 3 4 RICHEST
drugs in order to earn higher incomes.30
INCOME qUINTIlE
These examples, covering a diverse range of basic services,
illustrate that the poor can be reached, but often aren’t. learning
from these trends, M4P recognises that successful approaches
often involve a realignment of public and private players guided
by a better understanding of incentives and capacities.
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19. A Synthesis of the Making Markets Work for the Poor (M4P) Approach
1. MARKET SySTEMS MATTER FOR THE POOR
Multi-function
Traditional centralised systems of service delivery, with some Box 2
exceptions, are often failing. The reality is pluralistic or hybrid the common ground of markets and basic services
systems and the challenge is to make such systems work better.
Similarly, markets (for land, labour, products, commodities etc) While there might appear to be little in common between a
often don’t work because public roles – regulation, information, market such as food products and a basic service such as water,
access to research – are not undertaken properly. closer analysis shows that they exhibit similar characteristics.
In each, in order for the ‘core’ activity (the production and
Built around incentives and capacities consumption of food and water) to be successful, other
Successful change in both markets and basic services is based functions (such as regulation, information, training and research)
around developing the technical capacities of different players need to be performed by different players – and they need to
and aligning better their incentives and motivations. Such have sufficient capacity and incentives to do so.
incentives might well be sharpened through changing formal
rules or the informal norms which often connect directly to the In food markets, the direct product flow is likely to be a series
lives of poor people. Especially important is to recognise the of commercial links between private sector players (grower to
centrality of transactional relationships in successful systems. processor to retailer to consumer etc).These are governed by an
increasingly complex set of rules. Some are national regulations
The term ‘market system’ used throughout this paper describes on food safety and environmental protection set and enforced
these shared characteristics of markets and basic services. by governments. Others are quality standards set by supra-
M4P recognises this common ground and provides a basis for national non-profit bodies with certification done by private
a coherent, unified approach to first understanding and then providers. Training and consulting to companies is also usually
acting to improve market systems. the domain of the private sector but this may be influenced by
advice and information from research bodies and associations.
Associations’ primary role however is likely to be advocacy to
government and international bodies.
A basic service such as water might involve a variety of different
arrangements. If provision is by the private sector (or a not-for-
profit association), a range of other tasks will be required largely
from public bodies, including supervision and coordination,
target setting, performance monitoring, testing and inspection.
Consumer information might be provided through an industry
association which might also set performance standards.
Specialised technical support services would lie with the private
sector. And a water consumers group might be necessary to
ensure better provider accountability.
The point here is not the precise make-up of each, which may be
different from one context to another. Rather it is to recognise
that both markets and basic services can be viewed through the
same market system lens and that M4P is relevant to both.
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20. A Synthesis of the Making Markets Work for the Poor (M4P) Approach
1. MARKET SySTEMS MATTER FOR THE POOR
1.3 emerging conceptual thinking on market systems
Box 3
Accompanying this new realisation of the position of the poor Different types of exchange in a market system
within market systems has been new analysis on the nature
and role of markets. Much of this recognises the limitations The maize market in Bangladesh has been growing, driven
of conventional economic thinking and the need to better by booming demand from the poultry feed industry. The
understand how people behave within market systems. This functioning of the maize market system and the distribution of
new thinking on market systems has implications for agencies its benefits is based around different types of exchange. Maize
and governments.e farmers sell to buyers either for cash or promise of payment.
Farmers themselves increasingly operate in hierarchical contract
In conventional economics, markets are seen to be the means farming arrangements where a lead (large) farmer provides
through which resources are allocated. When operating under inputs, advice and finance to a large number of contractors in
conditions of perfect competition and perfect information, return for all their maize output at a fixed price.
rational market players respond to price signals (and these
alone) and this price-regulated, money-based cash (or spot) In general lead firms prefer to deal with larger rather than smaller
exchange ensures efficiency and delivers growth. farms since this reduces their transaction costs. Other than some
employment gains, this preference has raised concerns over
Of course, the assumptions underpinning this view of markets how the smallest farmers and the landless benefit directly from
often do not apply. Markets are prone to a number of well- maize. In practice, however, benefits stem from the informal,
known imperfections (or failures). Asymmetric information patron-client-based relationships common in rural Bangladesh.
– when suppliers know more than consumers and vice versa Contract farmers, informally, often sub-contract production
– can lead to under- or over-supply of particular goods. to smaller farmers using a variety of risk and income-sharing
Externalities (either negative or positive) exist when the mechanisms. Such arrangements are outside (and disapproved
production or consumption of a good has spill-over affects that of) by lead farmers but they are important in helping the poor
are not reflected in the market price. And public goods are participate directly in the market system.
those which are non-rival and non-excludable and therefore
cannot be offered by private firms.
