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Introduction activity

Learn about cash transfer programming in humanitarian contexts, types of cash transfer modalities, principles, and reasons for using cash interventions. Understand when and how to use cash transfers effectively.

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Introduction activity

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  1. Introduction activity If we are all poor, Who is the poorest?

  2. Welcome to the orientationofCash Transfer Programming March 31, 2016

  3. An introduction to cash transfer programming in emergencies

  4. Objectives • Describe the rationale for cash transfer programming in a humanitarian context • Understand different types of cash transfer programming and potential outcomes • Describe guiding principles in the design and implementation of CTP

  5. Agree – Disagree Exercise

  6. What is cash transfer? “Cash transfer programming in emergencies is one form of humanitarian response which can be used to address basic needs and/or protect, establish or re-establish community asset or livelihoods.” IFRC and ICRC Guidelines for cash transfer programming

  7. Why cash transfers? Humanitarian reasons • Empowerment and dignity • Choice and flexibility • Power transfer • Links response to recovery

  8. Why cash transfers? Pragmatic reasons • Cost efficient • Multiplier effects • Support to local trade linked to economic recovery • Fewer costs for recipients

  9. RESPONSE THRU CASH Goods Raw materials Beneficiaries CASH ELIMINATED Production Transport Warehousing

  10. Types of cash transfer modalities (by category) • UNCONDITIONAL CASH TRANSFER (UCT) • - cash is given without the need to work or attend an • activity; • - Cash usage is either restricted or not; • - cash is given to targeted household either thru set of • criteria or blanket distribution. • CONDITIONAL CASH TRANSFER (CCT) • - cash is given with condition to participate a work or • activity; • - cash usage is either restricted or not; • - beneficiaries will met set of criteria

  11. Types of cash transfer modalities • Cash for work • Cash for training (skill development) • Cash vouchers

  12. Cash for work • Cash for work is the payment of cash wages in exchange for work that is done on public works schemes to rehabilitate community assets or those that might obstruct • or pose danger to life. We use CRA as the approach to identify CFW project. Objectives: • Increase people’s purchasing power • Create or rehabilitate community assets

  13. Cash grants • Cash grants are a provision of money to targeted households, can be conditional or unconditional Objectives: • To meet basic needs or to purchase livelihood assets • To repay debts, purchase non-food items and stimulate the economy

  14. Cash vouchers A voucher intervention aims to: facilitate access to a specified range of commodities or services. There are two types of vouchers: • Cash vouchers • Commodity vouchers Note: this can be either thru paper voucher or electronic voucher

  15. When to use cash transfer? Pre disaster Initial stages of a disaster Recovery or transition period In chronic crises During conflict

  16. When to use CTP? Relief links to development Humanitarian Response and Early Recovery Sustainable Development Preparedness Disaster

  17. Appropriate conditions for CTP • Functioning markets • Availability of products • Traders willing and able to participate • Physical access to shops/markets • Functional and reliable payment system • Political acceptance • Community awareness and agreement • Reliable recipient identification system

  18. Principles of cash transfer Food insecure or poorest targeted Physically vulnerable targeted ‘Ownership’ by the community Gender sensitivity Fair and equitable pay Livelihoods not undermined

  19. Risks Anti-social use of cash Security risks for staff or beneficiaries Theft or looting Inflation Diversion by authorities, elites, factions Gender bias

  20. Key reasons to use cash interventions Because livelihood insecurity is often due to people’s inability to access local food and other items, rather than unavailability of items Beneficiaries have very different priorities Cash helps people take responsibility for their own recovery Often the most effective and cost effective way of delivering assistance

  21. Note!! As with the provision of any commodity, the provision of cash in an emergency is not a strategy in itself, but a tool for addressing needs.

  22. Mechanisms of Cash Transfer • Manual distribution • Financial Service Providers • Remittance Centers • Banks • E-payments • Debit cards / ATM Cards • Mobile Phone Transfers • Prepaid cards

  23. Terminologies CTP – Cash Transfer Program CBP – Cash Based Program CFW – Cash For Work CFT – Cash For Training UCT – Unconditional Cash Transfer CCT – Conditional Cash Transfer FSP – Financial Service Provider Merchants – Wholesaler / retailer of goods

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