the supply chain for cash and voucher programming supply chain for cash and voucher programming 15th...
TRANSCRIPT
Image courtesy of: ACF, 2011
The Supply Chain for Cash and Voucher Programming
15th May 2014, Paris
Setting the Scene
Case Studies: Changing the Business Process
Coffee Break
Jargon Busting
Case Studies: Insecure Environments
Counting the Cost
Lunch Break
Donors and the Compliance Agenda
Revisiting our Role – Logistics and Accountability
Coffee Break
Skills Gap: A Practical Discussion
Setting our Agenda
WFP; image courtesy of http://blogs.ec.europa.eu/
Why are we here?
Supply Chain for In Kind
Supply Chain for Cash & Vouchers
Cash / Voucher Processes, Technology
Image Courtesy of Oxfam, Ethiopia, 2013; Water Voucher Programme
Why should Logistics be bothered?
Why should Logistics be bothered?
• Cash is here to stay
• There is a Supply Chain to manage
• Risks are different, and complex
• Logistics can now contribute directly to programme outcomes
Cost-Centric Sourcing Strategy
Transactional cost-efficiency, Consolidated procurement, Large suppliers,
Internal KPIs,
Outside markets
Outcome-Centric Sourcing Strategy
2km 5km 10km 20km 50km
Beneficiary-centric,
Starts at geographically closest market,
Capacity driven sourcing,
Market Strengthening simultaneous to Sourcing
Procurement linked to Programme outcomes
CTP15%
c. 2019?c. 2014c. 2009
In Kind CTP
What does Market Strengthening and Supply Chain Assurance look like?
Fuel support to transporters
Large scale infrastructure rehab.
/ construction
Road rehabilitation
Vendor scale up support – transport, storage,
cashflow
Vendor training
Why wait?
What could we do before an emergency to
help markets recover even faster...?
Our Survey Says…
Cash and Markets in Logistics Survey April 2014
What are Logisticians already doing in support of CTP?
What do they feel most / least confident in doing?
What are the challenges and gaps?
What do they need to better support CTP?
87Responses
Experiences
from 54Countries
24Organisations
Where in the world…
Logistics support to C&V for which commodities?
0 5 10 15 20 25 30 35
Shelter
Fuel
Water
Household
Hygiene
Food
Which Cash and Markets activities did Logisticians have experience of?
….all 22 of them!
Which Cash and Markets activities did the most respondents have experience of?
• Market/Supply Baseline
Preparedness
• Market Monitoring
• Project Design Input
• Proposal Development
• Local capacity partner
assessments
• Budget preparation
• Record Keeping and
compliance
• Market/Supply Support
Activities
• Assessing suppliers for CTP
• Framework Contracts
• Assessing (market) infrastructure
• Coordination with other actor
• Managing Supplier
performance
• Security Risk Assessment
• Selecting suppliers
• Assessing markets after
emergency
• Cost Analysis
• Security Management
• Ready for payment stage
• Complaints handlings
• ConOps being revised
• Distribution of cash/vouchers
Which Cash and Markets activities did fewest respondents have experience of?
• Market/Supply Baseline Preparedness
• Market Monitoring
• Project Design Input
• Proposal Development
• Local capacity partner assessments
• Record Keeping and compliance
• CTP Complaints handling
• ConOps being revised
• Market/Supply Support Activities
• Assessing suppliers before
project
• Selecting suppliers
• Framework Contracts
• Assessing infrastructure
• Coordination with other actor
• CTP Security Risk Assessment
• Assessing markets after
emergency
• Cost Ben Analysis
• Security Management
• Managing Supplier
performance
• Ready for payment stage
• Distribution of cash/vouchers
• Budget preparation
Key Challenges What are the main challenges you are facing in supporting markets and cash based programmes?
Skills / Capacity / Experience
‘Whole SC’ for C&V
Small Vendor
Challenges
Lack of Clarity –Roles & Resp.
