Making Use of Existing Structures – Post-disaster Market Systems in Action

HELVETAS Swiss Intercooperation

Key Messages

• Humanitarian relief effort should strengthen the local market system, but not further deteriorate its capacity to recover.

• Important to assess the market’s functionality

• Assessment guides the transition of emergency material distribution to market led recovery initiatives.

• This transition should be made as early as possible.

• Context specific approaches

Markets

Market Assessment

1. Livelihood- Dairy, poultry and paddy seed

were damaged- Khumal-4 paddy seed required- 20 irrigation schemes damaged

(930 households, 672 ha)

2. Drinking water and sanitation- 32 drinking water schemes

(3,057 households)

• Rapid market assessment done• Brief study of value chains (paddy seed)

To assess the capacities of the market to supply goods needed by the affected population

Assessment ConclusionFindings Recommendations

• Road network and connectivity intact

• Business networks and relationships exist (wholesalers-traders-retailers)

• Confidence is there to revive the business

• Relief material supplies from different agencies (mainly food and temporary shelter)

• Lack of working capital, stock was damaged

• No credit facility • Prices increasing

• Use local existing market• Purchase locally as far as possible• Mobilize existing local community

organizations (cooperatives, self-help groups, VDCs, local relief distribution and management committees)

• Introduce voucher system (seed distribution)

• Reaching the survivors: Increasing access with relief materials

• Do no harm Conflict sensitive programme management No discrimination

• Making use of existing structures Mobilize local market actors

• A mixed approach Direct intervention Market facilitation

• Coordination Relevant government authorities Development organizations

Guiding Principles

1. Mediated the supply of immediately required materials locally and outside to avoid a supply gap

2. Facilitated and revived the local market system through continued linkages

3. Capacity enhancement to operate/establish local supply mechanisms

Intervention Strategies

Case 1: Seed distribution• Voucher system• Use existing distribution structures• Collaboration - local cooperatives, self-help

groups, village development committee secretaries, and local transport entrepreneurs

• Distribution and quality assurance-District Agriculture Development Office

• Facilitation - linkage, network, capacity development of market actors

Need identification

Product selection and

quality assurance

Voucher issued to needy farmers

Seed distribution and

monitoring

Response Intervention

Case 2: Local procurement of water, sanitation and hygiene relief

• Identification and capacity assessment of local market actors

• Imparted skills to local women and men to install or repair

• Traders, hardware suppliers, local transport entrepreneurs, and local government authorities involved

• Market actors regain their confidence and local employment generated

Response Intervention

• Worked well Early involvement and active

participation of community networks

Participation of different market actors

Make use of existing structures

• Did not work well Did not provide sufficient time as

per expectation from VDC authorities due to their busy schedule for emergency management

Lessons Learnt

• Could have done better Traders or agro-cooperatives –

leverage point - seed procurement, distribution, and follow-up

Community procurement-WASH items - direct cash transfers or through vouchers

• Limitations Local traders and agro-cooperatives -

limited capacity to respond to the local demand – weak linkages, procurement compliances/billing in purchase

Quality assurance and continuity of supplies

Lessons Learnt

Thank You!