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• (Article) Does women’s participation in water committees affect management and water system performance in rural Vanuatu?

  01.07.2017
  Greater participation of women in water management and decision-making is expected to improve outcomes for both women and the wider community. Global evidence indicates that women’s participation in Water User Committees (WUCs) has been limited; yet their involvement in management has correlated with more effective water systems. This analysis of water inventory data from Vanuatu considers how women’s participation in WUCs affects water management and system functionality. Women represent only 16 per cent of committee membership; however, their involvement in key WUC roles was associated with more effective water management, including regular meetings and revenue collection, and improved functioning of water systems. This evidence of women’s involvement is proving useful in advocacy efforts to improve the gender balance in WUCs, and targets for female membership are being considered for inclusion in water supply legislation.

• (Article) Water point failure in sub-Saharan Africa: the value of a systems thinking approach

  01.04.2017
  Thousands of water points have been installed across sub-Saharan Africa over the past four decades; however, a number have been found to be dry/low-yielding, unsafe for human consumption, and in some cases marked with appearance, taste, and odour problems. Subsequently, many users have been unable or unwilling to use these water points and have had to revert to the use of unimproved water sources. A number of factors could be causing each of these problems, either directly or indirectly. Furthermore, these factors may be interdependent and these relationships may be marked by non-linearities, feedbacks, and time delays. Deciphering which factors need to be prioritized becomes a confusing and complex task. To help understand the impact of different interventions, this paper proposes the adoption of systems-based analysis for looking at water point failure and introduces some of the more common qualitative and quantitative analytical tools that could be used to reveal how these complexities might be managed more effectively. While the use of these tools within the WASH sector has been limited to date, they hold potential for helping to identify the most suitable remedies for water point failure. Examples of where such tools have been used in relation to water point failure are reviewed, and the extent to which each approach could be applied is examined from a practitioner perspective, recognizing the limitations arising from the differing data needs and time-consuming nature of each type of analysis.

• (Article) Fixes, failures, and facilitation: diagnosing problems and opportunities in health intervention

  01.03.2016
  This paper seeks to describe two important ‘market’ systems in health – treatment and disease transmission – in which international development actors have sought to intervene to improve health outcomes in developing countries. Donors may be seen to perform a direct role in delivering or supporting delivery of health goods and services, or to take a systemic approach that avoids any such direct role. The argument is that, while sometimes beneficial, there are shortcomings with direct interventions that predominate in health, and the nature of those benefits or shortcomings depends on four considerations related to the treatment and transmission systems: the nature of the health problem, the scale of intervention impact, the requirement for ongoing provision, and the importance of individual agency in the transaction. The paper briefly describes the systemic approach to development intervention before looking at examples from Kenya and Tanzania of innovative programming in the health sector that has begun to apply such an approach. While more evidence is required in order to explain the determinants of health intervention success or failure, it is nevertheless possible to suggest that the importance of ensuring ongoing provision and accounting for individual agency is underestimated. For ongoing health problems with an important demand-side component, a sustainable and locally responsive system for delivery of treatment and control of transmission is required.

• (Article) Turning tides: a systemic approach to intervention in the water sector

  01.03.2016
  Reliable access to clean water remains one of the key global challenges of our time. Over 10 per cent of the world’s population do not have access to clean drinking water, a figure which doubles when applied only to rural areas, more than 20 years after the end of the International Decade for Drinking Water Supply and Sanitation. This paper builds on theoretical literature examining the failure of traditional approaches to development intervention in the water sector and the potential for use of an alternative approach. This paper applies a mixed methods approach to the Making Markets Work for the Poor (M4P) diagnostic process in examining systemic constraints facing the water sector in Bugiri and Namayingo Districts of south-east Uganda. The results of a household survey, in-depth interviews, and secondary data analysis help to explain why previous models’ interventions in these areas have failed to deliver sustainable service provision. It then uses these findings to develop a model that has the potential to address constraints in such a way as to deliver lasting improvements in high-quality water services delivery. The data presented aims to add empirical weight to the theoretical case for adopting analysis-based, context-specific models of intervention, with development actors working through partners to facilitate change, rather than actively participating in a system.

