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Market System Development MSD
Market Systems Development (MSD) – also known as Making Market Work for the Poor (M4P) or Inclusive Systems Approach – is an overarching approach being used mostly in private and financial sector development as well as labour markets including vocational skills development. Moreover, MSD is increasingly applied to other thematic fields like governance, water and infrastructure, environment, health, policy and science. The approach provides a set of principles, frameworks, and good practices that guide the analysis of market systems and development interventions, which bring about socially inclusive and pro-poor change. Drawing from adaptive management principles, the approach can help new or ongoing activities become more effective by strategically thinking through questions related to sustainability, scale and impact. SDC’s partners in MSD The SDC closely collaborates with the following international platforms on the topic of PSD: The DCED is a forum for learning about the most effective ways to create economic opportunities for the poor, in line with the SDGs, and based on practical experience in PSD. The DCED website is the leading source of knowledge about PSD. The BEAM Exchange is a specialist platform for knowledge exchange and learning about MSD approaches, under the roof of DCED. BEAM means Building Effective and Accessible Markets. The aim of BEAM Exchange is to support and encourage good practice, by providing a gateway to know-how for policy advisors, team leaders, practitioners, researchers and consultants.
Factsheet and Manual: A pragmatic approach to assessing system change (2020, co-funded by SDC) see links to the Beam Exchange Factsheet, Manual and Webinar to the right. An introduction to market systems development (a video by Beam Exchange, 2017).
This short, jargon-free video explains what the market systems approach is all about: how it differs from conventional aid, and how it can be used to help create widespread and lasting improvements in incomes, access to jobs, products and services for millions of people living in poverty. Find the English, French and Spanish version below. Type something
Normative Documents
SDC
[1.1 MB]
This document is a guidance paper for SDC head office and cooperation office staff. This is the updated version 2022 in English and French. The Spanish version is from 2017. The guidance document provides advice for SDC staff on how to manage projects using a market systems approach. Advice is provided for developing the initial project idea and formal entry proposal, the tender process, the inception phase, credit proposal and implementation phase, steering and monitoring, evaluation and preparation of a following phase. Ce document est un guide d'orientation interne destiné au personnel du siège de la DDC et des bureaux de coopération. Ce guide fournit des conseils au personnel de la DDC sur la manière de gérer des projets utilisant une approche des systèmes de marché. Des conseils sont fournis sur les activités du personnel autour du développement de l'idée initiale du projet et de la proposition d'entrée en matière, du processus d'appel d'offres, de la phase de démarrage, de la proposition de crédit et de la phase de mise en œuvre, du pilotage et du suivi, de l'évaluation et de la préparation de la phase suivante. There is also a short video with explanation and overview of the guidance paper - see video in English or see video in French Further, there is a brief for decision-makers and poster that can be printed and displayed in your office to make people aware of the guidance
SDC
[1.5 MB]
This brief is specifically written for decision-makers who approve MSD projects – either entry proposals with opening credits or credits for main phases. It will guide you through the different phases of MSD projects and how they are linked to the SDC Project Cycle Management (PCM) – with a focus on phases relevant for approval. Click here for the updated guidance for managing MSD projects (version 2022).
Working Aids
SDC
[2.8 MB]
Private sector engagement (PSE) is a priority for the Swiss Agency for Development and Cooperation (SDC), as highlighted in the federal dispatch 2021-2024. Within the universe of potential private sector partners, Social and Impact Enterprises (SIEs) – those enterprises with an intention to solve a social or environmental problem – are a natural ally for actors like SDC to achieve development outcomes. There are several reasons that make working with SIEs particularly interesting. There is an explicit alignment of vision and commitment to address a development challenge, when compared to other private sector partners. SIEs strive to be profitable and are sustainable beyond SDC support, when compared to not-for profit partners. They can therefore achieve high impact in a cost-effective way for SDC, since support is only supplemental and short-term. They can also promote highly innovative ways of achieving SDGs which can stimulate learning at SDC. That said, PSE overall and SDC working with SIEs in particular, is a relatively new way of achieving development outcomes. Challenges include: questions on how to find the right partner, the ideal governance for a partnership, the best financial instruments to support the SIE, and impact management. Partnerships with SIEs require careful design and agile implementation management. This guidance paper, the first of its kind, highlights some of these emerging issues. While the insights presented here do not constitute conclusive guidance on how to successfully engage SIEs, we discuss noteworthy findings and potential solutions
SDC
[94 kB]
Brief introduction to the Market Systems Development (MSD) Approach (2-pager, 2020, SDC)
SDC
[313 kB]
This Glossary includes the most important MSD/M4P terminologies and definitions.
