Progress Report March 2006
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1 Demand-Driven Approaches to Livelihood Support in Post-War Contexts ILO and World Bank working together for Post-War Livelihoods International Labour Office Geneva The World Bank Group Progress Report March 2006 Demand-driven support for livelihoods in wartorn areas is conducive to sustainable local development and reconciliation among communities, and increases the effectiveness of external interventions through inclusive local planning, fostering empowerment and improving social capital. The World Bank, the International Labour Organization and other international stakeholders have gained through their respective experiences an increasing awareness of the specific strengths of bottom-up, demand-driven processes in post-conflict contexts and beyond. The WB and ILO have recently teamed up to lay the foundations of a common conceptual platform for a common understanding and framework for collaboration among major stakeholders in support of livelihoods and empowerment in postwar contexts. The ILO-WB initiative in support of post-war livelihoods To increase the effectiveness of participatory, demand-driven livelihoods programmes in postwar contexts, the ILO and the WB are joining forces through streamlined approaches and collaboration in the field. In the first part of a twophased initiative, the WB Conflict Prevention & Reconstruction and Community Driven Development anchors and the ILO Crisis Response and Reconstruction unit led the preparation of the ILO-WB operational study in support to post-war livelihoods, published by the World Bank in October The study distilled operational principles that are being tested in the second phase of the initiative through concrete collaboration in post-tsunami and post-peace agreement interventions in Aceh province, Indonesia. 1 Goovaerts, Piet; Gasser, Martin and Belman Inbal, Aliza: Demand-driven Approaches to Livelihood Support in Post- War Contexts: A Joint ILO/WB study, the WB Social development papers, Conflict prevention and reconstruction series - CPR no. 29. The study can be found at: &eid= _ The joint ILO-World Bank study, Demanddriven Approaches to Livelihood Support in Post-War Contexts Building on the organizations knowledge and experience of participatory development in post-war contexts, the study defines a set of core principles for post-war livelihoods operations. The study draws more specifically from the Community-Driven Development (CDD) and Local Economic Development (LED) approaches of the World Bank and the ILO, respectively. CDD is a demand-driven and participatory approach that gives control over development resources and decision making to the community. The ILO LED approach centres on involving local private and public actors in prioritising, selecting and implementing projects to foster economic activity and employment through community-led dialogue. Through experience, these approaches have demonstrated that community participation supports solutions that reflect local needs and capacities and increases the sustainability of the development process. CDD and LED approaches organise community members and interest groups and enable them to voice their needs; energies and assets are marshalled to find solutions to their development challenges; and the means to transform these needs into tangible results are provided. This common inspiration and rationale of CDD and LED relates at the operational level to different methodologies and areas of focus. The CDD approach addresses a wide range of community priorities, while LED specifically focuses on local economic enhancement. Both may ultimately support income generation, livelihoods, or job creation; however, CDD as a communal mechanism that seeks benefit for the entire community has been less directly focused on the business level. Synthesising these converging approaches allows to substantiate an inter-agency operational platform to foster economic recovery in conflict-affected communities. The study provides an analysis of common social and economic contextual factors in 1
2 conflict-affected communities; a brief description of what demand-driven approaches entail; and an identification of the likely benefits and challenges of applying these approaches.; It also defines, on the basis of the above context, a set of core principles for action, as a contribution to a common conceptual platform for international collaboration. Eight operational principles, useful not only for the ILO and the WB but also for other international and local stakeholders, are identified for demand-driven approaches for livelihood support in conflict contexts. The Bureau for Crisis Prevention and Reconstruction of UNDP (UNDP-BCPR) and the Reintegration and Local Settlements Section of the UNHCR (UNHCR-RLSS) contributed to the work by providing their perspectives and specific comments. Lessons from the field: supporting postdisaster and post-conflict livelihoods in Banda Aceh In October 2005, as the study was published, the pilot phase to test its findings was launched by the ILO, the WB and the Kecamatan Development Programme (KDP) of the Indonesian Government, through the signing of a Memorandum of Understanding for Aceh province. Livelihoods in Aceh had been severely affected by the December 2004 tsunami and earthquake, but also by the lingering armed conflict pitting the Free Aceh Movement (GAM) against government forces. After the tsunami, on 15 August 2005, the Helsinki peace agreement ended this 30-year long conflict; the local economy could then start rebuilding from the tsunami and emerge at last from the war s shadow. The KDP programme is implemented by the Ministry of Home Affairs and the Aceh and Nias Rehabilitation and Reconstruction Agency (BRR), through the funding of the World Bank. It adopts the WB community-driven development approach to alleviate poverty in rural communities in Indonesia. It also improves local governance by helping communities plan their own development, develop basic community infrastructure, and enhance social development and livelihood opportunities. Currently