MIFIRA Framework
Lecture 2
Response analysis and MIFIRA
Chris Barrett and Erin Lentz
February 2012
Lecture Overview:
Response analysis and food insecurity
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Changing political economy of aid distributions
What is response analysis / when is it needed?
What are the benefits and costs of different transfers?
Key defintions
MIFIRA is one such approach to response analysis: Two framing
questions and associated subquestions.
• Scales of analysis
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Changing political economy of aid
distributions
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Shifting from donor driven to respondent driven
Increasing donor flexibility
Growing interest in local and regional procurement
Creates choice when responding to food insecurity:
– Cash and vouchers;
– Food procured locally and regionally (LRP);
– Transoceanic food aid.
• The increasing availability of choices means that agencies need
better assistance in understanding response analysis.
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How do Managers / Programmers Make
Decisions: Situating Response Analysis
within the Programming Cycle*
Needs
Assessment
Response
Analysis
Response
Planning
Program
Implementation
Monitoring
and
Evaluation
*Resource appropriateness requires ongoing market analyses
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Objective of Response Analysis
Response Analysis links
identified need with
appropriate response
– Evidence-based to support
decision-makers
– Analyze the likely impact of
alternative responses
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The Programming Cycle:
Information Gathering, Planning and Analysis, and
Implementation
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Source: Barrett et al. 2009
Role of programming cycle
Prior to commencing MIFIRA, undertake a needs
assessment. Need to know (provisional) answers
to:
1) The subpopulation of interest: who is food
insecure? How many people fall into that
subpopulation and where are they?
2) What does this subpopulation most need and
how much of it do they need?
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Why the Form of Transfer Matters
• Getting the form of transfer right
helps livelihoods…
– Households sell food aid - often at a
deep discount - to purchase what they
need
– Yet, when markets are not
functioning, cash is of limited value.
• … and minimizes harm to markets
– Impact on markets depends on:
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Total amount distributed
Meets needs of households - demand
Seasonality
Type of transfer
Functioning of local market
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Comparing Cash and in-Kind Food Transfers
Food transfers generally recommended
when:
Cash transfers generally recommended
when:
1. Food intake is prioritized for nutritional
purposes (including targeted feeding and
micronutrient objectives)
1. Overall humanitarian need, as well as
choice and flexibility are prioritized
2. Markets do not function well
3. Markets are nearby, or during the peak,
post-harvest season
3. Markets are distant, or during the lean
season
2. Markets function well
4. Inflationary risks are a significant concern
4. Production disincentives due to food aid
delivery are a significant concern
5. Security conditions permit (i.e., food
commodities are highly visible)
5. Security conditions permit (i.e., cash is less
visible but offers greater incentive for theft)
6. Cash transfer systems do not exist
6. Cash transfer systems exist
7. Cost savings is sought through individual /
household targeting
7. Cost saving is sought through lower
logistical and management overhead
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Source: Barrett et al. 2009
Comparing Local or Regional Purchases
and Transoceanic Sourced Food Aid
LRP procured food generally
recommended when:
• Time is of the essence. LRP tends to
arrive faster than transoceanic food
aid.
• May be able to time deliveries to
coincide with the lean season,
minimizing production disincentives.
• Potential for cost savings, especially
for bulkier products, such as grains
and pulses
Transoceanic food aid generally
recommended when:
• Concern that procuring food will
cause inflationary pressure in source
markets
• Concern that traders will default on
tenders or will drive up prices in
anticipation of agency purchases
• Concern that quality and safety
standards cannot be met with LRP
food
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Source: Barrett et al. 2009
Food Insecurity:
Identifying responses
• How to choose the most
appropriate transfer?
– Tradeoffs across each transfer
– Many of the costs and benefits of
the various transfer options are
contingent upon markets.
– Understanding markets’ roles in
addressing food security can lead to
designing better social transfer
schemes in programs
– Important non-market factors
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What is a “market”?
• Markets are composed of:
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Buyers
Sellers
Institutions and infrastructure
Others behind the scenes: importers, processors, storage owners,
wholesalers, credit suppliers, government officials and policies
• Relative functioning of a market depends on:
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Number, size, independence of buyers and sellers
Formation of prices
Availability of information on prices and costs
Ease of entry and exit
• Relative functioning of a market system depends on:
– Reliability of contract enforcement
– Integration across markets
– Institutional framework (infrastructure, government policies, etc.)
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Market Vocabulary
Source: FEWs (2008) Market Analysis and Assessment. Lesson 1, p. 12.
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Commodity Channels Vocabulary
Source: FEWs (2008) Market Analysis and Assessment. Lesson 1, p. 5.
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Q1. Are local markets functioning well?
• 1a. Are food insecure households well connected to local
markets?
• 1b. How will local demand respond to transfers?
• 1c. How much additional food can traders supply at or near
current costs?
• 1d. Do local food traders behave competitively?
• 1e. Do food insecure households have a preference over the
form/mix of aid they receive?
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First MIFIRA question, “Are local markets functioning
well?”
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Source: Barrett et al. 2009.
Tracing out Different Supply Patterns
Source: Barrett et al. 2009.
Q2. Is There Sufficient Food Available
Nearby To Fill The Gap?
• 2a. Where are Viable Prospective Source
Markets?
• 2b. Will Agency Purchases Drive up Food
Prices Excessively in Source Markets?
• 2c. Will Local or Regional Purchases Affect
Producer Prices Differently than Transoceanic
Shipments?
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Second MIFIRA question,“Is there sufficient food available
nearby to fill the gap?
2a. Where are viable prospective source options?
Identify prospective source markets
2b. Will agency purchases drive up food prices
excessively in source markets?
Yes
No
2c. Will local or regional purchases have larger disincentive
affects on producer prices than transoceanic shipments?
Yes
Consider transoceanic shipments
Source: Barrett et al. 2009.
No
Consider local or regional purchases
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Scales of Analysis and Complementary Agency
Analysis Capacities
Macro-Level Market Data
Data collected
by:
- national
governments
- regional
organizations
- donors
1c. Can traders increase supply?
1d. Are markets competitive?
2a.Where are viable source markets?
2b. Will local procurement increase prices?
2c. Impact of LRP vs.
transoceanic food aid?
Meso-Level Market Data
1b. Demand response?
1c. Can traders increase supply?
1d. Are markets competitive?
2a. Where are viable source markets?
2b. Will procuring increase prices?
Data collected
by:
- local governments
- nongovernmental
organizations
Source: Barrett et al. 2009.
Micro-Level Household Data
1a. Household access?
1e. Household preferences?
Needs assessment
Local context
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Resource Transfer Choices or
Combinations Will Make a Difference
• Cash transfers and vouchers to support
purchasing power and local markets, quickly
• Local procurement to energize local markets
and use local food products
• Cash and local purchases to strengthen local
food chains and support smallholders
• Food aid to support people during combined
availability and market failures
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