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An internal review of the quality and use of ILO market system and value chain analyses.

Market systems development (MSD) is an analysis-driven approach. As such, MSD programmes need to be guided by a sound understanding of how
market systems are failing, the underlying reasons why they do, and what can be done to improve their performance for disadvantaged groups.

Market System Analyses (MSAs) are in danger of being seen as an 'end in themselves'. Almost two-thirds (64 per cent) of MSAs and VCAs were either not used or used to a limited extent to inform intervention design. Only four reports (24 per cent) could be considered to have a high degree of use – where the majority of the interventions were based on the findings of the analysis.

Based on the review findings, the paper describes a number of recommendations to improve future practice.