SDC
[2.6 MB]
The operational guide for the making markets work for the poor (M4P) approach (2nd edition 2015, co-funded by SDC)
Reference Indicators and Measurement
SDC, DFAT, MoFA
This BEAM short paper (19 pages) explores how to develop a system change strategy and intervention plans that lay the groundwork for system change assessment, including how to set system boundaries and how to identify the system changes a programme aims to catalyse; and assess system changes using both (i) an intervention lens focused on changes introduced by specific interventions, and (ii) a helicopter lens that provides a whole system view.
A BEAM webinar where the four authors provided an overview and answered burning questions was attended by 166 practitioners. After that, the authors published a more depth version "A pragmatic approach to assessing system change, how to put it into practice" (91-pages) . It explains in detail how to implement this pragmatic approach with worked examples and useful tips.
Case Studies
SDC, Inovagro, Cowi, Dai
[1.9 MB]
Innovations for Agribusiness (InovAgro) is a Swiss Agency for Development and Cooperation (SDC) funded project which uses a market systems development (MSD) approach to improve the incomes for poor women and men small scale farmers in three provinces in Northern Mozambique (Nampula, Zambezia, and Cabo Delgado). The project is implemented by a consortium of DAI Europe and COWI. This case study captures InovAgro’s experience on facilitating the development of the market for the sales of certified seeds by private sector seed companies and agro-dealers to smallholder farmers (SHF) between 2014 and 2020.
>> for a short 2- page summary explaining all the nuts and bolts
SDC, InovAgro
[456 kB]
Innovation for Agribusiness (InovAgro) is in the final year of implementation. Along three phases, spanning 10 years, the Project has facilitated the development of the agriculture markets by innovating, testing, and adapting market systems business models which increase the inclusion of, and benefit, to male and female smallholder farmers. The successful models are then scaled-up. This case study captures the experience of InovAgro’s work on creating a better enabling environment for the seed industry to increase its competitiveness for the benefit of SHF in Mozambique. As such its impact will extend beyond the project’s limited geographic area, reaching the entire country. The case study is based on a comprehensive review of project documentation, interviews with key stakeholders, and the author’s first-hand experience.
HELVETAS Swiss Intercooperation
[1 MB]
This case study was done less than two years after the project started supporting key market actors in the IT sector. It was therefore unlikely to already demonstrate the full eventual impact of the IT firms on jobs for young women and men. Two leading actors of the IT sector in BiH – HUB 387 and Bit Alliance – were used as entry to stimulate broader changes in the sector. The MarketMakers project were able to bring about greater awareness of IT as a career choice and an increasing number of students choosing IT education; improved public-private dialogue for changing perceptions of the IT sector in Government and the growth of trust between the Government and the private sector; and trust and interaction among IT private firms where entrepreneurship and innovation are valued, encouraging small companies and start-ups to grow more aggressively.
Swisscontact
[9.3 MB]
This publication provides a glimpse into how Katalyst is realising systemic change by making market systems more inclusive. As a result of these systemic changes, private companies are changing their business models as they recognise the vast potential of including small farmers in their customer base, the public sector is fulfilling its role of supporting the poor more effectively by creating conducive enabling environments, and small farmers are ultimately empowered to increase their incomes and improve their livelihoods
Katalyst
[46.7 MB]
This case study is part of a series of case studies which illustrate the potential of the market development approach and the challenges faced in its implementation. It presents Katalyst’s experience. This case study is part of a series of case studies which illustrate the potential of the market development approach and the challenges faced in its implementation
Katalyst
[1.5 MB]
This case study is part of a series of case studies which illustrate the potential of the market development approach and the challenges faced in its implementation. This case study shares Katalyst’s and its partners experience in developing a training system for healthcare professionals in Bangladesh from 2005 to 2010. It demonstrates that the conventional thinking about the role of the public and private sectors in healthcare needs to be revisited, concluding that poverty reduction can be achieved more effectively if both work together. It also shows that the market development approach can be applied successfully in 'non-traditional' sectors.
[2.9 MB]
This case study is part of a series of case studies which illustrate the potential of the market development approach and the challenges faced in its implementation. This case study shares Katalyst’s experience from 2005 to 2011 in working with relevant public and private sector players to make ICT work for farmers in Bangladesh. It demonstrates how innovative service offers can be delivered to farmers and what actions were taken to instill a greater degree of systemic change in this sector.
