Making markets work for the poor: rationale and practice
‘Making markets work for the poor’ (M4P) is a generic approach to developing market systems that benefit poor people. Interest in M4P is increasing but there are still many misconceptions over what it is and why it is important. This article sets out to address these issues. The foundation for M4P lies in real world changes, new conceptual thinking and learning from the wider experience of development agencies. More recently, the positive experience of M4P in practice - and the results generated - are a strong argument for the approach. From an operational perspective, M4P presents a framework to define market systems, emphasizes the facilitation role of agencies and offers guidance in each element of the implementation process. Although there are a number of caveats associated with it, M4P has considerable potential to bring about pro-poor systemic change.Anderson, G. and Hitchins, R. (2007) Expanding the Poor's Access to Business Information and Voice through FM Radio in Uganda, Making Markets Work for the Poor Case Studies series, Employment and Income Division, SDC, Berne.
Augustinus, C. and Deininger, K. (2005) Innovations in Land Tenure, Reforms and Administration in Africa, paper presented at UNDP-International Land Coalition conference, Land Rights and African Development: From Knowledge to Action, Nairobi, 31 October - 3 November.
Besley, T. and Cord, L. J. (eds) (2007) Delivering on the Promise of Pro-poor Growth. Insights and Lessons from Country Experiences, World Bank Publications, Washington DC.
Committee of Donor Agencies for Small Enterprise Development (2001) Business Development Services for Small Enterprises: Guiding Principles for Donor Intervention, www.ilo.org/public/english/employment/ent/sed/bds/donor/member/ilo.htm www.ilo.org/public/english/employment/ent/sed/bds/donor/member/ilo.htm
de Soto, H. (2000) The mystery of capital. Why capitalism triumphs in the west and fails everywhere else, Basic Books, New York.
DFID (2000) Making Markets Work for the Poor: A Framework Paper, DFID, London.
DFID and SDC (2008) The Making Markets Work for the Poor (M4P) Approach, SDC, Berne.
Dorward, A., Kydd, J., Morrison, J., Poulton, C., and Urey, I. (2002) Critical Linkages: Livelihoods, Markets and Institutions, paper presented at the seminar on Supporting Institutions, Evolving Livelihoods, Bradford Centre for International Development, Bradford.
Gibson, A. (2006) Developing Financial Services Markets for the Poor; FinMark in South Africa, Making Markets Work for the Poor Case Studies Series, Employment and Income Division, SDC, Berne.
Gibson, A., Scott, H. and Ferrand, D. (2004) Making Markets Work for the Poor. An Objective and an Approach for Governments and Development Agencies, The ComMark Trust, South Africa.
Honohan, P. and Beck, T. (2007) Making Finance Work for Africa, The World Bank, Washington DC.
Joffe, S. and Jones, J. (2003) Stimulating Private Investment and Market Development for Agriculture: New Approaches and Experience, Oxford Policy Management, Oxford.
Littlefield, E. and Rosenberg, R. (2004) ‘Microfinance and the poor’, Finance and Development 41 (2).
North, D. C. (1990) Institutions, Institutional Change and Economic Performance, Cambridge University Press, Cambridge.
Palmade, V. (2005) Industry Level Analysis: The Way to Identify the Binding Constraints to Economic Growth, World Bank Policy Research Working Paper 3551, Washington DC.
Ravallion M. (2001) ‘Growth, inequality and poverty: Looking beyond the averages’, World Development 29 (11): 1803-1815.
Sen, A. (2001) Development as freedom, Oxford University Press.
Anderson, G. and Hitchins, R. (2007) Expanding the Poor's Access to Business Information and Voice through FM Radio in Uganda, Making Markets Work for the Poor Case Studies series, Employment and Income Division, SDC, Berne.
Augustinus, C. and Deininger, K. (2005) Innovations in Land Tenure, Reforms and Administration in Africa, paper presented at UNDP-International Land Coalition conference, Land Rights and African Development: From Knowledge to Action, Nairobi, 31 October - 3 November.
