Local economy support in humantiarian assistance

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Report by Marian Muenchenbach and Anthony Ojok (2010) describing transition from emergency relief to development after 20 years of violent internal conflict in Kitgum, Uganda. Focus is on facilitating local economic recovery and market development in an humanitarian assistance programme. Authors adapted the EMMA toolkit to these ends.

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Local economy support in humantiarian assistance

  1. 1. Local Economy Support in Humanitarian Assistance From Relief to Development in a Post-Conflict Environment Northern Uganda, August 2010 Marina Muenchenbach and Anthony Ojok
  2. 2. Abstract The research investigates to what extent Humanitarian Assistance Programs support Local Economy during the transition phase from emergency to development and how best this support can be strengthened by forming partnerships with Local Markets and in coordination with Local Governments. The study HA LE addresses the context of conflict affected environments, in this case Kitgum District in Northern Uganda which after over 20 years of violent internal conflict is in the transition Common interest LG to development. The author used ‘action research in partnership with concerned actors’ as methodology and conducted the study with a Ugandan counterpart. The approach builds on the concept of co-generating knowledge between ‘insiders’ and ‘outsiders’ on specific areas of interest. Insiders want to find solutions for practical problems; outsiders want to generalize conclusions and recommendations. Local stakeholders selected three areas in which they saw potential gains from an increased involvement of Local Economy: the lack of agro input dealers in agriculture, the lack of spare parts dealers in rural water supply and the low quality of construction works in infrastructure projects. Researchers and local actors conducted sector specific series of workshops, market chain assessments and analysed information collected through questionnaires. The three sectors agriculture, rural water supply and construction show significant differences in their appreciation of Local Economy Support as an objective. Further investigation revealed a distinction between ‘service delivery’ programs and ‘livelihoods’ or ‘production’ oriented programs. Food Security and Agricultural Livelihoods Programs define the creation of livelihoods for farmers as their main objective and respond to the lack of capacity of beneficiaries with increased training (farmer field schools, seed fairs, partnerships to support small agro input dealers). They have a good conceptual understanding of market and value chains and use indirect responses (vouchers, provision of credit, strengthening of market linkages etc) that build capacity of local economy. Rural water supply programs are supposed to phase out soon after the end of the transition phase. Their main objective is coverage of services: the water points. Attempts to analyse rural water supply as a market are rather rare. However, a growing number of implementation programs contain research elements concerning this issue and development oriented organisations show strong efforts to find workable solutions for operation and maintenance addressing sustainability of investment. Construction / Infrastructure does not exist as a Humanitarian Assistance program but is regarded as a hardware component of service delivery programs - schools for education and clinics for public health. As i
  3. 3. a consequence, there is limited room to think beyond implementing the required structure and the potential of construction projects for Local Economy Development is underestimated. National Recovery and Development Programs show similar tendencies. The Peace, Recovery and Development Programme (PRDP) as the main funding mechanism for the reconstruction of the North of Uganda distributes resources to ‘service delivery’ sectors (education, health, roads and water) without the inclusion of agriculture. On the other extreme, the UNDP ‘District Development Program III’ which aims for Local Governments ‘to move from service delivery to performing a pivotal role in Local Economy Development’ defines agriculture as the only viable sector for economic development in Kitgum District.1 The distinction into ‘service delivery’ and ‘production’ overlooks two realities: (1) Service delivery and in particular reconstruction programs provide significant income and employment opportunities and should be seen as eligible economic sectors. (2) Reconstruction needs to address production parallel to service delivery / infrastructure: If we increase the number of roads and boreholes and teacher’s houses or classrooms, what will the road lead to? We will have a problem with maintenance of these very roads and boreholes as long as the people don’t have money in their pockets (Interview with District Agricultural Officer). The author proposes response options and invites for further reflection in five areas: (1) Reducing the discrepancy between ‘service delivery’ and ‘production’ programs to allow for both to contain objectives of Local Economy Support (for example by defining the use of local material, labour and services as by-objective to the core objective ‘construction and rehabilitation of schools). (2) In the absence of a shelter cluster, coordinating construction / infrastructure as a specific working group e.g. in the Early Recovery Cluster. (3) Applying indirect response options (voucher systems, provision of credit, strengthening market linkages and partnerships) as they are used in agriculture oriented programs to service delivery oriented programs. (4) Adding Action Research elements to ongoing assistance programs. They provide ideal opportunities to gain practical solutions to current problems and generalized ideas for future policy changes. (5) Defining program objectives based on constraints that have been identified through market mapping (e.g. as an addition to a LogFrame). The mapping of market systems in which Humanitarian Assistance programs operate enhances understanding of complexities and of identifying constraints and formulating specific interventions in relation to these constraints. 1 According to the Kitgum District Draft LED strategy plan (2010) ii
  4. 4. Preface and Acknowledgements Anthony Ojok was my friend, translator and co-researcher. Without him I would not have done this dissertation. Many thanks. Kitgum ABC Engineering Works offered us office space and became our mentors and host family. An infinite number of people in Kitgum, Gulu and Kampala actively participated in this research. Ana provided a home in Kampala and gave me Yoga lessons and good food. Maria was the first one to whom I explained the dissertation topic on a cold January morning in Switzerland because I wanted to know if it made sense to somebody with common sense. SDC and GTZ responded to first emails confirming that my research questions were valuable and motivated me to go ahead. My small and extended families in Oxford and Switzerland were continuously open to discussions. Leda Stott was always accessible, always critical, always positive and always supportive and all at the same time. Thank you, Leda. Ingenious People: What would you do if your shoelaces were too short? iii
  5. 5. Table of Contents Abstract Preface and Acknowledgements 1 CHAPTER ONE - INTRODUCTION......................................................................................................... 1 1.1 WHY THIS DISSERTATION? ..................................................................................................................... 1 1.2 BACKGROUND TO THE RESEARCH ........................................................................................................... 2 1.3 PROBLEM STATEMENT ........................................................................................................................... 2 1.4 RESEARCH AIM ..................................................................................................................................... 2 1.5 RESEARCH QUESTIONS .......................................................................................................................... 3 1.6 METHODOLOGY, FRAMEWORK AND STRUCTURE OF DISSERTATION......................................................... 3 2 CHAPTER TWO – RESEARCH METHODOLOGY................................................................................ 4 2.1 RESEARCH PROCESS .............................................................................................................................. 4 2.2 RESEARCH LIMITATIONS AND OPPORTUNITIES ....................................................................................... 5 2.3 ETHICAL CONSIDERATIONS .................................................................................................................... 5 2.4 STRUCTURES FOR TRANSPARENCY ......................................................................................................... 5 2.5 DISSEMINATION .................................................................................................................................... 5 3 CHAPTER THREE – RELEVANT STRANDS OF LITERATURE ......................................................... 6 3.1 DEFINITIONS OF HUMANITARIAN ASSISTANCE AND DEVELOPMENT ASSISTANCE ..................................... 6 3.2 SIX MAJOR AREAS OF POLICY AND RESEARCH LITERATURE RELEVANT TO THE DISSERTATION ................... 6 3.2.1 Assistance and its impact on conflict affected environments .............................................................. 7 3.2.2 Thinking in systems – Sustainable Livelihoods (SL)........................................................................... 7 3.2.3 Local Economy Development, Local Economy Recovery and the Early Recovery Cluster .................. 