Setting the scene:
Different response modalities to
deliver aid in times of crisis
Session outcomes
By the end of the session, participants will be able
to:
• Have shared understanding of key CTP concepts
and modalities
• Demonstrate a shared understanding of cash
transfer programming (CTP) and in-kind
terminology
Concepts and
terminology
What is cash transfer programming?
“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 livelihoods.”
IFRC and ICRC
Guidelines for cash transfer programming
(CaLP CTP Level I Training)
What is cash transfer programming?
‘Cash interventions transfer resources to
people by giving them cash or vouchers’
(ODI Good Practice Review)
Unconditional cash grant
• No demands on beneficiaries and assumes that
beneficiaries will use cash to obtain targeted need
• People are given money as a direct grant with no
conditions on use, and without conditions on actions that
have to be performed to ‘earn the cash’ (e.g. No work or
behavioural requirements). There is no requirement
to repay any money, and people are entitled to use the
money however they wish.
(CalP, adapted from ODI)
Conditional cash grant
• Based on requirement on beneficiaries
• The agency puts conditions on how the cash is
spent, for instance stipulating that it must be
used to pay for the reconstruction of the
family home. Alternatively, cash might be given
after recipients have met a condition, such as
enrolling children in school or having them
vaccinated.
(ODI, GPR)
Conditional cash grant
• A cash transfer conditional upon the beneficiary
– (a) providing a service of some kind (e.g work)
– or (b) using a service, (e.g. Attending a school or
health clinic;
– or (c) spending the transfer on an agreed commodity
or type of commodity.
• Conditions are
– qualifying conditions
– or use conditions.
Cash for work
• Payment (in cash or vouchers) is provided as a
wage for work, usually in public or community
programmes.
• These may or may not result in the creation of
individual, public or community assets.
• Cash grant with the condition of work.
• Cash for assets (e.g. Irrigation systems): sub-set of
CFW.
Vouchers
• Paper or electronic entitlements which can be exchanged with
specified retailers / retail outlets or service centres for a range
of good or services.
(Calp)
• A voucher is a paper, token or electronic card that can be
exchanged for a set quantity or value of goods, denominated
either as a cash value (e.g. $15) or as predetermined
commodities or services (e.g. 5kg of maize; milling of 5kg of
maize). Vouchers are redeemable with preselected vendors
or at ‘voucher fairs’ set up by the implementing agency.
(ODI)
Voucher transfer modalities
Commodity vouchers
• Exchangeable for a fixed
quantity of goods and / or
services
Cash vouchers
• Exchangeable for the
equivalent cash value
with a choice of specified
items
Vouchers include a restriction: by specifying items or services and linking
them to service providers or retailers.
Conditionality can also apply to vouchers.
What is in kind programming?
• Distribution made in the form of stock rather
than cash
In kind modalities
• Food items
– Food for work / food for
training / food for ….
– General food distribution
– Targeted food distribution
– Cereal banks
• Non-food items
(hygiene and sanitation,
shelter…)
Internationally procured,
nationally or regionally
procured.
Cash transfer modalities
In workshop:
Not in workshop:
• Unconditional grants
• Social assistance
• Conditional grants
• Microfinance
• Cash for work
• Cash vouchers
• Commodity vouchers
– Loans
– Savings
– Insurance
Session outcomes
By the end of the session, participants will be able
to:
• Be clear about the perceived benefits of CTP.
• Understand that all modalities can be used in
most contexts across programme cycle
• Understand use, preconditions, advantages and
disadvantages of each response modality
• Understand importance of needs and market
assessment in determining most appropriate
response modality selected
Activity: Comparative analysis
1. When would you use each type of transfer?
2. Which preconditions are necessary for each?
3. What are their advantages and disadvantages?
Cash
for work
When to use
Preconditions
Advantages
Disadvantages
Unconditional grants
Vouchers
In-kind
Why cash transfers?
• Empowerment and dignity (transfer of power)
• Flexibility and choice (time, content...)
• Reduced cost to beneficiaries (transport, etc..)
• Do no harm to markets & Multiplier effects
• Supports or revitalises local trade & economy
• Supports longer economic recovery
• Links relief with recovery
• Cost efficient for agencies and participants
Why in kind distributions?