Insecurity, Remote Mgt,
Access
C&V Coordination
Concept / Change
Resistance
Rapid Setup
Process
Fraud
v
• Technology Management
• Resource Allocation
Market Assessments
• Beneficiary Preferences,
Practices
• Preparedness Market Data
• Value Proposition, VfM
• Donor Relations
• IK CTP IK
• Do no harm
• CTP commodity types
• Vendor proximity to
beneficiaries
• Market / Commodity
Monitoring
Other Challenges
What tools / guidelines are
Logisticians already using?
Global Logistics Community What are the gaps? What ideas do you have for what the Global Logistics Community could do?
Coordination (int and ext), Knowledge
Sharing
Service Providers (financial, telecoms)
Market Baselines,
Assessments
‘Joined up’ Design and Response Analysis
Harmonise Procedures
Training
Donor Relations
Risk, Security Advice
Comms, Influencing
GOAL Syria Vouchers Overview
15 May 2014
TIME LINE
Beginning of Syrian Crisis
March 2011
October 2012
GOAL started working in Syria
First Voucher Program was implemented
inside Syria
April 2013
May 2014
Programme
Type of vouchers HHsIndividual
personnumber of
voucherValue of vouchers
SYP
OFDA 1 NFI vouchers 11242 67452 168630 1000
OFDA 2
Wintarzetion Vouchers 12014 72084 240280 1000
Hygiene / cunsumblevouchers
12014 72084 84098 1000
Fuel vouchers 500 3000 7500 7500
Repair vouchers 500 3000 8523 7500
Irish Aid1 965 5790 101325 1000
DFID 10037 60222 240888 1000
Wintarzetion Vouchers 12000 72000 180000 1000
non sesonal vouchers 12000 72000 180000 1000
Fuel vouchers 500 3000 5000 7500
Repair vouchers 500 300016600 5000
5600 1000
Irish Aid2 unrestricted vouchers 1300 7800 19500 1000
ECHO unrestricted vouchers 1175 7050 17625 1000
VOUCHER PROGRMME ACTIVITIES
Security Features
• Vouchers then transported to field site.
• Voucher design kept secret until shortly before distribution
• Until they are assigned to a beneficiary, for a particular round, they hold no value. Shopkeepers are only informed (and shown a copy) of the voucher for a particular distribution and shopping period, shortly before.
• Shopping period time is restricted to a certain number of days per voucher distribution round
• Vouchers are assigned out to 1 beneficiary, and then scanned back in to PIMS when redeemed (this is after the shopkeepers redeem them). Voucher redemption can be traced.
Vouchers traced through Programme Management Information System (PIMS)
Logistics use barcode scanner to enter voucher into PIMS, in Antakya office.
Security Features in Detail: MICR
Risk Impact Mitigation 1 Mitigation 2
That the voucher
programme causes inflation
in local market due to surge
in purchases
Beneficiary and non-
beneficiaries have
reduced purchasing
power
1. Initial market assessment to determine if
market has capacity to scale up to meet
demand.
2. Regular Shop Price Monitoring
Comment: GOAL programme is not of
a large scale and therefore risk is
remote. Other market forces more
likely to.
That the shopkeeper
underestimate sales and
therefore run out of stock
Beneficiaries do not have
access to goods or that
lower stock leads to rise
in price
Shopkeepers given sufficient notice by GOAL
of the date and amount of expected sales
based on the purchasing power of vouchers
distributed. This allows shopkeepers to buy in
sufficient stock to meet demand.
2. GOAL pays shopkeepers quickly
(within 2 days of sales maximum) in
order to facilitate restocking by
shopkeepers who may have
limited/no credit lines with suppliers.
Contracted shops pay cash
to beneficiaries at a cut
price instead of the NFI
items GOAL prioritised (eg
$75 face value but shop
keeper only gives benefic.
$60)
Purchasing power of the
vouchers to the
beneficiary is reduced.
1. Terms of GOAL Shopkeeper Agreement
2. Spot check by GOAL monitoring team 3.
Relief committee members and GOAL have
visible presence in shops during the voucher
sales period
4. Select shops with a good reputation
1. Post distribution monitoring sample
of 10-15% of beneficiaries.
