Evaluation of the market systems development approach

This report presents the findings of an evaluation of Sida’s management of the market systems development(MSD) approach. It aims to inform thinking on how Sida can best manage its growing portfolio ofMSD programs. Beyond this, it provides insights relevant to Sida’s wider support to complex andadaptive programs. The evaluation identified several factors that affect Sida’s ability to ensure thatconducive conditions are in place for effective MSD programs and good development programmingmore generally. Sida’s relatively flexible framework of rules, guidelines and systems for projectmanagement provide the space needed for staff to innovate and manage adaptively. But for this tohappen consistently and effectively, Sida needs to invest more deliberately in building the capacity of itsstaff in relevant areas. In addition, leadership and incentives are key to shaping a culture of activeexperimentation and learning. This needs to be supported with clearer guidance for those involved in thedesign and appraisal of MSD projects; and strengthened oversight of project performance, includingthrough adjustments to Sida’s contracts and funding agreements.