Introduction to Market-System Mapping

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Presentation transcript:

Introduction to Market-System Mapping MBRRR Training Session 3.1 We’re going to start a series of sessions related to markets. So before we get started, who can define what a market is?

Overview Exercise: Mapping the taxi market system What are market-system maps? How are the maps used? Establishing a baseline Elements of the market map Mapping the impact of the crisis

What are market-system maps A “market map” describes how a market system works for a particular good, crop or service Considers the entire market system, which includes the different actors, structures and rules that determine how goods are produced, exchanged and accessed by different people Emphasizes simple and visually engaging methods of communicating and sharing knowledge about complex systems Iterative process Iterative process – happens incrementally as you get more information. Start with preliminary map of the market system – based on whatever knowledge the team already has (own knowledge, secondary data) Expect to draw and re-draw maps several times as you go through the process and learn more about the system. Each map will be particular to the good or service, since market actors and systems may work differently for different commodities

How are market-system maps used? Market maps can be used to: Collate and represent info about market systems during the study Assist comparisons of pre-emergency (baseline) and emergency-affected situations Facilitate discussion, interpretation and analysis by the assessment team Communicate findings about market systems to others

Establishing a baseline Baseline – in a sudden-onset emergency, refers to the state of affairs before the crisis struck Description of the normal “situation before” and a best guess at the conditions that can be expected when the market system recovers Baseline should be comparable to emergency situation in time (season) and place (geography) Baseline may be difficult to define in slow-onset and complex emergencies Characteristic feature of the EMMA process is comparison between baseline and emergency-affected situations Seasonally – the baseline should describe the market system as it was during the same time of year as the emergency which is being addressed Geographically – baseline should describe the market system in the same location where the response is planned Slow-onset and complex – when did the emergency begin? What is considered “normal?” In some cases, baseline maps may already exist – often both baseline and emergency-affected will be done at the same time.

Elements of the market map Market chain Infrastructure, inputs and services Institutions, rules, norms and trends In EMMA model, market system map includes three main elements

Elements of the market map Each element is presented in a layer on the map

Mapping the market chain Central feature of the market-system map is a the market chain – Ask someone to remind us of the definition. Different market actors who exchange, buy and sell goods, as the goods move from primary producer to final consumer.

Mapping the market chain First step is to identify the businesses involved in the market chain. Who are the actors? Second step is to work out the linkages between them – who sells to whom, and how.

Mapping the market chain In this market system, there is only one market chain. In some cases, you may identify several interacting and competing market chains.

Mapping the market chain There may also be more than one identifiable group of final consumers. This level of detail is important, for example, if different target groups obtain their supplies – or market their goods – in ways that are significantly different from each other So far, we have information on the different market actors and how they relate to one another. Is this map conveying other information? What can we say about the scale, size or importance of different sources of supply and linkages to the target groups? These can be indicated by using different thickness of arrows and different sized boxes. In your groups, map out the market chain for the taxi market. Indicate who is your target population.

Mapping infrastructure, inputs and services Second step of market mapping is concerned with the various forms of infrastructure, inputs and services that support the system’s overall functioning Examples: Water and electricity utilities Input suppliers (seeds, livestock, fertilizers, etc) Market information services Financial services (credit, savings, insurance) Transport services and infrastructure Technical expertise and business advise Identify the most crucial elements of infrastructure and services, and link these to their users in the market system Aim is to get overall picture of the role that these services play in maintaining the market system’s efficiency and accessibility

Mapping infrastructure, inputs and services In your groups, map out the infrastructure, inputs and services for the taxi market. Link the services to their users.

Mapping the market environment Third step of market mapping is concerned with issues and trends that influence the market environment in which producers, traders and other market actors operate. These can be institutions, rules, norms and trends. Environment is shaped by various policies, regulations, social and business practices and trends – both formal and informal. Examples: Weak regulatory framework, e.g. contract-enforcement, land tenure systems Licensing regulations, formal taxes Corruption and bribery Informal taxes Gender, ethnic discrimination Different roles and responsibilities of men and women environmental trends – natural resource depletion, climate change Population movements Economic trends – global food prices Interested in most important issues that affect the functioning of the market before and after the crisis, even if little that humanitarian agencies can do to alter them. Understanding the constraints that the issues create should inform the selection and design of responses.

Mapping the market environment In your groups, map out the institutions, rules and norms for the taxi market.

Preliminary baseline map

Mapping the impact of the emergency What are possible impacts of emergencies on market systems? Once you have a preliminary draft baseline map, it is possible to start recording the impact of the crisis. Retain both baseline and emergency maps for comparisons. Quickly redraw your baseline map without any of the arrows or connecting lines. Now put in the symbols and draw new arrows and lines that reflect the impact of the emergency. Draw anything that has changed in red.

Mapping the impact of the emergency What are possible impacts of emergencies on market systems? Disappearance of some market actors Partial or complete disruption to some linkages or relationships in the chain Damage to infrastructure, blockage of services (e.g. credit) New relationships formed as coping strategies Change in relative importance of linkages (e.g. volumes) Introduction of new supply channels (e.g. aid) Once you have a preliminary draft baseline map, it is possible to start recording the impact of the crisis. Retain both baseline and emergency maps for comparisons. Quickly redraw your baseline map without any of the arrows or connecting lines. Now put in the symbols and draw new arrows and lines that reflect the impact of the emergency. Draw anything that has changed in red.

Mapping the impact of the emergency Impacts can be indicated on the map using simple visual flags to highlight various kinds of disruptions to market actors, functions and linkages. Retain both baseline and emergency maps for comparisons.

Mapping the impact of the emergency Impacts can be indicated on the map using simple visual flags to highlight various kinds of disruptions to market actors, functions and linkages.

Finalizing market-system maps Once you have draft baseline and post-emergency maps, identify the areas for which you need more information Interview market actors and key informants Where possible, quantify the linkages on the maps (number of actors, volumes, prices) Refine maps Very possible that during field work you will discover new actors, services, rules that you were not aware of. You might also find that some market actors previously identified are not important to

EMMA pre-crisis market map

EMMA post-crisis market map

Key Messages Market maps can be used to: Collate and represent information about market systems Assist comparisons of pre-emergency (baseline) and emergency-affected situations Facilitate discussion, interpretation and analysis by the assessment team Communicate findings about market systems to others.