Strategic Objective 5:

Broad-based and sustainable pro-poor economic growth (MDG 1)

EKN tries to increase income and employment opportunities and create a better working environment for the poor.

Rationale for EKN support to the sector

This aim is addressed through programmes run directly from Head Quarters in the Hague, whereby the Embassy acts a first contact point. These programs are the Match Making Facility, the Private Sector Investment Programme and the

ORIO infrastructure programme. Also, the activities of the

Dutch Development Bank FMO, the Centre for Promotion of Imports form development countries, and the PUM-programme contribute to this end.

C- Activities under taken in support of the EKN objectives

INTRODUCTION ON KATALYST
 

Background

Katalyst is considered to be one of the most successful market development projects in the world. Since 2003 Katalyst has achieved significant jobs and income impact by increasing the competitiveness of micro, small and medium sized enterprises in selected urban and rural sectors.

Katalyst follows a pro-poor, market development approach in promoting economic growth. We focus on sectors with high growth potential in terms of jobs, productivity, and profitability, and where there are other strategic economic considerations (such as export potential). Katalyst partners with a wide range of private and public sector organizations in order to leverage our resources and maximize impact.

The impact of the first phase (which finished in March 2008) of the project was impressive; Katalyst helped to create almost 200,000 jobs and, thanks to the project, more than 700,000 enterprises and farmers benefited from access to better services, more advanced technology, better quality inputs and more effective representation.

The targets for the second phase (April 2008 – March 2013) are even more demanding; to reach more than 1.2 million enterprises and farmers, increasing incomes by 10% and helping to create or safeguard more than half a million jobs.

Katalyst is implemented under the Ministry of Commerce (MoC) of the Government of Bangladesh by Swisscontact and GTZ International Services.

The Approach

Katalyst’s approach is designed to benefit the poor as producers, entrepreneurs, employees or consumers. The market development approach we use is based on the premise that better private and public sector business services, and an improved enabling environment lead to more competitive enterprises, which in turn leads to sustainable economic growth and poverty reduction.

We work on a sector wide basis; targeting growth opportunities and removing constraints. In the context of our guiding principles, we develop a comprehensive sector strategy to guide our engagement, identifying leverage potential and

synergies, and focusing on achieving scale of impact.

In partnership with market players, Katalyst designs and implements interventions to treat the underlying causes of weak markets, not the superficial symptoms. A key feature of these interventions is that they harness market incentives to encourage scaling up and ensure sustainability.

 

Partner organisation:

 Swiss Contact and GTZ

Budget:

 € 3.5 million  (Total budget approximately € 35 million)

Timeframe:

 2008-2013

Relevant website: http://www.katalyst.com.bd