Eidgenössisches Departement für auswärtige Angelegenheiten EDA Direktion für Entwicklung und Zusammenarbeit DEZA-HH – André Dürr - 02. 09. 2014 Cash Introduction Federal Department of Foreign Affairs FDFA Swiss Agency for Development and Cooperation SDC :
Definition n Cash Transfer Programming (CTP) = Cash Transfers = cashbased assistance = Cash & Voucher n CTP is a transfer modality, not a project itself Cash Introduction| André Dürr 2
Exercise n Cash for Rent (cash paid to beneficiaries so that they can cover or partially cover rental expenses) §Unconditional / conditional? §Restricted / unrestricted? n Cash for Hosting (cash paid people who host refugee / IDP communities as an incentive and to cover additional expenses) §Unconditional / conditional? §Restricted / unrestricted? n Voucher for work (food voucher given to beneficiaries who provide their labour to rehabilitate a school) §Unconditional / conditional? §Restricted / unrestricted? Cash Introduction| André Dürr 3
Advantages & Preconditions Advantages of CTP as compared to in-kind assistance: n Allows recipients to address their own needs as they see fit (they know best!) more dignified and usually preferred by beneficiaries n Same transfer can address multiple needs (multi-sector) n Links with recovery, resilience, poverty reduction n Often more cost efficient than in-kind (but not always) n Market-based: support to local trade and economic recovery Preconditions for CTP: n Market: availability of required goods or services in the local market; accessibility for beneficiaries n Acceptable level of inflation. Why? n Reliable transfer mechanism. Why? n Buy-in from local authorities n Security? Cash Introduction| André Dürr 4
Modality selection n What modality (in-kind, cash, voucher) is the most suitable depends on the local context!!! n To be considered: § Are preconditions met? § Cost effectiveness (cost to reach outcomes) § Cost efficiency (cost to reach outputs) § Beneficiary preference, culture appropriateness § Buy-in from local authorities § Gender and protection considerations Cash Introduction| André Dürr 5