“Employment-Intensive Investment for Sustainable Development”

1. Assessing the developmental effects of EII projects and programmes: What should we measure and how “Employment-Intensive Investment for Sustainable Development” Cape Town, South Africa, 9 -13 July 2012 A155532

2. Outline • Different types of EII interventions • Different types of effects • Quantitative/qualitative aspects • Relevant indicators • Assessment methods • Examples • Conclusions

3. Different types of EII interventions • Target group (poor populations; the poorest; youth; other vulnerable groups) • Scale: village schemes to national programmes • Scope: • Sectoral: intervene in one single sector, e.g. road, irrigation, or waste management • Multi-sectoral: e.g. slum upgrading schemes which intervene on shelters, paths, drainage system, water supply, and waste collection • Institutional setting • Implementers (contractors; community groups) • Objectives and activities (LFA - logical framework approach)

4. Expected results • Creation of physical assets • Generation of jobs and income • Acquisition of new skills and capabilities • Improved access to basic goods and services • Economic multipliers – contribution to local/national economic development • Adaptation to climate change • Poverty impact (multidimensional, see RAPI) • Community organisation/participation • Attitudes, cultural change • Social inclusion

5. Labour aspects • Application and respect of labour standards • New forms of representation • Improvement in labour relations • Increase in wages • Gender-related

6. What should/can we measure? • Quantitative and qualitative analysis

7. Effects • Direct (e.g. number of jobscreatedbytheprojectitself) • Indirect (jobs created at a supplier's factory) • Induced (impact of spending by the people employed in the project) • Immediate - directlylinked to projectimplementation • Long-term: occurafterprojectcompletion • Positive/negative (neutral?)

8. Skills/capability development • Persons exposed to training • Enhanced knowledge • Attitudinal changes • Improved capabilities • Use of new skills • Individual/corporate performance

10. Needed • A well structured monitoring and evaluation scheme • M&E – key aspects: • Indicators • Data collection modalities (questionnaire, interviews, ..) • Data elaboration (data-base, elaboration techniques,..) • Assessment • Reporting • Practicalities: • Human and financial resources for M&E • Coordination • Ex-post evaluation

11. Assessment methods • Static comparisons (LB/EB) based on administrative records • Before-after comparisons (baseline and successive rounds of surveys) • Control group approaches (incl. RAPI) • Input/output methods (SAM-based) • Micro-macro models: linking projects with the larger economy (forward and backward linkages) • Case study methods (e.g. for assessment of institutional change or the effect of a project on the degree of organisation of workers or employers) • Methods can be combined

12. Rural road project - Cambodia Immediate Medium-/Long-Term • employment during construction • employment during maintenance Direct Effects (related to construction and transport) • additional employment created by road shops, repair shops, restaurants • additional employment created by local suppliers raw materials, tools and light equipment • additional employment created by local transport services industry • additional employment as a result of improved access to employment clusters employment opportunities Indirect Effects (non-transport) • additional employment as a result of increased cash crop production/crop diversification • additional employment as a result of increased trading including tourism

13. IMPACT STUDY - Cambodia • Base-line Survey (before construction/maintenance) • Traffic counts and origin/destination survey • Market price survey • Household survey (access, transport and income) • Transport operators • Village priority survey • Employment and Income Survey (during construction/maintenance) • Keep track of days of employment created • Income impact survey • First Follow-up Survey (immediately after construction/maintenance) • Repeat surveys • Second Follow-up Survey (2 years after construction/maintenance) • Repeat surveys

14. Rides and frequency Respondents report now to have doubledtheir rides as compared to before the road was built. This counts for half of all motorcycle drivers, most of the motor trailers, ox-carts, bicycles and pedestrians. Reduced travel time All road users, pedestrians and vehicle drivers, reduce their travel time by at least one third to half the travel time after the road was rehabilitated. Fares Transport fares clearly drop after the road has been rehabilitated. For motorcycle and trailer transport, fares drop by one fourth to one third. For “etans” (light truck) and pickups, fares drop by one third. Load Motorcycles now carry double the number of passengers than before the road was built. Their load carriage has at least doubled, and is in some cases increased by 500 per cent. Bicycles now often carry an extra passenger, although not meant for public transport. Bicycles now carry double or triple the load before the road was built. Ox-cart, etan and pick-up drivers now almost double their load

15. Number of vendors and stands Markets and shops expand at many places within the roads influence zone. Some market places have grown out of a few plots before the road was built up to 200 stands now, within two years. Along the rehabilitated road, small shops have doubled or are five to six times the number before the road was built. Although other factors and interventions may also influence economic growth, shopkeepers see a clear relation between the rehabilitated roads, more customers and expansion of markets. Prices of goods In general prices of basic goods drop. More vendors increase competition. Vendors report that the rehabilitated roads contribute to better and larger supply of goods, which cuts costs and forces prices down. >>>>Contribution to local development

16. Case Study – Lao PDRThree trends analysed to measure improvement in terms of mobility and access • Ownership of some type of motorised transport • Annual household income in various activities • Travel times to social and economic goods, services and facilities

17. Motorbike ownership increased as much as 400% • Household income rose sharply • Agriculture = 635% • Livestock = 98% • Travel times decreased. Previous average household travel time of 7 hours to main town was now taking an average of 2 hours • People have choice of various transport options from private vehicles to bus services and hired truck

18. Roads were constructed as part of a Livelihoods improvement project which addressed crop substitution to promote alternative high yielding cash crops • Changes to agricultural techniques were introduced • Project promoted non-agricultural production -weaving and textiles; introduced loans and credit schemes. • People invested in motorised transport, especially motorbikes and hand tractors

19. The construction of the two roads were integral to the livelihoods project • Provided short-term labour during construction • Roads and transport choice enabled people to access wider markets more frequently. • The roads opened access to and from the villages. People benefited both economically and socially • Increased movement out of the village, the roads bought in traders for textile and weaving products who also invested in these household industries

20. EII impact assessment - Conclusions Impact • There is sufficient evidence of developmental effects of employment intensive investment projects, but the sustainability of project results remains of concern. • It is necessary to enhance analysis in order to dispose of additional and more accurate information • More effectively organise the available knowledge for advocacy, planning and policy making • A coordinated effort needed