These weaknesses undermine the usefulness of conventional
So, one problem with conventional economic thinking is that the analysis in providing a cohesive platform for analysis and action.
central framework for analysing markets is a theoretical abstract They also highlight the need for a more practical and holistic
that tends to assume away inconvenient facts and is not likely framework to guide agencies and governments. Emerging
to provide useful guidance for policy-makers. Blunt analysis of thinking from a number of different perspectives (such as
problems can lead to equally blunt actions. behavioural and new institutional economics33) has sought to
offer this framework.
Two other types of exchange are recognised in economics,
outside of the theoretical idyll of the spot market. gift exchange Most important here are the related concepts of transactions
is based around shared values and reciprocity, exchange is non- costs and institutions. In a perfect economic world it is assumed
financial and based on mutual obligations – and this obviously that there are no costs to exchange between buyers and
may be especially important for poorer people. Hierarchies sellers. In the real world however, buyers and sellers often
occur where one party has relatively more power, and is able to lack information, lack trust or are physically separated, erecting
exercise more command and control. large firms, for example, barriers to exchange which then take resources to overcome
can dictate terms and control information flow to smaller (these are known as transactions costs). More efficient markets
suppliers.31 find ways of dealing with these costs, through mechanisms for
defraying risk, making information available, maintaining and
Economics therefore identifies different types of exchange – enforcing standards, and protecting consumers (these are
market, gift and hierarchy – all of which may be relevant for known as institutions).
poor people. But the problem with this, as guidance to policy
makers, is that the distinction between the three categories is
forced and artificial. In reality, all three types of exchange often
co-exist and the boundaries between them are blurred and
shifting32 (Box 3).
e M4P Perspectives has a more detailed analysis of conceptual issues in M4P. r
12
21. A Synthesis of the Making Markets Work for the Poor (M4P) Approach
1. MARKET SySTEMS MATTER FOR THE POOR
Transaction costs are a key indicator of the efficiency of a market l
The validity of the narrow prescriptions for government
and are, to a considerable extent, a function of institutional action which are generated by inaccurate analyses is called into
development. The burden of transaction costs tends to fall question. For example, services are often incorrectly labelled
disproportionately on the poor. For example, a bank, supported ‘public goods’ (there are very few public goods in reality) and
by regulations and knowing how these work, will pursue an this designation used as a carte blanche justification for direct
unpaid debt – a fact which the debtor is aware of. In contrast, state provision with little consideration of other options (such
a poor producer doesn’t know about the relevant regulations as regulation, research and information) that may actually be
and cannot afford to go to court to recover unpaid debts – a more useful in promoting access (Box 435).
fact his/her debtor is very aware of.
Transaction costs and institutional development apply not just Box 4
to the monetary exchange within commercial markets but also from analysis to actions in aquaculture
to other types of exchange. For example, schools are more
likely to be effective when teachers feel accountable (formally In aquaculture, up-to-date information is recognised as important
or informally) to parents and pupils. And information flow to promote new ideas and practices. Often this is seen as a
between players in a value chain is more effective when built public good which should be provided through government
upon trust. extension services. However, in Bangladesh, a more nuanced
analysis recognised that:
Inherent within transaction costs is stronger recognition of the l
Extension service officers had few incentives for good
role and nature of incentives in market systems. In particular, performance and a dysfunctional working culture prevailed.
people’s motivations and behaviour are not seen simply as a l
Private input suppliers (such as nurseries) had a commercial
function of prices but are shaped by a range of factors, both incentive to provide useful advice to farmers as a means of
formal and informal. For example, while the leasing of land is improving their performance and of differentiating what they
permitted in Ethiopia and should provide opportunities for did from their competitors.
investment, informally, a widespread perception of tenure
insecurity undermines farmers’ incentives to do so.34 Intervention built on this analysis and improved information
flows through private players with subsequent improvements
These trends in economic thinking have a number of implications in productivity.
for agencies and governments:
l
Different types of exchange – monetary and non-monetary
– are intertwined and are all subject to transaction costs and M4P builds on these recent trends in conceptual analysis to
institutional development. Separating these into artificial establish a common framework that recognises exchange in
boxes of analysis is neither practical nor aids clarity. They need different forms, the mixture of functions and players and the
to be brought within the same conceptual framework – incentives and rules within market systems. More importantly,
market systems. M4P seeks to go beyond the conceptual analysis of markets.
l
Analysis and understanding needs to reflect a more nuanced Increasingly, as Section 2 shows, the evidence of M4P in practice
view of how markets operate. Seeing exchange (supply is that it provides a useful framework not just to understand the
and demand) as the only function in markets is simplistic and world but to act to change it significantly.f
inaccurate, missing the important functions related to rules
(formal and informal) and information where the underlying
determinants of market performance are often to be found.
l
Since institutions are human-created, evolution towards more
efficient and inclusive markets is not inevitable. Market systems
(and countries) can become stuck in paths of under-
development and poverty, reflecting the vested interests of
powerful groups. However, more positively, the ‘rules of the
game’ that shape behaviour can be understood, influenced
and changed through purposeful, focused action. It is this that
offers opportunity for agencies and governments.
f To misquote Marx, the point of M4P therefore is not simply to interpret the world but to change it. r
13
22.