Besley, T. and Cord, L. J. (eds) (2007) Delivering on the Promise of Pro-poor Growth. Insights and Lessons from Country Experiences, World Bank Publications, Washington DC.
Committee of Donor Agencies for Small Enterprise Development (2001) Business Development Services for Small Enterprises: Guiding Principles for Donor Intervention, www.ilo.org/public/english/employment/ent/sed/bds/donor/member/ilo.htm www.ilo.org/public/english/employment/ent/sed/bds/donor/member/ilo.htm
de Soto, H. (2000) The mystery of capital. Why capitalism triumphs in the west and fails everywhere else, Basic Books, New York.
DFID (2000) Making Markets Work for the Poor: A Framework Paper, DFID, London.
DFID and SDC (2008) The Making Markets Work for the Poor (M4P) Approach, SDC, Berne.
Dorward, A., Kydd, J., Morrison, J., Poulton, C., and Urey, I. (2002) Critical Linkages: Livelihoods, Markets and Institutions, paper presented at the seminar on Supporting Institutions, Evolving Livelihoods, Bradford Centre for International Development, Bradford.
Gibson, A. (2006) Developing Financial Services Markets for the Poor; FinMark in South Africa, Making Markets Work for the Poor Case Studies Series, Employment and Income Division, SDC, Berne.
Gibson, A., Scott, H. and Ferrand, D. (2004) Making Markets Work for the Poor. An Objective and an Approach for Governments and Development Agencies, The ComMark Trust, South Africa.
Honohan, P. and Beck, T. (2007) Making Finance Work for Africa, The World Bank, Washington DC.
Joffe, S. and Jones, J. (2003) Stimulating Private Investment and Market Development for Agriculture: New Approaches and Experience, Oxford Policy Management, Oxford.
Littlefield, E. and Rosenberg, R. (2004) ‘Microfinance and the poor’, Finance and Development 41 (2).
North, D. C. (1990) Institutions, Institutional Change and Economic Performance, Cambridge University Press, Cambridge.
Palmade, V. (2005) Industry Level Analysis: The Way to Identify the Binding Constraints to Economic Growth, World Bank Policy Research Working Paper 3551, Washington DC.
Ravallion M. (2001) ‘Growth, inequality and poverty: Looking beyond the averages’, World Development 29 (11): 1803-1815.
Sen, A. (2001) Development as freedom, Oxford University Press.
Anderson, G. and Hitchins, R. (2007) Expanding the Poor's Access to Business Information and Voice through FM Radio in Uganda, Making Markets Work for the Poor Case Studies series, Employment and Income Division, SDC, Berne.
Augustinus, C. and Deininger, K. (2005) Innovations in Land Tenure, Reforms and Administration in Africa, paper presented at UNDP-International Land Coalition conference, Land Rights and African Development: From Knowledge to Action, Nairobi, 31 October - 3 November.
Besley, T. and Cord, L. J. (eds) (2007) Delivering on the Promise of Pro-poor Growth. Insights and Lessons from Country Experiences, World Bank Publications, Washington DC.
Committee of Donor Agencies for Small Enterprise Development (2001) Business Development Services for Small Enterprises: Guiding Principles for Donor Intervention, www.ilo.org/public/english/employment/ent/sed/bds/donor/member/ilo.htm www.ilo.org/public/english/employment/ent/sed/bds/donor/member/ilo.htm
de Soto, H. (2000) The mystery of capital. Why capitalism triumphs in the west and fails everywhere else, Basic Books, New York.
DFID (2000) Making Markets Work for the Poor: A Framework Paper, DFID, London.
DFID and SDC (2008) The Making Markets Work for the Poor (M4P) Approach, SDC, Berne.
Dorward, A., Kydd, J., Morrison, J., Poulton, C., and Urey, I. (2002) Critical Linkages: Livelihoods, Markets and Institutions, paper presented at the seminar on Supporting Institutions, Evolving Livelihoods, Bradford Centre for International Development, Bradford.
