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Guidelines for cash transfer programming - International Federation ...

Guidelines for cash transfer programming - International Federation ...

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12 International Red Cross and Red Crescent Movement Guidelines for cash transfer programming 2.2 Different forms of cash transfer There is no blueprint for cash transfer programmes. Different contexts may require different forms of cash assistance. Assessments will identify needs and priorities and whether cash transfers are appropriate for addressing those needs. Different forms of cash transfer may be adopted in response to disaster, conflict and emergency situations. Cash transfer can be: ■ Conditional or unconditional. ■ One-off or repeated payments. ■ Blanket provision or targeted to specific groups. ■ Implemented alone or in partnership with government agencies. ■ Cash grants or vouchers. Table 1. Different forms of cash-based transfer 1 Type of Description cash transfer Unconditional Unconditional cash transfers are given with no conditions as cash transfers to how the money should be used. However, it is assumed that if basic needs have been identified in the assessment, the money will be used to cover these needs; if support to livelihoods or productive activities has been identified as a need, the cash distributed will be used for this. Unconditional (and universal) cash transfers are often used immediately at the start of an emergency. Conditional Conditional cash transfers* are given on the condition cash transfers2 that recipients do something (e.g., rebuild their house, plant seeds, provide labour, establish/re-establish a livelihood). Commodity or Commodity vouchers stipulate the items (and their cash vouchers amount/weight) or services for which the recipient can exchange their voucher. Cash vouchers have a specific value and can define a service and an item or a range of items for which the voucher can be exchanged. Alternatively the voucher can allow the recipient freedom of choice as to what to purchase with their voucher. Combined vouchers (cash and commodity values) also exist. Vouchers can be exchanged in pre-selected shops, with specified traders/service providers or at specifically organized fairs. Cash for work Payment for work on community or public works (CFW) 3 programmes which will improve or rehabilitate community services or infrastructure. Wages should cover basic needs, but be slightly below market levels to avoid competing with the labour market. Social assistance Repeated, unconditional, predictable cash transfers provided transfers to longer-term vulnerable or destitute households* or specific individuals (e.g., the elderly, pregnant women). These are preferably implemented in conjunction with government agencies and with requisite political support. 1 Cash can be given in currency or in voucher form. For the purpose of these guidelines, vouchers will be treated as a separate form of cash transfer as voucher programmes have certain unique characteristics and implementation requirements.

Guidelines for cash transfer programming What is cash Implementing cash programmes transfer programming? A.2 Other forms of cash transfer programming, such as microfinance* and conditional cash transfers linked to the provision of services (e.g., health and education), are not covered in these guidelines. It is, however, important to link with any ongoing initiatives of this sort and ensure that newly implemented cash transfer programmes do not compete with or undermine such schemes. 2.3 When are cash transfer programmes appropriate? Cash transfer programming can be undertaken in a number of different contexts and in response to a range of needs, as indicated in Table 2. Table 2. Cash transfer programmes in different situations When Why Pre-disaster In preparation for a predictable shock or as part of a disaster risk reduction programme. Initial stages To meet immediate, essential food, non-food and income of a disaster needs and/or protect/re-establish livelihoods and provide shelter. Recovery or To help re-establish/support livelihoods and/or provide transition period shelter or short-term labour opportunities for the benefit of the community. In permanent/ To contribute to poverty alleviation, shift from humanitarian chronic crises programming to social assistance, address essential food and non-food needs and support/establish livelihoods. During conflict To meet immediate needs and contribute to livelihoods support or establishment. As can be seen from Figure 2, the Movement has implemented a broad range of cash transfer programmes to meet relief and recovery needs in a number of different situations. 2 Both the British Red Cross and the International Federation have implemented this type of cash transfer for livelihood/shelter in, respectively, Aceh and Yogyakarta, Indonesia. In some contexts, governments provide conditional cash transfers in order to increase targeted groups’ access to services such as health and education. This is particularly common in Latin America. 3 Cash for work can be considered as a form of conditional cash transfer. However, for the purposes of these guidelines, it will be treated as a separate form of cash transfer. 13

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