Livelihood Strategies

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1 Livelihood Tools

2 Livelihood Strategies Combining: the assets they can access Taking account of: the vulnerability context Supported or obstructed by: policies, institutions and processes.

3 Research. Rethink. Resolve. Conflict Displacement Return Asset Preservation Cash /food for work Agrarian interventions Micro-finance Small & medium enterprise development Asset Building Asset Replacement Vocational Training IGAs Relief Substitution Micro-Finance

4 Training and Placement Programs Labor market assessment Duration - focus on developing competence Pre-counseling Certification Apprenticeships Job Placement Transferrable skills

5 For-Work Programming Food for work/cash for work Most appropriate during postconflict reintegration Transition from dependence on aid to self-sufficiency Asset and infrastructure building projects that serve the entire community Cash injections to revitalize markets

6 Building in-camp Economies Relief substitution Incentive work

7 Supporting Agrarian Interventions Land, water, & market access Crops/ seeds & tools Agro-forestry Livestock/ poultry Aquaculture Beekeeping

8 Micro-finance Interventions Requires expertise Don t create parallel programs Link with appropriate support/bds Not a panacea/ substitute for grants Tricky with displaced populations Most requested service safe place to save Range from very informal RoSCAs, VSLAs, to MFIs Range of products

9 Enterprise Development Development of businesses - micro- meso- and/or macrolevels Fostering growth of the private sector Focus on economic recovery employment creation Might include cash grants, in-kind grants, technical assistance, improving labor supply, linkages with new markets

10 Doing it Right 1) Conduct market assessments what are the market needs, where are the opportunities 2) Enhance both market demand and labor supply 3) Focus on asset building and diversifying livelihood strategies 4) Measure interventions according to indicators that include well-being of household

11 Research. Rethink. Resolve. Designing a Livelihood Intervention Livelihood Framework Assessments Situation Analysis Market Analysis Interventions

12 Steps how do we do it right? Situation Analysis Participatory Needs Assessment Conflict Analysis Market Analysis Market assessment Labor Market Assessment Value Chain Analysis

13 Situation Analysis The process of assessing a complex situation within its wider context, systematically gathering information, identifying the main problems and needs within a population, identifying the principle resources contained within that population, and analyzing the information gathered in order to facilitate the process of planning in a systematic, strategic and integrated manner.

14 Goal: Assessment of the situation Identify the main needs, problems and resources. Assess the impact of the conflict (conflict analysis). Identify and consult the different stakeholders. Consult the target population (participatory needs assessment). Consult existing secondary information sources. Situation Analysis

15 Goal: Understand the way in which conflict impacts livelihoods and longer term sustainability. Conflict analysis entails assessing whether a program may perpetuate or renew the conflict Conflict Analysis

16 Participatory Needs Assessments Goal: Identify the livelihoods priorities of beneficiaries and of the surrounding community. Identify existing skills, experience and resources Identify current economic coping strategies

17 The market analysis process involves conducting: 1) a market assessment; 2) a labor market assessment; and 3) value chain analysis

18 Market Assessment Market assessments identify supply and demand for goods and services, the viability of occupations and enterprises, and market capacities and trends in the local community

19 Questions to include in a market assessment are: What priority goods and services are available? Which goods are bought most often? How has conflict affected the availability and the purchase of these goods? Where do people buy goods? How many buyers are there in a market compared to sellers? Are wholesalers and traders able to respond to an increase in demand for their goods? What are the government policies and restrictions that affect the market economy? What is the rate of inflation?

20 Programs must look at barriers to market access. Assessing the barriers - physical and institutional that prevent a population from accessing a market is imperative to the success of an intervention

21 Market Simulation

22 Labor Market Assessment

23 Value Chain Analysis Is a market analysis tool used to assess how products gain value as they pass through the range of activities needed to bring a product to market.

24 Mapping the value chain: Clarifies market actors Defines relationships among suppliers, producers, and consumers Enables practitioners to identify the most appropriate livelihoods intervention based on where the value chain can be strengthened

25 What are the components of a VC map? Enabling Environment Research. Rethink. Resolve. 2 Supporting Services Poor Infrastructure Legal Environment Low Rainfall 3 Inputs Transportation Financial Services Rural Consumers Wholesalers Traders Processors 1 Urban Consumers Consumption/ End Market Retail Processing Collection/ Transport Information Producers Small Scale Producer Associations Medium Scale and Commercial Producers Production 25

26 Research. Rethink. Resolve. Rice Value Chain

27 Value Chain Analysis

28 Value chain analysis exercise