Prompted by some work for a client I dived back into the literature on institutions this week. It was a fascinating journey and I have discovered some other the things I have known before and confirmed many of my suspicions with the project at hand. Indeed, the reading confirmed my view that most market systems development projects pay too little attention to the institutions in a country, given their massive importance in shaping economic development. There is too much focus on finding solutions to fixing problems in the short term.
What I found fascinating while reading is that the insights from the theories on institutions and on complex systems actually overlap really neatly, with maybe slightly different ways of approaching change but in a coherent and complementary way.
Quite a few market systems development projects I have come across in my practice have a goal in their logframe to achieve systemic change. In most cases this is spelled out around some or other market function that is supposed to be improved (e.g. improved access of poor farmers to seed). But in some cases, the log frame simply asks for a number of unspecified systemic changes to be achieved. Both cases are interesting in their own right, but particularly in the latter case evaluators need to be able to answer the question “is it systemic change or is it not?”. There has not been a clear way to answer the question.
In this post, I want to introduce two concepts that can be helpful to answer this question. Firstly, the idea of ‘depth of change’ taken from the systems thinking literature, which helps us understand how fundamental a change is with regards to a system’s architecture. Secondly, the idea of resilience and the question if development interventions build the resilience of the market system or economy. Continue reading →