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 Conclusion FindingsRecommendations 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

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