BASELINE HOUSEHOLD VULNERABILITY ASSESSMENT Emergency Multipurpose Cash Assistance to Enable Gazans to Cope with Crisis-Related Shocks

Baseline Report

AWARD NO. 720BHA21GR00158

SEPTEMBER 2021

MERCY CORPS Emergency Multipurpose Cash Assistance: Baseline Report 2

TABLE OF CONTENTS

ACRONYMS 3

EXECUTIVE SUMMARY 4

INTRODUCTION 5

METHODOLOGY 5

KEY FINDINGS 6

DEMOGRAPHICS 6

HOUSEHOLD INCOME, SPENDING, AND DEBT 8

COPING STRATEGIES 13

FOOD CONSUMPTION 14

MULTI-SECTORAL NEEDS 15

IMPACT OF THE ESCALATION 17

CONCLUSION 18

ANNEXES 19

MERCY CORPS Emergency Multipurpose Cash Assistance: Baseline Report 3

Acronyms AAP Accountability to Affected Persons

BHA Bureau for Humanitarian Assistance

CI/MOE Confidence Interval/Margin of Error

CSI Coping Strategies Index

CWG Cash Working Group

DAP Data Analysis Plan

FCS Food Consumption Score

FHH Female-headed households

GPC Gaza Protection Consortium

HH Household

HHH Head of Household

MDT Modality Decision Tool

MHH Male-headed households

MNI Meeting Needs Index

MoSD Ministry of Social Development

MPCA Multi-Purpose Cash Assistance

NRC Norwegian Refugee Council

PCBS Palestinian Central Bureau of Statistics

PMTF Proxy Mean Test Formula

PNCTP Palestinian National Cash Transfer Program

rCSI Reduced Coping Strategy Index

USAID United States Agency for International Development

UVAT Unified Vulnerability Assessment Tool

MERCY CORPS Emergency Multipurpose Cash Assistance: Baseline Report 4

EXECUTIVE SUMMARY

In August 2021, the Emergency Multipurpose Cash Assistance to Enable Gazans to Cope with

Crisis-Related Shocks program, led by Mercy Corps and funded by the United States Agency for

International Development (USAID) under the Bureau for Humanitarian Assistance (BHA),

conducted a baseline vulnerability assessment in the Gaza Strip. The objective of the baseline

assessment is twofold: provide baseline values for key indicators that require baseline (and endline)

figures and provide an overall and programmatic understanding of the target population’s socio-

economic vulnerability in the aftermath of the most recent escalation in the Gaza Strip in May 2021

as well as the effects of the crisis-related shocks on coping strategies and multi-sectoral needs,

including shelter, food security, and employment. Overall, the baseline assessment aims to collect

the information and data necessary to better inform and guide multi-purpose cash assistance

(MPCA) programming. The rapid emergency assessment component of this study indicated that among the 2,322 households

(HHs) assessed, 42 percent were directly impacted by the latest escalation, by either damage to

shelter, loss of assets, or both. The loss is estimated to be approximately 1,300 USD per HH (out of

which 1,000 USD is related to shelter damage), with 9 percent of HHs reporting losses of more than

4,000 USD. Approximately 60 percent of affected HHs were temporarily displaced, but at the time of

data collection, nearly all HHs had already returned to their original homes.

Key data on income, debt, and spending patterns, including an increased reliance on negative coping

strategies, and an increase in food insecurity and unemployment, suggests that the escalation is likely

to exacerbate medium- and long-term vulnerabilities. The resulting crisis-related shocks could further

compound the HHs’ minimal capacity for resilience by exacerbating the use of negative coping

strategies and increasing vulnerability to protection risks and other acute concerns. Critically, the

baseline data indicates that the poorest and most vulnerable HHs in the Gaza Strip are at risk of relying

on more severe coping mechanisms if their economic situation does not improve. Specific concerns

include spikes in debt patterns, withdrawal of children from formal education, and the sale of homes

or productive assets. However, further investigation is needed to better understand these risks. In

order to address these knowledge gaps, Mercy Corps will conduct two thematic studies in October

2021 focusing on debt and coping strategies.

