Oxfam Programme Quality Standards: Market based programming, from humanitarian to development

Transcription

1 Oxfam Programme Quality Standards: Market based programming, from humanitarian to development Oxfam has a markets based approach to its programming. This means that in all contexts, from preparedness and relief to early recovery and development, Oxfam s programmes must have an awareness of market systems and apply market development principles to the design and implementation of interventions. Market based programming is a key component of Oxfam s resilience building approach. While this is applicable in all contexts, the degree to which Oxfam interventions can and should aspire to assess, engage with, support and challenge market systems does depend on the objectives and context that the project is engaging with. As a consequence, a capacity to deliver market based programmes is required within all Oxfam affiliates. Why should we work with markets? 1. Essentially, markets are a key institution in people s lives, alongside family and community; 2. People s lives and livelihood depend on markets: women, men and children engage with markets as producers of food as well as consumers of food. Poor in rural areas purchase about 80% of their food from the market whereas poor in urban areas purchase almost all their food from the markets; 3. Markets offer women and other smallholder producers the best opportunities for a sustainable exit from poverty, if these producers or workers have the right skills and products; have the capacity to adapt to climate change and other risks; work collectively in enterprises to negotiate trade and influence the rules that govern them; norms guarantee the right to access markets and the same information is free and accessible to all; 4. The private sector presents good opportunities. Oxfam believes that within the business sector, there are responsible actors and great possibilities for those to have a role in humanitarian responses, as well as in sustainable development and economic growth that can lead to poverty reduction. In recognition of the central role that markets play in people s lives, Oxfam has been developing its learning, experiences, expertise and toolkits to enable the effective engagement with the business sector and markets across the full range of programming from relief to development. Oxfam is engaging with an increasing variety of business and market actors in an increasing range of roles and relations: experience is still needed to reach a joint and consolidated policy covering the response continuum shared across the confederation and covering the different sections of the business sector and markets. Since Oxfam needs guidance today on how to engage with the business sector and markets in humanitarian situations, this document gathers the knowledge acquired to date and will be updated as further knowledge and best practice is gathered. This document will present an overview of markets work on the humanitarian-development continuum, and locate areas of ongoing development; and focus on the market based programming within Oxfam s humanitarian sector and look at the minimum principles, requirements and standards needed to engage effectively.

2 Overview of Oxfam s engagement with markets and business sector Over the past few years, Oxfam has strengthened its commitment to putting markets at the centre of programming in recognition of their key role in enabling people s access to goods and services, and as a basis for their livelihoods. The two main areas where Oxfam has developed its experience, expertise, toolkits and learning, has been in market-based relief delivery and in agricultural market development. This has resulted in the EMMA (Emergency Market Mapping and Analysis) and GEM (Gendered Enterprise Markets) toolkits. Oxfam is working in expanding its area of expertise and bridging the gaps between those two areas and aims at building a comprehensive markets framework, gathering existing tools and filling the gaps that would arise as programming expands its ambition and coverage. Oxfam is thus presently developing its market based programming framework linking market based relief delivery to market development and the following reflects the work in progress. Oxfam s market based programming covers the different moments of the intervention continuum from the Humanitarian to the Developmental work: 1. Before the crisis: preparedness for market based relief interventions, economic strengthening and market based resilience building; 2. In response to the crisis: through market based relief interventions helping people to meet immediate needs; 3. After the crisis: Economic recovery and strengthening, in link with development; 4. Economic and Market development (GEM, Enterprise development, etc). Throughout these approaches, the principles of sustainability and facilitation are key driving forces. It is clear that context and timing play a crucial role. While the overall principles remain the same throughout the programme cycle, the degree to which different principles, standards and aims can be applied is highly dependent on context. Oxfam is beginning the process of trying to align both the principles behind humanitarian and development programming and ensure that there is sufficient knowledge and linkages between these programmes along the spectrum. The better these approaches are integrated, the closer our work will embody the one programme approach. Moreover, better integration ultimately means greater resilience of livelihoods and greater impact of development. The degree to which Oxfam can work with markets is on a spectrum from market aware, through market support to market development : the continuum forms the market based programming framework that is under consolidation within the organisation (this is represented in Table 1). At a minimum, interventions must be market aware and consider market support as a response option where relevant and feasible. And market support will be further extended to working actively to strengthen markets and people s access to markets as a primary means of strengthening food security and livelihoods.