23. A Synthesis of the Making Markets Work for the Poor (M4P) Approach
2. WHy M4P?
SUMMARy The specific arguments driving agencies and governments to
adopt M4P stem from two factors:
l
Learning from a range of development experiences on what
works (and what doesn’t).
l
the success of M4P in practice.
first, across a range of different development experiences and
fields – from agriculture and finance to water and sanitation
and health – similar conclusions have been drawn. Many efforts
at direct intervention and distant reform have failed – achieving
limited outreach, impact and sustainability, and distorting rather
than developing markets.
Learning from these experiences indicates that agencies and
governments need to ground what they do in the reality of
market systems and focus on stimulating systemic change.
second, from different sources, there is growing evidence
that M4P works. Major programmes, in different contexts
and markets systems explicitly using the M4P approach and
governments and agencies influenced by its key tenets, have
achieved significant change.
change is manifested in high levels of outreach and impact
– for example, the number of people accessing and benefitting
from new services. More important, in each case, capacities
and incentives have been developed to show that change is
sustainable and therefore impact will grow further in the
future.
M4P is not a panacea and there are still areas of debate over its
application. nonetheless, taken together, these factors highlight
the value of the approach in addressing misconceptions of
market systems, introducing a more positive (yet realistic) view
of their role, and setting out how to realise their potential for
all – and for the poor in particular.
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24.
25. A Synthesis of the Making Markets Work for the Poor (M4P) Approach
2. WHy M4P?
2.1 introduction 2.2 the wider development experience
The immediate rationale for the M4P approach for agencies The direct experience of development agencies and governments
and governments is provided by two factors. Building on wider whose policies and resources impact on the development of
trends – the importance of market systems and changes in market systems and the poor is often the most powerful driver
conceptual thinking accompanying this – these relate to specific of change. What has been their experience and what can be
experiences of organisations. First is their experience in different learned that might help to guide future actions?
fields and the common learning to emerge from these: the need
to adopt a new approach focused on systemic change. Second One of the distinctive features of M4P is that its origins lie
are the achievements of M4P in practice and the evidence that, in a broad range of development fields where poor people
as an approach, it can deliver substantial, sustainable impact. interact with market systems. These include agriculture, finance,
While there are some outstanding issues in relation to the poor private sector development, water and health. Traditionally, each
and market systems where there is still much debate, these operates as a separate ‘box’ of activity, knowledge and models
factors together help make the case for M4P. of practice – with little cross-over learning between them.
However, despite their difference, the experience of each and
the parallel learning processes they have spawned have reached
Box 5 remarkably similar conclusions. M4P grows from the common
intervening impulsively in business services experience in these fields. generalising (and simplifying), this can
be presented as a continuum with, at either end, two contrasting
The perils of impulsive intervention have been exposed most perspectives: impulsive intervention and remote reform.36
notably in the business services (BDS) field – the swathe of
non-financial services critical for business development. From impulsive intervention
the late-1990s onwards, BDS was the focus of an almost unique This first strand of development practice has been concerned
collaborative effort between agencies coordinated through the with intervening directly to ‘get things done’. Here, the essence
Donor Committee on Enterprise Development. The purpose of the approach is that, if the market system isn’t delivering well,
was to explore agencies’ experience transparently so that the ‘we’ (agencies and governments) should replace it and provide
learning curve would be ‘cleaner’, more widely accepted and finance, advice, materials, services… whatever is required,
more effective. directly. We should do it ourselves to ‘get on with the job’.
The message from this process was that: Interveners emphasise their ‘hands-on’ business-like ethos and
l
Direct support to business was usually ineffective, producing – impatient with the perceived inaction of others – see their
few benefits. approach as practical, a tangible means of generating ‘quick-
l
The horizon of sustainability only lasted as long as the wins’. For governments, the interveners’ impulse manifests
external subsidy. itself in direct delivery by them. For agencies, intervention may
l
The core task of agencies should be to facilitate markets for either mean delivery directly by them or, more commonly,
BDS, not to subsidise delivery directly and continually. working with partners (such as government or not-for-profit
organisations) to deliver directed, subsidised services.
The outputs from this process have influenced practice
significantly. Of course, there are examples of agencies that do After many years, with some exceptions, it is now clear that
intervene in a direct manner. But at least the challenge for them this has not been a hugely positive experience. Major reviews
is laid out more clearly: how to ensure that they develop rather in different fields (Box 5) indicate that the results of these
than distort incentives and the process of longer-term change interventions have been characterised by37:
and development. l
limited outreach – typically with a small proportion of potential
users being served.
l
limited impact – with only patchy signs of positive change
and little evidence that directed support stimulates wider
development.
l
limited sustainability – with the whole apparatus of ‘support’
requiring continuous infusions of external resources.
l
limited efficiency – with relatively high costs required to
deliver.
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