Transforming Market Systems

Background Narrative

The Transforming Market Systems (TMS) activity fosters competitive, resilient, and inclusive market systems that provide increased economic opportunities that incorporate women, youth, ethnic minorities, people with disabilities, the poor, and other marginalized groups who are often excluded—or even exploited—by traditional market systems.

  • Identify the root causes of the vicious cycles that marginalize people and companies and contribute to low levels of economic growth.
  • Work through key leverage points to generate new, virtuous ways of doing business and expanding economic opportunities.
  • Facilitate processes without creating distortions or dependencies, consolidating sustainable local platforms for broad-based, long-term economic growth and self-reliance.
  • Take a facilitative approach to the activity’s inception phase, whereby local stakeholders and organizations are part of the analysis and prioritization processes.
  • Build off existing knowledge and studies and make judicious use of resources when investing in primary data collection to complement, not duplicate, findings of existing studies and to provide optimal results from the inception phase.
  • Ensure that the formative analyses and inception phase stay true to the core mission of the activity to incorporate vulnerable persons into economic opportunities through inclusion, collaboration, and learning.
  • Enhanced business enabling environment
  • Increased market system resilience
  • Increased access to new, growing, and diverse markets
  • Enhanced value chain productivity
  • Improved awareness of bias and positive portrayal of marginalized groups
  • Improved awareness of the business case for social inclusion
  • Increased implementation of inclusive rules and norms in institutions



Integrating the 5Rs Framework into the Transforming Market System (TMS) Activity Design, Implementation and Monitoring, Evaluation, and Learning in Honduras

This publication was originally published by USAID Learning Lab. It was produced in collaboration with Dexis Consulting Group and USAID/Honduras.  This case story …

Funder: USAID
Contact: Ricardo Blanco at