3 Oxfam humanitarian programming will follow the minimum market based programming principles stated below, tending towards market development principles as far as possible and appropriate to the objectives and context of the project. MINIMUM PRINCIPLES for humanitarian market based programming: 1. Humanitarian and recovery responses should aim at doing no harm or minimising risk to markets: the operations, products, and indirect and multiplier effects of humanitarian response and economic recovery interventions must address or minimise potential harm, and must not exacerbate economic disparity. An understanding of the market system performance and capacity is necessary to tailor the response to the context. Indeed, commodity distributions can undermine a functioning local market, and cash distributions in areas of limited supply with no expandability can cause inflation; 2. Support access to critical markets for affected populations, to ensure access to basic rights: To further the humanitarian goals of ensuring survival and to protect and promote livelihoods, many interventions, from EFSVL, shelter and WASH, to agricultural interventions and income promotion activities, rely upon and are based in either supply markets, income markets, or both. These may be through: traded food; agricultural inputs; veterinary services; credit services and the development of agricultural crops; livestock; fish and forest products; agricultural and casual labour; re-construction activities or other employment industries; 3. People s dignity: We give the preference to cash transfers modalities where relevant and for that we need to understand markets capacity and performance: cash transfer modalities aim at among other objectives ensuring dignity and empowerment of affected populations. Increasing purchasing power of affected populations is what makes sense when availability of goods and services in the market is not the limiting factor for people to cover their basic needs and livelihood needs. Please refer to Cash PQS and EFSVL minimum standards; 4. Cost efficiency and effectiveness: Market based responses can have operational and transactional advantages for the efficiency and effectiveness of our interventions. For example cost efficiency can be attained by the transfer of risks to the private sector actors that have the experience, expertise and opportunity to get closer to target groups (and reach insecure, isolated areas using local systems); 5. Contribution to economic recovery, strengthening and sustainability. Considering and integrating markets in responses aims at contributing to the economic recovery that leads towards sustainability: In those cases, responses enhance market activity and can therefore stimulate and develop rather than undermine local economies (through the creation of an ad hoc parallel system); They ensure connectedness with long term projects and strategies, as well as opportunities to link short, medium and longer term approaches under the Oxfam one programme approach.

4 Table 1. The market based programming continuum, a first proposition for discussion and further development MARKET BASED PROGRAMMING Market based relief programming Conditions Rapid onset emergency; Slow onset emergencies; Target most vulnerable people. Building resilience, Economic recovery and strengthening Conditions Slow onset / recurring crises; Targeting more vulnerable members of communities which may overall be better off. Market development programming Conditions Relatively stable / food secure areas; Target more vulnerable / less powerful community members. MINIMUM principles for response: 1. Do no harm; 2. Support market capacity to deliver people s needs in fair and sustainable conditions; 3. Contribution to economic recovery, strengthening and sustainability; 4. Cost efficiency and effectiveness; 5. People s dignity: Preference for cash transfer response modalities when feasible and appropriate; 6. Access to basic right: Support access to critical markets for affected populations. Approaches: Direct delivery Facilitation Advocacy Private sector as contractors... Analysis: EMMA (for consumables) HEA Overall principles: - Support the one programme approach - Promote gender equality. - Be participatory - Be accountable (to beneficiaries and donors) and transparent - Involve and support local partners - Include Monitoring, Evaluation and Learning Approaches: Facilitation Advocacy Analysis: Joint market baselines (EMMA, etc..) Market Assessment for INPUT markets and / Guiding principles for response: 1. Promote market capacity to deliver people s needs goods and services in fair and sustainable conditions; 2. Understand and address power in markets; 3. Promote Women s Economic Leadership; 4. Understand and promote resilience; 5. Act as broker and facilitator and less as direct delivery agent. Approaches: Facilitation; Convening Brokering Advocacy Multi-stakeholder approach Develop new business models Leveraging change through targeted programming Empowerment Governance Policy influencing (of Government, Private sector, Donors) Analysis: GEM Market analysis for PRODUCE or Labour: Demand Analysis

5 HOW? Delivery through markets (cash, vouchers, fairs); Analysing markets; Supporting markets (or Market support); Income Generation. Activities - Market support - Cash transfers - In kind - Etc... HOW? or PRODUCT Markets Gendered Market Analysis Stimulating income sources (income markets); Meeting basic needs (supporting supply markets) for more vulnerable / women through markets. Activities - Employment creation - Value chain - Supply chain - Financial services - Enterprise development - Productive assets HOW? Stakeholder Analysis Power Analysis Working to develop and strengthen income markets Support innovation in services to smallholders and women; Improve links to commercial buyers and wholesale markets through new business models: Encourage public and private investment; Facilitate smallholder enterprises and organisation; Increasing productive and sustainable agriculture; Public and private investment in infrastructure and women s assets; Work with other stakeholders, identifying where / who can leverage the most change. Activities - Enterprise development - Market development - Value chain

