Feasibility study on a capital-based income generation scheme for ...

Contents
Acknowledgements ....................................................................................................... 1
Abbreviations.................................................................................................................2
Preface ...........................................................................................................................3
Executive summary.......................................................................................................4
1. Introduction and background....................................................................................6
1.1. Rationale, objectives, process of the <strong>study</strong> and structure of the report ...........................6
1.2. Government and agency response to the tsunami emergency ..........................................8
1.2.1. Cash transfers..................................................................................................................................9
1.2.2. Cash-for-work...............................................................................................................................10
1.2.3. Recovery of economic activities .................................................................................................10
1.2.4. Achievements and problems.......................................................................................................11
1.3. Review of experience with cash and capital transfers before, in, and after emergencies
...........................................................................................................................................................11
1.3.1. Review of the international experience with cash/capital transfers ......................................11
1.3.2. Review of the experience with cash/capital transfers to tsunami-affected households......14
1.3.3. Experience with transfers in pre-tsunami Sri Lanka................................................................15
2. Analysis of livelihood recovery needs and programmes in Trincomalee District... 17
2.1. Review of tsunami effects on livelihoods............................................................................17
2.1.1. Faisal Nagar, Kinniya Division, Trincomalee...........................................................................17
2.1.2. Gopalaporum, Kuchchaveli Division, Trincomalee ................................................................19
2.1.3. Sampur and Nallor, Muthur Division, Trincomalee................................................................20
2.2. Assessment of ongoing and planned livelihood recovery programmes of Save the
Children and other agencies..........................................................................................................21
2.3. Detailed analysis of extremely poor households................................................................23
2.3.1. Analysis of their structure and income ......................................................................................23
2.3.2. More detailed analysis of the livelihoods of labour-scarce households.................................24
2.3.3. Needs of children living in extremely poor households..........................................................25
3. Options for supplementing livelihood recovery efforts with cash/capital transfers
..................................................................................................................................... 28
3.1. Medium-term monthly cash transfers to mitigate shock when relief programmes
terminate ..........................................................................................................................................28
3.2. Unconditional one-off capital transfers for households not yet employed or engaged
in income generating activities......................................................................................................29
3.3. Supplementing/replacing in-kind asset transfers or conditional capital transfers with
unconditional cash/capital transfers............................................................................................30
3.4. Capital-based transfer incomes for extremely poor and labour-scarce households.....30
4. A capital-based income generating project for extremely poor and labour-scarce
tsunami-affected households ...................................................................................... 32
4.1. The project concept................................................................................................................32