Effectiveness of Market System Development (MSD) approach in improving livelihood of women and youth. The case of Livelihood Improvement for Women and Youth programme in Addis Ababa.

Abstract

Many development actors and donors are shifting their project/program implementation approach from conventional type to market system development approach (MSD). MSD differs from much conventional development cooperation and aid in its emphasis on identifying the underlying causes of market system dysfunction. Market systems approach is a valid one for promoting economic development, improved access to services and poverty reduction. Different MSD programs have been implemented in Ethiopia with especial focus on rural context. Nevertheless, no studies have been conducted to investigate its and effectiveness in urban context. Therefore, this study aims to examine the and effectiveness of MSD approach in employment creation and income increment of women and youth in Addis Ababa. Besides, systemic and behaviours changes of partners, roles of partners, challenges and lessons from MSD programme implementation were examined. Qualitative descriptive study and case study research strategy were used. Five target groups, 5 consortium partners staff and 4 implementing partners were selected using purposive sampling. Data were collected through key informant interview, focus group discussion, nonparticipatory observation and secondary sources review. The study has used thematic data analysis. The findings of the study clearly revealed that MSD approach is feasible and effective in creating employment and increasing income opportunities of women and youth target groups in Addis Ababa. However, the impact of conventional ways of project implementations and lack of awareness and skills on MSD, affected MSD project/programme implementations. In most of the interventions, there are a couple of signs for sustainability and this have been ensured through the effective partnership with different local market actors. Even though there are challenges to this newly practiced approach; the research concludes that with a maximum effort in awareness creation, capacity building of actors and practice of adaptive management; MSD approach could bring changes in system, create employment and income opportunities for target groups (poor women and youth). Finally, hence the goal of MSD is benefiting the poor; it is aligned with current Ethiopian government priority of unemployment reduction. For that reason, the researcher recommended that donors, development practitioners and implementing partners to shift their traditional ways of project implementations to MSD approach.