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    www.oxfam.org.uk

    OxfamDiscussion Paper

    Making markets empower the poor

    Programme perspectives on using markets toempower women and men living in poverty

    Erinch Sahan (Oxfam GB) andJulia Fischer-Mackey (Oxfam America)

    7 November 2011

    Market-based development programmes can help people living in povertybenefit from markets and lift themselves out of poverty. However, manysuch approaches do not pay attention to power imbalances that perpetuatemarginalisation and poverty. To reach their fullest potential, market-based

    programmes should actively strengthen the power of marginalised

    smallholders and women. Major events in the market system, induced bychanges in policy, regulation, social movements or business models can

    provide opportunities to intervene and rebalance power. Market-basedprogrammes should also be complemented by non-market interventions thataddress poverty and sustainability issues in household and environmentalsystems. Through its work, Oxfam has encountered some of the challengesand limitations of market-based approaches. This paper is intended to raisethese challenges with the broader community of development practitionersemploying market-based approaches and share approaches Oxfam has takento addressing them. The most conspicuous of these challenges is a need to

    address power imbalances between smallholders and larger businesses, aswell as between women and men.

    Oxfam Discussion Papers

    OxfamDiscussionPapersarewrittentocontributetopublicdebateandtoinvite

    feedbackondevelopmentandhumanitarianpolicyissues.Theyareworkin

    progressdocuments,anddonotnecessarilyconstitutefinalpublicationsorreflect

    Oxfampolicypositions.Theviewsandrecommendationsexpressedmaybethoseof

    theauthorandnotnecessarilythoseofOxfam.

    Formoreinformation,ortocommentonthisdocument,email

    [email protected]

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    MakingMarketsEmpowerthePoor,OxfamDiscussionPaper,November2011 2

    Summary

    Marketbaseddevelopmentprogrammesareincreasinglyattractingmoresupportfrom

    donors.However,itisimportantthattheydonotlimitthemselvestomarketreadyindividuals,butreachmoremarginalisedgroupsthatarenotreadytoengagemeaningfully

    inmarkets.Thispaperisintendedtoraisechallengesaroundpowerdisparitiesinmarkets,

    whichcanpreventmarketbasedprogrammesfromreachingthosewhoarenotmarket

    ready.ItalsosharesapproachesOxfamhastakentoaddressthesechallenges.

    Peoplearepoorbecausetheyarepowerless.1Totacklepoverty,everydevelopment

    programme,includingmarketbaseddevelopmentprogrammes,shouldfocusonincreasing

    thepowerofmarginalisedwomenandmen.

    Where to intervene: not only in the market system

    Marketbasedapproaches,whichnaturallyoperatewithinthemarketsystem,willnot

    addressallpovertyissues.Itisimportantthattheyareaccompaniedbycomplementary

    interventionsinhouseholdandenvironmentalsystems.Forexample,itmaybenecessaryto

    addressgenderbasedviolence,buildcapacitytosustainablymanagenaturalresources,or

    providewaterinfrastructuretocommunities.Interventionsinthemarketsystemmustalso

    ensurethattheydonotdestroythenaturalenvironment,onwhichthesurvivalofthemarket

    systemdepends.

    When to intervene: leverage catalytic events that disrupt markets

    Eventssuchassignificantgovernmentpolicychanges,largescalesocialmovements,

    migration, regulatoryreform,changesinpowerfulfirmsbusinessmodels,technological

    changeordisasterscanopenupthepossibilityforinterventionstorebalancepower.

    Programmescanbuilduponthesedisruptionsandintervenetosupportmarginalisedproducersintakingadvantageofnewopportunitiesandacquiregreaterpower.Inthe

    absenceofsuchcatalyticevents,interventionscanthemselvesdisruptmarketstorebalance

    power.However,theycanhavegreaterimpactwhentheybuilduponacatalyticeventthatis

    alreadyoccurring.

    Why to intervene: to disrupt the market and rebalance power

    Therearethreeunderlyingapproachesthatdrivethedebateonmarketbaseddevelopment.

    Theydifferintheextenttowhichtheyfocusonrebalancingpower.Theyalsoprovide

    differentlevelsofflexibilityinallowingorpreventinginterventionstoshakeupthemarket

    systemandrebalancepower:

    1. Avoidinterveningdirectlytoassistthoseinpoverty,butratherplayafacilitativerole

    inconnectingthosepeople,firms,orinstitutionsalreadyinthemarketsystem;

    2. Playaserviceprovisionroleinmarketsdirectlytofillgapsinthemarketsystem;and

    3. Intervenetemporarilybutdirectlyinmarkets,informedbyanunderstandingof

    marketincentives,soastodisruptmarketsandrebalancepower.

    Acrosstheseapproaches,underlyingbeliefsaboutmarketswillshapeinterventions.Beliefs

    centredonfreemarketswillmakeaprogrammereluctanttointervenemoreactivelyinthe

    marketsystem.Thiswillleadtoreachingonlythemarketready.

    How to intervene: Oxfams experience

    Unlessmarketsaredisruptedandpowerrebalanced,programmeswillonlyreachsuch

    marketreadysmallholders.Manymarginalisedpeopleliveinremoteareas,orare

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    MakingMarketsEmpowerthePoor,OxfamDiscussionPaper,November2011 3

    surroundedbyundevelopedmarketsystems.Theseareplaceswherethecostsandrisksof

    doingbusinessinhibitcommercialinvestment,leadingtoproducersbeingdeniedaccessto

    keyservicessuchasfinance.Additionally,someofthemostmarginalisedpeople,especially

    women,faceculturalexclusionfrommarkets.Suchpeoplecanbeexcludedfromnotonly

    marketsbut

    also

    from

    broader

    society,

    through

    exclusion

    from

    rights,

    resources

    and

    relationships.2Toassistmarginalisedpeople,aprogrammeshouldactivelyaddressthe

    barriersthatkeepthesepeoplefromusingmarketstoliftthemselvesoutofpoverty.Inorder

    toreachmoreremoteandmarginalisedsmallholders,Oxfamtriestodisruptmarketsand

    rebalancepowerviafourinterventions:

    1. Supportingproducerorganisations(POs):EffectivePOs(suchascooperativesand

    collectives)canempowersmallscaleproducersthrougheconomiesofscale,

    increasedinfluenceinoutputandinputmarkets,andstrengthinnumbers.Oxfam

    assistsPOstobuildthemarketpowerofproducers,andencouragesthemtotake

    progressivemeasurestoensureequalparticipationandbenefitsforwomen

    producers.

    2. Supportingnewbusinessmodels:Enterprisessuchasspecialisedintermediaries

    andserviceprovidersoftenfillanimportantgapinmarketsforsmallholders.They

    allowapoorlyorganisedproducerbase(smallholders)toconnecttosophisticated

    andmoderninputandoutputmarkets.Theyalsoprovidesupportinproductquality

    control,processing,andaccesstoinputs.WhilethisrolecanbeperformedbyPOs

    themselves,whichoperateattheprimarytier,itisoftenmoreeffectiveforittobe

    performedbyaseparateenterpriseoperatingatasecondlevel(i.e.servingmultiple

    POs).Thesehighertierenterprisescanthemselvesbeownedbyagrouporunionof

    POs.Tobesuccessful,enterprisesmustadapttobecommerciallyefficient,butalso

    empowersmallholders,includingwomen,byhelpingthembecomemore

    competitiveand

    able

    to

    access

    more

    lucrative

    formal

    markets.

    It

    is

    also

    important

    for

    developmentprogrammestoworkwithexistingfirmstogetthemtodealmorefairly

    andtransparentlywithsmallholders.

    3. Makingprecommercialinvestments:Manymarginalisedpeoplelacktheassetsand

    skillsnecessarytousemarketstoliftthemselvesoutofpoverty.Providingpre

    commercialinvestmentstosuchindividualsandgroupsisoftennecessarytoallow

    themtoparticipatemeaningfullyinmarkets.Providingassetsandtrainingfor

    womenisacorepartofOxfamswork.

    4. Givingmarginalisedgroupsavoiceingovernanceandinvestment:Where

    regulationsandpublicinvestmentaddresstheneedsofsmallscaleandfemale

    producers,

    this

    can

    bring

    new

    producers

    into

    the

    market

    and

    level

    the

    playing

    field

    forwomen.Oxfamsupportsmarginalisedgroupsindealingswithgovernments,

    helpingthemtoaccesspublicprecommercialinvestmentintechnologiessuchas

    irrigation.Italsoworkstoinfluencepoliciesthathaveanimpactonwomen,suchas

    thosecoveringlandrights.

    Itisimportantthatinterventionsopenupnewopportunitiesformarginalisedproducers

    withoutexposingthemtoexcessiverisk.Promotingaccesstolocalmarketsandthe

    diversificationofcropsiscriticalforprogrammestoprotectsmallholdersfromsuchrisk.This

    couldalsoincludesupporttodiversifysourcesofincomebypromotingaccesstoofffarm

    income.Itisalsocriticalthatprogrammesavoidfacilitatingcontractualrelationshipsthatlock

    smallholdersintosinglevaluechainsanddependentbusinessrelationships.

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    MakingMarketsEmpowerthePoor,OxfamDiscussionPaper,November2011 4

    Glossary of terms

    Businessmodels:Abusinessmodeldescribeshowanindividualfirmorganisesitselfandits

    relationshipsinordertocreateandcapturevalue.Itexplainshowthebuildingblocksofproduction,marketing,costsandrevenuescometogethertoprovideavaluepropositioninthe

    marketplacethatdifferentiatesthefirmfromitscompetitors.Thebusinessmodelconceptis

    linkedtobusinessstrategy(theprocessofbusinessmodeldesign)andbusinessoperations(the

    implementationofacompanysbusinessmodelintoorganisationalstructuresandsystems).

    Crowdingin:Makingmarketsworkforthepoorprogrammesaimtostimulateprivateand

    publicsectoractorstotakeonnew(oradapted)functionstocrowdinwhileavoiding

    becomingactivemarketplayersthemselves.

    Facilitativeapproach:Theapproachoffacilitatingexistingmarketactorstoperformrequired

    roles,asusedbythemakingmarketsworkforthepoorapproach.

    Formalmarkets:

    Aregulatedsystemwithinwhichtheexchangeofgoodsandservicestakes

    place.

    Makingmarketsworkforthepoor(M4P):Anapproachthatgrewoutofthemarket

    developmentworkoftheUKDepartmentforInternationalDevelopment(DFID)andothers.It

    focusesonunderstandingwheremarketsystemsarefailingtoservetheneedsofpoorpeople,

    andactstocorrectthosefailings.M4Pdividesthemarketsystemintothreeparts:thecore

    (whereprovidersandconsumersexchangegoodsandservices);therules(formalorinformal

    ruleswhichshapebehaviour);andthesupportingfunctions(suchasinformation,logistics,

    marketing).InM4Pinterventions,donorsorNGOsplayafacilitativeroleratherthananactive

    partinthemarketsystem,i.e.theycatalyseothers.Interventionsmaybesmallthemselves,but

    theystrive

    to

    leverage

    market

    forces

    to

    create

    sustainable

    impact

    at

    alarge

    scale.

