Facilitation: How Much Does Context Matter ?

1. May 8, 2014 Facilitation: How Much Does Context Matter? Bill GrantDevelopment Alternatives Incorporated Marina KrivoshlykovaDevelopment Alternatives Incorporated

2. Overview • Facilitating adoption and crowding-in • Bay Area (Dead Show): No facilitation necessary • Rural Cambodia (USAID MSME): A light touch does the trick • Other market contexts: When light touch isn’t enough • Cases of intermediate & “heavy hand” engagement • Niger Delta (Chevron PIND/MADE) • Northern Mozambique (SDC InovAgro) • Conclusions • A framework to match your approach to your context

3. How a Change Process Starts

4. How Systems Change: The Adoption Process Speed or pace by which system players adopt new ideas Early Adopters Late Majority Laggards Early Majority Innovators SLOW FAST Innovators: High risk fits easily in comfort zone Early Adopters: Comfortable taking risk on new idea provided adoption preserves their status as “opinion leader” in community. Early Majority: Waits for others to adopt/benefit to be in comfort zone. Late Majority: Skeptics w/discomfort to adopt unless majority have done so. Laggards: Tradition bound w/ high degree of discomfort to adopt new ideas.

5. Cambodia MSME “light touch” facilitation • Constraints in swine VC: low productivity due to high mortality, • poor quality inputs, lack of knowledge, low investment • MSME facilitation strategy: • Identify early adopters - the “leading few” enterprises and individuals • Informal interest groups to discuss common problems • Identify market actors with the right incentives and then facilitate relationships - input suppliers provide technical training • Client participation based on value proposition and self-selection - no subsidies used

6. Swine Value Chain Results • Crowding in and results: • Leading farmers invest own funds to upgrade • Copycat behavior – the leading few copied by others • Crowding in of input suppliers: 14 provide embedded training without project support; 85 more serve the VC • Increased productivity: reduced mortality (50% -> 10%) • Increased farm size and profitability (2 pigs -> 46) • Increased number of swine farmers (few hundred - >4000) • Stronger horizontal relationships between farmers

7. Context for Intervention Design Strong Market Context Weak Market Context

8. Context for Intervention Design Strong Market Context Weak Market Context • Economic/purchasing power • Population density • Political Economy • Presence/dynamism of interconnected systems, service providers • Linkages to end markets • Social Cohesion

9. Context for Intervention Design Strong Market Context Weak Market Context Emerging Market Context Very Weak Market Context Stronger Market context • Economic/purchasing power • Population density • Political Economy • Presence/dynamism of interconnected systems, service providers • Linkages to end markets • Social Cohesion

10. Context for Intervention Design Strong Market Context Weak Market Context Emerging Market Context Very Weak Market Context Stronger Market context External/Heavier Hand Invest time in analysis/building relationships Invest more money to buy down risk, elicit interest More functions need to be addressed Need to work on both supply and demand side More thoughtful engagement Internal/Lighter Touch Understand the context Identify potential lead partners Stronger supporting systems Present value Proposition Low financial investment More rapid engagement from other market actors – crowding in

11. Partnership Initiative for the Niger Delta

12. Partnership Initiative for the Niger Delta Demo Pond for Increased Productivity Partnership Initiative for Niger Delta

13. Demo Pond Scale-up Model PIND Facilitate, TOT, M&E Feed Companies

14. Demo Pond Scale-up Model Smoking Kiln Manufacturers Financial Institutions PIND Facilitate, TOT, M&E Feed Companies Fisheries Extension Service Other Donors Private Consultants

16. King Frango Hatchery Outgrower scheme Service markets African Century (ACAM) Grants Advice Guarantee Advice Farmer Groups (~20 farmers each) Breeder Seed Credit Soya to Silo Purchasing and Collection Extension Business model/tools Inputs Advice Group Organization Equipment prototypes Equipment

17. Building Market for Certified Seed NGO MFI Finance Year 1 ACAM Farmers Import Year 2 3 Seed Companies ACAM Farmers Local Production Guarantee Year 3 1 Seed Company Farmers ACAM Direct Sales CAL Other Guarantee

18. Conclusions on Context • Must start with a vision of market system and the exit strategy in mind • Context: Each value chain has a unique context - no copy and paste • Without basic market conditions, facilitation may not be right • Style of engagement depends on the range of factors • Existing infrastructure/organization • Lead firms, interconnected systems, and farmers/beneficiaries • Appetite for change • Clarity of value propositions and potential for mutual benefits • Very weak market system context requires much more time and investment (higher threshold for failure) • Emphasis on quick numbers may crowd out sustainable systems

19. Please take a minute to fill out our brief survey! You can also visit the event page to post comments & questions. Bill Grant: William_grant@dai.com Marina Krivoshlykova: Marina_Krivoshlykova@dai.com Contact Us: microlinks@microlinks.org Subscribe today: microlinks.kdid.org/subscribe May 29: Workforce Development and Inclusive Markets Find upcoming events & past presentations: microlinks.org/MPEPseries