2. GOAL complaints mechanism
3. Removal of shops who abuse
(revise master list)
4. Reporting of shopkeepers who
abuse to the local council
5. Approved price list are advertised
outside the shop during Voucher sales
5. RC and GOAL Team physical
presence in shops during Voucher Fair
Contracted shops hike the
prices temporarily for the
voucher sales
Purchasing power of the
vouchers to the
beneficiary is reduced
1. Terms of GOAL Agreement
2. GOAL small price survey before sales.
3. GOAL Agreement with shopkeepers
defines that price cannot go up in the week
of the fair compared to pre Voucher prices.
Risk, Impact and Mitigation
Cont…
Counterfeit vouchers accepted
by the shopkeepers and they
seek to be paid by GOAL
GOAL is liable for more than
the original budgeted
amount. Angry shopkeepers.
Pre-numbered and unique (hologram) vouchers
printed in varying colours shipped in (not locally
printed). Format not available before the day of
the voucher fair.
Contracted shops given sample on the
first day of the voucher fair (not earlier).
Trader does not pay
shopkeepers but tries to
recoup full instructed payment
amount from GOAL.
GOAL is liable to
shopkeeper. Shopkeepers
cannot restock and loss of
trust in GOAL.
GOAL does not pay Trader who provides banking
service until payment to shopkeepers has been
confirmed by phone.
Also signed Payment Receipt provided by
Trader before payment.
Misappropriation of
funds by the Trader who is
contracted to facilitate cross
border payment by GOAL to
the shopkeepers
GOAL loss of funds 1. GOAL only makes payment to the trader when
Payment Receipt by shopkeepers are confirmed
2. GOAL maintains agreement directly with the
shopkeepers and GOAL redeems/ counts the
vouchers providing Voucher Redemption forms.
GOAL has a legally enforceable contract
in Turkey with the Trader and can pursue
through Turkish courts if necessary
(deterrent)
Monopoly by 1 shop or Cartel
by a few shops grouping
together to remove
competition by agreeing
higher prices for voucher fair
Due to insufficient
competition, beneficiaries
have little choice when
faced with higher than
normal prices. Reduced
purchase power.
1. Try to have at least 9 contracted shops and
choose those who sell different mix of 3 goods
categories so less incentive for price fixing on
same items.
2. GOAL
3. Contract with shops defines that price cannot
go up during 4 days of sales.
1. Post distribution monitoring sample of
15% of beneficiary HH’s.
2. GOAL complaints mechanism
3. Removal of shops who are caught/
identified
Shops substitute lower quality
goods for the voucher fair so
their margin increase
Beneficiaries get inferior
goods and less value from
voucher
‘1. Pre voucher prices assessment identifies price
per brand on major items.
‘2. GOAL staff presence during sales.
Risk, Impact and Mitigation
- Note we do not do any cash programming at the moment. The closest thing we have is unrestricted vouchers (though there are non-eligible items – baby formula, alcohol, cigarettes) – but these are only redeemable at GOAL-shops. So beneficiaries are not able to buy everything with them. (ie. they would not be able to access medical care, for eg.)
- A wider point that the development of the voucher programme is designed to have less impact on markets where goods are available, vs. food distribution, or NFI distribution which can lead to shopkeepers ceasing to stock certain items.
Challenges and learning for GOAL Syria
Cont…
• - Unrestricted vouchers are very popular – give beneficiaries autonomy over what they buy – can do so according to need
• - Some reports of beneficiaries selling vouchers (for less than the voucher value) to get cash to pay for items that cannot be bought with vouchers (i.e. for medical care). When this is reported (if it is a shopkeeper buying them) then we can begin disciplinary procedures, but it is more difficult if not selling to the shopkeepers
• - Vouchers do have the potential to drive down prices in other non-GOAL shops / cause shopkeepers within the programme to raise prices – this is monitored through price monitoring in both GOAL and non-GOAL shops, and for GOAL shops, GOAL staff discuss fair pricing with both shopkeepers and the Relief Committees.