The results from the vulnerability assessment, key indicators on Accountability to Affected Persons

(AAP), and USAID’s Modality Decision Tool (MDT) confirm Mercy Corps’ determination that MPCA

remains the most broadly feasible aid delivery mechanism and most appropriate modality to respond

to the varying, complex, and multi-sectoral needs of the target population in the Gaza Strip. MPCA, to

be delivered in three installments between September and November 2021, will support the target

population to meet critical food and basic needs and cope with and recover from crisis-related shocks.

This report addresses the methodology behind the baseline vulnerability assessment; key

demographic indicators; HH income, spending, and debt patterns; HH use of negative coping

mechanisms; food security; and the impact of the May 2021 escalation.

MERCY CORPS Emergency Multipurpose Cash Assistance: Baseline Report 5

INTRODUCTION The most recent escalation in violence in the

Gaza Strip occurred from May 10-21, 2021,

during which time a large number of rockets

and airstrikes were launched, and 230

Palestinians killed and 1,760 injured.

Residential and commercial buildings,

critical infrastructure, and livelihoods

suffered extensive damage. According to

the World Bank, the latest escalation

caused massive economic losses in the

Gaza Strip amounting to 190 million USD

with the largest share of these losses in the

social sector (between 60-80 million USD)

due to additional health needs, social

protection costs, and unemployment.1

Even before the most recent escalation, the

situation of many Gazans was dire.

According to the UN, almost 62% of the

population is food insecure.2 On top of the persistent food insecurity, a fourth wave of COVID-19 has

been spreading throughout Gaza.3 However, the alarming food insecurity figure masks an even

greater problem. The remainder of the population who appear to meet acceptable food consumption

scores (FCS) are often achieving this at the expense of other critical basic needs, including healthcare,

shelter, and education, as reported by 9% of HHs assessed for this baseline vulnerability assessment.

This forces HHs to accumulate large debts, placing them at risk of slipping into deeper overall

insecurity. A baseline vulnerability analysis conducted by Mercy Corps and Norwegian Refugee

Council (NRC) in the third quarter of 2020 on 2,241 prospective MPCA recipient HHs found an

extremely high rate of indebtedness (90% of HHs) with an average per-HH liability of over ILS 10,000

(USD 3,114)4, which would take six years to repay without assistance. Taking on debt is the most

common coping strategy in Gaza, observed among 86% of the HHs assessed for this baseline

vulnerability assessment.

Also underlying the rising needs due to the current crisis is Gaza’s long standing and pervasive

poverty. According to the Palestinian Central Bureau of Statistics (PCBS), Gaza’s average overall

unemployment rate reached 45% in the second quarter of 2021 compared to a still-elevated 17% in

the West Bank.5 The baseline vulnerability analysis conducted by Mercy Corps and NRC also found

a short-term unemployment rate of 74%, increasing to 82% in Khan Younis governorate. In addition,

1 “Gaza Rapid Damage and Needs Assessment: June 2021,” July 6, 2021, https://reliefweb.int/report/occupied-palestinian-territory/gaza-rapid-damage-and-needs-assessment-june-2021. 2 “Escalation of Hostilities and Unrest in the oPt”, May 27, 2021, https://www.ochaopt.org/sites/default/files/flash_appeal_27_05_2021.pdf. 3 “Coronavirus disease 2019 (COVID-19) Situation Report 79”, August 12, 2021, https://reliefweb.int/sites/reliefweb.int/files/resources/who18.createsend.com__34.pdf. 4 All currency conversions are based on the 13 September 2021 rate from the US Treasury recommended site, xe.com. 5 “Press Release on the Results of the Labour Force Survey Second Quarter,” August 8, 2021, https://www.pcbs.gov.ps/post.aspx?lang=en&ItemID=4044.

