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Facilitator guide
                MODULE 8: FACILITATING CHANGE
Purpose: Participants have the tools and knowledge to facilitate systemic and
sustainable change within the market system

Learning objectives:
On completing this module participants should be…

    Aware of a range of tools and activities for facilitating change
    Able to understand the purpose of multi-actor forums and market opportunity
     groups and the difference between them
    Able to describe and apply the recommended approach for facilitating forums
    Able to understand the benefits and risks of using subsidies
    Able to describe key strategies to mitigate the risks of using subsidies




Materials:
 Flipchart and markers
 Projector / TV / large laptop
 8.1 Facilitating Change - slides
 8.2 Photopod Cold Milk for Hot Profits
 8.3a Multi-Actor Forums handout
 8.3b Market Opportunity Groups handout
 8.3c Facilitating effective forums handout
 8.4 Examples of Smart Subsidies
 8.5 Key Principles and Tips on Subsidies

Session title                                                   Time
Introduction                                                    60 mins
Multi-Actor Forums and Market Opportunity Groups                50 mins
Creating the space for learning                                 30 mins
Participatory monitoring                                        30 mins
Smart subsidies                                                 60 mins
                                                         Total 3 hours 50 mins

                                           1
TRAINING MATERIALS: MODULE 8




Session title: Introduction
Time: 50 minutes

Materials:
 8.2 Photopod Cold Milk for Hot Profits
 Something to view photopod on – eg. projector / TV / large laptop
 8.1 Facilitating Change – slides 1-3
Objective:
    Introduce some of the tools and activities for facilitating change
    Gather participants’ key questions for the module
Context:
Today we are going to be looking at Facilitating Change, the step in which we
move from dialogue to facilitating the actual transformation of the market system.
To bring this step to life we are going to start with a Practical Action case study,
described through a photopod – a series of photos narrated by Alison Griffith, one
of Practical Action’s experts on inclusive markets.

Process:
   As you watch this photopod, take a note of your questions and anything that
   interests or surprises you.
    [Watch the Bangladesh photopod] - 25 minutes.
    Discuss the following review questions in groups of three - 10 minutes
       - What were some of the things you found most interesting about the
          project?
       - What were some of the activities and strategies used?
       - How would you describe Practical Action’s role?
       - What questions did it raise?
Plenary – 15 minutes
    What were some of the highlights of your conversations? [Ask for a few
    responses to each review question]
    What are your key questions about Facilitating Change? [go around and hear
    from each person – note their questions on the flipchart to return to at the end
    of the module]
    Let’s go through the purpose and agenda for this module [slides 1 & 2]
    Here are our top tips for facilitating change [go through slide 3]




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Session title: Multi-Actor Forums and Market Opportunity Groups
Time: 60 mins
Materials:
 8.3a Multi-Actor Forums handout – 1 each
 8.3b Market Opportunity Groups handout – 1 each
 8.3c Facilitating effective forums handout – 1 each
 Slide 4
Objective:
    Participants understand the purpose of multi-actor forums and market
       opportunity groups and the difference between them
    Participants can describe the recommended process through which to
       facilitate any forum
Context:
Two of the elements mentioned in the photopod were Market Opportunity Groups
and Multi-Actor forums. These are two tools that can be used to enhance the
capacities of market actors and support them to take action to transform their
market system. They are essential facilitation approaches in the PMSD process, so
we are going to spend some time understanding them in more detail.
Process:
Part 1 - 25 mins
   Get into pairs
    [hand out 8.3a and 8.3b to each pair]
    Decide between you who is going to read which handout
    Take 10 minutes to read your handouts, then take turns to explain them to
    each other
Plenary:
    So what is a market opportunity group and what is an interest forum? [check
    their understanding, and add any points they may have missed if necessary.
    Refer to the step 7 guidelines for help with this]
Part 2 - 35 mins
   Both the market opportunity groups and multi actor forums can take on a
   number of different forms. However, regardless of the format there are a
   number of stages that will help you to facilitate any group effectively.
    [go through slide 4 – see slide notes below for narrative]
    Team up with another pair to form a group of four [there should be 5 groups so
    you may need to get people into threes instead]. In your group you will reflect
    on one of these factors in more detail. [Hand out 8.3c]
    [Assign a different ‘factor’ to each group]
    Read through the different elements of the factor you have been given, then
    have a think about what other elements might be important to consider. Try to


