Program design considers working with all market actors as a means to improve vulnerable households’ livelihoods. Programs effectively communicate the program objectives, means of selection, and outcomes to all stakeholders .7
Key Indicators (Read in conjunction with the guidance notes):
- Project design evaluates the role of existing and historic market actors and considers input from all categories of market actors
(see guidance note 1). - Programs evaluate and account for the impact of gender, ethnicity, disability, youth, and other factors on people’s economic access and opportunity
(see guidance note 2). - Project activities targeting vulnerable groups aim to enable them to contribute to, and benefit from, market activities, rather than seeking to redistribute existing projects
(see guidance note 3). - Project activities targeting vulnerable groups communicate their intent and planned actions to all groups of market actors
(see guidance notes 3 and 4). - Program objectives and activities are communicated to all stakeholders in order to differentiate economic recovery projects from other relief activities
(see guidance note 5). - Programs assess the risks for corruption and address these risks by monitoring program activities/mechanisms to promote accountability
(see guidance note 6).
Guidance Notes:
1. Role of market actors: Programs will have greater impact over a longer period of time if economic recovery strategies quickly engage historic market actors in the project. Programs should be based upon a system-wide understanding of how the impacted market operates—both in terms of power relationships and governance, as well as the role of each market actor prior to and following the crisis. This can be insured by actively seeking input and cooperation from all market actors for mapping their relationships and activities, while identifying the constraints and opportunities to recovery.
Agencies may be reluctant to work with certain market intermediaries, perhaps due to a perception that the intermediaries profit from a crisis situation or concerns about the constituencies they represent. This is a particular concern in conflict environments. However, if 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.
2. Gender roles: Local context and culture play a significant role in defining how different people interact in the market, based on their gender, ethnicity, ability status, and age. Power structures within families and societies create various opportunities and restrictions on 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 program ignores women’s historic roles in family economic activities and tries to rewrite these traditional roles, the project may invite opposition from both men and women.
3. Promoting inclusive recovery transparently: Even though not all market actors will be involved directly in a project, information travels quickly in markets. Incomplete information or rumors may cause some actors to perceive a threat. Programs should aim at enabling their target group to benefit from their economic activities, rather than seeking to redistribute existing profits, which creates an “us versus them” mentality. Projects can mitigate potential opposition and promote collaboration by clearly communicating their intent to serve vulnerable groups and expand existing markets while respecting healthy competition. Accordingly, operations should avoid unnecessarily subsidizing market sectors or actors, particularly if this threatens existing actors’ businesses. 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. Identifying market communication channels: Despite the apparent chaos in 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. Relief and recovery efforts may take place at the same time and to the same communities, although the needs and timing for different portions of an affected population may differ. Given a population’s complex needs, programs undertaking interventions with a goal of providing relief assistance or promoting economic recovery should have a clear understanding of the local context to ensure appropriate programming and transparency in activities.
6. Mitigating risks of corruption: Corruption is the abuse of entrusted power for private gain.8 Economic recovery programs need to assess and understand potential risks of corruption, particularly in interventions involving money or asset transfers, but also in lower-profile activities, such as the involvement in the grey economy or power relationships in different economic activities that may be promoted. Interpretations of what acts constitute corruption differ according to contexts, cultures, and individuals. For example, kinship and social networks may play a greater role in business interactions than in Western cultures, where “kickbacks” and hiring or making purchases through relatives are considered normal practice—even ones that ensure the quality of goods and services. Crisis responders need to take these different perceptions into account when identifying corruption risks. To the extent possible, preparedness for crisis should take into account corruption risks, by developing policies and procedures, particularly regarding the transfer of funds or goods—since in the early stages of response there will be little time to develop policies. In the course of a response, monitoring is key to verify the usefulness of systems that detect and deter corruption—and generally to ensure program quality and accountability.