MERCY CORPS Emergency Multipurpose Cash Assistance: Baseline Report 6

80% of wage employees working in the private sector in Gaza receive an average monthly wage far

below the deep poverty line of ILS 1974 (USD 615) and less than the ILS 1,450 (USD 452) minimum

wage. Notably, there is a clear disparity between the monthly minimum wage in the Gaza Strip (ILS

655 or USD 204) and in the West Bank (ILS 1,142 or USD 356).6 Overall, the already dire situation in

the Gaza Strip is exacerbated by the recent escalation that severely restricted all movement and

greatly damaged homes and livelihoods.

METHODOLOGY The baseline vulnerability assessment used a combination of quantitative and qualitative data

collection tools and was harmonized with the Gaza Protection Consortium (GPC), implemented by

Mercy Corps and NRC. The Palestinian Ministry of Social Development (MoSD) provided Mercy Corps

with a list of 2,855 potentially eligible HHs from across all five of the Gaza Strip’s governorates - North

Gaza, Gaza, Middle Area, Khan Younis, and Rafah. Following an internal review of the HHs, including

removing duplicates and cases without contact details, Mercy Corps’ trained enumerators conducted

data collection between August 1-19, 2021, assessing a total of 2,332 HHs.

The assessment was conducted in-person through HH visits, in Arabic, and on phones or tablets with

questionnaires uploaded to CommCare, a digital data collection platform that supports case

management and traceable referrals for individuals and HHs over time. To mitigate the risk of COVID-

19 transmission either within our team or the communities we serve, enumerators called eligible HHs

prior to the visits to request that they wear face masks and personal protective equipment during the

HH visits, which were conducted in open spaces or with limited people permitted in the space. Mercy

Corps also provided enumerators with face masks (non-medical/non-surgical), gloves (non-

medical/non-surgical), and handwashing/sanitizing materials and instructed them to maintain physical

distancing during data collection to ensure the health and safety of staff and participants.

Mercy Corps used both the national Proxy Mean Test Formula (PMTF), developed by the MoSD and

the World Bank, as well as the Cash Working Group’s (CWG) approved Unified Vulnerability

Assessment Tool (UVAT) to assess the HHs’ eligibility to receive assistance. The MoSD uses the

PMTF to target HHs for the Palestinian National Cash Transfer Program (PNCTP). The UVAT uses

multivariate regression to correlate certain proxies, including HH characteristics, income, assets,

coping strategy index, food consumption, expenditures, debts, and others. In order to better capture

the effect that the latest escalation had on assessed HHs, the survey also included key questions and

indicators taken from previously conducted emergency assessments. See Annex 2 for the survey in

English and Arabic.

Upon completion of data collection, the program, technical, and data teams developed a Data Analysis

Plan (DAP) to guide the quantitative analysis and ensure that the captured data was appropriate to

inform program adaptation. The DAP corresponded to the structure of the baseline survey, and re-

grouped indicators based on the thematic sectors they addressed (e.g., shelter with shelter,

demographics with demographics), rather than follow the questionnaire flow. This report follows the

structure of the DAP. In addition, several additional socio-economic and demographic variables were

created to facilitate more nuanced analysis. As Mercy Corps received the list of potential beneficiaries

from MoSD and did not sample the population with a Confidence Interval or Margin of Error (CI/MoE),

6 “Press Release on the Results of the Labour Force Survey Second Quarter,” August 8, 2021, https://www.pcbs.gov.ps/post.aspx?lang=en&ItemID=4044.

MERCY CORPS Emergency Multipurpose Cash Assistance: Baseline Report 7

data presented in this report are representative exclusively at the population of interest level and are

not generalizable to the broader Gaza Strip.

