Market based programing

Key guidance and tools

Market-Based Programming in WASH Technical Guidance for Humanitarian Practitioners	The purpose of this document is to provide practical guidance in preparedness, assessment, program design, implementation and monitoring related to the use of all market and cash based modalities in humanitarian WASH assistance. This guidance was developed by the GWC TWiG on Cash and Market.
GWC MBP evidence based study	This large study is composed by 5 different reports, exploring the evidence available in 2020 regarding the effect of MBP on WASH outcomes, 3 reports on the different MBP practices for each of the water, sanitation and hygiene subsector, and a 5th report focusing on Multipurpose cash for WASH
2017 SEEP MERS Minimum Economic Recovery Standards.pdf	These standards, developed by the SEEP network, aims at ensuring a greater awareness of the key role markets play in assisting affected population to recover from shocks. The MERS standards are recognized as part of the Humanitarian Standards Partnership, which includes SPHERE. MERS standards have been used to developed the 'market awareness' module of the GWC WASH quality and accountability Assurance system.
Tip sheet on integrating cash and markets in HNOs and HRPs	Tips on integrating cash and markets in the WASH HPC and key resources
Preparing for the use of Cash and Voucher Assistance in the RRM	RRM_CVA Preparedness one pager_February 2022.docx

Field examples

Refer to the 2020 GWC Evidence building for Cash and Markets for WASH in emergencies for examples of MBP practices related to

WASH market assessments
Implementation of WASH market support modalities, in both preparedness and emergency.
Implementation of CVA modalities for WASH
Implementatiobn of complementary
WASH market monitoring initiatives

Ensure that emergency preparedness and response processes are sensitive to local WASH market systems, and use and support them when relevant and appropriate

Market based programming (MBP) has become a priority topic for the GWC since 2016. MBP for WASH consists in ensuring that WASH response are sensitive to local markets during all Humanitarian Program Cycle (HPC) phases, and that market based modalities (CVA and market support) are used when relevant. While MBP covers many different aspects, this section relates only to tasks under the responsibility of the coordination platform. For more information regarding MBP, refer to the 2021 GWC MBP guidance (including the MBP coordination chapter) and the 2020 GWC Evidence building for Cash and Markets for WASH in emergencies.

WASH market system

WASH market systems comprise all local private, public or community actors delivering WASH related goods or services, as well as the enabling infrastructure and regulating environment. Market based modalities include market support as well as Cash and Voucher Assistance (CVA)

Establish partnerships to improve the WASH markets preparedness and resilience to disasters

Many WASH market support modalities such as 'support to WASH policies' require long intervention time which make them more relevant during preparedness phase, inmplemented in partnership with development actors.
To respond adequately to emergency demand, local market actors needs to be involved in the emergency preparedness process. They need to be aware of the type and quantity of goods and services that will be required in emergency, and what type of delivery mechanism will be used (e.g. electronic vouchers).

Build the capacity and preparedness level of WASH cluster partners to implement market-based modalities in emergency

Use of market support modalities requires specific human resources (e.g. with marketing skills), and internal policies (e.g. favoring local over international procurement). Use of CVA for WASH in emergency requires institutional and programmatic readiness, as well an having established partnerships with other organizations and the public/private sector. The WASH coordination platform can build the sector capacity by organizing MBP for WASH in emergency trainings designed by the GWC.
The WASH coordination platform can request the deployment of a cash and market specialist (for instance from CashCap) to support MBP preparedness and response.
The WASH coordination platform should participate in interagency pre-crisis assessment of WASH markets, which will provide key information on markets functionality and can enable quick and market sensitive emergency response.

Coordinate the assessments of key WASH markets

Pre-crisis and emergencfy market assessments are the cornerstone of the Market-Based Programming for WASH. Their role is to inform subsequent WASH response analysis and planning. To provide meaningful results for the response analysis, market assessments are better conducted as a cluster initiative rather than by a single agency. They also need to be coordinated with other sectors, as WASH market systems are connected with other markets such as labour or construction material. The WASH coordination platform can chose to implement market assessments through a third party such as REACH.

Consider market-based modalities during response analysis and strategic planning

During the response analysis phase, the relevance, appropriateness and feasibility of various market and non-market-based response modalities is assessed by the sector coordinators, and the optimal combination of modalities identified and included in the implementation strategy. Intersector multi-modalities response analysis requires strong intercluster leadership, and can be challenging in rapid onset emergency because of limited time available.

Coordinate the design and implementation of market-based modalities with WASH partners and Cash Working Groups (CWG)

Some CVA modalities are WASH specific (for instance ‘hygiene vouchers’) and require sectoral coordination. But many market-based modalities are multisector by essence (for example multipurpose cash, or multisector vouchers) which requires strong intersectoral coordination, often provided by Cash Working Group (CWG). The WASH sector coordinator must represent WASH partners at CWG meetings and ensure information flow between CWG and WASH cluster partners. WASH coordination platform must be involved in the design of multisector CVA modalities addressing WASH, and should for instance participate in the development of the Minimum Expenditure Basket (MEB).

Cash Working Groups

Cash Working Groups (CWG) have been set up in many countries, including some sub-regional CWG depending on the context. CWGs are increasingly being formally established by, and report to the Inter-Cluster Coordination Group (ICCG). CWG aim to coordinate actions related to CVA, to develop joint activities and tools (e.g. Market Assessments, Minimum Expenditure Baskets, etc.), and provide support to clusters implementing CVA. In their current form and current functions CWG are not very well placed to coordinate WASH market support modalities.

Set up adequate monitoring and reporting system for market-based activities of partners

Market based modalities use specific processes and can produce WASH outputs, outcome and impact in an indirect way. The tasks of the WASH coordination platform related to MBP monitoring can be divided into several categories:

Coordinate the monitoring of MBP related processes (# market actors supported, # vouchers/cash distributed for WASH etc.), which can be added to the standard 3W (see 2020 OCHA 3w template with cash.xlsx);
Continue capturing WASH outputs and outcomes even when MBP is used, using standard WASH indictors such as # latrine constructed and used, quality and quantity of water used, use of hygiene items etc;
Monitor that the response complies to market-related standards. This can be done by using the optional 'market awareness' module when setting up the Quality Assurance and Accountability system for the response;
Continous monitoring of local WASH markets indicators (prices of labour, water, availability of water trucking services etc.), to identify possible issues related to the functioning of WASH market systems;
Set up and follow-up indicators to measure WASH markets long term resilience to disaster.

Evaluate the effect of MBP on the WASH response outcomes and impacts

MBP is still new for the humanitarian WASH sector. More evidence is needed on the cost efficiency, effectiveness and impact of these modalities on WASH outcomes. Current MBP for WASH evidence can be found in the 2020 GWC Evidence building for Cash and Markets for WASH in emergencies. During the response evaluation process, the WASH coordination platform must pay a special attention to market based modalities, ensuring that their effect is properly monitored and reported by partners, and coordinate with the GWC Cash and market TWIG the production of lesson learned documents.

GWC Coordination Tool Kit (CTK)