Transcript M&E

From Agriculture to Health care:
M4P 26 November 2008, Katalyst
Applying M4P successfully in different
market systems in Bangladesh
-- Peter Roggekamp,
Swisscontact - GTZ
26 November 2008
M4P 26 November 2008, Katalyst
The next 30 minutes:
Small intro
The project cycle in Katalyst
in agriculture
in retailer information to farmers
in private health care
2
M4P 26 November 2008, Katalyst
Katalyst
Donors:
Implementers:
Budget:
•DfID
•Swisscontact
9 Million USD / year
•CIDA
•GTZ is
•SDC
•Ministry of Commerce
•RDE
3
M4P 26 November 2008, Katalyst
Economic growth
is key to poverty
reduction
The private sector
mainly enriches the
better off.
People are
capable to
determine their
own future
These poor people
need help, they
cannot do it on their
own
Best solutions can
often be achieved
by building on local
system
People need protection
from the system; better
to design a parallel
system
There are enough
private sector
intermediaries to
work with
Intermediaries exploit,
have different interest or
at best are too weak
4
QUESTIONS LIKE:
o Where do I get good seeds ?
o Where to hire good labor ?
o How do I deal with diseases?
o Should I use fertilizer?
M4P 26 November 2008, Katalyst
o Should I buy a maize sheller?
o What price can I get for my crop in the next village ?
o Why are my neighbors’ yield higher ?
o
o
3 key project decisions…..
1. Which value chains or markets should
Market selection
the project select ?
Where do I get good seeds ?
Hire good labor ?
How do I deal with diseases
What price can I get for my crop in the next village ?
Should I use fertilizer ?
Why are my neighbors yield higher ?
M4P 26 November 2008, Katalyst
Should I buy a maize Sheller ?
Strategies
2. What is the growth and poverty
reduction potential of the value chain
or market and what need to change to
unlock these potentials?
3. How to interact with the private and
Facilitation
public sector to unlock these
potentials ?
6
Project cycle
M4P 26 November 2008, Katalyst
Facilitation
Monitoring
Understanding
Strategies
* Markets
* Impact
Market selection
7
Facilitation
Strategies
Monitoring
Portfolio Management
Understanding
* Markets
* Impact
Market selection
Criteria
Growth potential
Pro-Poorness
Gender, Environment
o Efficiency, ….
Maize
Pond fish
Government policy
Shrimps
Urban and rural development balance
Potential for innovation
o In a light touch way
High potential / high risk versus lower
M4P 26 November 2008, Katalyst
Vegetables
Impact and outreach
Synergiesof
between
sectors, sector,
.. accepting the speed
the the
private
o Risk,
SECTORS
potential / lower risk
Internal capacity
o Unclear upfront where
BIG HITS will be,
Duration of interventions and Cost
Private sector
partners
and
absorption
o Specific requirements
from
(4)
donors.
capacity
Interest and capacity of implementing
partners
Katalyst’s existing competences
Input markets
Poultry
Plastics
Furniture
Health care
Recycling
Media
ICT
Government services
Marketing
Distribution
8
Facilitation
Strategies
Monitoring
Understanding
* Markets
* Impact
The strategies
Reducing systemic constraints,
Stimulating innovations.
Market selection
M4P 26 November 2008, Katalyst
•Better irrigation,
?
?
•Trust,
•Availability
sector
Now.
•Product
•Access to
of inputs,
quality,
sector
information.
In 5 or 10
years time
9
Facilitation
Strategies
Market selection
Monitoring
Improving market functioning
Understanding
* Markets
* Impact
No direct support to farmers and SMEs


Low reach  not efficient and not fair.
Support not sustainable
M4P 26 November 2008, Katalyst
But mainly work with commercial or public intermediaries,
for example:









Associations
Input suppliers
Mold makers in plastics
Nursery owners in pond fishery
Seed producers
Traders
Soil testers
ICT centers
Media
Efficient
Sustainable
10
Risk
Deal Making
Catch 22
Understanding
StrategiesTakes too long
* Markets
* Impact
Access to knowledge
Facilitation
Monitoring
with intermediaries
So why do
you need
 Misuse of market
power,our
 Disadvantage groups
support?
Strategy
Knows how to engage
Sector knowledge
PROFIT
POVERTY
M4P 26 November 2008, Katalyst
Market selection
But where is the invisible hand ?