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    add two of your own ideas to the handout. You have 10 minutes to do this.
Plenary:
   [Ask groups in turn to read out the elements already written on the worksheet
   as well as to share their additional ideas]
    Do you think there are any key lessons/pieces of advice that have been missed
    out? If so, would you like to share them with the rest of the group?
    Do you have any remaining questions about Market Opportunity Groups and
    Interest Forums?
Slide Notes
[Slide 4]
5 key stages in facilitating groups and forums
Build the foundations – In this stage there is intensive involvement of the
facilitator in the meetings, although most decisions, such as membership, rules of
participation and the location and frequency of the meetings should be made by
the actors themselves. Whether it is better to support the revitalisation of an
existing platform or to establish a new platform depends on the context, and the
leadership of its members.
Interdependence of members – We have found that nurturing greater
interdependence of members is a virtuous cycle. As members interact with each
other in the forum, they build their relationships. Market actors will increasingly
look to the forum as a place where they can network, collaborate, seek support
and learn from each other, and seek validation in what they do. The facilitator
should start to become less visible as interactions between actors take
precedence.
Management and capacity –.By this stage, the group starts to take on a life of its
own and may change form – whether by becoming more or less formal, expanding
or shrinking. Ownership of the group is now transferring to its members, and so it
is important that the forum is managed soundly, and that members have
confidence in the forum’s management systems.
Effective communication – How the forum communicates with different audiences
has a big impact on its effectiveness; it can further the goals of the group, build
trust and expand the impact of their innovations. Facilitators should help the
forum to build their capabilities in Member-to-member and internal
communication, communication with other market actors and key stakeholders,
and communication with potential members.
Self-determination – As with all facilitation activities, facilitators should keep in
mind how the forums they facilitate will sustain themselves after the end of the
intervention, or after they have achieved their objectives. If members want the
forum to continue to exist, it is very important that by the time facilitators end
their support, the forum has become able to manage and determine itself, and
continues to push for the shared interests of all the actors.


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TRAINING MATERIALS: MODULE 8


Session title: Creating the space for learning
Time: 30 minutes

Materials:
 Flipchart and pens
 Slides 5-6 - optional
Objective:
    Participants become aware of the importance of creating the right
       environment for learning and reflection – both for their team and for market
       actors – and know how to go about it
Context:
   Participatory Market System Development (PMSD) is a ‘learning-by-doing’
   approach. You should invest time and resources into monitoring and reflection
   as you go along and use this learning to guide facilitation and maximise
   results.
   Successful PMSD tends to involve trying things out, monitoring their
   outcomes, building on successes as you go along, and learning from failures.
   This is true both for the market actors and for the facilitation team.
   It is vital therefore that you are able to effectively create the space for
   learning, a space in which everyone is focused on the outcomes you are trying
   to achieve and willing to be flexible with their strategies, and a space in which
   people are honest about mistakes and failure so that everyone can learn about
   what does and doesn’t work.
Process:
   We are all familiar with environments in which we feel supported to share and
   learn and environments in which we do not.
Ask:
Do any of you have any examples of either of these types of environment that you
would be willing to share?
    Therefore you are going to come up with your own list of things you should
    generally do and things you should generally avoid doing in order to create an
    effective learning environment. We will call these ‘do’s’ and ‘don’ts’.
    I will need 2 volunteers to take notes on the flipcharts [get them working on 2
    separate flipcharts – one will write do’s and one don’ts]

Part 1 – 10 mins
    [get participants into groups of 3-5 people, and ask for a volunteer within the
    group to be the ‘reporter’]
    [Ask your note takers to write “[The do’s/The don’ts] (depending which they
    are) for creating an effective space for learning with market actors and with


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TRAINING MATERIALS: MODULE 8


    your team” on their flipchart]
    You will have 10 minutes to discuss, as soon as you’ve got a couple of ideas,
    send your ‘reporter’ up to the front to give those ideas to the note-taker while
    the rest of you continue to brainstorm

Part 2 – 10 mins
    [ask your note-takers to read out their lists]
    [If you think there is anything missing from their list, share slides 5 and 6]
    If you followed this advice do you think you would create the effective space
    for learning and reflection that we are aiming for? If not, why not? What is
    missing?
    Are there any of these dos or don’ts that only apply to the facilitation team or
    only apply to working with market actors? [There are likely to be very few, in
    which case it is worth highlighting this and finding out whether people would
    have expected the principles to be so transferable?]




