Income Generating Activities Feasibility Assessment Report

Income Generating Activities Feasibility Assessment Report Northern Shan and Kachin States Myanmar November, 2014 By Joshua Leighton Regional FSL Advisor, Save the Children International 1

Table of Contents List of acronyms... 3 Introduction... 4 Methodology... 4 Markets in Northern Shan and Kachin... 5 Pre and post displacement livelihoods... 6 General Approach to Income Generating Activities for IDPs... 6 Potential for communal IGA s... 7 Group IGA s... 7 Individual IGA s... 7 Considerations for age... 8 Potential Businesses and Income Generating Activities per Camp... 9 Non Government Controlled Areas... 9 Government Controlled Areas... 11 Recommendations... 14 2

List of acronyms GCA Government Controlled Area NGCA Non Government Controlled Area KIO Kachin Independence Organisation WPN Wun Pawng Ninghtoi FSL Food Security and Livelihoods IGAs Income Generating Activities IDP Internally Displaced Person KMSS Karuna Myanmar Social Services FGD Focus Group Discussion CFW Cash for Work SC Save the Children 3

Introduction After more than three years since the long standing ceasefire ended, in June 2011, as many as 110,000 people remain internally displaced in Northern Shan and Kachin States both in Government controlled areas (GCA) and Kachin Independence Organization (KIO) controlled areas (NGCA). Many households have been displaced multiple times and continue to face substantial challenges including human trafficking, land mines, recruitment of child soldiers, forced labour, violence and threats of violence, as well as a lack of access to basic services such as education, water and health and nutrition services. The traditional livelihoods of IDPs, which rely on access to land for cultivation, are also not a viable option in the current context. Save the Children and local NGO partner WPN have responded in WASH, child protection, nutrition and FSL. In terms of FSL support, the main activity thus far has been developing kitchen gardens in the camps where there is adequate space. While kitchen gardens provide an important supplement to household diet diversity, the scale of the activities does little to stabilize household income. Given the pre displacement livelihood profiles of the IDP population, income generating opportunities are limited in their new settings with sporadic and low paying agriculture labour being the primary source of income for many households. In order to understand appropriate options for supporting income generating activities (IGAs) amongst IDPs SC (Save the Children) Myanmar carried out a feasibility assessment in November, 2014. Methodology The assessment focused primarily on the skills, capacities and interests of adult men and women as well as youth in terms of potential IGAs that could be run from IDP camps. Additionally, the assessment was designed to identify major gaps in terms of goods and services available to the IDP population both in camps as well as on local markets, examine broader market trends and explore linkages between markets and host communities. Three focus group discussion templates and one market trader/business questionnaire were developed for the assessment 1 : A focus group discussion to be conducted separately for men, women and youth (ages 15 21) in order to understand their current level of education and skills, pre displacement livelihoods, current sources of income as well as the types of activities or businesses that they are interested in, and; A key informant interview for local businesses and market traders in order to understand their current level of business, trends over the past several months, competition on certain markets, unmet demand, challenges with their businesses, etc. Two teams of eight WPN and Save the Children staff conducted the assessment over five days in both GCA and NGCA areas. A total of 9 camps were assessed, where a total of 27 FGDs involving more than 300 men, women and youth, as well as more than 50 interviews with local business owners were carried out. 1 The questionnaires were based on the Market Assessment for Vocational Training Providers Youth, developed by the Women s Commission for Refugee Women and Children and Columbia University 4

