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Globally, 65 million small and medium enterprises (SMEs) face a $5.2 trillion financing gap. SMEs not only represent the large majority of businesses but also create more than half of the world’s employment. A lack of finance impedes the growth of these critical businesses and the economies in which they operate. 

Understanding and influencing norms and behavior change emerge as critical components for fostering lasting impact. Day 3 discussions among practitioners at the 6th annual Market Systems Symposium shed light on diverse perspectives and strategies employed across different sectors within the development landscape to influence behavior change.

This blogpost is one in a series of blogs sharing insights gained from the Market Systems Symposium 2023. The MSS blogpost provides a brief snapshot of key insights shared across a number of different sessions in MSS 2023 held in Cape Town between 13-15 November 2023. Market Systems Development (MSD) is more than a technical approach—it demands operational adaptation to effectively drive transformative change. On Day 2 of the Market Systems Symposium 2023 discussions among industry experts, valuable insights were shared on practical steps organizations can take within the operational and grants arena to align with the principles of MSD.

As a systemic lens is being more widely accepted across development programming, organizations and programs have witnessed a notable shift towards embracing a more intentional Market Systems Development (MSD) approach. This transformation has been spearheaded by thought leaders and change agents who recognize the imperative of adopting a systemic lens. In this blog, we explore insights shared by some prominent practitioners in the field—on Day 2 of the Market Systems Symposium 2023—offering an overview of how their respective organizations have navigated this evolution.

In the dynamic landscape of international development, the intersection of market systems development (MSD) and conflict presents a unique set of challenges and opportunities. Several conversations on Day 1 at the Market Systems Symposium 2023 centered around MSD and conflict, drawing on experiences from Ukraine, Afghanistan, and Nigeria.

In the vast expanse of global development, where complexity too often reigns alongside chaos, a symphony of collaboration is playing out, weaving together diverse contexts and perspectives. The 6th annual Market Systems Symposium 2023 is bringing esteemed practitioners of Market Systems Development (MSD) to share insights and experiences, shedding light on the intersections of MSD with the three key themes this year: food security, conflict, and climate change. Kristin O'Planick, Market Systems Team Lead at USAID, and Elisabet Montgomery, Senior Policy Specialist Market Development at SIDA—both key figures in the donor working group on MSD—offered opening remarks and a glimpse into the evolving space of market systems development.

What does protecting watersheds have to do with the coffee market system? Surprisingly, a lot! Since 2014, Catholic Relief Services’ (CRS) Blue Harvest Program has worked with local partners in Honduras, El Salvador and Nicaragua to restore water resources and transform coffee livelihoods. The mountainous, coffee-producing areas of Central America provide drinking water for millions of people. As land degradation and climate change threaten coffee production and contribute to growing water scarcity, the link between the coffee market system and natural resource management has never been more important.

Is it possible to reintroduce a crop with a compelling global value in a nation with substantial land degradation and little institutional crop memory? Yes, it’s possible. But only with a strategic approach to market systems development (MSD). With local partners CLUSA El Salvador, Acugolfo and Caritas, Catholic Relief Services (CRS) has been working since 2014 to resuscitate El Salvador’s cacao sector through the Alianza Cacao project. Alianza Cacao aims to turn El Salvador into a key exporter and place of origin for high-quality, aromatic, fine-flavor cacao by stimulating production of an estimated 4,500 metric tons of Salvadoran cacao worth approximately $20,000,000 over the life of the project.

By the USAID CATALYZE WEE team

By Natalie Alm, Communications Advisor, and Nicole Garcia, Senior Activity Manager, INVEST

By Kendahl Tyburski, Senior Gender Program Associate, Aspen Network of Development Entrepreneurs (ANDE)

This month, the Market Corner sits down with Kristin Wilcox, Chief of Party for the USAID-funded CLEAR Activity and advocate for the global cooperative movement, to explore the appeal of cooperatives to millennial and Gen Z professionals. The month’s first installme

In early 2022, the Western Balkans (Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia, and Serbia) started to emerge from the ravages of the COVID-19 pandemic, boasting rising industrial production, exports to the European Union (EU), increases in wages, and credit growth. The region is ripe for investment, but Russia’s war against Ukraine threatens this recovery, through higher energy and food costs, disruption in supply chains, and interruptions in trade.

USAID CATALYZE Peru increases small- and medium-sized enterprises (SMEs) and producer associations’ access to finance through an innovative Pay for Results (P4R) program, which helps financial institutions (FI) minimize their risk in lending while growing their portfolios in underserved regions in the Amazon. CATALYZE Peru has signed P4R agreements with 10 FIs, which have committed to mobilize USD24.1 million to the Amazonia region.

This month, the Market Corner sits down with Kristin Wilcox, Chief of Party for the USAID Cooperative Development Program - Cooperative Leadership Engagement Advocacy and Research (CLEAR) Activity and advocate for the global cooperative movement, to explore the role of cooperatives in advancing locally led development and the barriers they face. This post was authored by Holly Lard Krueger.

This is the fourth post in a four-part series exploring impact investment and finance for development authored by Autumn Gorman of USAID's Private Sector Engagement Hub.

This is the third post in a four-part series exploring impact investment and finance for development authored by Autumn Gorman of USAID's Private Sector Engagement Hub.

This is the second installment in May’s Market Corner series, written by Holly Lard Krueger, which focuses on the market systems development (MSD) tools and resources being shared at the 2022 Market Systems Symposium and ways for practitioners to engage with the MSD community both at and outside of the annual event.

This post was written by Holly Lard Krueger. During the pandemic, opportunities to step out of our day-to-day and into a place of sharing and learning took on greater importance. For many in the market systems development (MSD) community, the annual Market Systems Symposium (MSS) is one of these special opportunities to come together (virtually) to share, debate, and learn.

In this second installment of a four-part series on impact investing and finance for development, Autumn Gorman from USAID's Private Sector Engagement Hub discusses blended finance.

To continue developing a deeper understanding of impact investing and finance for development, Autumn Gorman from USAID's Private Sector Engagement Hub discusses what is and what is not yet impact investing in this first installment of a four-part blog series.

In April’s second installment, the Market Corner continues its conversation with Sana Kapadia from Gender Smart Investing and Rory Moses, Independent Consultant most recently with the G7 Impact Taskforce and previously Associate Director at Palladium Impact Capital, about the obstacles to greater uptake of deep impact investing approaches like 

This month, the Market Corner sits down with two impact investing experts, Sana Kapadia from GenderSmart Investing and Rory Moses, an independent consultant most recently with the G7 Impact Taskforce and previously Associate Director at Palladium Impact Capital. In this month’s first installment of the series, the Market Corner examines where the impact investing field is headed, and the role that systems thinking can play in accelerating that journey.

In this month’s second installment, the Market Corner continues the conversation on adapting market systems development (MSD) programs to address the care economy with MSD and gender equality and social inclusion (GESI) experts Ariane Ryan from the World University Service of Canada

This month, the Market Corner speaks with market systems development (MSD) and gender equality and social inclusion (GESI) experts Ariane Ryan from the World University Service of Canada (WUSC) and Ellie Wong from World Vision Australia (WVA) to explore how they are adapting the MSD approach to