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What is M4P?M4P is a development project
management approach which
works with the public and private
sectors in order to reduce poverty.
It aims to improve market systems
and bring greater impact and
lasng changes to the lives of large
numbers of poor people.
THE PROJECTAgri-business for Trade Compeveness Project (ATC-P),
branded as Katalyst, is a market development project that aimsto contribute to increasing the income of poor men and women
in rural areas. The project does this by making service, input and
product markets more accessible for the rural populaon, which
in turn increases the compeveness and income of farmers and
small enterprises.
Katalyst is co-funded by the Swiss Agency for Development and
Cooperaon (SDC), the UK Department for Internaonal
Development (DFID), and the Danish Internaonal Development
Agency (Danida). It is implemented by Swisscontact and GIZ
Internaonal Services under the umbrella of the Ministry ofCommerce, Bangladesh.
Katalyst follows the Making Markets Work for the Poor (M4P) approach, which works indirectly, focusing on
achieving systemic change in order to provide new opportunies for poor people. This is done by facilitang
changes in the behaviour of market players, such as private companies and public and private associaons, to
engage poor people into their businesses as suppliers, distributors, retailers and/or employees. This creates
more income generang opportunies for poor people. Katalyst idenfies and priorises the constraints and
opportunies within the sectors in its porolio in order to facilitate pro-poor income growth. This benefits bothcompanies and poor people, with companies making higher profits and poor people increasing their income,
thus contribung to the reducon of poverty. Figure 1.
In contrast, convenonal projects support poor people by directly providing them with services, inputs and
products. While such a direct approach can achieve quick results, it does not always have a lasng impact.
These projects are also someme unable to reach a large number of poor people, and their effects on markets
can oen be distoronary.
How do
we work?
Figure 1: Different impact logic: Katalystand convenonal projects
Katalyst-marketsystem change
addressed
Convenonalprojects market
system change neqlected
IntervenonIntervenon
Wider
system
(causes) is
bypassed
Poverty
reducon
Improved
access or growth
Market systemchange
Poverty
reducon
Improved
access or growth
Market systemchange
Photo:WahidAdnan/Drik
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Our achievements so far
in Phase 1 and 2
How do
we selecta sector?
The focus areas of Phase 3 are the consolidaon of its
previous agricultural sector work, deepening and widening
the projects pro-poor impact, and capitalising the projects
knowledge and experience.
The new porolio consists of three core sectors (Vegetable,
Farmed Fish and Maize) and three cross sectors (Womens
Economic Empowerment, Local Agribusiness Networks, and
Informaon Channels), three key topics (Inputs, Farm
Pracce, and Markeng) and an overarching theme
(Capitalisaon, which aims to share the projects learnings
among relevant stakeholders so as to encourage others to
take up pro-poor, facilitave approaches). Figure 2.
Focus areas and
the portfolio
Katalyst selects sectors that:
are important for poor people (sectors which involve
large numbers of poor people as producers,
employees, and/or consumers);
are compeve and have the potenal for inclusive
growth (sectors which have the potenal to improve
the producvity and income of poor people);
have the scope to change (the market system in the
sectors has the potenal to change if underlying
problems are addressed).
Phase 1 and Phase 2 of Katalyst were implemented from 2002-2013.
During Phase 1, implemented from 2002 to mid-2007, Katalyst helped to create around 200,000 jobs, and benefited700,000 farmers and small businesses, by increasing their access to beer services, technology and inputs.
During Phase 2, which was implemented from 2008 to mid-2013, Katalyst reached out and contributed to the increased
compeveness of 2.37 million farmers and small businesses, and increased their income by USD320 million.
Phase 3
duration and targetsPhase 3 of the project commenced in March 2014 and will be implemented unl March 2017.
By the end of Phase 3, the projects goal is to reach 1.43 million farmers and small and medium enterprises, and increase
the income of its beneficiaries by USD263 million.
Women Economic Empowerment
Local Agribusiness Networks
Informaon Channels
Capitalisaon
CrossSectors
Overarching
Topic
WiderEconomy
Core Sectors
Vegetable
Farmed Fish
Maize
Key TopicsInputs
Farm Pracce
Markeng
Figure 2 : Katalysts Porolio
Implemented by Funded by
International Services
IS
House 20, Road 6, Baridhara, Dhaka 1212, Bangladesh. Tel: +88 (02) 8833172-4, Fax: +88 (02) 8835452
www.katalyst.com.bd, www.swisscontact.org.bd
Prepared by Communicaons unit, Katalyst
Photo: Farida Husain/Katalyst
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