World Vision Australia’s Inclusive Market Systems Development approach, or iMSD, works
with markets and households to improve the market system.
Helping to ensure people living in poverty can access, participate in, and benefit from
a stronger local economy.
And to help ensure that change is inclusive and sustainable, World Vision prioritises
Women’s Economic Empowerment, by addressing gender inequalities throughout this approach.
Building on the Local Value Chain Development model, or LVCD, which is a farmer focussed
approach that World Vision has implemented for over 12 years...
iMSD is facilitative approach that analyses systemic constraints in the market system.
Working within value chains to the benefit of households and individuals.
Interventions incentivise market actors to change the way they operate to benefit the
poor.
And we know that household focused programming, combined with Women’s Economic Empowerment
ensures that inclusive and equitable economic growth is available to everyone.
World Vision chooses the iMSD approach because we embrace systems thinking and use market
forces to lead our programming.
World Vision believes that the productive capacity of households should sometimes be
directly addressed by development agencies in market sensitive ways.
When done well, this engagement can accelerate progress for market actors, while at the same
time ensuring vulnerable households are more resilient and more able to recover from shocks.
After a gender sensitive market analysis, the project team engage private sector partners
who are able to adjust their business model to more effectively benefit target households.
Ongoing support is provided throughout the co-creation and testing, aimed at attracting
other actors to copy and then crowd in.
At the same time, the project team explores ways to support households to better engage
with the changing market system and ensure even the most vulnerable households are included.
World Vision Australia’s iMSD portfolio now includes over 20 projects across 15 countries,
with a life of award value approaching 90 million US dollars.
The MORINGA project, supported by the Australian Government, World Vision Australia and Wahana
Visi Indonesia is generating private sector investment in central and eastern Indonesia.
In 2017, more than 28 million people lived below Indonesia’s national poverty line.
With high numbers of farmers in Eastern Indonesia experiencing poor income due to low productivity,
low sales price and high production costs.
This is further compounded by the lack of skills and knowledge related good agriculture
practice, market linkages, and a reduced access to quality input products and financial services.
The MORINGA project addresses key challenges facing farming households and their market
system.
At the end of our first annual growing season, World Vision’s impact assessment documented
positive results for farmers and their families across the three subsectors of Pilinut, Moringa
seeds, and maize.
Maize farmers are the most commercially orientated of all target households, however they lack
access to quality seed and have limited knowledge of productive agricultural practices.
Also, agricultural input suppliers did not consider remote rural farmers as potential
clients for their best quality seed.
The project's primary partner, Syngenta, has created better access for farmers to quality
hybrid seed and have provided agronomic support.
Their new business model works through an improved supply chain, that now includes village
retailers who include farming support as part of an embedded service.
At the same time the project team has partnered with a financial institution to train farmers
on gender inclusive financial literacy.
This training will support household decision making and help the 50% female farmers to
engagement more equitably with the improved market functions.
After just one year, maize farmers experienced a significant increase in yield and an average
income increase of 265%.
Within the whole project, total exposure and increased income have been already experienced
by households across all three subsectors.
More than 3000 households were exposed to improved business practices by private sector
partners.
984 households adopted improved agriculture practice using quality seed with access to
better sales channels.
And 572 households benefited by increasing their income.
The project is directly leading to an improvement of quality of life for children with so far
430 boys and 406 girls benefitting.
And households are now able to provide adequate food and cover medical and education
expenses.
It's not only the impact at the household level, but the private sector is also benefiting,
which means it is likely to continue the new business practices.
Syngenta recorded a significant increase in sales performance in the region, with a jump
from 2 tonnes in 2018 to 9 tonnes in the same period of 2019.
The flow on effect for Syngenta has seen over 200 hybrid seed retailers and farm shops have
increased their capacity as an embedded service and enjoyed increased sales volumes.
iMSD creates sustainable system changes.
And ensures people living in poverty can access and benefit from markets.
It’s a powerful approach to eliminating economic barriers for the poor and marginalized,
especially women.