KEY FINDINGS ● 9 percent of the assessed HHs reported having a regular source of income

● HHs in North Gaza represented the greatest negative income-ratio (ILS 540 or USD 168)

expenditure and (ILS 346 or USD 108) income, while HHs residing in Rafah reportedly had

the least income and correspondingly the lowest expenditures

● 86 percent of the assessed HHs were in debt, with an average total debt of ILS 3,000 (USD

934)

● 81 percent of the assessed HHs reported buying on credit or accruing debt to meet their

basic needs

● 0.3 percent of the assessed HHs had savings

● 1 percent of the HHs reported engaging in begging to meet their basic needs

● 41 percent of monthly expenditures were dedicated to food

● On average, HHs used a food-related coping strategy at least three times in the seven days

prior to data collection

● 8 percent of the assessed HHs had acceptable food consumption

● 95-97 percent of HHs reported being unable to fully meet their income, food, health,

education, and other basic needs

● 4 percent of HHs reported withdrawing children from formal education

● 17 percent of the assessed HHs reported being at risk of eviction

● 64 percent of the HH reported that they did not live in a safe and dignified shelter

DEMOGRAPHICS

Heads of Household

The median HH size of the assessed HHs is 5, including both nuclear7 and extended family members

living within the same shelter and sharing resources, slightly lower than the Gaza Strip reported

average HH size of 5.7.8 Of the total HHs assessed, 78 percent were male-headed (MHH), and 22

percent female-headed (FHH).9 The geographic representation of assessed HHs is spread throughout

the Gaza Strip, with the majority in Gaza City (41 percent) and the fewest in Middle Area (10 percent),

as shown in Figure 1 below.

7 A ‘nuclear family’ has several definitions according to UNSTAT, but is usually a single family nucleus comprised

of a married couple, a father, or mother, with or without child(ren). Extended family members are relatives or other

persons living with the family nucleus. 8 Palestinian Central Bureau of Statistics, July 2021. 9 Weighting was not applied to FHHs because (1) the unit of analysis in this report is HHs, not individuals, meaning in general it is FHHs, not females, that are factored into analysis, and (2) the findings pertain to poor HHs registered with the MoSD but not in receipt of assistance – the population of interest – and cannot be generalized to the wider Gaza population. This means the full dataset is in effect the sample frame. In other words, the number of FHHs in the dataset is representative of FHHs within the population of interest.

MERCY CORPS Emergency Multipurpose Cash Assistance: Baseline Report 8

Figure 1: HOUSEHOLDS DISTRIBUTION BY GOVERNORATE, BY SEX OF THE HEAD OF HOUSEHOLD

In terms of civil status, almost all MHHs (77 percent of MHHs out of 78 percent of total HHs) reported

being married, while the status of FHHs varies as shown in Figure 2.

Figure 2: HEAD OF HOUSEHOLDS’ CIVIL STATUS, BY SEX OF THE HEAD OF HOUSEHOLD

7%4% 4% 4% 3%

34%

14%

6%

18%

6%

0%

10%

20%

30%

40%

Gaza city Khan Younis Middle Area North Gaza Rafah

Female headed Male headed

1% 5%

12%0% 0%

4%

77%

0%

20%

40%

60%

80%

Abandoned Divorced Married Separated Single Widowed

Female headed Male headed

MERCY CORPS Emergency Multipurpose Cash Assistance: Baseline Report 9

Figure 3: HOUSEHOLDS, BY REFUGEE STATUS

Two thirds of the assessed HHs were refugees and a third were not, which broadly reflects the 70/30

percent ratio of the wider Gaza refugee distribution.10 The median average age of the head of

household (HHH) is 32 years old.

Overall, 12% of assessed HHs reported at least one HH member with a disability, and 27% with at

least one HH member with a chronic illness. The most reported health problems are physical

disabilities, loss of eyesight, and hearing difficulties.

HOUSEHOLD INCOME, SPENDING, AND DEBT

Income sources

The baseline vulnerability assessment sought to understand present levels of income and expenditure

among participating HHs through an income module that determined the monthly income earned or

obtained from a range of different sources of income as well as an expenditure module which

determined how much HHs spend on a range of different goods and services.

In terms of income sources and income distribution, assessed HHs reported receiving or earning

income from the sources indicated in Figure 4. Data showed that HHs participating in the baseline

overwhelmingly relied on informal and unreliable sources of income. Income from temporary or daily

labor was the most common income source reported, underlining the employment crisis in Gaza. A

regular salary from the private or public sectors was mentioned as a regular source of income in only

9.1 percent of HHs (accounting for those with “regular employment” and those who receive a

“pension”). Interestingly, when asked about employment status, 23 percent of the HH reported not

being interested or willing to seek employment. Data showed that just 21 percent of the assessed HHs

have at least one HH member currently employed, and 4 percent are engaged in different activities,

such as school or retirement. See Figure 5 for HHs by employment status.

