Building Resilience through Market-Based Solutions in Fragile and Conflict-Affected Settings

Building Resilience through Market-Based Solutions in Fragile and Conflict-Affected Settings

Author(s)

Mercy Corps
Report

Abstract

In fragile and conflict-affected settings (FCAS), where climate and conflict shocks increasingly converge, market systems are often the backbone of how communities survive, adapt and recover. Even when disrupted by violence or climate-related disasters, markets rarely collapse entirely; they continue to shape access to goods, services and livelihoods. When humanitarian and development actors invest in strengthening these systems, they can meet urgent needs more effectively, expand local economic opportunities and build resilience that reduces long-term aid dependency. 

This paper sets out the case for prioritising market-based programming in FCAS, including the value-for-money advantages in such approaches. It introduces a practical conceptual model, illustrates how different market-driven interventions can be applied across diverse contexts and programme objectives, and identifies the conditions required to achieve both immediate impact and lasting change.