1. Lessons on Using Cash and Voucher Programs Post-disaster William Martin, TA-Market, HRD MDFN’s Peer Learning Event November 4, 2015

2. Oxfam & WFP, 2012.

3. 24,342 beneficiaries 3 April 25 in GKA Total damaged houses 72,955 May 2-June 3 rd Market rapid assessment and analysis In-Kind distribution June 7-July 10th Cash for Shelter $150/household 7,948 beneficiaries June-November Cash grant of $300 per vendor 394 vendors for market rehabilitation August 11 th - October 31 st CRS MPG program $75/household 16,000 beneficiaries Coordination

5. Indirect support to market 5 April 25 in GKA Total damaged houses 72,955 May 2-June 3 rd Market rapid assessment and analysis In-Kind distribution June 7-July 10th Cash for Shelter $150/household 7,948 beneficiaries June-November Cash grant of $300 per vendor 394 vendors for market rehabilitation August 11 th - October 31 st CRS MPG program $75/household 16,000 beneficiaries Coordination

6. 6 Program overview Objective: 300 vendors from local markets in Gorkha district are revitalized and supplying households with basic needs in 6 months Beneficiaries: 300 vendors in up to 6 markets Activities: Debris cleaning Cash (unrestricted/conditional) Technical support (5 days of local carpenters) Challenges: Grant vs loan Integration of financial systems Beneficiaries selection criteria Misuse of cash theory Formal business vs informal Speed of decision taking 6

7. 7 What is next? Who should we target and who is eligible? What amount should be distributed? If cash, is there enough liquidity? What are the potential negative impact? 7 Are market functional and capable to meet needs ? How to coordinate response? Which modality should be used? Is this the most efficient modality? Good practice from Nepal response to address key questions

8. 8 MAIN PRINCIPLES FOR RECOVERY and CONSTRUCTION MAIN BARRIERS Unavailability of complementary goods (e.g., land, infrastructure) Low individual purchasing power Limited access to housing finance Inadequate current product offering Enable long-term investment Assign property rights to decrease investment risk Mobilize low-income families’ purchasing power through experience-based learning and demonstration projects Financial Education/Market program by speaking to the poor’s aspirations - housing as patrimony - to catalyze savings Enable asset-building and create design that meets low-income communities’ preferences Invest in services and infrastructure to unlock latent housing demand Use remittances as collateral to access loan Package mortgage/technical expertise, Financial facilities Leverage resources abundant at the local level Build critical mass and empowerment for communities to negotiate with government Use “sweat equity” to reduce labor costs and create new skills Invest in customers’ income- generating potential - Facilitate community-led design Target already-organized communities Build systems to capture savings for all types and sizes of incomes Utilize local materials and building techniques Radically lower the cost of the whole housing delivery process Harness the effectiveness of existing informal systems Aggregate demand to reduce transaction cost Reduce the risk of housing finance by building credit history and income generation opportunities Leverage community-led market research Design new electricity distribution channels for slums through cooperatives Offer comprehensive solutions

9. 9 William Martin Technical Advisor-Market/Humanitarian Response Team william.martin@crs.org