Oxfam

Discussion Paper

Making markets empower the poor

Programme perspectives on using markets to
empower women and men living in poverty

Erinch Sahan (Oxfam GB) and

Julia Fischer-Mackey (Oxfam America)
7 November 2011

Market-based development programmes can help people living in poverty

benefit from markets and lift themselves out of poverty. However, many
such approaches do not pay attention to power imbalances that perpetuate
marginalisation and poverty. To reach their fullest potential, market-based
programmes should actively strengthen the power of marginalised
smallholders and women. Major events in the market system, induced by
changes in policy, regulation, social movements or business models can
provide opportunities to intervene and rebalance power. Market-based
programmes should also be complemented by non-market interventions that
address poverty and sustainability issues in household and environmental
systems. Through its work, Oxfam has encountered some of the challenges
and limitations of market-based approaches. This paper is intended to raise
these challenges with the broader community of development practitioners
employing market-based approaches and share approaches Oxfam has taken
to addressing them. The most conspicuous of these challenges is a need to
address power imbalances between smallholders and larger businesses, as
well as between women and men.

Oxfam Discussion Papers

OxfamDiscussionPapersarewrittentocontributetopublicdebateandtoinvite
feedbackondevelopmentandhumanitarianpolicyissues.Theyareworkin
progressdocuments,anddonotnecessarilyconstitutefinalpublicationsorreflect
Oxfampolicypositions.Theviewsandrecommendationsexpressedmaybethoseof
theauthorandnotnecessarilythoseofOxfam.
Formoreinformation,ortocommentonthisdocument,email
research@oxfam.org.uk

www.oxfam.org.uk
Summary
Marketbaseddevelopmentprogrammesareincreasinglyattractingmoresupportfrom
donors.However,itisimportantthattheydonotlimitthemselvestomarketready
individuals,butreachmoremarginalisedgroupsthatarenotreadytoengagemeaningfully
inmarkets.Thispaperisintendedtoraisechallengesaroundpowerdisparitiesinmarkets,
whichcanpreventmarketbasedprogrammesfromreachingthosewhoarenotmarket
ready.ItalsosharesapproachesOxfamhastakentoaddressthesechallenges.
Peoplearepoorbecausetheyarepowerless.1Totacklepoverty,everydevelopment
programme,includingmarketbaseddevelopmentprogrammes,shouldfocusonincreasing
thepowerofmarginalisedwomenandmen.

Where to intervene: not only in the market system

Marketbasedapproaches,whichnaturallyoperatewithinthemarketsystem,willnot
addressallpovertyissues.Itisimportantthattheyareaccompaniedbycomplementary
interventionsinhouseholdandenvironmentalsystems.Forexample,itmaybenecessaryto
addressgenderbasedviolence,buildcapacitytosustainablymanagenaturalresources,or
providewaterinfrastructuretocommunities.Interventionsinthemarketsystemmustalso
ensurethattheydonotdestroythenaturalenvironment,onwhichthesurvivalofthemarket
systemdepends.

When to intervene: leverage catalytic events that disrupt markets

Eventssuchassignificantgovernmentpolicychanges,largescalesocialmovements,
migration,regulatoryreform,changesinpowerfulfirmsbusinessmodels,technological
changeordisasterscanopenupthepossibilityforinterventionstorebalancepower.
Programmescanbuilduponthesedisruptionsandintervenetosupportmarginalised
producersintakingadvantageofnewopportunitiesandacquiregreaterpower.Inthe
absenceofsuchcatalyticevents,interventionscanthemselvesdisruptmarketstorebalance
power.However,theycanhavegreaterimpactwhentheybuilduponacatalyticeventthatis
alreadyoccurring.

Why to intervene: to disrupt the market and rebalance power

Therearethreeunderlyingapproachesthatdrivethedebateonmarketbaseddevelopment.
Theydifferintheextenttowhichtheyfocusonrebalancingpower.Theyalsoprovide
differentlevelsofflexibilityinallowingorpreventinginterventionstoshakeupthemarket
systemandrebalancepower:
1. Avoidinterveningdirectlytoassistthoseinpoverty,butratherplayafacilitativerole
inconnectingthosepeople,firms,orinstitutionsalreadyinthemarketsystem;
2. Playaserviceprovisionroleinmarketsdirectlytofillgapsinthemarketsystem;and
3. Intervenetemporarilybutdirectlyinmarkets,informedbyanunderstandingof
marketincentives,soastodisruptmarketsandrebalancepower.
Acrosstheseapproaches,underlyingbeliefsaboutmarketswillshapeinterventions.Beliefs
centredonfreemarketswillmakeaprogrammereluctanttointervenemoreactivelyinthe
marketsystem.Thiswillleadtoreachingonlythemarketready.

How to intervene: Oxfams experience

Unlessmarketsaredisruptedandpowerrebalanced,programmeswillonlyreachsuch
marketreadysmallholders.Manymarginalisedpeopleliveinremoteareas,orare

MakingMarketsEmpowerthePoor,OxfamDiscussionPaper,November2011 2
surroundedbyundevelopedmarketsystems.Theseareplaceswherethecostsandrisksof
doingbusinessinhibitcommercialinvestment,leadingtoproducersbeingdeniedaccessto
keyservicessuchasfinance.Additionally,someofthemostmarginalisedpeople,especially
women,faceculturalexclusionfrommarkets.Suchpeoplecanbeexcludedfromnotonly
marketsbutalsofrombroadersociety,throughexclusionfromrights,resourcesand
relationships.2Toassistmarginalisedpeople,aprogrammeshouldactivelyaddressthe
barriersthatkeepthesepeoplefromusingmarketstoliftthemselvesoutofpoverty.Inorder
toreachmoreremoteandmarginalisedsmallholders,Oxfamtriestodisruptmarketsand
rebalancepowerviafourinterventions:
1. Supportingproducerorganisations(POs):EffectivePOs(suchascooperativesand
collectives)canempowersmallscaleproducersthrougheconomiesofscale,
increasedinfluenceinoutputandinputmarkets,andstrengthinnumbers.Oxfam
assistsPOstobuildthemarketpowerofproducers,andencouragesthemtotake
progressivemeasurestoensureequalparticipationandbenefitsforwomen
producers.
2. Supportingnewbusinessmodels:Enterprisessuchasspecialisedintermediaries
andserviceprovidersoftenfillanimportantgapinmarketsforsmallholders.They
allowapoorlyorganisedproducerbase(smallholders)toconnecttosophisticated
andmoderninputandoutputmarkets.Theyalsoprovidesupportinproductquality
control,processing,andaccesstoinputs.WhilethisrolecanbeperformedbyPOs
themselves,whichoperateattheprimarytier,itisoftenmoreeffectiveforittobe
performedbyaseparateenterpriseoperatingatasecondlevel(i.e.servingmultiple
POs).Thesehighertierenterprisescanthemselvesbeownedbyagrouporunionof
POs.Tobesuccessful,enterprisesmustadapttobecommerciallyefficient,butalso
empowersmallholders,includingwomen,byhelpingthembecomemore
competitiveandabletoaccessmorelucrativeformalmarkets.Itisalsoimportantfor
developmentprogrammestoworkwithexistingfirmstogetthemtodealmorefairly
andtransparentlywithsmallholders.
3. Makingprecommercialinvestments:Manymarginalisedpeoplelacktheassetsand
skillsnecessarytousemarketstoliftthemselvesoutofpoverty.Providingpre
commercialinvestmentstosuchindividualsandgroupsisoftennecessarytoallow
themtoparticipatemeaningfullyinmarkets.Providingassetsandtrainingfor
womenisacorepartofOxfamswork.
4. Givingmarginalisedgroupsavoiceingovernanceandinvestment:Where
regulationsandpublicinvestmentaddresstheneedsofsmallscaleandfemale
producers,thiscanbringnewproducersintothemarketandleveltheplayingfield
forwomen.Oxfamsupportsmarginalisedgroupsindealingswithgovernments,
helpingthemtoaccesspublicprecommercialinvestmentintechnologiessuchas
irrigation.Italsoworkstoinfluencepoliciesthathaveanimpactonwomen,suchas
thosecoveringlandrights.
Itisimportantthatinterventionsopenupnewopportunitiesformarginalisedproducers
withoutexposingthemtoexcessiverisk.Promotingaccesstolocalmarketsandthe
diversificationofcropsiscriticalforprogrammestoprotectsmallholdersfromsuchrisk.This
couldalsoincludesupporttodiversifysourcesofincomebypromotingaccesstoofffarm
income.Itisalsocriticalthatprogrammesavoidfacilitatingcontractualrelationshipsthatlock
smallholdersintosinglevaluechainsanddependentbusinessrelationships.