9 3.2.4 Direct versus indirect humanitarian response options....................................................................... 9 3.2.5 The poor are poor but they are many – Humanitarian Assistance and the informal sector ............... 10 3.3 PITFALLS OF LOCAL ECONOMY SUPPORT - WAR WINNERS AND SPOILERS ............................................. 10 4 CHAPTER FOUR - THE UGANDAN CONTEXT .................................................................................. 11 4.1 COUNTRY PROFILE – THE CONFLICT..................................................................................................... 11 4.1.1 Conflict, displacement and camp life .............................................................................................. 12 4.1.2 Returning, resettlement and development........................................................................................ 12 4.2 HUMANITARIAN AND DEVELOPMENT ASSISTANCE IN UGANDA ............................................................. 13 4.2.1 Development Assistance on National Level ..................................................................................... 13 4.2.2 Humanitarian Assistance in Northern Uganda................................................................................ 13 4.3 RESEARCH LOCATION KITGUM DISTRICT ............................................................................................. 14 4.3.1 Kitgum District Local Government - KDLG.................................................................................... 15 4.3.2 PRDP funding and distribution across sectors ................................................................................ 16 iv
  6. 6. 4.3.3 District Development Programme III – a move towards Local Economy Development LED ............ 16 4.3.4 Humanitarian Assistance and Development actors in Kitgum Town ................................................ 18 4.3.5 Local Economy actors in Kitgum Town........................................................................................... 18 5 CHAPTER FIVE – RESEARCH FINDINGS AND ANALYSIS.............................................................. 20 5.1 FIELD RESEARCH PROCESS AND METHODOLOGY .................................................................................. 20 5.1.1 Workshop methodology – Market Mapping..................................................................................... 21 5.1.2 Questionnaires............................................................................................................................... 23 5.2 HOW DID THE USE OF ACTION RESEARCH AS METHODOLOGY IMPACT ON RESULTS? ............................... 24 5.3 GENERAL FINDINGS............................................................................................................................. 26 5.4 SECTOR SPECIFIC FINDINGS ................................................................................................................. 30 5.4.1 Agriculture..................................................................................................................................... 30 5.4.1.1 Assessment of Agro Input Market..................................................................................................... 30 5.4.1.2 Workshop Agro Inputs and Market Linkages 28 July ...................................................................... 31 5.4.2 Rural Water Supply........................................................................................................................ 33 5.4.2.1 Workshop ‘Spare Parts for Hand Pumps’ SP4HP 23 June............................................................. 33 5.4.2.2 Assessment of SP4HP Market.......................................................................................................... 34 5.4.2.3 Lessons learnt from others................................................................................................................ 35 5.4.3 Construction .................................................................................................................................. 36 5.4.3.1 Test Group ......................................................................................................................................... 37 5.4.3.2 Analysis of questionnaires ................................................................................................................ 38 5.4.3.3 Workshop 22 July and Windows of Opportunity .............................................................................. 39 6 CHAPTER SIX - CONCLUSIONS AND RECOMMENDATIONS ........................................................ 41 6.1 CONCLUSIONS ..................................................................................................................................... 41 6.1.1 General Conclusions – Thinking in Systems.................................................................................... 41 6.1.2 Sector Specific Conclusions – Agriculture ahead of other sectors.................................................... 43 6.2 PROPOSALS AND QUESTIONS FOR FURTHER REFLECTION ...................................................................... 44 6.2.1 Humanitarian Assistance and Donor Community............................................................................ 44 6.2.2 Local Economy Actors.................................................................................................................... 49 6.2.3 Local Government.......................................................................................................................... 49 7 APPENDICES ........................................................................................................................................... 50 7.1 LIST OF MEETINGS AND INTERVIEWS_STATUS 31 AUGUST 2010............................................................. 50 7.2 SUMMARY OF QUESTIONNAIRE METHODOLOGY .................................................................................... 52 7.3 LIST OF ORIGINAL WORKSHOP REPORTS, ASSESSMENTS AND QUESTIONNAIRE ANALYSIS ......................... 53 8 BIBLIOGRAPHY...................................................................................................................................... 54 v
  7. 7. List of Boxes BOX 1 DEVELOPMENT INDICATORS (WDR, 2009)......................................................................................... 13 BOX 2 PRDP BUDGET OVERVIEW (USAID, 2010) ........................................................................................ 13 BOX 3 PRDP FUNDING FOR ACHOLI DISTRICTS - FINANCIAL YEAR 2009 / 2010 ............................................ 16 BOX 4 WWW TABLE UGANDA CLUSTER ....................................................................................................... 18 BOX 5 CHRONOLOGICAL FIELD RESEARCH PROCESS ..................................................................................... 20 BOX 6 NUMBER OF CONDUCTED INTERVIEWS ................................................................................................ 21 BOX 7 RANKED CONSTRAINTS FOR MAIZE MARKET IN LED WORKSHOP ......................................................... 23 BOX 8 RANKING OF CONSTRAINTS IN SUPPORTING LOCAL ECONOMY - HUMANITARIAN ASSISTANCE............. 27 BOX 9 W HICH BENEFICIARIES? FROM ILO/CWGER GUIDELINES FOR LER .................................................. 27 BOX 10 ILO / CWGER, GUIDELINES FOR LOCAL ECONOMY RECOVERY ........................................................ 28 BOX 11 MEASURES THAT WOULD HELP AGRO INPUT DEALERS TO EXPAND BUSINESS ...................................... 30 BOX 12 SLIDES PROVIDED BY NASEKO SEED COMPANY – CHALLENGES AND MITIGATION MEASURES .............. 31 BOX 13 CONSTRAINTS AND RESPONSE OPTIONS AGRO INPUTS ....................................................................... 32 BOX 14 CONSTRAINTS IN SPARE PARTS SUPPLY CHAIN ................................................................................... 34 BOX 15 PROPOSED SMART RESPONSE OPTIONS FOR A CAPACITY SUPPORT PROJECT .................................. 39 BOX 16 SAMPLE FROM QUESTIONNAIRE FOR HUMANITARIAN ACTORS ............................................................ 52 List of Figures FIGURE 1 CONCEPT OF EARLY RECOVERY (UNDP, 2006) ............................................................................. 2 FIGURE 2 CO-GENERATIVE LEARNING (EDEN AND LEVIN) ................................................................................ 4 FIGURE 3 COMPONENTS AND FLOW IN A LIVELIHOOD ....................................................................................... 7 FIGURE 4 SUSTAINABLE LIVELIHOODS CONCEPT ............................................................................................. 8 FIGURE 5 CRUNCH MODEL OF DISASTER RISK REDUCTION ............................................................................. 8 FIGURE 6 UGANDA IN AFRICA (MAP SOURCE)................................................................................................ 11 FIGURE 7 INTERNAL DISPLACEMENT MAP (UGANDA CLUSTER, 2009) ............................................................ 12 FIGURE 8 KITGUM DISTRICT .......................................................................................................................... 14 FIGURE 9 KAMPALA – JUBA (RED) AND KITGUM (BLUE).................................................................................. 14 FIGURE 10 ORGANIZATIONAL CHART KDLG .................................................................................................... 15 FIGURE 11 PRDP SECTORAL DISTRIBUTION KITGUM DISTRICT ........................................................................ 16 FIGURE 12 FUNDING ACC TO PRDP ................................................................................................................ 17 FIGURE 13 ANNUAL INCOME OF SERVICE SECTORS (LEBA)............................................................................. 17 FIGURE 14 VALUE CHAIN FOR MAIZE – LED WORKSHOP 19 JUNE 2010 ......................................................... 22 FIGURE 15 IMPORTANCE OVER COMPLEXITY .................................................................................................... 23 FIGURE 16 GOOGLE GROUP SET UP FOR RESEARCH ....................................................................................... 25 FIGURE 17 RANKING OF INDIRECT RESPONSES IN AGRICULTURE AND RURAL WATER SUPPLY.......................... 26 FIGURE 18 STAKEHOLDER ANALYSIS FOR INTENDED LED FORUM................................................................... 29 FIGURE 19 MARKET SUPPLY CHAIN SPARE PARTS FOR HAND PUMPS – 22 JULY 2010 .................................. 33 vi
