Moving from Livelihoods Approach to Market Systems Approach

(Group Work)

Projects’ Approaches Economic Development

Country Approach Projects' Examples

Afghanistan SLA Potato value chain/food security

Bangladesh SLA Food Security

M4P Samriddihi (Prosperity)

Nepal SLA Employable skills +Vegetable VC

M4P Banana VC +Essential Oil

Laos SLA Tea Value Chain

Projects’ Approaches Economic Development

Country Approach Projects' Examples

Bhutan SLA Food Security

M4P Dairy & Vegetables

Tajikistan M4P LMD Project

SLA +M4P (Mix)

Organic cotton VC

Pakistan M4P Coriander VC

SLA +M4P (Mix)

Honey VC

Limitations of SLA

• Create Dependency Syndromes

• Less cost effective

• Limited Geographical Scale

• Rigid Approach (Not Flexible)

Required Conditions for SLA• Effective in post Emergency/Humanitarian

Environment

• Weak Private sectors

• Existence of marginalized groups

• Having intentions of addressing Social as well as Economic issues

• Best for achieving Quick but short impacts

Strengths and weaknesses of M4PStrengths Weaknesses

Up Scaling Potential Time consuming (lengthy)

Focus on causes rather than symptoms (Market Failures)

Less predictable in terms of end results, scope

Provide Enabling environment for poor to be competitive

Focus on enhancement Financial Capital (only)

Cost Effective (value for money)

Focus on sustainability (Who does and who pay)

Running two approaches as “Hybrid system”

It may run simultaneously but with the following conditions;

• Integration of sustainability and up scaling considerations in SLA from the start

• Reduce the role of Project at all possible levels using existing structures

Thanks