X.13 Market-Based Programming

Market-Based Programming (MBP) refers to a range of programme modalities that are based on understanding and supporting local sanitation market systems. It is often distinguished from in-kind delivery of goods or services like slabs, soap or buckets and direct building of sanitation infrastructure although the boundaries between the modalities are fluid. The choice of the appropriate sets of modalities depend on the humanitarian context, including type and phase of an emergency, potential public health risks, WASH needs and vulnerabilities, the application level and target group (individual, household, communal and institutional levels), the knowledge, attitude and practice of the affected population as well as the intended outcomes of a programme. Appropriate levels of market assessment and analysis, along with a needs assessment and response analysis, should form the foundations of all sanitation programmes to ensure that they are responsive to realities on the ground, rather than being predetermined by standard approaches and assumptions.

The means of safely collecting and hygienically disposing of excreta and liquid wastes for the protection of public health and the preservation of the quality of public water bodies and, more generally, of the environment.

Market Assessments and Analysis

Market assessments include analysis of local markets (e.g. supply capacity and elasticity, access, quality of goods/services available), the enabling environment (e.g. access to markets and financial services, infrastructure, policy, regulatory frameworks, currency stability) and household factors (e.g. financial literacy, willingness to pay, household buying power dynamics, levels of debt, spending priorities). Market assessments can be in-depth analysis such as that detailed in the Emergency Market Mapping Analysis (EMMA) toolkit, or as simple as a few questions added to existing assessments, depending on context, time and resources available. Market tools such as Pre-Crisis Market Analysis (PCMA) can be used to understand critical markets, when they are functioning normally and to identify their capacity to adapt to future shock events, especially in cyclical or protracted crises. This understanding can be used to improve future responses or design preparedness programmes that strengthen markets and build resilience in anticipation of a crisis and to increase the speed of emergency response. Implementing market-based approaches is nothing new to the WASH sector. Programmes have, for example, often included cash for work as part of latrine reconstruction programmes, vouchers for desludging or hygiene kits, sanitation fairs to present latrine options and products, capacity building of artisans and traders, technical support to faecal sludge management service providers, and support for financial systems and processes (e.g. microfinance loans for latrine construction). Many of these approaches have worked well and at scale, also in settings where technical and quality standards must be met.

Mixture of solids and liquids, containing mostly excreta and water, in combination with sand, grit, metals, trash and/or various chemical compounds. A distinction can be made between faecal sludge and wastewater sludge. Faecal sludge comes from on-site sanitation technologies, i.e. it has not been transported through a sewer. It can be raw or partially digested, a slurry or semisolid, and results from the collection and storage/treatment of excreta or blackwater, with or without greywater. Wastewater sludge (also referred to as sewage sludge) originates from sewer-based wastewater collection and (semi-)centralised treatment processes. The sludge composition will determine the type of treatment that is required and the end-use possibilities.Describes technologies for on-site collection, storage, and sometimes (pre-) treatment of the products generated at the user interface. The treatment provided by these technologies is often a function of storage and is usually passive (i.e. requires no energy input), except a few emerging technologies where additives are needed. Thus, products that are ‘treated’ by these technologies often require subsequent treatment before use and/or disposal. In the technology overview graphic, this functional group is subdivided into the two subgroups: “Collection/Storage” and “(Pre-)Treatment”. This allows a further classification for each of the listed technologies with regard to their function: collection and storage, (pre-) treatment only or both.Refers to the methods through which products are returned to the environment, either as useful resources or reduced-risk materials. Some products can also be cycled back into a system (e.g. by using treated greywater for flushing).A functional group is a grouping of technologies that have similar functions. The compendium proposes five different functional groups from which technologies can be chosen to build a sanitation system: User interface (U), Collection and Storage/Treatment (S), Conveyance (C), (Semi-) Centralised Treatment (T), Use and/or Disposal (U). A sanitation system is a multi-step process in which sanitation products such as human excreta and wastewater are managed from the point of generation to the point of use or ultimate disposal. It is a context-specific series of technologies and services for the management of these sanitation products, i.e. for their collection, containment, transport, treatment, transformation, use or disposal. A sanitation system comprises functional groups of technologies that can be selected according to context. By selecting technologies from each applicable functional group, considering the incoming and outgoing products, and the suitability of the technologies in a particular context, a logical, modular sanitation system can be designed. A sanitation system also includes the management and operation and maintenance (O & M) required to ensure that the system functions safely and sustainably. The process of removing the accumulated sludge from a storage or treatment facility. The utilisation of products derived from a sanitation system. A sanitation system in which excreta and wastewater are collected and stored or treated on the plot where they are generated. The means of safely collecting and hygienically disposing of excreta and liquid wastes for the protection of public health and the preservation of the quality of public water bodies and, more generally, of the environment. Waste matter that is transported through the sewer. An open channel or closed pipe used to convey sewage. See C.3 and C.4 Used water from any combination of domestic, industrial, commercial or agricultural activities, surface runoff/stormwater, and any sewer inflow/infiltration.