covering nearly 30,000 village across Indonesia, KDP has been operational countrywide since The programme is currently operating in all 7 postconflict provinces and, in particular, has expanded operations in Aceh Province and Nias to address post-tsunami reconstruction and post-conflict reconciliation and reintegration. ILO s intervention in the Aceh Province, as part of the wider international and United Nations (UN) response to the tsunami and post-peace agreement reintegration efforts, covers a broad reconstruction and rehabilitation programme to pave the way for inclusive Local Economic Recovery and Development (LER/LED). Within this long-term vision, the ILO provides short-term support to livelihoods and businesses through its local economic recovery activities. The LER component of the programme restarts, in a transparent and participatory manner, basic micro-economic activities in the tsunami-affected areas. LED/LER as a whole aims both to rapidly relaunch economic activities (short-term objective) and to enhance local capacities in identifying, selecting, prioritising, implementing and monitoring viable and profitable economic sectors (medium-term objective). The collaboration undertaken in Aceh between ILO s support to local economic recovery and development and the World Bank s communitybased social and economic development provides the setting to apply, test and refine the findings of the operational study. This ongoing pilot experience concentrates on two axes of work: capacity building and direct field interventions. From the operational study to a training tool The implementation by ILO of a short-cycle capacity-building project in the Aceh-Besar subdistrict is the first component of the pilot initiative, as provided for in the MoU. This project comprises the development of a set of training modules on livelihood support to strengthen the KDP toolkit, as well as capacity building through training for relevant stakeholders. It will build the capacity of KDP staff and governmental and civil society representatives at the provincial, district, sub-district and village levels to maximize KDP s impact on economic recovery and strengthen links between communitylevel investments and support to businesses and livelihoods. The tools and training are being developed on the basis of relevant ILO products and knowledge tools in prioritised technical areas. An author of the operational study and two local consultants, with ILO local and international backstopping, lead this activity. On the basis of the ILO/WB study outputs, the following key principles guide this capacity building project: 2
3 Comprehensive and systematic consultation with community groups and stakeholders at the different operational levels; Establishment of local institutional capacities and networks; Local ownership of capacity building processes; Institutionalization of training within existing national and local structures; adoption of action-oriented, pragmatic and contextualised training content and method; Development of synergies between the KDP training program and ILO s Technical Cooperation activities in Banda Aceh. ILO s activities benefit from strengthened local counterparts, while KDP s impact on livelihoods is improved. Furthermore, the ILO has conducted a training needs assessment for the KDP, through consultations with the World Bank, KDP staff and beneficiaries. An analysis of the KDP structure and job descriptions of its staff has also been performed. The assessment found in particular that perceptions and knowledge of business development could be upgraded and that business and livelihoods opportunities where not thouroughly explored and identified. The assessment furthermore found the existing KDP tools on economic issues too theoretically oriented and not adequately contextualised.this assessment informed the design of the training package. As a result, 8 modules have been identified to strengthen the KDP toolkit on local economic recovery and development: 1. Typology of Local Economic Development/Local Economic Recovery (LED/LER) and link with Community Driven Development (CDD) 2. How to Start an LED/LER-CDD Project How to do community mobilization 3. Start and Improve Your Business 4. Know about your business 5. Cooperatives/Associations of Small Businessmen 6. Microfinance for Women 7. Accounting, Transparency and Empowerment 8. Community Participatory Monitoring and Evaluation Each training module is sub-divided into introductory and advanced components. The introductory component serves as the general training material for trainees, while the full course covering both introductory and advanced components will be used for the training of trainers and to refine the knowledge of other trainers in their specific areas of interest. The training tool comprises theoretic sections as well as exercises and other tools for field workshops. The training modules will particularly emphasize learning by doing: 70% of the training time will be devoted to field exercises, including implementation of certain activities, observations and practical exercises (on issues such as business development, micro-finance, project management etc.). These field experiences will focus on ILO, KDP and WB collaborative activities in the field. Training and tools-testing The finalisation of the 8 modules is planned for June By then, the ILO will conduct Training of Trainers (ToT) for 24 KDP staff (managers and facilitators), UPK chiefs and NGO members in the pilot district of Aceh Besar over a period of two months. The ToT will enhance trainees skills in mediation, priority-definition and decision-making processes by teaching basic concepts in economic/business development, project management (design, implementation, appraisal and evaluation) and participatory approaches and techniques. A core team of 12 certified trainers will be formed to sustainably train and supervise KDP Facilitators and UPK chiefs 2 in the 17 districts of Aceh Province. Initially, this team will train 50 KDP facilitators and UPK staff in Aceh Besar over one month, under the supervision of the ILO LED programme and other ILO