Feasibility study on a capital-based income generation scheme for ...

CASH FOR RECOVERY
Continued
Cost
effectiveness
Corruption
Co-ordination
• What are the likely costs of the
cash programme?
• What are the risks of diversion of
cash by local elites and project
staff?
• What accountability safeguards
are available to minimise these
risks?
• What other forms of assistance
are being provided or planned?
• Will cash programmes
complement or conflict with
these?
• strong analysis of the full costs of
the cash programme, including full
staff and administration costs and
how these compare to good practice
benchmarks and similar
programmes.
• assessment of existing levels of
corruption and diversion
• development of plans and
mechanisms to minimise the risks of
corruption.
• mapping of other responses through
co-ordination mechanisms.
Other key issues
There are also a series of operational questions that will have to be addressed in developing
action plans:
• what the level of cash transfer should be
• what the targeting criteria should be
• whether there should be a one-off or series of payments
• what the delivery mechanisms should be
• what types of partnerships with government and local civil society are appropriate
• how cash transfers are likely to affect children within households.
Perhaps the most difficult challenge in assessing the appropriateness of cash-based responses
will be the question of how they could be targeted. This will involve a review of current
targeting criteria and methodologies being used in relief and reconstruction assistance, with a
particular focus on current cash-based responses and the effectiveness of existing targeting.
Interviews will also be held with potential beneficiaries and key informants, to inform an
analysis of the feasibility of targeting relatively large cash amounts to the poor households.
Decisions about the appropriate level of any cash transfer, and whether it should be one-off
or a series of payments, will be informed largely by the assessment analysis outlined above
and will depend on an understanding of livelihoods and markets, but also issues around risks
of insecurity, corruption and diversion.
For Save the Children, the likely impact of cash transfers on children are naturally a
particular concern. Partly this will be addressed through analysis of what cash is likely to be
spent on (for instance, whether or not it will be used for, or free up income for, school fees
or other education expenses). Gender analysis will also help to inform questions around
decision-making power within the household. With CfW there are particular concerns about
possible negative impacts of the work requirement on child labour, but this does not apply
for grants. If appropriate, interviews or focus group discussions may be held specifically with
children to explore their views. Analysis of the impact of cash transfers on child rights and
child protection issues will be conducted. This would include both the potentially positive,
for instance greater access to education, and the potentially negative, for instance possible
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