  8. 8. FIGURE 20 CONSTRAINTS FOR EXPANDING SP4HP BUSINESS, QUESTIONNAIRE ............................................. 34 FIGURE 21 SUPPORT FOR EXPANDING SP4HP BUSINESS, QUESTIONNAIRE .................................................... 35 FIGURE 22 VALUE CHAIN FOR QUALITY CONSTRUCTION WORKS – TEST GROUP 22 JUNE ............................... 37 FIGURE 23 CONSTRAINTS FOR PRODUCING QUALITY CONSTRUCTION WORKS – QUESTIONNAIRE RESULT ........ 38 FIGURE 24 POPULATION AFFECTED BY DISASTER ............................................................................................ 45 FIGURE 25 DISRUPTION OF MARKET CHAINS ................................................................................................... 45 FIGURE 26 DIRECT RESPONSE TYPE HA ......................................................................................................... 46 FIGURE 27 PROBLEMATIC EXIT STRATEGY ...................................................................................................... 46 FIGURE 28 INDIRECT RESPONSE TYPE HA ...................................................................................................... 47 FIGURE 29 RE-BUILDING MARKET CHAIN .......................................................................................................... 47 FIGURE 30 PROPOSED LED FORUM STRUCTURE............................................................................................ 48 List of Pictures The cover page picture was taken in Kidepo National Park by a former colleague PICTURE 1 KITGUM MAIN STREET (AUTHOR, 2010) ........................................................................................ 15 PICTURE 2 KITGUM AERIAL MAP...................................................................................................................... 18 PICTURE 3 MAIZE MARKET MAPPING DURING LED WORKSHOP 19 JUNE 2010................................................. 21 PICTURE 4 CONSTRAINTS – LED WORKSHOP .................................................................................................. 22 PICTURE 5 PARTICIPANTS RANKING CONSTRAINTS .......................................................................................... 22 PICTURE 6 MEETING SP4HP 22 JUNE 2010................................................................................................... 24 PICTURE 7 OFFICE LOCATION.......................................................................................................................... 25 PICTURE 8 KITGUM AGRO INPUT DEALER ........................................................................................................ 30 PICTURE 9 AGRO INPUT AND MARKET LINKAGES MEETING 28 JULY ................................................................ 31 PICTURE 10 RESULTS FROM MARKET LINKAGES WORKING GROUP IN AGRO MEETING 28 JULY ..................... 32 PICTURE 11 PRESENTATION OF GROUP RESULTS, SP4HP 22 JULY.............................................................. 34 PICTURE 12 TEST GROUP MAPPING QUALITY OF CONSTRUCTION W ORKS.................................................... 37 PICTURE 13 PRESENTATION OF RESULTS FORM WORKING GROUP, CONSTRUCTION WORKSHOP 22 JULY ..... 39 vii
  9. 9. Abbreviations and Acronyms AFD Agence française de développement ALNAP Active Learning Network for Accountability and Performance in APSEDEC Acholi Private Sector Development Company Limited. BMZ Bundesministerium fuer Zusammenarbeit / Federal Ministry for CAO Chief Administrative Officer CWGER Cluster Working Group on Early Recovery DAO District Agricultural Officer DCED Donor Committee for Enterprise Development DCO District Commercial Officer DDP District Development Programme DE District Engineer DLG District Local Government DWO District Water Officer EU European Union FAO Food and Agriculture Organisation FIAS Foreign Investment Advisory Service GoU Government of Uganda. GTZ Deutsche Gesellschaft für Technische Zusammenarbeit HA Humanitarian Assistance HDI Human Development Index HIPC Highly Indebted Poor Countries HIV/AIDS Human Immune-deficiency Virus/Acquired Immunodeficiency syndrome HSM Holy Spirit Movement ICG International Crisis Group ICG International Crisis Group IDP Internally Displaced Person INGO International Non-Governmental Organization IRC International Rescue Committee IRIN OCHA news network KDLG Kitgum District Local Government LC Local Council LE Local Economy LEAD Livelihood Enterprises and Agricultural Development LEBA Local Economy Business Assessment LED Local Economy Development LG Local Government LLDC Land Locked Developing Countries LRA Lord’s Resistance Army MDG Millennium Development Goal MoH Ministry of Health MoLG Ministry of Local Government MTN Mobile Telephone network MTN Mobile Telephone Network NAADS National Agricultural Advisory Services viii
  10. 10. NGO Non-Governmental Organization NRA National Resistance Army NRC Norwegian Refugee Council NRM National Resistance Movement NUMAT Northern Ugandan Malaria Aids and Tuberculosis Project NUSAF Northern Uganda Social Action Fund NUTI Northern Ugandan Transition Initiative NUWATER Northern Uganda Water PEAP Poverty Eradication Action Plan PRDP Peace Recovery and Development Programme RDC Resident District Commissioner SDC Swiss Department for Cooperation ToR Terms of Reference UBOS Uganda Bureau of Statistics UGX Uganda Shillings UN United Nations UNCTAD United Nations Conference on Trade and Development UNDP United Nations Development Program UNHCR United Nations High Commissioner for Refugees UNICEF United Nations Children Fund UNOCHA United Nations Office for the Coordination of Humanitarian Affairs USAID United States Agency for International Development UTL Uganda Telecom Limited WASH Water, Sanitation and Hygiene WATSAN Water and Sanitation WDR World Development Report WFP World Food Programme WHO World Health Organization ix
  11. 11. 1 Chapter One - Introduction 1.1 Why this dissertation? *** “When I pass the courtyard of our compound to go for lunch, our supplier for pipes - Jimmy - lingers unhappily at the gate gazing at me with this look of “Can you talk to me – I have a problem”. I am not in the mood but I like Jimmy and he is the first one who has supplied us with exactly the material that we needed. He has a friend in Kampala whom he can apparently call and ask to send samples. The samples arrive with the public bus; he picks them up and brings them to the hospital where we are trying to renovate the entire sanitation system. We look at the sample, sometimes try it out practically, decide and give an order. It is really convenient to have Jimmy, because he is quick and sharp. He has a shop –at the bus park - which he calls HALF PIPE; but I think that it is not a REAL shop yet. So I go and ask Jimmy what is wrong and it turns out that he is waiting for our administrator who said that he cannot pay Jimmy because he has no bank account and our organisation cannot pay such amounts in cash. His implicit question to me is if – as the project manager for the rehabilitation works in the hospital - I can go and do something about it, talk to the administrator. I find the administrator whom I also like in his office explaining to me what I knew already: that Jimmy doesn’t have a bank account and that we cannot pay such large sums in cash. What would happen if everybody would do that? What would be the administrative costs and security risks implied? Although I know that my arguments lie outside our formal administrative and logistical rules and procedures I explain that we need Jimmy if we want to keep our deadlines in implementing the program and if we want to keep up high quality work. That buying through our own logistical channels takes instead of 3 days at least 3 weeks if not 3 months, that we do rarely get what we asked for - leave alone samples - that we had such a good success lately in the hospital, which helped improve the image of our organization in public etc. Although my talk does not fit into above mentioned logistical rules and procedures it does somehow impress. Jimmy will wait another 3 hours but he will get his money and we will get his pipes – this time. The last sentence of the administrator was that this was THE LAST TIME I am doing this.” *** This is one out of numerous stories that the author encountered in her decade of work for Humanitarian Assistance in various organisations in various countries, contexts and continents. It is not easy to purchase locally, use local contractors or hire local workers. The author agrees that sanitation systems, water networks, schools and health clinics have to be built as quickly and cost efficiently as possible. But should it not also be important who builds them and how? Could money and resources that are needed anyhow not at the same time support local economy? The motivation for this dissertation is to search for potentials for change so that Humanitarian Assistance is designed and implemented in a way that it achieves maximum positive outcomes in both provision of “conventional” humanitarian objectives like safe water and functioning health systems and in parallel provision of “new” objectives like support of local economy towards sustainable profit-oriented development. What needs to change to make all happy: to help Jimmy to earn money by selling pipes, to allow the administrator to follow rules and procedures, to give the rehabilitation project manager the material she asked for and to provide the hospital with a functional sanitation system? 1