    3

    Marketactors(akamarketsystemactors):Someonewhoisactivelyparticipatinginthe

    exchangeofgoodsorservices.

    Precommercialinvestment:Upfrontgrantorassettransfertoeithera)enablenewmarket

    actorsorenterprises(whichmaylackassets,skills,orknowledge)toaccessamarket,orb)

    ensurethatthenecessarymarketsysteminfrastructure(e.g.transportationservicesorrural

    marketprovision)isoperational,toenablemarketactors,orenterprisestoinitiateanew

    businessmodelorvaluechainwithinthemarketsystem.

    Producerorganisations(POs):ForOxfam,therearethreedefiningfeaturesofaPO:

    1. Itisabusiness(alsocalledanenterprise).Itmustgenerateenoughprofittoprovide

    tangiblebenefitstoitsmembersandcoveritsowncosts.

    2. Itisownedandcontrolledbyitsmembers:smallscaleproducers.

    3. Itcollectivelymarketsorsupportsjointmarketingofcommoditiesproducedbyits

    members.

    Valuechain:Thefullrangeofactivitiesthatarerequiredtobringaproduct(oraservice)from

    conception,throughthedifferentphasesofproduction,todeliverytofinalconsumersand

    disposalafteruse.Oxfamtakesabroadunderstandingofvaluechains,andlooksatthe

    complexrangeofactivitiesimplementedbyallactors(primaryproducers,processors,traders,

    serviceproviders,etc.)tobringarawmaterialtotheretailofthefinalproduct.Thebroadvalue

    chainstarts

    from

    the

    production

    system

    of

    the

    raw

    materials

    and

    will

    move

    along

    the

    linkages

    withotherenterprisesengagedintrading,assembling,processingandotheractivities.

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    MakingMarketsEmpowerthePoor,OxfamDiscussionPaper,November2011 5

    1. Introduction

    Inrecentdecades,manydevelopmenteconomistsandpractitionershavenoticedthat,

    whileeconomicgrowthsometimescontributestopovertyreduction,thetypeofgrowthandthewaysthatmarketsworkoftendeterminehowmanypeoplelivinginpoverty

    benefitfromeconomicgrowthandtrade.4Thequestforpovertyreducinggrowthand

    marketactivityhasledtoanarrayofnewapproachesthataimtoalterthewaymarkets

    work.Thereisconsiderableexcitementaroundthesenewapproaches,partlyduetothe

    disappointingresultsofmoretraditionalcharitybasedlivelihoodsprogrammes.

    Oxfamusesmarketbasedapproachestoenhancethelivelihoodsopportunitiesofwomen

    andmenlivinginpoverty.However,itisimportanttorecognisethatmarketsarebiased

    systems,withtherulesofthegamebeingshapedbythosewitheconomicorpolitical

    power.Thechallengehasbeenapplyingtheseapproachesinremoteandthinmarkets,

    andensuringtheyservetheinterestsofwomenorothermarginalisedgroups.

    Thispaper(andOxfamslivelihoodsworkgenerally)focusesonagricultureandrural

    marketsbecause70percentoftheworlds1.4billionextremelypoorpeopleliveinrural

    areas.5Forthem,agricultureisoftenthebestopportunitytoworkandtradetheirway

    outofpoverty.Also,studiesshowthatgrowthgeneratedfromagricultureisfourtimes

    moreeffectiveinreducingpovertythangrowthinothersectors.6However,urban

    marketbasedapproacheswillbeincreasinglyimportantasurbanisationindeveloping

    andmiddleincomecountriescontinues,andfurtherworkinthisareawillbeessential.7

    Marketsprovidedifferentbenefitsforwomenandmen,smallholdersandlargescale

    producers,andremoteruralandurbanpopulations.Thegrowthofmarketscaneasily

    entrenchbiasesandpowerdisparitiesbetweenthesegroups.The2012WorldDevelopment

    Reportarguesthatmarketshaveadifferentimpactonmenandwomenbecauseof

    significantdifferencesintimeuse,accesstoassetsandcredit,andtreatmentbymarkets

    andformalinstitutions.8Generatingeconomicgrowthisoftennotenoughtoempower

    women.Norisitnecessarilyenoughtogettheworldspoorestpeopleoutofpoverty.Over

    the20yearsto2001,only1.5percentofglobaleconomicgrowthbenefitedpeopleonless

    than$1perday(whichwasonethirdoftheworldpopulationatthetime).9Itisthequality,

    notquantity,ofeconomicgrowthonwhichprogrammesshouldbefocused.

    Marketbasedapproachescanfailtoreachthemostmarginalisedpopulations,whooften

    facesocialexclusionbeyondmereexclusionfrommarkets.Forexample,socialsafetynets

    andlabourrightsprotectionswillstillbecriticalinmanycontexts.Forthisreason,the

    approachesoutlined

    in

    this

    discussion

    paper

    cannot

    replace

    interventions

    in

    other

    areas.

    Oxfammaintainsitsnonmarketbasedlivelihoodswork,andcautionsagainstviewing

    marketbasedapproachesasapanacea.

    Throughitswork,Oxfamhasencounteredsomeofthechallengesandlimitationsof

    marketbasedapproaches,andthispaperisintendedtoraisesomeofthesechallengeswith

    thebroadercommunityofdevelopmentpractitionersemployingmarketbasedapproaches.

    Themostconspicuousofthesechallengesisaneedtoaddresspowerimbalancesbetween

    smallholdersandlargerbusinesses,aswellasbetweenwomenandmen.

    Toaddresstheseissues,programmesthatoperateinthemarketsystemneedtotakea

    flexibleapproachandincorporateanuancedunderstandingofhouseholdand

    environmental

    systems,

    which

    inter

    relate

    with

    market

    systems.

    Complementary

    programmesthatdirectlyaddresspovertyissuesinhouseholdandenvironmental

    systemsarealsoneeded.

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    MakingMarketsEmpowerthePoor,OxfamDiscussionPaper,November2011 6

    2. Background to market-based approaches andbeliefs

    Themajorityofmarketbasedapproachescanbebrokendownintothreegroups,basedon

    theunittheyanalyseandseektoinfluence:anindividualenterprise,thevaluechain,orthe

    marketsystem.

    1. Enterprises

    Theindividualenterprisehasbeenthefocusofnumerouspovertyreductionefforts.

    Thereiswidespreadsupportforenterprisedevelopment,particularlyforsmalland

    mediumsizedbusinesses(SMEs),whichmayincludecooperativeenterprisesformedby

    smallscaleproducers.Supportincludes:

    financialsupport,intheformofmicrofinance;missingmiddlefinance,which

    fillsthegapbetweenmicrofinanceandcommercialfinance;firstlosscapital;patient/longtermcapital;orventurecapital;

    technicalassistance,forexample,mentorshiporpeernetworksetc.;and

    capacitybuilding,forexampleinfinancialliteracyandbookkeeping.10

    Socialentrepreneurs,whousesustainableandscalableforprofitbusinessmodelsto

    createsocialandeconomicvalue,attractcapitalfromfoundationsandsocially

    responsibleinvestors.AclassicexampleistheAravindEyeCareHospitalsinIndia,

    whichusepaymentsfromaffluentpatientstoprovideeyesurgeryforimpoverishedand

    marginalisedindividuals.

    11A

    wide

    range

    of

    inclusive

    businesses

    have

    sprung

    up,

    which

    areoftenlargerbusinessesthatareintendedtoserveoremploypeoplelivinginpoverty.

    Investinginsocialentrepreneursandinclusivebusinessesissometimesknownasimpact

    investing,whichmeansinvestingforsocialandeconomicreturns.

    2. Value chains

    In1985,MichaelPorterpopularisedthevaluechainsconcept,whichproposedthat

    valuechainsencompassthefullrangeofactivitiesandservicesrequiredtobringa

    productorservicefromitsconceptiontosaleinitsfinalmarkets,andthattheproduct

    gainedvalueasitmovedalongthevaluechain.12Thevaluechainapproachto

    developmentandpovertyalleviationinvolveslookingateachlinkinthischain,

    consideringhow

    each

    one

    relates

    to

    those

    before

    and

    after

    it,

    and

    how

    much

    value

    (or

    profit)eachlinkcreatesorcaptures.Forexample,usingPortersconcept,NGOscanhelp

    producersnearthebeginningofthevaluechaincapturemorevalue(andprofit)by

    processingorrefiningaproductbeforetheytradeittothenextmemberofthevalue

    chain.

    Valuechainprojectsfocusonbusinesstobusinessrelationships,andtheyencompassa

    rangeofactivitiesintendedtomakevaluechainsmoreeffectiveandinclusive,including

    changingandstrengtheningrelationshipsbetweenlinks,andimprovingtheflowof

    information,resources,andgoodsalongthechain.13

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    MakingMarketsEmpowerthePoor,OxfamDiscussionPaper,November2011 7

    3. Market systems

    Theenterpriseandvaluechainapproachesarelimitedintheirfocustooneorafewmarket

    actorsandproducts.Amorerecentsystemicapproachtounderstandingmarketshasbecome

    influential.Systemsthinking,aconceptwhichwasadaptedbyPeterSengeandothersfrom

    itsscientificusetoanalyseorganisationsandbusinesses,definesasystemasasetofvariablesthatinfluenceoneanother.Systemsthinkingemphasisesthatcauseandeffectmay

    notbeclosetooneanotherintimeorspace,thatfeedbackloopscanamplifyornullify

    actions,andthatsmallchangescancreatebigresults.Asystemsthinkingapproachto

    marketsunderstandstheircomplexityanddynamism.Itemphasisestheimportanceof

    understandingallelementsinasystem,includinggovernment,infrastructure,andhidden

    forcessuchasculturalbeliefsandpractices,whichareoftenignoredinmorelimitedmarket

    basedapproaches.Becausechangestoasystemmayproduceunexpectedresults,itis

    importanttomonitormarketinterventionscloselytodetectunintendedconsequences,and

    addressthosethatarenegative.

    Oxfamembracesamarketsystemsapproachbecauseitrecognisesthecomplexityofmarkets

    andtheroleofnonmarketactors, suchasgovernments,andtheimportanceofrelated

    factors,suchasinfrastructure,ondevelopmentandlivelihoods.

    MakingMarketsWorkforthePoor(M4P)isanapproachthattargetskeyweaknesseswithin

    marketsystems.Itdoesnotfocusonasinglevaluechain,insteadlookingatallelementsof

    themarketsystemthatsurroundpoorercommunities.Itfostersunderstandingofthe

    functionsandactorswithinthesesystemsandaimstostrengthenthem,sotheycanbetter

    servetheneedsofpoorercommunities.M4Padvocatesafacilitativeapproach,whichmeans

    thatNGOsanddonorsseektocatalyseexistingmarketactorstocreatesustainableand

    scalablechanges,ratherthanprovidingmarketfunctionsthemselves.14Inotherwords,under

    M4P,NGOsanddonorsavoidplayingaserviceprovisionrole,andinsteadfocusongetting

    existingmarket

    actors

    to

    provide

    these

    services.