10 “Displaced Palestine refugees seek shelter at UNRWA schools in Gaza”, 19 May 2021, https://reliefweb.int/report/occupied-palestinian-territory/displaced-palestine-refugees-seek-shelter-unrwa-schools-gaza.

65%

0%

35%

Refugee Not registered refugee Non-refugee

MERCY CORPS Emergency Multipurpose Cash Assistance: Baseline Report 10

Figure 4: HOUSEHOLDS, BY INCOME SOURCE

Figure 5 HOUSEHOLDS, BY EMPLOYMENT STATUS

On average, HHs reported a monthly income of ILS 415 (USD 129). While self-reported income can

be prone to bias, it is close to the ILS 390 (USD 121) average reported in Mercy Corps/GPC’s 2019

and 2020 baseline assessments, which lends credibility to this average. Breaking down the average

monthly reported HH budget, the majority of expenditures go towards food (41 percent) and healthcare

(13 percent). Other expenditures, such as non-food items, fuel, transportation, rent, house

maintenance, education, and water, range between 0.2 and 7 percent of total expenditures. This

35.0%

33.4%

6.8%

4.6%

4.5%

3.6%

2.9%

2.7%

2.4%

1.4%

0.9%

0.8%

0.7%

0.4%

0.0% 10.0% 20.0% 30.0% 40.0%

temporary seasonal…

gifted income

Other income source

Regular employment

government support Pension

Social Aid not MoSD

UN NGO cash assistance

own business

selling in-kind assistance

agriculture livestock and…

remittances

selling household assets

MoSD cash assistance

selling productive assets

5%1%

21%

18%

7%

26%

19%

4%

Did not seek employment and notwilling to do so

Did not seek employment butwilling

Employed

Not working and not willing to work

Not working but willing (withoutexperience)

Not working but willing (withexperience)

Sought job but didn't find any

MERCY CORPS Emergency Multipurpose Cash Assistance: Baseline Report 11

indicates that most of these critical needs go unmet. Just one HH reported using part of their budget

to purchase productive assets in the 30 days prior to data collection. Figure 6 shows the percentage

breakdown of the full HH expenditure module for the whole dataset.

Figure 6: HOUSEHOLDS, BY REPORTED EXPENDITURES IN THE 30 DAYS PRIOR TO DATA COLLECTION

The difference between average monthly income (all HHs: ILS 415 or USD 129; MHH: ILS 430 or USD

134; FHH: ILS 366 or USD 114) and average monthly expenditure (all HHs: ILS 516 or USD 161;

MHH: ILS 540 or USD 168; FHH: ILS 432 or USD 135) indicates a consistent monthly gap of ILS 101

(USD 32). This gap is typically addressed through accruing debt and using other negative coping

strategies as reported by assessed HHs.

Figure 7 shows significant differences between governorates in the Gaza Strip. Gaza City records

both the highest income and the highest average expenditures, which is typical considering the

livelihood implications of residing in urban areas. Correspondingly, Rafah also shows the lowest

averages, possibly due to the rural setting. The greatest gap is recorded in North Gaza, while the

Middle Area records practically no gap (ILS +4 (USD 1) per month). It is also clear that HHs’ spending

is not currently sufficient to meet their needs, and some are neglected in favor of food and other critical

areas. Thus, considering the use of coping strategies, the level of needs, and the overall

unemployment context, it can be assumed the gaps are greater than what is reported as HHs neglect

expenditures based on perceived priority. Mercy Corps will investigate this dynamic further during the

upcoming thematic studies on debt and coping strategies.

