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CONCEPTUAL FRAMEWORKS

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Market Systems Resilience: A Framework for Measurement

Vikāra was a lead author in the development of USAID’s Market Systems Resilience Framework, which is important when considering resiliency at the systems level. Vikāra is leading the testing of this framework in Kenya in two different geographies 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. How market systems evolve, including how they enhance or limit a community’s resilience is a foundational question on which this framework intends to shed light. USAID has defined resilience at the individual, household, community, and systems level; however, systems-level resilience has 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.

Vikāra is leading an effort for further development of learning products on Market Systems Resilience under USAID Feed the Future Market Systems and Partnerships Activity. 
 

 
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This USAID Framework document 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. Included in this resource is a tool for assessing market system resilience.

Practical Analytical Framework for Inclusive Entrepreneurial Market Systems

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Vikāra Institute supported Feed the Future Enabling Environment for Food Security (EEFS) project in the development of the Practical Analytical Framework for Inclusive Entrepreneurial Market Systems (IEMS) tool is a first step in building on existing enabling environment tools and market system theoretical frameworks to provide concrete guidance to USAID Missions, Operating Units, and implementing partners (IPs) on how to examine the underlying variables in systems that may present barriers or opportunities to private sector engagement efforts.