Document Actions
Integrating markets and livelihood analysis
Integrating markets and livelihoods analysis
A detailed description of just what is sold to whom and when determines much about the advantage or disadvantage that different households hold in relation to the market. Understanding when households sell their goods, and when they buy gives us perspective on who wins and who loses in the market game. FEG explores these networks in detail through its baseline livelihoods analyses.
How traders act as intermediaries between market levels (local, regional, and urban) and profit from the margins generated by the changing balance between supply and demand provides guidance on where local households might stand to gain. FEG works with experts in market chain analysis where needed to help flesh out important links between rural and urban markets. See, in particular, the MLVP work that FEG and Chemonics, International conducted in rural Ethiopia for an example of this.
Reciprocal exchange between richer and poorer households for goods, labour and services, highlight relationships that have as much of a social basis as an economic one. In-depth investigation at the level of wealth breakdowns and livelihood strategy quantification provide insight into these relationships.
FEG takes up and adapts market analysis tools as necessary given the circumstances. For instance, if it seems from the household enquiry that markets are strong and people get good prices in both good and bad years then we might be satisfied with understanding only the flow of commodities into and out of an area. However, if we find out that crop prices are extremely low in good production years, and this seems to be a major factor in keeping people poor then it becomes necessary to investigate where in the marketing chain, the biggest bottlenecks are so that recommended interventions result in improved access to markets and better prices for food and inputs.
