Humanitarian responses, including local and regional procurement (LRP) and/or cash-based responses that employ existing market structures have often been referred to as “market-integrated Relief”. Abolute Options believes that working through markets enhances humanitarian relief efforts and ultimately speeds recovery.
Conceptually, these approaches entail “matching” responses with underlying causes of food insecurity or other disruptions to livelihoods. In this sense, appropriate responses to consumption or demand disruptions will include access subsidies, such as vouchers, cash and training, while responses to production or supply disruptions will include availability subsidies, such as distribution of in-kind food, or inputs. These responses are designed, or accompanied by corollary program activities, so as to sustainably “correct” for these market failures.
Market-integrated relief also entails the integration of existing private sector supply chain actors and institutions to the degree possible. This may include purchase of commodities from local suppliers, the use of local transporters and storage companies, and distribution through private transport companies in target areas.