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How do I decide when should I implement a market assessment?

Although the terms are often mistakenly used interchangeably, there is a different between market assessment and market analysis:

Market assessment is the process of collecting market-related data to understand the key features and characteristics of a market system, or the impact a disaster could have on the market system.

Market analysis refers to the process of understanding the key features and characteristics of a market system based on the data collected during the assessment.

Together, they represent an integral part of programme design for any response delivered, through either cash transfers or in-kind. Unless humanitarian responses are designed with a good understanding of key market systems, there is a risk that they may damage livelihoods, jobs, and businesses and undermine livelihood rehabilitation, which can in turn prolong the community’s dependence on outside assistance. Responses should ‘do no harm’ to consumers and markets by being market aware, and should ideally make use of local market systems when and where they are functional. To do so, market analysis should be captured in any project design, not just potential cash transfer programmes. What will vary from one project to another is the depth of the analysis as a light touch analysis and therefore a rapid assessment may suffice.

The inclusion of market analysis after a market assessment presents a great opportunity to improve the efficiency and effectiveness of humanitarian responses. Market analysis should allow for a better understanding of how people use and access markets, and ultimately a better understanding of how they meet their basic needs. This linkage is critical; in an emergency setting the collection and use of market data should not be disconnected from crisis affected communities. Neither should the analysis ignore the capacities, needs and constraints faced by the various inter-dependent market actors involved in the lives and livelihoods of the affected households. Market actors are not singular entities acting in isolation, but rather they are part of a wider system of governing bodies, formal and informal structures, gender and cultural norms, rules, and policies that also require some understanding. The main users of market assessment and analysis are country office teams. The information and analysis can be utilised to inform programme decisions related to the relevance of supporting the local market before or after a crisis, and modality choice. Market information can also be used for the following purposes, which can have direct or indirect impacts on decisions related to changes in programming:

• Pre-crisis: improve agency preparedness and support contingency planning exercises.

• Pre-crisis: trigger early action by providing refined market related monitoring and early warning indicators that can be followed and integrated into an Early Warning System.

• Pre-crisis: mitigate the impact of a predicted crisis and help build resilience by identifying which area(s) of the market may be affected, how it will be affected and by strengthening it prior to the crisis. This can include strengthening market actors and market access so that the market can better withstand shocks.

• Post-crisis: promote recovery by identifying which area(s) of the markets have been affected and how they can be supported to promote recovery and/or be in a position to use the local market to deliver the response.

• Assess the level of market and infrastructure functionality to determine the most appropriate delivery modality.

• Limit the risk of interventions causing a negative effect on local markets.

• Build organisation staff and partners’ capacity in market analysis and change the general attitude to be more favourable toward market-based programming (Juillard, H., 2016. Revised Pre-Crisis Market Analysis (PCMA). New York: International Rescue Committee). This can be important for increasing the consideration of markets in future programming.

In addition, promoting the use of market assessment data can be a good way for an organisation to showcase its due diligence and as such access additional sources of institutional funding.

For more information: Minimum Standard for Market Analysis: http://www.cashlearning.org/resources/library/351-minimum-standard-for-market-analysis-misma

click to hide/show revision2
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How do I decide when should I implement a market assessment?

Although the terms are often mistakenly used interchangeably, there is a different between market assessment and market analysis:

Market assessment is the process of collecting market-related data to understand the key features and characteristics of a market system, or the impact a disaster could have on the market system.

Market analysis refers to the process of understanding the key features and characteristics of a market system based on the data collected during the assessment.

Together, they represent an integral part of programme design for any response delivered, through either cash transfers or in-kind. Unless humanitarian responses are designed with a good understanding of key market systems, there is a risk that they may damage livelihoods, jobs, and businesses and undermine livelihood rehabilitation, which can in turn prolong the community’s dependence on outside assistance. Responses should ‘do no harm’ to consumers and markets by being market aware, and should ideally make use of local market systems when and where they are functional. To do so, market analysis should be captured in any project design, not just potential cash transfer programmes. What will vary from one project to another is the depth of the analysis as a light touch analysis and therefore a rapid assessment may suffice.

The inclusion of market analysis after a market assessment presents a great opportunity to improve the efficiency and effectiveness of humanitarian responses. Market analysis should allow for a better understanding of how people use and access markets, and ultimately a better understanding of how they meet their basic needs. This linkage is critical; in an emergency setting the collection and use of market data should not be disconnected from crisis affected communities. Neither should the analysis ignore the capacities, needs and constraints faced by the various inter-dependent market actors involved in the lives and livelihoods of the affected households. Market actors are not singular entities acting in isolation, but rather they are part of a wider system of governing bodies, formal and informal structures, gender and cultural norms, rules, and policies that also require some understanding. The main users of market assessment and analysis are country office teams. The information and analysis can be utilised to inform programme decisions related to the relevance of supporting the local market before or after a crisis, and modality choice. Market information can also be used for the following purposes, which can have direct or indirect impacts on decisions related to changes in programming:

• Pre-crisis: improve agency preparedness and support contingency planning exercises.