    The

    facilitative

    approach

    is

    time

    bound,

    and

    generallydoesnotinvolveactiveparticipationinthemarketorcostlyinterventions.

    However,theM4Papproachgenerallydoesnotconsiderhiddenforcessuchascultureand

    gender,whichOxfambelievesinfluencethewaysthatmarketsworkandthedistributionof

    theirbenefits.

    Different beliefs about markets lead to different solutions

    Marketbasedapproachesarefoundedonabeliefthatmarketscanleadtopovertyreduction.

    However,thedegreetowhichmarketsmustbechangedtoachievethisresultisdebated.

    Organisationshavefundamentaldifferencesinthewaytheyconceiveofkeyissues,including

    therelationshipsbetweenmarkets,power,andgender;incentives;andsustainability.These

    differencesinbeliefsleadtodifferenttypesofinterventions.

    Oxfambelievesthatpovertyisaboutpower.TheWorldBanksVoicesofthePoorstudy,whichtalkedto64,000peoplelivinginpovertyacrosstheworld,concludedthatthecommontheme

    underlyingpoorpeoplesexperiencesisoneofpowerlessness.15Povertyreductionmust

    addressthis.Itisnotagiventhatmarketbasedapproacheswillreduceunequalpower

    relations;infact,interventionsmayexacerbatedisparitiesiftheyarenotcarefullyconceived

    andimplementedwithsufficientparticipationbytheaffectedcommunities.16Sometimes,

    developmentinterventionsneedtoshakeupexistingpowerstructures.Thismayinvolve

    fundingorsubsidisingparticularservices,buildingcapacityandinstitutions,investing

    financialresources,orbrokeringfairerdealsbetweenmarketactorswithunequalpower.

    Incentivesare

    another

    area

    of

    disagreement

    between

    organisations.

    Many

    who

    have

    great

    faithinmarketsbelievethat,ifaneedexists,amarketactorwillnaturallyfillit.However,

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    MakingMarketsEmpowerthePoor,OxfamDiscussionPaper,November2011 8

    Oxfamoftenfindsthat,inremoteruralareas,theincentivestomeettheneedsofsmallscale

    farmersareinsufficient,andsubsidiesorotherincentivesmayberequired.Evenifone

    supplierdoesarrivetofillaneed,itdoesnotnecessarilymeanthatothersupplierswill

    crowdintothemarket,assomeM4Padvocatesassume.Thismaybebecause,evenifthe

    businessmodel

    works,

    the

    returns

    from

    athin

    market

    do

    not

    justify

    further

    entrants.

    The

    suppliermaythereforebeinapositiontoexploititscustomersand,topreventthis,other

    interventionsmayberequired.

    Anotherdifferenceinworldviewaffectinghoworganisationsinterveneistheconceptof

    sustainability. M4Pusesthetermtomeaneconomicsustainability,i.e.thattheactivitieswill

    continuetobeeconomicallyviableafterthedevelopmentprogrammesintervention.Asa

    resultofthisunderstandingofsustainability,facilitativeapproachesmayinsistthatexisting

    marketactorsperformallkeymarketfunctions.ForNGOsandgovernmentstoperformkey

    functionsmaybeseenasunsustainable.

    Oxfamdisputesthisunderstandingofeconomicsustainability.Privatesectormarketactors

    abruptlyexit

    markets

    all

    the

    time

    just

    because

    they

    are

    providing

    afunction

    in

    amarket

    todaydoesnotmeantheywillbethereindefinitely.Atthesametime,governmentbodies

    andNGOsoftenperformmarketfunctionsforlongperiodsoftime.Theymayalsoneedto

    performafunctioninthemarketforalimitedtimebeforeamarketactorcantakeontherole.

    Oxfamsbroaderunderstandingofsustainabilityprovidesitselfandothernonmarketactors

    (includinggovernments)withgreaterflexibilitytoperformcriticalroles.

    Inadditiontothisdifferenceinbeliefabouteconomicsustainability,Oxfamunderstands

    sustainabilityasatrioofissues:economicsustainability,socialsustainability,and

    environmentalsustainability.Theimportanceofsocialandenvironmentalsustainabilityis

    oftenunderappreciatedbyproponentsofmarketbasedapproaches.

    In

    summary,

    an

    organisations

    underlying

    beliefs

    about

    markets

    will

    determine

    the

    kinds

    of

    interventionsitconducts.Threedifferentconclusionscanfollowfromdifferencesinbeliefs:

    1. Programmesshouldavoidinterveningdirectlytoassistthoseinpoverty,butshould

    playafacilitativeroleinconnectingexistingmarketactors;

    2. Programmesshouldplayaserviceprovisionroleinmarketsdirectlytofillgapsin

    themarketsystem;or

    3. Programmesshouldintervenetemporarilybutdirectlyinmarkets,informedbyan

    understandingofmarketincentives,sothattheycandisruptmarketstorebalance

    power.

    Whileallthreeapproachesrecognisetheneedtoincreasesmallholdersproductivityinorder

    tomakethemcompetitive,theyallowfordifferenttypesofintervention.Thispaperargues

    thatpowerdisparitiesinmarkets,betweenwomenandmen,smallholdersandlargescale

    producers,andremoteruralandurbanpopulations,mustbebetterincorporatedintomarket

    basedapproachesandthatinterventionsmustbedesignedtoactivelyrebalancepower.In

    addition,interventionstargetingmarketsystemsshouldalsobeaccompaniedby

    complementaryprogrammesthataddresspovertyissuesinhouseholdandenvironmental

    systems.

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    MakingMarketsEmpowerthePoor,OxfamDiscussionPaper,November2011 9

    Figure 1: The three systems: market, household, and environmental/farm17

    Beliefs about gender and its implications for markets work

    Oxfambelievesthatgenderinequalityandthedenialofwomensbasichumanrightsare

    amongthegreatestbarrierstopovertyeradication.Societalbeliefsaboutgenderrolesextend

    tothewaysinwhichmarketswork,limitingtheabilityofwomentoengagein,andbenefit

    from,marketactivities.Unequalpay,conditions,andpromotionopportunitiesinlabour

    marketsareperhapsthebestknownexamplesofgenderdiscriminationinmarkets.Ithas

    beenwidelydocumentedthatwomenworldwideareregularlypaidlessthanmenfor

    performingthesamework.

    Inpoorruralcommunities,womenareoftenexcludedfromparticipatinginmarkets.Thisis

    causedbydiscriminationinlandtitlingandassetownership,culturalnormsthatprohibit

    themfromengaginginmanylucrativeactivities,andmorelimitedaccesstofinancialservices,

    technology,andgovernmentextensionservices.18Marketdevelopmentthatbenefits

    householdsmaynotbenefitwomen.Atworst,interventionsthatimprovemensincomeand

    skillsmayreinforceunequalpoweroverwomeninhouseholds.Conversely,assetsand

    incomeinwomenshandsislinkedtolowermalnutrition19aswellasincreasesinagricultural

    productivitybybetween2.5percentand4percent.20

    Oxfams focus on womens economic leadership

    Oxfamputswomensrightsattheheartofallitsactivitiesandprogrammes.Initsmarketsystemswork,itusesagenderedmarketmappingexercisetoidentifywhichmarketsare

    mostlikelytooffersignificantopportunitiestoempowerwomen,andthenusesthis

    informationtodecidewheretointervene.Whenconsideringwhatmarketsystems

    interventionsOxfamwillsupport,italsoconsidersissuessuchastimeconstraintsandother

    responsibilities thatwomenhaveinordertochooseeconomicactivitiesthatreduce,rather

    thanaddto,theburdensandconstraintstheyface.OxfamsresearchinoneareaofTanzania,

    forexample,indicatedthatthepoultry,chickpea,andricesubsectorsofferedgreater

    potentialforwomenthanthejatrophaorcottonsubsectors.21

    AnalysingthepotentialofmarketstoempowerwomenhasonmanyoccasionsledtoOxfam

    changing

    the

    focus

    of

    its

    programmes.

    For

    example,

    in

    the

    Philippines,

    as

    a

    result

    of

    research

    policygovernanceattitudes/beliefsgender

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    andanalysisongender,Oxfamchangedaprogrammesfocusfrombiofuelstoprocessed

    moringaleaves,whichofferedmoreopportunitiesforwomen.

    Communitybasedresearchandanalysiscanhelptomakevisiblewomens contributionsto

    agricultureandtheeconomy,andallowforcommonunderstandingtodeveloparoundthe

    (oftenunequal)accessenjoyedbywomenandmentokeyservices,assets,roles,andbenefits

    inagriculturalactivities.Thiscommonunderstandingcanbethebasisforchangingbeliefs

    andpracticesrelatedtogender.

    Oxfamhasdevelopedagenderedenterpriseandmarketstoolkitthatpromoteswomens

    economicleadership.22Thisisusedtounderstandhowmarketinstitutionsandservices

    reinforcegenderinequalitiesandingrainedbeliefsabouttheappropriaterolesforwomen

    andmen,alongsideconsiderationsofpowerinequalitiesbetweenlargeandsmallmarket

    actors.Oxfamsapproachidentifiespracticalstepstoimprovewomensmarketpowerand

    roles,makingeffective,relevantchangeinaparticularcontext,andprovidingwomenwith

    leadershipopportunities.23

    SelectingmarketsbasedontheirpotentialforbuildinggenderequalityisessentialinidentifyingopportunitiesforWEL.ItisalsoimportantthatstrategiestodevelopWELare

    integratedintowiderstrategiesinmarketandenterprisedevelopment,sothatallsmall

    producers(orthecommunityasawhole)benefit.Thus,abusinessopportunitybecomesan

    incentivetoencouragenewpracticesforpositiveoutcomesforwomen.

    Ingrainedattitudesandbeliefsinlocalcommunitiesaroundgenderrolescanseverelyinhibit

    anyprogrammesabilitytochangegenderedpowerdynamics.Therefore,thereisaneedto

    promoteideasofgenderequityinthesecommunitieswhereverpossible.Thiscaninvolve

    makingthebusinesscasetoprivatesectordecisionmakersthatempoweringwomenwill

    increasetheirprofits.InColombia,whereOxfamhaspartneredwithaprivatelyownedlocal

    company,

    Alpina,

    to

    improve

    livelihoods

    for

    small

    scale

    dairy

    farmers,

    the

    programme

    has

    researchedanddisseminatedinformationabouttheextensive,butlargelyunrecognised,role

    thatwomenplayinmilkproduction.AfterworkingwithAlpinatounderstandthe

    productivitygainsfromprovidingwomenwithgreateropportunities,womennowhavea

    moreformalroleinqualitycontrolinthesupplychain.24Thisincludesa40percentincrease

    inthenumberofwomenwhosupplytoAlpina.25

    InMali,Oxfamistryingtogetalocalbanktolendmoremoneytowomenbysettingupa

    fundthatprovidesthebankwithaguaranteeonsuchloans.Thishasledtoadoublingofthe

    averagenumberofwomeninthecooperativesthataccesstheseloans.26Intheseways,

    Oxfamseekstoinfluenceinstitutionssothatwomencanbenefitmorefrommarket

    development.27

    Oxfamhasseenthatchangesingenderdynamicsinmarketsystemscanresultinchangesin

    genderrelationsinbroadersociety.Womenwhobecomemorepowerfulwithinamarket

    systemmaybecomemorepowerfulinotherrealmsaswell.Meanwhile,ifmarketsystem

    interventionsignoregenderinequalities,marketchangesandeconomicgrowthcan

    exacerbatedisparitiesandincreasewomensmarginalisation.