MakingMarketsEmpowerthePoor,OxfamDiscussionPaper,November2011 3
Glossary of terms
Businessmodels:Abusinessmodeldescribeshowanindividualfirmorganisesitselfandits
relationshipsinordertocreateandcapturevalue.Itexplainshowthebuildingblocksof
production,marketing,costsandrevenuescometogethertoprovideavaluepropositioninthe
marketplacethatdifferentiatesthefirmfromitscompetitors.Thebusinessmodelconceptis
linkedtobusinessstrategy(theprocessofbusinessmodeldesign)andbusinessoperations(the
implementationofacompanysbusinessmodelintoorganisationalstructuresandsystems).
Crowdingin:Makingmarketsworkforthepoorprogrammesaimtostimulateprivateand
publicsectoractorstotakeonnew(oradapted)functionstocrowdinwhileavoiding
becomingactivemarketplayersthemselves.
Facilitativeapproach:Theapproachoffacilitatingexistingmarketactorstoperformrequired
roles,asusedbythemakingmarketsworkforthepoorapproach.
Formalmarkets:Aregulatedsystemwithinwhichtheexchangeofgoodsandservicestakes
place.
Makingmarketsworkforthepoor(M4P):Anapproachthatgrewoutofthemarket
developmentworkoftheUKDepartmentforInternationalDevelopment(DFID)andothers.It
focusesonunderstandingwheremarketsystemsarefailingtoservetheneedsofpoorpeople,
andactstocorrectthosefailings.M4Pdividesthemarketsystemintothreeparts:thecore
(whereprovidersandconsumersexchangegoodsandservices);therules(formalorinformal
ruleswhichshapebehaviour);andthesupportingfunctions(suchasinformation,logistics,
marketing).InM4Pinterventions,donorsorNGOsplayafacilitativeroleratherthananactive
partinthemarketsystem,i.e.theycatalyseothers.Interventionsmaybesmallthemselves,but
theystrivetoleveragemarketforcestocreatesustainableimpactatalargescale.3
Marketactors(akamarketsystemactors):Someonewhoisactivelyparticipatinginthe
exchangeofgoodsorservices.
Precommercialinvestment:Upfrontgrantorassettransfertoeithera)enablenewmarket
actorsorenterprises(whichmaylackassets,skills,orknowledge)toaccessamarket,orb)
ensurethatthenecessarymarketsysteminfrastructure(e.g.transportationservicesorrural
marketprovision)isoperational,toenablemarketactors,orenterprisestoinitiateanew
businessmodelorvaluechainwithinthemarketsystem.
Producerorganisations(POs):ForOxfam,therearethreedefiningfeaturesofaPO:
1. Itisabusiness(alsocalledanenterprise).Itmustgenerateenoughprofittoprovide
tangiblebenefitstoitsmembersandcoveritsowncosts.
2. Itisownedandcontrolledbyitsmembers:smallscaleproducers.
3. Itcollectivelymarketsorsupportsjointmarketingofcommoditiesproducedbyits
members.
Valuechain:Thefullrangeofactivitiesthatarerequiredtobringaproduct(oraservice)from
conception,throughthedifferentphasesofproduction,todeliverytofinalconsumersand
disposalafteruse.Oxfamtakesabroadunderstandingofvaluechains,andlooksatthe
complexrangeofactivitiesimplementedbyallactors(primaryproducers,processors,traders,
serviceproviders,etc.)tobringarawmaterialtotheretailofthefinalproduct.Thebroadvalue
chainstartsfromtheproductionsystemoftherawmaterialsandwillmovealongthelinkages
withotherenterprisesengagedintrading,assembling,processingandotheractivities.

MakingMarketsEmpowerthePoor,OxfamDiscussionPaper,November2011 4
1. Introduction
Inrecentdecades,manydevelopmenteconomistsandpractitionershavenoticedthat,
whileeconomicgrowthsometimescontributestopovertyreduction,thetypeofgrowth
andthewaysthatmarketsworkoftendeterminehowmanypeoplelivinginpoverty
benefitfromeconomicgrowthandtrade.4Thequestforpovertyreducinggrowthand
marketactivityhasledtoanarrayofnewapproachesthataimtoalterthewaymarkets
work.Thereisconsiderableexcitementaroundthesenewapproaches,partlyduetothe
disappointingresultsofmoretraditionalcharitybasedlivelihoodsprogrammes.
Oxfamusesmarketbasedapproachestoenhancethelivelihoodsopportunitiesofwomen
andmenlivinginpoverty.However,itisimportanttorecognisethatmarketsarebiased
systems,withtherulesofthegamebeingshapedbythosewitheconomicorpolitical
power.Thechallengehasbeenapplyingtheseapproachesinremoteandthinmarkets,
andensuringtheyservetheinterestsofwomenorothermarginalisedgroups.
Thispaper(andOxfamslivelihoodsworkgenerally)focusesonagricultureandrural
marketsbecause70percentoftheworlds1.4billionextremelypoorpeopleliveinrural
areas.5Forthem,agricultureisoftenthebestopportunitytoworkandtradetheirway
outofpoverty.Also,studiesshowthatgrowthgeneratedfromagricultureisfourtimes
moreeffectiveinreducingpovertythangrowthinothersectors.6However,urban
marketbasedapproacheswillbeincreasinglyimportantasurbanisationindeveloping
andmiddleincomecountriescontinues,andfurtherworkinthisareawillbeessential.7
Marketsprovidedifferentbenefitsforwomenandmen,smallholdersandlargescale
producers,andremoteruralandurbanpopulations.Thegrowthofmarketscaneasily
entrenchbiasesandpowerdisparitiesbetweenthesegroups.The2012WorldDevelopment
Reportarguesthatmarketshaveadifferentimpactonmenandwomenbecauseof
significantdifferencesintimeuse,accesstoassetsandcredit,andtreatmentbymarkets
andformalinstitutions.8Generatingeconomicgrowthisoftennotenoughtoempower
women.Norisitnecessarilyenoughtogettheworldspoorestpeopleoutofpoverty.Over
the20yearsto2001,only1.5percentofglobaleconomicgrowthbenefitedpeopleonless
than$1perday(whichwasonethirdoftheworldpopulationatthetime).9Itisthequality,
notquantity,ofeconomicgrowthonwhichprogrammesshouldbefocused.
Marketbasedapproachescanfailtoreachthemostmarginalisedpopulations,whooften
facesocialexclusionbeyondmereexclusionfrommarkets.Forexample,socialsafetynets
andlabourrightsprotectionswillstillbecriticalinmanycontexts.Forthisreason,the
approachesoutlinedinthisdiscussionpapercannotreplaceinterventionsinotherareas.
Oxfammaintainsitsnonmarketbasedlivelihoodswork,andcautionsagainstviewing
marketbasedapproachesasapanacea.
Throughitswork,Oxfamhasencounteredsomeofthechallengesandlimitationsof
marketbasedapproaches,andthispaperisintendedtoraisesomeofthesechallengeswith
thebroadercommunityofdevelopmentpractitionersemployingmarketbasedapproaches.
Themostconspicuousofthesechallengesisaneedtoaddresspowerimbalancesbetween
smallholdersandlargerbusinesses,aswellasbetweenwomenandmen.
Toaddresstheseissues,programmesthatoperateinthemarketsystemneedtotakea
flexibleapproachandincorporateanuancedunderstandingofhouseholdand
environmentalsystems,whichinterrelatewithmarketsystems.Complementary
programmesthatdirectlyaddresspovertyissuesinhouseholdandenvironmental
systemsarealsoneeded.

MakingMarketsEmpowerthePoor,OxfamDiscussionPaper,November2011 5
2. Background to market-based approaches and
beliefs
Themajorityofmarketbasedapproachescanbebrokendownintothreegroups,basedon
theunittheyanalyseandseektoinfluence:anindividualenterprise,thevaluechain,orthe
marketsystem.
1. Enterprises
Theindividualenterprisehasbeenthefocusofnumerouspovertyreductionefforts.
Thereiswidespreadsupportforenterprisedevelopment,particularlyforsmalland
mediumsizedbusinesses(SMEs),whichmayincludecooperativeenterprisesformedby
smallscaleproducers.Supportincludes:

financialsupport,intheformofmicrofinance;missingmiddlefinance,which
fillsthegapbetweenmicrofinanceandcommercialfinance;firstlosscapital;
patient/longtermcapital;orventurecapital;

technicalassistance,forexample,mentorshiporpeernetworksetc.;and

capacitybuilding,forexampleinfinancialliteracyandbookkeeping.10

Socialentrepreneurs,whousesustainableandscalableforprofitbusinessmodelsto
createsocialandeconomicvalue,attractcapitalfromfoundationsandsocially
responsibleinvestors.AclassicexampleistheAravindEyeCareHospitalsinIndia,
whichusepaymentsfromaffluentpatientstoprovideeyesurgeryforimpoverishedand
marginalisedindividuals.11Awiderangeofinclusivebusinesseshavesprungup,which
areoftenlargerbusinessesthatareintendedtoserveoremploypeoplelivinginpoverty.
Investinginsocialentrepreneursandinclusivebusinessesissometimesknownasimpact
investing,whichmeansinvestingforsocialandeconomicreturns.

2. Value chains
In1985,MichaelPorterpopularisedthevaluechainsconcept,whichproposedthat
valuechainsencompassthefullrangeofactivitiesandservicesrequiredtobringa
productorservicefromitsconceptiontosaleinitsfinalmarkets,andthattheproduct
gainedvalueasitmovedalongthevaluechain.12Thevaluechainapproachto
developmentandpovertyalleviationinvolveslookingateachlinkinthischain,
consideringhoweachonerelatestothosebeforeandafterit,andhowmuchvalue(or
profit)eachlinkcreatesorcaptures.Forexample,usingPortersconcept,NGOscanhelp
producersnearthebeginningofthevaluechaincapturemorevalue(andprofit)by
processingorrefiningaproductbeforetheytradeittothenextmemberofthevalue
chain.
Valuechainprojectsfocusonbusinesstobusinessrelationships,andtheyencompassa
rangeofactivitiesintendedtomakevaluechainsmoreeffectiveandinclusive,including
changingandstrengtheningrelationshipsbetweenlinks,andimprovingtheflowof
information,resources,andgoodsalongthechain.13

MakingMarketsEmpowerthePoor,OxfamDiscussionPaper,November2011 6
 3. Market systems
Theenterpriseandvaluechainapproachesarelimitedintheirfocustooneorafewmarket
actorsandproducts.Amorerecentsystemicapproachtounderstandingmarketshasbecome
influential.Systemsthinking,aconceptwhichwasadaptedbyPeterSengeandothersfrom
itsscientificusetoanalyseorganisationsandbusinesses,definesasystemasasetof
variablesthatinfluenceoneanother.Systemsthinkingemphasisesthatcauseandeffectmay
notbeclosetooneanotherintimeorspace,thatfeedbackloopscanamplifyornullify
actions,andthatsmallchangescancreatebigresults.Asystemsthinkingapproachto
marketsunderstandstheircomplexityanddynamism.Itemphasisestheimportanceof
understandingallelementsinasystem,includinggovernment,infrastructure,andhidden
forcessuchasculturalbeliefsandpractices,whichareoftenignoredinmorelimitedmarket
basedapproaches.Becausechangestoasystemmayproduceunexpectedresults,itis
importanttomonitormarketinterventionscloselytodetectunintendedconsequences,and
addressthosethatarenegative.
Oxfamembracesamarketsystemsapproachbecauseitrecognisesthecomplexityofmarkets
andtheroleofnonmarketactors,suchasgovernments,andtheimportanceofrelated
factors,suchasinfrastructure,ondevelopmentandlivelihoods.
MakingMarketsWorkforthePoor(M4P)isanapproachthattargetskeyweaknesseswithin
marketsystems.Itdoesnotfocusonasinglevaluechain,insteadlookingatallelementsof
themarketsystemthatsurroundpoorercommunities.Itfostersunderstandingofthe
functionsandactorswithinthesesystemsandaimstostrengthenthem,sotheycanbetter
servetheneedsofpoorercommunities.M4Padvocatesafacilitativeapproach,whichmeans
thatNGOsanddonorsseektocatalyseexistingmarketactorstocreatesustainableand
scalablechanges,ratherthanprovidingmarketfunctionsthemselves.14Inotherwords,under
M4P,NGOsanddonorsavoidplayingaserviceprovisionrole,andinsteadfocusongetting
existingmarketactorstoprovidetheseservices.Thefacilitativeapproachistimebound,and
generallydoesnotinvolveactiveparticipationinthemarketorcostlyinterventions.
However,theM4Papproachgenerallydoesnotconsiderhiddenforcessuchascultureand
gender,whichOxfambelievesinfluencethewaysthatmarketsworkandthedistributionof
theirbenefits.