6 Programme Quality Standards for engaging with markets and the business sector in Humanitarian Programming Programming References 1. MARKET BASED PROGRAMMING: Minimum standards Oxfam s programmes are market based. This means that they must follow minimum standards: Standard 1: Oxfam humanitarian programmes are market aware, they are designed on the basis of an analysis of the relevant market systems affecting people s lives and livelihoods, and of the effects of an intervention on those markets and people s access to those markets; Standard 2: At a minimum, Oxfam humanitarian programmes do no harm to markets and to people s access to markets: they seek not to distort the functioning of those markets, not to exacerbate economic disparity and to minimise potential harm; Standard 3: Oxfam humanitarian programmes work with markets where and as much as relevant: o Standard 3.a.: at a minimum Oxfam humanitarian programmes consider market support as one of the humanitarian response options; o Standard 3.b.: Oxfam humanitarian programmes seek to contribute to economic recovery and strengthening and address economic disparity: in that aim, they seek to actively support and strengthen markets as a primary means of ensuring food security and strengthening livelihoods of target vulnerable groups, where relevant and feasible, according to the context, and programme intentions; o Standard 3.c: Oxfam humanitarian programmes follow minimum principles for market based programming and tend towards market development principles as far as appropriate to the project objectives and context. Standard 4: Market baselines for relevant key market systems must be part of contingency planning; Standard 5: MEAL systems and plans must include appropriate market indicators; Standard 6: To support Oxfam s market based approach, a clear understanding of the role of markets and experience in market based relief and recovery is essential in programme teams and this is reflected in competency frameworks, capacity building strategies and staffing; Standard 7: In context of predictable and recurrent crises, Oxfam will aim at carrying out joint market analysis (humanitarian development) as part of joint situation analysis to inform contingency planning, preparedness planning as well as resilience programming; Standard 8: where relevant and feasible, Oxfam will favour local procurement where it can contribute Minimum standards for economic recovery after crisis, The SEEP network OI policy compendium note on the private sector and humanitarian relief OI Gender in Emergencies minimum standards IASC Gender Handbook in Humanitarian Action, section on Livelihoods.

7 to economic activity / recovery, and it does no harm to markets, economy people s lives and livelihoods; Standard 9: where market support and market strengthening can contribute to women s empowerment and support the primary project objectives of food security and livelihood security, Oxfam will specifically favour women businesses. Oxfam adheres and has contributed to the development of the Minimum Economic Recovery Standards 1 that are a companion standard to the Sphere handbook 2011 Edition: therefore Oxfam follows its core standards 2. Oxfam applies market based programming to its different sectors of expertise: WASH, Emergency shelter and EFSVL. These minimum Programme Quality Standards (detailed above) will aim to apply to all Oxfam sectors of expertise, i.e. EFSVL and WASH and are being progressively embedded into WASH and Shelter Programme Quality Standards. The following parts of the PQS expand their implications for EFSVL programming only. Managers are accountable for achieving programme objectives and adhering to the Sphere Handbook guidelines and these Oxfam programme minimum standards in line with the SEEP network Minimum Economic Recovery Standards. Key concepts and terminology are defined in Annex A and Annex B. 1 Minimum Economic Recovery Standards, Second Edition, November 2010, The SEEP Network. The Minimum Economic Recovery Standards have been accepted as a companion standard to the Sphere Handbook 2011 Edition, which is produced by the Sphere Project and seeks to set minimum standards for humanitarian action. 2 Core standards within the Minimum Economic Recovery Standards, Second Edition, November 2010, The SEEP Network 1. Market oriented programming / market based programming 2. Coordination and effectiveness 3. Staff competencies 4. Do no harm 5. Well defined targeting and intervention strategy => at a minimum a market analysis as part of response analysis

8 2. SITUATION ANALYSIS: MARKET ASSESSMENT & ANALYSIS Standard 1: Oxfam humanitarian programmes are market aware, they are designed on the basis of an analysis of the relevant market systems affecting people s lives and livelihoods, and of the effects of an intervention on those markets and people s access to those markets. For this, a market analysis must be carried out as part of the situation analysis (food security and livelihoods assessment) that informs response analysis and design. The market assessment and analysis will a) be part of situation analysis by providing an understanding of the economic context and; b) contribute to the feasibility analysis of different response options. To fulfil this standard, Oxfam will ensure the following key minimum requirements: 1. Even if it is carried out separately (timing and logistics), the market assessment and analysis is an integral part of situation analysis, with the goal to inform response analysis; The timing and process to carry out the market assessment will follow the requirements stated by the Oxfam Humanitarian Dossier, and the Assessment PQS, i.e. the same than for any needs assessment. For example, in case of a rapid onset emergency, the 48h tool does integrate the necessary market components to support decision needs for response design; The tentative response goals need to be discussed and defined (i.e. emergency water provision, immediate food security etc) from the analysis of people s food security and livelihood situation to design the market assessment, so that it properly informs response analysis. The market assessment aims at providing essential economic information to define the most appropriate and feasible response options to achieve the project objectives; The market assessment can be carried out concurrently with the food security and livelihood assessment but needs sufficient information to devise tentative response goals: the good and services to analyse will OI MEAL minimum requirements 48h tool (in particular questionnaires and decision tree) EMMA toolkit EMMA Short guidance GEM: Steps A, B and C CaLP research Market analysis in emergencies CTP SOP Assessment PQS Oxfam Humanitarian Dossier

