Program Details: 
Reducing Poverty and Improving Lives

Mercy Corps fosters market driven, locally appropriate economic development in some of the world’s most challenging areas. We make use of already existing market relationships – those between buyers, sellers, producers, and consumers – to bridge social and political divides via business and trade.

Mercy Corps increases economic opportunities for entrepreneurs in developing countries by:

• Linking them to buyers in more lucrative markets;
• Improving their production methods to meet the requirements of higher-end markets;
• Organizing producer groups and cooperatives to increase negotiating power; and
• Working with local governments to improve local business environments.

Rural Market Development
Mercy Corps assists millions of people living in rural communities to overcome barriers to market participation by improving small-scale businesses, their supply chains and support services, and strengthening their negotiating power. Mercy Corps also helps communities influence local government policies that affect farmers and rural businesses.

In Mongolia, Mercy Corps assists nomadic herders to transform traditional livelihoods into commercial enterprises. We link these entrepreneurs with potential trading partners and facilitate access to bank loans via a loan guarantee mechanism. This has resulted in a more competitive and service oriented banking environment for rural Mongolian communities. Combined with Mercy Corps’ MarketWatch radio program – which provides current market information to rural farmers – Mercy Corps’ programs have created an environment in which Mongolian herders can realize greater economic opportunities. Sales generated from herders’ business activities over the last two years totaled nearly $2.2 million.

In Azerbaijan, Mercy Corps’ Community Access to Business Services program helped farmers access high-quality, affordable veterinary services. In three years, we reached more than 17,500 small businesses – 40 percent of which were headed by women. Household incomes for farmers increased by 60 percent due to improved animal health, and the Azerbaijan regional economy grew by $13.4 million, more than doubling since Mercy began programming there.

Emerging Market Development
Mercy Corps helps create positive, market-driven economic impact by enabling marginalized communities to participate in economic growth and partner with investors. In China, we work on the frontlines of urban migration, providing workforce training for at-risk adolescent minority girls, enabling these youth to become more employable while decreasing their HIV/AIDS risk.

With support from Mercy Corps’ venture capital fund – the Phoenix Fund – we also work with farmers in Guatemala to increase their income through crop diversification and access to local and export markets. Small landholders grow pineapples – a high-value crop produced for sale – along with traditional food staples. Together with a land conflict initiative, these farmers are moving from subsistence agriculture into land ownership and profitable crop production.

Market Development in Post–Disaster and Post-Conflict Environments
After the devastation wrought by the 2004 Indian Ocean tsunami, Mercy Corps was inspired to try new ideas in economic and social recovery, particularly in Indonesia. In Indonesia’s Aceh province, we focused on putting local communities back to work as quickly as possible – providing a hand up, not a hand-out – enabling them to rebuild a vibrant, self-sufficient economy.

Mercy Corps’ Cash-for-Work program in Aceh provided employment for 18,000 people whose homes and livelihoods had been destroyed by the tsunami. Mercy Corps also established financial access in the form of microfinance loans for entrepreneurs to build back natural resources. Our integrative approach has re-stimulated trade and given Aceh tsunami survivors control over how they rebuild their lives.

In Afghanistan, Mercy Corps’ market development strategy includes integrating vocational education and government participation into more direct investment in rural Afghan entrepreneurs. Our partnerships with 100 independent southern Afghan seed growers have stabilized local food supplies and provided farmers with successful business models, feeding roughly 6,000 households. As well, Mercy Corps has cultivated a business network of veterinary field units, and teamed up with the Afghan Ministry of Agriculture to strengthen industry standards.

Market Development and Technology
Mercy Corps MicroMentor program is an online community that works to match emerging entrepreneurs with experienced business mentors. MicroMentor enables the mentoring relationship to cross geographic boundaries to place inside industry information in the hands of local business owners. A sister initiative, www.pdxbizhelp.com, is currently being piloted in the United States.

Public/Private Partnerships
Mercy Corps works in partnership with the private sector to reduce poverty and create economically stable communities around the world. This includes creating jobs, fostering new businesses and delivering essential, asset-building goods and services to budding entrepreneurs.

In Guatemala and India, Mercy Corps works with leading companies in the tea industry to diversify agriculture and stimulate organic production among small farmers. In Kosovo and Serbia, Mercy Corps’ collaboration with private partners has resulted in more than 60,000 new jobs, $16.8 million for lower income households, and a final return on investment of more than 200 percent. Mercy Corps is currently replicating this approach in Kyrgyzstan.