The following camps were visited during the assessment: In government controlled areas: Jaw 1 and 2 St. Thomas Nay Wan Ni KBC 1 and 2 RC 1 and 2 In non government controlled areas: N Kawng Pa La Zup Pa Bum Tsit Pa Pa Ka Htawng In addition to camp markets and shops the major markets of Nam Kham, Banglung and Man Win Gyi were assessed in the GCA and Mai Ja Yang and Banbane in the NGCA. Markets in Northern Shan and Kachin For many camps there are large, well supplied and busy markets nearby, often no more than 30 45 minutes away (on foot or by motorcycle) especially camps in proximity to Nam Kham and Man Win Gyi in the GCA and Banbane and Mai Ja Yang in the NGCA 2. Due to the relative ease of movement of goods and people across the border all main markets have a substantial amount of trade with China. Banbane, another large market frequented by IDPs in the NGCA, is also in China. In addition to these larger, permanent markets many camps also have host community markets as well as a handful of petty traders and other small businesses in some of the camps themselves all of which present good opportunities to procure inputs, support sales and cultivate a customer base. In additional to fixed market activity which happens every day in the larger markets, market days occur in most markets every 5 days. These market days are frequented by villages in the surrounding area leading to an abundance of both goods and customers on a regular basis. Proximity to markets such as these is an advantage for establishing IGAs amongst IDPs given the variety and abundance of inputs available 3 as well as the diversity and purchasing power of the consumer base. However, considering the rural, agriculture based skills set of IDP s and the fact that they are cut off from their most important productive assets, competing with a more urban and business savvy population will be a challenge during the start up phase of many IGA s. Despite the fact that the camps in both the NGCA and GCA could be said to all have appropriate market contexts to run a variety of activities (both in terms of the availability of inputs as well as access to customers) 2 There are however a few exceptions, such as N Khawng Pa which relies on a smaller host community market for most purchases and sales. 3 However, certain inputs such as quality wooden frames for artisanal cross stitching are not available in the assessed markets, though they could be procured if the right Chinese traders are engaged. 5

considering the skills set as well as specifics to each area (e.g. clusters of camps, in some cases) IGAs should be applied on a camp by camp basis. Pre and post displacement livelihoods Pre displacement livelihoods for IDPs were almost entirely rural and focused largely on agriculture mostly paddy and corn cultivation as well as a smaller mix of secondary crops and fruit trees. Livestock rearing and trading was also a mainstay of household income including cattle, buffalo, pigs and poultry. Charcoal production, teak 4 trade, as well as limited petty trade and skilled labour (carpentry, sewing, basket weaving, etc.) were also practiced by some households prior to displacement. While these livelihood strategies were enough to sustain most households in their villages of origin, considering the fact that their two most essential productive assets land and livestock have been lost, household economic and food security will remain at risk until they are better equipped (both in terms of training as well as capital) to engage with local markets. In terms of current income sources, the top activity across all camps and demographics was daily agricultural labour which is seasonal, sporadic and low paying. Some households however are missing out on these opportunities due to a lack of tools 5 as not all land owners provide the necessary inputs for daily labourers. Certain tools (machetes, etc.) are used for a variety of household chores and income generating activities as well. Other current sources of income include livestock rearing (mostly pigs and chickens), a limited amount of off farm labour, small scale vegetable, corn or spice cultivation either in the camps which have space or more likely in surrounding areas rented from the host community, transportation of teak, gathering wild plants (such as bamboo shoots) as well as unconditional cash grants 6 given by local NGOs (METTA, and KMSS). A very small percentage of households also maintain access to more substantial amounts of land (through direct access to their own land depending upon the security context). Many also cited volunteering for NGOs as another major source of income for some IDP households. General Approach to Income Generating Activities for IDPs Given the generally low skills set of IDPs when removed from their agricultural based rural origins and considering the variety of dynamics at play in each camp (including market access), support to IGA s should be designed on a case by case basis. In addition to individual skills and access to markets and host communities, the following levels of specification should apply whenever possible: Motivation of the IDPs to work either in groups of different sizes or a preference to work on their own; Different cohorts of the population, especially in terms of gender and age. 4 Teak is a high quality tropical hardwood used in exterior construction and to make furniture, boats, etc. 5 During further phases of IGA support, provision of these tools to certain vulnerable households which could both enhance current income generating capacity to a limited extent and be used upon return home to restart livelihoods should not be overlooked. 6 The duration of these cash transfers remains unclear but should likely end in December, 2014. 6