9 be selected from the understanding of people s constraints and needs and from the first hypothesis on response intentions. 2. The market analysis covers key market(s) that are critical for affected groups; 3. Each critical market is analysed as a system looking at the 3 levels of actors and parameters 3 ; 4. The market assessment determines how people (and affected people in particular) access their basic and/or livelihood needs and the degree to which those critical market systems are functional. For this, the assessment will explore: The capacity and performance of market actors to supply assessed goods and services; as well as their capacity to expand their supply with or without external support, and the resulting availability of assessed goods and services; People s access to key market systems (sources of income and expenditures, physical access and safety in access; transportation availability and cost; gender and cultural access); Prices of those goods or services and probability of evolution of those prices; Constraints, failures and opportunities within the market system that do or can potentially limit its capacity and performance and can affect people s access to their needs and/or income sources 5. Market assessments are carried out in coordination and collaboration with Logistics teams as they already have an understanding of key market actors, the skills and have already part of the information. This is further detailed in the CTP SOPs. 6. The market analysis must integrate: An analysis of gender power relations: this is crucial for determining the differential access and control of women and men over different elements of the market system. This will allow for appropriate programming by following a do no harm principle. Where possible (e.g. where the expected duration of Oxfam presence is long or where there 3 A market system is a network of market actors, many buyers and sellers not only one chain supported by infrastructure and services, interacting within a context of institutions or rules that shape the actors trading environment. A market system involves 3 levels: 1. a market or value chain; 2. the market services (e.g. transport, finance, information, extension services) provided to support the chain; 3. and the environment (e.g. infrastructure, natural or policy environment) that enables or disables the functioning of the chain.

10 is an existing women s empowerment programme etc) efforts can be made to contribute towards the empowerment of women. An effectiveness and appropriateness analysis of different response options; A risk analysis. The assessment will include an analysis of major potential risks that could influence the success or failures of different response modalities and options: Power issues within the market system (are there actors who hold a position of higher power in transactions?), Market competitiveness (price control and setting mechanisms and speculative behaviours), market integration and blockages to integration, Market formal and informal restrictions and risks of inflation; The assessment might recommend further research, for example: Investigating other related market systems; Market analysis for longer term responses.

11 3. RESPONSE ANALYSIS AND MARKET BASED HUMANITARIAN PROGRAMME DESIGN Standard 2: At a minimum, Oxfam humanitarian programmes do no harm to markets and to people s access to markets: they seek not to distort the functioning of those markets, not to exacerbate economic disparity and to minimise potential harm. Standard 3: Oxfam humanitarian programmes work with markets where possible and as much as is relevant: Standard 3.a.: at a minimum Oxfam humanitarian programmes consider market support as one of the humanitarian response options; Standard 3.b.: Oxfam humanitarian programmes seek to contribute to economic recovery and strengthening, and address economic disparity: in that aim, they seek to actively support and strengthen markets as a primary means of ensuring food security and strengthening livelihoods of target groups, where relevant and feasible, according to the context, and programme intentions; Standard 3.c: Oxfam humanitarian programmes follow minimum principles for market based programming and tend towards market development principles as far as appropriate to the project objectives and context (refer to Table 1). EMMA (STEP 9, Decision trees Box 9.3 p 164 and Box 9.5 p 166) Cash Transfer Programming in Emergencies. Oxfam: Oxford. Creti, Pantaleo & Jaspars, Susanne eds. (2006), in particular Decision tree p. 22. Standard 9: where market support and market strengthening can contribute to women s empowerment and support the primary project objectives of food security and livelihood security, Oxfam will specifically favour women s businesses. For this, market based programme design requires that: Response analysis is also informed by the market assessment and analysis, to ensure that: The choice between response options must be aware of the economic and market dynamic. In particular, it must forecast and evaluate the potential impact and effectiveness of different response options at various levels of a market, and for a variety of stakeholders; The selection of the appropriate intervention is based on an understanding of the desired economic and market outcomes. These outcomes may be achieved through a variety of approaches and partnerships, not only through direct intervention; Whilst addressing the needs of disaster-affected populations, relief and early recovery responses must be designed not to distort markets negatively: they must not replace existing products and actors and on the contrary, they must seek to contribute to economic recovery and to addressing economic disparity. Responses address or minimise potential harm and contribute to addressing - or at least do not exacerbate - economic disparity.

