UNDP Digital Guides - Livelihoods and Economic Recovery

Introduction

Digital technologies provide opportunities to rebuild and strengthen livelihoods after crises and accelerate economic recovery. They can help people access market information and facilitate the exchange of goods and services when traditional market functions are disrupted by shocks – as was widely seen during the COVID pandemic. As the future of work becomes more digitalized, digital platforms allow people to build digital skills and participate in the digital economy, even when their lives are upended. Moreover. the digital economy provides an opportunity for flexible work that allows people with time and mobility constraints – including people on the move and women with care responsibilities– to continue participating in economic activities.

Digital tools are also essential for assessing the impact of a crisis on livelihoods and local economies and for tracking these impacts over time. By leveraging digital technologies and data in recovery planning, national and local governments have an opportunity to transform economic structures to become more inclusive, green and future proof.

In short, digital technologies are critical for people to build assets that allow them to pursue sustainable livelihoods. But we must be mindful of the digital divide when designing digital solutions. Not doing so holds the risk of exacerbating existing inequalities, leaving those without access to digital infrastructure, skills or an enabling regulatory environment, behind.

UNDP’s approach to digital livelihoods and economic recovery (LER) is rooted within its overall strategic plan, Crisis Offer and Digital Strategy. Digitalization is integrated in UNDP’s approach to LER as a key enabler for building sustainable livelihoods:

Digitalization is an important driver of all UNDP’s six Signature Solutions – including Signature Solution 3 on Resilience, where Livelihoods and Economic Recovery falls. Digital transformations provide the basis for effective development of livelihoods, economic, social and financial inclusion, and economic recovery by supporting access to information and creating greater possibilities for institutional coordination and market inclusion. It also provides a basis for human emancipation, agency, and access through universal connectivity; enabling more productive livelihoods through education and broader participation in the digital economy.

Key messages

Today, digitalization forms a critical component of a country’s governance and how it shapes the market in support of prosperity and livelihoods. It is a fundamental part of UNDP’s whole-of-society approach. In the context of LER, we highlight the following examples of how digitalization can be applied:

Digital tools offer the capability to conduct swift assessments of both tangible damages and the intangible socio-economic impacts of a situation.
These tools are invaluable for organisations and governments to prioritise assistance and allocate resources to where they are most needed.
Big data analytics allows UNDP to anticipate future risks and thereby devise proactive measures to mitigate or respond effectively.

Digital platforms allow for streamlined information flows and ensure that everyone is informed.
Digital planning and coordination tools allow communities and organisations to synergise their recovery efforts and exchange data, leading to quicker and more effective and efficient results.

Digital technology enables even remote communities to access global markets, ensures information transparency, and fosters conditions for decent work and fair pay.
Digital tools can improve access to financial resources, thereby promoting financial inclusivity and opening up a world of entrepreneurial possibilities.

Digital tools allow people on the move to access critical information to secure their safety (e.g., safe routes, security information, registration points) and access basic services.
Digital platforms can provide resources, education and tools to help people on the move, (whether they are migrants, refugees, or internally displaced persons) to better connect with their host communities and integrate into their new environment.
Through digital platforms there is an opportunity for mutual cultural exchange contributing to social cohesion. However, these platforms can also pose risks, such as by amplifying discrimination and the spreading of misinformation.

Digital Public Infrastructure, encompassing elements such as payment gateways, data exchange platforms and digital identity solutions, forms the backbone of many digital interventions.
These infrastructures ensure that digital tools and services are accessible, reliable, and secure, including in a crisis setting.
By investing in and promoting these digital commons, we can ensure a robust framework that supports a plethora of interventions aimed at societal betterment and progress.

With the right policies, digital technologies can help people to overcome challenges to building their livelihoods, support minority and gender empowerment and protect human rights whilst reinforcing the green transition. Bridging the digital divide can lay the foundation for inclusive and transformative economic recovery. Therefore, digital transformations must be considered as a part of a systemic, comprehensive approach for Livelihoods and Economic Recovery.

Opportunities and risks

This segment outlines the society-level opportunities and risks associated with digital transformation in the context of Livelihoods and Economic Recovery. These should be used as a basis for forming programme-level theories of change and providing inspiration to programme teams on how digital technologies can support or undermine LER programme activities.

Digital technologies can enable and accelerate the implementation of recovery solutions in crisis settings (e.g., disasters, armed conflict, displacement and migration, epidemics or pandemics).

