Program design considers using all market actors as a means to improve the vulnerable households’ livelihoods. Programs effectively communicate the program objectives, means of selection, and outcomes to all stakeholders.⁶

Key Indicators (to be read in conjunction with the guidance notes):

• The role of existing and historic market actors has been evaluated and mapped, and project design considers input from all market actors (see guidance note 1).
• Gender roles, and their impact on economic access and opportunity, are evaluated and accounted for in the project’s design and implementation (see guidance note 2).
• Project activities are directly communicated to market actors, regardless of their involvement with implementation (see guidance notes 3 and 4).
• Economic recovery projects are differentiated from other relief activities (see guidance note 5).

Guidance Notes:

1. Role of market actors: Importers, local buyers, resellers and small market vendors play a key role in the markets necessary for economic recovery in disaster settings. Program objectives will have greater impact over a longer period of time if historic market actors are quickly involved in the project. During the program design stage, agencies should actively seek input and cooperation from all market actors by mapping their activities. This will deepen an understanding of positions of power; how each actor engages with the market; what their contributions are to the functioning of the market; and how they engage with other actors in the market. This information can be essential to successfully completing the project and effecting long-term reconstruction. Agencies may be reluctant to work with intermediaries because of the perception that intermediaries profit from a crisis situation and concerns as to the constituencies they represent. However, if these market actors are ignored or sidelined, rehabilitation may be delayed, since relief agencies will not be able to tap into local, regional, and national markets or benefit from the opportunity to leverage resources and expertise. Given this agencies should engage, but with an awareness of power dynamics, particularly in conflict environments and how these dynamics can be positively influenced via economic incentives.

2. Gender roles: Local context and culture play a significant role in defining how men, women and children interact in the market. Power structures within families and societies create various gender-based opportunities and restrictions to an individual’s access and opportunities within the market. The impact of these structures must be understood, and the project must respond appropriately, by taking roles into account and seeking or reinforcing incremental change.

Example: In some cultures women commonly sell goods in local or regional markets, while in other cultures women are essentially restricted to home-based activities. If a project ignores women’s historic role in family economic activities and tries to completely rewrite traditional roles, the project may invite opposition from both men and women.

3. Transparent communication: The goal should be for the program and the target group to add value to the market as a whole through growth, rather than creating an “us versus them” mentality. Projects can minimize such opposition by clearly communicating its intent to serve vulnerable groups and expand existing markets while at the same time promoting healthy competition. Accordingly, operations should avoid unnecessarily subsidizing market sectors which could quickly create a legitimate market threat to existing actors. Even though some market actors will not be involved directly in the project, the marketplace is extremely small – especially in disaster situations – and incomplete information or rumors may cause some actors to perceive a threat. By listening to concerns from all market actors and communicating the project’s targets and methods, the project can avoid unnecessary opposition. Finally, partner selection needs to be transparent and communicated clearly, in order to maintain trust and coordination among market actors, whether or not they participate in the project.

4. Market communication channels: Despite the apparent chaos of disaster settings, markets are usually organized to some degree. By identifying market leaders, trade sector representatives, and significant business investors, implementers can more efficiently distribute project information and identify potential partners. For example, nearly all markets have a president or a lead representative who communicates regularly with the representative of the trade sectors present in the market. These established communication channels provide efficient means for disseminating and capturing necessary information.

5. Differentiating economic recovery from relief work: Programmatic objectives should be clearly defined and communicated to all program stakeholders to set appropriate expectations. Efforts aimed at providing relief are not necessarily exclusive from efforts to promote early recovery, since within crisis environments affected populations may still require some forms of relief while engaging in activities to revitalize their livelihoods. Similarly, the needs and timing of these needs for different portions of an affected population may differ. Given this complex interplay of needs by affected populations, programs undertaking interventions with a goal of providing relief assistance or of promoting economic recovery should have a clear understanding of the local context to ensure appropriate programming and transparency in activities. This will help to ensure that programs are successful and are realistic in targeting and the outcomes that can be achieved.