<div dir="ltr"><div><div><div><div>Hi Paul,<br><br></div>Thanks for sharing. Lets use these three points to base the discussion:<br><h2 style="margin-left:40px"><font size="1"><span style="color:rgb(0,0,255)">1. Tackling the root cause of market failure</span></font></h2><div style="margin-left:40px"><font size="1"><span style="color:rgb(0,0,255)">
</span></font></div><p style="margin-left:40px"><font size="1"><span style="color:rgb(0,0,255)">Proponents of market system approaches believe that the best way to
help people out of poverty is to address the underlying causes of market
failure. Rather than focus very broadly (eg on macro-economic problems)
or individually (eg on specific businesses or families), they instead
look at the ways poor people and businesses interact in particular
sectors. By analysing and understanding the characteristics of specific
industries and value-chains, they can help make systemic changes that
create lasting, inclusive growth.</span></font></p><div style="margin-left:40px"><font size="1"><span style="color:rgb(0,0,255)">
</span></font></div><h2 style="margin-left:40px"><font size="1"><span style="color:rgb(0,0,255)">2. Stimulating scale</span></font></h2><div style="margin-left:40px"><font size="1"><span style="color:rgb(0,0,255)">
</span></font></div><p style="margin-left:40px"><font size="1"><span style="color:rgb(0,0,255)">Supporters of market systems approaches argue that firm-centred
approaches are often insufficient on their own. That's because the
systems that enable firms to prosper, services to expand and access to
improve are rife with 'market failures'. As a result, individual
businesses continually hit these 'systemic' obstacles, which prevent
them and their competitors from scaling up to reach large numbers of
poor people.<br></span></font>
<font size="1"><span style="color:rgb(0,0,255)"><br>
By contrast, market systems approaches seek to address the specific and
unique underlying causes of poor performance in particular industries or
sub-sectors. By stimulating changes in the rules, relationships,
barriers and incentives that affect how public and private actors
behave, they can help important market functions to be performed more
effectively. If successful, this improves the whole market system –
enabling multiple businesses to innovate, grow, reach out and serve
wider populations.</span></font></p><div style="margin-left:40px"><font size="1"><span style="color:rgb(0,0,255)">
</span></font></div><h2 style="margin-left:40px"><font size="1"><span style="color:rgb(0,0,255)">3. Intervening sustainably </span></font></h2><div style="margin-left:40px"><font size="1"><span style="color:rgb(0,0,255)">
</span></font></div><p style="margin-left:40px"><font size="1"><span style="color:rgb(0,0,255)">As every market system is dynamic, it is essential that systems
approaches build the capacity of players to respond to future changes.
This requires careful analysis of key market functions and players, and
how they could work more effectively in the future, based on their
different incentives and capacities. <br></span></font>
<font size="1"><span style="color:rgb(0,0,255)"><br>
A market systems approach aims to align the policy objectives of a
programme's intervention with the private incentives and capabilities of
the key actors in the system. In some cases, this may partly compromise
the immediate poverty focus of activities – but it means that results
emerge from lasting changes in the market system itself, and are not
just a temporary response to the activities of the programme.<br></span></font>
<font size="1"><span style="color:rgb(0,0,255)"><br>
By addressing the causes of market failure in this way, a market systems
approach ensures that the social and economic benefits for poor people
last far beyond the period of intervention.</span></font></p><p style="margin-left:40px"><font size="1"><span style="color:rgb(0,0,255)">(<a href="http://beamexchange.org/en/market-systems/rationale/">http://beamexchange.org/en/market-systems/rationale/</a>)<br></span></font></p><br>I would say kind of a market systems approach. It doesn't really permanently offer a solution to resolve the market failure to the poor to access services. Its a temporary redistribution approach...but its not changing the market failure. This approach is more favorable in trying to stimulate scale...its a national program intending to reach large numbers, but unless you deal with the market failures there will still be barriers for the intended market. Its probably touching the third point a little, with other approaches in place that might not be mentioned in Kirks email.