In contrast to recent emphasis on simply creating an enabling environment, the ‘Making markets work for the poor’ approach emphasizes that specifically targeted interventions are needed to make markets work for the poor. This article analyses the concepts underlying the M4P approach. While sympathizing with the approach as such, it argues that it needs a clearer perspective on market failure and on poverty, as well as a sound conceptual understanding of the relationship between market, hierarchy and network. It suggests that M4P should not spend an exaggerated effort on research but rather go for participatory, pragmatic, quick-win oriented action research.

Brücker, Herbert, and Hillebrand, Wolfgang (1996) ‘Privatisierung in Entwicklungs- und Transformationsländern. Konzepte, Erfahrungen und Anforderungen an die Entwicklungszusammenarbeit’, Berlin: Deutsches Institut für Entwicklungspolitik.

DFID (2005) ‘Making Market Systems Work Better for the Poor (M4P). An introduction to the concept’, discussion paper prepared for the ADB-DFID ‘learning event’, ADB Headquarters, Manila.

Dorward, Andrew, and Kydd, Jonathan (2005) ‘Making agricultural market systems work for the poor: promoting effective, efficient and accessible co-ordination and exchange’, London (mimeo).

Eiligmann, Alfons (2005) Making Business Development Services Markets Work for the Poor, GTZ, Eschborn.

Esser, Klaus, Hillebrand, Wolfgang, Messner, Dirk, and Meyer-Stamer, Jörg (1996) Systemic Competitiveness. New Governance Patterns for Industrial Development, London: Frank Cass (GDI Book Series, No. 5).

Ferrand, David, Gibson, Alan, and Scott, Hugh (2004) ‘Making markets work for the poor. An objective and an approach for governments and development agencies’, Woodmead: Commark Trust.

Geertz, Clifford (1992) ‘The bazaar economy: information and search in peasant marketing’, in Mark Granovetter and Richard Swedberg (eds) The Sociology of Economy Life, Boulder etc.: Westview, pp. 225-232.

Granovetter, Mark (1992) ‘Economic action and social structure: the problem of embeddedness’, in Mark Granovetter and Richard Swedberg, The Sociology of Economic Life, Boulder etc.: Westview, pp. 53-81.

Hoff, Karla, and Stiglitz, Joseph (2000) ‘Modern economic theory and development’, in G. Meier and J. Stiglitz (eds) Frontiers of Development Economics: The Future in Perspective, Oxford: Oxford University Press, S. 389-459.

De Janvry, Alain, and Sadoulet, Elisabeth (2004) ‘Toward a territorial approach to rural development’, Berkeley: University of California (mimeo).

Messner, Dirk, and Meyer-Stamer, Jörg (1992) ‘Recipe for success: strong state and strong enterprises’, Development and Cooperation, No.2.

Meyer-Stamer, Jörg (2003) ‘Getting the focus of PACA right: Addressing market failure’, PACA News, No. 3, pp. 6-7.

Meyer-Stamer, Jörg (2005) ‘Systemic competitiveness revisited. Conclusions for technical assistance in private sector development’, Duisburg: mesopartner (mimeo).

Meyer-Stamer, Jörg and Wältring, Frank (2006) ‘Value Chain Analysis and “making markets work for the poor” (M4P) - Poverty reduction through value chain promotion’, GTZ, Eschborn.

Miehlbradt, Alexandra, and McVay, Mary (2005) From BDS to Making Markets Work for the Poor. The 2005 Reader, Geneva: International Labour Organization.

OECD (1992) Technology and the Economy, The Key Relationships, Paris.

Powell, W.W., (1990) ‘Neither market nor hierarchy: network forms of organization’, Research in Organizational Behaviour, Vol. 12, pp. 295-336.

Prahalad, C. K., and Hammond, Allen (2002) What Works: Serving the Poor, Profitably. A Private Sector Strategy for Global Digital Opportunity, Washington: World Resources Institute.

Pritchett, Lant, and Woolcock, Michael (2004) ‘When the solution is the problem: arraying the disarray in development’, World Development, Vol. 32, No. 2, pp. 191-212.

Rosenfeld, Stuart A. (2002) ‘Just clusters. Economic development strategies that reach more people and places’, Carrboro: Regional Technology Strategies, Inc.

