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Constructing markets to serve the poor in developing countries is
an increasingly popular approach among non-governmental and
government organizations for poverty reduction. This study explores
a UN Agency project aimed at developing a market for business
services for micro- entrepreneurs in China. By using socio-economic
theories on the construction of markets combined with institutional
theories, the author describes the activities, challenges, and
concerns of a market designer when constructing a market. The
findings show how the idea of the market can be used as a tool to
provide a vision and unite actors around common goals and
objectives. However, in this specific project, the voluntary nature
of the standards in the market model limits the ability of the
market designers - the UN Agency - to control the implementation
and make the market work. The market designers become forced to
compromise and manipulate the original idea of the market, which
results in an unstable market with conflicting interests and goals
built into the design.
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