Key Principles and Steps
“We often preoccupy ourselves with the symptoms, whereas if we went to the root cause of the problems, we would be able to overcome the problems once and for all.” Wangari Muta Maathai
“Lack of analysis of constraints is often translated into a wishful list of actions to be undertaken” Overseas Development Institute
Programmes need a good understanding of how the market system works – diagnosing how and why it fails to serve the poor – prior to intervening in it. This diagnostic process begins by identifying the disadvantages the poor face in a market system ( the ‘symptoms’) and iteratively proceeds into a detailed analysis that explains the continued existence of these disadvantages (the ‘root cause’).
Market systems are complex, so locating root causes can be difficult and time-consuming, but ceasing the diagnostic process too soon can result in programmes exerting their intervention efforts in the wrong places: dealing with symptoms but not their underlining causes, i.e. ‘fighting fires’
‘Paralysis by analysis’ must be avoided, however. The diagnostic has a practical purpose: information gathered should pinpoint what is responsible for maintaining the poor’s disadvantage and where intervention is most needed. It should:
- Identify the system-level constraints (root causes) that the programme can feasibly address
- Familiarise programmes with the incentives and capacities of market players associated with these constraints
- Generate intelligence and insights which can be used to influence market players during intervention
- Provide information that can be used for measurement purposes
The diagnostic process is broken down into four steps to make it easier to explain. In practice, the process is never entirely linear. Narrowing down on system-level constraints require exploration and experimental action, so programmes need to be prepared for some ‘back to the drawing board’ moments
Step 1: Verify that the market system(s) selected for further investigation remains valid
Step 2: Map the market system structure and understand its operation and dynamics to ascertain where the system adversely affects the target group:
Identify how the system isn’t working for poor people
Step 3: Identify system level constraints (root causes) that prevent the market system from serving the target group effectively:
Understand why the system isn’t working for poor people
Step 4: Decide which constraints are the priority:
Determine the point(s) where the programme can focus its efforts on the greatest effect