The humanitarian development nexus in action: A review and mapping of market-led approaches in forced displacement contexts

This report provides insights and lessons learned on the implementation of market-based approaches in displacement contexts.

Recognizing the importance of identifying a more durable solution to the displacement crisis, practitioners are increasingly using market-oriented approaches to support livelihoods and economic recovery. The ILO and UNHCR partnership through their jointly designed “Approach to Inclusive Market Systems for Refugees and Host Communities” (AIMS) and through the multi-agency PROSPECTS Partnership, implemented in countries in East and North Africa and in the Arab States, has been part of the emerging work on developing and testing market-based approaches in displacement contexts.

Through this research, the ILO and UNHCR teams set out to better understand the implications and impact at the intersection or nexus of humanitarian support and market-based interventions for development and livelihoods.

Based on the literature review and scoping, as well as in-depth research on eight selected case studies, the study presents an integrated framework to categorize and analyse market-based approaches in forced displacement settings. This included asking questions about what we could learn from implementation to advance the understanding on how the market based approaches can constitute valid and effective responses in forced displacement settings. It was done with a view to help practitioners, governments and donors plan and implement effective market-based refugee and host community livelihood strategies.