36 DRC / DANISH REFUGEE COUNCILTable 4: Organisations implementing Cash-based initiatives in AfghanistanOrganizationCashchosenmodalityACF CFW andconditional cashgrants for thosewho cannot workDFID Mobile cashtransfer (throughImplementingNGOs: ACTED,Afghan Aid, andAction Aid)PIN CFW andconditional cashgrants for thosewho cannot workBeneficiaryselectionCDCsHouseholdsurveyMarketstudyCDCsHouseholdSurveyCDCs byusingFGDsSurveysand marketanalysisType of beneficiariesWomen,affectedvulnerabledisasterfamilies,Farmers and disasteraffected families(drought)Disaster affectedfamilies;Vulnerable families;those who cannotworkCahsdistributionmodalityHawalasystemM PAISAHawalasystemAreas ofworkRuralRural/urbanRuralGTZ CFW and CDCsconditional for Surveythose who cannotwork andunconditional cashto disaster affectedfamiliesWHH CFW ThroughcamprepresentativesNRC Cash for Shelter Survey,fieldassessmenVulnerable householdsaffected by <strong>the</strong>drought; skilled andunskilled labourersCamp residents in KISReturnees and IDPsand vulnerablehouseholdsDirectcashtransferDirectcashtransfertWFP Voucher Widows and disabled VoucherthroughKabulBankUSAID Mobile CashTransferCDCsSurveyWidows and disabled,with a probableextensionTransferthroughAIBRuralKISRural/urbanUrbanUrban with afocus on <strong>the</strong>best-offExamples of cash-based approaches in Afghanistan underline this type of approach remains possiblein <strong>the</strong> Afghan context. Focus of assistance, however, remains mainly rural – a paradoxical situationgiven <strong>the</strong> higher potential access to functioning markets and services optimizing <strong>the</strong> use of cashgrants in urban areas. WHH’s experience in <strong>the</strong> KIS, however, highlighted specific challenges inKabul Informal Settlements. This emphasizes <strong>the</strong> importance of an accurate assessment ofconditions for <strong>the</strong> implementation of cash-based approaches in <strong>the</strong> KIS. The following sections sheda specific light on: 2 variables (access to market and security) as well as 3 challenges (politicalacceptability, access to basic services, and artificial in-migration) that should be cautiously weightedand considered while designing a cash-based initiative in <strong>the</strong> Kabul informal settlements.
CASH PROGRAMME REVIEW FOR IDPs IN KABUL INFORMAL SETTLEMENTS 371. Conditions for <strong>the</strong> implementation of cash-based programming in <strong>the</strong> KISThe effectiveness of cash approach is determined by access of recipients of cash transfers tofunctional markets and <strong>the</strong> security of <strong>the</strong> environment, crucial in mitigating risks of tensions due toinjections of cash in a community, and for <strong>the</strong> protection of agency staff. This section seeks toanswer a simple feasibility question: under which conditions can cash assistance work in <strong>the</strong> Kabulinformal settlements?This study includes a first assessment of <strong>the</strong> market and general conditions in <strong>the</strong> 8 surveyed campsthat will need to be corroborated by an exhaustive assessment of conditions for each camp,including multiple indicators. Pre-conditions for <strong>the</strong> implementation of cash-based assistance in adetermined area include:(i)(ii)Conducive market conditions to ensure cash distribution will not have adverse effects on <strong>the</strong>local economy and beneficiaries can purchase items from markets without engaging intohigher costs,Conducive security conditions ensuring cash will not be misappropriated by power-brokersin <strong>the</strong> community, that beneficiaries will not be put in danger due to cash distribution, andthat <strong>the</strong> cash distribution can be done in safe conditions.As is developed in this section, KIS benefit from a favourable access to markets due to <strong>the</strong>ir urbanlocation. Risks of inflation and supply are mainly concentrated during <strong>the</strong> winter season, calling for aseasonal adaptation of forms of assistance.Market conditions: In order to assess <strong>the</strong> market conditions in <strong>the</strong> selected camps, site visits andinterviews with local traders in five market places in Bagh Qazi, Bagrami and Qalacha wereconducted by <strong>the</strong> research team 34 . Indicators included:Market access: Of <strong>the</strong> eight sites, Bagh-e Dawood is <strong>the</strong> camp with <strong>the</strong> least favourablelocation, fifteen minutes away by car of Pol-e Company in West Kabul. In o<strong>the</strong>r camps, <strong>the</strong>issue is less one of access than of availability of products based on trader’s ability to supply.Seasonality appears central in looking at potential inflationary effects of cash-basedprograms. The problem of supply for food and fuel on <strong>the</strong> Kabul market remains a concern in<strong>the</strong> winter. This is significant as <strong>the</strong>y were <strong>report</strong>ed to be top priorities by respondents to<strong>the</strong> survey, with food representing 64% of <strong>the</strong>ir overall spending and fuel 14%, and are also<strong>the</strong> items <strong>report</strong>ed as <strong>the</strong> most needed.Traders’ supply capacity: Capacity of local traders to supply markets in Kabul impact prices,with inflation when <strong>the</strong>y are unable to meet <strong>the</strong> demand. Afghanistan is import dependentand relies mainly on neighbouring countries to satisfy its food and fuel needs, Pakistan beingits major import partner, with an estimated 877.75 million USD value of imports in 2011-12 35 .Traders’ capacity to supply markets in Kabul is influenced by seasonal factors:- Summer: During <strong>the</strong> warm season, <strong>the</strong>y face little limitations in supply due toaffluence of food items (wheat, wheat flour, rice, sugarcane, etc) in supplyingcountries. Unless unpredictable external shocks affect importations, such asinternational tensions, adverse impacts of drought on <strong>the</strong> agriculture, or a sudden34 These include :1. Rahim Khosti Market, Bagh Qazi, Kabul (Traders & wholesalers: Food)2. 30 meter road, Bagh Qazi, Kabul (Traders : Food)3. Mandawi ard (flour) Bagrami, Bagrami market, Kabul (Trader, Wholesalers & Retailers: Food and Fuel)4. Sarai Haji Gulbuddin, Qalacha, Kabul. (Traders & Wholesalers: Firewood)5. Sarai Mahsel Jan, Qalacha, Kabul (Wholesalers: Firewood)35 (Statistical yearbook, 2011 – 12, CSO).