Livelihoods and employment Disaster Impact and Recovery Needs. Training of Trainers on Post Disaster Needs Assessment February 15th, 2012 Vienna
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1 Livelihoods and employment Disaster Impact and Recovery Needs Training of Trainers on Post Disaster Needs Assessment February 15th, 2012 Vienna
2 Part I Livelihoods assessment: key concepts
3 Understanding the concept of livelihoods KEY CONCEPT: LIVELIHOODS Livelihoods consist of the capabilities, assets and activities from which individuals and households make their living. Livelihoods usually lead to flows of income and consumption, the outcome of which are expressed in the household s standards of living. Livelihoods depend on the employment of labour, the use of assets and, in some cases, on income transfers.
4 Understanding the concept of livelihoods KEY CONCEPT: LIVELIHOODS Livelihoods consist of the capabilities, assets and activities from which individuals and households make their living. Livelihoods usually lead to flows of income and consumption, the outcome of which are expressed in the household s standards of living. Livelihood outcomes The ultimate outcome is to achieve the preservation of the household and to rear the next generation with a desirable quality of life. This can be related to the capacity of households to satisfy their elementary human needs, such as nutrition, water, health care, shelter, clothing, sanitation, and others. Livelihoods depend on the employment of labour, the use of assets and, in some cases, on income transfers.
5 Understanding the concept of livelihoods KEY CONCEPT: LIVELIHOODS Livelihoods consist of the capabilities, assets and activities from which individuals and households make their living. Livelihoods usually lead to flows of income and consumption, the outcome of which are expressed in the household s standards of living. Livelihoods depend on the employment of labour, the use of assets and, in some cases, on income transfers. Employment of labour Family labour may be employed to obtain income, or devoted to housework. Use of assets Assets can be represented by the following categories: Human capital, natural capital, social capital, physical capital and financial capital Income transfers Transfers include social security (old age and disability pensions, family allowances, food assistance, etc.), and remittances.
6 Part II General sequence of the assessment
7 Assessing the impact of disasters on livelihoods MAIN OBJECTIVE The main objective is to provide a thorough assessment of the impact of a disaster on livelihoods and identify opportunities and capacities for recovery at household, community and local economy levels. THE CONSEQUENCES OF DISASTERS Disasters destroy or affect people s livelihoods. The impact can be summarized through the damage and/or destruction of assets on which livelihoods depend, and the losses derived from the deprivation of income flows. Damages The assessment of damages include: The destruction of assets (human, natural, physical, social and financial) such as workshops, factories, market stalls, tools, crop fields, livestock, etc. Losses The assessment of losses include: The loss of employment (whether temporary or permanent) The reduction of income flows (whether related to labour or not) Needs Temporary income support for vulnerable households whose livelihoods were affected Creation of temp. employment through Employment Intensive Investment Programmes (EIIP) Introduction of UCT and CCT programmes
8 From assessing the impact to planning recovery Completed between 40 to 90 days after disaster Revised Flash Appeal /Early Recovery Donors Conference Livelihood + Sectoral Assessment Natural hazard Livelihood baseline Initial Livelihood Impact Appraisal (1-7 days to complete) Completed between 2 to 14 days after disaster Initial Flash Appeal Livelihood Strategy and Sector specific project/programme formulation Assessment preparedness Rosters, training, partnerships, funding.
9 Assessing the impact of disasters on livelihoods The effects of the disaster on the capabilities, assets and activities of households are a result of the impact on the various sectors (social, productive and infrastructure). PDNA Social sectors Education, culture, sports Health Housing Productive sectors Goods: agriculture Services: commerce, tourism, etc. Infrastructure Transport and communications Energy Water and sanitation CROSS-CUTTING ISSUES Employment and social conditions Macroeconomic assessment Environment Gender
10 Part III Assessment data
11 Step 1: Establish the livelihood baseline The BASELINE INFORMATION reflects the situation before the disaster Types of livelihoods Livelihoods are based on the combination of sources of income in a household Key variables Types of employment Peasant farming Non-farm self-employment Wage labour (regular, casual, formal, informal) Income transfers (nonlabour) Property income (rent, interests, sharecropping, etc) Social security (old age and disability pensions Remittances from diasporas
12 Step 1: Establish the livelihood baseline The BASELINE INFORMATION reflects the situation before the disaster Typical baseline data sources for livelihoods Areas of coverage Updating baseline information Focused on households: Population census Household and labour force surveys Social security records Qualitative livelihood studies (zones, types) Focused on units of economic activity: Agricultural census and surveys Economic censuses and surveys
13 Step 1: Establish the livelihood baseline The BASELINE INFORMATION reflects the situation before the disaster Typical baseline data sources for livelihoods Areas of coverage Updating baseline information Census data Universal coverage Provide small area resolution (villages, districts, sub districts) Survey data Sample Usually provide wide area resolution only (regions, provinces) Disasters frequently hit specific areas, not entire regions or provinces Census data are needed to quantify features of the specific disaster area
14 Step 1: Establish the livelihood baseline The BASELINE INFORMATION reflects the situation before the disaster Typical baseline data sources for livelihoods Areas of coverage Updating baseline information Update population numbers and composition Consider differences between urban and rural population growth Consider refugee movement since last census Also Update should be based in recent information (5 years) Use UN population projections for entire country Use national projections for provinces and areas Update labour market numbers Consider changes in labour participation rates (by sector, age and sex) Consider change in employment structure
