Making markets work for the poor

Against this backdrop, ITDG, a relatively small UK-based international organisation, has dedicated itself to the task of addressing the technological needs of the poor to improve their livelihoods and root out poverty. Its work goes back more than three decades, to its founder Schumacher, a proponent of small-scale, appropriate and sustainable technological interventions as a solution to the increasing problems of the world, much of which have been created by humans.

In Bangladesh, ITDG has specifically focussed on making markets work for the poor. Any intervention, be it the application of new technology, availability of credit for investment, development of infrastructure has implications for enhancing productivity, livelihoods opportunities and other basic needs. For this to be effective and meaningful to the poor, it is important that issues of accessing market or making the necessary market linkages are adequately addressed.

There are hundreds and thousands, small-scale farmers, non-farm entrepreneurs, food processors, artisans, fisher-folks and other service providers in Bangladesh. Some market a small amount for generating cash income, others sell their entire produce on which their livelihoods depend wholly. They operate at low levels of skill, technology, capital and productivity, and are unorganised, facing markets that are under developed, while at the same encountering competition from large producers and importers, who are selling at cheaper prices. Lack of access and linkage with markets, often distorts prices with influential and exploitative middlemen taking advantage. These small scale producers hardly receive any government support, but have to face many impediments, and not to mention, an insecurity environment, dominated and controlled by extortionists and other unauthorised rent seekers. The situation often leads to shortages, hoarding by middlemen and spiralling inflation, which result in further difficulties for ordinary consumers to access the basic commodities they need for survival.

What is ITDG-Bangladesh doing?
ITDG Bangladesh is implementing projects and programmes that primarily aim at promoting and building the capacity of NGO's, private sector organisations, government bodies and individuals to develop and implement financially viable and sustainable small enterprises. To undertake this, ITDG has developed some strategic interventions and activities, which are explained below:

First and foremost, it is attempting to develop a full understanding of the market and livelihood context, to address issues of regulatory, trade and economic policy constraints on small producers and the social, institutional and technological constraints, and service needs of this group. The need to develop in-depth understanding in this field is critical, as it will be able to throw light on key aspect of the issues involved, the relevant groups who have to be targeted and the necessary interventions that have to be put in place.

An essential element of small enterprises to thrive is to ensure that there is continuous access to relevant and improved extension and business services. To ensure this, ITDG is pursuing on building technological capabilities, delivering technical and market information, supporting producers groups and organisations, enabling greater access to up-to-date market intelligence, understanding and building supply chain linkages, and promoting market oriented supply chain linkages.

Through sustainable training, technology transfer and development, product diversification, information publication and ICTs, capacity-building interventions that help small producers to collaborate, understand and analyse market structure and trends and responding to it, on an ongoing basis is facilitated. All these initiatives are expected to demonstrate successful and proven approaches and methods of promoting market oriented small business enterprises, so that the poor can benefit from and improve their livelihoods.

Veena Khaleque is Country Director, ITDG-Bangladesh