MSD Hub editor's note (Michael Field, Senior Systems Specialist, Vikāra Institute):
The Author outlines some important lessons that have emerged in humanitarian and MSD practitioner communities of practice over the last few years. Of particular importance is that systems thinking lenses can be effective at bridging the gap between humanitarian response and longer-term development. Historically, practitioners in these development domains perceived each other as having little interconnectivity or interdependence, but as climate change and other forces have ramped up stressors and shocks around the world, it has become increasingly clear that effective management of risks associated with shocks and stresses is an essential element of good MSD approaches. Additionally, any humanitarian response effort should focus on providing the needed resources in ways the can lead to weathering shocks and stresses in ways that improves the likelihood recovery and longer-term inclusive development. The author provides details around how Caritas thinks about this nexus and how they are about to apply their thinking in an Ukrainian project. As the authors says at the end, let’s continue this important conversation at MSS2024.
Caritas Switzerland has been actively supporting Ukraine since Russian’s invasion of Ukraine, collaborating with various partners both domestically and abroad to deliver timely humanitarian aid. Switzerland has also demonstrated solidarity by welcoming over 80,000 Ukrainian refugees under the special "S Protection Status," which grants refugees the right to live and work in Switzerland. Several European nations have implemented similar programs to alleviate the hardships endured by the Ukrainian people as the war ravages on across the country.
While Caritas Switzerland continue to provide humanitarian efforts within Ukraine, the organization is simultaneously exploring potential development initiatives as making the shift from response to recovery through evidence-based development initiatives. Despite the challenges the war brings, many of Ukraine’s industries remain operational in the west and at critical stages in the east. Although the business sector has faced significant disruptions, the Ukrainian government, along with international actors, has implemented measures to ensure business continuity. For instance, as of early 2023, about 700 Ukrainian companies have relocated their operations to the west, taking advantage of the relative safety in these regions. This resilience offers opportunities for post-war recovery that Caritas is closely monitoring and preparing for.
Furthermore, the ongoing war presents a significant challenge for development initiatives. Caritas Switzerland’s REMARKET Project, designed in 2024 and currently up and running with our partners Caritas Ukraine and Caritas Spes, aims to support Ukraine’s recovery through a dual strategy using the Triple HDP Nexus and Market Systems Development (MSD) Approaches. One of the key questions we are investigating is how to effectively transition from emergency response to sustainable economic development as the country’s situation evolves. We call this the “pendulum swing”—balancing the shift from short-term, direct assistance to long-term, market-based solutions.
Through our technical design we concluded several factors that will help us move or rapidly shift the pendulum in the opposite direction. Some of the key factors for consideration are:
Stabilization of Frontline Zones: A ceasefire or considerable reduction in attacks, especially in heavily affected eastern regions, would allow for more stable business environments. This shift would provide an opportunity to move away from immediate humanitarian aid toward longer-term economic recovery strategies.
Government Policy Shifts: A clear and strong commitment from the Ukrainian government to market reforms, including the encouragement of entrepreneurship, investment in infrastructure, and partnerships with the private sector, would lay the foundation for MSD.
Transition to Long-Term Recovery Programs: As international donors, including USAID, SDC, and the EU, shift their focus from emergency relief to long-term recovery and sustainable development, programmatic efforts would naturally transition toward MSD to ensure that Ukraine's markets can drive sustained economic growth and resilience post-war.
International Investment and Trade: As international investors and development finance institutions re-engage with Ukraine’s economic recovery; more funding could be directed toward building and improving market systems rather than short-term humanitarian efforts. For instance, focus areas could include agricultural value chains, manufacturing, or green tech innovation.
Phase 1 of the REMARKET Project, which we call “Planting the Seeds of Change,” focuses on laying the groundwork for future market engagements through research, pilot interventions with market actors, and partnership building. This involves direct interventions in response to immediate needs, such as providing support for IDPs and local enterprises while ensuring that future market linkages are considered. In Phase 2, “Cultivating Growth and Resilience,” we anticipate fully transitioning into the MSD approach, ensuring that market systems are inclusive and resilient enough to drive sustainable economic recovery. This framework, particularly in Ukraine’s war-affected areas, offers critical insights into how market systems can be strengthened in crisis settings and transformed for long-term stability.
The integration of the Triple HDP Nexus approach—combining humanitarian, development, and peacebuilding efforts—adds an additional layer of complexity and importance to the project. Can market-based interventions, alongside peacebuilding efforts, create economic opportunities for communities struggling with the aftermath of war? The REMARKET Project aims to provide answers, targeting communities such as IDPs, returnees, and local small and medium enterprises (SMEs). By aligning humanitarian support with market-based activities, Caritas is working to ensure that local communities are not only stabilized but can thrive in the future, reducing their dependency on aid.
Another aspect of REMARKET’s design is the potential role of private sector partnerships in scaling impact. By working with local vocational institutions, business incubators, and financial institutions, the project aims to enhance market access and empower local actors to lead economic recovery. We hope to test and scale sustainable business models, using MSD as the driving force, and generate evidence on the effectiveness of phased interventions that start with emergency aid and move towards market systems facilitation.
For development professionals, the REMARKET Project underscores the importance of program adaptability in crisis settings and the critical role of phased interventions. We are actively contributing to the global MSD conversation, pushing the boundaries of how to implement and scale market systems in volatile environments. By testing how quickly a project can move between direct aid and facilitative support, we aim to provide key learnings for future projects operating in similar contexts.
Let’s continue the conversation—Caritas Switzerland will have a number of staff present at this year’s MSD Symposium. If you have any questions or comments regarding the REMARKET Project or any other MSD projects in our countries of operation, please do not hesitate to approach us and ask.
About the Author: Maciej Chmielewski currently serves as the Senior Income and Livelihoods Advisor and Knowledge Manager for Caritas Switzerland in Lucerne, Switzerland. In this role, he leads the Income portfolio across all Caritas-supported countries. His focus is on tailoring the organization’s approaches to meet the specific needs of participants and their respective countries. With over 15 years of experience in the international development sector, Maciej has worked in theory, practice, and policy development on various themes and initiatives for donors including USAID, SDC, FCDO, and UNICEF.
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