“Externalities and Enabling Environment prohibits”
11
M4P 26 November 2008, Katalyst
Principles of facilitation
• Competitiveness and its reincarnation productivity is the
key to sector growth; is the key to poverty reduction
• We are not part of the private sector…
…and only there temporarily,
• We have to be as neutral as possible in the market,
• We always demand cost sharing to assure commitment,
• Crowding in is a core part of market development,
• Environment, Gender, Working conditions are important.
12
Facilitation
Strategies
Market selection
Monitoring
Monitoring and understanding impact
Understanding
* Markets
* Impact
•Integral part of our approach,
•Work with impact logics for each intervention,
M4P 26 November 2008, Katalyst
•Learning moments built in,
•Owned by staff and M&E specialists,
•90 % improving, 10% proving,
•Financial incentive for all staff,
•First system audit last month.
13
BUT WHERE ARE THE POOR ?
M4P 26 November 2008, Katalyst
Landless rural
and urban poor
Daily labor
14
Daily Wage Earners
Incidence of poverty by main source of income (UPL/%)
M4P 26 November 2008, Katalyst
Bangladesh
Urban
Rural
Wages & Salary
19.87
18.76
20.84
Agriculture (Self-employed)
38.71
48.69
38.10
Non-agriculture (Self-employed)
40.41
40.57
40.35
Agriculture (Daily Wage)
71.39
79.13
71.05
Non-agriculture (Daily Wage)
51.26
58.55
48.17
Pension
20.19
27.45
17.32
House rent and other rent
21.27
10.23
28.03
Donation, grant, charity and other
30.35
27.27
30.77
Source: Poverty Monitoring Survey (2004)
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BUT WHERE ARE THE POOR ?
Landless rural
and urban poor
Jobs for daily labor
More local purchasing power
M4P 26 November 2008, Katalyst
Skilled jobs in certain sectors
Traditional small rice
farmers
“New” cash crops can end poverty
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M4P 26 November 2008, Katalyst
Agricultural Value
Added (BDT/acre,
BDT/capita)
Cost
Value added
Value added
(per acre, incl.
labor)
(per acre)
( per capita)
AGRICULTURE
-
-
9,643
Agriculture/Livestock
-
-
7,165
Oil seeds
4,000
1,456
987
Major cereals
8,000
2,523
1,777
Pulses
3,500
2,398
1,821
Minor cereals
7,000
2,957
2,124
Maize
10,125
3,205
2,283
Spices
22,121
5,177
3,381
Maize (contract farming)
12,565
10,000
7,124
Vegetables
20,800
13,008
8,203
Potato
-
80,000
50,000
Fruits
-
20,494
15,308
Poultry (commercial)
-
-
37,796
Forestry
-
-
25,268
-
50,506
Fishing/ Pisciculture
NON-AGRICULTURE
-
Based on: Statistical Yearbook of Bangladesh (2004, 2005), Agricultural Sample Survey (2005), own data
30,028
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Poverty status
M4P 26 November 2008, Katalyst
Cropping Patterns
Marginal
Small
Medium
Large
Boro-None-Ropa Amon
1
1
4
4
Oil seeds-Ropa Aus-Ropa-Amon
1
1
4
4
Vegetables-Aus-Ropa Amon
1
4
4
4
Boro-None-None
1
1
1
3
Mastard Oil-Ropa Aus-Ropa Amon
1
1
4
4
Boro/Wheat-Dhaincha-Ropa Amon
1
1
4
4
Wheat-Vegetables-Ropa Amon
1
4
4
4
Potato-Ropa Aus-Ropa Amon
1
4
4
4
Banana-Banana-Banana
2
4
4
4
Mastard Oil-Boro-Ropa Amon
1
1
4
4
Potato-Aus-Ropa Amon
1
4
4
4
Oil seeds-Ropa Aus-Ropa-Amon
1
1
4
4
Maize-None-Ropa Amon
1
1
4
4
ST.Amon-maize
1
4
4
4
ST amon-potato-maize
1
4
4
4
Fisheries
1
4
4
4
Source: Department of Agriculture, own data
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M4P 26 November 2008, Katalyst
Market Development and Cash Crops
19
Facilitation
Strategies
Market selection
Monitoring
Strategy for most of Agriculture
Understanding
* Markets
* Impact
•Access to information on cultivation
•Better functioning input markets
M4P 26 November 2008, Katalyst
Lead to:
•Increased productivity and profitability
•Less risk
Lead to:
•Increase income for existing farmers
•Cash crops more attractive for new farmers
•More jobs for landless
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Facilitation
Monitoring
Understanding
* Markets
* Impact
Strategies
Market selection
Agriculture and Market Development
the intermediaries
Traders
processors
Extension workers
from Government
or NGO’s
Media
M4P 26 November 2008, Katalyst
ICT centers
Sellers or lessors of
equipment
