Making Market Systems Work Better for the Poor (M4P): An Introduction to the Concept (2005)

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Making Market Systems Work Better for the Poor

The MMW4P^[1] approach attempts to incorporate lessons from both state and market failure, and focuses on adjusting the structure and characteristics of markets to increase participation by and benefit to the poor. There are three main analytic components: i) poverty and livelihood strategy analysis; ii) market analysis; and iii) institutional and political economy change analysis. The approach draws on poverty reports; market studies; ‘Doing Business’ and Investment Climate studies; trade, production and price data; data from value chain operations; and key changes in markets affecting the poor.

One strength is that it emphasizes potential of markets rather than undermining them, while still recognizing that they are imperfect. The paper includes a good outline of mechanisms through which markets can help the poor and also how markets might work against the poor. There is also a good diagram of the components of a functioning market and explanation of dynamic markets.

Notes

1. ↑ Making Market Systems Work Better for the Poor(M4P): An Introduction to the Concept,2005

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