• Pre-crisis: trigger early action by providing refined market related monitoring and early warning indicators that can be followed and integrated into an Early Warning System.

• Pre-crisis: mitigate the impact of a predicted crisis and help build resilience by identifying which area(s) of the market may be affected, how it will be affected and by strengthening it prior to the crisis. This can include strengthening market actors and market access so that the market can better withstand shocks.

• Post-crisis: promote recovery by identifying which area(s) of the markets have been affected and how they can be supported to promote recovery and/or be in a position to use the local market to deliver the response.

• Assess the level of market and infrastructure functionality to determine the most appropriate delivery modality.

• Limit the risk of interventions causing a negative effect on local markets.

• Build organisation staff and partners’ capacity in market analysis and change the general attitude to be more favourable toward market-based programming (Juillard, H., 2016. Revised Pre-Crisis Market Analysis (PCMA). New York: International Rescue Committee). This can be important for increasing the consideration of markets in future programming.

In addition, promoting the use of market assessment data can be a good way for an organisation to showcase its due diligence and as such access additional sources of institutional funding.

For more information: Minimum Standard for Market Analysis: http://www.cashlearning.org/resources/library/351-minimum-standard-for-market-analysis-misma

click to hide/show revision3
None

How do I decide when should I implement a market assessment?

#HowTos

This is a question that I've been asked in the field so I wanted to share it with everyone on KnowledgePoint

Although the terms are often mistakenly used interchangeably, there is a different between market assessment and market analysis:

Market assessment is the process of collecting market-related data to understand the key features and characteristics of a market system, or the impact a disaster could have on the market system.

Market analysis refers to the process of understanding the key features and characteristics of a market system based on the data collected during the assessment.

Together, they represent an integral part of programme design for any response delivered, through either cash transfers or in-kind. Unless humanitarian responses are designed with a good understanding of key market systems, there is a risk that they may damage livelihoods, jobs, and businesses and undermine livelihood rehabilitation, which can in turn prolong the community’s dependence on outside assistance. Responses should ‘do no harm’ to consumers and markets by being market aware, and should ideally make use of local market systems when and where they are functional. To do so, market analysis should be captured in any project design, not just potential cash transfer programmes. What will vary from one project to another is the depth of the analysis as a light touch analysis and therefore a rapid assessment may suffice.

The inclusion of market analysis after a market assessment presents a great opportunity to improve the efficiency and effectiveness of humanitarian responses. Market analysis should allow for a better understanding of how people use and access markets, and ultimately a better understanding of how they meet their basic needs. This linkage is critical; in an emergency setting the collection and use of market data should not be disconnected from crisis affected communities. Neither should the analysis ignore the capacities, needs and constraints faced by the various inter-dependent market actors involved in the lives and livelihoods of the affected households. Market actors are not singular entities acting in isolation, but rather they are part of a wider system of governing bodies, formal and informal structures, gender and cultural norms, rules, and policies that also require some understanding. The main users of market assessment and analysis are country office teams. The information and analysis can be utilised to inform programme decisions related to the relevance of supporting the local market before or after a crisis, and modality choice. Market information can also be used for the following purposes, which can have direct or indirect impacts on decisions related to changes in programming:

• Pre-crisis: improve agency preparedness and support contingency planning exercises.

• Pre-crisis: trigger early action by providing refined market related monitoring and early warning indicators that can be followed and integrated into an Early Warning System.

• Pre-crisis: mitigate the impact of a predicted crisis and help build resilience by identifying which area(s) of the market may be affected, how it will be affected and by strengthening it prior to the crisis. This can include strengthening market actors and market access so that the market can better withstand shocks.

• Post-crisis: promote recovery by identifying which area(s) of the markets have been affected and how they can be supported to promote recovery and/or be in a position to use the local market to deliver the response.

• Assess the level of market and infrastructure functionality to determine the most appropriate delivery modality.

• Limit the risk of interventions causing a negative effect on local markets.

• Build organisation staff and partners’ capacity in market analysis and change the general attitude to be more favourable toward market-based programming (Juillard, H., 2016. Revised Pre-Crisis Market Analysis (PCMA). New York: International Rescue Committee). This can be important for increasing the consideration of markets in future programming.

In addition, promoting the use of market assessment data can be a good way for an organisation to showcase its due diligence and as such access additional sources of institutional funding.

For more information: Minimum Standard for Market Analysis: http://www.cashlearning.org/resources/library/351-minimum-standard-for-market-analysis-misma http://www.cashlearning.org/resources/library/351-minimum-standard-for-market-analysis-misma