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    3. Power in the market system

    Powerdisparitiesinthemarketkeeppeoplepoor.28Ifalivelihoodsprogrammedoesnot

    identifyandlookforopportunitiestoaddressthesedisparities,itspovertyreductionimpactwillbelimited.Powerisimportantbecausesomevulnerablepopulationsaresopowerlessthat

    theyarealmostcompletelyexcludedfrommarkets(e.g.thosewithdisabilitiesorrestricted

    mobility).Othersparticipateinmarketsonpoorterms(e.g.theylacknegotiatingpoweror

    optionsbecauseofgeographicalisolation,theyarepricetakers,orareengagedinmonopolistic

    markets).Toreachmoremarginalisedpopulations,programmesneedtoaddresspower

    imbalancespreventingmarginalisedpopulationsfrombenefitingfrommarketdevelopment.

    Certaineventscanbecatalyticindisruptingamarketsystemsstatusquo.Examplesofsuch

    eventsaremajorpolicychanges,socialmovements,technologicalchanges,newcompanies

    enteringthemarket,existingcompanieschangingtheirbusinessmodel,disasters,orsocialand

    demographicshifts.Theseeventsprovideopportunitiesforinterventionstorebalancepower

    andbuildonthedisruptiontothemarketthroughvariousinterventionpoints.

    BelowaredescribedfourinterventionpointsthatOxfamhasusedtorebalancepowerwithin

    marketstobenefitmoremarginalisedandisolatedgroups.Thesedonotcoverthewhole

    breadthofOxfamsmarketbasedinterventions,butinsteadprovideinsightsintohowcertain

    approachescanbeusedandstrengthened.

    i) Empowerment through producer organisations

    Producerorganisations(POs)includecooperativeenterprises,associations,privatelimited

    companies,andinformalnetworksofproducers.ThemajorityofPOsareagricultural,which

    isthefocushere,buttheydoexistinothercontexts(e.g.POsofartisansinurbanareas).When

    theyoperateeffectively,POsallowsmallholderstosharerisksandcosts,negotiate,and

    bargaincollectively.Asaresult,throughPOs,producerscanbetteraccess,competein,and

    influencemarkets,givingthemgreateraccess,competitiveness,andpower.29

    However,POscanbeinefficientandsimplyaddunnecessarycosts,sothereisaneedto

    developinnovativePObusinessmodelstoavoidinefficienciesanddependencies.Thereis

    alsostrongevidencethatwomenareoftenexcludedfromdecisionmakingwithinPOs,and

    concertedeffortsarerequiredtoprovideleadershipopportunitiesforwomen.

    Access, competitiveness, and power

    POsprovidetheirmemberswithmanyoftheadvantagesthatlargerproducersenjoy.

    POsoften

    aggregate

    their

    members

    produce

    and,

    with

    higher

    volumes,

    they

    may

    be

    morepowerfulandlessdispensableassuppliers.Theymayalsobeabletoaccessbuyers

    inhighervaluemarketsthatpayhigherprices.POscanalsodevelopinternalproduct

    gradingprocessesandinvestinqualityimprovementsforproduce.ThiscanallowPOsto

    meetthestrictqualityandhealthstandardsofhighervalueornichemarkets,whichis

    oftentoocostlyanddifficultforindividualproducers.POsoftencarrygreatercredibility

    andlegalstandingthanindividualproducers,sotheycanmoreeasilysecurecreditfor

    improvingtheirbusinesses.OnemoreimportantroleforPOsistopromoteachangein

    producersattitudes,empoweringthemtobemoreproactiveandstimulatingan

    entrepreneurialmindset.

    Forexample,intheOccupiedPalestinianTerritory,OxfamhassupportedaPOofherders

    andveterinaryprofessionalstoprovidenewservicestomembers.Manyofthemembershadbecomeaccustomedtoreceivinghandoutsoffodderandbeingprovidedwithfreeveterinary

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    servicesbypreviousdevelopmentprojects.FollowingOxfamsintervention,thePOnow

    providesmemberswithimprovedaccesstoinputsthroughbulkinputprocurement.Italso

    providesitsmemberswithinformationonflockmanagementandproductivity,aswellasa

    mobileveterinaryserviceofferingartificialinseminationservices.Asresultofthisimproved

    accessto

    inputs

    and

    services,

    members

    of

    the

    PO

    now

    actively

    operate

    as

    entrepreneurs,

    and

    donotwaitfortheprovisionoffreeservicesorthedistributionoffodderandotherinputs.30

    POscanmakebulkpurchasesofagriculturalinputs(suchasseedsorfertiliser),insurance,

    logisticsservices,andwarehousing,resultinginlowercostsperproducer.Economiesofscale

    canalsomakeiteasierforaPOtoinvestinprocessing,storage,ortransportfacilitiesthatcan

    givememberstheabilitytochoosewhenandwheretoselltheirproducts.

    Whilesmallproducersmayhavetroubleaccessinginformationaboutmarketrequirements

    andprices,POsareabletoinvestmoretimeandresourcesingatheringandanalysingmarket

    information.Theymaybeabletoextractmoreinformationfrombuyersondemandtrends

    andmarketconditions.

    InVietNam,residentsofTraVinhhadattemptedclamfarminginthepast,buthadabandoneditbecausetheirclamswerebeingstolenfromtheopencoastalwatersinwhich

    theywerefarmed.In2003,OxfamhelpedformthreePOs,knownasClamClubs,which

    solvedthisproblembyusingpooledfundstopayguardsforthefarms.31Thestructureofthe

    POsallowedmemberstoinvest(andprofit)atdifferentlevelsaccordingtotheirmeans.

    Oxfamsetuparevolvingfundsothatpoorermemberscouldborrowmoneytoinvestin

    babyclams,andthenpaybacktheirloansoncetheyweresold.Theprofitsweredistributed.

    Theloanswererepaidwithinterest,sothatmorepoorresidentscouldjointhePOovertime,

    makingthePOnotonlyequitableandinclusive,butsustainableandgrowthoriented.

    (Dis)empowering women in POs

    Thereis

    general

    recognition

    that

    women

    experience

    major

    challenges

    in

    participating

    in,

    and

    benefitingfrom,POs.32Theyareoftenunderrepresentedandsometimesface

    discrimination.33ManyPOsrequirememberstoownland,whichinmanycontextslimitsthe

    numberofwomenwhoareeligible.34Otherbarriersincludetheirlackofvoiceintheir

    communities,andthetimerequiredtoactivelyparticipate.Culturalbarrierscanalsolimit

    womensparticipationinPOs.Forinstance,insomecultures,womenarenotallowedtoleave

    theirhomeswithouttheirhusbandspermission.Additionally,largerandmoreformalPOs,

    aswellascoalitionsofcooperatives,oftenlimitmembershiptoheadsofhouseholdoreven

    maleheadsofhousehold.35

    Evenininstanceswherewomenarenotinaminority,menmaysimplybenefitmorefrom

    collectiveaction.Forexample,evenwherewomenandmeninvestthesameresourcesand

    timeinaPO,menmayhavegreateraccesstocredit,information,andcontactwithservice

    providersandmarkets.36Changinggenderbiasescanbeverydifficult.A2002evaluationofOxfamssupporttoa

    coffeePOinHaitifoundthateffortshadbeenmadetoincreasewomensparticipationin

    assembliesandelections.However,thisdidnotleadtochangesingenderrolesinproduction,

    orwomensrepresentationamongpaidemployeesorleadershipanddecisionmaking

    positionsinthePO.37

    Therehavebeensomesuccessstories,though,ineffortstoincreasewomensparticipationin

    POs.38IntheAmhararegionofEthiopia,anOxfamprogrammeconductedadvocacythatled

    totheintroductionofanewlawwherebycooperativescouldonlyberegisterediftheir

    leadershipincludedatleastonewoman.ItalsoledtobylawspermittingdualmembershipfromonefamilyinallthecooperativesandunionswithwhichOxfamworkswithaviewto

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    scalingthisupinthenextphase.Thusfar,suchactionshaveledtowomensmembershipin

    honeycooperativesincreasingfromzeroto22percent,andfromzeroto10percentincoffee

    cooperatives(2,800women).39

    Other challenges of POs

    POscandiscriminateagainstmorevulnerableproducersandthosewithfewerassets.Thisis

    because,inordertoparticipate,producersusuallymustbeabletoproduceasurpluscropor

    productthatmeetsthedemandsofthetargetmarketandsatisfiesotherconditionsof

    membership.POmembershipmayalsoimposecoststhataretoohighformanysmall

    producers.Developmentprogrammesmayprovideassetsandcapacitybuildingsothat

    poorerproducers,andwomenwhofaceagenderbias,areabletoparticipateinPOs.

    CollectivedecisionmakingcanbedifficultforPOs,ascantheproblemsoffreeridersand

    dishonestmembers.40POscanalsobeformedorcapturedbylocaleliteswhoseekto

    maintaincontroloflocalmarketactivities.41SomePOsfailbecausecertainmembersfigureouthowtoextractmorebenefitsorincomeforthemselves,causingmemberstolosetrustin

    thegroupandabandonit.Forthisreason,itisveryimportanttobuildtrustandrobustprocessesinordertopreventindividualsfromexploitingopportunitiestobenefitthemselves

    attheexpenseofothermembers.

    ItoftentakesanumberofyearsforaPOtobreakevenandbeabletopayitsmembersprices

    thatarehigherthanthoseofferedbyothertraders.Untilitreachesthispoint,membersmay

    havetomakeinvestmentsinthePOwithoutreceivinganybenefits,whichprevents

    participationbypoorerproducerswhocannotmakesuchsacrifices.Additionally,inmany

    POs,thereisadelaybetweenproducebeingcollectedandpaymentsbeingmade,whichmay

    alsopreventpoorerproducersfromparticipating.

    Thus,addressingpowerdisparitiesbypromotingPOscomeswithmanychallenges.