  12. 12. 1.2 Background to the research Objectives of Humanitarian Assistance are “to save lives, alleviate suffering and maintain human dignity during and in the aftermath of man-made crises and natural disasters, as well as to prevent and strengthen preparedness for the occurrence of such situations” (IPB, 2003). Development Assistance which follows Humanitarian Assistance is more economy-centred. Coordination of Humanitarian actors was improved by the creation of the UN cluster system in 2005. The Early Recovery Cluster has the specific responsibility for promotion of long-term development (UNDP, 2006) Despite considerable progress, Humanitarian Assistance and Development Assistance still appear “disjointed” with a sharp change in objectives from the humanitarian to the development phase. By focusing on “humanitarian” objectives actors may run the risk to create prolonged dependency or even hinder independent sustainable development. Figure 1 Concept of Early Recovery (UNDP, 2006) 1.3 Problem Statement The importance of Local Economy Support in Humanitarian Assistance - specifically in the context of conflict affected environments – is acknowledged by the Donor community and concerned actors. However, up to date there is a lack of practical concepts that allow efficient implementation of stipulated policies. 1.4 Research Aim The research aims to investigate to what extent LE HA Humanitarian Assistance (HA) Programs during the transition phase from emergency to development currently support Local Economy and how best can this support can Common interest be strengthened by forming partnerships with Local Markets and in coordination with Local Governments (LG). LG The research specifically addresses the context of conflict affected environments. The author chose Northern Uganda because of her knowledge of location and regional context based on former assignments as Water and Habitat Project Manager for an International Humanitarian Organisation. Northern Uganda after over 20 years of violent internal conflict is in the transition to development and security conditions are favourable to conduct an individual research. The dissertation compares the three sectors Agriculture, Rural Water Supply and Construction. These sectors were chosen during an initial sourcing of interest by humanitarian actors on site. 2
  13. 13. 1.5 Research Questions Local Economy Support in Humanitarian Assistance 1.6 Methodology, Framework and Structure of Dissertation The research was conducted as ‘Action Research in Partnerships’. The author critically analyses pros and cons of the approach. More than a mere methodology, ‘Action research in Partnerships’ moves to the centre of the investigation and the analysis of its applicability becomes a research objective. The study was carried out with a Ugandan counterpart in order to provide the author - and the study - with a cultural understanding of the context and to make sure that capacity was built and knowledge remained in country. The field research from June to August included individual briefings, interviews, practical brainstorming and workshops and the distribution and analysis of questionnaires. Overall the research was well perceived by local actors. The turn-up for workshops was surprising. The dissertation is structured into 6 chapters. Chapter one introduces the research. Chapter two describes the methodology in detail. Relevant strands of literature are presented and analysed in chapter 3. Chapter four describes the Ugandan context both nationally and locally. The last chapters present detailed study findings (chapter five) and formulate conclusions, proposals and questions for further reflection (chapter six). 3
  14. 14. 2 Chapter Two – Research Methodology Due to the restriction in financial resources and time of an individual dissertation the author chose an exploratory approach which looks in detail into research issues, ‘scooping’ for potential opportunities and proposing areas of further research. The research was carried out as ‘action research in partnership with concerned actors’. This methodology builds on the Scandinavian model of Participatory Action Research which is based on the concept of co- generating knowledge between insiders and outsiders on a specific topic of interest (Eden and Levin as cited in Reason and Bradbury, 1991). However, in addition to and by further developing this approach the author chose taking a standpoint towards the various actors in the context of the research as partners as opposed to mere participants. One difference lies in the fact that the term ‘participatory’ is commonly used for an approach in which the researcher controls the research but invites the ‘to be researched’ population to participate. In her decision to use action research in partnerships, the author attempts to fortify the role of the ‘insiders’ (the people involved in the research) from participants to partners that co-decide about research aim and research question in order to make the expected result of the investigation relevant to their reality. Consequently, the author travelled to Uganda in April and visited together with her Ugandan counterpart 13 organisations essentially asking them: ‘This is my idea and this is the way I want to do it. Does it interest you? What interests you and how would you make use of it? Do you have any specific issues related to Local Economy that can be investigated with the model of co-generative learning?’ This initial visit confirmed interest of actors and defined three topics that informed the selection of three economic sectors (agriculture, rural water supply and construction). Figure 2 Co-generative learning (Eden and Levin) 2.1 Research Process The research process developed in four steps: Sourcing of interests An initial sourcing of interests identified issues that fell into three different economic sectors: (1) agro inputs and market linkages (agriculture), (2) supply chain of spare parts for hand pumps (rural water supply) and (3) quality of construction works and capacity of local contractors (construction). Workshops and Brainstorming Ideas In June and July, researchers conducted a series of workshop dedicated to sector specific issues (agriculture, rural water supply and construction). Workshop facilitation drew on Value Chain and Market Chain Mapping and Analysis tools to raise awareness for systemic thinking. Data Collection and Analysis from Questionnaires Questionnaires specific to actor groups Humanitarian Assistance and Local Economy were developed, piloted and distributed. After analysis of data, results were immediately disseminated to participants. 4
  15. 15. Study closure Researchers developed and formulated conclusions and recommendations. 2.2 Research Limitations and Opportunities Geographically the research was located only in one location (Kitgum). Kitgum is one of five Acholi districts of Northern Uganda. Results are valid for the specific location and indicative for generalization. Though, issues that came up through this scooping exercise help to identify ‘where to look for’ or are topics for further research.2 The opportunity of the research lies in its practical approach involving existing real actors and its potential to produce applicable concepts and tools that have been developed and agreed by a forum of concerned actors. The author is aware of the pros and cons of Action Research and has therefore defined the critical analysis of the methodology as a research objective. 2.3 Ethical Considerations Due to the practical aspect of the research and to the fact that researchers were ‘in the middle of things’, expectations were raised in partners that the research would help their immediate needs. There was an underlying attempt to confuse action research with a funded project. Another question was what would happen after the research. The majority of actors were extensively briefed with tailor made power point presentations in which researchers specifically underlined the fact that they were not implementing a project. Mitigation of described threats was attempted through the inclusion of the Ugandan Counterpart (he will remain working in the context) and the continuous inclusion and briefing of the ‘host’ business company (which availed office space to the researchers). Research documentation (reports of workshops, assessments and questionnaire analyses) was disseminated on a continuous basis. Documents crucial to the continuation of initiatives will remain on site with mentioned host company. 2.4 Structures for Transparency It is the author’s conviction that a research belongs to the people ‘that are being researched’ and not to the researcher herself. It was therefore necessary to define structures for transparency. The researchers created an open forum with a series of continuous workshops where the decision for critical issues was taken together. Analyses of questionnaire data were continuously disseminated. All participants were invited to join a google group set up for the research where results were displayed electronically. 2.5 Dissemination The question of dissemination was given high priority in the research preparation. Dissertation outlines had been sent at initial stages, during early preparation in January 2010 and again in May 2010 to various donors and Humanitarian Organisations in order to ask for their interest and inputs. Dissemination is therefore planned for two different audiences: to participants involved (because it is their research) and for donors and humanitarian organisations on a European and/or international level. 2 Concerning the regional context of Northern Uganda / Southern Sudan, the research could be expanded across the Acholi and Karamoja regions or across the country border into Sudan. 5
