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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
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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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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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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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MakingMarketsEmpowerthePoor,OxfamDiscussionPaper,November2011 10
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)
55 M.F. Beg (2011) Strength in Numbers: Fishing communities in India assert theirtraditional rights over livelihoods resources, Programme Insights, Oxford: Oxfam,http://policy-practice.oxfam.org.uk/publications/strength-in-numbers-fishing-communities-in-india-assert-their-traditional-right-136134 (last accessed 1 November 2011)
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MakingMarketsEmpowerthePoor,OxfamDiscussionPaper,November2011 27
56 C. Charles (2011) Oxfam Gendered Market System Approach to Value ChainDevelopment, internal paper written for Oxfam GB
57 G. Terry and J. Hoare (eds.) (2007) Gender-Based Violence, Oxford: Oxfam GB,
http://www.oxfam.org.uk/resources/downloads/WIGAD-GBV_book.pdf (last accessed 1November 2011)
58 Correspondence with Oxfam staff
59 K. Amatya (2010) Goat rearing in Nepal - the story of Shanta Minal ,http://www.oxfam.org.uk/applications/blogs/pressoffice/2010/06/03/goat-rearing-in-nepal-the-story-of-shanta-minal/ (last accessed 1 November 2011)
60 Correspondence with Oxfam staff
61 J. Gordon (2011) Impacts of climate change on supply chains in Guatemala, Bogotaand Jamaica, CIAT Blogs, http://dapa.ciat.cgiar.org/impacts-of-climate-change-on-supply-chains-in-guatemala-bogota-and-jamaica/ (last accessed 1 November 2011)
62 Correspondence with Oxfam staff
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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).