Competitiveness or inclusion? Balancing short-term results with deep-seated change

This paper explores the issue of sector selection in MSD programmes.

It looks at the trade-off between achieving results in the short term and building long-term competitiveness, through a case study of MDF’s work in the leather industry in Pakistan.

The paper examines MDF’s rationale for intervening in the leather sector, the interventions it made and the resulting impact on the industry. It explores the decisions and compromises the programme faced and – based on this experience – suggests ways in which MSD programmes might:

• Adjust their approach to sector selection to better achieve the dual objectives of increased inclusion and competitiveness
• Make their measurement and reporting systems more balanced
• Use a portfolio management approach to enable a judicious blending of sectors and interventions that can deliver ‘quick wins’ at the same time as tackling more deep-seated obstacles to competitiveness