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.