  16. 16. 3 Chapter Three – Relevant Strands of Literature Humanitarian Assistance is usually not or not yet associated with Local Economy. For long the inclusion of the private sector has been exclusively reserved for development issues. However, there is a growing amount of literature that indicates a significant move away from this ‘old’ paradigm. After a brief definition of Humanitarian Assistance and Development Assistance as concepts, the following chapters will outline five major areas of current policy and research relevant to the dissertation. 3.1 Definitions of Humanitarian Assistance and Development Assistance Humanitarian Assistance and Development Assistance are associates working towards a common long- term goal but operating under different mandates and in different phases. Humanitarian Assistance operates in exceptional cases, after man-made crises or after natural disasters. Its mandate is humanitarian in the sense that it provides relief to alleviate suffering of affected populations regardless of their race, religion or nationality. Humanitarian Assistance is a multifaceted body composed of Donors, UN agencies, International NGOs, National NGOs, the Red Cross and Red Crescent Movement and various other actors (ALNAP, 2010). Development assistance is a long-term endeavour of donor countries and developing countries to achieve sustainable global economic development and to reach Millennium Development Goals (UN, 2010). In an attempt to improve development assistance, Ministers of developed and developing countries and heads of multilateral and bilateral development institutions, agreed in Paris on principles that should increase assistance effectiveness (OECD, 2005). The ‘Paris Declaration’ underlines the partnership aspect between developing countries and donor countries. It postulates ownership of partner countries exercising effective leadership over their development policies, alignment of donor support on partner countries’ national development strategies and harmonisation of donors’ actions. 3.2 Six major areas of policy and research literature relevant to the dissertation The research builds in many ways on a variety of existing policy and research literature. The author grouped them into five categories according to their relation to the research. 1 Assistance and its impact on conflict affected environments 2 Thinking in systems – Sustainable Livelihoods 3 LED, LER, LES and the Early Recovery Cluster 4 Direct versus indirect response – voucher systems 5 The poor are poor but they are many The following paragraphs critically analyse available literature and describe their connection and relevance to the dissertation. 6
  17. 17. 3.2.1 Assistance and its impact on conflict affected environments When international assistance is given in the context of violent conflict, it becomes a part of that context and thus also of the conflict. (Anderson M.B, 1999) One of the first groundbreaking scholars in this field was Mary B. Anderson. Her well known volume Do No Harm – How Aid can support peace or war summarizes findings and conclusions from the Local Capacities for Peace Project. Based on intensive field research from Tajikistan, Lebanon, Burundi, India and Somalia she convincingly demonstrates that assistance given during conflict cannot remain separate from the conflict it operates in. Recent years have seen emerging consensus within the donor community on the importance of Private Sector Development in fragile and conflict-affected states. The Donor Committee for Enterprise Development (DCED) stipulates the emergence of a new paradigm of early engagement with the private sector as opposed to the ‘old’ paradigm where the private sector was only considered in the development phase after humanitarian aid and reconstruction (DCED, 2008). The SEEP network published a compilation of solicited case studies from market development practitioners working in crisis environments. Market Development in Crisis-Affected Environments: describes 13 case studies submitted from areas affected around the globe (SEEP, 2007). Based on the research, SEEP stipulates that it is possible—and recommended—to engage in market development almost immediately after a crisis. Although agencies seek to be neutral, their aid can unwillingly either reinforce conflict or help reduce tensions. This is specifically true for economic impacts resulting from assistance. For an IDP population like the one in Northern Uganda, which has been deprived for decades of their livelihoods and sources of income, it is of utmost importance if they perceive financial resources to remain within their local area or if they perceive donor money to be spent elsewhere in the country or across country borders. Anderson and SEEP challenge one of the ‘myths’ in humanitarian assistance: that organisations cannot engage in local economy support due to reasons of impartiality. In fact by – wrongly – assuming that the organisation remains impartial by not engaging with local economy, the opposite may be true. 3.2.2 Thinking in systems – Sustainable Livelihoods (SL) The evolution of the Sustainable Livelihoods concept constituted another major paradigm shift in Humanitarian Assistance. Chambers and Conway (1991) define the concept of Sustainable Livelihood. A livelihood comprises people, their capabilities and their means of living…A livelihood is environmentally sustainable, when it maintains or enhances local or global assets on which livelihood depends. It is socially sustainable when it can cope with and recover from stresses and shocks, and provide for future generations. An objective as it would typically be formulated in a WASH program (Water Sanitation and Hygiene) reads ‘Improve access to safe, reliable and affordable water supply’. This often results in defining outputs instead of outcomes: 50 water collection points established, 30 boreholes drilled etc. Figure 3 Components and flow in a livelihood 7
  18. 18. A ‘Food Security and Sustainable Livelihoods’ program would for example define an objective like ‘Protect and/or restore endangered livelihoods, and promote restoration of the local economy through local purchases’3 Because the term ‘livelihood’ signifies a ‘system’ composed of various elements, the concept is more conducive to formulating outcomes (self-sustainability increased) and not outputs (100 MT of maize seeds distributed). Another aspect of the Sustainable Livelihoods concept was the notion vulnerability or social sustainability (coping with stresses and shocks). Figure 4 Sustainable Livelihoods concept Understanding vulnerabilities provided the key for the formulation of current Disaster Risk Reduction (DRR) policies. Recent policy defines risk as proportional to the product of hazard and vulnerability and inversely proportional to the capacity to cope: R = (H * V) / C Whereas former disaster risk reduction was technology-centred and focused on mitigation of hazards, the new model calls for reducing vulnerability by strengthening livelihoods (Tearfund, 2005). The problem with the SL concept lies in the fact that it is often reserved for agriculture and food security related programs and that it focuses on rural areas. In fact there is no reason why programs of other sectors or of urban based problems should not be understood as related to livelihoods. The concept was explained in detail because it will play a role in explaining sector differences between agriculture, water supply and construction. Figure 5 Crunch Model of Disaster Risk Reduction 3 Original quotes form the mid term evaluation of the Consolidated Appeal 2010 for occupied Palestinian Territories. 8
  19. 19. 3.2.3 Local Economy Development, Local Economy Recovery and the Early Recovery Cluster Like Private Sector Development (PSD), the term Local Economy Development (LED) is used by development actors and appears rarely in the humanitarian sector. However, the creation of the Early Recovery Cluster in the UN cluster system with the specific task to ‘promote early steps that enable long- term development’ signifies a significant shift in thinking within the humanitarian assistance community. The Cluster Working Group of Early Recovery (CWGER) and the International Labour Organisation (ILO) have developed Guidelines for Local Economy Recovery (2010), where LER can be understood as an early contribution of the Humanitarian Assistance community towards Local Economy Development. The use of the term Local Economy Support in the dissertation acknowledges the fact that Humanitarian Assistance can sometimes only support Local Economy without having the opportunity to enter into development of LE. The World Bank (WB) defines LED as: The purpose of local economic development (LED) is to build up the economic capacity of a local area to improve its economic future and the quality of life for all. It is a process by which public, business and non-governmental sector partners work collectively to create better conditions for economic growth and employment generation (Swinburn, 2006) LED initiatives seemed to be positively perceived by the African community. LEDNA as the Local Economy Development Network for Africa acts as an active and important hub for various types of LED initiatives. From an economic perspective, Local Economic Development (LED) attempts to build on the relative economic advantage or the competitive economic advantage of a specific area. In the context of decentralisation is signifies economic development in districts led by local governments as opposed to central governments. The author suggests that LED can be regarded as a potential methodology to provide (cautiously planned) support for specific localities or local economies as positive drivers for alleviation of tensions or conflicts between different regions, as this would be the case in Uganda between the North and South. 