Providing alternative sources of income
Based on what was learned in initial consultations/social assessments, consider how the project design can be adjusted in order to limit negative impact on children who are already vulnerable, or to prevent new children from becoming OVC (for instance, drive children into more hazardous forms of child labor). Probably, the most important measure consists of identifying and supporting new ways of earning a living for those who are likely to lose their livelihood as a result of the project. Below are three options, going for the easiest to implement in the context of the project, to the most difficult
- The most straightforward measure is to give priority access to new jobs created by the project to OVC caretakers or older OVC, but jobs at the appropriate level (i.e., low) are probably going to be too few. Training could be provided to make these jobs more accessible to the target groups. For example, OVC caretakers and older OVC could be trained in making and marketing improved stoves.
- Some projects may create new opportunities for employment in activities that are not directly financed by the project itself but feed into it. For instance, a project to replace biomass fuel with more modern sources of energy would put women and children fuel wood carriers out of work, but could provide employment opportunities in tree nurseries to encourage reforestation. The standing World Bank operational model for traditional energy interventions is based on participatory community-based natural resource management systems. An “assets-based” development approach is recommended, where economic diversification and introduction of new and added value jobs are created at the local level. All ongoing World Bank energy operations that include biomass energy components follow this approach (e.g., Senegal PROGEDE, Burkina Faso AIJ/RPTES, Ethiopia EAP, Chad HEP, Madagascar EP3). Projects that will attract large numbers of workers from the outside, such as power plants, will probably offer opportunities to open small restaurants or canteens in the vicinity of the plant. Measures can include:
- Studies to identify business opportunities and market niches, and then targeted dissemination activities;
- Training in specific skills and/or in business-related skills, including paid on-the-job training with existing businesses
- Access to grants or micro-credit (micro-credit is not a simple matter and sector guidelines for micro-credit activities should be followed. To learn more on this, see CGAP and their Key Principles of Micro Finance.)
- Regular follow-up in the initial period for those setting up their own new micro-business.
- Note: All the suggested activities could give negative effects for OVC. To learn more about the risks, see the “Pitfalls” section of this Toolkit.
When no (or not enough) employment opportunities can be identified in ancillary activities, the measures mentioned above could still be taken, but not limited to ancillary activities.
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