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2

Overarching Question “to what extent have IFAD financed interventions in market access met the institutional objectives of IFAD?”

Overview and Methodology

Key Questions 1. Targeting Key Question: For whom has market access been achieved and what has been the nature of smallholder market interaction?2. Partnerships/Institutions/Policy Issues Key Question: How have partnership strategies, capacity building of institutions, and development of government policies affected access to markets?3. Infrastructure Key Question: How does infrastructure impact access to markets?

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Key Questions continued

4. Finance Key Question: How has the financial sector (e.g., formal and informal banking, leasing, insurance, private investment, input supplier credit etc.) responded to meet the financial demands and needs of the target group for production and market access?5. Production, Food Security and Nutrition Key Question: How does the nature and type of product/production and income potential affect SAM and does SAM translate into greater food security and nutrition for the rural poor (e.g., choice of production, commercial versus subsistence production etc.)?NB: Gender equity and the environment were considered independently as being cross cutting.

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Programme Sample Selection Method

1. Stated specific SAM objectives.

2. Number of SAM activities.

3. Relative size of SAM budget.

4. Degree to which SAM was judged integral to programme outcome/impact success.

1. Review SAM literature2. Sample Selection

• 150 evaluations scanned for SAM components

• 45 assessed for substantive SAM activities

• 39 selected for in depth analysis

3. Smallholder & Market Functionality Analysis• Assessed by Key Questions, Importance

to Smallholders & Market Functionality as measured by impact & relevance respectively.

Impact is average of Household Income & Assets, Household Social Capital & Food Security/Nutrition and relevance is a proxy for an intervention being relevant to market functioning.

Methodology

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SAM Literature tells us good programming will be….

• Famer/Famer Group focused.

• Market oriented.• Locally or micro region

responsive.• Conscious of rural

household risks to commercialization of production/enterprises.

Theory of Change

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Key Findings

SAM Programme Targeting

IFAD SAM programme experience has benefitted smallholders to varying degrees.

Impact is the average of Household Income & Assets, Household Social Capital & Food Security/Nutrition

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Well-defined roles and responsibilities, with incentives crafted to motivate partners to support smallholders’ empowerment, build their capacity & provide access to markets are key to programme partnerships that maximize programme outcomes.

SAM Programmes: Partnerships

Impact is average of Household Income & Assets, Household Social Capital & Food Security/Nutrition

Key Findings

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Policy interventions were few but those related to enterprise & trade were found both to be relevant to markets & important to smallholders.

Much institutional development took place & was found to be important to smallholders & to market functionality.

Impact is average of Household Income & Assets, Household Social Capital & Food Security/Nutrition

SAM Programme Findings for: Institutions & Policy

Key Findings

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SAM Programme Findings for: Infrastructure

There is no set combination of infrastructure needs leading to greater achievements, & that effective choice of what should be offered is often the outcome of extensive socio & economic analysis of target populations.

Impact is average of Household Income & Assets, Household Social Capital & Food Security/Nutrition

Key Findings

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SAM programme finance experience largely reflects and follows IFAD Rural Finance Policy and good inclusive finance practice. Analysis suggests that locally sensitive institutions can offer effective services supporting smallholder access.

SAM Programme Findings for: Finance

Impact is average of Household Income & Assets, Household Social Capital & Food Security/Nutrition

Key Findings

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SAM Programme Findings for: Food Security & Nutrition

SAM Production (Food & Nutrition)

Food production and food security was an explicit goal in almost all programmes. Achievements were more positive than negative, but often not attributable to programming.

Impact is average of Household Income & Assets, Household Social Capital & Food Security/Nutrition

Key Findings

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Gender & Environment (including Climate Change)Gender Equity Expanding market access to women offers a promising opportunity to increase

household productivity for commercial purposes and poverty reduction. Women’s market participation has been mixed but was often positive despite

inequalities which require targeted, well sequenced capacity development and empowerment support.

SAM programmes had gender goals but frequently did not specify outcomes or outputs to support desired outcomes.

Natural Resource Management NRM outcomes were seldom found as specific programme activities, but where

there were specified NRM outputs notable positive access to markets was often achieved.

Key Findings

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Micro/Small Ent.

