HOUSEHOLD ECONOMY ANALYSIS (HEA) FRAMEWORK

The Household Economy Approach is an analytical framework used to examine household operations ? how households across the wealth spectrum, source food and income, their expenditure patterns, social relationships, and how they cope with hazards.

The analytical process involves six steps. The table below outlines and describes each step.

Step Information Sources Description

One: Livelihood Zoning

  • National and sub-national level key informants (country experts, government and non-government officials)
  • Secondary data

Disaggregation or zoning of geographic areas according to similar livelihood patterns and access to markets.

Two: Wealth Group Breakdown

District or regional level key informantsCommunity leadersLocal traders and shop keepers

This step involves classifying households into common wealth groups using local determinants of wealth and quantifying asset ownership.

Three: Livelihood Strategies

Focus group discussion with household key informantsLocal traders and shop keepersCommunity leaders

Once wealth groups are determined researchers conduct focus group interviews to triangulate sources of food with income and expenditure, allowing for ?in-field? analysis. Food access is expressed as a percentage of minimum energy requirements, taken as an average food energy intake of 2100 kcals per person per day. Annual income earned by the household is balanced with expenditure, allowing the interview to capture a reliable account of the different income activities each household is engaged in.

Four: Problem Specification***

Crop estimates and Pre/Post harvest crop assessmentsMarket and trade information, including wholesale and retail prices, labor demand and wages, etc.Livestock production estimatesKey informants (including government and non-government)FEWS NET Representatives

Once the full story of how people make ends meet is understood, analysts can gauge the immediate effect of the hazard (problem) and how it may affect access to food and income for all wealth groups.

Five: Analysis of Coping Strategy***

Expandability, based on household assets and opportunities in the baseline yearInformation on coping strategies collected during baseline studyAnalysis team members (country experts, government and non-government officials)

The next step is to incorporate households? ability to cope with these shortfalls and adapt in the short to long-term.

Six: Scenario projection***

Analysts such as FEWS NET Representatives and Network Partners

Finally, analysts can determine if and how much external assistance is needed and pinpoint which sectors of the population are most vulnerable to food insecurity.

*** Can only be done after step three

 

 
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