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TRAINING MATERIALS: MODULE 8


Session title: Participatory Monitoring
Time: 30 mins
Materials:
 Flipchart and markers (two colours)
 Slide 7
Objective:
    Participants become aware of a range of activities which can be used for
      participatory monitoring
Context:
We have found that engaging market actors in participatory monitoring of tangible
and intangible changes in the market system can be a useful exercise around
which to facilitate market actors’ dialogue and collaboration with each other.
Process:
Part 1 – 20 mins
    [slide 7]
    Work in the same groups to come up with a range of activities you can use to
    enable market actors to share and monitor progress.
    List both those that you could do frequently – i.e. in weekly/monthly meetings
    and those you could do periodically, which could be every quarter, once a year
    or whatever you judge to be appropriate. We have started you off already with a
    suggestion to revise the market map on a periodic basis, giving market actors
    the chance to see what system-wide changes have occurred.
    Put a short description by each activity
    You will have 20 minutes for this exercise
   [Distribute flipchart paper and markers]
Part 2 – 10 mins
   [Give each group a different colour of pen]
   [Ask each group in turn to share one of their ideas - the other groups should
   listen and if they have it on their list, tick it off, if they don’t they should add
   it to the bottom of their list. Keep going till you run out of activities. By the
   end, all the groups will have the same list]
   [Challenge the groups to filter down the list of ideas according to which are
   low-cost, feasible, effective, or innovative]
Notes:
Some ideas for activities could be…
       Structured short weekly meetings where people report back on, for
       example, their progress / challenges / concerns
       Revision of action plans
       Updating/creating a relationship matrix
       Sharing stories of significant change


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TRAINING MATERIALS: MODULE 8


Session title: Smart subsidies
Time: 60 mins
Materials:
 Flipcharts and markers
 Slides 8 and 9
 8.4 Examples of Smart Subsidies
 8.5 Key Principles and Tips on Subsidies
Objective:
    Participants understand the benefits and risks of using subsidies
    Participants can describe key strategies to mitigate the risks of using
       subsidies
Context:
Subsidies are a key tool in the PMSD toolkit. However, given our focus on
sustainability and scale-up of market transformation there are risks associated
with their use. So we must be responsible and smart.
Process:
Part 1 - 10 mins
The Definition of Subsidies:
   Would anyone like to attempt a definition of a subsidy?
   Within the PMSD Roadmap - Subsidies refer to any type of grant that partially
   or totally covers the costs of a process, good or product in order to either make
   it less expensive (and therefore more accessible), or to change the behaviour
   of key market actors (e.g. to take more risks, experiment more or explore
   functions or products that they would have not explored without the subsidy).
What forms do you think these subsidies might take?
    [Whole group brainstorm. Refer to note 1 for examples to fill in gaps]
Part 2 - 20 mins
Opportunities and Risks
    At your tables, you have 10 minutes to discuss the following two questions
    and note the highlights of your discussion on a flipchart:
    1. Why might you use subsidies?
    2. What are the risks of using subsidies?
    [Show slide 8 on the projector]
    [Quick reports from each group. See note 2 for further examples]
Part 3 - 30 mins
Smart subsidies
Because of these risks it is recommended that you use subsidies smartly – so…
[display slide 9]

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TRAINING MATERIALS: MODULE 8