Potential for communal IGA s Though not ideal at this stage, given the strong community cohesion 7 in some camps and depending upon the size of the camp, the function of pre existing leadership structures or arrangements in some of the camps (such as communal kitchens or the desire to start communal shops, for example) and considering the fact that many, if not all IDPs will want to participate in IGA s camp wide activities may be the most appropriate way to start in some of the smaller camps 8. In camps like Banglung, where there are a variety of different options for IGA s coming from both male and female FGD (focus group discussion) participants, and where community cohesion is strong and church leadership plays a more active role in certain aspects of camps life, a variety shop approach may be advisable. This approach would entail establishing a handful of different groups artisanal cross stitching as a sewing activity for women, brick making for men, a mixed group for livestock raising as well as a separate activity for youth, for example. Some of the more experienced adults would function as managers of these groups with an overall leadership team 9 being responsible for implementing community decisions on how a pre assigned percentage of the income is used to the benefit of the entire community. However, the formation of these umbrella groups would only apply in some of the camps and would obviously have to be discussed with the IDPs during the initial general assemblies 10 as discussed below. Group IGA s A much more appropriate (and simple) approach at this point would be forming smaller, individual groups for IGAs. As much as possible groups should be created in camps where there is strong enough community cohesion and beneficiaries should have a common interest in running the IGA s and ideally have some prior experience with the activities 11, to be built upon with basic business management training. Once groups have been trained, equipped and established it may still be advisable to encourage them invest a pre determined portion of their income in alternative activities e.g. a small pig raising operation alongside their main activity of flower cultivation, for example given the importance of seasonality for certain activities and the need for additional income to strengthen these groups. Individual IGA s Some activities would necessitate being run as individuals however, due to the smaller scale of operations and the limited income that they would gain, such as camp or host community based snack or noodle stands. In some camps, especially in the NGCA, preference will be for individual activities 7 This warrants some follow up. Community cohesion may be stronger in camps which have higher concentrations of IDPs from the same townships, etc. 8 However, this may be a more appropriate approach for further phases of IGAs. 9 These roles should likely be given to the elderly who would also serve as arbitrators for any disputes about resources (but less active in terms of strategy, etc.). 10 Some sources have cited issues around worries of pooling money in camps and marginalisation of vulnerable groups. 11 Though, in camps where other local NGOs have already started group IGAs (sewing, motorcycle repair shops, etc.) we should rather focus on filling gaps with other groups or, more likely, individual IGA s. 7

for a number of reasons (general mistrust, IDPs coming from several different villages, etc.). Individual activities should also apply on a camp by camp basis as well and concentrate on supporting existing capacities, whenever possible. Whether IGA s are run individually, as group activities, or under a more communal umbrella support should be allotted in a balanced manner so that we are not supporting too many of the same IGA s in proximity to each other. Not only the support given within certain camps (considering both SC Myanmar as well as other international or local NGOs) but also support given to other camps in proximity who may frequent the same daily or weekly markets, for example should be a major consideration. This would be especially important in some camps which are very close to each other such as Jaw 1 and Banglung, or Jaw 2 and St. Thomas in the GCAs, for example. Considerations for age Overall, IGA s for different segments of the IDP population (male and female of different ages) should be tailored to specific needs, interests and capacities of each demographic and age group. Specifically, for the older (though not elderly) adult population, income generating activities should likely focus on their existing skills and capacities which are strongly linked to agriculture and livestock, for the majority of IDPs rather than trying to train them in new skills. Training in simple business management skills in order for them to enhance the income gained (and more strategic use of that income) from these activities should apply, however. While there are obvious challenges with this approach (especially the difficulties with land access), focusing on what they know, while enhancing their business management capacity would allow support which is easily transferable back to their villages of origin and traditional livelihoods base when they are able to return home. As an example, while access to land remains the main limiting factor in agriculture activities, along with access to tools and other inputs, some niche agriculture 12 activities such as mushroom or flower cultivation in certain camps, for example would still match their existing skills set and would not necessitate large amount of land if they are run in small groups. These kinds of activities should be the focus of IGAs for many adult groups (e.g. for those who do not have pre existing skills in other activities, such as carpentry). However, each camp does have a portion of the adult population who were previously skilled labourers and now lack the inputs to practice their former income generating activity in the camps. These individuals and groups should be identified in order to provide them with basic business management training and also to enhance (or refine) their existing skills. For example, carpenters who lack the tools and skills necessary to compete with certain Chinese imports could be supported to improve their techniques in certain niche markets (such as furniture making, etc.). Youth however should likely focus on building skills in more modern sectors which will give them a chance to eventually engage in livelihood activities other than agriculture and livestock rearing. Youth who are most likely to engage in risky migration to China (due to a lack of employment opportunities for IDPs, etc.) should likely be among the priority target group for these kinds of activities. While building skills in operating computers, electronic repairs, mechanics, etc. will not lead to income 12 As much as possible these agricultural activities should be group activities and should focus on cash crops. There will be a lot of demand for corn cultivation which should be limited. 8