Overall, 86% of the assessed HHs reported being in debt, with a median average debt of ILS 3,000

(USD 934). Furthermore, 16 percent of the assessed HHs reported having an average debt greater

than ILS 10,000 (USD 3,114). These statistics, considering income, debt, and expenditure patterns,

would take a minimum 30 months to be covered, assuming either a shift in income, a reduction or

complete stop in debt accruement, a consistent reduction in expenses, or a continuous use of other

negative coping strategies. Just six of the assessed HHs (0.3 percent) reported having savings,

13.0%

6.9%

5.8%

5.5%

4.9%

4.5%

3.4%

2.9%

2.4%

2.4%

2.1%

1.5%

1.5%

1.2%

1.0%

0.2%

0.0% 10.0% 20.0% 30.0% 40.0%

Food

Healthcare_including_medicine

Fuel_eg_butane

Debt_repayments

Hygiene_items_nis

non_food_items

Transportation

other

hygiene_items

Rent

Electricity

house_maintenance

Education

Water

univeresity_fees

Communication

Productive_assets

MERCY CORPS Emergency Multipurpose Cash Assistance: Baseline Report 12

including those who reported having saved through a financial institution and those who saved

privately.

Figure 7: HOUSEHOLDS, BY REPORTED EXPENDITURES IN THE 30 DAYS PRIOR TO DATA COLLECTION

MERCY CORPS Emergency Multipurpose Cash Assistance: Baseline Report 13

COPING STRATEGIES When HHs’ ability to meet their basic needs is degraded by a shock, or they are at risk of (or vulnerable

to) having their ability to meet needs degraded, an increased reliance on coping strategies is common.

The coping strategies reportedly available to and used by the assessed HHs were typically social

and/or economic. The use of negative coping strategies could worsen or exacerbate the protection

risks that roughly 10 percent of the assessed HHs reported, which entail a mix of physical, verbal,

psychological, and emotional violence and abuse. As such, the inability of Gazans to meet basic needs

is closely related to other acute concerns and vulnerabilities.

Figure 8 shows which negative coping strategies are most common among assessed HHs. In line

with the previous section on debt, the most common negative coping strategy, used by 81 percent of

HHs, is purchasing goods on credit or taking loans. This is followed by reducing other expenditures in

order to meet food needs (49 percent) and sending family members elsewhere to eat (34 percent).

Although uncommon, 4 percent of the assessed HHs withdrew their children from the formal education

system because they either could not afford the costs or needed them to work; 3 percent sold their

productive assets; 1 percent engaged their children in begging or child labor; and 1 percent sold their

homes. These less frequently used coping strategies, however, have great repercussions on

protection and on HH ability to meet basic needs. Thus, their severity is counted higher.

Figure 8: HOUSEHOLDS, BY THE USE OF COPING STRATEGIES IN THE 30 DAYS PRIOR TO DATA COLLECTION

Together, with these livelihood-related coping strategies, HHs reportedly engaged in food-related

coping strategies, per the reduced Coping Strategy Index (rCSI). Reportedly, 93 percent of the HHs

shifted towards cheaper and poorer quality food, 83 percent consumed a lower quantity of food during

meals, and 82 percent reduced the number of meals per day. On average, HHs used food-related

coping strategies between two and three times a week, where the highest frequency recorded was a

reduction in the number of daily meals 3.16 times a week. The distribution of HHs by rCSI is as follows:

82% of the assessed HHs have a high coping rCSI score (greater than or equal to 10); 9% have a

81%

49%

34%

6% 4% 4% 3% 1% 1% 1% 1%0%

20%

40%

60%

80%

Buyingon creditor using

borrowedcash

Reduceexpenseson health

andeducation

Senthouseholdmembers

to eatelsewhere

Soldhousehold

assets

Spendingsavings

Withdrewchildren

fromschool

Soldproductive

assets

Engagedchildren intypes ofbeggingor childlabour

HHmemberor entire

HHmigrated

Engagedin begging

Soldhouse or

land

MERCY CORPS Emergency Multipurpose Cash Assistance: Baseline Report 14

medium rCSI score; and 10% have no or a low coping rCSI score. The average rCSI for the assessed

HHs was 22.9 (MHH: 22.3, FHH: 23.3).

