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The Market Facilitation Initiative (MaFI)

                               The Complexity Dialogues:
           embracing complexity to boost the impact, efficiency and sustainability
                             of inclusive market facilitation

                        Project document, short version (Mar 2012)


1. The core idea: Let’s bring together the communities of practice of complexity science and
VCD/M4P/inclusive markets to learn from one another and test methods & tools in the field.

2. What for? To boost the impact, efficiency and sustainability of inclusive market systems
facilitation and to influence donors and policy-makers to embrace complexity as part of
their frameworks, rules, procedures and investments (synergic with The MaFI-festo
Dialogues http://slidesha.re/mafifesto2).

3. The core problem: In the field of inclusive market development (especially when using
facilitation) there is a lot of talking about the importance of complex systems. It is generally
accepted that markets are complex systems and that we need to plan, implement and
measure our interventions using the “lenses” of complexity and systems.

It is not unusual to hear that complex systems are “composed of many actors who interact
in many ways and that there are feedback loops that produce weird behavior”. However,
knowing how complex systems work is much more (and much more challenging) than
knowing how they look like. Intuitions and experience are important but not enough.
Effective facilitators of inclusive market development need to gain a better understanding of
the science of complexity;be able to identify the concepts, frameworks and tools that work
and do not work for them; and even create new techniques and tools. But this has to be
done in collaboration with complexity experts. Furthermore, it is critical to build the
evidence to demonstrate to practitioners, donors and policy-makers that the “lenses” of
complexity and systems boost our impact, outreach and cost- and time-efficiency.

4. Proposed solution: To create a systematic and well-documented process of interaction,
action-research and learning between the communities of practice of complexity science
and VCD/M4P/IMD with a strong focus on practical applications on the ground and on the
production of evidence of the effects of complexity on real programs.

After the complexity workshop during the SEEP Annual Conference in 2011, it was possible
to tell that there is a strong demand from economic development practitioners to know
more about concrete tools to apply complexity in their work. It was also clear that experts in
the complexity field and some cutting-edge donors like USAID are interested in promoting a
more systematic learning process that involves economic development practitioners and
policy-makers.
                                                                                                   1
                                                                                                   Page
5. Proposed strategy:

Phase 1: Building mutual knowledge and trust: Anecdotal evidence seems to suggest that
most VCD/M4P/IMD practitioners do not know what complexity science has to offer to their
practice. Conversely, most complexity experts (many of whom come from biology, physics,
mathematics, transport/crowd management, neurology, etc.) do not know what inclusive
market development practitioners do or want to achieve. A first series of “dialogues”
(meetings, seminars, workshops, webinars, e-consultations, etc.) will be required for the
two CoPs to know what they need and what they can offer to one another, and for them to
come up with a learning agenda.

In this first phase,the following groups will be identified:
         complexity experts in different parts of the world who are keen to contribute and
         participate
         MaFI members who want to lead, mobilize and facilitate the learning process in
         different countries
         Potential funders of the interactions, pilots and knowledge products(with special
         emphasis on development agencies who fund market development programs)

Phase 2: Defining and implementing the learning agenda:

In the second phase, the participants will convert the learning agenda that came out of
phase 1 into an action plan. Concrete activities (e.g. seminars, webinars and workshops),
tools and products (e.g. guidelines and even training courses) around concrete issues will be
identified and explored. MaFIand the partners will play a crucial role in capturing and
disseminating the knowledge produced by this initiative.

MaFI members who are keen and in a position to pilot new approaches, techniques or tools
grounded on complexity science and to produce evidenceof impact will also be identified.
(Some pilots may start during Phase 2).

Phase 3: Piloting approaches, techniques or tools in the field:

This phase is dedicated to the application of concepts, approaches, techniques or tools from
the complexity field in VCD/M4P/IMD programs. The members who will implement pilots
will have the support of research institutions and other experts to design and implement
them in the most robust ways possible.

The end of phase 3 will also include activities related to the systematization of lessons and
evidence of impact.

