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At first glance, the “Making Market Systems Work Better for the Poor” approach (M4P) and the value chain approach appear to be incompatible. However, a closer look reveals that the M4P literature paints a differentiated picture of markets, which is informed by the analysis of real markets, particularly rural markets. It stands for a pragmatic approach that can give important inputs for conceptual development for value chain approaches. At the same time, it is important not to merge the M4P and the value chain approaches, since this would compromise many of their respective strengths.

Value chain projects sometimes spend a lot of time and effort on research before going into practical activities. We suggest that there is little point in introducing M4P into a research focused approach to value chain development, since this might lead to enormously complex, resource-intensive and lengthy research projects. Instead, we suggest a process-oriented approach to value chain development that involves strong elements of action research. We suggest that there is a good opportunity to introduce M4P elements into such an approach.