Setting the scene: Different response modalities

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Description

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

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Presentation Transcript

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:
Unconditional grants
Conditional grants
Cash for work
Cash vouchers
Commodity vouchers Not in workshop:
Social assistance
Microfinance
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 When would you use each type of transfer?
Which preconditions are necessary for each?
What are their advantages and disadvantages?

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, micro-finance 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.

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 one

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 two

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 three

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? Example four

The spectrum

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

Setting the scene: Different response modalities

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