generation in the short term, it would provide a more appropriate skill enhancement intervention for this segment of the population 13. Identifying ways of incorporating Chinese or English language skills as well as leadership skills into training modules is also worth exploring. In some cases however, certain youth groups should move directly to IGA support (as provided to adult groups and individuals) if the market context, motivation and skill level is appropriate. Considering the fact that the duration of displacement remains unclear, any IGA support whether inputs or skills should be transferable as much as possible, either back to their villages or origin in the case of adult, or easily applicable in a variety of contexts and preparing them for future income capacity in the case of youth. Potential Businesses and Income Generating Activities per Camp The following section provides an overview of markets, current income generating activities and some of the best options for future IGA support. This listing is not exhaustive and the activities below should be expanded during further assessment and field work. Non Government Controlled Areas 1. La Na Zup Ja Camp details: Hosts 400 IDP households with a population of 2,500 coming from 20 villages. The camp is said to be cramped with very little space for activities such as kitchen gardening, etc. Markets: There are some small petty vending shops in the camp itself (mostly run by women) with a small host community market nearby (no more than 5 minutes on foot). Some of the shops in the host community market are open daily, though the main market is the cyclical 5 day market, which is fed by 5 villages. Banbane market a major hub in China, is only 1.5 miles away and could provide the variety of inputs that they would need. Current income sources: Men: some have land (small plots of 1 acre or less) where they grow corn. Livestock (mostly pigs) is practiced by some households. A few households are active in carpentry and some also transport teak to China. Women: mostly involved in agriculture labour, pig raising (fattening, not rearing) and petty vending (camp based), some grow corn as well. Youth: many are also involved in teak transportation as well as casual labour and attending school. Best options for IGA s: The men would prefer to expand and improve the quality of their carpentry techniques and hopefully incorporate construction of houses. 13 In order to enhance the likelihood of success we should likely support their households in order to at least lessen the pressure for them to migrate. 9

This is one of the camps where a motor workshop is most advisable given the location on the main road to China and the fact that there are only 3 in the host community (as a group activity for youth or men). There are only 3 sewing businesses in the host community so this may be a market for expansion, focusing on clothing. A tea shop for youth is another possibility. 2. Bum Tsit Pa Camp details: Hosts 169 households and a total population of 742 IDPs coming from 23 villages. Markets: There are a few shops in the camp, as well as a small host community market which is mostly on a 5 day cycle. Market trends involve a reduction in purchasing power and demand over the past year among IDPs. They could source goods from Banbane (5 miles) or from Nam Kham and Myikhina which are much further away. Current income sources: Men: mostly involved in agriculture labour, carpentry and livestock (pigs and chickens). Some are also able to cultivate corn. Women: also involved in agriculture labour and livestock but also are more involved in petty trade and kitchen gardening than the men. Youth: support household activities on an as needed basis, occasionally work as agriculture labour and go to school. Best options for IGA s: There may be an opportunity to enhance carpentry skills for men. There is also interest in basket weaving which could be done either as a separate activity (more likely) or as a supplement to the carpentry work depending upon community cohesion. A potential niche market for women would be making jam, though they would need some support initially making linkages with traders who provide the appropriate fruits and other inputs as well as soap making, though this warrants further assessment as they may not be able to compete with products coming from China. 3. Pa Ka Htawng Camp details: Hosts 587 households and a population of 3,000 IDPs coming from 84 villages. Pa Ka Htawng is actually 3 separate camps in very close proximity. Markets: There are some shops in the camp with a trend of more shops with growth in existing shops over the past several months. Mai Ja Yang, medium sized daily market and large 5 day market fed by 10 surrounding villages, is 10 minutes away by motorcycle. There is a general trend of fewer customers and reduced purchasing power over the past several months. Casinos are one of the main drivers of business which may enhance (or determine) seasonal aspects for some forms of trade. 10