12 Market analysis provides the information to identify the need for supporting market system actors and decide market support interventions i.e. indirect actions. Response analysis considers market support interventions (indirect responses) where appropriate, to address affected population s needs; The market analysis provides information and analysis on the feasibility, appropriateness and cost effectiveness of different response options: it supports the selection of the most appropriate modalities to support basic and livelihood needs (for example, selection between cash, in-kind, or combination of cash and in-kind); Market strengthening measures (actions targeting market actors for the reinforcement of market systems) can be considered where relevant; Market strengthening measures, for economic recovery and diversification interventions must support economically viable activities targeting viable markets; Support to markets actors can intervene at all levels of the market system: environment, chain of actors and / or infrastructure; Facilitating the role of private sector actors should be given due consideration in order to identify sustainable solutions that will be handled by the market system rather than Oxfam (example: facilitate the delivery of loans by micro-finances instead of delivering ourselves); Market support shall avoid reinforcing misbalances of market power that are negative to targeted groups, and should even seek to reinforce the place of affected groups in the market system; Interventions must have strategies in place to minimise corruption including transparency systems where relevant and appropriate. This also covers the work with traders and private sector; Response analysis shall assess if supporting women market actors would contribute to their empowerment. Directing market support and strengthening towards women exclusively or partially - shall therefore be considered where appropriate and feasible. Market assessments will highlight where women play critical roles in the market systems as well as the conditions, constraints and opportunities of their roles in those markets; Project proposals and Logical Frameworks should allow change in response modalities to happen during the implementation of a project if required, so that projects fulfil over time the objective of meeting people s needs. For example, in the case where a project is designed around CTP, the possibility of shifting to or combining with in-kind modalities at a later stage of the project should be included in the proposal if the situation and market analysis has highlighted risks of market and context evolutions. Project proposal should also allow the adaptation of the cash amount to ensure that it covers the intended needs.

13 As a consequence, market based humanitarian programmes: Are delivered with and through markets where those are sufficiently functional to do so without adverse consequences on people and market systems; Are delivered with and through markets and directly support market actors and systems where those are operational but insufficient for the response to fully rely on them; In those cases, within resilience programming, it considers supporting market systems to improve people s access to basic needs and services in a stable and fair way; Are not delivered trough market actors where those are not functional. Market support for recovery and strengthening should then be considered if relevant to the programme objectives. This will include advocacy. 4. MARKET SUPPORT INTERVENTIONS: examples Market support in humanitarian programming can take different forms: Support to capital and access to financial services: direct cash advances to traders, cash grants to traders, support market actors to access loans and credit (acting as guarantee towards financial institutions for the provision of credits to traders / key market actors), support for producer groups, support for micro-finance institutions; Support to infrastructure rehabilitation and / or construction: public infrastructure (water and sanitation systems, roads, bridges, electricity supplies) and trading infrastructures (market places, storage facilities and premises, livestock trading facilities); Target privately owned assets (for example land, ponds, irrigation and ditches) if these are essential components of a critical market system on which many target households rely; Public infrastructure rehabilitation should be coordinated through government plans, and agencies should avoid replacing government s primary role as far as possible; Where feasible and relevant, infrastructure rehabilitation can be combined with cash-for-work activities. o Support to transport: transport subsidy to traders (fuel vouchers, etc) and/or transporters; help with leasing of vehicles to traders, protective convoys in conflict zones; o Incentive to cover areas not attractive : transport subsidies, organisation of fairs. OI Guide on working with the Private Sector (on SUMUS) Programme Policy Guidance, OGB, Working with the Private sector CTP SOP, OGB GMAP 2011, Guide to mandatory procedures 2011, Chapter 4: Operational Support Procurement procedures from each affiliate New Technologies research, CaLP 2011

14 Information and linkage: o market information services (informing market actors of what is planned by Oxfam, making available market monitoring information), o market linkages (building links between market actors), o employment agencies (linking target groups to opportunities for employment, skills development or vocational training), o business services: help with licensing and regulations, guidance on tendering for contracts). Trader capacity development. Capacity building of permanent traders through training, mentoring etc, in business skills; Support to deal with bureaucracy: practical administrative or lobbying support to help to overcome bureaucratic obstacles, obtain business licenses, transit permits, etc. Wholesale supply to traders: legal or logistical help with importing goods into an emergency area. Sale (monetisation) of food aid into local markets where supply is constrained. For income market systems: o seed and inputs supply: support for seed fairs, o rehabilitation of seed and trees nursery, o livestock services (vaccinations, supplementary feeding, access to fodder, temporary protection and shelter), o livestock markets (de-stocking to manage demand, improvement to market place/trading centre facilities, re-stocking programmes), o agri-tools and machinery: assistance with investments in tools, agro-machinery, irrigation equipment, advice and support to providers of agro-machinery rental services). Advocacy: lobbying government officials for improvements in food-movement policy, tariff reductions, speed of import clearances, emergency tax holidays, and safe passage for traders. EMMA website ( Market D-Group CaLP website, CTP PQS The role of market actors and private sector in responses can be diverse: Cash delivery mechanisms and agents: o traders (to transfer funds to beneficiaries as cash or in-kind refer to CaLP website & CTP PQS), o mobile phone companies (system of sending virtual cash to a mobile telephone to be cashed at local traders or agents), o banks (using bank s products as debit or credit cards, mobile banking services to deliver cash), work with them to improve efficiency in humanitarian cash transfer programmes (e.g. through swipe cards, cheques, finger print recognition, or mobile phone electronic transfers), o post offices,

