Market Analysis in Emergencies: From Harm to Home

From Harm to Home Market Analysis in Emergencies 1

From Harm to Home True or False? There is no need to analyze markets when we already have pre-positioned stock in warehouses. In an emergency there is barely time to asses the needs let alone the markets. Analyzing markets requires a sophisticated skill set and our organization does not have the capacity. 2

From Harm to Home Market systems matter Ensuring survival Providing essential items or services to meet basic needs Protecting livelihoods Providing tools, agricultural inputs and services, or replacing other livelihood assets Providing jobs and opportunities for wage labour, or linking to buyers for their produce 3

From Harm to Home Market Based Programming Market Integrated Relief Market Indirect Support Through Markets Strengthening and Development Objective: economic recovery, improvement in income & livelihoods Objective: meet basic needs (food security, etc.) Objective: meet basic needs through temporary interventions that restore markets Market Indifferent Activities: Support to productive and sustainable agriculture Employment creation financial services Supply and value chains Productive assets Enterprise development Activities: Targeted support to market actors (grants, loans, transport subsidies, temporary storage) Support to supply Activities: Local and regional food purchase Cash and vouchers Seed fairs 4

From Harm to Home Market Analysis Approaches Different tools, but common characteristics Focus on market systems for specific items/services Evaluate capacity of market to deliver sufficient quantity of those items to meet needs Links market functioning to different types of emergency responses Three popular market analysis tools: MIFIRA Framework RAM and MAG EMMA Toolkit 5

From Harm to Home Market Information for Food Insecurity Response Analysis (MIFIRA) Framework Specific to food markets Decision tree: 1. Are food markets functioning? If yes cash/voucher 2. If no is food available nearby? To evaluate local/regional procurement or transoceanic shipment of food Cornell University, Tufts University, CARE Barret et al, 2009 6

From Harm to Home Rapid Assessment of Markets (RAM) Seeks to rapidly understand if cash-based interventions are market-appropriate Evaluates if markets can provide: Volume of the goods affected households need At the appropriate time At stable prices Market Analysis Guidelines (MAG) provide guidance for further in-depth analysis Developed by Red Cross Movement 7

From Harm to Home Emergency Market Mapping and Analysis Toolkit (EMMA) 3-strands of analysis Market maps are the main tools Purpose: to identify the most appropriate responses based on market functioning and household need Direct and indirect responses Markets Responses Gaps Program Options and Recommendations 8

From Harm to Home EMMA s core logic Past Present Future Baseline Impact Forecast 9

From Harm to Home Baseline market map Beans, Haiti The Market Environment: Institutions, Rules, Norms & Trends RISING FUEL COSTS OBSTRUCTIVE TRADE LICENCE RULES SEASONAL EMPLOYMENT PATTERNS CORRUPTION OF MARKET OFFICIALS LARGE IMPORT TARIFFS RESTRICTIONS ON WOMEN S ACCESS TO MARKETS POLICY GROWING UNRELIABILITY OF RAINFALL WEAK FARMER ORGANISATION OBSTACLES TO FOOD TRADING The Market Chain: Market Actors & Their Linkages URBAN RETAILERS URBAN HOUSEHOLDS IMPORTER / WHOLESALER IMPORTS FROM U.S.A. DISTRICT TRADERS VILLAGE TRADERS LANDLESS RURAL HOUSEHOLDS PROVINCIAL TRADERS IMPORTS FROM DOMINIC. REP. RURAL HOUSEHOLDS WITH LAND WOMEN S GARDEN PRODUCTION COMMERCIAL FARMERS RURAL ROADS AND BRIDGES CASUAL LABOURERS INFORMAL CREDIT WAREHOUSING STORAGE Key Infrastructure, Inputs & Market Support Services LEASING OF TRUCKS FARM INPUTS BUSINESS LOANS 10

From Harm to Home Emergency-affected market map Beans, Haiti The Market Environment: Institutions, Rules, Norms & Trends RISING FUEL COSTS OBSTRUCTIVE TRADE LICENCE RULES SEASONAL EMPLOYMENT PATTERNS CORRUPTION OF MARKET OFFICIALS LARGE IMPORT TARIFFS RESTRICTIONS ON WOMEN S ACCESS TO MARKETS POLICY GROWING UNRELIABILITY OF RAINFALL WEAK FARMER ORGANISATION OBSTACLES TO FOOD TRADING The Market Chain: Market Actors & Their Linkages URBAN RETAILERS URBAN HOUSEHOLDS IMPORTER / WHOLESALER IMPORTS FROM U.S.A. DISTRICT TRADERS VILLAGE TRADERS LANDLESS RURAL HOUSEHOLDS PROVINCIAL TRADERS IMPORTS FROM DOMINIC. REP. RURAL HOUSEHOLDS WITH LAND WOMEN S GARDEN PRODUCTION COMMERCIAL FARMERS RURAL ROADS AND BRIDGES CASUAL LABOURERS INFORMAL CREDIT WAREHOUSING STORAGE Key Infrastructure, Inputs & Market Support Services LEASING OF TRUCKS FARM INPUTS BUSINESS LOANS 11

From Harm to Home Why wait until disaster strikes? Pre-Crisis Market Analysis Understanding how markets function at baseline Use hypothetical disaster scenarios Estimate how markets will respond to the shock Guidance currently being developed by the IRC and Oxfam 12

From Harm to Home Market-based DRR and preparedness programming Risk Reduction Identify and strengthen weak points in market systems Support traders to improve resilience of own supply chains Preparedness Pre-selection of response mechanisms Market early warning systems inputs from traders on prices, volumes, etc. Building staff capacity 13

From Harm to Home Linking program and logistics teams Logistics personnel know the markets the actors, infrastructure, prices, policies and customs, etc. Strengthening market supply chains better cash or voucher programs Pre-positioning agreements with traders or voucher shops, operational SOPs, vouchers, etc. Mainstreaming market-sensitive approaches across all sectors 14

From Harm to Home EMMA Toolkit www.emma-toolkit.org Markets in Crises Community of Practice www.dgroups.org/dfid/mic 15

From Harm to Home Gregory Matthews Sr. Technical Advisor for Economic Recovery gregory.matthews@rescue.org 16