Springfield Centre; SDC
[2.4 MB]
This case study illustrates how an M4P project is going about changing the livestock system in one region of Georgia to the benefit of small-scale farmers. It focuses on one area of intervention, cattle breeding, and tells the story of how the project staff found the right players to work with, how they persuaded them to adapt their roles, how they helped them do so and how they are continuing to work to ensure the modest success achieved so far is likely to endure long after the project finishes.
SDC
[459 kB]
This case study is part of a comparison of the M4P framework and the Sustainable Livelihood Approach. It reviews and positions the two dominant frameworks or approaches with each other and describes a possible series of steps to further examine each with a view to enhancing them as frameworks for analysis and action.
SDC; Springfield Centre
[258 kB]
The case study evaluates the development of a
sustainable rural dairy farming intervention funded by the Swiss Agency for
Development and Cooperation (SDC) and implemented by the Strategic Development
agency (SDA), a local NGO in Armenia. It illustrates how it can be practically
applied in a dynamic way to bring about meaningful and sustainable
positive change within markets.
Katalyst
[4.7 MB]
This case study on rural marketing explains how to unlock economic potentials and how to create economic incentives to change the way entrepreneurs work. The study tells how to reach many of the entrepreneurs in an efficient way while asking if it really addresses the structural problems or just symptoms.
Springfield Centre
[203 kB]
This case is based on two SDC initiatives using Making Markets Work for the Poor (M4P) as a uniting framework against which to position, learn and improve the performance of the employment and income related portfolios of SDC regional programmes. The process was piloted in 2004 and reviewed and benchmarked a wide range of projects across Kosovo, Albania, Macedonia, Serbia and Bosnia.
Springfield Centre
[170 kB]
This case study outlines the experience of the FinMark Trust, an organisation formed in 2002 to address the problem of access to financial services. FinMark saw the solution to improved access as engaging better functioning financial markets – with “making (financial) markets work for the poor” (M4P) – and this has been the focus of their work. Their initial experience indicates considerable success, with potentially major implications for financial services interventions globally.
Springfield Centre
[183 kB]
This case study is one of a series exploring the application of the M4P approach to different fields of private sector development. A consideration of business environment issues features prominently in M4P approaches, where an understanding of how the “rules of the game” influence whether market are pro-poor or not is the starting point for intervention, .it draws on a range of small-scale or pilot activities to improve the business environment in Indonesia and Russia.
Katalyst
[283 kB]
This case study is part of a series of case studies which illustrate the potential of the market development approach and the challenges faced in its implementation. This case study looks at a variety of market development interventions undertaken by Katalyst in Maize, its impact on market actors, their business models and the maize farmers. Katalyst and Winrock International had a partnership whereby Winrock’s knowhow on maize was combined with Katalyst’s market development approach. Issues related to such partnerships are also brought up in this case.
Katalyst
[15.5 MB]
This document deals with the experience of KATALYST and its partner, Syngenta, an input supplier, in seeking to redress very low production levels of vegetables in the Rangpur region. It highlights the importance of knowledge and information in improving agriculture performance - and the opportunity presented by this – and poses challenges for agencies in how to intervene effectively to stimulate more effective and large-scale market development.
Evaluations and Reviews
IED - SDC
[5.3 MB]
An independent evaluation assessing how SDC-financed MSD projects in agriculture were implemented from 2013 to 2019. SDC funded 275 projects in this period that had major elements of MSD in agriculture. Overall the evaluators conclude that MSD was demanding on project teams and the Swiss Cooperation Offices (SCOs). A high level of skill was required to find market failures and define what to do. Ensuring actions needed to stimulate the private sector without distorting the market whilst avoiding the project becoming trapped as a permanent actor. Over several phases, projects built up their skill base. They achieved this either by training their own staff or by building local NGO capacity. This gave rise to a slow start, but it paid dividends over the years with considerable skills being built up within the projects. This report includes the management response. Link to the factsheet.
Relevant News
17 October 2022
You can now find the new MSD tool library on BEAM Exchange's website. The library offers: - Easy access for MSD practitioners at all levels of expertise
It provides an entry point for individuals who are new to the MSD approach. It amplifies useful tools and facilitates dialogue by sharing contact details of tool authors. - Tool classification and categorisation
It helps users find the tool they need quickly using filters that search by tool type, theme and programme area. - Regular updates including the latest innovations
The library will be kept up to date through stocktaking and curation, approximately every two years.
