Access to Markets
Access to functioning, resilient markets strengthens household resilience by increasing asset accumulation and livelihood diversification.
Markets can strengthen resilience by providing sales opportunities and increasing access to inputs, information, and technology that enable asset accumulation and income diversification. There is evidence in some contexts that access to markets has contributed to improved household resilience. But to provide these benefits, markets must also function well and be adaptable to currency and other shocks.
Markets create opportunities to increase income through sales, quality input access, production incentives, and income diversification. Access to markets also increases access to financial services and better risk-reducing information and technology.
Markets can provide many opportunities to increase incomes and build resilience. However, markets themselves are also vulnerable to shocks that can have significant negative impacts on households. To provide reliable goods, services, and employment, markets must be able to withstand and adapt to shocks.
In the Sahel, access to markets was associated with households maintaining food security and recovering from shocks. In Burma, access to markets helped increase production and incomes, but households remained vulnerable to shocks. A better understanding of how local markets are influenced by global markets and existing social structures is needed.
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