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Transforming Market Systems Activity (TMS)

About the Project

A market system is defined as “a dynamic space—incorporating resources, roles, relationships, rules, and results—in which private and public actors collaborate, coordinate, and compete for the production, distribution, and consumption of goods and services.”

In Honduras, the USAID-funded Transforming Market Systems Activity (TMS) seeks to understand, diagnose, and address complex market behaviors and relationships that contribute to inequality and lack of economic growth. Overall, the activity seeks to sustainably increase business sales and create jobs with a total projected investment of $49.5 million from 2018 to 2023.

LINC is working with ACDI/VOCA (prime) and local partners, including the National Autonomous University of Honduras (UNAH), to develop market systems that are more competitive, resilient, and inclusive. Across several different economic sectors, we are piloting and implementing solutions that use a systems perspective to development. This approach includes identifying potential leverage points among actors in selected market systems and enabling those actors to be the drivers of change.

Transforming Market Systems

Through highly-participatory and locally-led efforts, we expect to achieve results that are both, more effective and sustainable.

Conducting a Structural Factor Analysis

In 2020, the TMS team conducted an analysis of the Honduran market system to better understand the Honduran economy, and to identify and diagnose the drivers and inhibitors of inclusive economic growth in the country.

The TMS team identified 43 factors that influence the development of market systems in Honduras. This was achieved utilizing a novel, and highly promising, analytical method for development programs that seek to promote systems change, called Structural Factor Analysis.

In the presentation below, members of the TMS team and representatives from local partners, like the Universidad Nacional Autónoma de Honduras (UNAH), explain the steps to conduct a Structural Factor Analysis and share insights into the Honduran market system.

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