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M4P-Making Market works for the poor

It is a way to improve understanding of the livelihoods of poor


people via analyzing the relationship between the main factors
which are influencing on poor peoples livelihoods
It will help on assessing the current activities in order to plan
new development activities.

Framework: Helps to understand the complexities of poverty

The SL framework places people, particularly rural poor people, at the centre of a web of
inter-related influences that affect how these people create a livelihood for themselves
and their households.
Resources andLivelihood assetsthat they have access to use.
These can include:
* Health Facilities & Access to Education
* Natural Resources & Relevant Technologies
* Financial support/ Sources of Credit
* Participation Social Safety Networks
* Skills, Knowledge & Capacity

Networks of social support.


Access to these assets is strongly influenced by
theirvulnerability context,

which takes:
Account of trends (Economic, Political,
Technological),
Shocks (Natural disasters, Epidemics, Civil strife)
Seasonality (Prices, Production, Employment
opportunities)

Set ofprinciples:
*Will guide for addressing & overcoming the poverty
livelihood strategies:
* People are the main concern-Not the resources
what they used.
* SLA is used to identify the challenges &
opportunities faced by poor people
* Build the strategy to serve the poor on addressed challenges
with taking the advantage of opportunities.
* The framework is means of stimulating thought
and analysis which needs to be adapted and
elaborated depending on the situation.
(Neither a model which incorporate all the key elements of
people's livelihoods, nor a universal solution)

It is an overarching approach to poverty reduction that the donors


have been supporting Poor are dependent on market systems for
their livelihoods
The

changing of those market systems to work more effectively and


sustainably for the poor will automatically improve their livelihoods and
consequently reduce the poverty.
More

accessible and competitive markets enable poor people to find


their own way out of poverty by providing more real choices and
opportunities.

Supply & Demand


Core Function of Market System
To provide a space for transaction of good or service
Efficiency of the Market System
It is shaped by Policy & advocacy with a range of supporting functions.
This will determine :
The Behavior
Practices
Relationship
Relevant Information
Knowledge
Incentive System
The diverse range of active players in the market are
Public
Private
Formal
Informal
The M4P provides guidance to:
Understanding of the poor in market systems
Bring the effective change

Moving towards the understanding of market systems and facilitation of systemic changes has a
range of implications and opens opportunities for implementation. The essentials are:
1.

Facilitating change processes


* Playing the role as facilitator (Temporary Role)
* Playing a role as catalyst Demand to focus on degree of flexibility and add value to
change process
* Being as bridge between Public Policy Goals and Private Sector Commercial Motivation
* Trust, Confidence, Believe, vision and skills.
* Demands skills sets beyond technical nature
2.

Working with development partners to make systems work


* Lead to change the entire market systems -sustainably with impact
* Those elements of a market system that it can change.
* Working systemically (Strategically & coherently, Coordinating & harmonizing efforts

with development partners)


* Trend offers an opportunity for smaller bi-lateral agencies to lead the change process.

3. Address rural poverty through working in interconnected markets

When poverty is mostly entrenched in rural areas, the growing demands for rural produces exist in
urban areas and

the most of the service solutions for the rural areas also lies in urban or peri-urban

areas.
* Connecting the urban service providers with rural producers will improve the prime agricultural based
productivity and subsequently will increase incomes of most rural poor.
* Building better marketing infrastructure between rural production and urban centers is very crucial for
improving the access to market & improve incomes of poor producers.
* Further urban business partnership will result the backward investment in their rural supply chain.
* Ultimately, working for the rural poor, might not mean working solely with the rural poor.
A systematic approach supports markets that are interconnected - working to deliver change for
target populations in one region or sector, might well require working in different regions or sectors.

4. Measuring results and impacts


* Good monitoring and management processes are critical for ensuring efficiency
* Good impact assessment methodologies are critical for measuring how effective SDC is in what it
does.
* Measuring system level change is, by nature, be able to demonstrate long term poverty reduction
effects.

Be people - centred

SLA begins by analyzing people's livelihoods and how they


change over time. The people themselves actively participate
throughout the project cycle.

Be holistic

SLA acknowledges that people adopt many strategies to secure


their livelihoods, and that many actors are involved; for example
the private sector, ministries, community-based organizations
and international organizations.

Be dynamic

SLA seeks to understand the dynamic nature of livelihoods and


what influences them.

Build on strengths

SLA builds on people's perceived strengths and opportunities


rather than focusing on their problems and needs. It supports
existing livelihood strategies.

Promote micro-macro
links

SLA examines the influence of policies and institutions on


livelihood options and highlights the need for policies to be
informed by insights from the local level and by the priorities of
the poor.

Encourage broad
partnerships

SLA counts on broad partnerships drawing on both the public


and private sectors.

Aim for sustainability

Sustainability is important if poverty reduction is to be lasting

1. Mix Grant AND Investment


Utilize and Blend both Grant and Investment Capital, with;
* The start up cost should be covered by the Investment Capital.
* The grant capital will be used in the procurement of machineries / on some tangible goods.
2 Engage the Private Sector Commercially
* Engage not just in Philanthropy but as a Social Enterprise
3. Think Beyond Credit and utilize the Three Pillars of Enterprise, which are:
* Access to Capital;
* Business Development Services and
* An Enabling Environment
4. Aggregate Supply and Demand
* Aggregate supply to leverage the benefits of economies-of-scale for poor communities and
small and micro entrepreneurs.
* Aggregate demand to create economies of scale thereby providing substantial buying and
consumption power for the low income earners.
5. Formalize Ownership
* Formal recognition of the assets & equity through legal registration
* Legally recognized documents are transferable& can be used to secure credit lines e.g. share
capital, land title etc.
6. Start with the Market and work backwards
* Use a demand-driven approach versus supply-led and work backwards from the market
demands in order to identify points of leverage for opportunities
7. Adhere to Business Basics
*People respond to incentives, so Integrate management and business skills training
* Develop a business plan , use standards business benchmarks and financial statements to
measure profitability But localize for success

Factors:
1. It seeks to provide a way of thinking about the livelihoods of poor
people (Will stimulate debate & reflection about the many factors that
affect livelihoods)
2. The way they interact and their relative importance within a particular
setting.
3 This should help in identifying more effective ways to support
livelihoods & reduce poverty.
As the conventional social dynamics are being the cancer for society, It
makes the still harder to make the market work for the grass-root level
powerless citizens.