Cash transfer programming

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Cash transfer programming

• Kiflemariam Amdemariam Ph. D
• Food Security Delegate
• International Federation of
• RC and RC societies
• EA Zone Office

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RC/RC Experiences of cash transfer programming

• Ethiopia Red Cross/BRC/IFRC 2000, 2001,2003,
  drought affected communities
• Somalia, ICRC 2001-2007 conflict affected
  communities
• Zambia RC, 2006, food insecure communities
• Liberia, ICRC 2007, seed vouchers ans cash for
  work
• Niger, IFRC and BRC 2005,2006 emergency cash

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When are cash transfer programmes appropriate?

• Pre-disaster
• Initial stages of a disaster
• Recovery or transition period
• In permanent/chronic crisis
• During conflict

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Why Cash Transfer?

• Cost efficient
• Choice
• Multiplier effects
• Avoids disincentive effects
• Fewer costs for recipients
• Dignity

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Types of cash and voucher interventions

• Unconditional cash transfers
• Voucher transfers
• Cash for work
• Seed vouchers
• Cash transfers for support to livelihoods

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RC/RC Tools for Cash Transfer programming

• Assessment checklist for cash programmes
• Market assessment
• Community based targeting
• Direct cash transfers step by step
• Assessing financial institutions
• Post distribution monitoring
• Planning financial flows
• Additional information for database

7
Possible disadvantages of cash

• Inflationary risks
• Anti-social use
• Security risks
• More difficult to target
• More prone to diversion
• Disadvantages women
• Less available from donors
• Consumption/nutrition

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Why Vouchers?

• Vouchers for food or seeds, may be more effective
  if there are specific goals (better nutrition or
  increased agricultural production), rather than
  being used purely to transfer income
• Women may have more control over vouchers in
  household expenditure
• Vouchers can make it harder for recipients to use
  resources antisocially
• It may be possible for vouchers to be
  self-targeting if receiving vouchers is seen as
  stigmatising

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Possible disadvantages of vouchers

• Vouchers entail costs in printing, distribution
  and redemption
• Vouchers restrict what people can get and may not
  meet their priority needs
• If people do not want the goods vouchers buy, or
  need cash for other items, a parallel market in
  vouchers may develop
• Vouchers may stigmatise recipients
• Traders may be reluctant to participate and may
  make redeeming vouchers difficult

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RC/RC Approach and Lessons Learnt

• Linkages with stakeholders
• Community ownership
• Monitoring and evaluation
• Follow up (example of findings from Ethiopia)

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Linkages with stakeholders

• Vulnerable communities, participatory
  assessment/targeting
• participatory planning, monitoring
  evaluation
• Involving local authorities
• Involving traders (depending on type of
  intervention)
• Other humanitarian agencies

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Community ownership

• Joint Planning/programming
• Empowering communities
• Good partnership

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Monitoring and evaluation

• What to look when analyzing the data
• What are people spending the cash transfer on?
• Price monitoring and contingency planning
• What impact did the cash have on beneficiaries?
• What impact did the cash have on the wider
  economy?
• Is corruption a problem?

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Follow up

• Post project/programme monitoring
• Case studies
• Dissemination/replication of best practices

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• Thanks!