Challenges to the BDS Market Development Model

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Challenges to the BDS Market Development Model

• ACDI/VOCA
• February 2003

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Challenges to the BDS Model

• The model does not always fit
• Who is the facilitator, and who the providers?
• What is in line with the MDP?
• What is not?
• What might be the reasons why the program has
  been designed this way?
• How might it have been designed differently to
  better fit the MDP?

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Challenges to the BDS Model

• Impact today versus sustainability tomorrow
• Donor education
• Rethinking targets and indicators
• Drawing on MD support

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Challenges to the BDS Model

• Does the MDP work for the poor?
• Can you embed all services?
• What kinds of subsidies are acceptable and for
  how long?
• How do you interest the private sector in the
  poor?

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Challenges to the BDS Model

• What happens in rural areas?
• Physical isolation
• Underdeveloped infrastructure
• Cultural and/or linguistic barriers
• Limited access to high value markets
• Lack of market information
• Lower levels of education
• Monopolistic marketing arrangements

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Challenges to the BDS Model

• What about command economies?
• The governments role
• The power of parastatals
• Paternalistic attitudes
• Weak private sector

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Challenges to the BDS Model

• Are there pre-requisites for the MDP to work?
• Is one model enough?

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Challenges to the BDS Model

• Do the facilitator and provider roles always have
  to be distinct?
• How do you know when to spin off services?
• What is the role of cooperatives?

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Resources

• www.seepnetwork.org/bdsguide.html
• www.ilo.org/public/english/employment/ent/sed/bds/
  seminar/index.htm
• http//oracle02.ilo.org/dyn/empent/empent.portal?p
  _docidDONORHEADp_progSp_subprogBD
• ACDI/VOCAs BDS e-room
• Finance and BDS Library