•
Challenges and learning for GOAL Syria
Cash & VouchersWhy are we doing this?
36
ASSURE SUPPLY
37
TO ASSURE SUPPLY
WE HAVE TO
ENABLE SUPPLYEspecially at large scale in remote and volatile regions where the reliability of supply is not assured
WHAT IS KEY? 38
ENABLE THE SUPPLYAND ENABLE TRADE
• ENABLE THE RETAILERS
(Support to rebuild local market capacity and electronic cash or voucher payment systems)
• FACILITATE RECONSTRUCTION OF KEY INFRASTRUCTURE
(Special Operations for Ports, Roads, Rail, Bridges much like we do to support in-kind food assistance)
• INSTITUTIONAL CAPACITY BUILDING OF PUBLIC AND PRIVATE SECTOR
(Help develop systems and staff capacities)
39
ENABLE TRADE
40
TRANSFORMATIONAL
LOGISTICS
Achieving an economic objective by fulfilling our humanitarian mandate
and vice-versa
41
Cash and
Markets Forum
– Insecure
Environments
George Fenton – Director - Humanitarian
Operations Services Team (HOST)
Jonathan Spence – Global Logistics
Advisor
Case Study: Cash & Vouchers in Bekka Valley, Lebanon
Lebanon -
•$20m + programmes funded by WFP and UNHCR
•Chronic situation with protracted
conflict
•Tension between displaced Syrians
and host communities
•Combination of vouchers
and cash distribution to
Syrian refugees
• Keys to successful implementation
•Functioning markets
•Mature banking system
•Beneficiary and vendor openness
• Lack of Standard Operating Procedures
• No on-the job training/on-going support
• Verification and monitoring issues
• Unconditional cash programming posed significant context
related risks
Lebanon
Key Reflections
Syria
• No MoH system functioning
• IDPs in desperate need of medical assistance but even at
present, no/little income to access necessary services
• 300 private doctors with unstable incomes, aim to employ
them to work in clinics for IDPs
• Initial plan had been to hire doctors, set up clinics, supply
and deliver medicines and equipment
Case Study: Medical Voucher
programme in Northern Syria
Why did we change from In Kind to Vouchers?
Problems encountered
• Not registered as medical organisation –
procurement in Turkey not possible
• Insecurity and lack of access across border (Staff
and resources)
• Operational and Supply Chain risks and costs would
be reduced
• Doctors would have to leave private clinics to work
for WV – Not sustainable in long term
Current nature of Voucher programme
• Pilot areas to test modality
•Beneficiary selection focus on children
under 5, IDPs and vulnerable host
community members
•Assessments – IDP populations,
clinic capacities and pharmacy capacities
• Vendor Selection – Private registered GPs linked with
geographic location and audit of clinics and pharmacies
• Geographically appropriate choices for beneficiaries
•Electronic vouchers to provide access to free
consultation and treatment
Solutions found?
Current nature of Voucher programme
• Unique vouchers manufactured in Turkey
to reduce fraud risk
• Selection criteria to be expanded to include
other vulnerable groups if required
(e.g. pregnant women, elderly)
• Focus on mass support of verified clinics
so all can get treated irrespective of income,
but also giving freedom of choice
• High calibre and experienced local staff (health workers
and working in IDP camps)
• Mature supply chain (private doctors and medicines)
Solutions found?
Risks / Challenges / Lessons Learned
• Need for nuanced approach in insecure
environments
• No banking system
• Insufficient internal controls regarding
remote management
• No written SOPs or tested control
mechanisms
• Assessment and monitoring tools bespoke and designed
from scratch
•Insufficient supply chain analysis
• Expert staff from market analysis is necessity
How we will we improve?
