Market Systems Development (MSD): Sustainable Markets and Household Resilience

Market Systems Development (MSD) is one of Caritas Switzerland's core approaches to achieving sustainable poverty reduction and resilience. Rather than delivering temporary solutions, MSD strengthens the systems that enable people, businesses and institutions to participate in inclusive, resilient and competitive markets. By working with market actors, governments, civil society and communities, Caritas Switzerland helps create lasting changes that continue long after individual projects have ended. 

What is Market Systems Development (MSD)? 

Market Systems Development is an approach that addresses the underlying causes of market underperformance instead of only treating their symptoms. It focuses on improving how markets function so that poor and vulnerable people – including women, youth, displaced populations and smallholder producers – can access opportunities, services and decent work. MSD facilitates systemic change by strengthening relationships, incentives, capacitiesand supporting functions within market systems. 

How does Caritas Switzerland apply MSD? 

Caritas Switzerland combines humanitarian, development and peacebuilding perspectives to facilitate inclusive market systems in fragile and development contexts. Our approach includes: 

• Conducting participatory market systems analyses. 
• Identifying root causes of market constraints and opportunities. 
• Facilitating partnerships between private sector, public institutions, and civil society. 
• Strengthening local market actors rather than substituting them. 
• Promoting adaptive management, learning and evidence-based decision making. 
• Integrating economic inclusion, climate resilience, gender equality and social cohesion into market interventions. 

How does Caritas Switzerland create systemic change? 

Caritas Switzerland acts as a facilitator rather than a direct market actor. We work with businesses, producer organizations, financial service providers, government agencies and local partners to address market constraints and unlock opportunities for sustainable growth. Our interventions seek to catalyse changes that continue to benefit market actors after project support has ended. 

What makes Caritas Switzerland's MSD approach distinctive? 

Our MSD work is characterized by: 

• Strong integration with humanitarian action and the Humanitarian–Development–Peace Nexus. 
• A focus on inclusion of vulnerable and marginalized populations. 
• Collaboration with private sector actors to create shared value. 
• Adaptive management informed by continuous learning and market monitoring. 
• Long-term sustainability through locally owned market solutions. 

Caritas Switzerland's Approach to Sustainable Market Systems

Caritas Switzerland applies MSD across sectors including agriculture, food systems, financial inclusion, vocational skills, employment, enterprise development and climate-resilient livelihoods. We combine facilitation, strategic partnerships and systems thinking to strengthen markets so they deliver inclusive and sustainable outcomes. 

Further Information and Resources on Market Systems Development (MSD)

• Caritas Switzerland Market Systems Development publications

• White Paper: Integrating the Market Systems Development and Graduation Approaches

• Knowledge and Quality Management (KQM) in International Cooperation

Our MSD Experts

Frequently Asked Questions (FAQ) about Market Systems Development

Header image: Cambodia, 2025, project «Nurture – Nurturing Climate Resilience in Cambodia» © Nicolas Honoré