Current income sources: Men: almost solely engaged as agriculture labour with little else aside from some small animal husbandry. Women: are engaged in a variety of knitting activities as well as raising pigs and soap making (though this is not for money). Youth: occasionally do agriculture labour as well as attend school. Best Options for IGA s: Given the limited skills set of men, expanding pig raising may be the best option to start. Women have expressed interest in expanding their knitting activities, with the niche of traditional clothes for women. At present there are only 2 sewing businesses in proximity to the camp. Some youth have expressed interest in training as beauticians. 4. N Kawng Pa Camp details: Hosts 382 households and a population of 2,000 IDPs from 16 villages. It is a cramped camp with very little space. Markets: N Kawng Pa is slightly isolated in terms of markets with very few camp shops and a small daily market in the host community which also has a 5 day market fed by 4 villages. There is a trend of increasing competition and more presence of Chinese traders in the nearby market. Current income sources: Men: mostly involved in agriculture labour and gathering bamboo shoots (though only July and August) and growing spices in and around the camp to a limited extent. Women: also involved in agriculture labour and gathering bamboo shoots but also involved in pig raising. Youth: mostly involved in seasonal agricultural labour and going to school. Best options for IGAs: Given the limited options and limited market access it may be advisable to mix pig raising, small scale corn production, as well as spices and vegetables together as a group activity. Sewing and knitting (towels, hats, and clothes) is an option for women. Government Controlled Areas 14 1. Banglung and Jaw 1 Camp details: Medium sized camp with a population of approximately 2,000 with most IDPs coming from Manzi Township. 14 Given the proximity of some camps and similarities in terms of market access and livelihood options, only 1 set of FGDs was run in order to finish within the allotted timeframe. 11

Markets: No camp based shops however there is a medium sized weekly market less than 5 minutes away on foot which is fed by six surrounding villages. The main hub of Nam Kham is 15 minutes away on motorcycle. Current income sources: Men: the main source of income is agriculture labour which is seasonal and sporadic even during field preparation and harvest and is generally low paying. A very small percentage of households still retain access to their land in their villages or origin, or rent land from the host community. Volunteering for NGOs and receiving unconditional cash transfers from a local NGO were some of the main income sources cited by men. Women: similar profile as men but with some engaged in sewing. Youth: also engaged in limited casual labour and attending school. Best options for IGA s Brick making (Jaw 2) is a very good option as a group activity for men (and some youth). This is a very simple activity to learn and all they would need is light touch training and inputs. Despite a substantial amount of competition with surrounding brick makers, it is likely to be a quick turnaround in terms of profit. Sewing 15, especially the niche markets of cold weather clothing for children (hats, etc.) and artisanal cross stitching (pending procurement of some more specific inputs from Chinese markets/mobile traders). This may take a while to be profitable and may take some assistance in making market linkages. Given their proximity to Nam Kham, youth could participate in computer literacy courses. 2. St. Thomas and Jaw 2 Camp details: two small and very cramped camps in close proximity to one another (just across the road). A local NGO is already supporting group activities of sewing for women and a motorcycle repair shop for men. SC should try to fill some of the gaps and it may be advisable to focus on individual activities. Markets: No camp based shops but the surrounding host community is a suburb of Nam Kham and provides an appropriate setting for some IGAs. The main market of Nam Kham is less than 15 minutes away. Current income sources: The main source of income for all groups is agriculture labour with some engaged in nonagriculture labour, followed by support from local charities. Best options for IGAs: 15 Sewing activities, whenever possible, should focus on some more niche markets as many activities would have difficulties competing with low cost imports from China. 12