Different beliefs about markets lead to different solutions

Marketbasedapproachesarefoundedonabeliefthatmarketscanleadtopovertyreduction.
However,thedegreetowhichmarketsmustbechangedtoachievethisresultisdebated.
Organisationshavefundamentaldifferencesinthewaytheyconceiveofkeyissues,including
therelationshipsbetweenmarkets,power,andgender;incentives;andsustainability.These
differencesinbeliefsleadtodifferenttypesofinterventions.
Oxfambelievesthatpovertyisaboutpower.TheWorldBanksVoicesofthePoorstudy,which
talkedto64,000peoplelivinginpovertyacrosstheworld,concludedthatthecommontheme
underlyingpoorpeoplesexperiencesisoneofpowerlessness.15Povertyreductionmust
addressthis.Itisnotagiventhatmarketbasedapproacheswillreduceunequalpower
relations;infact,interventionsmayexacerbatedisparitiesiftheyarenotcarefullyconceived
andimplementedwithsufficientparticipationbytheaffectedcommunities.16Sometimes,
developmentinterventionsneedtoshakeupexistingpowerstructures.Thismayinvolve
fundingorsubsidisingparticularservices,buildingcapacityandinstitutions,investing
financialresources,orbrokeringfairerdealsbetweenmarketactorswithunequalpower.
Incentivesareanotherareaofdisagreementbetweenorganisations.Manywhohavegreat
faithinmarketsbelievethat,ifaneedexists,amarketactorwillnaturallyfillit.However,

MakingMarketsEmpowerthePoor,OxfamDiscussionPaper,November2011 7
Oxfamoftenfindsthat,inremoteruralareas,theincentivestomeettheneedsofsmallscale
farmersareinsufficient,andsubsidiesorotherincentivesmayberequired.Evenifone
supplierdoesarrivetofillaneed,itdoesnotnecessarilymeanthatothersupplierswill
crowdintothemarket,assomeM4Padvocatesassume.Thismaybebecause,evenifthe
businessmodelworks,thereturnsfromathinmarketdonotjustifyfurtherentrants.The
suppliermaythereforebeinapositiontoexploititscustomersand,topreventthis,other
interventionsmayberequired.
Anotherdifferenceinworldviewaffectinghoworganisationsinterveneistheconceptof
sustainability.M4Pusesthetermtomeaneconomicsustainability,i.e.thattheactivitieswill
continuetobeeconomicallyviableafterthedevelopmentprogrammesintervention.Asa
resultofthisunderstandingofsustainability,facilitativeapproachesmayinsistthatexisting
marketactorsperformallkeymarketfunctions.ForNGOsandgovernmentstoperformkey
functionsmaybeseenasunsustainable.
Oxfamdisputesthisunderstandingofeconomicsustainability.Privatesectormarketactors
abruptlyexitmarketsallthetimejustbecausetheyareprovidingafunctioninamarket
todaydoesnotmeantheywillbethereindefinitely.Atthesametime,governmentbodies
andNGOsoftenperformmarketfunctionsforlongperiodsoftime.Theymayalsoneedto
performafunctioninthemarketforalimitedtimebeforeamarketactorcantakeontherole.
Oxfamsbroaderunderstandingofsustainabilityprovidesitselfandothernonmarketactors
(includinggovernments)withgreaterflexibilitytoperformcriticalroles.
Inadditiontothisdifferenceinbeliefabouteconomicsustainability,Oxfamunderstands
sustainabilityasatrioofissues:economicsustainability,socialsustainability,and
environmentalsustainability.Theimportanceofsocialandenvironmentalsustainabilityis
oftenunderappreciatedbyproponentsofmarketbasedapproaches.
Insummary,anorganisationsunderlyingbeliefsaboutmarketswilldeterminethekindsof
interventionsitconducts.Threedifferentconclusionscanfollowfromdifferencesinbeliefs:
1. Programmesshouldavoidinterveningdirectlytoassistthoseinpoverty,butshould
playafacilitativeroleinconnectingexistingmarketactors;
2. Programmesshouldplayaserviceprovisionroleinmarketsdirectlytofillgapsin
themarketsystem;or
3. Programmesshouldintervenetemporarilybutdirectlyinmarkets,informedbyan
understandingofmarketincentives,sothattheycandisruptmarketstorebalance
power.
Whileallthreeapproachesrecognisetheneedtoincreasesmallholdersproductivityinorder
tomakethemcompetitive,theyallowfordifferenttypesofintervention.Thispaperargues
thatpowerdisparitiesinmarkets,betweenwomenandmen,smallholdersandlargescale
producers,andremoteruralandurbanpopulations,mustbebetterincorporatedintomarket
basedapproachesandthatinterventionsmustbedesignedtoactivelyrebalancepower.In
addition,interventionstargetingmarketsystemsshouldalsobeaccompaniedby
complementaryprogrammesthataddresspovertyissuesinhouseholdandenvironmental
systems.

MakingMarketsEmpowerthePoor,OxfamDiscussionPaper,November2011 8
 Figure 1: The three systems: market, household, and environmental/farm17

policy
governance
attitudes/beliefs
gender

Beliefs about gender and its implications for markets work

Oxfambelievesthatgenderinequalityandthedenialofwomensbasichumanrightsare
amongthegreatestbarrierstopovertyeradication.Societalbeliefsaboutgenderrolesextend
tothewaysinwhichmarketswork,limitingtheabilityofwomentoengagein,andbenefit
from,marketactivities.Unequalpay,conditions,andpromotionopportunitiesinlabour
marketsareperhapsthebestknownexamplesofgenderdiscriminationinmarkets.Ithas
beenwidelydocumentedthatwomenworldwideareregularlypaidlessthanmenfor
performingthesamework.
Inpoorruralcommunities,womenareoftenexcludedfromparticipatinginmarkets.Thisis
causedbydiscriminationinlandtitlingandassetownership,culturalnormsthatprohibit
themfromengaginginmanylucrativeactivities,andmorelimitedaccesstofinancialservices,
technology,andgovernmentextensionservices.18Marketdevelopmentthatbenefits
householdsmaynotbenefitwomen.Atworst,interventionsthatimprovemensincomeand
skillsmayreinforceunequalpoweroverwomeninhouseholds.Conversely,assetsand
incomeinwomenshandsislinkedtolowermalnutrition19aswellasincreasesinagricultural
productivitybybetween2.5percentand4percent.20

Oxfams focus on womens economic leadership

Oxfamputswomensrightsattheheartofallitsactivitiesandprogrammes.Initsmarket
systemswork,itusesagenderedmarketmappingexercisetoidentifywhichmarketsare
mostlikelytooffersignificantopportunitiestoempowerwomen,andthenusesthis
informationtodecidewheretointervene.Whenconsideringwhatmarketsystems
interventionsOxfamwillsupport,italsoconsidersissuessuchastimeconstraintsandother
responsibilitiesthatwomenhaveinordertochooseeconomicactivitiesthatreduce,rather
thanaddto,theburdensandconstraintstheyface.OxfamsresearchinoneareaofTanzania,
forexample,indicatedthatthepoultry,chickpea,andricesubsectorsofferedgreater
potentialforwomenthanthejatrophaorcottonsubsectors.21
AnalysingthepotentialofmarketstoempowerwomenhasonmanyoccasionsledtoOxfam
changingthefocusofitsprogrammes.Forexample,inthePhilippines,asaresultofresearch

