Develop a realistic picture of how the system will work after intervention
To set out a future picture where the market system works more effectively and inclusively you need to think through which players are best suited to perform which functions. Take into account the willingness (ie incentives) and ability (ie capacity) of market players to change.
The key questions to ask now are:
- Who will do in future (which player will perform which function or set which rule)?
- Who will pay in future (which player will resource which function or rule)?
Re-aligning functions and players is not a theoretical exercise. Be pragmatic: balance ambition with realism about feasibility, and consider the local context when assessing the likelihood of change.
There are three important factors to consider when you are assessing the feasibility of moving from the current picture to a future picture:
- The nature of the selected market system
- The history (past actions) and momentum (present and planned actions) of players within the system
- Innovation from elsewhere. Changes that have occurred outside the system but which might inform the feasibility of change within it