-   Keep them minimal: Don’t use subsidies and direct delivery unless you have
    to. Always look to use the minimum level of subsidy. Are there any market
    actors who have the incentives to invest and support the function in question?
    Could you facilitate these market actors to address the blockage themselves?
- Be strategic: If you choose to use subsidies and direct delivery, be strategic
    about them. Be clear about their purpose and the objective of their use.
    Design and plan the subsidised activities to achieve this objective and mitigate
    the risks of their use.
- Be cautious: Be aware of the risks of using subsidies and direct delivery of
    market functions and mitigate the risks as much as possible if you do choose
    to use them
Take a look at these Examples from the field for cases of smart and strategic use
of subsidies, and how to mitigate the risks of their use [hand out 8.4 and give
them a few minutes to read it]
Mitigating risks
   From what you have discussed and the cases that you have just read, what
   would you say are the top 3 risks in using subsidies? [Ask for more if there are
    more than 3 groups. Note responses on flipchart]
    Now we are going to look at what you can do to mitigate the risks. Each group
    will be allocated one of the risks to discuss and come back with your 3 key
    recommendations. You will have 10 minutes for this.
    [Quick reports from each group with the opportunity for questions from other
    groups]
    [Hand out 8.5 for all participants to keep as a useful overview on subsidies]
Notes:
1: Examples could include:
   Asset transfers e.g. tools, livestock
   Sharing cost of inputs e.g. giving out seeds or fertilizer
   Delivering services e.g. training, providing marketing assistance
   Providing start-up funding or finance
2: In case they struggled to come up with them – some examples below…
    1. Why might you use subsidies?
            -   Finance demonstrations of innovative practices
            -   Reduce risk for marginalised or risk-averse actors
            -   Unlock critical supporting inputs and services
    2. What are the risks of using subsidies?
            -   Dependency on time-bound resources
            -   Unscaleable
            -   Addressing symptoms rather than causes
            -   Distortion of existing markets


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TRAINING MATERIALS: MODULE 8



        Top                   Group size:
   Facilitation
       Tip!                   Some tips and advice on how to adapt the training materials
                              to work with different group sizes, and the ideal number of
                              participants to aim for.

 Number of                   Notes                               Suggestions
participants
1-7              You will struggle to run some 1. Get some more people involved! Invite
                 of the exercises with a group other staff in the office or from partner
                 this size                     organisations – they will get lots of benefit
                                               too.
                                               2. Adapt the exercises – use more pair
                                               work and have more whole group
                                               discussions
8-11             This group size will work     See notes in the sessions plans
                 well but some exercises will
                 need to be adapted
12-16            This is a perfect group size  Aim for this number! You will be able to
                 for this training             run most of the sessions with no
                                               adaptations.
17-30            This is a large group – the   1. If possible give yourself more time as
                 exercises should still be     you may find that sessions take longer with
                 effective but you may find    this size of group.
                 plenary discussions more of   2. Involve a co-facilitator, this size of group
                 a challenge                   is too big for one person
                                               3. You may want to split the group in half
                                               for some sections
                                               4. See notes for adaptations of exercises
                                               for larger groups




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Step 8 Training Materials - Facilitator Guide