FOOD CONSUMPTION

Food Consumption Scores Figure 9: FOOD CONSUMPTION SCORES, BY HOUSEHOLD

The baseline vulnerability assessment included an FCS module to understand the sufficiency of weekly food intake. The FCS module asked how often different food groups were consumed over the seven days prior to the assessment, with each group weighted differently in line with global food consumption standards. The groups formed from the resulting scores were ‘poor’ (FCS between 0-28), ‘borderline’ (FCS between 28-42), and ‘acceptable’ (FCS of 42+) levels of food consumption as shown in Figure 9. On average, HHs scored 41.6 in the FCS, just below acceptable. The combination of FCS data, monthly food expenditure, and the consumption-based monthly coping strategy use provide insight into the overall food security of participating HHs. Additional information was provided in terms of food diversity and the number of times HHs consumed each of the food types in the seven days prior to data collection as illustrated in Figure 10.

Figure 10: FOOD CONSUMPTION, BY FOOD GROUPS

Data shows that fruit and animal proteins are consumed roughly once or twice a week. No food group

was consumed seven days a week by any HHs, on average. This further links to the previous findings

on food-related coping strategies, with HHs choosing to restrict both the number of meals per day and

the variety of food consumed.

92%

59% 59%

1%13%

46%

11%

71%

92%

0%

20%

40%

60%

80%

100%

0.00

2.00

4.00

6.00

Average (# of times per week) % having at least three time

17%

75%

8%

0%

20%

40%

60%

80%

Poor FCS Borderline FCS Acceptable FCS

MERCY CORPS Emergency Multipurpose Cash Assistance: Baseline Report 15

MULTI-SECTORAL NEEDS Data shows that the vast majority of the assessed HHs have limited or no capacity to meet basic

needs. As shown in Figure 11, almost all HHs reported being either fully or mostly unable to meet

their needs. Shelter and water appeared the only exceptions, with 36 percent and 26 percent of HHs

reporting being able to address their own needs, respectively. Particularly worrying are the trends for

income, food, health, education, communication, and HHs items, as the percentage of HHs not

being able to fully meet their needs ranges between 94 and 97 percent.

Figure 11: HOUSEHOLDS REPORTED CAPACITY OF MEETING BASIC NEEDS, BY SECTOR

When asked about their perceived priorities, HHs identified cash, labor/employment, housing, and

debt repayment. Interestingly, despite the existing distribution of expenditures and its importance, just

2 percent of the assessed HHs identified healthcare as a main priority.

The shelter component, however, raises key protection concerns, as 17 percent of the assessed HHs

reported being at risk of eviction, because either the host family (44 percent of the cases) or the owner

(13 percent) requested they vacate their house or rooms due to inability to pay. Furthermore, just 36

percent of the assessed HHs reported living in a safe and dignified shelter, a lack of which often leads

to further shelter, protection, and winterization-related needs.

43%

31%

20%24% 27%

35%

46%41% 40%

46%53%

37%

38%

17%17%

23%

32%

25%26% 31%

37% 27%

18%

25%

27%

33%

37%

28% 24%27%

23%

14%14%

2%4%

9%

12%

8%

4% 4% 5% 5% 2%4%

1% 2%

27%

14%

4% 1% 1% 1% 1% 1% 2%

0%

20%

40%

60%

80%

100%

Fully unable Mostly unable Partially able Mostly able Fully able

MERCY CORPS Emergency Multipurpose Cash Assistance: Baseline Report 16

The program uses the

Meeting Needs Index (MNI),

which divides HHs based on

their ability to meet basic

needs. On average, the

assessed HHs scored 0.282,

or in the ‘Partially Able’

classification.

According to the MNI, 50

percent of the assessed HHs

were unable to meet any of

the sectoral needs, 39 percent

were just partially able, and 11 percent were mostly or fully able to sustain their own needs.

