Market systems and people in poverty

Markets and the private sector provide a direct means for people to participate in economic activity – to find jobs, earn income and access services. All too often, people living in poverty are excluded or disadvantaged by the way that markets operate. MSD is a coherent approach to understanding and intervening in markets so that they perform more beneficially and sustainably for the poor. It works by identifying the root causes of weak or exclusionary performance in particular market systems.

The MSD approach is adaptive: reflecting the dynamic and complex nature of markets. Good monitoring is therefore essential to its implementation.

Applying MSD to social and basic service delivery

It is widely debated whether social and basic services should be free at the point of access, or whether private low-cost services can be a solution where the public system does not work effectively. In the health sector, for example, the first point of contact for low-income groups is often with commercial health care providers, in one form or another. Some therefore suggest to upgrade existing service provision, until it is possible to provide free universal coverage.


Market systems and people in poverty
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