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Livelihood
asset(s)
Example(s) of types of assistance
Financial capital • Asset replacement, including equipment (e.g., sewing machines and small
food processing equipment), inputs for agricultural production and environmental
management (e.g., fishing equipment, seeds, fertilizer, and land
tillers), livestock, and inventory
• Debt cancelation
• Micro-grants for self-employment in micro, small and medium enterprises
Table 3.2 Examples of the types of assistance
that start-up grants and packages
can provide
Human capital • Short-cycle skills training
• Access to business development services
• Technical assistance to communities and local/national government bodies
Physical and
social capital
• Construction or rehabilitation—and/or provision of the materials and
equipment needed for construction or rehabilitation—of key infrastructure
(e.g., community access roads, small drainage and water supply systems,
housing, marketplaces, schools, clinics, community resource/recreation
centres, childcare centres, religious centres, community cemeteries, playgrounds)
• Development of nonconventional energy plants and home energy systems
(e.g., biogas and solar)
• Establishment or rehabilitation of community-managed micro and small
enterprises (e.g., handloom and cottage industries, pottery, fish processing,
and rice husking)
Natural capital • Provision of tree seedlings and equipment for ecosystem management;
establishment of tree nurseries; and reforestation
Political capital • Participatory planning for recovery
• Community contracting
• Local government capacity development for recovery and development
3.2.2 Developing and implementing a targeted self-employment project
This section provides guidance on the following aspects of developing and implementing
a targeted self-employment project: (a) situation assessment, (b) developing a project
document, (c) management arrangements, (d) recruitment and procurement, (e) selection
of participants and enterprises to support, (f) linking start-up participants with recovery
and development interventions, (g) monitoring and evaluation (M&E), (h) partnerships, (i)
communication strategy, and (j) exit strategy. Both the development and the implementation
of the project should facilitate and encourage the active participation of local and/or
national authorities and crisis-affected people, including women, youth, displaced people,
people with disabilities, and ex-combatants, whenever possible. Due to the urgency
of setting up livelihood stabilization projects, the projects in question are sometimes
designed without sufficient consultation; this should be avoided to the extent possible.
3.2.2 (a) Situation assessment
The livelihoods and economic recovery assessment (see Chapter 2) is usually the primary
source for information on whether a targeted self-employment project is appropriate for
the local context. The assessment also identifies the existing opportunities and constraints
for implementing livelihoods and economic recovery interventions. A supplementary rapid
survey may be needed at the local level to clarify the communities and community members
who would most benefit from the project, the most suitable implementing partners, and
the most appropriate livelihood activities to be supported. Supplementary data gathering
may also be necessary in order to ensure compliance with the guiding principles for
livelihoods and economic recovery programming, such as gender sensitivity, conflict and
disaster sensitivity, and sustainability. 22 A risk assessment should be conducted to address (a)
Incense Making
(Photo by UNDP Nepal)
22 The guiding principles are presented in section
1.3.4 above. Key points to consider for ensuring
that crosscutting priorities are effectively incorporated
into targeted self-employment projects
are presented in section 3.2.3 below.
Livelihoods & Economic Recovery in Crisis Situations