IMPACT OF THE ESCALATION Among the assessed HHs, 42

percent were reportedly impacted

by the latest escalation, and all

reported either a loss of their shelter

(95 percent), their livelihood assets

(3 percent), or both (2 percent). On

average, HHs affected by the

emergency reported an estimated

loss of roughly 1,300 USD, with 9

percent reporting losses above

4,000 USD.

In terms of damage to shelter, 77

percent of the assessed HHs

reported damages to doors and windows; 20 percent a partial damage in walls or dwellings; 2 percent

described other types of damage; and 1 percent (corresponding to 14 HHs) reported full house

demolition. Such damages resulted in the displacement of roughly 60 percent of those HHs that were

affected by the escalation, with an average of three displacements recorded. Data further shows that

a quarter (24 percent) of the affected HHs were displaced five times from the house unit they previously

lived in (tertiary displacement). Yet almost all HHs had returned to their original house unit by the time

of data collection. Just 1 percent (corresponding to 12 HHs) were reportedly still displaced at the time

of data collection. As a result of the shelter damage, 66 percent of the emergency-affected HHs

estimated they expected to face an average of 1,040 USD shelter and HH-related expenses.

1%10%

39%42%

8% Fully Able (0.75-1)

Mostly Able (0.5-.75)

Partially Able (0.25-0.5)

Mostly Unable (0-0.25)

Fully Unable (0)

58%

42%Not affected

Yes, affected by thelatest shock

MERCY CORPS Emergency Multipurpose Cash Assistance: Baseline Report 17

CONCLUSION Baseline findings are consistent with the proposed

design of the program. The baseline vulnerability

assessment shows there continues to be a strong

need for MPCA among Gazans and that MPCA

continues to be an appropriate and feasible

modality in the Gaza Strip.

87 percent of the assessed HHs meet the

qualifications for extreme poverty, while 9 percent

fall in between poverty lines, and 4 percent are

classified as not poor. Almost all assessed HHs

reported numerous multi-sectoral vulnerabilities,

non-existent income, high levels of debt, and

frequent use of negative coping strategies. At the

current repayment rate, the technical team estimates that it would take a minimum of 30 months to

repay what HHs accrued and borrowed, extending to as long as 10 years. Significant financial burden

with minimal income stability has the potential to further expose HHs to significant risks and exacerbate

an already precarious situation.

Of the key indicators for HHs that could be classified as “not poor”, 31 percent were currently

employed, 89 percent had a family size of four or less members, and 16 percent were elderly headed

(defined as above 50 years old). Additionally, no HH with the HHH reporting a disability could be

classified as “not poor”, and just 3 percent of HHs with a member with disability were in this category.

Thus, family size, unemployment, and disability status are key drivers of poverty in this caseload.

Furthermore, considering the demographics, it is also possible to conclude that the prevalence of

members with disabilities and/or chronic illness can further compound the socio-economic vulnerability

of HHs.

In light of the varying and multi-sectoral needs, MPCA is the most broadly applicable support

mechanism that will enable HHs to make purchases to meet their individual needs. Moreover, MPCA

has been shown to significantly help vulnerable Gazan HHs meet food and other basic needs and

reduce the use of negative coping strategies. Over the duration of the program, through the use of

MPCA and in line with the program goal, Mercy Corps expects to support vulnerable HHs in the Gaza

Strip meet their basic needs and begin the process of rebuilding their lives and livelihoods in the

aftermath of the May 2021 escalation.

ANNEXES Annex 1. Indicator Tracking Table

Annex 2. Post-Emergency UVAT Survey

Extreme poverty,

87%

Between poverty

lines, 9%

Not Poor, 4%

MERCY CORPS Emergency Multipurpose Cash Assistance: Baseline Report 18

CONTACT

Margaretta Burdick

Senior Program Officer

mburdick@mercycorps.org

About Mercy Corps

Mercy Corps is a leading global organization

powered by the belief that a better world is

possible. In disaster, in hardship, in more than 40

countries around the world, we partner to put bold

solutions into action — helping people triumph over

adversity and build stronger communities from

within.

Now, and for the future.

45 SW Ankeny Street

Portland, Oregon 97204

888.842.0842

mercycorps.org