Decision Memo and Guidance Note: Survival Minimum Expenditure Basket and Setting the Transfer Values (August 2021)

OBJECTIVE AND SCOPE

The guidance note explains the steps and processes adopted for the review of SMEB based transfer values for Yemen for Q2-Q3 2021. The values are subject to review again in end of Q3 2021 to be applied for Q4 2021 accordingly. The objective of this document is to provide guidance to the Cash and Voucher Assistance (CVA) community of Yemen on the Survival Minimum Expenditure Basket (SMEB) and the corresponding Transfer Values (TV) for Northern and Southern Governorates in Yemen for Q3 2021. This is a living document and will be amended as per the evolving context of Yemen and the developments led by the CMWG Yemen regarding the SMEB and Transfer Values in consultation with clusters and partners.

The scope encompasses the complete process undertaken for the development of Survival Minimum Expenditure Basket and determining of the corresponding Transfer Values for northern and southern Governorates in Yemen. The document also covers the deliberations with the respective clusters and the logic for selection of the commodities included in the SMEB; the final recommendations from the Cash and Market Working Group on SMEB and TVs; household size, calculation of Multi-Purpose Assistance Package through the SMEB based Transfer Value and the broad monitoring framework etc.

DETERMINING THE SMEB AND TRANSFER VALUES FOR YEMEN

The Survival Minimum Expenditure Basket (SMEB) for Yemen was refurbished in late 2020 and is defined as ‘the critical needs which a household requires in order to meet their critical essential needs, on a regular or seasonal basis, and on its average cost’. The ‘critical essential needs’ are defined as the critical goods and commodities, utilities and services required by households to ensure survival minimum living standard. A formal ‘Technical Working Group on SMEB (TWG – SMEB)’ led by the CMWG Yemen was formalized and Terms of References (TORs) were developed. The deliverable of the TWG – SMEB included a formalized revision of SMEB and determining the Transfer Values based on the newly constructed SMEB.

It was agreed that SMEB and SMEB based transfer values will be reviewed periodically to align the basket and assistance packages according to the changing needs of the communities and dynamic context of Yemen. Quarter 1 2021 review was conducted in late January and early February 2021 and the revised values were determined to accommodate the changes in exchange rates and rise market prices of commodities.
The SMEB based Transfer Value review for Q2-Q3 took place in June and July 2021 which included various consultations summarized in the next section.