specialists in related fields. Such supervision will allow the ILO, the WB and the KDP to monitor the individual performance of trainers, as well as to evaluate the quality and adequacy of tools and the efficiency of the KDP programme in supporting post-disaster and postconflict livelihoods. The evaluation of the training impact will allow the actors to adapt and refine the tools, and will inform ILO, WB and KDP programming for the possible extention of the project to all sub-districts in Aceh province to train a total of 570 KDP facilitators and UPK chiefs. Furthermore, this process will provide lessons essential to the improvement of the conceptual platform for post-conflict livelihoods support in Aceh 2 The UPK is the implementation and programming unit at the sub-district level of the KDP. UPK chiefs provide support to the KDP facilitators in the organization of the village meetings and ensure administrative and financial control over the projects. 3
4 and beyond. The monitoring and evaluation system that will be established is particularly relevant in this regard. The mechanism and its activities will be coordinated and supervised by a joint ILO, KDP and WB task force. An M&E toolkit will be prepared, and a comprehensive evaluation will be performed, examining: trainees performance on the job and in written exams, the results of end-of-course feedbacks, cost-effectiveness and a cost-benefit analysis, and other parameters. An international consultant will thereafter produce an analytical report on the basis of the data collected and other evaluations. Working together in the field In addition to and in parallel with the capacity building project, the pilot ILO/WB collaboration on demand-driven support to livelihoods also involves direct technical cooperation in the field. Local Economic Development and Recovery projects in the ILO, as described above, aim at achieving quick impact in the short term, while ensuring that initiatives conducted are placed within a longer-term strategy and that local stakeholders are fully involved and empowered in the process. A similar philosophy and programme cycle timeframe in the KDP make the collaboration and synchronisation of ILO and KDP technical cooperation portfolios the main area of field collaboration. The ILO LER and the communitybased programme financed by the Bank in Aceh province enhance each other s impact through direct collaboration at different levels and stages of their programme cycles. Geographically, the areas of intervention of the ILO s Local Economic Recovery projects at the village level are identified in consultation with KDP sub-district and village-level facilitators. Furthermore, KDP facilitators are involved in the preparation and take part to the participatory planning processes of the ILO LER projects at the village-level. Moreover, in the areas where the ILO LER project is active, the same most vulnerable groups are targeted at the village level. Rapid Socio-economic assessments through a Local Appraisal of Competitive Advantages (LACA) at the district level have been conducted by the ILO with the participation of KDP specialists, as well as representatives of the Ministry of Planning, APINDO (Employers Association), the Chamber of Commerce, BRR (the governmental coordinating body for post-tsunami reconstruction) and local academics. Victor Bottini World Bank Resident Representative, Aceh & Nias C/o Multi-donor Redevelopment Office Jl. T. Iskandar 46, Lamteh, Ulee Kareng, Banda Aceh Tel: +62-(0) / Fax: +62-(0) vbottini@worldbank.org Further areas of collaboration have been identified for potential expansion of ILO/KDP collaboration in support of local economic development and social improvement. The ILO will support KDP activities by providing technical assistance in areas relevant to its core mandate where it has extensive experience, in particular: labour-based rehabilitation and reconstruction, vocational training, and enterprise development. In the area of labour-based rehabilitation and reconstruction, a large project is being set up by the ILO for rural roads in the Aceh province. Preliminary discussions were held on collaboration with KDP to coordinate and synchronise the ILO efforts with KDP s physical infrastructure construction. Another collaboration framework is currently under consideration by the WB and ILO with the SPADA project (Support for Poor and Disadvantaged Areas). This project will support business development and generation at the district level in Aceh province. An ILO/SPADA collaboration combining capacity building for SPADA facilitators and other relevant stakeholders, and LER/LED activities, would open a new dimension to the ILO/WB collaboration for bottom-up support to livelihoods. As per the nature of the SPADA project, such a collaboration would be placed in a longerterm perspective and would give way to the development of a more comprehensive vision of local opportunities and challenges. The way ahead The pilot initiatives in post-crisis Aceh as described above will extend the conceptual work undertaken in the ILO/WB operational study to the operational level. A third phase of the ILO/WB initiative for demand-driven support for livelihoods in postconflict areas would therefore take stock of this experience in post-tsunami and post-peace agreement Aceh. Such an initiative would further integrate and harmonize Local Economic Recovery/Local Economic Development (LER/LED) and Community-Driven Development (CDD) approaches into a coherent and comprehensive development framework at the local level, to address both the social and economic challenges in post-crisis contexts. The approaches and experiences of other relevant international stakeholders would usefully complement such an endeavour, and their participation in such an initiative would therefore be sought proactively. For further reference, please contact: Julien Magnat Local Economic Recovery/Development Program Manager, ILO Aceh Office Jl. 9, Lambhue Barat, Keutapang, Banda Aceh, Nanggroe Aceh Darussalam, INDONESIA Tel and Fax: + 62 (0) magnat@ilojkt.or.id
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