MakingMarketsEmpowerthePoor,OxfamDiscussionPaper,November2011 9
andanalysisongender,Oxfamchangedaprogrammesfocusfrombiofuelstoprocessed
moringaleaves,whichofferedmoreopportunitiesforwomen.
Communitybasedresearchandanalysiscanhelptomakevisiblewomenscontributionsto
agricultureandtheeconomy,andallowforcommonunderstandingtodeveloparoundthe
(oftenunequal)accessenjoyedbywomenandmentokeyservices,assets,roles,andbenefits
inagriculturalactivities.Thiscommonunderstandingcanbethebasisforchangingbeliefs
andpracticesrelatedtogender.
Oxfamhasdevelopedagenderedenterpriseandmarketstoolkitthatpromoteswomens
economicleadership.22Thisisusedtounderstandhowmarketinstitutionsandservices
reinforcegenderinequalitiesandingrainedbeliefsabouttheappropriaterolesforwomen
andmen,alongsideconsiderationsofpowerinequalitiesbetweenlargeandsmallmarket
actors.Oxfamsapproachidentifiespracticalstepstoimprovewomensmarketpowerand
roles,makingeffective,relevantchangeinaparticularcontext,andprovidingwomenwith
leadershipopportunities.23
Selectingmarketsbasedontheirpotentialforbuildinggenderequalityisessentialin
identifyingopportunitiesforWEL.ItisalsoimportantthatstrategiestodevelopWELare
integratedintowiderstrategiesinmarketandenterprisedevelopment,sothatallsmall
producers(orthecommunityasawhole)benefit.Thus,abusinessopportunitybecomesan
incentivetoencouragenewpracticesforpositiveoutcomesforwomen.
Ingrainedattitudesandbeliefsinlocalcommunitiesaroundgenderrolescanseverelyinhibit
anyprogrammesabilitytochangegenderedpowerdynamics.Therefore,thereisaneedto
promoteideasofgenderequityinthesecommunitieswhereverpossible.Thiscaninvolve
makingthebusinesscasetoprivatesectordecisionmakersthatempoweringwomenwill
increasetheirprofits.InColombia,whereOxfamhaspartneredwithaprivatelyownedlocal
company,Alpina,toimprovelivelihoodsforsmallscaledairyfarmers,theprogrammehas
researchedanddisseminatedinformationabouttheextensive,butlargelyunrecognised,role
thatwomenplayinmilkproduction.AfterworkingwithAlpinatounderstandthe
productivitygainsfromprovidingwomenwithgreateropportunities,womennowhavea
moreformalroleinqualitycontrolinthesupplychain.24Thisincludesa40percentincrease
inthenumberofwomenwhosupplytoAlpina.25
InMali,Oxfamistryingtogetalocalbanktolendmoremoneytowomenbysettingupa
fundthatprovidesthebankwithaguaranteeonsuchloans.Thishasledtoadoublingofthe
averagenumberofwomeninthecooperativesthataccesstheseloans.26Intheseways,
Oxfamseekstoinfluenceinstitutionssothatwomencanbenefitmorefrommarket
development.27
Oxfamhasseenthatchangesingenderdynamicsinmarketsystemscanresultinchangesin
genderrelationsinbroadersociety.Womenwhobecomemorepowerfulwithinamarket
systemmaybecomemorepowerfulinotherrealmsaswell.Meanwhile,ifmarketsystem
interventionsignoregenderinequalities,marketchangesandeconomicgrowthcan
exacerbatedisparitiesandincreasewomensmarginalisation.

MakingMarketsEmpowerthePoor,OxfamDiscussionPaper,November2011 10
3. Power in the market system
Powerdisparitiesinthemarketkeeppeoplepoor.28Ifalivelihoodsprogrammedoesnot
identifyandlookforopportunitiestoaddressthesedisparities,itspovertyreductionimpact
willbelimited.Powerisimportantbecausesomevulnerablepopulationsaresopowerlessthat
theyarealmostcompletelyexcludedfrommarkets(e.g.thosewithdisabilitiesorrestricted
mobility).Othersparticipateinmarketsonpoorterms(e.g.theylacknegotiatingpoweror
optionsbecauseofgeographicalisolation,theyarepricetakers,orareengagedinmonopolistic
markets).Toreachmoremarginalisedpopulations,programmesneedtoaddresspower
imbalancespreventingmarginalisedpopulationsfrombenefitingfrommarketdevelopment.
Certaineventscanbecatalyticindisruptingamarketsystemsstatusquo.Examplesofsuch
eventsaremajorpolicychanges,socialmovements,technologicalchanges,newcompanies
enteringthemarket,existingcompanieschangingtheirbusinessmodel,disasters,orsocialand
demographicshifts.Theseeventsprovideopportunitiesforinterventionstorebalancepower
andbuildonthedisruptiontothemarketthroughvariousinterventionpoints.
BelowaredescribedfourinterventionpointsthatOxfamhasusedtorebalancepowerwithin
marketstobenefitmoremarginalisedandisolatedgroups.Thesedonotcoverthewhole
breadthofOxfamsmarketbasedinterventions,butinsteadprovideinsightsintohowcertain
approachescanbeusedandstrengthened.

i) Empowerment through producer organisations

Producerorganisations(POs)includecooperativeenterprises,associations,privatelimited
companies,andinformalnetworksofproducers.ThemajorityofPOsareagricultural,which
isthefocushere,buttheydoexistinothercontexts(e.g.POsofartisansinurbanareas).When
theyoperateeffectively,POsallowsmallholderstosharerisksandcosts,negotiate,and
bargaincollectively.Asaresult,throughPOs,producerscanbetteraccess,competein,and
influencemarkets,givingthemgreateraccess,competitiveness,andpower.29
However,POscanbeinefficientandsimplyaddunnecessarycosts,sothereisaneedto
developinnovativePObusinessmodelstoavoidinefficienciesanddependencies.Thereis
alsostrongevidencethatwomenareoftenexcludedfromdecisionmakingwithinPOs,and
concertedeffortsarerequiredtoprovideleadershipopportunitiesforwomen.

Access, competitiveness, and power

POsprovidetheirmemberswithmanyoftheadvantagesthatlargerproducersenjoy.
POsoftenaggregatetheirmembersproduceand,withhighervolumes,theymaybe
morepowerfulandlessdispensableassuppliers.Theymayalsobeabletoaccessbuyers
inhighervaluemarketsthatpayhigherprices.POscanalsodevelopinternalproduct
gradingprocessesandinvestinqualityimprovementsforproduce.ThiscanallowPOsto
meetthestrictqualityandhealthstandardsofhighervalueornichemarkets,whichis
oftentoocostlyanddifficultforindividualproducers.POsoftencarrygreatercredibility
andlegalstandingthanindividualproducers,sotheycanmoreeasilysecurecreditfor
improvingtheirbusinesses.OnemoreimportantroleforPOsistopromoteachangein
producersattitudes,empoweringthemtobemoreproactiveandstimulatingan
entrepreneurialmindset.
Forexample,intheOccupiedPalestinianTerritory,OxfamhassupportedaPOofherders
andveterinaryprofessionalstoprovidenewservicestomembers.Manyofthemembershad
becomeaccustomedtoreceivinghandoutsoffodderandbeingprovidedwithfreeveterinary

MakingMarketsEmpowerthePoor,OxfamDiscussionPaper,November2011 11
servicesbypreviousdevelopmentprojects.FollowingOxfamsintervention,thePOnow
providesmemberswithimprovedaccesstoinputsthroughbulkinputprocurement.Italso
providesitsmemberswithinformationonflockmanagementandproductivity,aswellasa
mobileveterinaryserviceofferingartificialinseminationservices.Asresultofthisimproved
accesstoinputsandservices,membersofthePOnowactivelyoperateasentrepreneurs,and
donotwaitfortheprovisionoffreeservicesorthedistributionoffodderandotherinputs.30
POscanmakebulkpurchasesofagriculturalinputs(suchasseedsorfertiliser),insurance,
logisticsservices,andwarehousing,resultinginlowercostsperproducer.Economiesofscale
canalsomakeiteasierforaPOtoinvestinprocessing,storage,ortransportfacilitiesthatcan
givememberstheabilitytochoosewhenandwheretoselltheirproducts.
Whilesmallproducersmayhavetroubleaccessinginformationaboutmarketrequirements
andprices,POsareabletoinvestmoretimeandresourcesingatheringandanalysingmarket
information.Theymaybeabletoextractmoreinformationfrombuyersondemandtrends
andmarketconditions.
InVietNam,residentsofTraVinhhadattemptedclamfarminginthepast,buthad
abandoneditbecausetheirclamswerebeingstolenfromtheopencoastalwatersinwhich
theywerefarmed.In2003,OxfamhelpedformthreePOs,knownasClamClubs,which
solvedthisproblembyusingpooledfundstopayguardsforthefarms.31Thestructureofthe
POsallowedmemberstoinvest(andprofit)atdifferentlevelsaccordingtotheirmeans.
Oxfamsetuparevolvingfundsothatpoorermemberscouldborrowmoneytoinvestin
babyclams,andthenpaybacktheirloansoncetheyweresold.Theprofitsweredistributed.
Theloanswererepaidwithinterest,sothatmorepoorresidentscouldjointhePOovertime,
makingthePOnotonlyequitableandinclusive,butsustainableandgrowthoriented.

(Dis)empowering women in POs

Thereisgeneralrecognitionthatwomenexperiencemajorchallengesinparticipatingin,and
benefitingfrom,POs.32Theyareoftenunderrepresentedandsometimesface
discrimination.33ManyPOsrequirememberstoownland,whichinmanycontextslimitsthe
numberofwomenwhoareeligible.34Otherbarriersincludetheirlackofvoiceintheir
communities,andthetimerequiredtoactivelyparticipate.Culturalbarrierscanalsolimit
womensparticipationinPOs.Forinstance,insomecultures,womenarenotallowedtoleave
theirhomeswithouttheirhusbandspermission.Additionally,largerandmoreformalPOs,
aswellascoalitionsofcooperatives,oftenlimitmembershiptoheadsofhouseholdoreven
maleheadsofhousehold.35
Evenininstanceswherewomenarenotinaminority,menmaysimplybenefitmorefrom
collectiveaction.Forexample,evenwherewomenandmeninvestthesameresourcesand
timeinaPO,menmayhavegreateraccesstocredit,information,andcontactwithservice
providersandmarkets.36
Changinggenderbiasescanbeverydifficult.A2002evaluationofOxfamssupporttoa
coffeePOinHaitifoundthateffortshadbeenmadetoincreasewomensparticipationin
assembliesandelections.However,thisdidnotleadtochangesingenderrolesinproduction,
orwomensrepresentationamongpaidemployeesorleadershipanddecisionmaking
positionsinthePO.37
Therehavebeensomesuccessstories,though,ineffortstoincreasewomensparticipationin
POs.38IntheAmhararegionofEthiopia,anOxfamprogrammeconductedadvocacythatled
totheintroductionofanewlawwherebycooperativescouldonlyberegisterediftheir
leadershipincludedatleastonewoman.Italsoledtobylawspermittingdualmembership
fromonefamilyinallthecooperativesandunionswithwhichOxfamworkswithaviewto

MakingMarketsEmpowerthePoor,OxfamDiscussionPaper,November2011 12
scalingthisupinthenextphase.Thusfar,suchactionshaveledtowomensmembershipin
honeycooperativesincreasingfromzeroto22percent,andfromzeroto10percentincoffee
cooperatives(2,800women).39

