Income-Generating Activities - Action Against Hunger

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Field handbook • Scientific and Technical Department In many cases the vulnerable population carries out activities that have potential to generate income. However, within the chain from production to sales they may face difficulties that dissuade them from increasing or expanding the activity. A proper identification of the obstacles and viable solutions can have an impact on income generation. Example 2: Increase in the output of some traditional IGA in Armenia Syunik region, in the south of Armenia, was affected by the collapse of the Soviet Union as well as the later conflict with Azerbaijan for control of Nagorno Karabaj. The adverse geographical and climatic conditions within this region, has had an important impact on the Sisian population affected by an economical depression. The vulnerable inhabitants of the rural zones of the district collect rosehips that grow naturally in the area for their own consumption. Because they do not have contacts with interested buyers, or infrastructure for drying the fruit, they do not collect much of the abundant harvest available. In 2005, after a market study, the ACF team presented information regarding commercial contacts highlighting the potential of the product to the communities. The vulnerable population was especially motivated to increase their collection of rosehips in order to increase their cash incomes. However, when considering the possibility of creating a drying plant to be managed by a group of interested households, the communities preferred that a local business person manage and finance a part of the plant, while agreeing to guarantee the purchase of a significant volume of rosehips from the communities. ACF supported this income diversification strategy by supporting the construction of a plant managed by a local businessperson who had signed a purchase agreement with the pickers. The decision to have the plant managed by one local businessperson was taken due to the seasonality of the activity, the amount of time that would have to be invested in managing the plant and the possible risks in commercialization. • Diversification of the sources of income generation through: – Promotion of new initiatives. For example, initiation of processing activities to have added value on raw materials. – Creation of links between different activities, expansion and improvement of the local population’s position in the chain of production and/or services. Support for starting new IGA could be directed towards profitable processing activities for populations dependent on the sale of primary materials, creating value-added products. This can also be coordinated with technical improvements to increase the volume of primary goods production. INCOME GENERATING ACTIVITIES: A KEY CONCEPT IN SUSTAINABLE FOOD SECURTIY 15
➔ Example 3: Creation of IGA in the Philippines Philippines, 2005 On the Island of Luzon, northern Philippines, ACF developed a 4-year support programme for the fishing associations of the zone. Use of the rivers for fishing and fish production represented one of the main resources for the population; however, the fishing methods degraded the local environment and its productive potential, irreversibly reducing the production and increasing the vulnerability of the fishermen. After a food security assessment, ACF identified the possibility of introducing sustainable production methods and foresaw the opportunity of developing small complementary initiatives to improve the living conditions of the association members. Smoked and dried fish, and sauces made from fish, are widely consumed in the zone. Taking into account the existing demand, the production of the fishermen and the interest of an associated group of women, a drying and processing plant were constructed, accompanied by a process of training and support in order to manage the plant and sell the products. In this case it was possible to take advantage of an opportunity to generate added value and more income through a support programme for sustainable fishing. As is true with any type of food security programme, there are no universal recipes for income generating programmes, rather each context with its specific set of problems requires solutions adapted to that reality. IV. The social dimension of the programmes Even though the aim of the promotion of IGA is to increase incomes, this does not mean that these programmes do not have other dimensions beyond purely financial goals. This type of programme can also lead directly or indirectly towards the following objectives: • To increase the social well-being of the communities. • To improve the socio-economic integration of displaced or refugee populations. • To promote links of solidarity between community members, especially towards the more vulnerable population. • To promote equal opportunities between men and women, by promoting the participation of women into IGA programmes. 16 INCOME GENERATING ACTIVITIES: A KEY CONCEPT IN SUSTAINABLE FOOD SECURTIY
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➔ Incomes and expenses of the IGA
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➔ • The success of the experien
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CHAPTER 6: LESSONS LEARNED Some of
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CHAPTER 7: FREQUENTLY ASKED QUESTIO
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