3.2.4 Direct versus indirect humanitarian response options When a crisis reduces the purchasing power of households but not the supply of commodities, practitioners are experimenting with “demand” subsidies, as opposed to “supply” subsidies. This usually implies providing cash or vouchers to crisis-affected populations in order to re-establish demand due to lost income, hence re-linking supply chains, rather than proving in-kind relief supplies. The SEEP network suggests that in above described manner, Market-Integrated Relief (MIR) is beginning to narrow the gap between relief and development activities in the area of commodity provision (SEEP, 2007). Tools like Emergency Market Mapping and Analysis (EMMA), launched in March 2010 and widely used e.g. in Myanmar, Haiti and currently Pakistan (Flooding) is a system of mapping and analysing market chains in order to propose indirect humanitarian response options based on identified constraints (Albu, 2010). Indirect response options attempt to repair damaged linkages and clear bottlenecks and by so doing strengthen and re-build systems of Sustainable Livelihoods. In the food and agricultural sector, the donor community formulates the use of modern approaches of vouchers and cash injections. The recent European Commission (EC) Communication on Humanitarian Food Assistance advocates innovative responses such as using cash transfers and vouchers instead of in-kind assistance. Indeed, we believe that in many cases, when food is available in the region, cash transfers work better than direct food distribution because they link the fight against today’s hunger with support for long- term food security. (Unpublished EC assessment document received through private email) 9
  20. 20. 3.2.5 The poor are poor but they are many – Humanitarian Assistance and the informal sector When asked why they do not engage more with local economic actors, Humanitarian Assistance organisations often claim that these are not capable to function efficiently in the delivery process of relief operations. Constraint often refer to informality of actors e.g. non existing bank accounts. However, if local ‘poor’ and informal economic actors were regarded as part of the target population then including them into relief delivery processes and thereby enhancing their livelihoods would already be part of achieving program objectives. Prahalad and Hart (2001) argue that the perception that the bottom of the pyramid (BoP) does not contain viable market participants fails to see the growing importance of the informal economy among the poor (estimated to account for 40 to 60 percent of economic activity in developing countries). The International Labour Organisation (ILO), the World Trade Organisation (WTO) and the Organisation for Economic Co-operation and Development (OECD) have highlighted that ‘promoting pro-poor growth’ is one of their core objectives. The Department for International Development (DFID) and the Swiss Agency for Development and Cooperation (SDC) developed the guideline for ‘Making Markets Work for the Poor (M4P)’. The Growing Sustainable Business (GSB) initiative coordinated by UNDP grew out of the 2002 Global Compact Policy Dialogue on Business and Sustainable Development. (UNDP, 2010) Interestingly, above quoted documents do not propose described policies to the humanitarian assistance community. However and although non-profit, Humanitarian Assistance has a huge impact on the economy, is often one of the first possibilities to earn a living and can be a main driver for economic recovery. 3.3 Pitfalls of Local Economy Support - War Winners and Spoilers Local Economy Support has so far been described as a positive endeavour for poor people worthwhile to be supported. However supporting Local Economy has many pitfalls and can create potential conflict situations. It is undisputed that the contracting of local services has a conflict -sensitive and even dangerous side. Due to lack of knowledge about the local context the support can easily be directed towards a specific religious, tribal, regional, political group. (Killik et al, 2005) From her own experience the author remembers many situations where corruption or tensions between different groups created critical situations. HA organisations do have a responsibility to make detailed stakeholder assessments and follow a conflict-sensitive approach in their operations. However, it is not a solution to ignore local economic actors. Assistance will always have an impact on economy. So much money is suddenly available that assistance - through its sheer presence - is prone to create conflicts. One of the latest cases of massive Humanitarian Assistance is unfolding in Haiti after an earthquake on 12 January. The total Consolidated Appeal (CAP) of the Humanitarian Community for 2010 added up to 1.4 Billion USD. This is 20% of Haiti’s GDP. The author proposes to actively support local economy in the sense of building livelihoods but to be aware of the pitfalls and dangers to this attempt. There is a variety of literature that can be referred to while attempting to mitigate risks through cautions stakeholder assessments. (Ramsbotham et al, 2005). 10
  21. 21. 4 Chapter Four - The Ugandan Context Figure 6 Uganda in Africa (Map source) 4.1 Country Profile – the Conflict Uganda belongs to the group of Land Locked Developing Countries LLDC. The UN has recognized this group as among the most disadvantaged countries facing severe challenges to growth and development. (UNCTAD, 2010). It is also in the middle of a conflict-ridden region bordering the Democratic Republic of Congo, Sudan, Rwanda, Kenya and Tanzania. Uganda gained independence from Great Britain in 1962. Several decades of political unrest and 4 widespread violence followed (IRIN, 2007) . The Northern part of Uganda has experienced intermittent insecurity since the coup led by Idi Amin Dada in 1970, which toppled the first post independence government. In 1986, President Yoweri Museveni wrested power through a military coup after a five-year guerrilla war. He abolished political parties, blaming them for the country's decades of turmoil. After 10 years of military rule in a non-party system, he was elected in 1996 following the formation of a new constitution. In 2005, the government held a referendum in which the public voted overwhelmingly to return the country to a multiparty system. Museveni remains Uganda's leader for the last 24 years, having won a controversial third term in office in February 2006 and running for a fourth term in the coming election due in February 2011. 4 Mamdani (1976) offers an analysis of Politics and Class Formation in Uganda, underlining the importance of the colony for the British Metropole as a supplier of agricultural produce, cotton in particular. I am directed by the Governor to state that…Natives to be informed that three courses are open, cotton, labour for Government, labour for planters. Only one thing that cannot be permitted (is) to...be of no use to themselves or the country. (Telegram of Chief Secretary to the P.C. Western Province, 1924; in report of the Ormsby-Gore commission, 1925) Mamdani claims that specifically the northern part of Uganda was perceived as a labour reservoir for the cash crop economy of the South which in turn represented a raw material reserve for the British government. The impoverishment of the North became a precondition for the relative development of the South. Field research in the framework of the dissertation indicates that agriculture is partly over-emphasized as the sole sector for economic development. This may correlate to the fact that Uganda was per definition declared ‘agricultural produce supplier’ in its early history. 11
  22. 22. 4.1.1 Conflict, displacement and camp life Since 1987, the year after the Museveni government came to power, Northern Uganda has been the scene of a violent conflict. A rebel insurgency started as the Holy Spirit Movement by Alice Lakwena and was later taken over by Joseph Kony with his infamous Lord’s Resistance Army. According to IRIN, the Humanitarian News and Analysis project of UN-OCHA, the conflict in Northern Uganda has forced some 1.7 million people - close to 90 percent of the region's population - to leave their homes to ‘the relative safety’ of about 200 camps for internally displaced persons. (IRIN, 2007). The majority of the population of Northern Uganda holds the view that the government forced them into camps, giving the entire population - most notably the districts of Gulu, Kitgum and Pader – the ultimatum to leave their homes to provide room for counterinsurgency operations against rebels in 2001. Figure 7 Internal displacement map (Uganda Cluster, 2009) The displaced population claims that the camps did not provide means for survival and lacked the possibility of farming, resulting in severe malnutrition and making the population entirely dependent on humanitarian aid. The Utrecht University Centre for Conflict Studies in collaboration with Makerere University and Gulu University conducted an analysis of Communities’ and Humanitarian Actors’ Perspectives on Socio- Cultural Dynamics in the Acholi and Lango Entry Points (2009). It was the day after I was abducted that the government told people to return back to the camps and that they gave them an ultimatum of 24 hours, after which they started to shell the village. This was somewhere around September 2001. (Interview with a youth member and formerly abducted; code G- interview 6). The majority of the Northern population maintained or increased their hostility against the government – despite suffering caused by the cruel behaviour of the LRA including abduction of a high number of children to become child soldiers. 4.1.2 Returning, resettlement and development In 2006, the Government of Uganda and the Lord’s Resistance Army (LRA) signed a formal cessation of hostilities agreement during Juba peace talks under the auspices of the South Sudan government (ICG, 2006). With the return of some calm, people started returning home to their original villages and resuming subsistence farming for meeting their consumption needs and small scale economic activities5. Since 2009 and as the population attempts to resettle, humanitarian organizations began scaling down operations in Northern Uganda. 5 As of June 2020, an estimated 90% of the population has returned home. 12