Other challenges of POs

POscandiscriminateagainstmorevulnerableproducersandthosewithfewerassets.Thisis
because,inordertoparticipate,producersusuallymustbeabletoproduceasurpluscropor
productthatmeetsthedemandsofthetargetmarketandsatisfiesotherconditionsof
membership.POmembershipmayalsoimposecoststhataretoohighformanysmall
producers.Developmentprogrammesmayprovideassetsandcapacitybuildingsothat
poorerproducers,andwomenwhofaceagenderbias,areabletoparticipateinPOs.
CollectivedecisionmakingcanbedifficultforPOs,ascantheproblemsoffreeridersand
dishonestmembers.40POscanalsobeformedorcapturedbylocaleliteswhoseekto
maintaincontroloflocalmarketactivities.41SomePOsfailbecausecertainmembersfigure
outhowtoextractmorebenefitsorincomeforthemselves,causingmemberstolosetrustin
thegroupandabandonit.Forthisreason,itisveryimportanttobuildtrustandrobust
processesinordertopreventindividualsfromexploitingopportunitiestobenefitthemselves
attheexpenseofothermembers.
ItoftentakesanumberofyearsforaPOtobreakevenandbeabletopayitsmembersprices
thatarehigherthanthoseofferedbyothertraders.Untilitreachesthispoint,membersmay
havetomakeinvestmentsinthePOwithoutreceivinganybenefits,whichprevents
participationbypoorerproducerswhocannotmakesuchsacrifices.Additionally,inmany
POs,thereisadelaybetweenproducebeingcollectedandpaymentsbeingmade,whichmay
alsopreventpoorerproducersfromparticipating.
Thus,addressingpowerdisparitiesbypromotingPOscomeswithmanychallenges.
Therefore,newPOmodelsmustbedeveloped,andmuchmoremustbelearnedabouthow
toaddressmarginalisationbasedongenderorassetownershipinPOs.

ii) New business models: specialised intermediaries, service

providers, and innovative partnerships
Smallproducersoftenfacesignificantbarriersthathindertheirabilitytoparticipatein
lucrativemarkets.Oneofthesebarriersisalackofspecialisedintermediaries,whichare
businessesthatbothfindnewmarketsandhelpsmallholdersaccessthesemarketsfairly.A
secondbarrierisalackofserviceproviderswhocanofferaffordableservicesappropriatefor
smallholders.Whereanexistingmarketactorisabletoperformeitheroftheseroles,Oxfam
aimstosupportthem.However,oftensuchenterprisesandintermediariesdonotexistinthe
market,orcannotservesmallholders,mainlybecausethebusinesscaseforplayingthisrole
canbeweak.Smallholderscanbeseenasunreliableandascarryingbusinessuncertainty,
whichisabarrierforpotentialinvestorswhorequiregreaterstabilityandcertainty.Where
theseenterprisesdoexist,theymaynotbetailoringtheirservicessufficientlyfor
smallholders.POsmaybetheonlyenterpriseswillingtoinvestinnewactivitiesinremote
areas,soOxfammayoffergrants,loans,andtrainingtohelpestablishsuchenterprises.
SpecialisedintermediariesoftenservemultipleprimaryPOs.
Newbusinessmodelsareemergingoutsideofthecooperativestructurescommonlyfound
indevelopingcountries.Theseincludeprivatelimitedintermediariesthatarefullyownedby
smallholdercooperatives.TheseincludesuppliersofequipmentthatallowPOstoundertake
processing,andenterprisesthatspecialiseinsourcinghighergradeproducefrom

MakingMarketsEmpowerthePoor,OxfamDiscussionPaper,November2011 13
smallholders.ThediscussionbelowreflectssomeofOxfamsexperienceinsettingupand
supportingtheseenterprises.

Specialised intermediaries
Intermediariesoftenneedtolinksmallholderstomodernmarkets.Smallholdersneed
specialisedservicesto:
ensureproductqualityandconsistency;
havediversifiedproductionandmarkets;
accessnewtechnologies,financialservicesandcosteffectiveinputs;and
processproduce.
Theseareallservicesthatcanbeperformedorenabledbyenterprisesthatspecialisein
workingwithsmallholders.ThisrolecansometimesbeperformedbyaPO,butitoftenneeds
aseparateenterpriseinordertofocusandbuildexpertise.Thiscanbeperformedbyaprivate
enterprisewithasocialvisionoraproducerownedenterprise.
Theseintermediarieswilloftenensuresmallholderscanaccesstherightservicessotheycan
meettheprice,qualityandvolumerequirementsoftheirtargetmarkets.Anexampleisthatofa
sugarbeetfactoryinAzerbaijan,whichopenedbankaccountsforsmallholderstoensurethey
havecredittobuyqualityinputsatthestartoftheplantingseason.42Theycanalsobulk
purchaseinputs,andloantheseagainstfutureorders.Overall,suchintermediariescansupply
servicesorenableaccesstoservicesnecessaryforsmallholderstoaccessmodernmarkets.
OxfamsEnterpriseDevelopmentProgramme(EDP)issupportingandinvestingin17
specialisedintermediariesorserviceproviders.43Thisprovidesanopportunitytomeasurethe
successoffocusingonthesekeymarketactors.In2010,forexample,therevenuesofthe
smallholderswithintheprimaryPOsincreasedbyanaverageof39percent,whilethenumber
offarmermemberssupplyingthemhasincreasedby28percentsinceOxfamsintervention
began.
TheAmhararegioninEthiopiaprovidesaninterestingexampleofhowOxfamhas
supportedanenterpriseinperformingthespecialisedfunctionofanintermediary.Ambrosia,
aprivatelimitedprocessorthattradesininternationalmarkets,hasbuiltatrainingcentrethat
offersproducersinaremotefoodinsecureareaofEthiopiaqualityassuranceandbeekeeping
techniques,sharinginitialtrainingcostswithOxfam.Farmerswhopreviouslyproduced
smallquantitiesoflowqualityhoneyhavesincequadrupledtheiroutputandarenow
producinghoneyforexporttotheFrenchmarket.Anotherexampleofaspecialised
intermediaryisdescribedinCaseStudy1,below.

Case Study 1: Diversifying crops for cotton producers in India44

In South India, Oxfam helped cotton farmers convert to organic and Fairtrade-certified
cotton, which reduced input costs and improved farm health and labour conditions. The initial
income gains were roughly 20 per cent, relative to conventional farms. Subsequently, Oorvi,
a specialised intermediary that facilitates deals between farmers and buyers, developed a
relationship with an Indian company that wanted organic sesame. After four years of
diversifying into sesame, ochre, and other products, producers trading with Oorvi had
increased their incomes by 112 per cent, while local cotton farmers not trading with Oorvi
had increased their incomes by only 23 per cent in the same period. This experience and
others like it have led Oxfam to shift focus away from single value chains, to instead look at
larger market systems that encompass multiple sectors.

MakingMarketsEmpowerthePoor,OxfamDiscussionPaper,November2011 14
Innovative product and service providers
Creatingnewservicescanbringpreviouslymarginalisedproducersintothemarket.
However,itisoftenmoreeffectivefortheseservicestobeprovidedbyaseparateenterprise
totheintermediary.Thiscanbeaspinofffromtheintermediarydescribedabove,ora
completelyindependententerprise.However,inthissituation,theintermediarywould
continuetolinksmallholderstooutputmarketswhileprovidingotherspecialisedservices.
AnexampleofthiscomesfromEthiopia,whereOxfamissupportingaproducerowned
enterprise,Zembaba,tosetupabeehivemanufacturingenterprise.Thisisseparatefromits
roleasaspecialisedintermediary,whichisfocusedonfindingnewmarketsforhoney
producers.Priortothisintervention,hivesproducedbylocalcarpenterswerethewrong
dimensions,meaningabeecolonywouldnotsettleinthem.Oxfamprovidedamixofgrants
andloansforequipment,salaries,andworkingcapitaltoZembaba.Thesehivesdoubled
productivity,whileenablingwomentobecomebeekeepersbyovercomingtheneedtoclimb
treestoharvestwildhoney,whichisbothdangerousandculturallyinappropriatefor
women.45
Anotherexampleofanenterprisethatgivesmarginalisedgroupsaccesstocriticalbusiness
servicesisoutlinedinCaseStudy2,below.

Case Study 2: Transforming savings into enterprises and electricity

in Bougara, Mali46
Saving for Change (SfC) is a savings group programme supported by Oxfam and Freedom
from Hunger. SfC began in Mali in 2005, and now reaches over 300,000 women in that
country. It has also expanded to Cambodia, Senegal, El Salvador, and Guatemala. SfC
animators work in villages to organise women into savings groups of 2025 members. The
women meet weekly and pool their savings, which can be different amounts, based on their
incomes. Once this money has formed a large enough pool, the women lend it to each other
to expand or start businesses, or to meet other needs. The loans are repaid with interest,
and at the end of the year the fund is divided, and each woman gets her savings back with
the accumulated interest.
After saving for one year, members of Benkadi, an SfC group in Bougara, Mali, took an
85,000 CFA (West African Franc) collective loan from their fund to construct a work station
for a grinding mill. Group members collectively reimburse their fund on a monthly basis from
profits received through the use of the mill.
Recently, the group has taken out another loan to purchase an electrical generator, five
ploughs, and a motor pump. Benkadi plans to pay back the loan by renting out the ploughs
during the rainy season. Members are in the process of constructing an electricity station for
their generator, which they plan to make available for a small fee to everyone in the
village. Once they have repaid these two loans, the group plans to purchase two bulls to rent
out with the ploughs. This is an example of how a womens savings group can develop
collective enterprises that improve the livelihoods of its members and also benefit the larger
community.

Innovative partnerships and business models that empower smallholders

Inmanyruralareas,smallholdersareunabletoaccesscriticalfinancialservicesbecause
financialmarketsdonotexist.AninnovativecollaborationbetweenOxfam,theglobalre
insurancecompanySwissRe,thegovernmentofEthiopia,theRockefellerFoundation,the
WorldFoodProgramme,andothershasdevelopedanewbusinessmodelandprogrammeto
meettheneedsofruralfarmers,describedinCaseStudy3.

