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’.

M4P Diversity

As most people confuse M4P as an approach that can only be applied in agriculture sector development, in reality M4P its such a flexible approach that can be mended to fit and serve in developing market sytems of other economic activities like crafts, edible oil milling, fishing, poultry keeping, telecommunication, radio etc.
In essence M4P facilitation ensures enhanced collaboration between actors where as new way of business ensures each market actor plays his/her role effectively and efficiently and create about a win win situation in the whole market syste. Many development organizations, in poverty reduction programs ensure that the poor who are part of the market system as producers, consumers, workers also benefit from the improved market operation mechanisms. In any settings,  M4P facilitation targets at the improved business practicess and relationship that results into more benefits interms of volume, incomes, crowding in (scale) that are sustainable.

Case example: In improving edible oil marketing of sunflower, small and medium sunflower oil millers in the central corridor were trained in branding and labeling of  their produce. Having provided the training, facilitators supported a group of millers to design a common brand through which all the subscribing  millers can use to labl their produce. The outcome of the labeled/branded oil was increased market penetration due to traceability and eased orderiing mechanism. The outcomes at enterprise went further at replication and crowding in, inturn the demand for sunflower from small farmers increased and sales volume of sunflower seeds also increased. A sustainalble impact is the improved business practices of small millers and emergence of many other millers who started labelling their oil.

In M4P facilitation, it may only cost a facilitator a simple linkage, short training, demonstration and testing to stir things up.

An example of market system set up that M4P facilitators use to analyse selected markets to intervene.

Linking farmers to knowledge

In the RLDC supported intervention rice farmers in six districts were reached by the trainers from MKINDO Farmers Training Centre who demostrated and introduced simple rice farming tools. This knolwedge was available with the training centre but there was no mechanism for spreading out to farmers. The trainers identified local fabricators, trained them on making such tools and conducted farm demonstration to rice farmers who will be accessing them from the local fabricators. Through this kind of facilitation, rice farmers will acquire new simple technologies locally and local fabricators who have a commercial incentives will serve as suppliers. "Scale and Sustainabilty"

M4P defined

M4P is an abbrevaition for the term "Markets for the Poor" or as commonly used "Making Markets work for the Poor". It also a synonym to Market Development. By definition M4P is an approach to poverty reduction that focuses on developing market systems that benefit the poor people by offering capacities and opportunities to enhannce their lives. M4P facilitation builds on a detailed understanding of market systems and a clear vision of the future, allowing agencies to address identified constraints and bring about large scale and sustainable change.
M4P is a contemporay approcach to development, that many agencies and development practictioners are struggling to learn and adopt. it is a flexible and dynamic approcach that can be adopted and customized in various socio-economic settings. M4P is an approach that promotes systemic change, change that goes beyong individual players and that is relevant to the wider environment, affecting many. M4P is about scale and sustainability.

Case Example: M4P  identifies the role in the market system of actors like petty rice trader at local mill, anlyses their constraints, opportunities and leverages. Through facilitation, M4P places a vision of a better business practices of these traders that will improve their business competitiveness in the market. The expected outcomes will be increase volume of sales and profit, formalized business, enhanced capacity for advocacy, access to finance from FI. on the impact this may result into demand for more paddy from small rice farmers and better market access for the same. If facilitation was  done appropriately these changes will continue even after the intervention by the M4P facilitators in the area.