Intervention Process and Cycle in M4P

M4P Strategic Framework

Inclusive Markets

Markets are the means through which people participate in economic activity. They can do so as producers (farmers, entrepreneurs), as providers of labour (employees) and as consumers of goods and services. When markets operate in an inclusive manner, they serve all participants, including the poor, by offering them the things they need to increase their incomes and meet their consumption needs jobs, new opportunities to earn income, access to assets to improve their livelihoods, products to consume that they can afford. Markets thus provide people with the means to contribute to and benefit from the growth process. Conversely, where markets exclude or disadvantage people, especially the poor, they have fewer chances to participate in and benefit from economic growth. As opposed to the assumption in classical economics that the conditions for perfect competition exist in all markets, in real life, and especially in the developing countries, markets often fail to function in either an efficient or inclusive manner. This may be due to a wide variety of reasons. Some of these are intrinsic to the functioning of markets themselves (market failures) . Others are caused by government failing to discharge its role of ensuring an enabling environment and setting appropriate rules for markets to function, providing the infrastructure and other public goods needed and to correct for market failures (government failure). When markets fail, market opportunities are frequently captured by the privileged few rather than open to the many, based on their talent and abilities, thus undermining growth. Moreover, when markets fail, their outcomes are often determined by power and wealth, disadvantaging the poor in participating in and benefiting from the growth process . MMW4P/M4P provides a framework that can help to improve the functioning of markets and the fairness of their outcomes.

Note: MMW4P- making markets works for the poor

For more reading follow the link herewith:

 http://www.value-chains.org/dyn/bds/docs/685/M4P%20paper3.pdf 

Sources of resourceful materials and discussions

http://www..microlinks.org/
http://www.m4phub.org/what-is-m4p/introduction.aspx

Call to participate

Dear all readers and followers of this blog you are all invited to share and commnet on the postings. If you have any experience on the topic under discussion, please share, if you have any further specific questions on the same you can also ask and we will be at your disposal to discuss and share our experiences with you wherever you are.

M4P defined- Simple version

“Making markets work for the poor (M4P) is simply a framework used to identify, analyze and understand the systemic constraints that prevent the poor from benefiting from the market within which they operate. The assumption is, once the market constraints are removed, the market will work effectively for the benefit of the poor. This approach suggests that the poor depend on the market system for their livelihoods such that the design and effectiveness of this market system will directly impact the level of poverty amongst participants. In other words, the less efficient and competitive market is the higher level of poverty and vice versa is true”

Who is a Facilitator in M4P

In the Operational Guide for the M4P Approach, a facilitator is defined as “anaction or agent that is external to a market system but seeks to bring about change within a market system in order to achieve the public benefit objective of systemic change. A facilitator is a ‘catalyst’ that stimulates the market but does not become part of it. A facilitator should have a clear, realistic view of the future functioning of a market system.”

The document presents five factors to guide facilitation actions:

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system.

Where a facilitator intervenes in relation to functions in a market

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Who a facilitator engages with in the market system.

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the market system.

How facilitators conduct their relationships when they engage with

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market change.

How much support facilitators should provide in seeking to stimulate

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The SDC Working Paper on Facilitating Change in M4P Programmes introduces the notion that facilitation in practice also means a better integration and participation of all actors, being on the one hand governments and donor agencies as well as market actors and beneficiaries. In the setting of the strategic framework, for example, a strong involvement of the beneficiary government can lead to the development of a common vision for the future and high‐level trust. Furthermore, market actors should be involved both in the market analysis as well as the definition of sustainable outcomes.

Consistency of their actions with a ‘pathway to crowding‐in’.