Any Questions,
Comments, Reflections
welcomed
35
Examples from
Mali, the DR
Congo and Pakistan
Cash Transfer Programming in
Insecure Environments
44 countries
Mali
Democratic Republic of
Congo
Pakistan
Assessments and Analyses
• Needs Assessment
• Market Assessment
• Security Analysis
• Governance and Social
Dynamics Analysis
Delivery Mechanisms
• E-transfers/ e-vouchers
• Smart cards (debit, credit,
ATM, SQuid, etc.)
• Direct cash delivery
• Cheques
• Third party delivery (hawala,
remittance offices, MFIs, etc.)
MALICash Vouchers
• Context: 2012 -2013
emergency food needs –
political instability
• Targeted:
2,315 HHs (1st round)
1,312 HH (2nd round)
• Size and frequency:
USD $70/month x 3 mos.
(1st round)
USD $90/month x 2 mos.
(2nd round)
MALICash Vouchers
• Challenges:
– Basic infrastructure
– Sharia law for first six months
– New conflict Jan 2013 as Malian
and French militaries took control
of N. Mali
• Outcomes:
– 100% bought food
– 100% bought hygiene items
– 10% bought animal feed
Lessons Learned from Mali
From Haiti to Nepal
Electronic Voucher Assistance Program (ELEVATE)
DR of CONGOElectronic Cash Vouchers
• Context: Long-term conflict,
2013 recent fighting and
displacement, basic needs
• Targeted:
2,000 HHs total
(377 HHs first fair)
• Size and frequency:
USD $80/one-time
DR of CONGOElectronic Cash Vouchers
• Challenges:
– Basic infrastructure
– Displacement
– Distance between beneficiaries and
markets
– No functioning financial institutions
in the area making moving money
difficult
– No widespread public
communications systems
Lessons Learned from DR of Congo
PAKISTANCash for Work
• Context: 2010 massive
flooding
• Targeted:
27,085 HHs
– 19,917 two rounds of CFW
– 7,168 one round of CFW
• Size and frequency:
– Two rounds of CFW
– Cash Working Group set wages
– $74 per 21 days of work
PAKISTANCash for Work
• Challenges:
– Basic infrastructure (roads,
network)
– Tools
– Insecurity
– Culturally-appropriate work for
women
• Outcomes: Cash used for…
– Food and debt repayment
– Housing rehabilitation
– Healthcare
Lessons Learned from Pakistan
Similarities of CTP in Insecure Environments
• Assessments are critical
• Beneficiary Selection Challenges
– Transparency, neutrality
– Community Complaint Mechanism is important
• Vendor Selection Challenges
– Door-to-door, community meeting, public posting
– Transparency important for security
– In crises, vendors may also be considered beneficiaries
Similarities of CTP in Insecure Environments
• Delivery Mechanism Selection
– Delivery mechanism tailored to local context
– Time and cost (faster and safer, possibly more
expensive)
• Project monitoring
– Project monitoring more difficult in insecure contexts
– Community complaint mechanisms are important
– Diverse staffing is essential
THANK YOU
CaLP Presentation
A quick video to introduce you to the CaLP work
Who is the CaLP ?
Coming together to:
– Build capacity,
– Support action research,
– Share information on cashtransfers as an effective tool todeliver humanitarian assistance,
– Advocate for cash coordinationand preparedness
The Cash Learning Partnership
The CaLP believes that cash transfers and vouchers are tools that contribute to
making humanitarian preparedness and response more effective, meeting the diverse needs of affected populations,
while promoting recovery. The CaLP aims to promote appropriate, timely and quality cash and voucher programming.
Regional Reach
Action Against Hunger
Norwegian Refugee Council
Oxfam GB
British Red Cross
Save the Children
Steering Committee
member
Regional Focal Point (RFP)
Nairobi: East Africa RFP
Capacity Building Officer
Bangkok: Asia RFPDakar: West Africa RFP
Cash Focal Point Role:
• Coordination (e.g. TWG) & CoP• Gathering evidence & learning• Capacity building• Advocacy• Research & case studies
How can the CaLP help you?