  • 1. Facilitator guide MODULE 8: FACILITATING CHANGE Purpose: Participants have the tools and knowledge to facilitate systemic and sustainable change within the market system Learning objectives: On completing this module participants should be…  Aware of a range of tools and activities for facilitating change  Able to understand the purpose of multi-actor forums and market opportunity groups and the difference between them  Able to describe and apply the recommended approach for facilitating forums  Able to understand the benefits and risks of using subsidies  Able to describe key strategies to mitigate the risks of using subsidies Materials:  Flipchart and markers  Projector / TV / large laptop  8.1 Facilitating Change - slides  8.2 Photopod Cold Milk for Hot Profits  8.3a Multi-Actor Forums handout  8.3b Market Opportunity Groups handout  8.3c Facilitating effective forums handout  8.4 Examples of Smart Subsidies  8.5 Key Principles and Tips on Subsidies Session title Time Introduction 60 mins Multi-Actor Forums and Market Opportunity Groups 50 mins Creating the space for learning 30 mins Participatory monitoring 30 mins Smart subsidies 60 mins Total 3 hours 50 mins 1
  • 2. TRAINING MATERIALS: MODULE 8 Session title: Introduction Time: 50 minutes Materials:  8.2 Photopod Cold Milk for Hot Profits  Something to view photopod on – eg. projector / TV / large laptop  8.1 Facilitating Change – slides 1-3 Objective:  Introduce some of the tools and activities for facilitating change  Gather participants’ key questions for the module Context: Today we are going to be looking at Facilitating Change, the step in which we move from dialogue to facilitating the actual transformation of the market system. To bring this step to life we are going to start with a Practical Action case study, described through a photopod – a series of photos narrated by Alison Griffith, one of Practical Action’s experts on inclusive markets. Process: As you watch this photopod, take a note of your questions and anything that interests or surprises you. [Watch the Bangladesh photopod] - 25 minutes. Discuss the following review questions in groups of three - 10 minutes - What were some of the things you found most interesting about the project? - What were some of the activities and strategies used? - How would you describe Practical Action’s role? - What questions did it raise? Plenary – 15 minutes What were some of the highlights of your conversations? [Ask for a few responses to each review question] What are your key questions about Facilitating Change? [go around and hear from each person – note their questions on the flipchart to return to at the end of the module] Let’s go through the purpose and agenda for this module [slides 1 & 2] Here are our top tips for facilitating change [go through slide 3] Beta Version 1 – Sep 2012 2
  • 3. TRAINING MATERIALS: MODULE 8 Session title: Multi-Actor Forums and Market Opportunity Groups Time: 60 mins Materials:  8.3a Multi-Actor Forums handout – 1 each  8.3b Market Opportunity Groups handout – 1 each  8.3c Facilitating effective forums handout – 1 each  Slide 4 Objective:  Participants understand the purpose of multi-actor forums and market opportunity groups and the difference between them  Participants can describe the recommended process through which to facilitate any forum Context: Two of the elements mentioned in the photopod were Market Opportunity Groups and Multi-Actor forums. These are two tools that can be used to enhance the capacities of market actors and support them to take action to transform their market system. They are essential facilitation approaches in the PMSD process, so we are going to spend some time understanding them in more detail. Process: Part 1 - 25 mins Get into pairs [hand out 8.3a and 8.3b to each pair] Decide between you who is going to read which handout Take 10 minutes to read your handouts, then take turns to explain them to each other Plenary: So what is a market opportunity group and what is an interest forum? [check their understanding, and add any points they may have missed if necessary. Refer to the step 7 guidelines for help with this] Part 2 - 35 mins Both the market opportunity groups and multi actor forums can take on a number of different forms. However, regardless of the format there are a number of stages that will help you to facilitate any group effectively. [go through slide 4 – see slide notes below for narrative] Team up with another pair to form a group of four [there should be 5 groups so you may need to get people into threes instead]. In your group you will reflect on one of these factors in more detail. [Hand out 8.3c] [Assign a different ‘factor’ to each group] Read through the different elements of the factor you have been given, then have a think about what other elements might be important to consider. Try to Beta Version 1 – Sep 2012 3
  • 4. TRAINING MATERIALS: MODULE 8 add two of your own ideas to the handout. You have 10 minutes to do this. Plenary: [Ask groups in turn to read out the elements already written on the worksheet as well as to share their additional ideas] Do you think there are any key lessons/pieces of advice that have been missed out? If so, would you like to share them with the rest of the group? Do you have any remaining questions about Market Opportunity Groups and Interest Forums? Slide Notes [Slide 4] 5 key stages in facilitating groups and forums Build the foundations – In this stage there is intensive involvement of the facilitator in the meetings, although most decisions, such as membership, rules of participation and the location and frequency of the meetings should be made by the actors themselves. Whether it is better to support the revitalisation of an existing platform or to establish a new platform depends on the context, and the leadership of its members. Interdependence of members – We have found that nurturing greater interdependence of members is a virtuous cycle. As members interact with each other in the forum, they build their relationships. Market actors will increasingly look to the forum as a place where they can network, collaborate, seek support and learn from each other, and seek validation in what they do. The facilitator should start to become less visible as interactions between actors take precedence. Management and capacity –.By this stage, the group starts to take on a life of its own and may change form – whether by becoming more or less formal, expanding or shrinking. Ownership of the group is now transferring to its members, and so it is important that the forum is managed soundly, and that members have confidence in the forum’s management systems. Effective communication – How the forum communicates with different audiences has a big impact on its effectiveness; it can further the goals of the group, build trust and expand the impact of their innovations. Facilitators should help the forum to build their capabilities in Member-to-member and internal communication, communication with other market actors and key stakeholders, and communication with potential members. Self-determination – As with all facilitation activities, facilitators should keep in mind how the forums they facilitate will sustain themselves after the end of the intervention, or after they have achieved their objectives. If members want the forum to continue to exist, it is very important that by the time facilitators end their support, the forum has become able to manage and determine itself, and continues to push for the shared interests of all the actors. Beta Version 1 – Sep 2012 4
  • 5. TRAINING MATERIALS: MODULE 8 Session title: Creating the space for learning Time: 30 minutes Materials:  Flipchart and pens  Slides 5-6 - optional Objective:  Participants become aware of the importance of creating the right environment for learning and reflection – both for their team and for market actors – and know how to go about it Context: Participatory Market System Development (PMSD) is a ‘learning-by-doing’ approach. You should invest time and resources into monitoring and reflection as you go along and use this learning to guide facilitation and maximise results. Successful PMSD tends to involve trying things out, monitoring their outcomes, building on successes as you go along, and learning from failures. This is true both for the market actors and for the facilitation team. It is vital therefore that you are able to effectively create the space for learning, a space in which everyone is focused on the outcomes you are trying to achieve and willing to be flexible with their strategies, and a space in which people are honest about mistakes and failure so that everyone can learn about what does and doesn’t work. Process: We are all familiar with environments in which we feel supported to share and learn and environments in which we do not. Ask: Do any of you have any examples of either of these types of environment that you would be willing to share? Therefore you are going to come up with your own list of things you should generally do and things you should generally avoid doing in order to create an effective learning environment. We will call these ‘do’s’ and ‘don’ts’. I will need 2 volunteers to take notes on the flipcharts [get them working on 2 separate flipcharts – one will write do’s and one don’ts] Part 1 – 10 mins [get participants into groups of 3-5 people, and ask for a volunteer within the group to be the ‘reporter’] [Ask your note takers to write “[The do’s/The don’ts] (depending which they are) for creating an effective space for learning with market actors and with Beta Version 1 – Sep 2012 5
  • 6. TRAINING MATERIALS: MODULE 8 your team” on their flipchart] You will have 10 minutes to discuss, as soon as you’ve got a couple of ideas, send your ‘reporter’ up to the front to give those ideas to the note-taker while the rest of you continue to brainstorm Part 2 – 10 mins [ask your note-takers to read out their lists] [If you think there is anything missing from their list, share slides 5 and 6] If you followed this advice do you think you would create the effective space for learning and reflection that we are aiming for? If not, why not? What is missing? Are there any of these dos or don’ts that only apply to the facilitation team or only apply to working with market actors? [There are likely to be very few, in which case it is worth highlighting this and finding out whether people would have expected the principles to be so transferable?] Beta Version 1 – Sep 2012 6
  • 7. TRAINING MATERIALS: MODULE 8 Session title: Participatory Monitoring Time: 30 mins Materials:  Flipchart and markers (two colours)  Slide 7 Objective:  Participants become aware of a range of activities which can be used for participatory monitoring Context: We have found that engaging market actors in participatory monitoring of tangible and intangible changes in the market system can be a useful exercise around which to facilitate market actors’ dialogue and collaboration with each other. Process: Part 1 – 20 mins [slide 7] Work in the same groups to come up with a range of activities you can use to enable market actors to share and monitor progress. List both those that you could do frequently – i.e. in weekly/monthly meetings and those you could do periodically, which could be every quarter, once a year or whatever you judge to be appropriate. We have started you off already with a suggestion to revise the market map on a periodic basis, giving market actors the chance to see what system-wide changes have occurred. Put a short description by each activity You will have 20 minutes for this exercise [Distribute flipchart paper and markers] Part 2 – 10 mins [Give each group a different colour of pen] [Ask each group in turn to share one of their ideas - the other groups should listen and if they have it on their list, tick it off, if they don’t they should add it to the bottom of their list. Keep going till you run out of activities. By the end, all the groups will have the same list] [Challenge the groups to filter down the list of ideas according to which are low-cost, feasible, effective, or innovative] Notes: Some ideas for activities could be… Structured short weekly meetings where people report back on, for example, their progress / challenges / concerns Revision of action plans Updating/creating a relationship matrix Sharing stories of significant change Beta Version 1 – Sep 2012 7