• (Article) Making financial markets work healthily for the poor

  01.03.2016
  The financial sector has been an early site for the development and application of market development approaches, since the work of FinMark Trust in the early 2000s. But how does one know when a financial market is working well for the poor? Work to date has followed a clear theory of change based on increasing access to and usage of financial products through changing market systems. As poor customers use financial services, so they should be protected against shocks and enabled to climb out of poverty, in the process deepening and extending the financial system. However, as the goal of promoting financial inclusion has become mainstream policy in many countries, it has also become clearer that indicators of access and usage alone are necessary but not sufficient indicators of success. This paper seeks to highlight and present early results from an alternative application of a systemic approach which extends the linkages from access and usage to welfare changes which result, using the lens of financial health of users. This lens may have significant implications for focusing interventions and measurement in making markets work for the poor (M4P) programmes, emphasizing behaviour change over a narrow product focus only.

• (Article) Editorial: New approaches to old problems: systemic change as a unifying objective

  01.03.2016
  Systemic approaches to development have, over the last decade, gone from a niche concern to what is arguably a paradigm shift, in discourse at least. In academia, the global value chains literature has shifted focus to align behind global production networks literature in being more inclusive of the multidirectional flows and institutional dynamics of systems (Hess and Yeung, 2006; Coe et al., 2008; Bair, 2008). In practice, donors have begun to align behind systemic approaches demonstrated by USAID’s shift from Value Chains to Value Chain Systems (USAID, 2014) and the £1 bn of programmes commissioned under a systems banner over the past decade (authors’ analysis of programme documents). The systemic approach to development intervention is grounded in the works of Polanyi, Porter and New Institutional Economics, and has analytical synergies with work on complex adaptive systems (Hall and Clark, 2010; Ramalingam et al., 2008, 2014). However, this journal has played a significant role in the conceptual development of the operational side of market system approaches, and their principal articulation, Making Markets Work for the Poor (M4P) (Elliott et al., 2008; Bear et al., 2003; Hitchins et al., 2004; Taylor, 2013; Bekkers, 2008; Bear and Field, 2008; Jones, 2012; Hitchins and Jain, 2011; Johnson, 2009), codified in the Operational Guide (DfID and SDC, 2008; Springfield Centre, 2015).

• (Article) How is microfinance being regulated in Latin America?

  01.12.2015
  Microfinance regulation is a complex and constantly evolving topic, comprising many and very diverse issues which, moreover, are treated differently by legal systems. This paper suggests a novel comprehensive analysis structure that may serve as a benchmark to analyse different regulation frameworks for microfinance, based on the international guidelines provided by the Association of Supervisors of Banks of the Americas, the Basel Committee for Banking Supervision, and the Consultative Group to Assist the Poor. This structure is then used to compare and relate the regulations of 17 Latin American and Caribbean countries.

• (Article) Green microfinance strategy for entrepreneurial transformation: validating a pattern towards sustainability

  01.12.2015
  This paper illustrates a shifted microfinance modality that adopted greening principles towards sustainability. The empirical context of the research was a green microfinance programme implemented by an NGO microfinance institution at two study sites in Bangladesh. The research conceived and tested a microfinance model underpinned by ‘ecological modernization’ and ‘innovation and entrepreneurship’ theories. Field studies were carried out between January 2012 and June 2013 in order to match the ‘theoretical realm’ with the ‘observational realm’. A case study and participatory methods were the primary means of studying the modality and operations of the green microfinance strategy. The study compared the ecological outcomes of green microfinance-assisted enterprises and traditional microcredit-assisted enterprises and measured their greenhouse gas (GHG) emissions. Cool Farm Tool software was used to quantify GHGs. Comparison with a designed experiment shows that micro-enterprises employing green strategies emit less GHGs than the ones with traditional strategies. The research revealed that the microfinance-based greening interventions help to ensure ecological outcomes for micro-enterprises; thus, the combination of the embedded economic and social elements of the classic microfinance model with the new ecological elements supports sustainability.

• (Article) Fostering economic opportunities for youth in Africa: a comprehensive approach

  01.06.2015
  Youth unemployment and working poverty are large and growing development challenges. The barriers faced by young women and men in accessing sustainable livelihoods are many, so supporting their successful transition into employment and entrepreneurship requires a comprehensive and holistic approach. This article reflects on the evolving approach of The MasterCard Foundation-supported programmes in sub-Saharan Africa, within the broader context of wider research and evidence. It suggests that combining training in a range of market-relevant skills, with access to job and business opportunities and appropriate financial services, can foster economic opportunities for youth. It emphasizes the importance of recognizing the role of mixed livelihoods in contexts where formal jobs are lacking, and of supporting youth engagement in agriculture and agribusiness as viable livelihood opportunities. And it highlights that the challenge can only be adequately addressed via the meaningful engagement of a range of stakeholders, including the private sector, government and civil society, and, especially, youth themselves.