• Guidance tools and document (online library:
http://www.cashlearning.org/resources/library )
• Training delivery and open training material
• Lead the CoP through a Dgroup
• In regions support coordination
• Following experiences in 2010/11 - 4 core research topics were identified for 2012/13
Recent CaLP research
Minimum Requirements
for Market Analysis
Emergencies
Fit for the futureFuture trends likely to affect
CTP and stakeholders and recommends to
prepare
CTP research gap analysis
E-transfers -(1) cost efficiency
comparison,(2) guidelines & (3)
principles and operational
standards for protecting
beneficiary privacy
Research Topics
CaLP will identify research topics in response to emerging changes and gaps in the CTP environment, and appropriate funding opportunities.
Advocacy
Advocacy focus areas
Cash coordination and leadership
Preparedness for delivery at scale
By working with:
Partners such as global clusters, the CaLP Community of Practice, UN
agencies (esp. OCHA) and through regional focal points
Actions and tools include:Policy and technical inputs, targeted awareness raising
through seminars and conferences and more
Cash Atlas
What is ERC?
• Consortium composed of Oxfam, Save the Children and Concern
• Looking at improving preparedness and responses in slow onset or predictive crises
How can ERC help you?
• Development of market baselines and marketanalysis in slow on set crisis
• Development of pre-crises market analysisguidance
• Established a sharing platform (Dgroup): Market in Crisis
v
OCTOBER 2013
Counting the Cost
CTP vs In Kind – the Value for Money and Cost efficiency debate
v
OCTOBER 2013
Value for Money: what is it? • Key debate arising from the financial crisis
• Accountability in the use of public funds
• Sits on 2 distinct legs: efficiency and effectiveness
• What is the difference between efficiency & effectiveness?
• Effectiveness: looking at impact
• Efficiency: looking at use of resources
How does it translate to Cash and Markets?
You are in Bangladesh looking at a shelter interventionfor a population of 500,000 affected by extreme flooding.Markets in the area have been affected but are alreadyrecovering.
The hidden costs to bring in the debate
In Kind• Storage
• Transport (agency & benef)
• State of roads
• Negative impact on the markets
• Time spent by beneficiaries queuing (and not engaging in livelihoods activities)
• HR for Distributions
• …
CTP• State of infrastructures
dvpt (banking and communication)
• Data base
• Training
• Inflation
• Costs from service providers
• …
Taking it forward • In the VfM debate, emphasise on effectiveness rather
than efficiency: our accountability also lies with our beneficiaries
• Don’t assume that ‘cheaper’ means ‘better value for money’
• What about risks? And costs of risks?
Is CTP risky? • Cash is not inherently more risky than in-kind assistance
« Due to the increased acceptance of cash-based responses, the tendency to provide cash transfers via small scale, closelymonitored interventions will likely give way to more and larger interventions that are monitored less closely, in line with current monitoring practices of in-kind assistance. As a result, it is inevitable that there will be more risks, for instance, with instances of diversion, security incidents and corruption. Yet, these risks are prevalent in crisis contexts and affect all forms of assistance. »- Fit for the Future, CaLP
Further reading• Foreign Policy article on cash transfers cost efficiency
http://www.foreignaffairs.com/articles/141214/christopher-blattman-and-paul-niehaus/show-them-the-money
• For cost efficiency of E transfer- CaLP research: http://www.cashlearning.org/resources/library/416-factors-affecting-the-cost-efficiency-of-electronic-transfers-in-humanitarian-programmes
• Value for money in international development: http://www.nef-consulting.co.uk/wp-content/uploads/Position-Paper-VfM-in-International-Development-Sept-2010.pdf
• On risk: CaLP Fit for the Future research:http://www.cashlearning.org/2012-2014/-fit-for-the-future
Save the Children International
Save the Children
Logistics
Cash Accountability
Save the Children International
QUESTION?
What role does Logistics play in
ensuring accountability in Cash
Transfer Programming?