• People’s preference
• Ensure that people get what they need (in
quality and quantity)
• Not available in country or region (in quality
or quantity)
• Cost efficient for agencies and participants
• Cash not available or of very instable value
• More secure
• Stabilise prices (by making available)
CTP preconditions
• Functioning markets
• Availability of products: supply and re-supply of goods
• Sellers with resources
• Trader willingness and capacity
• Cash based economy
• Purchasing power
• Social access to markets
• Physical access to markets
• Political acceptance
• Community agreement
• Reasonable and fairly stable prices
• Reliable payment system
In kind preconditions
• Non functioning markets or highly disrupted
markets
• Non availability of products
• Non physical access to markets
• Non social access to markets
• Political acceptance
• Community agreement
• Distribution and transport capacity
• Reliable distribution system
CTP sector experience
•
•
•
•
•
•
•
WASH
Shelter
Health, nutrition
Livelihoods
Livestock
Education
Protection
Examples of integrated CTP?
Is it different than in-kind?
Activity: the Cash Game
• We are now going to play a game of Precondition ‘agree
or disagree’ in groups.
• This is from the 48 hour tool.
• Each group will be given some cards – on each card
there is a statement about EFSL programmes and
preconditions
• The group members take it in turns to pick up a card
and reads it out to the other members
• The group then decide if they agree or disagree with
what the card says
• Then the next person takes the next card and so on…
To cash or not to cash
To identify contextually appropriate responses to
meet needs, we must consider:
• When ‘to cash or not to cash’?
• Or a combination of cash and in-kind modalities?
• Sectoral objectives and operational roles
• Real costs of cash versus in-kind responses
• Possible delivery methods for each modality
• Advantages and disadvantages of each modality
• Support needs and roles in each modality
Remember…
Like any other commodity,
providing cash or vouchers is not
a programme in itself…
Cash/vouchers are a modality
for addressing needs and
achieving objectives.
Session outcomes
By the end of the session, participants will be able to:
• Recap the different possible delivery agents,
mechanisms and instruments in CTP programming
• Understand that the ‘best’ way to deliver CTP is
context specific
• Understand that the use of vouchers does not
equate to CTP.
• Understand that vouchers can be commodity or
cash vouchers
• Understand that vouchers can be transfer of
purchasing power (cash) or act as the delivery
instruments in an in kind response.
Cash delivery structure
•
The delivery agent: who delivers the cash
– Governments, aid agencies, banks, post offices, mobile phone companies, microfinance companies, security companies, local traders and remittance officers.
•
The delivery mechanisms: how the cash is delivered
– direct delivery (cash in envelopes),
– Financial service providers (banks, post offices, micro-finance institutions,
remittance companies...)
– Retailers / traders
– mobile phones.
•
Delivery instrument: by what means by which the beneficiary accesses the money
– Direct delivery, mobiles, cheque, electronic transfer, point of sale, paper token /
voucher, mobile banking, debit/smart cards, ATMs, remittances
•
There is no ‘best’ way to deliver cash transfers. Whether it makes sense to give people
money in envelopes, open bank accounts for them or use mobile banking approaches
depends on a context-specific analysis of the options available in each crisis.
Vouchers – a closer look
There has been a variety of ways that vouchers
have been used in responses. Just using a voucher
in programme design does not necessarily mean
that you are actually implementing a CTP.
A voucher can be a modality and an instrument.
Example one
An agency decides to distribute vouchers for a
specific ration. But this ration, and all means
of delivery of this ration are still managed and
‘owned’ by the agency.
What kind of response is this?
Example two
An agency delivers rations that are accessed
when exchanged for a voucher. An agency
distributes unconditional cash vouchers
(equivalent of £15) to beneficiaries as a token
for cash, or exchange for cash at a bank.
What kind of response is this?
Example three
An agency distributes a commodity voucher
for specific items. This voucher is not
inflationary nor attached to price....so it could
be thought of as in kind. However, it is not the
agency who owns the whole process. Traders
are being used and cash is getting into the
market system.
What kind of response is this?
Example four
An agency distributes a voucher for an
equivalent cash value, with certain specified
conditions. These conditions may be either on
the choice of shop, or the range of items.
What kind of response is this?
The spectrum
Vouchers as delivery
mechanism, but in
kind response
Conditional Conditional
commodity cash voucher
voucher
In kind
Voucher as instrument
Agency owned
High level of
conditionality
Unconditional
cash voucher
CTP
Voucher as modality
Beneficiary choice
Lower level or no
conditionality
Main CTP recap messages
•
2 direct transfer modalities: cash and in-kind
•
CTP is increasingly common across a range of
contexts and sectors.
•
Cash, in-kind, or combined responses will be based
on assessment and analysis.
•
Modalities and delivery options are guided by
context and objectives.
•
Finance, logistics, HR, and programme collaboration
reduces response time and increases effectiveness.
•
Vouchers do not necessarily mean a CTP