1. Demand Side (Market Access)

The demand side can be strengthened by using markets through Cash Transfer Programming (CTP), supporting markets to create market access and market system change through social sanitation marketing including behavior change communication.

Using markets through CTP: To generate demand for sanitation products and services cash grants can be provided.The use of the grant can be influenced or controlled by the design of the cash transfer: grants can be provided to individuals, households or communities; at a regular interval over a period of time, in tranches or paid in lump sum. They can be conditional, if beneficiaries are required to fulfil conditions on either accessing the grant (cash for work) or utilising the grant (to build a latrine) or unconditional, if the grant is given to ensure beneficiaries are able to meet a range of basic needs. This specific example is widely referred to as multi-purpose cash-transfers, usually based on a minimum expenditure basket, which defines what a household needs – on a regular or seasonal basis and its average cost over time. Grants given in the form of vouchers can be restricted to specific commodities or services (e.g. hygiene items) or unrestricted value vouchers (up to a defined value for cash or commodities) redeemable with selected suppliers. CTP focuses exclusively on overcoming financial barriers faced by beneficiaries, without addressing other barriers to access.

Supporting markets to create market access: Market actors or other entities in the market system might need temporary support so that users can adequately access goods, services or incomes needed to meet needs in a crisis. A sanitation fair can promote innovation and create demand for goods and services. Vendors or service providers may need to be (pre-) qualified to meet the selection criteria (e.g. enabling vendors to receive digital payments) or standards (e.g. quality and format of accounting) of the CTP programme.

Figure 9:
Markets in Crisis (adapted from CRS 2017)

Market system change through sanitation marketing including behaviour change communication is an emerging field in humanitarian WASH assistance. Sanitation marketing aims to develop products/services that address user needs and experiences and adopt marketing tools and promotional campaigns to influence users to take up and use latrines. How behaviour is modified or adopted depends on the application of what is known as the marketing mix, including product, place, price, and promotion (4 Ps). Even though the final influence on each of the 4 Ps might be limited, a sanitation marketing intervention tries to steer the target population towards the intended outcomes. Sanitation marketing strategies also include behaviour change communication, which motivate adoption of a particular behaviour (e.g. use of latrines) or complementary behaviour (e.g. handwashing with soap) by individuals or households. When working with target groups who are not used to using toilets, the application of the Participatory Hygiene and Sanitation Transformation (PHAST) approach or the Community-Led Total Sanitation (CLTS) approach, both of which focus on changing community practices and in particular open defecation, can be considered as a response option.

Sanitation products can be materials that are generated directly by humans (e.g. urine, faeces and greywater from bathing, cooking and cleaning), that are required for the technologies to function (e.g. flushwater to flush excreta through sewers) or are generated as a function of storage or treatment (e.g. sludge). For the design of a robust sanitation system, it is necessary to identify all of the products that are flowing into (inputs) and out of (outputs) each of the sanitation technologies of the system. The products referenced within this text are described below. Solid waste is not included as a sanitation product as it should not enter the sanitation chain. It will be dealt with separately in the cross-cutting issue section (X.8).A sanitation system is a multi-step process in which sanitation products such as human excreta and wastewater are managed from the point of generation to the point of use or ultimate disposal. It is a context-specific series of technologies and services for the management of these sanitation products, i.e. for their collection, containment, transport, treatment, transformation, use or disposal. A sanitation system comprises functional groups of technologies that can be selected according to context. By selecting technologies from each applicable functional group, considering the incoming and outgoing products, and the suitability of the technologies in a particular context, a logical, modular sanitation system can be designed. A sanitation system also includes the management and operation and maintenance (O & M) required to ensure that the system functions safely and sustainably. Practice of defecating outside in the open environment. The means of safely collecting and hygienically disposing of excreta and liquid wastes for the protection of public health and the preservation of the quality of public water bodies and, more generally, of the environment. An open channel or closed pipe used to convey sewage. See C.3 and C.4 User interface used for urination and defecation. Used water from any combination of domestic, industrial, commercial or agricultural activities, surface runoff/stormwater, and any sewer inflow/infiltration.