Save the Children International
RACI• Responsible
• Accountable
• Supporting
• Informed
Save the Children International
‘Means of clarify roles and
responsibilities in a cross-
functional project or process’
Save the Children International
At this stage SCI has recognised 2 key
areas where Logistics will be accountable
1. Market Assessments
2. Decide Cash Payment Mechanism
Save the Children International
MARKET ASSESSMENTS
1. Knowledge of the market place
2. Can the proposed grant cover the purchase a basket of goods? (ie
Food Baskets)
3. Is the program likely to instigate inflation
4. CfW and cost of daily labour
5. Monitor the quality of the items
6. Price comparisons: local, regional and national markets
7. Inter agency coordination on price, availability and quality of
goods
Save the Children International
Decide Cash Payment Mechanism
1. Procurement Planning
1. This will determined depending on the program design
2. Direct Cash when implementing CfW
3. Direct Cash via 3rd Party
4. Vouchers with pre-selected vendors
5. Vouchers through 3rd Party
Save the Children International
Questions & Challenges
1. Capacity, skills and knowledge
2. Partnership, ownership and delivery mechanisms
1. Internal & External
3. Conflict of interests & corruption
4. Protection & Data Policy
From Harm to Home
95
Market Analysis in Emergencies
From Harm to Home
96
True or False?
• There is no need to analyze markets when we already have pre-positioned stock in warehouses.
• In an emergency there is barely time to asses the needs let alone the markets.
• Analyzing markets requires a sophisticated skill set and our organization does not have the capacity.
From Harm to Home
97
Market systems matter
Ensuring survival
• Providing essential items or services to meet basic needs
Protecting livelihoods
• Providing tools, agricultural inputs and services, or replacing other livelihood assets
• Providing jobs and opportunities for wage labour, or linking to buyers for their produce
From Harm to Home
98
Market Based Programming
Market
Indifferent
Market
Integrated
Relief
Objective: meet basic
needs (food security,
etc.)
Activities: • Local and regional
food purchase
• Cash and vouchers
• Seed fairs
Indirect Support
Through Markets
Objective: meet basic
needs through temporary
interventions that restore
markets
Market
Strengthening and
Development
Objective: economic
recovery, improvement
in income & livelihoods
Activities: • Support to productive
and sustainable
agriculture
• Employment creation
• financial services
• Supply and value
chains
• Productive assets
• Enterprise
development
Activities:
• Targeted support to
market actors
(grants, loans,
transport
subsidies,
temporary storage)
• Support to supply
From Harm to Home
99
Market Analysis Approaches
Different tools, but common characteristics
• Focus on ‘market systems’ for specific
items/services
• Evaluate capacity of market to deliver sufficient
quantity of those items to meet needs
• Links market functioning to different types of
emergency responses
Three popular market analysis tools:• MIFIRA Framework
• RAM and MAG
• EMMA Toolkit
From Harm to Home
100
Market Information for Food Insecurity
Response Analysis (MIFIRA) Framework
• Specific to food markets
• Decision tree:
1. Are food markets functioning? If yes
cash/voucher
2. If no is food available nearby? To evaluate
local/regional procurement or transoceanic
shipment of food
• Cornell University, Tufts University, CARE
Barret et al, 2009
From Harm to Home
101
Rapid Assessment of Markets (RAM)
• Seeks to rapidly understand if cash-based
interventions are market-appropriate
• Evaluates if markets can provide:
• Volume of the goods affected households need
• At the appropriate time
• At stable prices
• Market Analysis Guidelines (MAG) provide
guidance for further in-depth analysis
• Developed by Red Cross Movement
From Harm to Home
102
Emergency Market Mapping and Analysis
Toolkit (EMMA)
• 3-strands of analysis
• Market maps are the main tools
• Purpose: to identify the most
appropriate responses based on
market functioning and household
need
• Direct and indirect responses
From Harm to Home
103
EMMA’s core logic
Past
Baseline
Present
Impact
Future
Forecast
From Harm to Home
104
LARGE
IMPORT
TARIFFS
RESTRICTIONS ON
WOMEN’S ACCESS TO
MARKETS
GROWING
UNRELIABILITY OF
RAINFALL
POLICY
OBSTACLES TO
FOOD TRADING
WEAK FARMER
ORGANISATION
SEASONAL
EMPLOYMENT
PATTERNS
RISING
FUEL
COSTS
CORRUPTION OF
MARKET OFFICIALS
OBSTRUCTIVE
TRADE LICENCE
RULES
The Market Environment:
Institutions, Rules,
Norms & Trends
The Market Chain:
Market Actors & Their Linkages
Key Infrastructure, Inputs
& Market Support Services
WAREHOUSING
STORAGE
CASUAL
LABOURERS
FARM
INPUTS
INFORMAL
CREDIT
RURAL ROADS
AND BRIDGES
LEASING OF
TRUCKSBUSINESS
LOANS
IMPORTS
FROM U.S.A.