New economic opportunities

Improve access to markets and engage in new business models for vulnerable populations.
Develop a healthier small business and startup ecosystem through greater access to finance and financial services.
Support economic, financial and social inclusion processes for people on the move, addressing potential barriers they may face¹.
Support entrepreneurship and employability via digital platforms.
Facilitate access to better market data and strengthen linkages between the actors involved throughout a product’s lifecycle.

Accelerate women’s economic empowerment and youth engagement

Digital transformations can help identify connectivity needs, usage levels and the barriers faced by the most vulnerable, to understand how best to intervene.
Digital technologies enable safer participation and inclusion of women and girls in the workforce.
Enable the participation of youth, persons with disabilities, chronically ill people and their caretakers to access new skills and engage in the workforce and in entrepreneurship.
Ensure that decent digital work opportunities are accessible given an adequate level of digital skills training. Invest in building digital literacy among young people in the community so they can act as agents of change.

Crisis preparation and recovery planning

Better preparation for crises through big data-based risk-mapping and risk-informed programme design.
Rapid understanding of impacts of crises using digital tools and data-based and participatory planning for recovery.
Better engagement of the private sector and other partners in crisis prevention and response mechanisms.

Communication

Communication technologies enable better coordination and support, leading to faster responses to crises and more lives saved. They can also facilitate real-time peer-to-peer communication to mobilize responses at the community-level.

Capacity building

Provide online trainings in remote areas, linked to available livelihood opportunities and potential future opportunities in “green” (environmental) and “blue” (maritime) economies.
Build digital skills to enhance access and participation in the digital economy.
Encourage digitalization of small businesses to enable them to better manage their business and continue operating during crisis.

Programming suggestions

Livelihoods and Economic Recovery encompasses a broad array of programmatic approaches, project decisions and capacity strengthening goals. The below 3 digital programming areas form the cornerstone of a whole-of-society approach to Livelihoods and Economic Recovery, based on UNDP’s digital transformation framework. In this guide, we have provided greater detail here. However, this does not discount the relevance or importance of other programming areas with respect to the delivery of effective digital interventions for Livelihoods and Economic Recovery. Furthermore, the chosen approaches may vary based on the country context and, therefore, we recommend that you explore the Digital Compass to learn about the digital maturity level in your country.

Based on past experiences, and minding the specific contexts and viability, we suggest following the below general points when incorporating digital technologies into LER programming:

Ensure that any digital solutions created are created with the user in-mind. This means ensuring that digital design is created based on where users are now in terms of their digital literacy and access to digital infrastructure rather than where it is assumed they should be. (See also UNDP’s Digital Standards)
Engage with users throughout the design and implementation of digital technology solutions to ensure an adequate user experience and that the digital product will be appropriately adopted by the intended users. (See also UNDP’s Digital Standards)
Since digital literacy and connectivity/infrastructure are enablers, ensure that the necessary conditions are met, and if not, identify mechanisms to address the gaps as part of the LER programming.
Incorporate innovative solutions from different stakeholders and engage the private sector as much as possible to address gaps.

Leadership and strategy

UNDP is often called upon to support governments to assess the impacts of a crisis on livelihoods and to support economic recovery planning. Digital technology can be a key enabler in conducting these assessments, sharing findings with stakeholders and coordinating a plan to not only rebuild livelihoods, but leverage the crisis to support transformative recovery. The following are ideas of how digital transformations can be incorporated to support leadership and coordination for government partners related to LER:

Understand impacts of crisis on livelihoods
Support governments to assess the impacts of a crisis on livelihoods through socio-economic impact assessments: UNDP has developed a tool called the Digital Socio-Economic Impact Assessment (SEIA) to provide governments with comprehensive and timely information to effectively respond to the needs of affected populations and enterprises in the immediate, medium and long-term. The Digital SEIA includes a specific module to assess the impact of crisis on micro, small and medium (MSME) enterprises.Findings can be visualized and updated over time, provided multiple waves o fdata collection are done.
Assess damage to community infrastructure and plan for rehabilitation
Support governments to assess the impacts of a crisis on community infrastructure and plan for their restoration: UNDP has developed the Household and Building Damage Assessment (HBDA) Toolkit to support authorities to assess damage on residential and non-residential infrastructure. The tool provides timely data to help authorities prioritize how to allocate resources for infrastructure rehabilitation. The data also informs the design of LER programming focused on debris removal and community infrastructure rehabilitation.
Develop and coordinate recovery strategies
Support public and private actors to align recovery plans and processes to the SDGs, and to monitor progress through disaggregated data collection and analysis.