08 April 2022
Did you know that there is a new revision of the popular ‘Managing MSD Projects’ guidance, published by the IED Network? The guidance document provides advice for SDC staff on how to manage projects using a market systems approach. Advice is provided for developing the initial project idea and formal entry proposal, the tender process, the inception phase, credit proposal and implementation phase, steering and monitoring, evaluation and preparation of a following phase. You can find the new version of the guidance on the IED Shareweb in English and French Watch a short video with explanations and overview of the guidance paper - in English or in French Further, there is a brief for decision-makers and a poster that can be printed and displayed in your office to make people aware of the guidance. For more information on MSD, please check out this Shareweb page
Relevant Events
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20 Nov 2023
Bangkok, Thailand
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14 Nov 2023
Cape Town, South Africa
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05 Nov 2023
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05 Nov 2023
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12 Sep 2023
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03 Jul 2023
Hotel Grenzfall, Berlin, Germany
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13 Jun 2023
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31 Oct 2022
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31 Oct 2022
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12 Sep 2022
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02 Jun 2022
WebEx
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09 May 2022
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04 Apr 2022
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03 Mar 2022
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16 Feb 2022
20 Nov 2023 in Bangkok, Thailand
20 November to 05 December 2023
20 November to 05 December 2023
in Bangkok, Thailand
20 November in Bangkok, Thailand
This 10-day residential Training Programme focuses on how to make development more effective, achieving greater impact, inclusiveness, scale and sustainability. It explores the strategic and practical implications for organisations as they adopt the market systems development approach. The programme is internationally-recognised and builds on nearly two decades of the Springfield Centre’s experience in offering training on the market systems development (MSD) approach, training over 2,500 people from more than 100 countries. For more information and registration see here.
14 Nov 2023 in Cape Town, South Africa
14 November to 16 November 2023
14 November to 16 November 2023
in Cape Town, South Africa
14 November in Cape Town, South Africa
Get ready to be inspired, equipped, and connected like never before at Market Systems Symposium 2023! Engage with industry-leading experts in Market Systems Development from around the world as we explore cutting-edge research, innovative strategies, and real-world application in this dynamic and engaging forum. Given the significant impact of climate change, conflict and food insecurity on our world today, the core themes which we will be discussing, debating, collaborating, and innovating around at MSS2023 are: Climate Change & Adaptation; Conflict-Affected Contexts; and Food Security and Food Systems. Considerations which will be focused on across each of these core themes are: Household and Market Systems Resilience; Financial Market Systems; Migration & Urbanization; Water & Energy Systems; Trade Cross-cutting topics which will be brought in across sessions are: Social Inclusion; Adaptive Management; Engagement with the Public & Private Sector; Employment & Livelihoods; Monitoring, Evaluation & Learning (MEL); Emerging Technologies Disruptors.
More information see here.
05 Nov 2023
05 November to 04 December 2023
05 November to 04 December 2023
05 November
Development programmes working in complex environments need to understand the context they work in, monitor changes, and adapt their work accordingly. This sounds simple but is challenging in practice. What should we be monitoring, measuring and evaluating? What is ‘good enough’ measurement, and how do we attribute change to our programme? And – hardest of all – how do you get decision-makers to change their minds? DevLearn’s online training course on monitoring, evaluation, and learning (MEL) for inclusive economic growth answers these questions and more, using the DCED Standard for Results Measurement, a practical framework used by over a hundred programmes worldwide. Click here for more information and registration.
05 Nov 2023
05 November to 02 December 2023
05 November to 02 December 2023
05 November
This DevLearn online training course will introduce the core concepts of market systems development and provide simple, practical tips to enable you to implement them in your context. The course is offered entirely online in November 2023. It will take approximately four days to complete but can be spread across multiple weeks and completed at any time that suits you. The course can easily be combined alongside a normal working week. For more information, please see here.
12 Sep 2023
12 September 2023
12 September 2023
12 September
Do you want to learn more about how important the inception phase of an MSD programme is for successful implementation? BEAM Exchange is inviting you to a webinar where they will share practical tools and techniques that are relevant to other resource-constrained, donor-distorted settings. Register for the webinar
03 Jul 2023 in Hotel Grenzfall, Berlin, Germany
03 July to 11 July 2023
03 July to 11 July 2023
in Hotel Grenzfall, Berlin, Germany
03 July in Hotel Grenzfall, Berlin, Germany
The Summer Academy is a five-day residential international event on economic development. - At the Summer Academy, participants are introduced to Mesopartner’s approach to Local Economic Development (LED), which brings together experiences and instruments from Local and Regional Economic Development (LRED), Bottom-Up Industrial Policy, Innovation Systems, Complexity Thinking and Market System Development.
- Due to Mesopartner's diverse work globally, participants will benefit from different perspectives from the trainers and the international participants offer unique exposure to multi-cultural perspectives and experience in development economics.