  23. 23. 4.2 Humanitarian and Development Assistance in Uganda 4.2.1 Development Assistance on National Level With a Human Development Index of 0.514 Uganda ranks 157 out of 182 countries. The Human Development Index (HDI) is a comparative measure of life expectancy, literacy, education and standards of living for countries worldwide. In comparison the HDI of the UK is 0.947 (World Bank, 2009). The Government of Uganda (GoU) launched the Poverty Eradication Action Plan PEAP as the country’s development framework in 1997 and revised it in 2000 and 2004. It is grouped under five ‘pillars’: (1) Economic management, (2) Production, competitiveness and incomes (3) Security, conflict-resolution and disaster-management (4) Good governance and (5) Human development. (GoU, 2004) Uganda has always received high amounts of Development Assistance. It also was the first country to qualify for the Highly Indebted Poor Countries (HIPC) debt relief initiative in 1998. Box 1 Development Indicators (WDR, 2009) 4.2.2 Humanitarian Assistance in Northern Uganda Since 2007, Humanitarian Assistance in Northern Uganda is provided under the Peace, Recovery and Development Plan (PRDP). The PRDP is a program agreed to by the Government of Uganda and the Donor community specifically meant to stabilise and promote recovery of conflict affected districts during a three years period. All stakeholders are expected to align their programmes to this framework. Development partners supporting recovery and development should contribute to the implementation of the PRDP. The overall cost is estimated to be near $600 million USD. 30 % should be provided by GoU through sectoral and line Ministry allocations. Many Humanitarian Assistance actors have been and still are present in Northern Uganda. At the time of writing, Development Assistance like USAID and the EU implement a significant amount of programs. The World Bank has pledged 100 Million US $ for the second Northern Ugandan Social Action Fund (NUSAF2) program. Box 2 PRDP budget overview (USAID, 2010) 13
  24. 24. 4.3 Research Location Kitgum District Figure 8 Kitgum District Since the relative peace and start of the reconstruction phase in Southern Sudan, the North of Uganda, so far disadvantaged due its geographical distance from the South has attained an advantaged position due to its closeness to Sudan. A new tarmac road leads from Kampala via Gulu to Juba, the capital of Southern Sudan. From Gulu to Kitgum it is 3 hours of dirt roads. Kitgum would receive an enormous economic boost if it received a tarmac road leading into Sudan. Kitgum district has a population of 365’000. 67.7 % of Households are employed in the agricultural sector, 40% earn their income from commercial agriculture, 16.8% sell labour; 14.8% are employed in the Civil / Public service. (LEBA, 2010) In 2002, Kitgum was one of three Acholi Districts: Kitgum, Pader and Gulu. Since 2009 Kitgum (initially consisting of Lamwo and Chua counties) has been divided into Kitgum and Lamwo districts. Following most program and funding figures the research refers to the old Kitgum district encompassing both Lamwo and Chua. Figure 9 Kampala – Juba (red) and Kitgum (blue) 14
  25. 25. Picture 1 Kitgum Main Street (Author, 2010) 4.3.1 Kitgum District Local Government - KDLG District Local Governments in Uganda are arranged in an administrative and a political part. The Chief Administrative Officer (CAO) heads the administrative part, the Chairman Local Councillor Level 5 (LC5)6 the political part. On arrival for field research in June 2010, the researchers presented the study in tailor made presentations to Vice Chairman LC5, assistant CAO, District Commercial Officer, District Agricultural Officer, District Engineer and District Water Officer. DAO, DCO and DWO later became very active and main participants in the brainstorming and workshops part of the research for their respective sectors (agriculture, rural water supply). This was less the case for the District Engineer (construction). Chief Administrative Officer CAO Assistant CAO Distric District Works District Health District Education others Agricultural Commercial District Engineer Officer Officer Officer Officer Roads, Water and Mechanics etc Sanitation DWO Figure 10 Organizational chart KDLG 6 Administrative levels are district (LC5), county, sub-county (LC3), parish and village (LC1). 15
  26. 26. 4.3.2 PRDP funding and distribution across sectors The PRDP is the main vehicle for the reconstruction of the North. According to official figures (Daily monitor, June 2010), Kitgum received 5.1% and Acholi region 21.1 % of the total PRDP amount. PRDP Financial Year 2009 / 2010 District Allocations in 1000 UGS Education Health Roads Water Total % of PRDP Amuru 1'592'735 1'068'219 345'059 39'400 3'045'413 4.00% Gulu 1'801'780 1'568'908 446'957 930'565 4'748'210 6.20% Kitgum 1'609'744 591'819 1'325'009 376'519 3'903'091 5.10% Pader 2'172'338 1'381'939 368'878 463'167 4'386'322 5.70% PRDP total Acholi Region 7'176'597 4'610'885 2'485'903 1'809'651 16'083'036 21.10% PRDP total 28'711'691 23'188'917 16'533'859 7'934'685 76'369'153 100% Box 3 PRDP funding for Acholi Districts - financial year 2009 / 2010 PRDP positions refer to four sectors: Education (35%), Health (16%), Roads (40%) and Water (9%) (Percentages for Kitgum). The striking element of Box 4 is the fact that agriculture (production) is not represented in the PRDP although information gained through field research gives the impression as if the main thrust of assistance were directed towards agriculture. Researchers asked this question to Government Officials and will refer to the issue under findings in chapter five. In Uganda, District Local Governments have to out-contract services above 1 Mill UGX (500 USD). Therefore PRDP projects are tendered i.e. will be implemented by the private sector. In a selection process, a service commission avails contracts to service providers / contractors who predominantly are Local Economic Actors. Based on the official list of contracts, infrastructure components in the respective departments, e.g. construction of schools in Education, construction of clinics in Health make up 84% of the total budget. Figure 11 PRDP sectoral distribution Kitgum District 4.3.3 District Development Programme III – a move towards Local Economy Development LED Parallel and in addition to the PRDP, Kitgum is one of five districts currently piloting best practises for Local Economy Development under the District Development Programme DDP III, which is funded by UNDP and UNCDF to be implemented by the Ministry of Local Government (MoLG) in 15 Districts. The intended output of the program is “clarifying and strengthening the role of Local Governments for LED promotion through coordination of the actions of other LED promotion actors and intervening in a focused manner towards enhancing the local business environment through the provision of economic infrastructure and streamlining the regulatory environment”. (UNDP, 2008) As a first step, MoLG conducted a Local Economy Business Assessment. The LEBA report is based on data from the Uganda Bureau of Statistics (UBOS) census 2002 updated with statistical data from 16
  27. 27. Humanitarian Assistance and original market surveys. LEBA looks at Agriculture, Industry, Commerce and Services7. The assessment recommends the agricultural sector for Local Economy Development. Kitgum’s Draft Strategy Plan for Local Economy Development contains the mission statement: ‘To stimulate local economic development in Agriculture, Agro processing and service sector by facilitating Private Public Partnerships’. (LED team KDLG, 2010) Although agriculture undoubtedly presents the main livelihood potential it is surprising that LEBA and the Draft Strategy Plan consider only the agricultural sector for Local Economy Development. Here we have the opposite of the picture presented by the PRDP sector distribution: Components of total PRDP Annual income per sector according to LEBA non- Industry Construction infrastruc 31% 0% ture 16% infrastruc Services 56% Trade ture 84% 13% Figure 12 Funding acc to PRDP Figure 13 Annual income of service sectors (LEBA) The Peace, Recovery and Development Plan for Northern Uganda (PRDP) provides funding only to ‘services’ (schools, roads, clinics, water points) not to production (agriculture). And, 84% of this funding is spent on construction / infrastructure projects. On the other hand the UNDP / UNCTAD District Development Program evaluate the construction sector as virtually non-existent and assess only agriculture (production) as a viable sector for Local Economy Development. In an interview with the Ministry of Local Government on 12 July 2010, the DDPIII Program Coordinator told the researchers that he ‘could never bring himself to look at construction or manufacturing as sector … for me they are not ends in itself but just for supporting agriculture and can therefore not be regarded as sectors’. These results presented a riddle to the researchers and posed below formulated questions which the researchers posed to District Officials of the Local Government. Answers will be analysed as findings in chapter 5. Why is agriculture not included in the PRDP? Do we have the right information? Why – if 67% of the population receive their income through agriculture - is the sector not represented? Why – if 84% of the PRDP money flows into infrastructure / construction is this sector not regarded as a viable sector for economic development? 7 For construction which falls under services the report states that ‘there was no updated data on construction in the district’. The District Engineer in a short interview on 30 June 2010 confirmed that he did not possess data. This may be due to the fact that construction was not included in the cluster system and the humanitarian community could therefore not contribute statistical data. 17