15 Step 1: Establish the livelihood baseline Example Sectoral distribution of employment before the disaster Public sector Total Sex Age Affected areas Male Female 15 to to n Private sector Formal Informal Total Social sectors Infrastructure sectors Economic sectors Housing Education and cult. Health Energy WASH Transp and comm. Agriculture Trade and industry Tourism
16 Step 2: Estimate the impact on livelihoods Data available on impacts Damages reports (official, field work estimates) Income losses per sector (official, field work estimates) Absolute numbers Area of standing crops destroyed by the disaster Dwellings destroyed in a neighborhood Relative proportions Percentage of market stalls destroyed in some representative market places within disaster area
17 Step 2: Estimate the impact on livelihoods Use of proxies For permanent loss of employment May be based on the destruction of workplaces and productive assets: Direct estimation: field work on % of workplaces destroyed Indirect estimation: estimated from other proxies (e.g. percentage destruction of dwellings) Direct proxy: Workplaces Proxy for jobs For sector X and area A: [ # of jobs lost = baseline jobs * % of workplaces destroyed ] Indirect proxy: Dwellings Proxy for workplaces Proxy for jobs For sector X and area A: [ # of jobs lost = baseline jobs * % of dwellings destroyed ]
18 Step 2: Estimate the impact on livelihoods Use of proxies For loss of income flows FOR WAGE WORKERS Note: Some wage workers affected may continue receiving their wages even if not working after the disaster (e.g. public sector employees) Wage workers: For sector X and area A: [ Income loss = # of workers affected * average wage (per day) * working days lost ]
19 Step 2: Estimate the impact on livelihoods Use of proxies For loss of income flows FOR NON-FARM SELF-EMPLOYMENT May be based on the number of microenterprises affected and the average income loss per microenterprise Non-farm self-employment For sector X and area A: [ Income loss = # microenterprises affected * average income loss ], where: [ # microenterprises affected = % of microenterprises affected (FIELD WORK ESTIMATE) * # of households with non-farm self-employment ] [ average income loss = average baseline income of microenterprises * working days lost ]
20 Step 2: Estimate the impact on livelihoods Use of proxies For loss of income flows PEASANT FARMING Peasant farming: For sector X and area A: [ Total smallholders income loss = reduction of smallholders revenue due to disaster ] [ # of smallholders affected = cultivated area affected / average cultivated area per farm ] [ Income loss per smallholder = total smallholders income loss / # of smallholders affected ]
21 Part IV Livelihoods recovery needs assessment
22 Livelihoods recovery Recovery of employment and livelihoods is a result of general post disaster economic recovery Disasters cause a reduction in employment and livelihoods Needs assessment leads to an investment program to produce economic recovery in the area Economic reactivation and growth imply growth in jobs and incomes until catching up with previous conditions and beyond Post disaster investments and economic strategy should aim at maximizing inclusiveness, job creation and build up of sustainable livelihoods
23 Objectives: for what shall we aim in a PDNA process? Immediate relief Ensure access to basic goods and social services, i.e. food, health, etc. Restore livelihoods to the most vulnerable temporary measures Coordinate emergency actions and interventions Recovery of pre-disaster conditions Natural hazard Recovery phase Relief phase
24 Objectives: for what shall we aim in a PDNA process? Immediate relief Ensure access to basic goods and social services, i.e. food, health, etc. Restore livelihoods to the most vulnerable temporary measures Coordinate emergency actions and interventions Recovery of expected conditions without disaster Recovery of pre-disaster conditions Natural hazard Recovery phase Relief phase
25 Objectives: for what shall we aim in a PDNA process? Immediate relief Ensure access to basic goods and social services, i.e. food, health, etc. Restore livelihoods to the most vulnerable temporary measures Coordinate emergency actions and interventions Build Back Better (BBB) development approach Recovery of expected conditions without disaster Recovery of pre-disaster conditions Recovery phase Natural hazard Long term development Recovery phase Relief phase
26 Strategy during relief phase Using relief as the first phase of employment recovery Hiring manpower for rubble removal Cash for work schemes for general relief work Contracting emergency works with local firms Facilitate reopening of existing enterprises: Shop repairs Power reconnection Inventory replenishing Short term credit or grants for repairs and working capital Roads and two-way access to markets
27 Strategy during recovery phase Two-sided approach: recovery centered on economic reactivation of the demand and supply of goods and services Reactivation of the demand side Cash transfers Labour intensive employment projects Public demand for goods and services during relief and reconstruction Reactivation of the supply side Reconstruction of productive equipment and infrastructure (industry and commerce) Reconnection of power lines and transport infrastructure Short-term credit for repairs, working capital, hiring staff and rebuild inventories
28 From post disaster investments to GDP growth to employment and income creation? Policies for accelerated job creation Emphasis in labour intensive activities Public works using local labour and local firms Reactivation of self employment (via support to farms and microenterprises) Support of wage employment recovery via reactivation of local private enterprises (especially small and medium firms) Support to reactivation of markets for goods and services (roads, power lines, credit)
29 Supporting recovery through skilled work force Post disaster employment requires new skills, new skills require training Post disaster employment may require training in new and scarce skills: Skills demanded for recovery itself Examples: carpenters, electricians, builders Skills for new jobs when the old job is not recoverable Example: Farmland covered by avalanche farmers relocated to urban jobs training needs in various trades Skills in new techniques required for BBB Example: New skills for earthquake-resistant housing construction
30 What post disaster recovery should ensure Socially inclusive economic growth Sustainable livelihoods based on Decent Work Thank you!
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