• (Article) Reviews

  01.03.2015
  

• (Article) Microcredit: from hope to scepticism to modest hope

  01.03.2015
  After its introduction in the late 1980s and its fast expansion thereafter modern microfinance, and specifically microcredit, raised the hope that it could combine access to (semi-) formal credit for the poor with financial sustainability of the new microfinance institutions, and that it would contribute to increased micro-entrepreneurial activity, consumer welfare, and the empowerment of women. More recently scepticism about the operation of microfinance institutions and their impact has arisen. Based on the literature, we discuss the possibility of combining outreach to the poor with financial sustainability, microfinance crises, and the findings of recent impact studies. Our conclusion is that microfinance is not a panacea for development, but that it is a tool poor households can use in their fight for survival.

• (Article) Improving the food security of the extremely poor by linking them to markets

  01.03.2015
  This article draws lessons from ACDI/VOCA, CARE, and World Vision-implemented food security programmes to answer three questions: how can push/pull activities better integrate the extremely poor into 1) output and 2) input markets? And 3) how can push/pull programme activities help improve intra-household gender dynamics and financial decision-making to improve the food and nutrition security of household members? In output markets the lessons include: 1) that market development and savings group interventions can be implemented by the same officer; and 2) projects should move early to have a private sector provider take over the village savings and loan associations. While there are constraints in the input markets, there are also push strategies for increasing production, including direct delivery of inputs to farmers, vouchers to increase demand, and Farmer Business Group development to increase collective input buying and pull strategies such as linkages with buyers for the selling of products and tapering down subsidies. Intrahousehold gender equitable decision-making can positively impact the food security of the household members. Mixed gender Village Economic and Social Associations are efficient in tackling intra-household decision-making. This allows the provision of flexible and efficient financial services as well as an opportunity to engage husbands and wives in gender-related dialogues.

• (Article) Empowerment in action: savings groups improving community water, sanitation, and hygiene services

  01.03.2015
  With 748 million people worldwide lacking adequate water, sanitation, and hygiene (WASH) services (WHO/UNICEF, 2014), increased access to these services is a significant global challenge. Savings groups (SGs) combined with social empowerment strategies can be used to engage communities meaningfully in addressing development challenges such as access to clean water and a functioning latrine. As participants in PCI's SG initiative entitled Women Empowered (WE), women have independently identified WASH needs in their communities and have organized and carried out collective actions to improve their situation. This paper highlights results from a qualitative study in which PCI looked at SGs within two international development programmes in urban and rural Guatemala. The paper explores key opportunities in implementing an integrated, social and economic empowerment strategy and how changes in self-efficacy and leadership can lead to positive community impact. PCI found that participation by women in rural and urban Women Empowered SGs contributes to increased decision-making abilities and leadership, as well as increases in collaborative, collective actions at the community-level. Moreover, when one integrates SGs as a component of larger, multi-intervention development programmes, one can create a facilitative environment which encourages SGs to participate as active development partners rather than passive development recipients.

• (Article) Bringing together push and pull through local entrepreneurs

  01.03.2015
  Despite significant efforts in agriculture market development, millions of smallholder farmers remain isolated from markets, due to remoteness and low farm productivity. Push/pull approaches to market development suggest a dual strategy for bringing smallholders into agricultural markets: 1) reduce producer vulnerability and build capacities, based on market requirements; and 2) facilitate relationships for producers to deal in consistent, growing markets. While simple in concept and effective as an approach, the execution of push/pull is complex. In particular, it is difficult to connect push (producer capacity) and pull (market) elements, resulting in unsustainable market linkages. When applying a push/pull approach in areas where the Aga Khan Foundation (AKF) works, AKF has noted that local entrepreneurs can link push and pull effectively and for the long term. This case study reviews how entrepreneurs link push and pull in AKF's market development programme in southern Tanzania. It outlines learning on how local entrepreneurs bridge gaps between producers and firms, taking the case of remote farmers accessing inputs (seed, fertilizer, implements, and pesticide) from larger suppliers. The paper describes the challenge of linking push and pull, outlines AKF's experience in southern Tanzania, and follows with points for discussion on incorporating local entrepreneurs into push/pull programmes.