MakingMarketsEmpowerthePoor,OxfamDiscussionPaper,November2011 15
Case Study 3: Risk management and weather insurance for rural farmers
in Tigray, Ethiopia47
Oxfams Rural Resilience Initiative (R4 for short), first piloted in Tigray, Ethiopia in 2009 and
now expanding globally, includes four key components: reduction of the risks that
accompany climate change (i.e. the increased frequency and intensity of droughts or floods)
by improving the management of local resources; weather insurance designed to cover a
variety of crops, guaranteeing farmers a pay-out if bad weather ruins their harvests; better
access to credit, which allows farmers to make smart investments in items such as seeds
and fertilisers; and savings that can serve as a buffer against hard times. During the 2011
agricultural season, the programme expanded to 43 villages, reaching more than 13,000
households in Ethiopia, up from 1,300 households in 2010.
R4 is linked to Ethiopias Productive Safely Net Programme, a food security programme that
covers 8 million chronically food-insecure households. This enables marginalised farmers to
pay their insurance premiums with labour by working on community projects. The insurance
is offered by local insurance companies, leading to the development of a local agricultural
insurance market.
R4 ensures that women and female-headed households are involved in programme design
so that programmes meet their needs. It also incorporates key considerations of
environmental sustainability, making it an example of how a market-based programme can
address power, gender equity, and eco-sustainability.

InnovationsinbusinessmodelsandprogrammingsuchasR4areneededtocombatthe
manifoldchallengesfacingruralproducers,includingclimatechange,volatilemarkets,and
theabsenceoffinancialservicesthatmeettheirneeds.R4isahybridapproachwhichchanges
amarketsystembutwhichalsoincludesacriticalsocialsafetynetcomponenttoensurethat
themostmarginalisedarenotexcluded.

Making new business models work for women

Thereneedstobeanactiveefforttoprovidewomenwithdecisionmakingrolesinnew
enterprises.ThesamebarriersthatwomenfaceingainingavoiceinPOsexistin
producerownedenterprises.Infact,thesebarrierscanbeworseinsuchenterprises,as
theyarehigherupthevaluechain,wherewomentendtohaveanevensmallerpresence.
However,theestablishmentofsuchenterprisescanbeanopportunitytobreakdown
existingpowerdynamicsandshakeupthemarketsystem.Anexampleofthekindof
opportunitythattheseenterprisescanpresentforwomenisdescribedinCaseStudy4,
aboutaspecialistintermediaryinEthiopia.

Case Study 4: Promoting womens role in processing and trading in the

Assosa enterprise in Ethiopia48
In Ethiopia, Oxfams Enterprise Development Programme is supporting Assosa, an oil-
producing enterprise that is starting to process its own seeds and capture higher returns. The
programme is financing the purchase of a processing machine, providing working capital,
and contributing to specific salaries.
Assosa operates in a context of high gender inequality, which is deeply rooted in local culture
and social norms. Oxfam is supporting women in gaining a greater role in processing,
trading, and distribution. This includes support for womens leadership in the distribution of
sesame oil, which was agreed as an additional activity to promote womens economic
empowerment. It also promotes more equal gender relations through workshops,
communication, and campaigns, while facilitating access to services such as finance,
research, and agricultural extension for women. Since 2009, womens membership in the
POs that comprise Assosa has risen from 2 per cent to 21 per cent.

MakingMarketsEmpowerthePoor,OxfamDiscussionPaper,November2011 16
Principles of new business models
WorkingwithSustainableFoodLab,Oxfamhasidentifiedfiveprinciplesfordevelopingnew
businessmodels,describedintheBriefingforBusinesspaperThinkBig,GoSmall.49Thesefive
principlesunderpinsustainabletradingrelationshipswithsmallholdersandshouldbe
turnedintoagreedcomponentsofanyformalorinformalcontract:
Valuechainwidecollaborationandinnovationtoaddressissuesrelatedtodoing
businesswithsmallholders;
Marketlinkagesthroughspecialisedintermediaries;
Fairandtransparentgovernancethroughthesupplychain(includingclarityfrom
theoutsetontermsoftrade,qualitystandardsandpricingstructure);
Equitablesharingofcostsandrisks(e.g.microinsurance,supplychainrisk
managementfunds,andsharedinvestmentstoimprovethefunctioningofthe
chain);and
Equitableaccesstoservices(includingtechnicalexpertise,businesstraining,
agriculturalinputsandappropriatefinancing).
AnexampleofapartnershipthatpromotessomeoftheseprinciplesisthatbetweenOxfam,
theglobalreinsurancecompanySwissRe,theRockefellerFoundation,theWorldFood
Programme,andothers.ThispartnershiphasresultedinsmallholdersinEthiopiagaining
accesstoinsurancethatprotectstheirlivelihoodsintheeventofdroughtorflooding.50
Similarly,inIndia,OxfamfacilitatedapartnershipbetweenalocalNGOandaninsurance
companytoextendmicroinsurancetosmallholderfarmers.Suchinnovativebusinessmodels
areneededtocombatthechallengesfacingruralproducersresultingfromclimatechange,
volatilemarkets,andtheabsenceoffinancialservicesthatmeettheirneeds.

iii)Precommercialinvestment:transferringassetsandbuilding
capacity
Marginalisedgroupsoftenlacktheassetstoparticipatemeaningfullyinmarkets.Theseassets
canincludelandtitles,cashtobuyinputs,knowledgeofhowtogrowanewcrop,basic
irrigationequipment,orsimpletools.AstheexampleinFigure2shows,nearlyhalfofthose
workinginmaizeineastandsouthernAfricatradedintolocalmarkets,butwereunableto
sellintomodernmarkets.Precommercialinvestments,whetherintheformofcash,inputs,
ormachinery,maybeneededtoassistthesepeople.Astrictlyfacilitativeapproachmayhelp
onlythosewhoaremarketready,butOxfambelievesthatthisisnotsufficient.While
opportunitiescanbecreatedthroughenterprisedevelopment(suchasthenewbeehive
enterprisedescribedabove),thiswouldnotreachmostofthe4050percentofpeopleshown
inFigure2whoareconsideredsubsistencefarmers.Itcanalsopotentiallymissthe2030per
centwhoonlyoccasionallyconnecttomarkets.

MakingMarketsEmpowerthePoor,OxfamDiscussionPaper,November2011 17


Figure 2: Can market-based livelihoods programmes go deeper and help

the more marginalised and vulnerable?51

Trends and Transformation in East and

Southern African Staple Markets,
Michigan State University

Forexample,peopledisplacedbyconflictmayrequiredirectassistancetobeableto
participateinmarkets.InnorthSriLanka,anOxfamprogrammehelpedcommunitiesto
acquiretheassetsandskillsneededtoengageinthedairyvaluechain.Throughthepilot
project,peoplereturninghomeaftertheconflictweregivenacow,undertheconditionthat
thecowsfirstcalfwouldgobackintoarevolvingfundandwouldthenbeprovidedtoother
communitymembersunderthesamecondition.Theprogrammealsoprovidedand
facilitatedcapacitybuildingforvillagecooperativestoimprovebreedingpractices,fodder
production,marketing,andgenerallivestockmanagement.
Whilemanyproponentsofmarketbasedapproachescriticiseassettransferprogrammesas
unsustainableduetotheircost,asthiscasedemonstrates,aninitialgrantofthefirstcowswas
critical.Thedesignoftheprogrammewassustainable,becauseitallowedpeopletoaccess
loanstobuyadditionalcowsandliftthemselvesoutoftheassetlessandpowerlesssituation
thatresultedfromconflict.Sofar,thishasresultedinanadditional1,700farmersparticipating
inalocalproducerowneddairyenterprise.52Aseparateexampleofassetprovision,one
specificallytargetingwomen,ishighlightedinCaseStudy5.

Case Study 5: Providing water tanks to women in Chawa, Rajasthan,

India53
In Chawa, an arid village in Rajasthan, women from lower castes had to walk for two hours
each day to collect water from a pond 5km away, because the only closer source, a well,
was reserved for upper caste families.
The programme supported by Oxfam gave lower-caste women prominent roles in procuring
the materials to construct and repair rainwater harvesting tanks. The tanks, which were the
first asset that many of the women had owned, provided them convenient access to water for
their households and livestock, as well as agricultural use. It also saved them hours each
day.
As women travelled to procure supplies and supervised the construction of the tanks, they
gained mobility and status within their households and community. Women were also trained
in masonry and agricultural techniques, giving them access to work that is normally done by
men, and which has the potential to earn them cash incomes.

MakingMarketsEmpowerthePoor,OxfamDiscussionPaper,November2011 18
As this asset transfer programme demonstrates, the donation of materials and training to
construct an asset can vastly improve peoples lives and contribute to their productivity and
livelihood opportunities. Also, it can empower marginalised groups facing caste and gender
barriers, and expand the opportunities for mobility and decision-making within households
and communities by promoting different gender behaviour and freeing womens time.

Anothercommonchallengewithassettransferprogrammesisdifficultyinensuringthat
assetswillbeusedtogeneraterevenue.Acommonquestionis,Ifwegiveafamilyadairy
cow,howdoweknowtheywontslaughterandeatit?Oxfamrecognisesthisdilemma,and
seekstofacilitateassettransfersfromwithinexistingmarketsystems,wherepossible.
However,thishasprovedchallenging,aspeoplewholackassetsdonotpresentanenticing
businessopportunityforprivatesectoractors.Whereafacilitativeapproachcannotprovide
theseassets,Oxfamandotherorganisationscontinuetoprovideassetstohelpthosewhoare
unabletoproducesurplusesfortradeormeetthedemandsofthetargetmarket.However,
theprovisionofsuchassetsisaccompaniedbyanexitstrategy,soasnottocreatea
relationshipofdependence.