Retailers of
Seeds
Lessors of land
Fertilizer
pesticides
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Main Issues
M4P 26 November 2008, Katalyst
Low Productivity, due
to:
Insufficient
knowledge
Dysfunctional input
markets
Limited access to
resources
Intermediaries
Support
o Embedded information through:
 Retailers
 Nurseries
Training development
Initial risk sharing
Demonstration
o Rural ICT Centers:
Testing the model
Risk sharing
Awareness creation
Wider system development
o Services providers in market
places
Improving availability and functioning of
services
o Local Government on leasing of
public water bodies
Changing government rules and improving
implementation
o Compost fertilizer companies
Technical support
Improving Government regulations
Development of distribution network
o Contract farming
Developing models
Adoption of the business model
Risk sharing and Demonstration
o Seed companies on quality
seeds
Quality and trust
Improving wider systems
Creating awareness
Assisting in contract seed production
22
M4P 26 November 2008, Katalyst
Improving retailer – farmer relations
in the vegetables market
23
Facilitation
Strategies
Market selection
Monitoring
Understanding
* Markets
* Impact
Market selection: Vegetables
•One of the “out of poverty” cash crops,
•Outreach of potentially many millions,
M4P 26 November 2008, Katalyst
•Great potential for job creation,
•Fits in Millennium Development Goals,
•In line with Government PRSP.
24
Agriculture and Market Development
the intermediaries
Traders
processors
Extension workers
from Government
or NGO’s
Media
M4P 26 November 2008, Katalyst
ICT centers
Sellers or lessors of
equipment
Retailers of
Seeds
Lessors of land
Fertilizer
pesticides
25
Facilitation
Strategies
Monitoring
Understanding
* Markets
* Impact
Market selection
Large companies
HQ:
Facilitation:
Retailer training programs
Situation analysis in 2003:
Distribution
network:
No cultivation
knowledge
Some are concerned
about reputation, ..
Only focus on
logistics
M4P 26 November 2008, Katalyst
Have cultivation
knowledge
Retailers:
Farmers:
Product knowledge
Low productivity
No cultivation
knowledge
Distrust and dislike
retailers
..all about market
share
26
Facilitation
Strategies
Market selection
Monitoring
Understanding
* Markets
* Impact
Facilitation:
Retailer training programs
Initial Activities:
• We offered support to all major companies
• Syngenta agreed to test with 480 retailers in 2004
M4P 26 November 2008, Katalyst
3 days course about farming knowledge
27
Facilitation
Strategies
Monitoring
Facilitation:
Retailer training programs
Understanding
* Markets
* Impact
Katalyst
Market selection
Initiated
100%
Training concepts
M4P 26 November 2008, Katalyst
Syngenta
Joint
Design of training
Supported
Lead
Organizing and
executing trainings
Cost of training
-
100%
60%
40%
Gender specialist
100%
Monitoring
100%
100%
28
Facilitation
Strategies
Market selection
Monitoring
Understanding
* Markets
* Impact
Facilitation:
Retailer training programs
Initial Activities:
• We offered support to all major companies
• Syngenta agreed to test with 480 retailers in 2004
M4P 26 November 2008, Katalyst
3 days course about cultivation knowledge
Next level of Activities:
• Similar deals with Bayer Crop science and East
West seeds: additional 900 retailers in 2005
•Deal with AR Malik, Lal teer, Mollika, Metal and
United, more focused on seeds.
29
Facilitation
Strategies
Market selection
Monitoring
Understanding
* Markets
* Impact
Results
Service market change:
• Completely different business model;
•High interaction between retailers and farmers
•Overall perceived as positive by all
•Retailers and organization all report increased revenue
M4P 26 November 2008, Katalyst
• 2/3 of 1380 retailers are giving cultivation advice.
• Companies continue to invest in their retailer network.
Farm level change:
• Improved practices for ca. 230.000 farmers directly.
• If crowding in is considered, probably more than 3 Million
farmers affected
• Increased yield, but also increased quality  higher income
• More new farmers in areas where training took place.