<br><br>The GACC for a long time has really supported efforts to do things at a market based approach. Seeing how every market is different and presents its own unique challenges, it's difficult to copy and paste the same cool idea from another market. I suggest that people on the listserv interested in looking at different models and approaches (pure market based, government partnerships, etc.) get more involved with the social enterprise sector and impact investing. There you will learn about how other business models in the social sector are reaching customers at the bottom of the pyramid and what techniques and strategies you can glue together to make things work in your own market. I remember the first time people started talking about Social Impact Bonds and everyone was super excited. Those are the kind of out of the box ideas that the stoves market is missing. <br><br></div>I am much more of a supporter of creating a business that deploys all of the needed systems together (sales, distribution, after-sales, etc.) than rely on trying to create the magic partnership between various institutions to make the system work (its much harder to control the outcome when there are lots of actors and everyone has different motivators). But sometimes a mix of innovative partners works when you are trying to reach sale and serve more people.<br><br></div>Best,<br></div>Christina<br></div><div class="gmail_extra"><br><div class="gmail_quote">On Fri, Oct 2, 2015 at 6:20 AM, Paul Anderson <span dir="ltr"><<a href="mailto:psanders@ilstu.edu" target="_blank">psanders@ilstu.edu</a>></span> wrote:<br><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex">
<div bgcolor="#FFFFFF" text="#000000">
Stovers,<br>
<br>
This came today from Kirk Smith's [stove] listserv, and is of
interest to all Stovers.<br>
<br>
Is this a Market Systems Approach? What can be done on a similar
note for biomass stoves?<br>
<br>
Paul<br>
<div><br>
<pre cols="72">Doc / Dr TLUD / Prof. Paul S. Anderson, PhD
Email: <a href="mailto:psanders@ilstu.edu" target="_blank">psanders@ilstu.edu</a>
Skype: paultlud Phone: <a href="tel:%2B1-309-452-7072" value="+13094527072" target="_blank">+1-309-452-7072</a>
Website: <a href="http://www.drtlud.com" target="_blank">www.drtlud.com</a></pre>
<br>
<br>
-------- Forwarded Message --------
<table border="0" cellpadding="0" cellspacing="0">
<tbody>
<tr>
<th align="RIGHT" nowrap valign="BASELINE">Subject:
</th>
<td>[stove] Giving it up</td>
</tr>
<tr>
<th align="RIGHT" nowrap valign="BASELINE">Date: </th>
<td>Fri, 02 Oct 2015 02:02:47 -0700</td>
</tr>
<tr>
<th align="RIGHT" nowrap valign="BASELINE">From: </th>
<td>Kirk R. Smith <a href="mailto:krksmith@berkeley.edu" target="_blank"><krksmith@berkeley.edu></a></td>
</tr>
<tr>
<th align="RIGHT" nowrap valign="BASELINE">Reply-To:
</th>
<td><a href="mailto:krksmith@berkeley.edu" target="_blank">krksmith@berkeley.edu</a></td>
</tr>
<tr>
<th align="RIGHT" nowrap valign="BASELINE">To: </th>
<td>Kirk R. Smith <a href="mailto:Krksmith@berkeley.edu" target="_blank"><Krksmith@berkeley.edu></a></td>
</tr>
</tbody>
</table>
<br>
<br>
<br>
Today is Gandhi's Birthday, a national holiday in India. See
below
how the Prime Minister is spending his day appropriately --
officially
giving 5000 below-poverty-line families new LPG connections in
Jharkhand,
one of the poorest states of India (and gaining political credit
by doing
so). The subsidies going with these connections were given up by
middle-class households and transferred to the BPL families as
part of
the ambitions "GIve it Up" campaign underway since April
So far, well more than 3 million households have given up their
subsidies, amounting to something like a 200 million USD shift of
resources from the rich* to the poor. The BPL families are
given a stove and their first cylinder from Social Responsibility
funds
by the major oil companies in the country. The expectation is
that
10 million households worth of subsidy will shift before long --
rising
at 30,000 a day I was told yesterday.<br>
<br>
This is a sea change in the landscape of clean fuel access and a
great
opportunity for creative research designs to evaluate the health
and
other benefits and to follow stacking and other behavior
changes.<br>
<br>
More soon, but happy Gandhiji's birthday/k<br>
<br>
* Actually, I was told that very few of the truly rich have given
up
their subsidies -- it is mostly the middle class. Sounds familiar
-- it is the rich who have the highest expectations of public
subsidy in
my country too.<br>
<br>
<img src="cid:part1.05030805.06070509@ilstu.edu" alt="imggallery" height="1098" width="716"> <br>
</div>
<br>
</div>
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<br></blockquote></div><br><br clear="all"><br>-- <br><div class="gmail_signature">Christina Espinosa<br>University of the Pacific '10<br>School of International Studies<br><a href="mailto:c_espinosa1@u.pacific.edu" target="_blank">c_espinosa1@u.pacific.edu</a><br></div>
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