Asset transfers to women

Womenindevelopingcountriesareoftenmarginalisedandassetpoor.Thecasefor
empoweringthemthroughassettransfersiscompelling,asexistingsocialstructuresdonot
allowthemtoacquiretheassetsnecessarytobecomeempoweredthroughmarkets.
Providingwomenwithphysicalassetsandaccesstocommunityassetsiscritical;thiscould
beintheformoftheirfirstcow,accesstolandorwater,orprocessingmachinery.Asset
transferscanalsofreeuptheirtime,sothattheycanparticipatemoreformallyinfarmor
enterprisedevelopment.Intangibleassets,suchaseducationandskills,arealsocritical.As
womeninmarginalisedcommunitiesarefrequentlydeniedaccesstoeducationandskills
training,programmesneedtofocusonprovidingthis.Finally,alackofsocialcapitalor
influenceoverotherscannecessitateconfidencebuildingtohelpwomentospeakoutand
voicetheirconcernsthrough,forexample,theestablishmentofwomenonlyorganisations.

iv) Giving producers a voice in governance and investment:

changing the rules of the game
Thereisanimportantroleforgovernmentsinchallengingthestatusquoofmarketspower
dynamics.Publicinvestmentcanbuildthecapacityofrelativelypowerlessfarmers,increase
theirmarketprofile,ortransferassetstothem.Governmentscanalsobuildroadsand
businessinfrastructurethatprovidemoremarketoptionsforproducers.Lastly,the
governmenthasacriticalroleinregulatingmarketsandmaintainingafairlegalsystem.This
canincludeensuringthatmarketpowerisnotabusedbypowerfulcompanies,labourrights
arerespected,contractsarehonoured,andproductsafetyrequirementsaremet.
Thereisaneedforplatformsforproducerstopromotetheirinterestsandinfluencepolicies
withlocal,regional,national,andeveninternationalpublicbodies.Throughtheseplatforms,
smallholderorganisationscaninfluencegovernmentdecisionmakingaroundpoliciesand
practicesthatcaneitherenableorinhibittheactivitiesoftheirmembers.POscanalso
mobiliseproducerstodosomethingaboutotherproblemsthataffectthewidercommunity,
suchastheprovisionofessentialgovernmentservices.
TherearetworeasonswhyOxfammightactivelysupportsmallholderstoinfluencetheir
enablingenvironment.Firstly,effectivelobbyingandadvocacyworkrequiressignificant
skillsandresources.Secondly,theplatformsthatbringpolicymakersandsmallholders
togetheroftendonotexist.ItisoftennecessaryfordonorsandNGOstoprovidetrainingto
smallholderrepresentativesandtosupporttheestablishmentofappropriateplatforms.

MakingMarketsEmpowerthePoor,OxfamDiscussionPaper,November2011 19
AnexamplecomesfromBogot,Colombia,whereOxfamfacilitatedmeetingsbetween
representativesoflocalPOsandthecitysgovernment.Oxfamalsoconductedresearchthat
supportedtheadvocacyeffortsofthePOsandaddeditsvoicetothedebate.Theresultwasthat
Bogotsmayorandgovernmentagreedtoincorporatetheprincipleofafairpriceintothe
citysfoodsupplyplan.Themayoralsoagreedtoincreaseinvestmenttoboostproductionin
neighbouringruralmunicipalities,togetherwithinvestinginlinkingsmallholderstomarkets,
inparticularthroughinfrastructuresuchasstallsforfarmersmarketsinthecity.54Another
exampleofcollectiveactionresultinginchangesingovernmentpolicyisprovidedinCase
Study6.

Case Study 6: Fishing communities in India assert their traditional rights

over livelihoods resources55
Villagers in the Tikamgarh and Chattarpur districts of Madhya Pradesh traditionally had the
right to fish the regions ponds, but had lost control of these valuable resources to landlords
and contractors. Despite encountering violent opposition, the fishers began organising to
reclaim control of the ponds. With Oxfams support, they established village co-operatives
and formed a federation that gave a strong voice to the regions fishing communities. By
2008, fisher co-operatives controlled 151 ponds, with nine run by womens groups. In 2008,
their campaign persuaded the state government to revise its fisheries policy. This resulted in
a new law that protects the rights of traditional fishing communities, and contains provisions
that should help to improve livelihoods in the drought-hit region.

Womens voices in changing the rules of the game

Asdiscussedabove,supportingwomentohaveagreatervoiceindecisionmakingwithin
POsisextremelychallenging.Thesamebarriersthatinhibitwomenfromhavingasayinthe
daytodayoperationsofPOsalsoapplytotheadvocacyroleofPOsandotherinstitutions
representingsmallholders.Theplatformsthatbringmultipleactorstogetherpresentsimilar
problemsforwomen.Wheretheyaretraditionallydisempoweredandnotallowedto
performdecisionmakingroles,theyareoftenunabletovoicetheirviewsorrepresentthe
concernsoftheircommunities.
Itisimportantthattheuniquebarriersthatwomenfaceareaddressedbyadvocacyefforts.
Theseincludealackofaccessto,andrightsover,land.Theyalsoincludesafetyissueson
availabletransportandalackoflightingandwomenstoiletsinpublicmarkets.Womenalso
traditionallyhavelessaccesstopublicservices,suchaseducation(asevidencedbylower
literacyratesthroughoutthedevelopingworld)andagriculturalextensionservices.Allthis
requiresconcertedlobbyingandadvocacybygroupsthatrepresentsmallholdersindealings
withgovernmentofficials.
Programmesneedtofocusongivingwomenavoicesothattheycangetpublicinstitutionsto
startaddressingtheirconcerns.Thiscanstartwiththepromotionofwomenonlygroups,
whichallowwomentodeveloptheirleadershipskillssothattheycanparticipatemore
effectivelyinmixedgendergroups.

MakingMarketsEmpowerthePoor,OxfamDiscussionPaper,November2011 20
4. The need for complementary interventions
outside the market system
Themarketsystemdoesnotaffectthelivesofmarginalisedpeopleinisolation
householdandenvironmentalsystemsalsoshapetheirlivesandinteractwithmarket
systems.Inordertoachievegreaterimpact,marketbasedprogrammesmaybe
complementedbyinterventionsintheseothersystems.
Householdsystems56
Householdsarecomplexsystemsthatareinfluencedbyseveralfactors:assets,income
andsubsistenceactivities,intergenerationalandculturalfactors,andgendernorms,
amongothers.Problemsinahouseholdsystemnotonlyaffectitsmembers,butalsotheir
abilitytoreachtheirmaximumpotentialwithinthemarketsystem.Forexample,social
problems,suchasgenderbasedviolence(GBV),whicharecriticaldevelopmentissuesin
theirownright,mayalsoreducetheabilityofthoseaffectedtoengageproductivelyin
thelabourmarket.57WhileGBVoftentakesplacewithinahouseholdsystem,italsohasa
significantbearingonthemarketsystem.Forexample,inElSalvador,Oxfamworkswith
activists,partnerorganisations,mediaorganisations,andpolicymakerstoeducate
peopleabouttheproblemofGBVandtochangethewaysthatlawmakersandthejustice
systemasawholehandlegenderbasedcrimes.58Suchprogrammesmayleadtogreater
productivityinmarketsystems,eventhoughthisisnottheirprimarygoal.
Householdsystemsmayalsobenefitfromassettransferprogrammes.Interventionsatthe
householdlevelcanbenefithouseholdmemberswhetherthereisamarketimpactornot.
Theyarealsolikelytohavepositiveknockoneffectsonmarketsystems.Forexample,
programmesthatprovidefuelefficientstovescanreduceillnessesrelatedtoindoorair
pollutionandthetimespentgatheringfuel,leavinghouseholdmembershealthierandwith
moretimetoengageinincomegeneratingactivities.
InNepal,alongsideeffortstocreatePOs,Oxfamhassupportedthecreationof
ParticipatoryLearningCentres(PLCs)forwomen.Thesearespacesforcollectiveanalysis
andsolidaritythatoftenleadtohighermotivation,socialmobilisation,andthe
developmentofwomensleadership.Thedevelopmentofleadershipskillsamong
womencanhaveanimpactontheirparticipationanddecisionmakingwithin
households,andmaytranslateintopowerwithinmarketsystems.59
Environmentalsystems

Environmentalsystemsarecriticaltopeopleswellbeing,andprogrammesaddressing
naturalresourcemanagementandotherenvironmentalissuescanbeimportantin
helpingcommunitiesmeettheirlivelihoodandhealthneeds.Forexample,inEthiopia,
Oxfamworkswithlocalcommunitiestoimproveaccesstowaterforirrigation,livestock
watering,anddrinkingindroughtpronestates,suchasTigray,AmharaandOromiya.60

Thehealthandsustainabilityofenvironmentalsystemsisalsoimportantbecausemany
marketbasedlivelihoodsdependonnaturalresources.Thoselivelihoodswillonlybe
sustainableifmarketactivitydoesnoterodesuchnaturalresources.
Itisimportanttoinvestigatethepossibleimpactsofclimatechangeonenvironmental
systemsbeforemarketbasedagriculturalprogrammesareimplemented.InLatin
America,OxfamisworkingwiththeSustainableFoodLabandtheInternationalCenter
forTropicalAgriculture(CIAT)todeterminewhichcropswillbesuitableintheregion

MakingMarketsEmpowerthePoor,OxfamDiscussionPaper,November2011 21
underdifferentclimatechangescenarios.Oxfamanditspartnersthensharetheir
findingswiththeproducersinvolvedintheirmarketbasedlivelihoodsprogrammesso
thattheycanmakeinformeddecisionsaboutthecropsinwhichtheywanttoinvest.This
isagoodexampleofhowamarketbasedprogrammecanintegrateanappreciationof
ecosystemstocreateasustainablesolutionforbothlivelihoodneedsandclimate
change.61
Marketsystemsbenefitfromnonmarketbasedinterventions
Interventionsthatarenotmarketbasedmayimprovethefunctioningofmarketsystems
formarginalisedgroups.Forexample,manywomenincoffeeproductioninEthiopiaare
unabletobecomebusinessorfarmmanagersbecauseoflimitedliteracyandnumeracy.
Witharegionalagriculturalministry,Oxfamdevelopedanagronomictrainingmodule,
whichalsofocusedondevelopingliteracyandnumeracyamongwomen.Aftertwo
hoursaweekoftrainingoverasevenmonthperiod,thewomenhaddevelopedbasic
literacyandnumeracy,andthetrainingcontributedtothedoublingand,insomecases,
triplingoffarmincome.62
Interventionsintheareaoflabourrightsarealsocriticaltoreachingmanymarginalised
workers.Workersonsmallholderfarmsareoftenthepoorestandmostmarginalisedpeople
inruralcommunities.Marketbasedprogrammescanincorporatemechanismsthatpromote
goodlabourpractices,andpartnerwithprogrammesthatspecificallyaimtoimprove
workingconditionsonfarmsandotherworkplaces,suchasfactories.
Marketbasedprogrammesmustworkwith,andbecomplementedby,programmesthat
addresshouseholdandenvironmentalsystems,inordertobesociallyecologically
sustainable,respectively.Longtermdevelopmentwillbestrongandsustainableonlywhen
allthreesystemsarefunctioningwell.

