Market systems analysis

Introduction

As part of its Integrated Livelihood Promotion Plan, the UN Refugee Agency UNHCR is partnering with the ILO to implement market systems analyses in selected countries. The objective of the ILO-UNHCR cooperation is to integrate the results and recommendations of an ILO market systems analysis into UNHCR livelihoods programming in order to inform and strengthen the impact and sustainability of UNHCR livelihoods interventions for refugees and host communities. The strategic goal of livelihoods programming in UNHCR is to enable the self-reliance of refugees.

The Global Strategy for Livelihoods (2014-2018) sets out specific results that the organization aims to achieve in order to effectively support and protect the livelihoods of refugees, and to enable their self-reliance. With a view to operationalizing the Global Strategy for Livelihoods, the UNHCR recently updated the Operational Guidelines on the Minimum Criteria for Livelihoods Programming (UNHCR/OG/2015/4), which emphasize data-driven and market-based approaches to improve livelihoods programmes across the globe. One of the requirements stipulates that UNHCR Operations conduct a socio-economic assessment and context analysis as well as a livelihoods market analysis in order to develop a context-specific livelihoods strategy to thoroughly design, modify and target livelihoods interventions.

So far, a total of 15 market system analyses has been conducted with further analyses following. The reports and summaries (fact sheets) are available for download. Each report includes three components:
  1. A socio-economic assessment to collect information about the characteristics and background of the target group, the socio-economic environment in which they currently make a living, as well as the legal environment and available support functions for refugees.
  2. A market assessment with in-depth analysis of value chains with potential for inclusive growth. The market assessment identifies value chains with high potential that will then be analysed further. The purpose of the value chain analysis is to determine how the identified value chain(s) can be developed to better integrate refugees and host communities
  3. Recommendations for market-based livelihoods strategies with practical action points.