  • 8. TRAINING MATERIALS: MODULE 8 Session title: Smart subsidies Time: 60 mins Materials:  Flipcharts and markers  Slides 8 and 9  8.4 Examples of Smart Subsidies  8.5 Key Principles and Tips on Subsidies Objective:  Participants understand the benefits and risks of using subsidies  Participants can describe key strategies to mitigate the risks of using subsidies Context: Subsidies are a key tool in the PMSD toolkit. However, given our focus on sustainability and scale-up of market transformation there are risks associated with their use. So we must be responsible and smart. Process: Part 1 - 10 mins The Definition of Subsidies: Would anyone like to attempt a definition of a subsidy? Within the PMSD Roadmap - Subsidies refer to any type of grant that partially or totally covers the costs of a process, good or product in order to either make it less expensive (and therefore more accessible), or to change the behaviour of key market actors (e.g. to take more risks, experiment more or explore functions or products that they would have not explored without the subsidy). What forms do you think these subsidies might take? [Whole group brainstorm. Refer to note 1 for examples to fill in gaps] Part 2 - 20 mins Opportunities and Risks At your tables, you have 10 minutes to discuss the following two questions and note the highlights of your discussion on a flipchart: 1. Why might you use subsidies? 2. What are the risks of using subsidies? [Show slide 8 on the projector] [Quick reports from each group. See note 2 for further examples] Part 3 - 30 mins Smart subsidies Because of these risks it is recommended that you use subsidies smartly – so… [display slide 9] Beta Version 1 – Sep 2012 8
  • 9. TRAINING MATERIALS: MODULE 8 - Keep them minimal: Don’t use subsidies and direct delivery unless you have to. Always look to use the minimum level of subsidy. Are there any market actors who have the incentives to invest and support the function in question? Could you facilitate these market actors to address the blockage themselves? - Be strategic: If you choose to use subsidies and direct delivery, be strategic about them. Be clear about their purpose and the objective of their use. Design and plan the subsidised activities to achieve this objective and mitigate the risks of their use. - Be cautious: Be aware of the risks of using subsidies and direct delivery of market functions and mitigate the risks as much as possible if you do choose to use them Take a look at these Examples from the field for cases of smart and strategic use of subsidies, and how to mitigate the risks of their use [hand out 8.4 and give them a few minutes to read it] Mitigating risks From what you have discussed and the cases that you have just read, what would you say are the top 3 risks in using subsidies? [Ask for more if there are more than 3 groups. Note responses on flipchart] Now we are going to look at what you can do to mitigate the risks. Each group will be allocated one of the risks to discuss and come back with your 3 key recommendations. You will have 10 minutes for this. [Quick reports from each group with the opportunity for questions from other groups] [Hand out 8.5 for all participants to keep as a useful overview on subsidies] Notes: 1: Examples could include: Asset transfers e.g. tools, livestock Sharing cost of inputs e.g. giving out seeds or fertilizer Delivering services e.g. training, providing marketing assistance Providing start-up funding or finance 2: In case they struggled to come up with them – some examples below… 1. Why might you use subsidies? - Finance demonstrations of innovative practices - Reduce risk for marginalised or risk-averse actors - Unlock critical supporting inputs and services 2. What are the risks of using subsidies? - Dependency on time-bound resources - Unscaleable - Addressing symptoms rather than causes - Distortion of existing markets Beta Version 1 – Sep 2012 9
  • 10. TRAINING MATERIALS: MODULE 8 Top Group size: Facilitation Tip! Some tips and advice on how to adapt the training materials to work with different group sizes, and the ideal number of participants to aim for. Number of Notes Suggestions participants 1-7 You will struggle to run some 1. Get some more people involved! Invite of the exercises with a group other staff in the office or from partner this size organisations – they will get lots of benefit too. 2. Adapt the exercises – use more pair work and have more whole group discussions 8-11 This group size will work See notes in the sessions plans well but some exercises will need to be adapted 12-16 This is a perfect group size Aim for this number! You will be able to for this training run most of the sessions with no adaptations. 17-30 This is a large group – the 1. If possible give yourself more time as exercises should still be you may find that sessions take longer with effective but you may find this size of group. plenary discussions more of 2. Involve a co-facilitator, this size of group a challenge is too big for one person 3. You may want to split the group in half for some sections 4. See notes for adaptations of exercises for larger groups Beta Version 1 – Sep 2012 10