    Therefore,new

    PO

    models

    must

    be

    developed,

    and

    much

    more

    must

    be

    learned

    about

    how

    toaddressmarginalisationbasedongenderorassetownershipinPOs.

    ii) New business models: specialised intermediaries, serviceproviders, and innovative partnerships

    Smallproducersoftenfacesignificantbarriersthathindertheirabilitytoparticipatein

    lucrativemarkets.Oneofthesebarriersisalackofspecialisedintermediaries,whichare

    businessesthatbothfindnewmarketsandhelpsmallholdersaccessthesemarketsfairly.A

    secondbarrierisalackofserviceproviderswhocanofferaffordableservicesappropriatefor

    smallholders.Whereanexistingmarketactorisabletoperformeitheroftheseroles,Oxfam

    aimsto

    support

    them.

    However,

    often

    such

    enterprises

    and

    intermediaries

    do

    not

    exist

    in

    the

    market,orcannotservesmallholders,mainlybecausethebusinesscaseforplayingthisrole

    canbeweak.Smallholderscanbeseenasunreliableandascarryingbusinessuncertainty,

    whichisabarrierforpotentialinvestorswhorequiregreaterstabilityandcertainty.Where

    theseenterprisesdoexist,theymaynotbetailoringtheirservicessufficientlyfor

    smallholders.POsmaybetheonlyenterpriseswillingtoinvestinnewactivitiesinremote

    areas,soOxfammayoffergrants,loans,andtrainingtohelpestablishsuchenterprises.

    SpecialisedintermediariesoftenservemultipleprimaryPOs.

    Newbusinessmodelsareemergingoutsideofthecooperativestructurescommonlyfound

    indevelopingcountries.Theseincludeprivatelimitedintermediariesthatarefullyownedby

    smallholdercooperatives.TheseincludesuppliersofequipmentthatallowPOstoundertake

    processing,andenterprisesthatspecialiseinsourcinghighergradeproducefrom

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    smallholders.ThediscussionbelowreflectssomeofOxfamsexperienceinsettingupand

    supportingtheseenterprises.

    Specialised intermediaries

    Intermediaries

    often

    need

    to

    link

    smallholders

    to

    modern

    markets.

    Smallholders

    need

    specialisedservicesto:

    ensureproductqualityandconsistency;

    havediversifiedproductionandmarkets;

    accessnewtechnologies,financialservicesandcosteffectiveinputs;and

    processproduce.

    Theseareallservicesthatcanbeperformedorenabledbyenterprisesthatspecialisein

    workingwithsmallholders.ThisrolecansometimesbeperformedbyaPO,butitoftenneeds

    aseparateenterpriseinordertofocusandbuildexpertise.Thiscanbeperformedbyaprivate

    enterprisewith

    asocial

    vision

    or

    aproducer

    owned

    enterprise.

    Theseintermediarieswilloftenensuresmallholderscanaccesstherightservicessotheycan

    meettheprice,qualityandvolumerequirementsoftheirtargetmarkets.Anexampleisthatofa

    sugarbeetfactoryinAzerbaijan,whichopenedbankaccountsforsmallholderstoensurethey

    havecredittobuyqualityinputsatthestartoftheplantingseason.42Theycanalsobulk

    purchaseinputs,andloantheseagainstfutureorders.Overall,suchintermediariescansupply

    servicesorenableaccesstoservicesnecessaryforsmallholderstoaccessmodernmarkets.

    OxfamsEnterpriseDevelopmentProgramme(EDP)issupportingandinvestingin17

    specialisedintermediariesorserviceproviders.43Thisprovidesanopportunitytomeasurethe

    successoffocusingonthesekeymarketactors.In2010,forexample,therevenuesofthe

    smallholderswithin

    the

    primary

    POs

    increased

    by

    an

    average

    of

    39

    per

    cent,

    while

    the

    number

    offarmermemberssupplyingthemhasincreasedby28percentsinceOxfamsintervention

    began.

    TheAmhararegioninEthiopiaprovidesaninterestingexampleofhowOxfamhas

    supportedanenterpriseinperformingthespecialisedfunctionofanintermediary.Ambrosia,

    aprivatelimitedprocessorthattradesininternationalmarkets,hasbuiltatrainingcentrethat

    offersproducersinaremotefoodinsecureareaofEthiopiaqualityassuranceandbeekeeping

    techniques,sharinginitialtrainingcostswithOxfam.Farmerswhopreviouslyproduced

    smallquantitiesoflowqualityhoneyhavesincequadrupledtheiroutputandarenow

    producinghoneyforexporttotheFrenchmarket.Anotherexampleofaspecialised

    intermediaryisdescribedinCaseStudy1,below.

    Case Study 1: Diversifying crops for cotton producers in India44

    In South India, Oxfam helped cotton farmers convert to organic and Fairtrade-certifiedcotton, which reduced input costs and improved farm health and labour conditions. The initialincome gains were roughly 20 per cent, relative to conventional farms. Subsequently, Oorvi,a specialised intermediary that facilitates deals between farmers and buyers, developed arelationship with an Indian company that wanted organic sesame. After four years ofdiversifying into sesame, ochre, and other products, producers trading with Oorvi hadincreased their incomes by 112 per cent, while local cotton farmers not trading with Oorvihad increased their incomes by only 23 per cent in the same period. This experience andothers like it have led Oxfam to shift focus away from single value chains, to instead look atlarger market systems that encompass multiple sectors.

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    Innovative product and service providers

    Creatingnewservicescanbringpreviouslymarginalisedproducersintothemarket.

    However,itisoftenmoreeffectivefortheseservicestobeprovidedbyaseparateenterprise

    totheintermediary.Thiscanbeaspinofffromtheintermediarydescribedabove,ora

    completelyindependententerprise.However,inthissituation,theintermediarywouldcontinuetolinksmallholderstooutputmarketswhileprovidingotherspecialisedservices.

    AnexampleofthiscomesfromEthiopia,whereOxfamissupportingaproducerowned

    enterprise,Zembaba,tosetupabeehivemanufacturingenterprise.Thisisseparatefromits

    roleasaspecialisedintermediary,whichisfocusedonfindingnewmarketsforhoney

    producers.Priortothisintervention,hivesproducedbylocalcarpenterswerethewrong

    dimensions,meaningabeecolonywouldnotsettleinthem.Oxfamprovidedamixofgrants

    andloansforequipment,salaries,andworkingcapitaltoZembaba.Thesehivesdoubled

    productivity,whileenablingwomentobecomebeekeepersbyovercomingtheneedtoclimb

    treestoharvestwildhoney,whichisbothdangerousandculturallyinappropriatefor

    women.45

    Anotherexampleofanenterprisethatgivesmarginalisedgroupsaccesstocriticalbusiness

    servicesisoutlinedinCaseStudy2,below.

    Case Study 2: Transforming savings into enterprises and electricityin Bougara, Mali46

    Saving for Change (SfC) is a savings group programme supported by Oxfam and Freedomfrom Hunger. SfC began in Mali in 2005, and now reaches over 300,000 women in thatcountry. It has also expanded to Cambodia, Senegal, El Salvador, and Guatemala. SfCanimators work in villages to organise women into savings groups of 2025 members. Thewomen meet weekly and pool their savings, which can be different amounts, based on theirincomes. Once this money has formed a large enough pool, the women lend it to each otherto expand or start businesses, or to meet other needs. The loans are repaid with interest,

    and at the end of the year the fund is divided, and each woman gets her savings back withthe accumulated interest.

    After saving for one year, members of Benkadi, an SfC group in Bougara, Mali, took an85,000 CFA (West African Franc) collective loan from their fund to construct a work stationfor a grinding mill. Group members collectively reimburse their fund on a monthly basis fromprofits received through the use of the mill.

    Recently, the group has taken out another loan to purchase an electrical generator, fiveploughs, and a motor pump. Benkadi plans to pay back the loan by renting out the ploughsduring the rainy season. Members are in the process of constructing an electricity station fortheir generator, which they plan to make available for a small fee to everyone in thevillage. Once they have repaid these two loans, the group plans to purchase two bulls to rentout with the ploughs. This is an example of how a womens savings group can develop

    collective enterprises that improve the livelihoods of its members and also benefit the largercommunity.

    Innovative partnerships and business models that empower smallholders

    Inmanyruralareas,smallholdersareunabletoaccesscriticalfinancialservicesbecause

    financialmarketsdonotexist.AninnovativecollaborationbetweenOxfam,theglobalre

    insurancecompanySwissRe,thegovernmentofEthiopia,theRockefellerFoundation,the

    WorldFoodProgramme,andothershasdevelopedanewbusinessmodelandprogrammeto

    meettheneedsofruralfarmers,describedinCaseStudy3.

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    Case Study 3: Risk management andweather insurance for rural farmersin Tigray, Ethiopia47

    Oxfams Rural Resilience Initiative (R4 for short), first piloted in Tigray, Ethiopia in 2009 andnow expanding globally, includes four key components: reduction of the risks that

    accompany climate change (i.e. the increased frequency and intensity of droughts or floods)by improving the management of local resources; weather insurance designed to cover avariety of crops, guaranteeing farmers a pay-out if bad weather ruins their harvests; betteraccess to credit, which allows farmers to make smart investments in items such as seedsand fertilisers; and savings that can serve as a buffer against hard times. During the 2011agricultural season, the programme expanded to 43 villages, reaching more than 13,000households in Ethiopia, up from 1,300 households in 2010.

    R4 is linked to Ethiopias Productive Safely Net Programme, a food security programme thatcovers 8 million chronically food-insecure households. This enables marginalised farmers topay their insurance premiums with labour by working on community projects. The insuranceis offered by local insurance companies, leading to the development of a local agriculturalinsurance market.

    R4 ensures that women and female-headed households are involved in programme designso that programmes meet their needs. It also incorporates key considerations ofenvironmental sustainability, making it an example of how a market-based programme canaddress power, genderequity, and eco-sustainability.

    InnovationsinbusinessmodelsandprogrammingsuchasR4areneededtocombatthe

    manifoldchallengesfacingruralproducers,includingclimatechange,volatilemarkets,and

    theabsenceoffinancialservicesthatmeettheirneeds.R4isahybridapproachwhichchanges

    amarketsystembutwhichalsoincludesacriticalsocialsafetynetcomponenttoensurethat

    themostmarginalisedarenotexcluded.

    Making new business models work for women

    Thereneedstobeanactiveefforttoprovidewomenwithdecisionmakingrolesinnew

    enterprises.ThesamebarriersthatwomenfaceingainingavoiceinPOsexistin

    producerownedenterprises.Infact,thesebarrierscanbeworseinsuchenterprises,as

    theyarehigherupthevaluechain,wherewomentendtohaveanevensmallerpresence.

    However,theestablishmentofsuchenterprisescanbeanopportunitytobreakdown

    existingpowerdynamicsandshakeupthemarketsystem.Anexampleofthekindof

    opportunitythattheseenterprisescanpresentforwomenisdescribedinCaseStudy4,

    aboutaspecialistintermediaryinEthiopia.