  28. 28. 4.3.4 Humanitarian Assistance and Development actors in Kitgum Town The Uganda Cluster website lists 39 Humanitarian organisations working in Kitgum District grouped into six clusters in August 2009. The cluster system has since been abolished and has been replaced by sectoral meetings headed and organised by the Kitgum District Local Government. At the time of the research, some HA had scaled down operations or closed. USAID was present with sub-offices of Northern Ugandan Transition Initiative (NUTI), Northern Ugandan Malaria Aids and Tuberculosis Project (NUMAT), Northern Uganda Water (NUWATER) and Livelihoods and Enterprises for Agricultural Development (LEAD). Box 4 WWW table Uganda Cluster 4.3.5 Local Economy actors in Kitgum Town Picture 2 Kitgum Aerial Map 47% of all business enterprises sampled by LEBA are located in urban areas, 16% in peri-urban areas and only 37% in rural areas. (LEBA Assessment 2010). Kitgum town has a relatively small Local Economy environment. In the framework of the dissertation, researchers were in contact with agro input dealers, construction contractors, timber and metal fabrication workshops and hardware shops (who also sell spare parts for hand pumps). The district has four radio stations and three Mobile telephone operators are MTN, Zain, UTL and Orange and one post office. Financial institutions in Kitgum town comprise four commercial banks and one Micro Finance Institution. 18
  29. 29. ‘TLA free zone’8: Monica and Collin want to start a bakery *** *** 8 PLEASE REMEMBER THAT THIS MEETING IS AN ACRONYM FREE ZONE - SO PLEASE LEAVE YOUR TLA'S *(THREE LETTER ABBREVIATIONS) AT THE DOOR !! From an invitation for the Haiti Logistics Civil Military Coordination Meeting Friday 7 May 2010 sent by haiti.logs-bounces@logcluster.org on behalf of uncmcoordhaiti 19
  30. 30. 5 Chapter Five – Research Findings and Analysis The following chapters serve two purposes. Firstly, they describe per sector the process of workshops and assessments in relation to what ‘insiders’ or local actors had wanted to know: How can we improve with SMART9 response options identified issues of lack of agro input dealers, lack of Sp4HP and lack of quality of construction works? Secondly, researchers - as ‘outsiders’ - interpret processes and results in search of answers to questions in the framework of the research: Local Economy Support in Humanitarian Assistance: Where are we now? How can we improve? How did the use of Action Research as methodology impact on results? For the sake of the dissertation the author chose to present findings in the following sequence: (1) Action Research as methodology, (2) general findings related to Local Economy Support and (3) sector related findings to Local Economy Support. ‘Insiders’ may be more interested in sector related chapters. The learning process of researchers developed iteratively. For the reader the first chapters may appear as summaries of findings that are detailed in following chapters. For better orientation, Chapter 5.1 gives an overview over the field research process. 5.1 Field Research Process and Methodology ‘Insiders’ or local actors had chosen three issues of interest: agro input and market linkages (agriculture), supply chain of spare parts for hand pumps - SP4HP (rural water supply) and quality of construction works - QoCW (construction). This provided the framework to the field research from June to August 2010. Box 5 Chronological field research process 9 Specific, Measurable, Attainable, Realistic, Time bound 20
  31. 31. Researchers and local actors conducted series of workshops separately for each of the three sectors. During workshops participants mapped the system in which they were operating in the form of a market supply chain or a value chain10. Based on the mapping they identified constraints pertaining to the system and formulated potential response options. For further clarification, researchers conducted two detailed assessments of agro input dealers and SP4HP dealers and suppliers. During the last three weeks of field work and after the Type of Actor Count of Organisation “brainstorming and workshops” part of the research, actor groups HA and LE were given questionnaires in which they Donor 6 could formulate their positions, interests, constraints and HA 16 recommendations regarding LES in HA. Local Government KDLG 11 actors were interviewed. LE 11 Researchers conducted 49 formal and numerous informal LED 3 meetings / interviews: 22 with HA actors (6 meetings with donors), 11 with the Kitgum District Local Government (KDLG) MoLG 1 and one with the Ministry of Local Government. Meetings with Training school 1 Local Economy actors were often informal. Grand Total 49 Box 6 Number of conducted interviews 5.1.1 Workshop methodology – Market Mapping In a public meeting on 18 June the District LED team presented the draft LED strategy plan for Kitgum District to external actors (humanitarian assistance, financial institutions, agro processing associations etc). Researchers were asked to outline their research in form of a power point presentation. The presentation contained slides explaining the use of market mapping. Subsequently, the LED team requested the researchers to carry out a workshop on the use of the tool taking the maize market as an example. The following paragraphs explain the methodology of market mapping as it was used in the research with the help of a.m. workshop as an example. The logic remained the same throughout the research process although the tool was continuously adapted according to sector specific contents. Participants formed two groups and were given the following task and lead question: (1) Task: Map the market for maize that describes demand and supply and identify bottlenecks. Brainstorm for improving the existing situation: List and rank bottlenecks and formulate potential response options based on identified constraints. (2) Lead Question: How to promote the development of the maize market from subsistence into commercial for economic growth? Picture 3 Maize market mapping during LED workshop 19 June 2010 10 A supply chain links commodities from their point of origin to their point of consumption. In a value chain a product passes through various activities that all add value to the product. Following these definitions the author uses the term market supply chain if a consumer needs a good and the term value chain if a producer wants to sell a good. In this regard, quality of construction works is a value chain problematic. Agro inputs and spare parts are treated as supply chains, consumers are in need to be supplied. 21
  32. 32. Groups received colour coded cards representing value chain actors (yellow), support services (green) and regulatory environment (red). As a first step they should define actors in the chain by writing their names on cards and then linking them. In a second step they should add support services and key infrastructure and in a third step map the regulatory environment. Subsequently each individual of the group was asked to identify his or her perceived biggest bottleneck / problem / constraint in the system by putting a red X on it. The group then wrote all identified constraints on a flip chart paper. After groups had presented their results to each other, they ranked identified constraints. Picture 4 Constraints – LED workshop Picture 5 Participants ranking constraints Groups had identified the following market system: Figure 14 Value Chain for maize – LED workshop 19 June 2010 22
  33. 33. Ranking identified a list of main constraints Ranking Constraint 1 Absence of a seed agency or Agro Input Retailer (seeds, tools, chemicals, fertilizers) 2 Poor trunk road network 3 Certification 4 Processors 5 Warehousing Box 7 Ranked constraints for maize market in LED workshop After the ranking, actors were asked to identify three constraints on which they wanted to focus for finding SMART response options. The guidance was to pick first issues that were important but achievable in terms of complexity (see Figure 15). The process up to this point should make participants aware of the system in which they operate in order to understand constraints in their complexity. Ultimately it prepared the ground for formulating response options to identified issues. Participants understood the tool quickly. Using it created animated and participatory discussion. Participants commented that now they could ‘see the problem clearly’. Interestingly, in this first workshop participants stopped when it came to formulating response options and instead started a discussion if it really was maize that should be supported as a crop. The key question had not been sufficiently defined and agreed as a common interest in order to allow participants to agree on potential response interventions. A good example for the researches to think well about the questions that they would formulate in their research related workshops to follow! Figure 15 Importance over complexity 5.1.2 Questionnaires Towards the end of the study researchers distributed questionnaires to HA organisations and LE actors. A questionnaire had also been designed for the Local Government. In contrast to the other two groups Local Government partners felt more comfortable in interviews. Appendix 2 contains a detailed summary of questionnaire methodology. 23

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