• (Article) Making markets work for women: how push and pull strategies can support women's economic empowerment

  01.03.2015
  In many countries, the inability of women to negotiate pervasive social, legal, and cultural barriers inhibits their participation in the productive sphere, particularly their entry into market systems as producers and entrepreneurs. The paper draws on case studies from projects implemented by the Mennonite Economic Development Associates (MEDA) in Ghana, the Entrepreneurship and Community Development Institute (ECDI) in Pakistan, and Zardozi in Afghanistan to show how practitioners can maximize ‘push’ and ‘pull’ strategies to increase the scale, impact, and sustainability of women's economic empowerment programming. Despite differences in country contexts, value chains, and sectors, the authors illustrate the importance of ‘push’ strategies in helping women to overcome the persistent gender-based discrimination that undermines women's understanding of markets, access to networks, self-confidence, and business success. They also show how deliberate ‘pull’ strategies that use commercially based incentives can increase women's incomes and business sustainability. The authors conclude that a blend of push and pull strategies will provide the most reach and impact for women's economic empowerment projects, ensuring income growth and gender equality dividends for families and communities.

• (Article) Crossfire: ‘The potential of data for development is overstated. The negative impacts on vulnerable populations outweigh the benefits at this point’

  01.03.2015
  ‘Big Data’ can be useful in the battles to solve development problems such as climate change and Ebola pandemics, but they may also be leaked and used for purposes that the subjects of the data would not authorize. Sophie Romana and Emmanuel Letouzé debate whether the advent of Big Data presents enormous opportunities for good, or invites calls for a greater degree of caution.

• (Article) Guest editorial: strategies for integrating the most vulnerable populations into market systems, from the SEEP conference

  01.03.2015
  

• (Article) At the nexus of investment and development: lessons from a 60-year experiment in SME impact investing

  01.12.2014
  Mennonite Economic Development Associates (MEDA) was launched as an investment club in 1953 when a group of North American Mennonite business people joined together to support the development of communities in Paraguay, Uruguay, and Argentina. With their business background, this group of early ‘impact investors’ determined that they would provide loans to small to medium enterprises (SME) in order to catalyse sustainable economic growth. They offered the loans as high-risk venture capital and mitigated the risks with the provision of business coaching and technical assistance. Since those early days, MEDA and the SME investment fund managers which it has co-founded (Microvest and Sarona Asset Management) have continued to make impactful investments and to work towards a common development goal, ‘to help people help themselves’ (Fretz, 1978 : 19). This paper presents a case study of the 60-year ‘MEDA experiment’, (Fretz, 1978), describes specific activities and innovations, and identifies MEDA's learnings that have emerged from this SME investment experience.

• (Article) How commercial banks can offer financial products to SMEs for investing in energy efficiency

  01.09.2014
  Energy consumption can account for up to 50 per cent of the total business costs for small and medium-sized enterprises (SMEs). Investments targeting energy savings provide a quick way for a small business to gain a cost advantage. Well-designed energy efficiency projects often show positive cash flows relatively quickly and allow for the projects themselves to pay back investments (and loans). Globally, there is a significant untapped potential to reduce energy costs. Demand-side market failures relate to lack of information. Supply-side market failures relate to limited access to finance for energy efficiency investments. Sustainable energy finance facilities (SEFFs) address this financing gap and provide access to technical advice for SMEs and banks. The success of SEFFs has demonstrated that commercial banks can bridge the sustainable energy financing gap by: 1) understanding the opportunity to improve their clients' cost structures using the right communication approach; 2) leveraging existing information from their own loan portfolio combined with publicly available information on the energy performance of technologies; 3) ensuring dedicated staff have project finance skills and that contracts are suitably tailored; 4) gaining access to energy expertise; and 5) having access to a list of high energy performance technologies.

• (Article) New approaches to MSME lending: challenging traditional credit assessment models in electronic cash-flow environments

  01.09.2014
  Micro, small, and medium-sized enterprises (MSMEs) play a critical role in economic growth and wage employment in both developed and developing economies, yet significant obstacles remain in unlocking the potential of these businesses - especially as regards access to credit. A confluence of three new market trends is reshaping longstanding efforts to overcome this dilemma: 1) increasing access to real-time, 'electronically verifiable' cash-flows; 2) the mining of cash-flow data to reveal insights into repayment likelihood beyond that discoverable in traditional credit analysis; and 3) the adoption of financial technology and certain principles of microfinance lending - most specifically uncollateralized lending and frequent incremental repayment - to meet the funding needs of MSMEs. This paper explores the interrelationship of these trends and contends that, together, they enable suitably empowered financial institutions to originate and manage short-term, unsecured loans to formal MSMEs on a profitable and scalable basis.