Market Systems In Intro Making Sense: sustainability, scale, facilitation, systemic change…?
THE SPRINGFIELD CENTRE MAKING MARKETS WORK 01 MAKING CENTS Common terms but uncommon meanings? Sustainability Scale Facilitation Systemic (Institutions) Define Prioritise Actions Results Direct Delivery Approach: Systems Approach: 1) Empowerment - resources 1) Institutions - analysis 2) Institutions - groups 2) Sustainability - functions 3) Scale – donor funds 3) Empowerment - form 4) Sustainability - assets 4) Scale – incentives Dependency but Attribution? Leverage but Contribution?
THE SPRINGFIELD CENTRE MAKING MARKETS WORK 01 MAKING CENTS Example: information constraints (Uganda) Project B: 1999-2007; ~US$1.2m Project A: 1999--; US$2.5m/3 yrs; 2 projects est. av. $0.5m/yr Increase info for rural MSEs Establish sustainable, effective info Goal “ Info is a long term strategic public for rural MSEs via the mass media good ” Outreach Peak of 7-8m listeners 7m regular listeners Initially 10 stations but 25 stations with independent MSE Sustainability dissemination cut as funding cut to programmes; emerging new $50k/yr. Other activities remain programmes & support services: no donor funded donor funding Outreach Project A Project B Time
THE SPRINGFIELD CENTRE MAKING MARKETS WORK 01 MAKING CENTS Example: What explains the difference? Make commercial media work better Provide information to MSEs Rationale for MSEs in rural areas Root causes: understand structure, Symptoms: what info do the poor Understanding practices, incentives of system – why need? not pro-poor? Unclear: “ A long term strategic Explicit: commercial, based on Sustainability public good ”, but no assessment of ownership and incentives, govt capacity or incentives appropriate for local context Direct actions and finance: Facilitate and catalyse: Action info collection develop understanding, networks analysis and credibility programme production influence, demonstrate, link purchase airtime TA to stations and other players coordinate work through local players no finance to radio stations
THE SPRINGFIELD CENTRE MAKING MARKETS WORK 01 MAKING CENTS Sustainability 1. Meeting the needs of the present without compromising the needs of future generations 2. The capability of a market system to continue to adapt and provide the means by which poor women and men access social and economic benefits, beyond the period of intervention 3. There is no agreed definition of the concept and perhaps there is no need for one
THE SPRINGFIELD CENTRE MAKING MARKETS WORK 01 MAKING CENTS Example: Community based tourism Not thinking systemically? SUPPORTING FUNCTIONS Finance Maintenance Mediation & construction Negotiation Infrastructure Booking Marketing Information CORE Local Wider Community tourism tourism enterprises industry industry Laws Regulations Informal rules & Standards norms RULES
THE SPRINGFIELD CENTRE MAKING MARKETS WORK 01 MAKING CENTS Example: Community based tourism Not taking Function / rule sustainability Who does? Who pays seriously! Business training/advice NGO / PS Donor/PS internship Advocacy NGO Donor / members Finance NGO Donor Private sector (PS) Donor Construction & maintenance Joint venture mediation NGO / PS Donor Booking NGO Donor Marketing and branding NGO / PS Donor Information NGO Donor Standards NGO Donor Market research NGO / PS Donor Legal services PS Donor Conflict arbitration NGO Donor Regional planning NGO/PS/Govt Donor / Govt Advice to government NGO Donor
THE SPRINGFIELD CENTRE MAKING MARKETS WORK 01 MAKING CENTS Capability: the central concept in sustainability In order for markets to operate in a sustainable manner we need answers to four broad questions Sustainable capability 2 1 Who are the What needs to main players? be done? 3 Who does? 4 Who pays? PLAYERS FUNCTIONS
THE SPRINGFIELD CENTRE MAKING MARKETS WORK 01 MAKING CENTS Scale 1. To efficiently increase the socioeconomic impact from a small to a large scale of coverage. 2. Change that benefits a significant number of poor and low-income people, in relation to a given context. 3. Using successful small-scale projects as a basis for effecting large-scale changes.
