3.2 Market Analysis

As a rule of thumb, CBI can be implemented in locations where:

  • markets are functional and
  • the affected population has access to these markets.

Ideally, a pre-crisis market analysis has been carried out by the country office prior to the emergency. Information from this analysis can be used as a baseline to compare the results of the post-crisis assessment.

Specific impacts of the emergency on market functionality are determined through a post-crisis market analysis. This should be the first step in the string of assessments preceding a cash intervention.

The country office could conduct an analysis of a market place (in specific geographies identified for operation) or market systems (broader structures, which include market places as well as actors and the enabling environment). Market systems analysis is particularly useful when identifying market support interventions.

Market analysis should answer questions related to:

  • The capacity of markets and market systems to cover the volume and diversity of needs of the population during the crisis;
  • People’s access to these markets during time of the crisis;
  • The impact of CARE’s intended humanitarian response on markets and people’s access to markets;
  • The delivery modality to be chosen for the response.

Markets can be both a means to achieve desired short-term humanitarian goals, and a way to improve longer‐term access to basic needs and livelihoods so that communities can better withstand shocks. As a result market analysis can also be used to answer questions related to:

  • The appropriateness of ensuring the recovery of the market systems in emergency settings and supporting the increase of people’s access to the market following the crisis;
  • The relevance of disaster risk reduction measures prior to the identified crisis to increase people’s access to the market systems or to protect/strengthen the market systems to decrease vulnerability to shocks.

Every market analysis should meet five minimum requirements:

  1. The scope and depth of the market assessment enable appropriate programme decisions and are based on identified information needs.
  2. Market analysis data informs key programme‐related decisions and contributes to the selection of appropriate modalities to achieve programme objectives whilst doing no harm.
  3. Collection of data is undertaken by competent and knowledgeable teams.
  4. Data collection systems, procedures and information sources utilized in the market assessment are appropriate and of sufficient quality to allow for the capturing of the dynamic nature of markets.
  5. Monitoring activities provide a check against initial assessment findings and enable decision‐making for potential adaptation of interventions.