Cash & Markets Task Force. FAO Conference Room Nairobi April 17 th, 2015

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1 Cash & Markets Task Force FAO Conference Room Nairobi April 17 th, 2015

2 Agenda Review/Endorsement of minutes Status update (where we are) Key points from other contexts Conditional transfer logic and targeting proposals Unconditional transfer logic proposals (if time allows)

3 Status Update Pastoral Agro-pastoral Riverine CMTF TORs Current range of market related information being tracked. Seasonality of conditional interventions (unless justified) Total population affected - Catastrophic Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Pastoral / Agropastoral (pastoral) Riverivine / Agropastoral (agro) Urban / IDPs Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec CA LEAN SEASON CONDITIONAL ACTIVITIES LEAN SEASON CONDITIONAL ACTIVITIES CONDITIONAL ACTIVITIES LEAN SEASON CONDITIONAL ACTIVITIES LEAN SEASON CA CONDITIONAL ACTIVITIES

4 Status Update Conditional wage rate should be less than market rate wage labor Example from FAO / FSNAU on Conditional Cash Transfer value logic 100% of Average 80% of Average 1/ FAO Somalia CFW Rate Wage Labor Wage Labor CMB New/Revised New/Revised (Rounded) US$/Day US$/Month US$/Month US$/Month US$/Day US$/Month US$/Day US$/Month FAO CFW Benefit Tranfer/Wage Rate Logic Region A=B/24 B=C/.80 C D E=F/24 F G H Remarks (on Column F) Awdal C>D; new CFW rate = D Woqooyi Galbeed C>D; new CFW rate = D Togdheer C<D but D<B; new CFW rate = D Sanaag C<D but D<B; new CFW rate = D Sool C<D but D<B; new CFW rate = D Bari C<D but D<B; new CFW rate = D Nugaal C<D but D<B; new CFW rate = D Mudug C<D but D>B; new CFW rate = (D+B)/2 Galgaduud C<D but D>B; new CFW rate = (D+B)/2 Hiraan C>D; new CFW rate = D Middle Shabelle C<D but D>B; new CFW rate = (D+B)/2 Banaadir C>D; new CFW rate = D Bakool C<D but D>B; new CFW rate = (D+B)/2 Bay C<D but D<B; new CFW rate = D Lower Shabelle C<D but D<B; new CFW rate = D Gedo C>D; new CFW rate = D Middle Juba C<D but D<B; new CFW rate = D Lower Juba C<D but D<B; new CFW rate = D Notes: 1/Average CMB and Wage rates calculated over the Jan 2014-Jan 2015 period. 2/New rates try to balance between meeting food security objectives (CMB) and minimizing distorition in the labor market (Wage labor).

5 Key points from other contexts Days worked Agency Location Days % of food needs SAVE Zimbabwe 12 35% WFP Pakistan 12 to 15 SAVE Pakistan 12 SAVE Lebanon 10 ACF Lebanon 10 PLAN Philippines 15 WFP South Sudan 15 Approx 60% of days worked SP Niger 20 WV Zimbabwe 20 days (4hours per day) WFP Liberia 12 OXFAM Pakistan 24 (following quick onset emergency) OXFAM Ethiopia 15

6 Key points from other contexts Transfer Value Logic SS Example 1. Calculate local food basket costs (for avg hh) 2. What % of food basket is already being met by the target population 3. Additional costs to consider? (transport / tax)

7 Key points from other contexts Transfer Value Logic Mercy Corps - Wage rates to be lower than market rate (10-20%)

8 Key points from other contexts Transfer Value Logic IASC

9 Key points from other contexts Transfer Value Logic USAID

10 Key points from other contexts Key points for Somalia FSC which should be considered: - Days per month should allow for normal livelihood opportunities to continue. Is a high number of days too demanding? - Daily wage rate should be adjusted proportionally to the hours worked per day. Eg: 90% of market wage rate (per day) but only working 90% of work day hours = market wage rate - As FSC, transfer value should only target food basket? - Transfer value logic should fit into FSC targeting logic (who are we targeting and what % of their food basket needs to be covered)

11 Transfer Value Proposal Transfer Value Suggestion: (Local Wage Rate*90%)* X Days = 60% Local CMB Constant: 60% of local CMB 90% of local wage rate Variable: Days of work. Increase days until = or > 60% CMB

12 Transfer Value Proposal See calculation below based on FSNAU/FAO example data: WAGE LABOR CMB Days Required Per Month Region 100% 90% 80% 80% 60% 40% 80% CMB 60% CMB 40% CMB Awdal Woqooyi G Togdheer Sanaag Sool Bari Nugaal Mudug Galgaduud Hiraan Middle Sh Banaadir Bakool Bay Lower Sha Gedo Middle Jub Lower Jub

13 Transfer Value Proposal Challenges Cases where >24 days per month required Perhaps these are distorted markets Preference for in-kind in the event that days >24 (or 20) Alternative proposals?

14 Key points from other contexts Targeting Logic - WV

15 Key points from other contexts Targeting Logic Mercy Corps Ensure that physically and socially vulnerable groups including femaleheaded households, elderly and handicapped are provided with alternative means of assistance through cash vouchers, grants or lighter tasks that avoid heavy labor. Consider whether it would be more beneficial for the community to employ fewer workers from the most needy families for a longer period of time or to spread funds over a larger segment of population for a shorter period. Set age limits for individuals participating in the activities while Mercy Corps is committed to child labor prevention, economic conditions in areas of CfW implementation should be given strong consideration. In situations when families rely heavily on children s income, children may be included if: A worker is at least 15 years old. The work does not affect his/her school attendance. The work is appropriate for his/her physical ability. ` Younger laborers are allowed to take longer work breaks

16 Targeting Proposal

17 Targeting Proposal Differing transfers for differing target groups. Who are they?

18 Conditional Cash Transfer Protection concerns Who shouldn t work PPE? Absenteeism?

19 Next Steps Set next meeting date/time/location

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