15 o remittance companies, o requirements and points to consider in the selection of payment mechanisms and cash delivery agents is detailed in Oxfam Finance guidelines on cash transfer programming, New technologies: work with mobile phone companies to develop appropriate interventions (e.g. Frontline SMS open source software platforms to establish two-way SMS messaging to communicate with beneficiaries on food price monitoring, market price information, accountability and monitoring and hazard hotlines; Insurances: work with insurance firms (e.g. micro-insurance provision to the poorest of the poor in catastrophes); For WASH: o Contract services of an engineering company to repair and maintain boreholes/wells and to support communities in longer-term maintenance of those facilities; o Contract small local companies to assist with refugee camp set-up and maintenance; o Contract small and medium firms to compost solid waste in camps established in emergency response o Engagement with engineering firms especially in innovative WASH projects (e.g. installing biogas sanitation in slums). 5. RESILIENCE BUILDING, ECONOMIC RECOVERY AND STRENGTHENING (TOWARDS DEVELOPMENT) / Linking Relief Rehabilitation and Development Principles for the design of economic recovery and strengthening are detailed in Table 1. OI Common Approach to DRR Economic strengthening and recovery activities should target those activities that have market potential beyond the assistance period. Economic strengthening and recovery should consider comprehensive interventions at multiple points across a market system, from input supplier to producers to end-markets, to policy makers. Programmes that work at only one level and do not recognise these interconnections risk missing opportunities and may create market distortions. Interventions may require a wide range of activities from new financial services, to improved technology, to creating links to other market actors in order to have the greatest impact.

16 Economic strengthening and recovery interventions include: Financial services, Agricultural production, Employment creation, Enterprise development, Supply markets strengthening for key goods and services, essential for poor people s lives and livelihoods: basic needs and productive inputs. Note: Cash for Work is not considered as employment creation as the objectives are different. CFW is a short-term transfer of purchasing power, while employment creation aims at creating the conditions for sustainable sources of income for people through the sale of their labour. From direct delivery towards acting as broker and facilitator: When designing programmes for economic recovery and strengthening and for resilience building, Oxfam will aim at playing a role of broker and facilitator, taking distance from direct delivery. This means we must: Take time to understand the complexity of the market system in which businesses operate, including the role of regulation and incentives; Understand the different roles and what would motivate businesses or governments to work within a programme we might develop; Ensure that critical services required within any programme are supplied by the business sector or by government when we leave; Concentrate on sustainable outcomes that can work without the continued involvement of Oxfam or other agencies; Ensure that Oxfam keeps a low profile and does not dominate the process or agenda; Focus on creating space for dialogue between different stakeholders so that they can develop relationships of trust, drive solutions, and ensure that poor producers or communities are included in these processes to define their own agendas. 6. PREPAREDNESS AND SITUATION MONITORING

17 Standard 4: Market baselines for relevant key market systems must be part of contingency planning. The success of EFSVL programming depends a lot on the level of preparedness prior to a disaster. It is recommended that joint contingency and preparedness plans are developed by affiliates in disaster prone countries and areas within those countries. For that, market baselines: should include the selection of market indicators that will be updated in the case of a crisis arising and during a crisis. Indicators and the triggers for their collection should be defined within the baseline results; are encouraged as a means to build the capacity of affiliates and partners staff. Involvement of partner and government staff should be strongly considered to ensure a consensus on the analysis and potential response options; can also serve as an ex-post informal evaluation of past responses and help integrate learning from past responses into future ones; can lead to the identification of advocacy messages regarding the market environment and / or information systems and inter-agency coordination; carefully selected market indicators must be part of Oxfam s early warning and situation monitoring systems; this shall take into consideration the existing information systems carried out by other actors that gather market indicators at different levels from macro to micro. A prior mapping of market information available at country level will be necessary to make the best use of existing information and its complementarity with information collected by Oxfam. As indicated above, market baselines will inform the selection of those market indicators. Standard 7: In context of predictable and recurrent crises, Oxfam will aim at carrying out joint market analysis (humanitarian development) as part of joint situation analysis to inform contingency planning, preparedness planning as well as resilience programming. 7 MONITORING AND EVALUATION Standard 5: MEAL systems and plans must include appropriate market indicators. Monitoring of key market systems indicators must be ensured all through the project cycle to: Ensure that the content of the support is fulfilling expected results; Assess changes in the market system and people s access to markets that may affect the OI MEAL minimum standards OI EFSVL Programme Quality standards