6. Potential Partnerships:

This initiative requires a good balance between practitioners and academics. The following
is a proposed line-up of key partners:
                                                                                                2
                                                                                                Page
The Santa Fe Institute as the academic institution connecting the initiative to a core
       group of complexity experts. These experts will help us to connect with other peers
       in other countries and to design the learning agenda and the field pilots.
       USAID as a cutting-edge donor who is already working in the issue of complexity and
       development. USAID will provide advice about how to design and implement this
       initiative in ways that can influence the wider donor community to incorporate
       complexity and systems thinking in their rules and procedures (synergic with the
       MaFI-festo Dialogues).
       SEEP/MaFI as the practitioners’ network that makes sure that the initiative is
       relevant for the market development practitioners worldwide. MaFI will also
       coordinate the members who will be involved in the field pilots.

Other organizationsthat can be considered are the Institute of Development Studies (IDS)
and the Economic and Social Research Council (ESRC) from the UK. The former could bring
academic expertise in development issues and social research related to the field pilots. The
latter can be an appropriate funder of this initiative given their strong interest in promoting
learning between academics and development practitioners.

7. Outcomes:

It is impossible to predict the specific changes in practice and thinking that will come out of
the Complexity Dialogues. This will be a highly interactive and complex process where, for
example, changes in practice that seem to make sense for complexity experts are not
appropriate in the field or not accepted by practitioners. However, it is safe to assume that
the following outcomes will result out of this initiative:

       A more enabling environment: improved donor policies, rules and procedures that
       are more open and supportive of practices and policies of inclusive market
       development based on complexity and systems thinking (synergic with the MaFI-
       festo Dialogues).
       Stronger networks and communities of practice:complexity experts and market
       facilitators share knowledge and collaborate to address critical challenges and
       questions in the field of inclusive market development
       Complexity-based thinking and practice: facilitators of inclusive market
       development are aware of the importance of complexity issues in their work, invest
       time and resources in learning about them, and find new ways of putting complexity
       in practice in their work (e.g. through new frameworks, procedures, techniques,
       tools,etc.)

8. Outputs or products:

       Reference materials for practitioners: books, wikis, websites, MaFI syntheses,
       Breakfast Seminars, Speakers Corners, manuals, guidelines, videos, podcasts, training
       courses, etc.
       Evidence and case studies that can be used by practitioners and policy-makers to
                                                                                                  3




       advocate for more complexity science and systems thinking in inclusive market
                                                                                                  Page




       development.

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Complexity Dialogues Project, Mar2012, Short

