Guidance + Tools

Four principles to guide procurement practice for MSD

How donors can enable and encourage investment in training and capacity-building

Published by
BEAM Exchange

A briefing paper about the procurement and contracting of programmes that use a market systems development (MSD) approach. 

The paper provides a focus for conversations among donor agencies about changes in policy and practice that would enable and incentivise MSD programme implementers to invest more in building programmes’capacity to deliver high quality results.

It offers a synthesis of prominent case studies, research papers, workshops, interviews, articles and policy briefs that address these issues. Specifically, it proposes four principles for donors to consider in relation to the procurement of MSD programming:

  1. MSD teams need diverse skill-sets & time to nurture them
  2. Learning is a necessary MSD programme cost
  3. Innovation & enduring behaviour change cannot be purchased
  4. Contracts for MSD programme emphasise outcomes over activities

The principles are broadly examined in terms of how they operationally relate to MSD programmes, the state of current common practice and the consideration of outstanding procurement-related issues.