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

From Harm to Home

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

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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

gregory.matthews@rescue.org