18 effectiveness of implemented responses, or be the result of those responses. In that case appropriate corrective measures must be taken to address these, for example: increase the value of transfer if food prices have increased since the CTP was designed or shift from one modality to another if needed; or shift from cash to in-kind if prices increase as the result of a sharp decrease of supply and availability. tracking the performance of markets systems will help to know: how the emergency situation s impact on target households is evolving; whether there are new bottlenecks or risks of any disruptions which may affect the programme or affect markets that supply beneficiaries and other population groups; whether the level of any cash-based intervention being offered is adequate; what effects humanitarian responses are having on the market s performance; when to start, stop or adapt humanitarian activities. Monitor the impact of the response on market systems to ensure the do no harm principle on market systems and people s access to those markets; Measure the impact of the response on people s access to market and in particular to their basic needs; Measure the impact of the response on market actors to assess their contribution to economic recovery and strengthening in particular in projects that include such objective; GPR, Cash transfer programming in emergencies, Paul Harvey and Sarah Bailey, (Chapter 5, pages 81 to 93 in particular). EMMA toolkit, Chapter 8 & resource CD: Crucial Tasks\Monitoring Prices As a consequence, responses should be adjusted where required by changing market conditions. The MEAL PQS specify core and recommended market indicators for monitoring and for progress and impact evaluation. The role of Logistics in Market assessments and Monitoring is further detailed in the Cash SOP. 8 CAPACITY & RESOURCES: Implications of market based programming Standard 6: To support Oxfam s market based approach, a clear understanding of the role of markets and experience in market based relief and recovery is essential in programme teams and this is reflected in competency frameworks, capacity building strategies and staffing. For this: Programmes are staffed by individuals well versed in economic recovery principles and / or who have access to technical assistance; EFSVL readiness tool OGB CTP finance guidelines, 2011 OI EFSVL Partner Capacity Assessment Tool (to be completed in Feb 2012)

19 Programmes include capacity building components to improve the skills of field staff; In addition, programmes are designed and implemented by multi-disciplinary teams that combine relevant and complementary expertises (including technical, logistics, Finance, etc...); Market analysis and market based programming is part of Oxfam s EFSVL competency framework as well as learning and development plans. Prior experience in market driven humanitarian interventions is essential within EFSVL and WASH teams and training in EMMA/Market assessment is a minimum requirement for level 1 and 2 staff; Response analysis and project design must be led by staff who are trained and experienced in the interpretation of market analysis and the design of market based responses; Market assessments must be led by staff who are trained and experienced in it (preferably must have attended an EMMA training or an equivalent training elsewhere, and have been part or led a market assessment); In contexts where partners and/or country teams have limited capacity, the humanitarian lead affiliate (to align with humanitarian dossier) has the responsibility to provide extensive support to ensure quality and speed of the situation analysis and response design, as well as response implementation. This may require developing and resourcing a capacity building plan as a part of preparedness (see section on preparedness) and in case of an emergency, may mean seconding experienced staff or leading the analysis directly; Short-term technical support in designing and carrying out market assessments and analysis should be made available to country teams (only P1 countries?); Affiliates should contemplate the expertise they need in their budgets and teams, especially where there is the expectation of markets playing an important role in the response. 9. What Oxfam does and does not do: ENGAGING WITH THE BUSINESS SECTOR IN HUMANITARIAN Oxfam engages with the business sector in different ways 4. All of these forms can be relevant to humanitarian programming. EFSL Minimum Organisational Capacity Standards OGB CTP finance guidelines, 2011 Obtaining Authorisation to Use Armed Escorts/Guards: An 4 Programmatic partnerships; Fundraising partnerships and philanthropy; Joint projects; Dialogue; Lobbying and advocacy;

