Value chains are embedded within complex market systems in which different actors directly and indirectly impact on the performance of the value chain. These systems include ‘supporting functions’, such as training, information and financial services, as well as ‘rules’, like standards, norms, and laws, that influence the ways in which value chain actors operate. Therefore, improving the performance of the value chain and achieving pro-poor outcomes means looking at the entire market system, and designing and implementing interventions that will address the core constraints that affect the system as a whole.
Executing successful private sector development interventions entails several key components, including:
- Leveraging existing actor structures to tackle market failures by changing the way markets work, so that poor people are included in the benefits of growth and economic development.
- Assuming a facilitator’s role and not becoming a part of the system itself. Agencies that undertake market systems development interventions are temporary outsiders who attempt to stimulate lasting change in the ways that permanent actors go about their business. To create this lasting change, the agencies should not provide direct goods or services to enterprises, but should change the incentives within the market system to prompt existing actors to implement the desired change.
- This course will teach you how to do this. It will provide an introduction to sector and value chain selection, market systems analysis, and value chain development, and will focus on pilot intervention design and implementation.