    Case Study 4: Promoting womens role in processing and trading in theAssosa enterprise in Ethiopia48

    In Ethiopia, Oxfams Enterprise Development Programme is supporting Assosa, an oil-producing enterprise that is starting to process its own seeds and capture higher returns. Theprogramme is financing the purchase of a processing machine, providing working capital,and contributing to specific salaries.

    Assosa operates in a context of high gender inequality, which is deeply rooted in local cultureand social norms. Oxfam is supporting women in gaining a greater role in processing,trading, and distribution. This includes support for womens leadership in the distribution ofsesame oil, which was agreed as an additional activity to promote womens economicempowerment. It also promotes more equal gender relations through workshops,communication, and campaigns, while facilitating access to services such as finance,research, and agricultural extension for women. Since 2009, womens membership in thePOs that comprise Assosa has risen from 2 per cent to 21 per cent.

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    Principles of new business models

    WorkingwithSustainableFoodLab,Oxfamhasidentifiedfiveprinciplesfordevelopingnew

    businessmodels,describedintheBriefingforBusinesspaperThinkBig,GoSmall.49Thesefiveprinciplesunderpinsustainabletradingrelationshipswithsmallholdersandshouldbe

    turnedintoagreedcomponentsofanyformalorinformalcontract:

    Valuechainwidecollaborationandinnovationtoaddressissuesrelatedtodoing

    businesswithsmallholders;

    Marketlinkagesthroughspecialisedintermediaries;

    Fairandtransparentgovernancethroughthesupplychain(includingclarityfrom

    theoutsetontermsoftrade,qualitystandardsandpricingstructure);

    Equitablesharingofcostsandrisks(e.g.microinsurance,supplychainrisk

    managementfunds,andsharedinvestmentstoimprovethefunctioningofthe

    chain);and

    Equitableaccesstoservices(includingtechnicalexpertise,businesstraining,

    agriculturalinputsandappropriatefinancing).

    AnexampleofapartnershipthatpromotessomeoftheseprinciplesisthatbetweenOxfam,

    theglobalreinsurancecompanySwissRe,theRockefellerFoundation,theWorldFood

    Programme,andothers.ThispartnershiphasresultedinsmallholdersinEthiopiagaining

    accesstoinsurancethatprotectstheirlivelihoodsintheeventofdroughtorflooding.50

    Similarly,inIndia,OxfamfacilitatedapartnershipbetweenalocalNGOandaninsurance

    companytoextendmicroinsurancetosmallholderfarmers.Suchinnovativebusinessmodels

    areneededtocombatthechallengesfacingruralproducersresultingfromclimatechange,

    volatilemarkets,andtheabsenceoffinancialservicesthatmeettheirneeds.

    iii)Precommercialinvestment:transferringassetsandbuilding

    capacity

    Marginalisedgroupsoftenlacktheassetstoparticipatemeaningfullyinmarkets.Theseassets

    canincludelandtitles,cashtobuyinputs,knowledgeofhowtogrowanewcrop,basic

    irrigationequipment,orsimpletools.AstheexampleinFigure2shows,nearlyhalfofthose

    workinginmaizeineastandsouthernAfricatradedintolocalmarkets,butwereunableto

    sellintomodernmarkets.Precommercialinvestments,whetherintheformofcash,inputs,

    ormachinery,maybeneededtoassistthesepeople.Astrictlyfacilitativeapproachmayhelp

    onlythosewhoaremarketready,butOxfambelievesthatthisisnotsufficient.Whileopportunitiescanbecreatedthroughenterprisedevelopment(suchasthenewbeehive

    enterprisedescribedabove),thiswouldnotreachmostofthe4050percentofpeopleshown

    inFigure2whoareconsideredsubsistencefarmers.Itcanalsopotentiallymissthe2030per

    centwhoonlyoccasionallyconnecttomarkets.

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    Figure 2: Can market-based livelihoods programmes go deeper and helpthe more marginalised and vulnerable?51

    Forexample,peopledisplacedbyconflictmayrequiredirectassistancetobeableto

    participateinmarkets.InnorthSriLanka,anOxfamprogrammehelpedcommunitiesto

    acquiretheassetsandskillsneededtoengageinthedairyvaluechain.Throughthepilot

    project,peoplereturninghomeaftertheconflictweregivenacow,undertheconditionthat

    thecowsfirstcalfwouldgobackintoarevolvingfundandwouldthenbeprovidedtoother

    community

    members

    under

    the

    same

    condition.

    The

    programme

    also

    provided

    and

    facilitatedcapacitybuildingforvillagecooperativestoimprovebreedingpractices,fodder

    production,marketing,andgenerallivestockmanagement.

    Whilemanyproponentsofmarketbasedapproachescriticiseassettransferprogrammesas

    unsustainableduetotheircost,asthiscasedemonstrates,aninitialgrantofthefirstcowswas

    critical.Thedesignoftheprogrammewassustainable,becauseitallowedpeopletoaccess

    loanstobuyadditionalcowsandliftthemselvesoutoftheassetlessandpowerlesssituation

    thatresultedfromconflict.Sofar,thishasresultedinanadditional1,700farmersparticipating

    inalocalproducerowneddairyenterprise.52Aseparateexampleofassetprovision,one

    specificallytargetingwomen,ishighlightedinCaseStudy5.

    Case Study 5: Providing water tanks to women in Chawa, Rajasthan,India53

    In Chawa, an arid village in Rajasthan, women from lower castes had to walk for two hourseach day to collect water from a pond 5km away, because the only closer source, a well,was reserved for upper caste families.

    The programme supported by Oxfam gave lower-caste women prominent roles in procuringthe materials to construct and repair rainwater harvesting tanks. The tanks, which were thefirst asset that many of the women had owned, provided them convenient access to water fortheir households and livestock, as well as agricultural use. It also saved them hours eachday.

    As women travelled to procure supplies and supervised the construction of the tanks, theygained mobility and status within their households and community. Women were also trained

    in masonry and agricultural techniques, giving them access to work that is normally done bymen, and which has the potential to earn them cash incomes.

    Trends and Transformation in East andSouthern African Staple Markets,

    Michigan State University

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    As this asset transfer programme demonstrates, the donation of materials and training toconstruct an asset can vastly improve peoples lives and contribute to their productivity andlivelihood opportunities. Also, it can empower marginalised groups facing caste and genderbarriers, and expand the opportunities for mobility and decision-making within householdsand communities by promoting different gender behaviour and freeing womens time.

    Anothercommonchallengewithassettransferprogrammesisdifficultyinensuringthat

    assetswillbeusedtogeneraterevenue.Acommonquestionis,Ifwegiveafamilyadairy

    cow,howdoweknowtheywontslaughterandeatit?Oxfamrecognisesthisdilemma,and

    seekstofacilitateassettransfersfromwithinexistingmarketsystems,wherepossible.

    However,thishasprovedchallenging,aspeoplewholackassetsdonotpresentanenticing

    businessopportunityforprivatesectoractors.Whereafacilitativeapproachcannotprovide

    theseassets,Oxfamandotherorganisationscontinuetoprovideassetstohelpthosewhoare

    unabletoproducesurplusesfortradeormeetthedemandsofthetargetmarket.However,

    theprovisionofsuchassetsisaccompaniedbyanexitstrategy,soasnottocreatea

    relationshipofdependence.

    Asset transfers to women

    Womenindevelopingcountriesareoftenmarginalisedandassetpoor.Thecasefor

    empoweringthemthroughassettransfersiscompelling,asexistingsocialstructuresdonot

    allowthemtoacquiretheassetsnecessarytobecomeempoweredthroughmarkets.

    Providingwomenwithphysicalassetsandaccesstocommunityassetsiscritical;thiscould

    beintheformoftheirfirstcow,accesstolandorwater,orprocessingmachinery.Asset

    transferscanalsofreeuptheirtime,sothattheycanparticipatemoreformallyinfarmor

    enterprisedevelopment.Intangibleassets,suchaseducationandskills,arealsocritical.As

    womeninmarginalisedcommunitiesarefrequentlydeniedaccesstoeducationandskills

    training,programmesneedtofocusonprovidingthis.Finally,alackofsocialcapitalor

    influenceover

    others

    can

    necessitate

    confidence

    building

    to

    help

    women

    to

    speak

    out

    and

    voicetheirconcernsthrough,forexample,theestablishmentofwomenonlyorganisations.

    iv) Giving producers a voice in governance and investment:changing the rules of the game

    Thereisanimportantroleforgovernmentsinchallengingthestatusquoofmarketspower

    dynamics.Publicinvestmentcanbuildthecapacityofrelativelypowerlessfarmers,increase

    theirmarketprofile,ortransferassetstothem.Governmentscanalsobuildroadsand

    businessinfrastructurethatprovidemoremarketoptionsforproducers.Lastly,the

    governmenthasacriticalroleinregulatingmarketsandmaintainingafairlegalsystem.This

    can

    include

    ensuring

    that

    market

    power

    is

    not

    abused

    by

    powerful

    companies,

    labour

    rights

    arerespected,contractsarehonoured,andproductsafetyrequirementsaremet.

    Thereisaneedforplatformsforproducerstopromotetheirinterestsandinfluencepolicies

    withlocal,regional,national,andeveninternationalpublicbodies.Throughtheseplatforms,

    smallholderorganisationscaninfluencegovernmentdecisionmakingaroundpoliciesand

    practicesthatcaneitherenableorinhibittheactivitiesoftheirmembers.POscanalso

    mobiliseproducerstodosomethingaboutotherproblemsthataffectthewidercommunity,

    suchastheprovisionofessentialgovernmentservices.

    TherearetworeasonswhyOxfammightactivelysupportsmallholderstoinfluencetheir

    enablingenvironment.Firstly,effectivelobbyingandadvocacyworkrequiressignificant

    skillsandresources.Secondly,theplatformsthatbringpolicymakersandsmallholders

    togetheroftendonotexist.ItisoftennecessaryfordonorsandNGOstoprovidetrainingto

    smallholderrepresentativesandtosupporttheestablishmentofappropriateplatforms.

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    AnexamplecomesfromBogot,Colombia,whereOxfamfacilitatedmeetingsbetween

    representativesoflocalPOsandthecitysgovernment.Oxfamalsoconductedresearchthat

    supportedtheadvocacyeffortsofthePOsandaddeditsvoicetothedebate.Theresultwasthat

    Bogotsmayorandgovernmentagreedtoincorporatetheprincipleofafairpriceintothe

    citysfood

    supply

    plan.

    The

    mayor

    also

    agreed

    to

    increase

    investment

    to

    boost

    production

    in

    neighbouringruralmunicipalities,togetherwithinvestinginlinkingsmallholderstomarkets,

    inparticularthroughinfrastructuresuchasstallsforfarmersmarketsinthecity.54Another

    exampleofcollectiveactionresultinginchangesingovernmentpolicyisprovidedinCase

    Study6.