IMPORTS
FROM
DOMINIC. REP.
IMPORTER /
WHOLESALER
VILLAGE
TRADERS
URBAN
HOUSEHOLDS
LANDLESS RURAL
HOUSEHOLDS
URBAN
RETAILERS
RURAL
HOUSEHOLDS
WITH LAND
WOMEN’S
GARDEN
PRODUCTION
DISTRICT
TRADERS
PROVINCIAL
TRADERS
COMMERCIAL
FARMERS
Baseline market map – Beans, Haiti
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105
LARGE
IMPORT
TARIFFS
RESTRICTIONS ON
WOMEN’S ACCESS TO
MARKETS
GROWING
UNRELIABILITY OF
RAINFALL
POLICY
OBSTACLES TO
FOOD TRADING
WEAK FARMER
ORGANISATION
SEASONAL
EMPLOYMENT
PATTERNS
RISING
FUEL
COSTS
CORRUPTION OF
MARKET OFFICIALS
OBSTRUCTIVE
TRADE LICENCE
RULES
The Market Environment:
Institutions, Rules,
Norms & Trends
The Market Chain:
Market Actors & Their Linkages
Key Infrastructure, Inputs
& Market Support Services
WAREHOUSING
STORAGE
CASUAL
LABOURERS
FARM
INPUTS
INFORMAL
CREDIT
RURAL ROADS
AND BRIDGES
LEASING OF
TRUCKSBUSINESS
LOANS
IMPORTS
FROM U.S.A.
IMPORTS
FROM
DOMINIC. REP.
IMPORTER /
WHOLESALER
VILLAGE
TRADERS
URBAN
HOUSEHOLDS
LANDLESS RURAL
HOUSEHOLDS
URBAN
RETAILERS
RURAL
HOUSEHOLDS
WITH LAND
WOMEN’S
GARDEN
PRODUCTION
DISTRICT
TRADERS
PROVINCIAL
TRADERS
COMMERCIAL
FARMERS
Emergency-affected market map – Beans, Haiti
From Harm to Home
106
Why wait until disaster strikes?
• Pre-Crisis Market Analysis
• Understanding how
markets function at baseline
• Use hypothetical disaster
scenarios
• Estimate how markets will
respond to the shock
• Guidance currently being
developed by the IRC and
Oxfam
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107
Market-based DRR and preparedness
programming
• Risk Reduction
• Identify and strengthen weak points in market systems
• Support traders to improve resilience of own supply
chains
• Preparedness
• Pre-selection of response mechanisms
• Market early warning systems – inputs from traders on
prices, volumes, etc.
• Building staff capacity
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108
Linking program and logistics teams
• Logistics personnel know the markets – the
actors, infrastructure, prices, policies and customs, etc.
• Strengthening market supply chains better
cash or voucher programs
• Pre-positioning agreements with traders or
voucher shops, operational SOPs, vouchers,
etc.
• Mainstreaming market-sensitive approaches
across all sectors
From Harm to Home
109
EMMA Toolkit
www.emma-toolkit.org
Markets in Crises Community of Practice
www.dgroups.org/dfid/mic
From Harm to Home
110
Gregory Matthews
Sr. Technical Advisor for Economic Recovery