Markets Based Programming. From emergency to long term food security & livelihoods programmes

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Valentine Newman
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1 Markets Based Programming From emergency to long term food security & livelihoods programmes Jo Zaremba 15 November 2012

2 Content Oxfam Strategy Turkana Case Study Pitfalls & risks Discussion questions How can market assessments and interventions build foundations for long-term / resilient programming Page 2

OXFAM Livelihoods Framework (HECA) Government Private Sector

Sustainable Livelihoods GEM Programmes Long Term Chronically

stable & Fair & Equitable Markets Women s empowerment Natural

3 OXFAM Livelihoods Framework (HECA) Government Private Sector Civil Society Safety net / Social Protection Programmes Sustainable Livelihoods GEM Programmes Long Term Chronically Vulnerable & Productive & Affected by shocks Wealthier more stable & Fair & Equitable Markets Women s empowerment Natural Resource Management, DRR, CCA Survival threshold Livelihood threshold

4 Turkana Page 4

5 Turkana Story-line from EFSL SL When What 2006 HEA Baseline & Market Assessment Recommended cash programming & market support ECFF /OxAus Food Vouchers & Food supply through traders Trader capacity building Substitution of local fish-protein for food-aid proteins 2008 HSNP - Cash distributed through traders (DFID) 2011 Drought / Crisis: (OFDA & others) -Market Assessment -CASH through traders -CfW -Trader support to stock up and to distribute cash ASAL Strategy & Markets programmes (EC & OFDA) -Fish market & one other -Market / demand analysis, Market system mapping -Oxfam as facilitator; work with PS; power in markets -Safety Net programme Page 5

businesses grew More stock available in Turkana Replication (due to increased money supply & examples) by other

6 Improved availability of food (less queuing, smaller quantities easier to carry, better storage in shops etc.) Increased money supply Developed pull or market for fish prouction Built trader skills / capacity Traders businesses grew More stock available in Turkana Replication (due to increased money supply & examples) by other traders More livelihoods & employment options (boat building, nets) Distribution costs go to local community (more local income) Page 6

7 Intervention: Unconditional cash grants to 5532 hh through traders One off grant to all participating traders to increase their stocks (+ 2% admin fee for cash disbursement). Trader Support Programme including Business Training, Exposure Visits, Market Monitoring Page 7

8 What Worked Well Working with the Private sector: TRADERS Banks / Telcomms Understanding & addressing market needs. Being opportunistic & turning crisis into opportunity for mkt dev; Devising innovative NEW approaches in crisis; INFLUENCING donor community;

Challenges Market distortion through price setting (vouchers) Concentration of POWER in a small elite (middle / larger trader cartel ) Income generation versus business

9 Challenges Market distortion through price setting (vouchers) Concentration of POWER in a small elite (middle / larger trader cartel ) Income generation versus business development too many small shops doing exactly the same! Internal (Oxfam) attitudes & approaches & blockages Systemic issues (e.g. Transport) have not been addressed Page 9

Lessons Learned Market assessments and programming that build foundations for resilient long-term programmes need: Market SYSTEM analysis

10 Lessons Learned Market assessments and programming that build foundations for resilient long-term programmes need: Market SYSTEM analysis POWER in Markets ACT as FACILITATOR Multi-stakeholder approach Working PRIVATE SECTOR Safety Nets Governance Women s Empowerment LEVERAGING Change

t Building POWER in Mkts Safety Nets Governance

11 development) Market / Sector Selection Demand Analysis Market System Analysis Market Access dev t Building POWER in Mkts Safety Nets Governance Empower Women Resilient Sustainable Livelihoods Page 11

Design programme Implementation and monitoring Develop F partnerships and engage Develop new stakeholders market E chains or business Develop

12 ? Questions for Discussion? When IS an area ready for M4P / Power in Markets approach? How do we PREPARE an area for markets based programming? What are the risks of transitioning towards markets based livelihoods programming? Design programme Implementation and monitoring Develop F partnerships and engage Develop new stakeholders market E chains or business Develop model new market chains or business model G D H C Gendered market mapping Situational analysis prod. system A B Situational analysis household system Sector or market opportunity identification Page 12

13 Page 13

HEA 2006 Showed that: Rather than the expected livestock, there were three main sources of food available to most pastoral households, which were of roughly equal importance: The main staple was

Lakeshore economy of 8 10,000 people reliant on FISH which is traded consumption like pastoralists.

14 HEA 2006 Showed that: Rather than the expected livestock, there were three main sources of food available to most pastoral households, which were of roughly equal importance: The main staple was maize, much of which is purchased through barter of goats. The second major source of maize was food aid. The third source of food was from wild foods. Lakeshore economy of 8 10,000 people reliant on FISH which is traded consumption like pastoralists. POVERTY is deeply entrenched & not just manifested by drought; Livestock = important for LH but not the ONLY LH activity Market Assessment 2006 showed: Markets are poorly integrated, terms of trade low, supplies don t meet demand, prices are high compared to rest of Kenya. HOWEVER traders reported profitability. CASH programming would need to be accompanied by: increase in marketed supply; promotion of small-scale traders. Recommendations: CASH Based Safety Net programme (Cash / CfW / Vouchers) Meet basic food needs Increase money supply IMPROVEMENT in Market system Improve terms of trade Strengthen traders Improve Infrastructure Address political marginalisation Note FISH not studied in Market Assessment! Page 14

Terms of Reference. Innovative Models of Livelihood Interventions in Diyala and KRI

Terms of Reference. Innovative Models of Livelihood Interventions in Diyala and KRI Terms of Reference Household Economy Analysis (HEA) and Baseline Assessment for Building Resilience through Innovative Models of Livelihoods and Market Interventions in Iraq Organization Oxfam GB Country