Fair market competition

At the heart of restoring livelihoods and economic recovery lie markets. The goal of many LER programmes is to build resilient market systems that can continue to function when crises strike. As we saw during the COVID-19 pandemic, digital technologies are key to reactivating disrupted markets, so that communities and other market actors can resume income-generating activities and access critical goods and services. Digital solutions can help people find market information,access markets beyond their locality, assist with transactions (including digital payments), and better match supply and demand. UNDP is well-placed to work with governments and the private sector to use digital services as an enabler to build fairer, more inclusive and greener markets when crises strike.Furthermore, UNDP can work with governments to improve the ecosystem by, for example, digitalizing business registration which will reduce market informality. The following are ideas for how digital transformations can be incorporated for resilient market systems development:

Assess market disruptions and opportunities for systemic change
Conduct feasibility and market assessments to identify gaps and disruptions caused by a crisis on market systems - including the core exchange of supply and demand,but also on supporting functions (e.g., infrastructure) and rules (e.g.,restrictions on movement or business registration). Digital tools can be helpful in collecting data and mapping the findings to identify catalytic interventions that can restart the flow of goods and services and identify partnerships - including key actors in the private sector - that may be needed to reactivate markets and improve their functioning in the long run.
Facilitate access to market information
Digital tools can help people understand where to find key goods and services when crises strike. They can relay information in real-time as stocks and prices change. A good example of this is digital platforms providing information on stocks of face masks and testing kits during a pandemic, when there was high demand but less visibility on supply. During the COVID pandemic once it became clear that supply was outstripping demand and some entrepreneurs and businesses wanted to start producing masks and other personal protective equipment, digital platforms listing suppliers of key inputs (including technical expertise) helped them procure the inputs they needed to start production. These platforms also listed potential (bulk) buyers by product, helping entrepreneurs to assess demand before starting production. Digital platforms can also be helpful in sharing information on quality standards and regulations that need to be adhered to when producing certain goods and services.
Enable access to markets
E-commerce can help entrepreneurs and enterprises continue serving existing customers when crises strike, as well as broaden their reach to new customers. Good examples of this include UNDP Barbados' work with fisherfolk to use e-Commerce to sell local, traceable and sustainable fish online, UNDP Uganda's partnership with Jumia to bring market vendors selling fresh produce online, and UNDP Bangladesh's support to a government-run emergency e-commerce service providing daily essentials through eKShop: a one-stop marketplace where local e-commerce sites, delivery providers and digital transaction companies are connected online.
Strengthen value chains
Digital tools can be used to map stakeholders across the value chain (the chain of actors involved during the lifecycle of a product) and identify linkages that can be strengthened. One effective approach to building more inclusive and resilient value chains is linking smaller suppliers with “anchor companies”.UNDP has developed the SDG Value Chains methodology to advance this approach.The methodology includes a module to support the digital transformation of small businesses, so they can better manage operations and relationships with consumers and anchor companies.
Promote financial inclusion
Digital payments can be a key entry point to financial inclusion. Whether by using digital technologies for payments made in LER programming or by working with the government to provide relief to enterprises affected by crises, digital system scan facilitate faster and more transparent transfer of funds. Working with the private sector to develop digital savings and insurance products – tailored to those traditionally excluded from the market – can help mitigate the impact of shocks.When pursuing these initiatives, it is critical to consider digital skills levels and cultural norms as these may hinder access for certain groups (e.g.,women facing barriers to opening a bank account) and build in interventions to address them.
Facilitate reforms
Work with the private sector to identify reforms that may be needed to enable digital solutions to support the development of more inclusive and greener economies. For example, digitizing business registration can have a significant impact on reducing informality in the economy.