Wiesenthal, Helmut (2000) ‘Markt, Organisation und Gemeinschaft als “zweitbeste” Verfahren sozialer Koordination’, in Raymund Werle and Uwe Schimank, Gesellschaftliche Komplexität und kollektive Handlungsfähigkeit, Frankfurt, New York: Campus, S. 44-73.

Brücker, Herbert, and Hillebrand, Wolfgang (1996) ‘Privatisierung in Entwicklungs- und Transformationsländern. Konzepte, Erfahrungen und Anforderungen an die Entwicklungszusammenarbeit’, Berlin: Deutsches Institut für Entwicklungspolitik.

DFID (2005) ‘Making Market Systems Work Better for the Poor (M4P). An introduction to the concept’, discussion paper prepared for the ADB-DFID ‘learning event’, ADB Headquarters, Manila.

Dorward, Andrew, and Kydd, Jonathan (2005) ‘Making agricultural market systems work for the poor: promoting effective, efficient and accessible co-ordination and exchange’, London (mimeo).

Eiligmann, Alfons (2005) Making Business Development Services Markets Work for the Poor, GTZ, Eschborn.

Esser, Klaus, Hillebrand, Wolfgang, Messner, Dirk, and Meyer-Stamer, Jörg (1996) Systemic Competitiveness. New Governance Patterns for Industrial Development, London: Frank Cass (GDI Book Series, No. 5).

Ferrand, David, Gibson, Alan, and Scott, Hugh (2004) ‘Making markets work for the poor. An objective and an approach for governments and development agencies’, Woodmead: Commark Trust.

Geertz, Clifford (1992) ‘The bazaar economy: information and search in peasant marketing’, in Mark Granovetter and Richard Swedberg (eds) The Sociology of Economy Life, Boulder etc.: Westview, pp. 225-232.

Granovetter, Mark (1992) ‘Economic action and social structure: the problem of embeddedness’, in Mark Granovetter and Richard Swedberg, The Sociology of Economic Life, Boulder etc.: Westview, pp. 53-81.

Hoff, Karla, and Stiglitz, Joseph (2000) ‘Modern economic theory and development’, in G. Meier and J. Stiglitz (eds) Frontiers of Development Economics: The Future in Perspective, Oxford: Oxford University Press, S. 389-459.

De Janvry, Alain, and Sadoulet, Elisabeth (2004) ‘Toward a territorial approach to rural development’, Berkeley: University of California (mimeo).

Messner, Dirk, and Meyer-Stamer, Jörg (1992) ‘Recipe for success: strong state and strong enterprises’, Development and Cooperation, No.2.

Meyer-Stamer, Jörg (2003) ‘Getting the focus of PACA right: Addressing market failure’, PACA News, No. 3, pp. 6-7.

Meyer-Stamer, Jörg (2005) ‘Systemic competitiveness revisited. Conclusions for technical assistance in private sector development’, Duisburg: mesopartner (mimeo).

Meyer-Stamer, Jörg and Wältring, Frank (2006) ‘Value Chain Analysis and “making markets work for the poor” (M4P) - Poverty reduction through value chain promotion’, GTZ, Eschborn.

Miehlbradt, Alexandra, and McVay, Mary (2005) From BDS to Making Markets Work for the Poor. The 2005 Reader, Geneva: International Labour Organization.

OECD (1992) Technology and the Economy, The Key Relationships, Paris.

Powell, W.W., (1990) ‘Neither market nor hierarchy: network forms of organization’, Research in Organizational Behaviour, Vol. 12, pp. 295-336.

Prahalad, C. K., and Hammond, Allen (2002) What Works: Serving the Poor, Profitably. A Private Sector Strategy for Global Digital Opportunity, Washington: World Resources Institute.

Pritchett, Lant, and Woolcock, Michael (2004) ‘When the solution is the problem: arraying the disarray in development’, World Development, Vol. 32, No. 2, pp. 191-212.

Rosenfeld, Stuart A. (2002) ‘Just clusters. Economic development strategies that reach more people and places’, Carrboro: Regional Technology Strategies, Inc.

