This document outlines seven principles for monitoring and evaluating inclusive market development programs. It discusses the principles of indirect impact, depth of impact, network-driven change, unpredictability, sensitivity to external signals, information deficit, and the need for frameworks to embrace complexity and flexibility. The principles emphasize looking beyond superficial changes to deeper structural shifts, understanding network dynamics, adapting to unexpected outcomes, managing external perceptions, and acknowledging information gaps.

1. MONITORING
&
MEASURING
CHANGE
IN
MARKET
SYSTEMS
Systemic
M&E
Principles
in
the
context
of
Kenya’s
Market
Assistance
Programme

2. SEVEN
PRINCIPLES
FOR
M&E
OF
INCLUSIVE
MARKET
DEVELOPMENT
•
•
USAID-­‐funded
SEEP
Network
Case
Study
based
on
Kenya
Market
Trust’s
DfID-­‐funded
Market
Assistance
Programme
hIp://www.slideshare.net/MarketDevelopmentEastAfrica/
systemic-­‐me-­‐case-­‐study

3. •
Markets
are
complex
adapQve
systems
(conQnually
evolve
and
adapt)
•
M&E
frameworks
for
inclusive
market
development
must
embrace
systemic
thinking
and
complexity
science
as
well
as
culQvate
flexibility
and
organizaQonal
learning

4. PRINCIPLE
1:
INDIRECTNESS
OF
IMPACT
Systemic
change
cannot
be
directly
delivered
by
a
development
iniQaQve
from
outside
-­‐
needs
to
emerge
from
within
the
system
Issues:
• Difference
between
direct
and
indirect
beneficiaries
becomes
pracQcally
useless
• InformaQon
needed
for
management
and
learning
is
different
from
the
informaQon
required
by
donors

5. PRINCIPLE
2:
DEPTH
OF
IMPACT
•
Changes
in
a
system
are
different
depending
on
how
structural
and
long-­‐
lasQng
(how
“deep”)
they
are
•
•
•
Closer
aIenQon
must
be
paid
to
deeper
changes
•
•
•
•
Superficial
changes:
variaQons
in
incomes
and
number
of
jobs
Deeper
changes:
self-­‐awareness
-­‐
when
the
system
quesQons
its
own
nature
and
evoluQon;
creaQon
of
new
relaQonships,
increased
access
to
informaQon,
shi^s
in
behavior
and
power
dynamics
Consider
range
of
indicators
and
signals
that
indicate
that
change
is
occurring
at
deeper,
more
structural
levels
of
the
system
Look
beyond
the
individual
market
actors
and
their
business
models
to
find
paIerns
that
are
emerging
in
the
wider
system
Put
a
strong
emphasis
on
behavioral
aspects
of
the
market
actors
Issues:
•
•
Pressure
from
donors
to
focus
on
reporQng
impacts
of
superficial
changes
All
types
of
change
provide
useful
informaQon,
but
an
exclusive
focus
on
the
most
superficial
ones
will
have
negaQve
consequences
on
sustainability
and
scalability

6. PRINCIPLE
3:
NETWORK-­‐DRIVEN
CHANGE
•
Work
with
collaborators
who
have
potenQal
to
produce
changes
that
“reverberate”
throughout
the
system
•
•
•
•
•
Understand
structures
and
dynamics
of
networks
Create
condiQons
for
self-­‐selecQon
of
key
collaborators
z
Promote
disseminaQon,
copying,
and
adaptaQon
by
collaborators
of
the
successes
or
lessons
generated
Change
is
driven
by
the
collaborators’
networks,
not
by
them
as
individuals
Unresolved
issue:
•
•
M&E
framework
does
not
generally
have
procedures
or
tools
to
measure
network
structures
and
dynamics
Remains
in
the
subjecQve
or
intuiQve
domain,
linked
to
the
people
who
interact
with
the
networks
on
a
regular
basis

7. PRINCIPLE
4:
UNPREDICTABILITY
Behavior
and
evoluQon
of
complex
systems
resist
predicQon
•
Need
flexibility,
rapid
learning,
and
effecQve
collaboraQon
•
•
•
OrganizaQonal
culture
that
rewards
faster
learning,
course
correcQon,
adaptaQon
to
unexpected
circumstances,
promotes
trust,
values
mistakes
and
problems
as
opportuniQes
for
success
Movement
away
from
long-­‐term,
staQc
strategic
analysis
and
planning
of
fixed
indicators
Allow
teams
to
discuss
and
re-­‐evaluate
intervenQons,
exchange
lessons
quickly
and
reflect
about
progress
and
challenges

8. PRINCIPLE
5:
SENSITIVITY
TO
EXTERNAL
SIGNALS
•
•
•
•
When
an
NGO
or
a
donor
declares
intenQon
to
intervene
in
a
market
system,
public
and
private
actors
adapt
their
behavior
and
strategies,
seeking
to
maximize
benefits
in
many
different
ways
(eg
for
economic
gain,
reputaQon,
and
influence)
Facilitators
must
be
careful
about
the
signals
they
consciously
or
unconsciously
send
when
they
engage
with
market
actors
Successful
facilitators
manage
the
signals
they
send
to
promote
self-­‐selecQon
and
determine
the
honesty
and
commitment
of
strategic
actors
who
are
willing
to
collaborate
How
a
program
uses
its
own
idenQty
is
very
important
and
needs
to
be
tailored
to
the
specific
situaQon
(challenging
the
hypothesis
that
minimizing
the
possibility
of
being
perceived
as
an
influenQal
subsidy-­‐giver
or
helper
is
the
only
recommended
strategy
for
facilitators)

9. PRINCIPLE
6:
INFORMATION
DEFICIT
No
maIer
how
much
we
know
about
a
market
system,
there
will
always
be
informaQon
that
we
ignore
that
can
have
important
consequences
on
how
the
system
performs
and
evolves
•
•
•
•
•
QuesQon
how
much
we
should
know
before
we
intervene
in
the
system
Need
for
conQnuous
learning,
effecQve
communicaQon
and
collaboraQon
among
key
stakeholders
and
partners,
opportunism
and
flexibility
throughout
the
design,
implementaQon,
M&E
M&E
Framework
co-­‐evolves
with
the
staff’s
knowledge
and
understanding
of
the
system
Do
fewer
detailed,
hands-­‐off
analyses
(“cold”
analyses)
and
more
“full
immersions”
in
the
system
(closer
and
more
frequent
interacQons
with
stakeholders
to
experiment
with
new
ideas)
AIach
a
high
value
to
informaQon
from
field
observaQons

10. PRINCIPLE
7:
SUSTAINABILITY
AS
ADAPTABILITY
•
Sustainability:
efforts
to
increase
the
capacity
of
market
actors
to
conQnue
changing
their
own
systems
in
the
eventuality
of
shocks
or
new
trends
•
M&E
frameworks
need
to
detect
whether
a
system
is
building
its
capacity
to
adapt
to
shocks
and
new
trends
Require
shi^
in
understanding
of
“sustainability,”
from
the
permanence
of
given
outcomes
through
Qme,
to
the
capacity
of
a
system
to
benefit
from
new
opportuniQes
and
minimize
negaQve
impacts
•