2. Supply Side (Market Availability)

Using markets, supporting markets and developing markets can strengthen availability and capacity of the market system to deliver critical goods and services. Using markets starts with integration of existing local market structures to deliver immediate humanitarian assistance, which is usually based on in-kind  distribution and directly built sanitation infrastructure. Market awareness is crucial for market integration as it enables local or regional procurement of goods and services. A temporary direct support of suppliers or vendors might be needed to ensure sufficient supply. Supporting markets includes interventions that target market actors aiming to restore market systems after a shock event. This can be done through providing grants to market vendors to recover stock, creating access to information on technology options, associated costs and contact details of suppliers of sanitation related goods and services, providing fuel vouchers or subsidies or spare parts to transport businesses (e.g. for desludging truck operators), supporting market traders to increase warehousing capacity (e.g. for hygiene items) or water utilities to scale up existing wastewater treatment capacity (e.g. in host communities after refugee influx). Market development includes interventions that target market actors aiming to achieve long-term economic recovery. This can be done through business model development (e.g. supporting a community-based organisation to establish local manufacturing and marketing of soap or sanitary napkins), value chain development (e.g. examining if there is a market for compost products), supply chain development (e.g. creating access to packaged toilet products including transportation services), product design (e.g. designing affordable latrine models for different wealth groups) and improved access to financial services (e.g. offering micro-loans for latrine construction).

Decomposed organic matter that results from a controlled aerobic degradation process. In this biological process, microorganisms (mainly bacteria and fungi) decompose the biodegradable waste components and produce an earth-like, odourless, brown/black material. Compost has excellent soil-conditioning properties and a variable nutrient content. Because of leaching and volatilisation, some of the nutrients may be lost, but the material remains rich in nutrients and organic matter. Generally, excreta or sludge should be composted long enough (2 to 4 months) under thermophilic conditions (55 to 60 °C) in order to be sanitised sufficiently for safe agricultural use.Consists of urine and faeces that are not mixed with any flushwater. Excreta is relatively small in volume, but concentrated in both nutrients and pathogens. Depending on the characteristics of the faeces and the urine content, it can have a soft or runny consistency.Refers to (semi-solid) excrement that is not mixed with urine or water. Depending on diet, each person produces approximately 50–150 L per year of faecal matter of which about 80 % is water and the remaining solid fraction is mostly composed of organic material. Of the total essential plant nutrients excreted by the human body, faeces contain around 39 % of the phosphorus (P), 26 % of the potassium (K) and 12 % of the nitrogen (N). Faeces also contain the vast majority of the pathogens excreted by the body, as well as energy and carbon rich, fibrous material.Mixture of solids and liquids, containing mostly excreta and water, in combination with sand, grit, metals, trash and/or various chemical compounds. A distinction can be made between faecal sludge and wastewater sludge. Faecal sludge comes from on-site sanitation technologies, i.e. it has not been transported through a sewer. It can be raw or partially digested, a slurry or semisolid, and results from the collection and storage/treatment of excreta or blackwater, with or without greywater. Wastewater sludge (also referred to as sewage sludge) originates from sewer-based wastewater collection and (semi-)centralised treatment processes. The sludge composition will determine the type of treatment that is required and the end-use possibilities.The liquid produced by the body to rid itself of nitrogen in the form of urea and other waste products. In this context, the urine product refers to pure urine that is not mixed with faeces or water. Depending on diet, human urine collected from one person during one year (approx. 300 to 550 L) contains 2 to 4 kg of nitrogen. The urine of healthy individuals is sterile when it leaves the body but is often immediately contaminated by coming into contact with faeces.Describes technologies for on-site collection, storage, and sometimes (pre-) treatment of the products generated at the user interface. The treatment provided by these technologies is often a function of storage and is usually passive (i.e. requires no energy input), except a few emerging technologies where additives are needed. Thus, products that are ‘treated’ by these technologies often require subsequent treatment before use and/or disposal. In the technology overview graphic, this functional group is subdivided into the two subgroups: “Collection/Storage” and “(Pre-)Treatment”. This allows a further classification for each of the listed technologies with regard to their function: collection and storage, (pre-) treatment only or both.Refers to the methods through which products are returned to the environment, either as useful resources or reduced-risk materials. Some products can also be cycled back into a system (e.g. by using treated greywater for flushing).A functional group is a grouping of technologies that have similar functions. The compendium proposes five different functional groups from which technologies can be chosen to build a sanitation system: User interface (U), Collection and Storage/Treatment (S), Conveyance (C), (Semi-) Centralised Treatment (T), Use and/or Disposal (U). A sanitation system is a multi-step process in which sanitation products such as human excreta and wastewater are managed from the point of generation to the point of use or ultimate disposal. It is a context-specific series of technologies and services for the management of these sanitation products, i.e. for their collection, containment, transport, treatment, transformation, use or disposal. A sanitation system comprises functional groups of technologies that can be selected according to context. By selecting technologies from each applicable functional group, considering the incoming and outgoing products, and the suitability of the technologies in a particular context, a logical, modular sanitation system can be designed. A sanitation system also includes the management and operation and maintenance (O & M) required to ensure that the system functions safely and sustainably. Simple, single cell organisms that are found everywhere on earth. They are essential for maintaining life and performing essential “services”, such as composting, aerobic degradation of waste, and digesting food in our intestines. Some types, however, can be pathogenic and cause mild to severe illnesses. Bacteria obtain nutrients from their environment by excreting enzymes that dissolve complex molecules into more simple ones which can then pass through the cell membrane. The process by which biodegradable components are biologically decomposed by microorganisms (mainly bacteria and fungi) under controlled aerobic conditions. The process of removing the accumulated sludge from a storage or treatment facility. The utilisation of products derived from a sanitation system. Any cellular or non-cellular microbiological entity capable of replication or of transferring genetic material (e.g. bacteria, viruses, protozoa, algae or fungi). Any substance that is used for growth. Nitrogen (N), phosphorus (P) and potassium (K) are the main nutrients contained in agricultural fertilisers. N and P are also primarily responsible for the eutrophication of water bodies. A sanitation system in which excreta and wastewater are collected and stored or treated on the plot where they are generated. An organism or other agent that causes disease.A diverse group of unicellular eukaryotic organisms, including amoeba, ciliates, and flagellates. Some can be pathogenic and cause mild to severe illnesses. The means of safely collecting and hygienically disposing of excreta and liquid wastes for the protection of public health and the preservation of the quality of public water bodies and, more generally, of the environment. Waste matter that is transported through the sewer. An open channel or closed pipe used to convey sewage. See C.3 and C.4 User interface used for urination and defecation. The organic molecule (NH2)2CO that is excreted in urine and that contains the nutrient nitrogen. Over time, urea breaks down into carbon dioxide and ammonium, which is readily used by organisms in soil. It can also be used for on-site faecal sludge treatment. See. S.18An infectious agent consisting of a nucleic acid (DNA or RNA) and a protein coat. Viruses can only replicate in the cells of a living host. Some pathogenic viruses are known to be waterborne (e.g., the rotavirus that can cause diarrheal disease). Used water from any combination of domestic, industrial, commercial or agricultural activities, surface runoff/stormwater, and any sewer inflow/infiltration.