MakingMarketsEmpowerthePoor,OxfamDiscussionPaper,November2011 22
5. Challenges and recommendations
Whilemarketbasedapproachescannotaddressallpovertyrelatedissues,theycanplaya
criticalroleinrebalancingpower.Thiscanresultinwomenandmarginalisedsmallholders
accumulatinggreaterpower.Inordertodoso,theyneedtoevolveandbecomemore
effectiveatseekingoutinterventionopportunitiesthatshakeupexistingpowerdynamics.
Thiswillrequirebothinnovationandflexibilityinhowprogrammesaredesignedand
implemented,sothattheycanaddressthreekeychallenges:
Empoweringwomenthroughmoreeffective,sustainable,andcatalyticinterventions;
Connectingsmallholderswithmorelucrativemarkets(frequentlymoredomestic
thaninternational)withoutcreatingdependentbusinessrelationships;and
Promotingsustainableagriculturewhileconnectingsmallholderstomorelucrative
markets.

Recommendations
1. Go beyond the market system
Marketsystemstouchthelivesofallpoorwomenandmen,butthesearenottheonly
systemswithwhichtheyinteract.Manypovertyissuescannotbeaddressedthrough
interventionsinthemarketsystemalone.Marketbasedinterventionsshouldalsoconsider
howtheyinterrelatewithothersystems.Importantly,thepossibilityofcomplementary
interventionsthatarenotmarketbasedinthehouseholdandenvironmentalsystemsshould
beconsidered.
2. Build on catalytic events
Majorshiftsincompetitiondynamics,technology,environment,migration,market
regulation,governmentpolicy,andsocialdynamicsareexamplesofopportunitiesto
interveneandrebalancepower.Wherethereisamajordisruption,lookforanopportunityto
supportmarginalisedproducerstoacquiremorepowerinthemarketsystem.
3. Intervene directly to disrupt the market, when simply facilitating a solution is
not an option
Insistingonafacilitativeapproachmaymeanthatonlymarketreadyactorsaresupported.
Thisisbecausemanyexistingactorsinthemarketsystemdonothavetheincentiveto
connectwithmarginalisedproducers.Equally,programmesshouldnotplayapermanent
roleinlinkingsmallholderstomarketsorprovidingthemwithaservice,asthisisnot
sustainable.Opportunitiesshouldbesoughtfortemporarymarketinterventionsthatwill
disruptthemarketandallowmarginalisedgroups(especiallywomen)toaccumulateenough
powertoparticipatemoreequitablyinmarkets.
4. Use intervention points that rebalance power
Marketsarebiased,andcanfavourmenoverwomen,andlargerbusinessesover
smallholders.OpportunitiestosupportandestablishPOsandspecialisedsmallholder
focusedenterprisesthatallowmarginalisedproducersandwomentoconnecttomore
lucrativemarketsshouldbesought.So,too,shouldopportunitiesformarginalised
smallholders(particularlywomen)tovoicetheirneedsforfavourablegovernanceand
investment(e.g.bysupportingplatformsthatconnectthemwithpublicofficials).Lastly,
thosewhohavetoofewassets(particularlywomen)shouldbesupportedtoparticipate
effectivelyinmarketswiththeassetstheyneed.Thisisnotaconclusivelist,soinnovateand
lookforotheropportunitiestorebalancepower.

MakingMarketsEmpowerthePoor,OxfamDiscussionPaper,November2011 23
Notes

1R.D. Chambers, D. Narayan, M.K. Shah, and P. Petesch (2000) Voices of the Poor:
Crying Out for Change, Oxford: Oxford University Press for World Bank.
2 J. Kinsella and E. Brehony (2009) Are current aid strategies marginalising
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Melamed, R. Hartwig, and U. Gran (2011) Jobs, Growth and Poverty: What do we
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5 IFAD (2011) IFAD Rural Poverty Report 2011,
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6 IFAD (2011) The Future of World Food and Nutrition Security, http://www.ifad.org/hfs/
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7 S.
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Guatemala, Colombia, Haiti, and Russia, unpublished document
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development, http://siteresources.worldbank.org/INTWDR2012/Resources/7778105-
1299699968583/7786210-1315936222006/Complete-Report.pdf (last accessed 27
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9 D.Green (2008) From Poverty to Power: How active citizens and effective states can
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17 Diagram provided by Sustainable Food Lab (www.sustainablefoodlab.org)

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18UN Food and Agriculture Organization (2011) The State of Food and Agriculture 2010
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linked to malnutrition and hunger: countries where women lack any right to own land or
lack any access to credit have on average 60% and 85% more malnourished children,
respectively. See OECD (2010) Gender Inequality and the MDGs: What are the Missing
Dimensions?, http://www.oecd.org/dataoecd/11/56/45987065.pdf (last accessed 1
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20 UN Food and Agriculture Organization (2011), op. cit.
21 Correspondence with Oxfam staff
22 Unpublished internal documentation
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work/food-livelihoods/womens-economic-leadership (last accessed 1 November 2011)
24 http://growsellthrive.org/page/dairy-colombia (last accessed 1 November 2011)
25Enterprise Development Programme (2011) Annual Review, Oxford: Oxfam GB,
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26 Programme Insights (2011) Effective Cooperation: A new role for cotton producer co-
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role-for-cotton-producer-co-ops-in-mali-133381 (last accessed 1 November 2011)
27 Ibid.
28 R.D. Chambers et al (2000), op. cit.
29 C.Penrose-Buckley (2007) Producer Organisations: A Guide to Developing Collective
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http://www.oxfam.org.uk/resources/downloads/produorgs_book.pdf (last accessed 1
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30 Correspondence with Oxfam staff
31 C. Penrose-Buckley (2007), op. cit.
32L. Pandolfelli, R. Meinzen-Dick, and S. Dohrn (2007) Gender and Collective Action: A
Conceptual Framework for Analysis, CAPRi Working Paper No. 64, pp.6-41, Washington
DC: International Food Policy Research Institute,
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33P. Develtere, I. Pollett, and F. Wanyama (eds) (2008) Cooperating Out of Poverty
The Renaissance of the African Co-operative Movement, Geneva: International Labour
Office (ILO), http://www.ica.coop/outofpoverty/regions.html (last accessed 1 November
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34DFID (2004) The Use of Civil Society Organisations to Raise the Voice of the Poor in
Agricultural Policy, Working Paper, September 2004, London: Department for
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35 C.D. Deere and M. Leon (2001) Institutional reform of agriculture under neo-liberalism:

The impact of womens and indigenous movements, Latin American Research Review,
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37 Institut de Recherches et dApplication des Mthodes de Dveloppement (2002)
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38Oxfam is currently implementing the Researching Women's Collective Action project,
which is ongoing until September 2012, to gather evidence on effective ways of
organising for women smallholders to enhance their incomes, asset ownership and
empowerment. The project also identifies and promotes innovations and effective
strategies of support to women's collective action. For more details, see:
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opportunities-for-beekeepers-133380 (last accessed 1 November 2011)
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Ram and M. Lundy (2010) Smallholder Farmer Organizations: Developments and
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45 S. Anand and G. Sisay (2011) op. cit.
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47Oxfam America (2011) Insurance and rural resilience,
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incorporate smallholders into supply chains, Briefings for Business, Oxford: Oxfam,
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50 Oxfam America (2011) op. cit.
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case study report

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supply-chains-in-guatemala-bogota-and-jamaica/ (last accessed 1 November 2011)
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MakingMarketsEmpowerthePoor,OxfamDiscussionPaper,November2011 27
 Oxfam GB November 2011
Oxfam GB is a member of Oxfam International. Registered charity no. 202918.
This paper was written by Erinch Sahan and Julia Fischer-Mackey with contributions from David
Bright. Oxfam GB also acknowledges the assistance of Chris Jochnick, Sally King, Chika
Charles, Sally Baden, Duncan Green, Joel Rodriguez, Jodie Thorpe, Mara Bolis, Roberto
Berbieri, Frank Michielsen, Monique Mickhail, Caroline Green, Don Seville, Stephanie Daniels,
Hugo Sintes, Colin McQuistan, Vanita Suneja, and Tom Fuller in its production.
The text may be used free of charge for the purposes of advocacy, campaigning, education, and
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such use be registered with them for impact assessment purposes. For copying in any other
circumstances, or for re-use in other publications, or for translation or adaptation, permission
must be secured and a fee may be charged. E-mail publish@oxfam.org.uk
For further information on the issues raised in this paper please e-mail
enquiries@oxfam.org.uk or go to www.oxfam.org.uk.
The information in this publication is correct at the time of going to press.
Published by Oxfam GB under ISBN 978-1-78077-015-4 in November 2011. Oxfam GB, Oxfam
House, John Smith Drive, Cowley, Oxford, OX4 2JY, UK.
Oxfam is a registered charity in England and Wales (no 202918) and Scotland (SC039042).
Oxfam GB is a member of Oxfam International.
www.oxfam.org.uk

MakingMarketsEmpowerthePoor,OxfamDiscussionPaper,November2011 28