Snack making and roadside noodle shops considering the on going support to group IGAs SC should instead look to support individual activities. Given their location on the outskirts of Nam Kham, there may be enough customers to support these activities in nearby neighbourhoods. Youth could participate in computer literacy and other courses in Nam Kham. 3. Nay Wan Ni Camp details: Small camp on the outskirts of Nam Kham town. IDPs come from 4 5 different villages and are the only Buddhist camp in the area. Markets: Very few camp based shops and only a few road side stalls in proximity to the camp. 45 minute walk from Nam Kham market, needing 1 hour to return (up hill). Current income sources: Men: Focused on agriculture daily labour with some renting land form the host community or accessing their own land. Women: Also engaged in agricultural labour, but with some working with the forestry department to planting seedlings as well as some working with the host community on construction related jobs. Youth: very little work. Claim to have up to 10 hours a day of free time. Most FGD participants claimed that they are exploited in terms of daily wages likely due to the stigma of being displaced, or in some cases coming from a different ethnic group or religion, but likely due to low skills and bargaining power. Best options for IGAs: Flower and mushroom production for women would be a good option as this plays on their existing skills and is something that seems to be 1) marketable, 2) supplies a need for their IDP population as well as external markets, 3) profitable (that not massively). Inputs are locally procured. We would need to link them with Chinese traders in some sense. Motorcycle workshop for men (alongside another activity as this will not lead to major income). Youth are also in proximity to Nam Kham and could participate in computer literacy courses or could participate in the motorcycle repair shop. 4. KBC 1 and 2 Camp details: 2 medium sized camps in close proximity to their host communities. Markets: Very few camp based shops but there is easy access to host communities markets/shops as well as the main hub of Man Win Gyi. Current income sources: 13

The main activity is agriculture labour and reliance on cash based support from local charities for both men and women. Best options for IGA s There is very little interest amongst the men in anything other than agriculture. They stated openly that they would not be interested in working in groups. There may be scope for certain individual activities for those with appropriate skills sets. Recommendations The following issues should be considered before starting activities. Some of the issues described below would need on going monitoring, others just some critical thinking and planning before launching activities, while others would necessitate involvement of the IDPs themselves during general assembly discussions and monitoring activities. Specific and detailed list of inputs per activity: this was only touched upon briefly during the assessment in order to have a look into markets for the major inputs. However, whether or not cash or in kind support is decided upon a listing of inputs and costs will have to take place in order to determine the amount of support that is needed per activity. Targeting: The selection process for groups and individuals is going to be complicated. IGA s are going to be very popular in most camps and there will be a push to have as many households participating as possible. However the effectiveness and sustainability of these activities is going to be compromised if we allow too many people to participate; this is especially true considering the low skills set of most IDP households and for those in more isolated camps such as N Kawng Pa. Selection criteria should be developed on two levels, firstly in terms of vulnerability and secondly in terms of appropriateness of the activities for certain segments of the population. For example, the following criteria should be considered: o Vulnerability: number of children under 5; dependency ratio; current income sources and amounts (e.g. those with relying solely on sporadic agriculture labour); o Appropriateness: experience in certain activities; willingness to work in groups; willingness to develop and abide by basic business plans; etc. o It is absolutely critical to the acceptability of these activities that the IDPs themselves play the lead role in targeting. SC and WPN should provide basic, non negotiable criteria (such as the presence of young children and the dependency ratio) and then allow communities to define the rest of the criteria in general assembles. Selection committees should be elected during these initial general assemblies by the entire community based upon their honesty/integrity, standing in the community, etc. The roll of existing leadership structures should be discussed though the formation of these committees should not be dictated by them. Start up phase: Given the fact that we will be supporting IDPs who have a rural based skills set, who will then be running IGAs on what are highly competitive markets in more urban contexts (especially considering the influence of Chinese traders and goods) it will be difficult 14

to get them on a solid footing in terms of profit and sustainability at the outset of the project. Therefore, both the amount of support in terms of inputs and training as well as the duration of support in terms of follow up coaching or monitoring will have to be substantial. o NB: There may be a strong element of depression or shock amongst many IDPs considering the fact that not only have they experienced conflict and displacement, but in the sense that their traditional livelihoods are no longer an option for them at this time. This consideration should be an important theme during the training and coaching processes and SC staff and volunteers need to encourage and facilitate these activities as much as possible (perhaps an element of psycho social support should be added). Packages of support The discussion around cash versus in kind support needs to continue within SC and WPN before launching activities. Market conditions clearly indicate that cash is a viable option. However, this discussion in terms of the appropriateness of this modality and any security concerns should engage the IDPs as much as possible as well, during the initial general assemblies. CTP may be a relatively new approach for many staff, however this should not be the main determining factor on whether or not it is used. While the arguments for CTP in this context are strong certain activities may necessitate a mix of cash and in kind. In kind support is especially needed for certain activities which would involve difficult procurements (e.g. the frames used for artisanal cross stitching, which come from China, for example). Some activities may be best served by a mixture of cash and in kind support. For example, if supporting a groups IGA involved in brick making we may want to consider procuring the presses ourselves (considering the quality control that may be necessary, or the savings that would result from bulk purchases of these pieces of equipment for several groups) while providing cash to IGA groups to procure the cement, sand and other inputs themselves (e.g. cash would give flexibility to pay for labour and transportation, etc.) Training approaches: o A basic business management course, simplified and designed for a semi literate population (as recently designed in by the ICRC in Rakhine) should precede the distribution of inputs for all beneficiaries. Opportunities for hard skills training should be sought out as well (to help refine carpentry or sewing skills, for example) though this is less of an issue given the fact that beneficiaries should have a certain/acceptable experience and skill level prior to receiving support. o Several villages stated that they would need full time trainers to deliver specific hard courses for certain activities which would preferably take place in their camps. This may not always be possible, especially the mobile nature of these trainings. We should more likely look for mentors in nearby host communities (or perhaps among some of the elderly in the camps themselves, in the case of certain traditional sewing practices, for example) and use exchange visits whenever possible (as applicable on a case by case basis). o Youth training however should have a different approach. Training centres in Nam Kham have been identified for sewing (which could also be used to support some of the adult women s groups) and computer literacy. Further assessment will be 15