- The Mesopartner Summer Academy will deepen your understanding of systemic economic change processes and enable you to better guide your organisation or project to shape that process.
- Learn how to offer the knowledge that local actors need to address the challenge of innovation and change in a systemic and complexity-sensitive way.
- Learn how to use innovative tools based on local and regional economic development, cluster and value chain promotion, market systems development, strengthening of local innovation systems and related topics.
- Learn how to facilitate development processes and give policy advice.
Learn more and also read what others say about the Summer Academy.
13 Jun 2023
13 June 2023
13 June 2023
13 June
Do you want to learn more about how to create systemic impact where there is no system? Using lessons learned from the SDC Private Sector Partnerships in Health (PSPH) program in Somalia and Somaliland, BEAM Exchange is inviting you to a webinar where they will share practical tools and techniques that are relevant to other resource-constrained, donor-distorted settings. Register for the webinar
31 Oct 2022
31 October to 25 November 2022
31 October to 25 November 2022
31 October
Market systems development programmes support people living in poverty helping to increase their income, gain employment, and purchase basic goods. The approach can achieve sustainable impact at scale, but faces many practical challenges. This DevLearn online training course will introduce the core concepts of market systems development and provide simple, practical tips to enable you to implement them in your context. Our course is offered entirely online between the 31st October and 25th November, and can easily be combined alongside a normal working week. For more information, click here.
31 Oct 2022
31 October to 25 November 2022
31 October to 25 November 2022
31 October
Market systems development programmes working in complex environments need to understand the context they work in, monitor changes, and adapt their work accordingly. This sounds simple but is challenging in practice. DevLearn’s online training course shows you how to measure and use results using the DCED Standard for Results Measurement, a practical framework used by over a hundred programmes worldwide. Our course lasts four weeks and is next offered in November 2022. It will take approximately one day's work a week. For more information click here
12 Sep 2022
12 September to 09 December 2022
12 September to 09 December 2022
12 September
The course, offered by Agora Global, is aimed at anyone involved in designing, procuring, managing or advising a market systems development programme from a donor perspective. It is designed to help donors play their part in effective programme design and delivery to lead to more sustainable impact for more people. Over 150 funders from 20 bilateral and multilateral donors have taken the course so far including SDC, ADA, FCDO, USAID, Japan International Cooperation Agency (JICA), Sida, DFAT, The World Bank, FMO and more.
For more information, click here.
02 Jun 2022 in WebEx
02 June 2022
02 June 2022
in WebEx
02 June in WebEx
The SDC is excited to invite you to a series of webinars on Vocational Education and Training (VET) system development over the course of this year. The webinars will give you guidance on this topic and present existing and new resources that are particularly useful in this context, by sharing implementation experiences and facilitating peer exchange. This joint learning journey started with a kick-off webinar on 2 June 2022 in English. The kick-off webinar focused on the new SDC priorities in the area of Vocational Skills Development (VSD) and recaps definitions and the different typologies of VSD projects based on examples. You can find the presentation here as well as the recording of the webinar below.
09 May 2022
09 May to 19 May 2022
09 May to 19 May 2022
09 May
MSS2022 Online provides a rich online experience that allows knowledgeable market systems practitioners to dialogue, debate, dive into industry issues, and identify collaborative actions. Innovative platforms allow active participation that accommodates different schedules and time zones. Additionally, MSS2022 Online offers multiple formats and a central online hub, easily accessible via web browser or mobile/tablet app, to coordinate all dialogues, debates, and collaborative actions. A series of carefully curated, short sessions will keep participants focused and productive, and easily able to opt in/out, contribute, learn, and network among peers from their home or office.
04 Apr 2022
04 April to 29 April 2022
04 April to 29 April 2022
04 April
Market systems development programmes support people living in poverty to increase their income, gain employment, and purchase basic goods. The approach can achieve sustainable impact at scale, but faces many practical challenges. This DevLearn online training course will introduce the core concepts of market systems development and provide simple, practical tips to enable you to implement them in your context. The course is offered entirely online and can easily be combined alongside a normal working week. More information here.
03 Mar 2022
03 March 2022
03 March 2022
03 March
This webinar by BEAM Exchange will provide real-world examples and tips from programmes that have started to assess system change. The focus will be on getting started using manageable steps that build on programmes’ existing results measurement systems, rather than aiming for a ‘perfect’ assessment of system change. Find all information about the Webinar here.
16 Feb 2022
16 February to 07 March 2022
16 February to 07 March 2022
16 February
Relevant Links
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BEAM Exchange
2020
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BEAM Exchange
2020
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2018
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