microlinks.org/MPEPseries
Bill Grant
Development Alternatives
Incorporated
Marina Krivoshlykova
Development Alternatives
Incorporated
May 8, 2014
Facilitation: How Much
Does Context Matter?
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 a Change Process Starts
How Systems Change:
The Adoption Process
Speed or pace by which system players adopt new ideas
Innovators
Early Adopters
Early Majority
Late Majority
Laggards
SLOW
FAST
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 selfselection - 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
Context for Intervention Design
Strong
Market
Context
Weak
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
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
Strong
Market
Context
Context for Intervention Design
Weak
Market
Context
Very Weak
Market Context
Emerging
Market Context
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
Stronger
Market context
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
Strong
Market
Context
Partnership Initiative for the Niger Delta
Partnership Initiative for the Niger Delta
Demo Pond for Increased Productivity
BMO
UUFFA:
Organize,
coordinate,
finance
Specialist
consultant
Dr Arthur Okoro
Curriculum, training
supervision
Partnership
Initiative for
Niger Delta
Feed companies
Vital Feed, Rannan
Feed
Provide free feed
Hatchery
Brafin farms
Supply fingerlings
Demo Pond Scale-up Model
PIND
Facilitate,
TOT, M&E
Feed
Companies
Demo Pond Scale-up Model
BMO/Lead Farmer
Smoking Kiln
Manufacturers
Training sites
Financial
Institutions
PIND
Facilitate,
TOT, M&E
Other
Donors
Feed
Companies
Fisheries
Extension
Service
Hatchery
Consultant
Supply fingerlings
TOT and
Supervision
Private
Consultants
Outgrower scheme
King Frango
Hatchery
Service markets
Grants
Advice
African Century
(ACAM)
Guarantee
Advice
Soya to Silo
Purchasing and
Collection
Advice
Farmer
Groups
(~20 farmers
each)
Credit
Inputs
Extension
Group
Organization
Equipment
Breeder
Seed
Equipment
Business
model/to
ols
prototypes
Building Market for Certified Seed
NGO MFI
Finance
Year 1
Import
ACAM
Farmers
Year 2
3 Seed Companies
Local Production
ACAM
Farmers
Guarantee
Year 3
Direct Sales
1 Seed Company
Farmers
Guarantee
ACAM
CAL
Other
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
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Bill Grant:
William_grant@dai.com
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Marina_Krivoshlykova@dai.c
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