Wiesenthal, Helmut (2000) ‘Markt, Organisation und Gemeinschaft als “zweitbeste” Verfahren sozialer Koordination’, in Raymund Werle and Uwe Schimank, Gesellschaftliche Komplexität und kollektive Handlungsfähigkeit, Frankfurt, New York: Campus, S. 44-73.

Brücker, Herbert, and Hillebrand, Wolfgang (1996) ‘Privatisierung in Entwicklungs- und Transformationsländern. Konzepte, Erfahrungen und Anforderungen an die Entwicklungszusammenarbeit’, Berlin: Deutsches Institut für Entwicklungspolitik.

DFID (2005) ‘Making Market Systems Work Better for the Poor (M4P). An introduction to the concept’, discussion paper prepared for the ADB-DFID ‘learning event’, ADB Headquarters, Manila.

Dorward, Andrew, and Kydd, Jonathan (2005) ‘Making agricultural market systems work for the poor: promoting effective, efficient and accessible co-ordination and exchange’, London (mimeo).

Eiligmann, Alfons (2005) Making Business Development Services Markets Work for the Poor, GTZ, Eschborn.

Esser, Klaus, Hillebrand, Wolfgang, Messner, Dirk, and Meyer-Stamer, Jörg (1996) Systemic Competitiveness. New Governance Patterns for Industrial Development, London: Frank Cass (GDI Book Series, No. 5).

Ferrand, David, Gibson, Alan, and Scott, Hugh (2004) ‘Making markets work for the poor. An objective and an approach for governments and development agencies’, Woodmead: Commark Trust.

Geertz, Clifford (1992) ‘The bazaar economy: information and search in peasant marketing’, in Mark Granovetter and Richard Swedberg (eds) The Sociology of Economy Life, Boulder etc.: Westview, pp. 225-232.

Granovetter, Mark (1992) ‘Economic action and social structure: the problem of embeddedness’, in Mark Granovetter and Richard Swedberg, The Sociology of Economic Life, Boulder etc.: Westview, pp. 53-81.

Hoff, Karla, and Stiglitz, Joseph (2000) ‘Modern economic theory and development’, in G. Meier and J. Stiglitz (eds) Frontiers of Development Economics: The Future in Perspective, Oxford: Oxford University Press, S. 389-459.

De Janvry, Alain, and Sadoulet, Elisabeth (2004) ‘Toward a territorial approach to rural development’, Berkeley: University of California (mimeo).

Messner, Dirk, and Meyer-Stamer, Jörg (1992) ‘Recipe for success: strong state and strong enterprises’, Development and Cooperation, No.2.

Meyer-Stamer, Jörg (2003) ‘Getting the focus of PACA right: Addressing market failure’, PACA News, No. 3, pp. 6-7.

Meyer-Stamer, Jörg (2005) ‘Systemic competitiveness revisited. Conclusions for technical assistance in private sector development’, Duisburg: mesopartner (mimeo).

Meyer-Stamer, Jörg and Wältring, Frank (2006) ‘Value Chain Analysis and “making markets work for the poor” (M4P) - Poverty reduction through value chain promotion’, GTZ, Eschborn.

Miehlbradt, Alexandra, and McVay, Mary (2005) From BDS to Making Markets Work for the Poor. The 2005 Reader, Geneva: International Labour Organization.

OECD (1992) Technology and the Economy, The Key Relationships, Paris.

Powell, W.W., (1990) ‘Neither market nor hierarchy: network forms of organization’, Research in Organizational Behaviour, Vol. 12, pp. 295-336.

Prahalad, C. K., and Hammond, Allen (2002) What Works: Serving the Poor, Profitably. A Private Sector Strategy for Global Digital Opportunity, Washington: World Resources Institute.

Pritchett, Lant, and Woolcock, Michael (2004) ‘When the solution is the problem: arraying the disarray in development’, World Development, Vol. 32, No. 2, pp. 191-212.

Rosenfeld, Stuart A. (2002) ‘Just clusters. Economic development strategies that reach more people and places’, Carrboro: Regional Technology Strategies, Inc.

Wiesenthal, Helmut (2000) ‘Markt, Organisation und Gemeinschaft als “zweitbeste” Verfahren sozialer Koordination’, in Raymund Werle and Uwe Schimank, Gesellschaftliche Komplexität und kollektive Handlungsfähigkeit, Frankfurt, New York: Campus, S. 44-73.

