Library

CONCEPTUAL FRAMEWORKS

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Market Systems Resilience: A Framework for Measurement

Vikāra is the lead author of the 'Market Systems Resilience Framework' for USAID. Vikāra is currently leading the application of this framework in Kenya and Nepal.

 

Market systems resilience addresses the capacity of a market system to absorb, adapt, or transform in the face of shocks and stresses such as food price volatility, drought, locusts, and COVID-19. By understanding the broader economic, political, socio-cultural, and environmental systems in which markets operate, markets can evolve to effectively allocate resources and support the community’s ability to remain resilient in the face of shocks and stresses. USAID has defined resilience at the individual, household, and community level; however, until now, systems-level resilience had yet to be defined. The framework builds on an understanding of markets as complex adaptive systems and draws on institutional, behavioral, and evolutionary economics research.
 

 
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The Market Systems Resilience Framework focuses on resilience at the systems level. It looks at markets as complex adaptive systems in order to better understand how market systems respond to shocks and stresses. It then explores the characteristics of market systems resilience and proposes a theory of change for how to strengthen market system resilience capacities.

Inclusive Entrepreneurial Eco-Systems Framework

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Vikāra Institute co-developed the 'Practical Analytical Framework for Inclusive Entrepreneurial Market Systems' to build on existing enabling environment tools and market system theoretical frameworks to provide concrete guidance on how to examine the underlying variables in systems that may present barriers or opportunities to private sector entrepreneurial engagement efforts.