  • 1. The Market Facilitation Initiative (MaFI) The Complexity Dialogues: embracing complexity to boost the impact, efficiency and sustainability of inclusive market facilitation Project document, short version (Mar 2012) 1. The core idea: Let’s bring together the communities of practice of complexity science and VCD/M4P/inclusive markets to learn from one another and test methods & tools in the field. 2. What for? To boost the impact, efficiency and sustainability of inclusive market systems facilitation and to influence donors and policy-makers to embrace complexity as part of their frameworks, rules, procedures and investments (synergic with The MaFI-festo Dialogues http://slidesha.re/mafifesto2). 3. The core problem: In the field of inclusive market development (especially when using facilitation) there is a lot of talking about the importance of complex systems. It is generally accepted that markets are complex systems and that we need to plan, implement and measure our interventions using the “lenses” of complexity and systems. It is not unusual to hear that complex systems are “composed of many actors who interact in many ways and that there are feedback loops that produce weird behavior”. However, knowing how complex systems work is much more (and much more challenging) than knowing how they look like. Intuitions and experience are important but not enough. Effective facilitators of inclusive market development need to gain a better understanding of the science of complexity;be able to identify the concepts, frameworks and tools that work and do not work for them; and even create new techniques and tools. But this has to be done in collaboration with complexity experts. Furthermore, it is critical to build the evidence to demonstrate to practitioners, donors and policy-makers that the “lenses” of complexity and systems boost our impact, outreach and cost- and time-efficiency. 4. Proposed solution: To create a systematic and well-documented process of interaction, action-research and learning between the communities of practice of complexity science and VCD/M4P/IMD with a strong focus on practical applications on the ground and on the production of evidence of the effects of complexity on real programs. After the complexity workshop during the SEEP Annual Conference in 2011, it was possible to tell that there is a strong demand from economic development practitioners to know more about concrete tools to apply complexity in their work. It was also clear that experts in the complexity field and some cutting-edge donors like USAID are interested in promoting a more systematic learning process that involves economic development practitioners and policy-makers. 1 Page
  • 2. 5. Proposed strategy: Phase 1: Building mutual knowledge and trust: Anecdotal evidence seems to suggest that most VCD/M4P/IMD practitioners do not know what complexity science has to offer to their practice. Conversely, most complexity experts (many of whom come from biology, physics, mathematics, transport/crowd management, neurology, etc.) do not know what inclusive market development practitioners do or want to achieve. A first series of “dialogues” (meetings, seminars, workshops, webinars, e-consultations, etc.) will be required for the two CoPs to know what they need and what they can offer to one another, and for them to come up with a learning agenda. In this first phase,the following groups will be identified: complexity experts in different parts of the world who are keen to contribute and participate MaFI members who want to lead, mobilize and facilitate the learning process in different countries Potential funders of the interactions, pilots and knowledge products(with special emphasis on development agencies who fund market development programs) Phase 2: Defining and implementing the learning agenda: In the second phase, the participants will convert the learning agenda that came out of phase 1 into an action plan. Concrete activities (e.g. seminars, webinars and workshops), tools and products (e.g. guidelines and even training courses) around concrete issues will be identified and explored. MaFIand the partners will play a crucial role in capturing and disseminating the knowledge produced by this initiative. MaFI members who are keen and in a position to pilot new approaches, techniques or tools grounded on complexity science and to produce evidenceof impact will also be identified. (Some pilots may start during Phase 2). Phase 3: Piloting approaches, techniques or tools in the field: This phase is dedicated to the application of concepts, approaches, techniques or tools from the complexity field in VCD/M4P/IMD programs. The members who will implement pilots will have the support of research institutions and other experts to design and implement them in the most robust ways possible. The end of phase 3 will also include activities related to the systematization of lessons and evidence of impact. 6. Potential Partnerships: This initiative requires a good balance between practitioners and academics. The following is a proposed line-up of key partners: 2 Page
  • 3. The Santa Fe Institute as the academic institution connecting the initiative to a core group of complexity experts. These experts will help us to connect with other peers in other countries and to design the learning agenda and the field pilots. USAID as a cutting-edge donor who is already working in the issue of complexity and development. USAID will provide advice about how to design and implement this initiative in ways that can influence the wider donor community to incorporate complexity and systems thinking in their rules and procedures (synergic with the MaFI-festo Dialogues). SEEP/MaFI as the practitioners’ network that makes sure that the initiative is relevant for the market development practitioners worldwide. MaFI will also coordinate the members who will be involved in the field pilots. Other organizationsthat can be considered are the Institute of Development Studies (IDS) and the Economic and Social Research Council (ESRC) from the UK. The former could bring academic expertise in development issues and social research related to the field pilots. The latter can be an appropriate funder of this initiative given their strong interest in promoting learning between academics and development practitioners. 7. Outcomes: It is impossible to predict the specific changes in practice and thinking that will come out of the Complexity Dialogues. This will be a highly interactive and complex process where, for example, changes in practice that seem to make sense for complexity experts are not appropriate in the field or not accepted by practitioners. However, it is safe to assume that the following outcomes will result out of this initiative: A more enabling environment: improved donor policies, rules and procedures that are more open and supportive of practices and policies of inclusive market development based on complexity and systems thinking (synergic with the MaFI- festo Dialogues). Stronger networks and communities of practice:complexity experts and market facilitators share knowledge and collaborate to address critical challenges and questions in the field of inclusive market development Complexity-based thinking and practice: facilitators of inclusive market development are aware of the importance of complexity issues in their work, invest time and resources in learning about them, and find new ways of putting complexity in practice in their work (e.g. through new frameworks, procedures, techniques, tools,etc.) 8. Outputs or products: Reference materials for practitioners: books, wikis, websites, MaFI syntheses, Breakfast Seminars, Speakers Corners, manuals, guidelines, videos, podcasts, training courses, etc. Evidence and case studies that can be used by practitioners and policy-makers to 3 advocate for more complexity science and systems thinking in inclusive market Page development.