Brücker, Herbert, and Hillebrand, Wolfgang (1996) ‘Privatisierung in Entwicklungs- und Transformationsländern. Konzepte, Erfahrungen und Anforderungen an die Entwicklungszusammenarbeit’, Berlin: Deutsches Institut für Entwicklungspolitik.

DFID (2005) ‘Making Market Systems Work Better for the Poor (M4P). An introduction to the concept’, discussion paper prepared for the ADB-DFID ‘learning event’, ADB Headquarters, Manila.

Dorward, Andrew, and Kydd, Jonathan (2005) ‘Making agricultural market systems work for the poor: promoting effective, efficient and accessible co-ordination and exchange’, London (mimeo).

Eiligmann, Alfons (2005) Making Business Development Services Markets Work for the Poor, GTZ, Eschborn.

Esser, Klaus, Hillebrand, Wolfgang, Messner, Dirk, and Meyer-Stamer, Jörg (1996) Systemic Competitiveness. New Governance Patterns for Industrial Development, London: Frank Cass (GDI Book Series, No. 5).

Ferrand, David, Gibson, Alan, and Scott, Hugh (2004) ‘Making markets work for the poor. An objective and an approach for governments and development agencies’, Woodmead: Commark Trust.

Geertz, Clifford (1992) ‘The bazaar economy: information and search in peasant marketing’, in Mark Granovetter and Richard Swedberg (eds) The Sociology of Economy Life, Boulder etc.: Westview, pp. 225-232.

Granovetter, Mark (1992) ‘Economic action and social structure: the problem of embeddedness’, in Mark Granovetter and Richard Swedberg, The Sociology of Economic Life, Boulder etc.: Westview, pp. 53-81.

Hoff, Karla, and Stiglitz, Joseph (2000) ‘Modern economic theory and development’, in G. Meier and J. Stiglitz (eds) Frontiers of Development Economics: The Future in Perspective, Oxford: Oxford University Press, S. 389-459.

De Janvry, Alain, and Sadoulet, Elisabeth (2004) ‘Toward a territorial approach to rural development’, Berkeley: University of California (mimeo).

Messner, Dirk, and Meyer-Stamer, Jörg (1992) ‘Recipe for success: strong state and strong enterprises’, Development and Cooperation, No.2.

Meyer-Stamer, Jörg (2003) ‘Getting the focus of PACA right: Addressing market failure’, PACA News, No. 3, pp. 6-7.

Meyer-Stamer, Jörg (2005) ‘Systemic competitiveness revisited. Conclusions for technical assistance in private sector development’, Duisburg: mesopartner (mimeo).

Meyer-Stamer, Jörg and Wältring, Frank (2006) ‘Value Chain Analysis and “making markets work for the poor” (M4P) - Poverty reduction through value chain promotion’, GTZ, Eschborn.

Miehlbradt, Alexandra, and McVay, Mary (2005) From BDS to Making Markets Work for the Poor. The 2005 Reader, Geneva: International Labour Organization.

OECD (1992) Technology and the Economy, The Key Relationships, Paris.

Powell, W.W., (1990) ‘Neither market nor hierarchy: network forms of organization’, Research in Organizational Behaviour, Vol. 12, pp. 295-336.

Prahalad, C. K., and Hammond, Allen (2002) What Works: Serving the Poor, Profitably. A Private Sector Strategy for Global Digital Opportunity, Washington: World Resources Institute.

Pritchett, Lant, and Woolcock, Michael (2004) ‘When the solution is the problem: arraying the disarray in development’, World Development, Vol. 32, No. 2, pp. 191-212.

Rosenfeld, Stuart A. (2002) ‘Just clusters. Economic development strategies that reach more people and places’, Carrboro: Regional Technology Strategies, Inc.

Wiesenthal, Helmut (2000) ‘Markt, Organisation und Gemeinschaft als “zweitbeste” Verfahren sozialer Koordination’, in Raymund Werle and Uwe Schimank, Gesellschaftliche Komplexität und kollektive Handlungsfähigkeit, Frankfurt, New York: Campus, S. 44-73.