THE SPRINGFIELD CENTRE MAKING MARKETS WORK 01 MAKING CENTS Scaling Up: breadth and depth aspects Market not working Market working for the poor better for the poor Period of temporary intervention Entry Trial and pilot Crowding-in Exit Attitudes Capacity & practices Relationships & alignment Incentives & ownership Multi-faceted intervention actions to promote system change
THE SPRINGFIELD CENTRE MAKING MARKETS WORK 01 MAKING CENTS Example: crowding-in (breadth) Business information via the commercial media, Uganda (SEMA) Source: Anderson (2004)
THE SPRINGFIELD CENTRE MAKING MARKETS WORK 01 MAKING CENTS Example: crowding-in (depth) Sources of Communications $ information Services advisers Government Quality Profile / info publicity Production Radio Specialist input $ $ companies Airtime Services broadcasters providers Advertising Listeners $ Listener agencies $ statistics Info on Sponsors / Media research $ media habits Listeners advertisers companies Improved Media programming consumption data Business information via the commercial media, Uganda (SEMA); Anderson (2004)
THE SPRINGFIELD CENTRE MAKING MARKETS WORK 01 MAKING CENTS Facilitation 1. An intervention approach that focuses on addressing systemic constraints by incentivising and enabling market actors to perform their functions more effectively. 2. The act of making something easier. 3. A process in which a neutral person helps a group work together more effectively.
THE SPRINGFIELD CENTRE MAKING MARKETS WORK 01 MAKING CENTS What are we facilitating? Poverty reduction Pro-poor growth or improved access Conventional, Market system direct responses change miss this link... Intervention
THE SPRINGFIELD CENTRE MAKING MARKETS WORK 01 MAKING CENTS Facilitation: sustainability first… External to the system Part of the system Intervention should bring about sustained change in Development intervention market system... Temporary, catalytic ... And avoid becoming part of the system... ... Developing the system – not distorting it! Market system change A change in the way supporting functions and rules perform that ultimately improves the poor’s terms of participation within the system, so that the system becomes more efficient and inclusive.
THE SPRINGFIELD CENTRE MAKING MARKETS WORK 01 MAKING CENTS Facilitation: from sustainability to scale… External to the system Part of the system Development intervention Temporary, catalytic Leveraging a change process which results in crowding in Crowding in: objective of facilitation Leverage: principle of intervention Catalyse new or different alignment of Use scarce resources for maximum effect market players and functions, improve a Targeted programme inputs to stimulate system’s performance market players to react more substantially Breadth: outreach, inclusion (ownership, investment etc)... Depth: supporting functions, rules ... and continue to act without programme support
THE SPRINGFIELD CENTRE MAKING MARKETS WORK 01 MAKING CENTS It isn’t “what” you do… Inform Mediate Educate Convene Analyse Train Persuade Link Demonstrate Mentor Finance
THE SPRINGFIELD CENTRE MAKING MARKETS WORK 01 MAKING CENTS It’s the “way” that you do it…! ! Cautious about Shaped by diagnosis direct finance Focus of support? Powerful, distorting Prevailing norms? effects Pilot-review-adjust Start ‘softer’ first Measurement Is leverage, crowding in being Active promotion of Transactional stimulated? crowding in Use leverage as a Breadth and depth gauge of don’t just happen appropriateness and automatically commitment
THE SPRINGFIELD CENTRE MAKING MARKETS WORK 01 MAKING CENTS Systemic Change 1. 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 2. The process of transforming a system from one paradigm to another through the application of systems theory and systems thinking 3. Shifts in patterns (similarities and differences) of system relationships, boundaries, focus, timing, events and behaviours over time and space
THE SPRINGFIELD CENTRE MAKING MARKETS WORK 01 MAKING CENTS Systemic Change Framework Non-competing Initial partner(s) players adjust their has ‘invested’ in the own practices in pro-poor change reaction to the ADAPT RESPOND adopted presence of the pro- independently of poor change programme (supporting functions support and rules) EXPAND ADOPT Partner(s) takes up a pro-poor change Similar or competing that is viable and players copy the pro- has concrete plans poor change or add Piloting phase Crowding-in phase to continue it in the diversity by offering future variants of it
THE SPRINGFIELD CENTRE MAKING MARKETS WORK 01 MAKING CENTS Example: assessing systemic change Regulation Coordination Knowledge ADAPT RESPOND Advertising Sources Services Research Take up by other EXPAND ADOPT stations CBS Piloting phase Crowding-in phase Business information via the commercial media, Uganda (SEMA); Anderson (2004)
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