    Case Study 6: Fishing communities in India assert their traditional rightsover livelihoods resources55

    Villagers in the Tikamgarh and Chattarpur districts of Madhya Pradesh traditionally had theright to fish the regions ponds, but had lost control of these valuable resources to landlordsand contractors. Despite encountering violent opposition, the fishers began organising toreclaim control of the ponds. With Oxfams support, they established village co-operatives

    and formed a federation that gave a strong voice to the regions fishing communities. By2008, fisher co-operatives controlled 151 ponds, with nine run by womens groups. In 2008,their campaign persuaded the state government to revise its fisheries policy. This resulted ina new law that protects the rights of traditional fishing communities, and contains provisionsthat should help to improve livelihoods in the drought-hit region.

    Womens voices in changing the rules of the game

    Asdiscussedabove,supportingwomentohaveagreatervoiceindecisionmakingwithin

    POsisextremelychallenging.Thesamebarriersthatinhibitwomenfromhavingasayinthe

    daytodayoperationsofPOsalsoapplytotheadvocacyroleofPOsandotherinstitutions

    representingsmallholders.Theplatformsthatbringmultipleactorstogetherpresentsimilar

    problemsforwomen.Wheretheyaretraditionallydisempoweredandnotallowedto

    performdecisionmakingroles,theyareoftenunabletovoicetheirviewsorrepresentthe

    concernsoftheircommunities.

    Itisimportantthattheuniquebarriersthatwomenfaceareaddressedbyadvocacyefforts.

    Theseincludealackofaccessto,andrightsover,land.Theyalsoincludesafetyissueson

    availabletransportandalackoflightingandwomenstoiletsinpublicmarkets.Womenalso

    traditionallyhavelessaccesstopublicservices,suchaseducation(asevidencedbylower

    literacyratesthroughoutthedevelopingworld)andagriculturalextensionservices.Allthis

    requiresconcertedlobbyingandadvocacybygroupsthatrepresentsmallholdersindealings

    withgovernmentofficials.

    Programmesneedtofocusongivingwomenavoicesothattheycangetpublicinstitutionsto

    startaddressingtheirconcerns.Thiscanstartwiththepromotionofwomenonlygroups,whichallowwomentodeveloptheirleadershipskillssothattheycanparticipatemore

    effectivelyinmixedgendergroups.

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    4. The need for complementary interventionsoutside the market system

    Themarketsystemdoesnotaffectthelivesofmarginalisedpeopleinisolation

    householdandenvironmentalsystemsalsoshapetheirlivesandinteractwithmarket

    systems.Inordertoachievegreaterimpact,marketbasedprogrammesmaybe

    complementedbyinterventionsintheseothersystems.

    Householdsystems56

    Householdsarecomplexsystemsthatareinfluencedbyseveralfactors:assets,income

    andsubsistenceactivities,intergenerationalandculturalfactors,andgendernorms,

    amongothers.Problemsinahouseholdsystemnotonlyaffectitsmembers,butalsotheir

    abilitytoreachtheirmaximumpotentialwithinthemarketsystem.Forexample,social

    problems,suchasgenderbasedviolence(GBV),whicharecriticaldevelopmentissuesin

    theirownright,mayalsoreducetheabilityofthoseaffectedtoengageproductivelyin

    thelabourmarket.57WhileGBVoftentakesplacewithinahouseholdsystem,italsohasa

    significantbearingonthemarketsystem.Forexample,inElSalvador,Oxfamworkswith

    activists,partnerorganisations,mediaorganisations,andpolicymakerstoeducate

    peopleabouttheproblemofGBVandtochangethewaysthatlawmakersandthejustice

    systemasawholehandlegenderbasedcrimes.58Suchprogrammesmayleadtogreater

    productivityinmarketsystems,eventhoughthisisnottheirprimarygoal.

    Householdsystemsmayalsobenefitfromassettransferprogrammes.Interventionsatthe

    householdlevelcanbenefithouseholdmemberswhetherthereisamarketimpactornot.

    Theyarealsolikelytohavepositiveknockoneffectsonmarketsystems.Forexample,

    programmesthat

    provide

    fuel

    efficient

    stoves

    can

    reduce

    illnesses

    related

    to

    indoor

    air

    pollutionandthetimespentgatheringfuel,leavinghouseholdmembershealthierandwith

    moretimetoengageinincomegeneratingactivities.

    InNepal,alongsideeffortstocreatePOs,Oxfamhassupportedthecreationof

    ParticipatoryLearningCentres(PLCs)forwomen.Thesearespacesforcollectiveanalysis

    andsolidaritythatoftenleadtohighermotivation,socialmobilisation,andthe

    developmentofwomensleadership.Thedevelopmentofleadershipskillsamong

    womencanhaveanimpactontheirparticipationanddecisionmakingwithin

    households,andmaytranslateintopowerwithinmarketsystems.59

    Environmentalsystems

    Environmentalsystemsarecriticaltopeopleswellbeing,andprogrammesaddressing

    naturalresourcemanagementandotherenvironmentalissuescanbeimportantin

    helpingcommunitiesmeettheirlivelihoodandhealthneeds.Forexample,inEthiopia,

    Oxfamworkswithlocalcommunitiestoimproveaccesstowaterforirrigation,livestock

    watering,anddrinkingindroughtpronestates,suchasTigray,AmharaandOromiya.60

    Thehealthandsustainabilityofenvironmentalsystemsisalsoimportantbecausemany

    marketbasedlivelihoodsdependonnaturalresources.Thoselivelihoodswillonlybe

    sustainableifmarketactivitydoesnoterodesuchnaturalresources.

    Itisimportanttoinvestigatethepossibleimpactsofclimatechangeonenvironmental

    systemsbeforemarketbasedagriculturalprogrammesareimplemented.InLatin

    America,OxfamisworkingwiththeSustainableFoodLabandtheInternationalCenter

    forTropicalAgriculture(CIAT)todeterminewhichcropswillbesuitableintheregion

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    underdifferentclimatechangescenarios.Oxfamanditspartnersthensharetheir

    findingswiththeproducersinvolvedintheirmarketbasedlivelihoodsprogrammesso

    thattheycanmakeinformeddecisionsaboutthecropsinwhichtheywanttoinvest.This

    isagoodexampleofhowamarketbasedprogrammecanintegrateanappreciationof

    ecosystemsto

    create

    asustainable

    solution

    for

    both

    livelihood

    needs

    and

    climate

    change.61

    Marketsystemsbenefitfromnonmarketbasedinterventions

    Interventionsthatarenotmarketbasedmayimprovethefunctioningofmarketsystems

    formarginalisedgroups.Forexample,manywomenincoffeeproductioninEthiopiaare

    unabletobecomebusinessorfarmmanagersbecauseoflimitedliteracyandnumeracy.

    Witharegionalagriculturalministry,Oxfamdevelopedanagronomictrainingmodule,

    whichalsofocusedondevelopingliteracyandnumeracyamongwomen.Aftertwo

    hoursaweekoftrainingoverasevenmonthperiod,thewomenhaddevelopedbasic

    literacyandnumeracy,andthetrainingcontributedtothedoublingand,insomecases,

    triplingof

    farm

    income.

    62

    Interventionsintheareaoflabourrightsarealsocriticaltoreachingmanymarginalised

    workers.Workersonsmallholderfarmsareoftenthepoorestandmostmarginalisedpeople

    inruralcommunities.Marketbasedprogrammescanincorporatemechanismsthatpromote

    goodlabourpractices,andpartnerwithprogrammesthatspecificallyaimtoimprove

    workingconditionsonfarmsandotherworkplaces,suchasfactories.

    Marketbasedprogrammesmustworkwith,andbecomplementedby,programmesthat

    addresshouseholdandenvironmentalsystems,inordertobesociallyecologically

    sustainable,respectively.Longtermdevelopmentwillbestrongandsustainableonlywhen

    allthreesystemsarefunctioningwell.

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    5. Challenges and recommendationsWhilemarketbasedapproachescannotaddressallpovertyrelatedissues,theycanplaya

    criticalroleinrebalancingpower.Thiscanresultinwomenandmarginalisedsmallholders

    accumulatinggreater

    power.

    In

    order

    to

    do

    so,

    they

    need

    to

    evolve

    and

    become

    more

    effectiveatseekingoutinterventionopportunitiesthatshakeupexistingpowerdynamics.

    Thiswillrequirebothinnovationandflexibilityinhowprogrammesaredesignedand

    implemented,sothattheycanaddressthreekeychallenges:

    Empoweringwomenthroughmoreeffective,sustainable,andcatalyticinterventions;

    Connectingsmallholderswithmorelucrativemarkets(frequentlymoredomestic

    thaninternational)withoutcreatingdependentbusinessrelationships;and

    Promotingsustainableagriculturewhileconnectingsmallholderstomorelucrative

    markets.

    Recommendations

    1. Go beyond the market system

    Marketsystemstouchthelivesofallpoorwomenandmen,butthesearenottheonly

    systemswithwhichtheyinteract.Manypovertyissuescannotbeaddressedthrough

    interventionsinthemarketsystemalone.Marketbasedinterventionsshouldalsoconsider

    howtheyinterrelatewithothersystems.Importantly,thepossibilityofcomplementary

    interventionsthatarenotmarketbasedinthehouseholdandenvironmentalsystemsshould

    beconsidered.

    2. Build on catalytic events

    Majorshiftsincompetitiondynamics,technology,environment,migration,market

    regulation,governmentpolicy,andsocialdynamicsareexamplesofopportunitiesto

    interveneandrebalancepower.Wherethereisamajordisruption,lookforanopportunityto

    supportmarginalisedproducerstoacquiremorepowerinthemarketsystem.

    3. Intervene directly to disrupt the market, when simply facilitating a solution isnot an option

    Insistingonafacilitativeapproachmaymeanthatonlymarketreadyactorsaresupported.Thisisbecausemanyexistingactorsinthemarketsystemdonothavetheincentiveto

    connectwithmarginalisedproducers.Equally,programmesshouldnotplayapermanent

    roleinlinkingsmallholderstomarketsorprovidingthemwithaservice,asthisisnot

    sustainable.Opportunities

    should

    be

    sought

    for

    temporary

    market

    interventions

    that

    will

    disruptthemarketandallowmarginalisedgroups(especiallywomen)toaccumulateenough

    powertoparticipatemoreequitablyinmarkets.

    4. Use intervention points that rebalance power

    Marketsarebiased,andcanfavourmenoverwomen,andlargerbusinessesover

    smallholders.OpportunitiestosupportandestablishPOsandspecialisedsmallholder

    focusedenterprisesthatallowmarginalisedproducersandwomen toconnecttomore

    lucrativemarketsshouldbesought.So,too,shouldopportunitiesformarginalised

    smallholders(particularlywomen)tovoicetheirneedsforfavourablegovernanceand

    investment(e.g.bysupportingplatformsthatconnectthemwithpublicofficials).Lastly,

    thosewhohavetoofewassets(particularlywomen)shouldbesupportedtoparticipate

    effectivelyinmarketswiththeassetstheyneed.Thisisnotaconclusivelist,soinnovateand

    lookforotheropportunitiestorebalancepower.