Knowledge

Institutional Dev

Marketing Facilities

Trade

Large Enterprise

Farmers/Groups

Other Infrastructure

Value Chain

Product Targeting

3.25 3.5 3.75

3.25

3.5

4.0

4.25

4.50

4.75

5.0

3.0

3.0 4.0 4.5 4.754.25 5.255.0

Locally Responsive

Demonstration

Government Extension

Private Extension

NGO Extension Public

NGO

Private Sector Assn.

Medium Enterprise

Agriculture

Other Policy

Commercial Bank

NBFI

Programme Fund

State Bank

Transportation

Productivity

Storage

Processing

NRM

Targeting

Financial

Partnerships

Production

Institutions & Policy

Infrastructure

Geographic Targeting

Formal MBFI

Emerging SAM Themes

Informal MBFI

Products

Importance to

Smallholder (Impact &

Sustainability)

Importance Market (Relevance)

Government Fund

IDA

Impact is average of Household Income & Assets, Household Social Capital & Food Security/Nutrition

Locally Sensitive Targeting of Programme

ActivitiesMarket Oriented

Activities

Relevant Infrastructure

Key Findings

Ente

rprise

14Medium Sized

Enterprise

Commercial Bank

Institutions

Enterprise

Development

Large Enterprise

Farmers/ Farmer Groups

Value Chain

4.25

4.25

4.25

4.50

5.0

4.0

Private Extension

Public Partnerships

Trade

Transportation

Productivity

Storage NRM

Targeting

Financial

Partnerships

Production

Institutions & Policy

Infrastructure

Geographic Targeting

Formal MBFI

Knowledg

e

Informal MBFI

Importance to

Smallholder (Impact &

Sustainability)

Importance Market (Relevance)

4.0

Products

4.5 4.75 5.0

4.0

3.75

Locally Responsive

Micro/Small Enterprise

NGO

IDA

Enterprise Dev

Market Facilities

Emerging SAM Themes – Focused In

Impact is average of Household Income & Assets, Household Social Capital & Food Security/Nutrition

Locally Sensitive Targeting of Programme

ActivitiesMarket Oriented

Activities

Relevant Infrastructure

Key Findings

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SAM Programmes by Type & Performance (date of design)

Performance Score (Average IOE Performance Ratings)

1998

3

4

2

1999 2003

5

Programme Relevance2000 2001 2002 2004 2005 2006 2007

Advanced SAM

Intermediate SAM

Basic SAM

Non statistically derived performance curve

Impact is average of Household Income & Assets, Household Social Capital & Food Security/Nutrition

Key Findings

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Conclusions1. Programmes have increased in number & types of interventions.2. Programmes largely serve the rural poor, with some elite capture.3. Programmes are advancing in sophistication & & alignment with SAM programming trends but still have mixed success both within programmes (i.e., different components) and across programmes (within a country).4. Highest achievements were where smallholders were empowered to overcome market access constraints through appropriate packages of incentives & risk management tools:

• Flexible tools adaptable to local needs, particularly knowledge & capacity development;

• More “market knowledgeable” or “oriented”;• Market transaction & reduction costs particularly supporting & empowering

smallholder capacity to participate in markets;

Conclusions & Recommendations

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Conclusions continued

5. Women & natural resource management offer potential high performance achievements.6. Transparent, smallholder accountable institutions and policies.7. Well sequenced, flexible, locally responsive implementation & partners balancing public goods and respect for market demand.8. Programmes have been supported/guided by IFAD’s strategic frameworks & policy developments.

Conclusions & Recommendations

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Recommendations

1. Ensure monitoring and evaluation systems have indicators and outcomes that are well defined in operational monitoring and evaluation systems that measure and speak to the programme goal and objectives, specifically food security and market access data/information.

2. Invest the time required to ensure programme building blocks & partnerships

are well established as well as output sequencing requirements that are clearly defined and are realistic.

3. Invest substantially in evidence-based market analytics during design &

implementation.  

Conclusions & Recommendations

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Recommendations continued

4. Identify and provide output activities for gender, minority & environmental considerations in all programmes (through appropriate targeting and implementation strategies).

5. Consider programme designs with greater flexibility, to respond quickly as they arise during programme implementation.

6. IFAD consider new products for flexible funding instruments with the means to adapt to market opportunities  

Conclusions & Recommendations