The Market Systems Diagnostic is an adaptable methodology designed to analyse changes in market structures and enterprise behaviours to understand how and whether a market system is changing to become more inclusive, competitive and resilient.
The results of the diagnostic help inform a programme’s market systems strategy and monitor the effectiveness of programme interventions towards facilitating systemic change.
The diagnostic starts by prioritising the most relevant determinants of market system health for a particular context. Using qualitative interviews and secondary information, variables are then selected for each of the determinants, as well as the corresponding indicators collected through secondary and enterprise survey data. Data is collected through surveys of enterprises that assess their diverse market functions e.g. use of business development services, financial services, market intelligence etc. The enterprise data is then analysed to identify correlations and predictors to measure patterns of change within a market system. The diagnostic is conducted at different times over the life of a programme (e.g. three times over a five-year project). The results are shared with stakeholders and policymakers so they can better understand the key factors influencing a market systems performance.
The tool can be used by a range of practitioners but has, as of yet, only been deployed in a few contexts.