20 1. Involvement with private / business sector in humanitarian. Any private sector involvement in humanitarian relief must conform with the humanitarian principles embodied in the Red Cross / Crescent and NGO Code of Conduct, including impartial aid based on assessed need, accountability to beneficiaries as well as donors, reduction of future vulnerability as well as immediate relief, and coordination. Commercial opportunities may exist for private sector actors in emergency situations. The overriding goal of humanitarian assistance must be direct and positive impact on the needs of the beneficiaries, regardless of any direct or indirect gains that a company may obtain. 2. Risk analysis In all cases, it is essential to undertake a risk assessment for Oxfam and for the project before entering into any engagement with businesses and market actors and systems. The risk assessment will take different forms depending on the type of actor(s) the project engages with (small, medium and large) and the purpose and form of the engagement. It is crucial to assess the risk to Oxfam of any proposed engagement with companies / big business before committing to that engagement. Any type of engagement with a company comes with an element of risk to it, with greater risks attached to the closer and more developed forms of engagement, such as programmatic partnerships, as well as from the fundraising and philanthropy space, where Oxfam is often publicly associated with a brand. Risks may involve reputational damage to Oxfam s brand, should we partner with a company later found to be engaged in irresponsible activities elsewhere in its business operations, or may involve a business partnership bringing Oxfam into a conflict of interest, if we partner with a company engaged in activities that are, or will be, the subject of wider Oxfam advocacy work. It is therefore essential to have a clear risk assessment process in place before entering into any engagement with business, and this should be done through Ethical Check. The process to follow is detailed in the OI Guide to working with the private sector. For each affiliate, purchase procedures and guidance detail risks to be analysed to engage with service providers / 3 rd parties; The CTP SOPs detailed specific risks to be analysed for cash transfer programming and engagement with third parties, like traders and market actors (in particular refer to Risk Exception to the OI Security Protocol, Approved April 25th 2011 by the OI HR Taskforce. Financial services Programme Policy Ethical check process: refer to OI Guide to working with the private sector EC guidelines (for Ethical Check and engagement with Private Sector) CTP SOP EMMA, Chapter 9, page 165. Campaigning; Contracting or service provision; Direct support.

21 assessment form); Market assessment approaches (like EMMA, MIFIRA...) analyse the risk of response options on market actors and people s access to market, in particular through potential price negative evolutions and other market disruptions. 3. Local procurement. Standard 8: where relevant and feasible, Oxfam will favour local procurement where it can contribute to economic activity / recovery, and it does no harm to markets, economy people s lives and livelihoods. While standard procurement procedures within Oxfam affiliates might not explicitly prioritise local procurement, they will allow local procurement where analysis concludes that it is relevant, feasible and will contribute not only to the projects aims but also to economic recovery / strengthening. In those cases, the project will then also intend to support local economy recovery and aim at spreading the economic impact of the business (purchase order) over a number of small scale traders/3 rd parties in the implementation area. In that case, it is recommended to engage with Logistics and apply the standard procurement procedures with the provisions detailed here: Within the standard procurement procedure, the criteria building on local markets should becomes a first order criteria, allowing the splitting into a number of orders and subsequent contracts. The tender then considers the total amount per trader. This allows the qualification of non formally registered small-scale traders/3 rd parties; Logistics will support small-scale traders / 3 rd parties in producing quotes when and where needed; The size of each individual order and the number of orders will be concluded from the market assessment and the understanding of local traders /3 rd parties capacity. Splitting the order might require internal and external waivers / derogations before the procurement process is initiated. The requirements specific to the situation will be advised by Logistics; This will not prevent a competitive process. Advertisement of the tender should allow traders to access the information. Procurement rules derogations: where the project will aim also at benefiting the local markets, derogation might be required to allow splitting orders between a number of suppliers / traders.

22 4. Engaging with local third parties. Third parties might be identified for the provision of cash/goods/services. A third party can be a financial institution (from big banks to local micro-finance institutions), a mobile company, a post office or a trader. In addition, the project might support traders / market actors because they have been affected by the crisis and need to recover their economic activities (called market support ). This will happen where analysis has concluded that support to these traders/third parties will benefit the target group: by strengthening market functioning and by contributing to the availability of basic goods and services for the target group. As a consequence, third parties have 4 types of roles: Case A: third parties deliver cash to target groups; o Case A1: third parties do not receive market support; they are considered as cash / goods /service providers; o Case A2: the third parties are cash delivery agent as well as beneficiaries of market support; they are then considered as beneficiaries; Case B: third parties supply goods/services to the target groups in exchange of cash or commodity vouchers; o Case B1: the third parties do not receive market support; they are considered as cash / goods /service providers; o Case B2: the third parties are beneficiaries of market support, and at the same time, they provide goods/services to the target group, against vouchers, as a conditionality to the support they receive; they are then considered as beneficiaries; Case C: The third parties are beneficiaries of market support. There might be conditionalities, but cash delivery or commodity/service supply is not a condition of the support they receive. This will happen where analysis has concluded that support to these third parties will strengthen market functioning and contribute to the availability of basic goods and services for which the target group is receiving cash grants or CFW. They are then considered as beneficiaries; Case D: the third parties supply goods. The third parties are from the country or the nearby regions / districts. If local traders have the capacity, then other modalities (above) will be chosen. They are considered as cash / goods /service providers;