microlinks.org/MPEPseries
Bill Grant Development Alternatives
Incorporated
Marina Krivoshlykova Development Alternatives
Incorporated
Facilitation: How Much Does Context
Matter?
May 8, 2014
Overview
• Facilitating adoption and crowding-in – Bay Area (Dead Show): No facilitation necessary– Rural Cambodia (USAID MSME): A light touch does the trick
• Other market contexts: When light touch isn’t enough• Cases of intermediate & “heavy hand” engagement
– Niger Delta (Chevron PIND/MADE)– Northern Mozambique (SDC InovAgro)
• Conclusions– A framework to match your approach to your context
How Systems Change: The Adoption Process
Speed or pace by which system players adopt new ideasInnovators Early Adopters Early Majority Late Majority Laggards
FASTSLOW
Innovators: High risk fits easily in comfort zone
Early Adopters: Comfortable taking risk on new idea provided adoption preserves their status as “opinion leader” in community.
Early Majority: Waits for others to adopt/benefit to be in comfort zone.Late Majority: Skeptics w/discomfort to adopt unless majority have done so.Laggards: Tradition bound w/ high degree of discomfort to adopt new ideas.
Cambodia MSME “light touch” facilitation
• Constraints in swine VC: low productivity due to high mortality,
– poor quality inputs, lack of knowledge, low investment
• MSME facilitation strategy:– Identify early adopters - the “leading few” enterprises and
individuals – Informal interest groups to discuss common problems– Identify market actors with the right incentives and then
facilitate relationships - input suppliers provide technical training
– Client participation based on value proposition and self-selection - no subsidies used
Swine Value Chain Results
• Crowding in and results:– Leading farmers invest own funds to upgrade– Copycat behavior – the leading few copied by others– Crowding in of input suppliers: 14 provide embedded training
without project support; 85 more serve the VC– Increased productivity: reduced mortality (50% -> 10%)– Increased farm size and profitability (2 pigs -> 46)– Increased number of swine farmers (few hundred - >4000)– Stronger horizontal relationships between farmers
Context for Intervention Design
Weak Market Context
Strong Market Context
• Economic/purchasing power• Population density• Political Economy• Presence/dynamism of
interconnected systems, service providers
• Linkages to end markets• Social Cohesion
Context for Intervention Design
Weak Market Context
Strong Market Context
Very Weak Market Context
Emerging Market Context
Stronger Market context
• Economic/purchasing power• Population density• Political Economy• Presence/dynamism of
interconnected systems, service providers
• Linkages to end markets• Social Cohesion
Context for Intervention Design
External/Heavier Hand
Invest time in analysis/building relationships
Invest more money to buy down risk, elicit interest
More functions need to be addressed
Need to work on both supply and demand side
More thoughtful engagement
Internal/Lighter Touch
Understand the context
Identify potential lead partners
Stronger supporting systems
Present value Proposition
Low financial investment
More rapid engagement from other market actors – crowding in
Weak Market Context
Strong Market Context
Very Weak Market Context
Emerging Market Context
Stronger Market context
BMOUUFFA:
Organize, coordinate,
finance
HatcheryBrafin farms
Supply fingerlings
Feed companiesVital Feed, Rannan
Feed
Provide free feed
Specialist consultant
Dr Arthur Okoro
Curriculum, training supervision
12
Partnership Initiative for the Niger Delta
Partnership Initiative for Niger Delta
Demo Pond for Increased Productivity
BMO/Lead Farmer
Training sites
ConsultantTOT and
Supervision
HatcherySupply fingerlings
PINDFacilitate, TOT, M&E
Demo Pond Scale-up Model
Feed Companies
BMO/Lead Farmer
Training sites
ConsultantTOT and
Supervision
HatcherySupply fingerlings
Feed Companies Fisheries
Extension Service
Private Consultants
Financial Institutions
Smoking Kiln Manufacturers
Other Donors
PINDFacilitate, TOT, M&E
Demo Pond Scale-up Model
King Frango Hatchery
African Century (ACAM)
Outgrower scheme
Grants
Advice
Farmer Groups (~20 farmers
each)
Soya to Silo
Purchasing and Collection
Advice
Group Organization
Equipment
Advice
Service markets
Credit
Guarantee
Breeder Seed
Inputs
Equipment prototypes
ExtensionBusiness model/to
ols
Building Market for Certified Seed
Year 1 ACAM FarmersImport
NGO MFI Finance
Year 2 3 Seed Companies ACAM FarmersLocal Production
Guarantee
Year 3 1 Seed Company Farmers ACAMDirect Sales CAL
Other
Guarantee
Conclusions on Context
• Must start with a vision of market system and the exit strategy in mind
• Context: Each value chain has a unique context - no copy and paste– Without basic market conditions, facilitation may not be right
• Style of engagement depends on the range of factors– Existing infrastructure/organization– Lead firms, interconnected systems, and farmers/beneficiaries– Appetite for change – Clarity of value propositions and potential for mutual benefits
• Very weak market system context requires much more time and investment (higher threshold for failure)– Emphasis on quick numbers may crowd out sustainable systems
Thank you for joining us!
Microlinks and the MPEP Seminar Series are products of the USAID Microenterprise and Private Enterprise Promotion Office under the Feed the Future Knowledge-Driven Agricultural Development (KDAD) project.
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