3. Reform of the Market Regulatory Framework

In order to help markets recover, humanitarian interventions can also include a range of activities aiming to reform the regulatory frameworks of relevant markets (national rules, norms, standards). This could be through advocacy for improved regulations (e.g. the approval of permanent infrastructure for wastewater treatment in a refugee camp), a direct engagement in policy-making processes or by building capacities of involved actors (e.g. governments, regulators, utilities etc.).

Used water from any combination of domestic, industrial, commercial or agricultural activities, surface runoff/stormwater, and any sewer inflow/infiltration.

4. Strengthening of Market Services and Infrastructure

To allow functioning of critical market systems, the broader market services and infrastructure might need to be supported, restored or developed. This could include loan guarantees for microfinance institutions, the provision of digital cash delivery technologies, and support to improved market information as well as the rehabilitation of roads, transportation and telecommunication networks.

Opportunities of Market-based Programming

MBP is increasingly heralded as having a critical place in the future of humanitarian programming. The proposed benefits of working through existing market systems include improvements in efficiency, effectiveness and scalability of programming and increased beneficiary dignity and choice (e.g. cash grants for latrine construction enable beneficiaries to choose their own design/style). Where feasible, MBP might promote a faster economic recovery and resilience-building due to economic multiplier effects, a better transition to development programming as well as higher levels of acceptance and sustainability (e.g. construction of a latrine increases the sense of ownership and thus the likelihood that operation and maintenance are performed properly by beneficiaries).

Risks and Challenges of Market-based Programming

Sanitation infrastructure is technically complex, subject to regulation, expensive (high capital expenditure) and dangerous if implemented poorly. Working through markets partly shifts the handling of quality and  safety risks from humanitarian implementers to local market actors and beneficiaries (e.g. less control over construction quality in a CTP latrine construction programme as beneficiaries use less skilled labour and fewer salvaged materials). Providing beneficiary choice does not negate the responsibility of human itarian implementers to ensure access to sanitation facilities and services that are safely managed, inclusive and meet minimum humanitarian standards. Design of market-based programmes should therefore include risk mitigation strategies (e.g. use of conditionality or restriction of cash transfers) as well as enabling activities such as technical support, capacity building and regular monitoring. Where sanitation programmes have identified risk factors related to knowledge, attitude and practice, these need to be addressed with appropriate complementary activities, like community engagement and sanitation marketing that seek to understand socio-cultural issues, build accountability and support healthy behaviour.

The means of safely collecting and hygienically disposing of excreta and liquid wastes for the protection of public health and the preservation of the quality of public water bodies and, more generally, of the environment.
arrow_upward