Business

Crises disrupt people’s livelihoods, forcing them to leave their traditional income-generating activities and find alternatives. Often the most desirable alternative is to start a new business, especially when people face barriers to participating in the labour market. Digital services can help entrepreneurs access the resources they need to start a business – whether it be information on support available from government or private sector actors,training geared to equip them with the skills to launch and grow a business, access to networks of industry actors, mentors and peers who can help them secure the first (bulk) order, or financing to kick-start business activities. Supporting private sector development in this way can help meet immediate needs for critical goods and services, as well as be a driver of recovery. UNDP uses digital technologies to work with governments and the private sector to create a conducive business environment for people affected by crisis in the following ways:

Map the entrepreneurial ecosystem
Digital technologies can help to map different actors in the entrepreneurial ecosystem - ranging from government agencies to private sector companies, academia, business development service providers and financiers - and strengthen connections with entrepreneurs. It can also highlight gaps in the ecosystem that LER programming can address. For example, UNDP Iraq developed a digital platform visually mapping the various start-up initiatives in Mosul. By mapping the initiatives, the Iraq team saw that many initiatives were being done in silos and that UNDP could leverage its role as integrator to strengthen linkages and support the birth of new start-ups which would diversify Iraq's economy.
Build digital skills of entrepreneurs and encourage digital entrepreneurship
UNDP has developed the Digital In Motion methodology to support entrepreneurs and micro, small and medium (MSME) enterprises to adopt digital tools to adapt their business during crises. UNDP Peru developed a digital training for Venezuelan migrant entrepreneurs rebuilding their lives in Lima, with a key focus on building digital skills and using digital services to bring together fellow entrepreneurs - both Peruvian and Venezuelan - and strengthen their connection to the entrepreneurial ecosystem in Lima. They also delivered digital financial inclusion training through the WhatsApp platform. The data from the platform allowed them to monitor learning progress in real-time, encourage continuous learning, test learners on the knowledge they gained, and easily collect feedback on how the training could be improved.
Align business models with the SDGs
Digital tools can help assess whether business models are aligned with the SDGs and identify areas for better alignment. For example, digital technologies could reduce a company's carbon footprint or enhance communication with stakeholders in the community that the business operates in.
Unlock financing
Digital solutions can help businesses better track and manage transactions, creating data that can be used to build their credit worthiness and access finance. Digital finance can unlock financing for entrepreneurs who may face barriers in accessing traditional financial service providers. Digital finance also provides a way for businesses to access funds when crises strike and financial service provision is disrupted.
Facilitate reforms
UNDP works with governments to strengthen institutional capacities to foster the digital economy and pursues digital entrepreneurship policies with a focus on inclusion of women,youth and those disproportionately affected by crises.

Stakeholders

It is important to consider the key stakeholders for LER. These should be engaged to reinforce the capacity of each digital programming area, and provide the basis for crisis-mitigation and future post-crisis recovery.

Communities and users
UNDP uses participatory approaches with communities and the end users of digital solutions to drive user experience and adoption, which eventually contributes to the sustainability of the solution.
Academia
Leveraging their knowledge of specific contexts and resources for solution development, as part of innovation hubs, and through linkage with the public sector.
Government technology and ICT departments/ministries
UNDP and other UN initiatives do not exist in silos. They are designed to support the nation rebuild its capacity to support its citizens. Having strong relationships with Government technology departments is vital to be able to coordinate UNDP's digital support to LER. Fostering ownership of digital technology solutions by government and other institutional actors is also critical to increase sustainability. UNDP supports line ministries in working together with ICT partners, ensuring that solutions are developed with the end users in mind.
Digital literacy and education organisations
Many companies support digital literacy in low-resourced nations. Due to having existing partnerships with these organisations they can support the in-country delivery of programmes that aid in scaling up digital literacy for women, youth and other citizens.
Private sector
As part of a value chain, and as beneficiaries and partners in recovery interventions.
- Telecommunications Companies
  Incrisis and post-crisis having reliable communications infrastructure set up and available to support digital delivery mechanisms, response coordination, and communication is vital to delivering an appropriate response and ensuring continued aid delivery.
- Global technology companies
  As was seen in the case of Ukraine with the provision of internet support from Starlink, having global support from international tech companies can be a boon for crisis mitigation and post-crisis recovery.
- Technology service providers
  Having a number of local and international technology service providers to support the set up and delivery of technology systems and consulting support can help increase the speed of delivery in a post-crisis recovery.

Programming examples

The below links provide access to specific guidance, case studies and proposed Digital Public Goods for the programmatic implementation of digital transformations across the key programme areas within LER:

Digital SEIA for MSMEs – for assessments

This digital vulnerability analysis was created by UNDP to respond to the August 4^th explosion in the port of Lebanon. As this was delivered digitally, it enabled a rapid canvassing of the affected Lebanese population post-explosion with 5,901 households and 3,680 businesses surveyed shortly after the explosion. 

Links: 

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