30
Facilitation
Strategies
Monitoring
Results, a retailer
Understanding
* Markets
* Impact
Market selection
Change after receiving training:
•Got knowledge on farming
•Understood importance of giving advice
•Worked on good relation with farmers
M4P 26 November 2008, Katalyst
Md. Babul Akhtar, 38
2005
2006
No of clients
600
800
Total sales
2,308 USD
3,846 USD
31
Facilitation
Monitoring
Results, farmers
Change after advice from retailer:
Strategies
Understanding
* Markets
* Impact
•Packaged seeds instead of own seeds
•Changed use of pesticides and fertilizer
Market selection
2005
M4P 26 November 2008, Katalyst
Monjuara (27) and Md. Kalam Sarkar (35)
They bought a cow
2006
Land used
16.5 dec
30 dec
Cost of seeds
Used their
own
1,500 BDT
Cost of
pesticides
none
750 BDT
Cost of fertilizers
none
750 BDT
Van cost
350 BDT
none
Toll for selling at
market
350 BDT
none
Yield
1,000 pieces
2,000 pieces
Revenue
6,020 BDT
23,200 BDT
Profit
82 USD
311 USD
32
M4P 26 November 2008, Katalyst
Commercial Health care
33
Facilitation
Strategies
Monitoring
Understanding
* Markets
* Impact
Market selection:
Commercial Health care
Market selection
• One of the biggest service markets,
M4P 26 November 2008, Katalyst
• Excellent growth potential,
• Skilled jobs for women.
34
Facilitation
Strategies
Monitoring
Understanding
* Markets
* Impact
Commercial Health care
How does the sector looks like?
Market selection
• 150 000 000 people need healthcare in Bangladesh,
• Doctors 1 – 10 000,
M4P 26 November 2008, Katalyst
• 2/3 of healthcare paid directly by households,
• 500 000 individuals travel overseas for treatment annually,
• Government hospital occupation rate is > 100%,
• 80% of healthcare is from commercial providers,
• contribution to GNP in 2004 – 2005 :
•Private health care 2.33%
•Public healthcare 0.77%.
35
Facilitation
Monitoring
Health care is special….
Strategies
Understanding
* Markets
* Impact
Market selection
•Main access for poor people is private health care,
•Public and private delivery not separable,
M4P 26 November 2008, Katalyst
•Large donor support for public, none for private,
•Ethics are different.
36
Facilitation
Monitoring
Understanding
* Markets
* Impact
Strategies
Strategy:
Commercial Health care
Market selection
Quality improvements through:
oBetter medical workers:
M4P 26 November 2008, Katalyst
Government regulations,
Capacity of commercial training institutes.
oChange in attitude of hospitals and diagnostic centers.
37
Facilitation
Strategies
M4P 26 November 2008, Katalyst
Market selection
Activities: Health Care
Katalyst support:
Monitoring
Understanding
* Markets
* Impact
Courses for
Course duration
BSc nursing
4 years
Health technology
3 years
Medical assistant
3 years
Community health
worker
1 year
Paramedics
1 year
Community
paramedics
2 years
38
Facilitation
Strategies
Market selection
Monitoring
Understanding
* Markets
* Impact
Activities: BSc Nursing
If you do not address the quality and
availability of nurses:
STAY OUT OF HEALTH CARE!
M4P 26 November 2008, Katalyst
The situation:
•Ratio Doctors-Nurses 3 : 1, should be 1 : 3,
•No 4 year courses,
•Low status of nurses in hospitals and clinics,
•Law prohibited private universities to train.
39
Facilitation
Monitoring
Activities: Health Care
(2 but last slide)
Strategies
Market selection
Understanding
* Markets
* Impact
Activities:
• We found a good implementing partner,
M4P 26 November 2008, Katalyst
• We organized interested universities to
lobby for change in regulations,
•We assisted universities to develop new
curriculum,
•We assisted in demand creation.
40
Facilitation
Strategies
Monitoring
Understanding
* Markets
* Impact
Initial results: Health Care
(one but last slide)
Market selection
•8 Universities have received a license for BSc Nursing,
•300 Students have enrolled in 2007 – 2008,
M4P 26 November 2008, Katalyst
•15 Private institutions are in pipeline to obtain approval,
•Too early to say anything about change in the sector.
41
M4P 26 November 2008, Katalyst
Last slide:
• M4P can be very effective, also beyond the obvious
sectors
• Projects will look different in different countries, but
the basics remain valid.
• Is also applicable in remote, weak markets (see
afternoon with Alwyn Chilver)
• It takes time, flexibility and good staff (See afternoon
with Manish Pandey)
42