o necessary in order to identify other appropriate training opportunities for youth. Though, the use of exchange visits should still apply if we move directly to IGAs for youth groups. A shortlisting of potential training centres and mentors in nearby market towns and host communities should be among the first activities of the project. Conditionality of support: Whether support is cash based, in kind or a mix of the two it should be conditional on meeting certain set criteria at certain points during the roll out of the project. Elaborating simple business plans with beneficiaries (likely accompanied by SC and WPN staff in the field) is a good first step. This could be a very time consuming process but could be very helpful in terms of applying learning from the basic business management trainings. A system of community monitoring, involving the selection committees should be established in order to facilitate this process. Both in kind and cash support should be delivered in tranches upon the successful completion of pre determined steps in the business plans (e.g. the purchase of certain inputs, or certain processes in the organisation of groups, etc.) One size fits all : Applying a one size fits all approach should be avoided if at all possible. Some of the more redundant activities such as motorcycle repair shops, or petty trading stalls will obviously be among the more popular activities among IDPs (given feedback during the assessment). However, they should not be applied uniformly, solely based on beneficiary preference and should meet both individual criteria (e.g. existing skills set, etc.) as well as market criteria (e.g. filling a specific gap, etc.) Access to land: For certain activities, such as mushroom or flower production, supporting access to land is going to be necessary to start activities. However, given the profile of IDP households and the strong preference for agricultural based activities, we are going to have to set limitations and clearly communicate this from the start of the project, during general assemblies that we will not be supporting individuals to access land to grow traditional crops. Supporting access to land should be limited in duration perhaps the first year of the activity, maximum and will be for group activities focused on cash crops which have a proven demand on local or Chinese markets. Fluctuation of the Chinese Yuan: Certain imports are going to have unforeseen fluctuations in price which will be dictated by the Chinese Yuan. This may complicate access to certain inputs for some of the IGA s. However, for most of the IGA s this should only be a minor issue, though it warrants further monitoring once activities and kits/inputs have been defined. Other actors: Local NGOs and religious organisations may already be running some of the more likely suspects in terms of IGA s. In St. Thomas IDP camp KMSS was already running a sewing workshop (with 7 members) and a motorcycle repair shop. Soap making and carpentry are already on going in Jaw 1. An inventory will have to be run in each camp in order to reassess the coverage of these activities. Even if group activities are already on going there still may be scope to gap fill with other, smaller groups or to run individual activities. 16

Facilitating market linkages: some of the activities do not present obvious sources for inputs for some key items (frames for cross stitching, for example) coming from China. Also, there may well be potential customers in China or in other larger market towns in other townships which should be explored further for potential links to IGAs. SC and WPN should play a role to facilitate these linkages whenever possible. Engaging the elderly: the elderly population may not present the best target group for IGAs however they should be engaged in the project as much as possible; perhaps as day care providers during the training components (as a CFW (cash for work) scheme), as part of the selection committees, as decision makers/counsellors if any community wide activities are to take place, or as mentors for some of the activities (sewing/knitting of traditional clothes, for example). 17