Stage 1: Define
The goal of any M4P programme is not simply to reduce poverty, but to do so over the long-term. The strategy behind a M4P programme is, therefore, a core statement of how it will achieve this.
Forming this strategy requires definition of a clear set of objectives that, together, change market systems in a way that leads to sustained poverty reduction. The strategy must describe and justify (rationale) how those objectives will deliver poverty reduction. The strategy (or strategic framework) provides a guide for subsequent programme implementation, and a framework for measuring and evaluating progress towards, and impact on, poverty reduction.
Defining your strategy (or strategic framework) for the programme can be achieved through a series of steps that will help clarify and describe the logic that lies behind the programme. In particular, a M4P programme strategy describes its objectives for poverty reduction, growth and access, and system change. These are elaborated through four primary steps:
Step 1: Define poverty reduction objectives
M4P programmes commonly have poverty reduction objectives, and these need to be specified according to the context in which they will work. That is, the target group need to be clearly identified (e.g. small-scale vegetable producers, landless labourers) and the objective for improving their situation specified (e.g. incomes increased, unemployment levels reduced)
Step 2: Define growth and access objectives
The next step entails specifying how the poor’s position can be improved in terms of their access to opportunities and/or capacity to respond to those opportunities (e.g. how can small-scale farmer access to inputs or markets be enhanced; how might workers capacity to gain employment be improved).
Step 3: Define systemic change objectives
The third step identifies those dimensions of the market system that need to change in order to deliver the stated poverty, growth and access benefits. It is unlikely you can define these changes in detail yet, but outlining the nature of envisaged change (e.g. improved service delivery, better incentives, strengthen capacity or practices) gives definition to what the programme hopes to achieve.
Step 4: Define focus of intervention strategy and approach
The all-important responsiveness of M4P programming will be constrained by premature and/or detailed definition of activities and outputs. Instead, it is important to define the broad intervention strategy and overall approach (e.g. building employee skills levels, enhancing information supply) which will then serve as a guide for intervention activities without restricting their evolution.
A more detailed guide to defining programme strategy can be found in section 3A (pp. 9-17) of The Operational Guide for the Making Markets Work for the Poor (M4P) Approach.