Gibson, A. (2006) Developing Financial Services Markets for the Poor; FinMark in South Africa, Making Markets Work for the Poor Case Studies Series, Employment and Income Division, SDC, Berne.
Gibson, A., Scott, H. and Ferrand, D. (2004) Making Markets Work for the Poor. An Objective and an Approach for Governments and Development Agencies, The ComMark Trust, South Africa.
Honohan, P. and Beck, T. (2007) Making Finance Work for Africa, The World Bank, Washington DC.
Joffe, S. and Jones, J. (2003) Stimulating Private Investment and Market Development for Agriculture: New Approaches and Experience, Oxford Policy Management, Oxford.
Littlefield, E. and Rosenberg, R. (2004) ‘Microfinance and the poor’, Finance and Development 41 (2).
North, D. C. (1990) Institutions, Institutional Change and Economic Performance, Cambridge University Press, Cambridge.
Palmade, V. (2005) Industry Level Analysis: The Way to Identify the Binding Constraints to Economic Growth, World Bank Policy Research Working Paper 3551, Washington DC.
Ravallion M. (2001) ‘Growth, inequality and poverty: Looking beyond the averages’, World Development 29 (11): 1803-1815.
Sen, A. (2001) Development as freedom, Oxford University Press.
Anderson, G. and Hitchins, R. (2007) Expanding the Poor's Access to Business Information and Voice through FM Radio in Uganda, Making Markets Work for the Poor Case Studies series, Employment and Income Division, SDC, Berne.
Augustinus, C. and Deininger, K. (2005) Innovations in Land Tenure, Reforms and Administration in Africa, paper presented at UNDP-International Land Coalition conference, Land Rights and African Development: From Knowledge to Action, Nairobi, 31 October - 3 November.
Besley, T. and Cord, L. J. (eds) (2007) Delivering on the Promise of Pro-poor Growth. Insights and Lessons from Country Experiences, World Bank Publications, Washington DC.
Committee of Donor Agencies for Small Enterprise Development (2001) Business Development Services for Small Enterprises: Guiding Principles for Donor Intervention, www.ilo.org/public/english/employment/ent/sed/bds/donor/member/ilo.htm www.ilo.org/public/english/employment/ent/sed/bds/donor/member/ilo.htm
de Soto, H. (2000) The mystery of capital. Why capitalism triumphs in the west and fails everywhere else, Basic Books, New York.
DFID (2000) Making Markets Work for the Poor: A Framework Paper, DFID, London.
DFID and SDC (2008) The Making Markets Work for the Poor (M4P) Approach, SDC, Berne.
Dorward, A., Kydd, J., Morrison, J., Poulton, C., and Urey, I. (2002) Critical Linkages: Livelihoods, Markets and Institutions, paper presented at the seminar on Supporting Institutions, Evolving Livelihoods, Bradford Centre for International Development, Bradford.
Gibson, A. (2006) Developing Financial Services Markets for the Poor; FinMark in South Africa, Making Markets Work for the Poor Case Studies Series, Employment and Income Division, SDC, Berne.
Gibson, A., Scott, H. and Ferrand, D. (2004) Making Markets Work for the Poor. An Objective and an Approach for Governments and Development Agencies, The ComMark Trust, South Africa.
Honohan, P. and Beck, T. (2007) Making Finance Work for Africa, The World Bank, Washington DC.
Joffe, S. and Jones, J. (2003) Stimulating Private Investment and Market Development for Agriculture: New Approaches and Experience, Oxford Policy Management, Oxford.
Littlefield, E. and Rosenberg, R. (2004) ‘Microfinance and the poor’, Finance and Development 41 (2).
North, D. C. (1990) Institutions, Institutional Change and Economic Performance, Cambridge University Press, Cambridge.
Palmade, V. (2005) Industry Level Analysis: The Way to Identify the Binding Constraints to Economic Growth, World Bank Policy Research Working Paper 3551, Washington DC.
Ravallion M. (2001) ‘Growth, inequality and poverty: Looking beyond the averages’, World Development 29 (11): 1803-1815.
Sen, A. (2001) Development as freedom, Oxford University Press.
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