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Systemic Approach
Poverty is a multidimensional phenomenon. Lack of access to basic services like education, water or electricity, social or political exclusion, and high vulnerability are some dimensions of poverty. Related to them, and often lying at their core, is the economic dimension of being un- or underemployed and not having enough income. Although it is not possible to rank poverty dimensions according to their importance, insufficient income, i.e. income poverty, is one of the most severe factors. History has shown that economic empowerment leads empowerment in other dimensions, too – and vice versa. There is a clear relationship between income and non-income dimensions of poverty, and reducing the former helps to escape the vicious circle. Consequently, income creation is addressed not only in “pure” IED SDC projects and programmes, but as well in e.g. climate change, food security or rural development interventions. In order to reduce insufficient incomes, we need inclusive growth, i.e. the creation of net additional income for SDC’s target groups. Or, in other terms, we promote systemic thinking in line with the logic of inclusion/exclusion in programme implementation. The Market Frontier (systemic logic of inclusion / exclusion) Market participation requires that individuals or groups have a combination of assets that allow them to engage in and benefit from market-based opportunities. These assets include physical and financial capital, knowledge and capacities, and connections that enable transactions. The ‘market frontier’ can be thought of as the threshold where a person has sufficient capital, capacity and connections, which together enable them to take advantage of market-based opportunities. If that threshold is not reached, livelihoods will depend on non-market based support, such as social protection, or subsistence livelihoods. The systemic approach has not only relevance for market system development: It is considered a general approach for the whole range of inclusive econmic development programmes (PSD, FSD and VSD). It is partly used even in other thematic domains of the SDC (e.g. water and sanitation). The systemic approach puts strong emphasis on achieving sustainable results at scale through a thorough social systems analysis, a facilitative role of the project as well as adaptive management principles. The systemic approach contributes to LNOB and the systemic logic of inclusion versus exclusion.
For more see BEAM exchange on the right side.
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
[2.4 MB]
The document brings together knowledge on Local Economic Development (LED) with current experiences of delivering LED within SDC. It aims to support design, implementation and steering of LED initiatives within SDC. After getting some initial understanding of what LED is this guidance will help you to deepen your understanding of the implications of LED for programme management within SDC’s Project Cycle Management (PCM).
SDC
[2.9 MB]
This introduction paper and guidance is made for Vocational Education and Training (VET) practitioners, donors and implementing partners in development cooperation who want to better understand and analyse how VET systems function and how their different elements interrelate. It shall therefore… - introduce those working in VET projects and institutions into VET systems thinking and provide them with a basic understanding and analytical dimensions; - improve the quality of the Swiss Agency for Development and Cooperation (SDC)’s VET interventions based on a better understanding of VET systems; - provide input for SDC’s position in the discussion about systemic approaches to VET systems development and reform.
Updated version April 2022
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.
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.
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
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
29 May 2017
Increasing use of market systems approaches in international development has led to a growing demand for skilled practitioners and high-performing teams. However, the current system of training and building capacity falls short of meeting the needs of programmes. This constraint threatens to undermine the effectiveness and credibility of the approach. This paper is structured into three main parts: (i) the problem and the context; (ii) an analysis of possible solutions and (iii) recommendations. Find this policy brief of the BEAM Exchange here.
Relevant Events
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03 Jul 2023
Hotel Grenzfall, Berlin, Germany
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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
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.
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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