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    Notes

    1 R.D. Chambers, D. Narayan, M.K. Shah, and P. Petesch (2000) Voices of the Poor:Crying Out for Change, Oxford: Oxford University Press for World Bank.

    2 J. Kinsella and E. Brehony (2009) Are current aid strategies marginalising

    the already marginalised? Cases from Tanzania, Development in Practice, 19:1, 51-60,http://dx.doi.org/10.1080/09614520802576377 (last accessed 29 October 2011)

    3http://www.m4phub.org/what-is-m4p/introduction.aspx (last accessed 29 October 2011)

    4 C. Melamed, R. Hartwig, and U. Gran (2011) Jobs, Growth and Poverty: What do weknow, what dont we know, what should we know?, Overseas Development InstituteBackground Note, May 2011, http://www.odi.org.uk/resources/download/5752.pdf (lastaccessed 21 October 2011)

    5 IFAD (2011) IFAD Rural Poverty Report 2011,http://www.ifad.org/rpr2011/report/e/rpr2011.pdf (last accessed 21 October 2011)

    6 IFAD (2011) The Future of World Food and Nutrition Security, http://www.ifad.org/hfs/(last accessed 21 October 2011)

    7 S. Meikle, T. Chambers, A. Frediani, and T. Goodfellow (2011) Global Urban Market-Based Livelihoods in Oxfam GB: Lessons and Experiences from Kenya, Bangladesh,Guatemala, Colombia, Haiti, and Russia, unpublished document

    8 World Bank (2011) World Development Report 2012: Gender equality anddevelopment, http://siteresources.worldbank.org/INTWDR2012/Resources/7778105-1299699968583/7786210-1315936222006/Complete-Report.pdf (last accessed 27October 2011)

    9 D. Green (2008) From Poverty to Power: How active citizens and effective states canchange the world, Oxford: Oxfam International, http://policy-practice.oxfam.org.uk/publications/from-poverty-to-power-how-active-citizens-and-effective-states-can-change-the-w-115393 (last accessed 1 November 2011)

    10 For further reading, see: http://www.rootcapital.org; http://www.acumenfund.org ;http://www.aspeninstitute.org/policy-work/aspen-network-development-entrepreneurs ;http://omidyar.net/

    11http://www.aravind.org/(last accessed 1 November 2011)

    12 M. Porter (1998) Competitive Advantage: Creating and Sustaining SuperiorPerformance, New York: Free Press.

    13 J. Humphrey and L. Navas-Alemn (2010) Value Chains, Donor Interventions andPoverty Reduction: A Review of Donor Practice, Institute of Development StudiesResearch Report 63, Brighton: UK. http://www.ids.ac.uk/files/dmfile/rr63.pdf (lastaccessed 21 October 2011)

    14 Springfield Centre (2010) Alliances Case study 43,http://www.springfieldcentre.com/publications/sp1101.pdf (last accessed 21 October2011)

    15 R.D. Chambers et al (2000), op. cit.

    16 S. Baden (1998) Gender issues in agricultural liberalisation BRIDGE Development-Gender Report 41,http://www.bridge.ids.ac.uk/reports/re41c.pdf (last accessed 27October 2011)

    17 Diagram provided by Sustainable Food Lab (www.sustainablefoodlab.org)

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    MakingMarketsEmpowerthePoor,OxfamDiscussionPaper,November2011 25

    18 UN Food and Agriculture Organization (2011) The State of Food and Agriculture 20102011: Women in Agriculture: Closing the Gender Gap for Development, FAO Home,http://www.fao.org/docrep/013/i2050e/i2050e00.htm (accessed 1 November 2011)

    19 Women lacking ownership and control over productive resources and family assets islinked to malnutrition and hunger: countries where women lack any right to own land orlack any access to credit have on average 60% and 85% more malnourished children,respectively. See OECD (2010) Gender Inequality and the MDGs: What are the MissingDimensions?, http://www.oecd.org/dataoecd/11/56/45987065.pdf (last accessed 1November 2011)

    20 UN Food and Agriculture Organization (2011), op. cit.

    21 Correspondence with Oxfam staff

    22 Unpublished internal documentation

    23 Oxfam (2011) Womens Economic Leadership, http://policy-practice.oxfam.org.uk/our-work/food-livelihoods/womens-economic-leadership (last accessed 1 November 2011)

    24 http://growsellthrive.org/page/dairy-colombia (last accessed 1 November 2011)

    25 Enterprise Development Programme (2011) Annual Review, Oxford: Oxfam GB,http://www.oxfam.org.uk/edp(last accessed 1 November 2011)

    26 Programme Insights (2011) Effective Cooperation: A new role for cotton producer co-ops in Mali, http://policy-practice.oxfam.org.uk/publications/effective-cooperation-a-new-role-for-cotton-producer-co-ops-in-mali-133381 (last accessed 1 November 2011)

    27Ibid.

    28 R.D. Chambers et al(2000), op. cit.

    29 C. Penrose-Buckley (2007) Producer Organisations: A Guide to Developing Collective

    Rural Enterprises, Oxford: Oxfam GB,http://www.oxfam.org.uk/resources/downloads/produorgs_book.pdf (last accessed 1November 2011)

    30 Correspondence with Oxfam staff

    31 C. Penrose-Buckley (2007), op. cit.

    32 L. Pandolfelli, R. Meinzen-Dick, and S. Dohrn (2007) Gender and Collective Action: AConceptual Framework for Analysis, CAPRi Working Paper No. 64, pp.6-41, WashingtonDC: International Food Policy Research Institute,http://www.capri.cgiar.org/pdf/capriwp64.pdf (last accessed 1 November 2011)

    33 P. Develtere, I. Pollett, and F. Wanyama (eds) (2008) Cooperating Out of Poverty The Renaissance of the African Co-operative Movement, Geneva: International Labour

    Office (ILO), http://www.ica.coop/outofpoverty/regions.html (last accessed 1 November2011)

    34 DFID (2004) The Use of Civil Society Organisations to Raise the Voice of the Poor inAgricultural Policy, Working Paper, September 2004, London: Department forInternational Development, pp.22-23.

    35 C.D. Deere and M. Leon (2001) Institutional reform of agriculture under neo-liberalism:The impact of womens and indigenous movements, Latin American Research Review,36(2), pp.31-64.

    36 E. Gotschi, J. Njuki, and R. Delve (2008) Gender equity and social capital insmallholder farmer groups in central Mozambique, Development in Practice, 18:4,pp.650-657.

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    MakingMarketsEmpowerthePoor,OxfamDiscussionPaper,November2011 26

    37 Institut de Recherches et dApplication des Mthodes de Dveloppement (2002)External evaluation of the Programme of Oxfam Haiti: Support to the Coffee Eco-system Appui lcosystme Cafier, December 2002

    38 Oxfam is currently implementing the Researching Women's Collective Action project,which is ongoing until September 2012, to gather evidence on effective ways oforganising for women smallholders to enhance their incomes, asset ownership andempowerment. The project also identifies and promotes innovations and effectivestrategies of support to women's collective action. For more details, see:www.womenscollectiveaction.com .

    39S. Anand and G. Sisay (2011) Engaging Smallholders in Value Chains: Creating newopportunities for beekeepers in Ethiopia, http://policy-practice.oxfam.org.uk/publications/engaging-smallholders-in-value-chains-creating-new-opportunities-for-beekeepers-133380 (last accessed 1 November 2011)

    40 R.K. Ram and M. Lundy (2010) Smallholder Farmer Organizations: Developments andTrends Since the 1980s, unpublished report by CIAT for Oxfam.

    41 C. Penrose-Buckley (2007), op. cit.

    42 Correspondence with Oxfam staff

    43 Enterprise Development Programme (2011) op. cit.

    44 J. Korenblum (2009) Evaluation of Stories of Change: Cotton Textile Supply ChainProject in India, Evaluation Reports, Oxford: Oxfam GB, http://policy-practice.oxfam.org.uk/publications/evaluation-of-stories-of-change-cotton-textile-supply-chain-project-in-india-119472 (last accessed 1 November 2011)

    45 S. Anand and G. Sisay (2011) op. cit.

    46 http://www.oxfamamerica.org/issues/community-finance/background (last accessed 1

    November 2011)47 Oxfam America (2011) Insurance and rural resilience,http://www.oxfamamerica.org/issues/insurance (last accessed 1 November 2011)

    48 Grow Sell Thrive (2010) Sesame Seed Value-Chain Ethiopia,www.growsellthrive.org/page/sesame-ethiopia (last accessed 1 November 2011)

    49 D. Bright and D. Seville (2010) Think Big Go Small: Adapting business models toincorporate smallholders into supply chains, Briefings for Business, Oxford: Oxfam,http://policy-practice.oxfam.org.uk/publications/think-big-go-small-adapting-business-models-to-incorporate-smallholders-into-su-114051 (last accessed 1 November 2011)

    50 Oxfam America (2011) op. cit.

    51 Diagram provided by Sustainable Food Lab (www.sustainablefoodlab.org)

    52 Enterprise Development Programme (2011) op. cit.

    53 Oxfam (unpub.) Making a Difference A Story from Rajasthans Thar Desert, internalcase study report

    54 A. Pesquera (2011) Leading by Example: How cities came to link rural producers withurban food markets in Colombia, Programme Insights, Oxford: Oxfam, http://policy-practice.oxfam.org.uk/publications/leading-by-example-how-cities-came-to-link-rural-producers-with-urban-food-mark-133410 (last accessed 1 November 2011)

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    Oxfam GB November 2011

    Oxfam GB is a member of Oxfam International. Registered charity no. 202918.

    This paper was written by Erinch Sahan and Julia Fischer-Mackey with contributions from DavidBright. Oxfam GB also acknowledges the assistance of Chris Jochnick, Sally King, Chika

    Charles, Sally Baden, Duncan Green, Joel Rodriguez, Jodie Thorpe, Mara Bolis, RobertoBerbieri, Frank Michielsen, Monique Mickhail, Caroline Green, Don Seville, Stephanie Daniels,Hugo Sintes, Colin McQuistan, Vanita Suneja, and Tom Fuller in its production.

    The text may be used free of charge for the purposes of advocacy, campaigning, education, andresearch, provided that the source is acknowledged in full. The copyright holder requests that allsuch use be registered with them for impact assessment purposes. For copying in any othercircumstances, or for re-use in other publications, or for translation or adaptation, permissionmust be secured and a fee may be charged. E-mail [email protected]

    For further information on the issues raised in this paper please [email protected] or go to www.oxfam.org.uk.

    The information in this publication is correct at the time of going to press.

    Published by Oxfam GB under ISBN 978-1-78077-015-4 in November 2011. Oxfam GB, Oxfam

    House, John Smith Drive, Cowley, Oxford, OX4 2JY, UK.

    Oxfam is a registered charity in England and Wales (no 202918) and Scotland (SC039042).