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What is M4P?M4P is a development project

management approach which

works with the public and private

sectors in order to reduce poverty.

It aims to improve market systems

and bring greater impact and

lasng changes to the lives of large

numbers of poor people.

THE PROJECTAgri-business for Trade Compeveness Project (ATC-P),

branded as Katalyst, is a market development project that aimsto contribute to increasing the income of poor men and women

in rural areas. The project does this by making service, input and

product markets more accessible for the rural populaon, which

in turn increases the compeveness and income of farmers and

small enterprises.

Katalyst is co-funded by the Swiss Agency for Development and

Cooperaon (SDC), the UK Department for Internaonal

Development (DFID), and the Danish Internaonal Development

Agency (Danida). It is implemented by Swisscontact and GIZ

Internaonal Services under the umbrella of the Ministry ofCommerce, Bangladesh.

Katalyst follows the Making Markets Work for the Poor (M4P) approach, which works indirectly, focusing on

achieving systemic change in order to provide new opportunies for poor people. This is done by facilitang

changes in the behaviour of market players, such as private companies and public and private associaons, to

engage poor people into their businesses as suppliers, distributors, retailers and/or employees. This creates

more income generang opportunies for poor people. Katalyst idenfies and priorises the constraints and

opportunies within the sectors in its porolio in order to facilitate pro-poor income growth. This benefits bothcompanies and poor people, with companies making higher profits and poor people increasing their income,

thus contribung to the reducon of poverty. Figure 1.

In contrast, convenonal projects support poor people by directly providing them with services, inputs and

products. While such a direct approach can achieve quick results, it does not always have a lasng impact.

These projects are also someme unable to reach a large number of poor people, and their effects on markets

can oen be distoronary.

How do

we work?

Figure 1: Different impact logic: Katalystand convenonal projects

Katalyst-marketsystem change

addressed

Convenonalprojects market

system change neqlected

IntervenonIntervenon

Wider

system

(causes) is

bypassed

Poverty

reducon

Improved

access or growth

Market systemchange

Poverty

reducon

Improved

access or growth

Market systemchange

Photo:WahidAdnan/Drik

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Our achievements so far

in Phase 1 and 2

How do

we selecta sector?

The focus areas of Phase 3 are the consolidaon of its

previous agricultural sector work, deepening and widening

the projects pro-poor impact, and capitalising the projects

knowledge and experience.

The new porolio consists of three core sectors (Vegetable,

Farmed Fish and Maize) and three cross sectors (Womens

Economic Empowerment, Local Agribusiness Networks, and

Informaon Channels), three key topics (Inputs, Farm

Pracce, and Markeng) and an overarching theme

(Capitalisaon, which aims to share the projects learnings

among relevant stakeholders so as to encourage others to

take up pro-poor, facilitave approaches). Figure 2.

Focus areas and

the portfolio

Katalyst selects sectors that:

are important for poor people (sectors which involve

large numbers of poor people as producers,

employees, and/or consumers);

are compeve and have the potenal for inclusive

growth (sectors which have the potenal to improve

the producvity and income of poor people);

have the scope to change (the market system in the

sectors has the potenal to change if underlying

problems are addressed).

Phase 1 and Phase 2 of Katalyst were implemented from 2002-2013.

During Phase 1, implemented from 2002 to mid-2007, Katalyst helped to create around 200,000 jobs, and benefited700,000 farmers and small businesses, by increasing their access to beer services, technology and inputs.

During Phase 2, which was implemented from 2008 to mid-2013, Katalyst reached out and contributed to the increased

compeveness of 2.37 million farmers and small businesses, and increased their income by USD320 million.

Phase 3

duration and targetsPhase 3 of the project commenced in March 2014 and will be implemented unl March 2017.

By the end of Phase 3, the projects goal is to reach 1.43 million farmers and small and medium enterprises, and increase

the income of its beneficiaries by USD263 million.

Women Economic Empowerment

Local Agribusiness Networks

Informaon Channels

Capitalisaon

CrossSectors

Overarching

Topic

WiderEconomy

Core Sectors

Vegetable

Farmed Fish

Maize

Key TopicsInputs

Farm Pracce

Markeng

Figure 2 : Katalysts Porolio

Implemented by Funded by

International Services

IS

House 20, Road 6, Baridhara, Dhaka 1212, Bangladesh. Tel: +88 (02) 8833172-4, Fax: +88 (02) 8835452

www.katalyst.com.bd, www.swisscontact.org.bd

Prepared by Communicaons unit, Katalyst

Photo: Farida Husain/Katalyst

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