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Cash and Voucher Assistance

Cash and Voucher Assistance (CVA) is an umbrella term for humanitarian aid programs that provide cash, or vouchers exchangeable for goods and services, directly to recipients. CVA represents an increasingly significant modality or tool in providing aid, responding to a number of factors including movement from a charity-based to a rights-based approach to aid; the increased need for cost efficiency responding to downwards trends in aid funding; and a realisation of the cost effectiveness of CVA in comparison with prior approaches.

Recipient of an aid voucher exchangable for seeds and fertilizer in Sindh, southern Pakistan, 2011

According to The Cash Learning Partnership (CaLP), in 2019 CVA provided the mechanism by which US $5.6 billion of aid was distributed, amounting to 17.9% of total international humanitarian assistance expenditure that year.[1]

History

 
Aid vouchers being issued to Syrian refugees in Jordan, 2013

The provision of aid by the transfer of cash or cash-substitutes is not novel, and can be traced back to at least 100BCE. Conditional Cash Transfers (CCT) have existed within western countries since at least the 17th century, such as the English Poor Laws.[2] However in international humanitarian aid, the traditional approach to emergency relief has tended to be the provision of in-kind assistance.[3]

Hanlon et al document a paradigm shift from the early 2000s, away from paternalistic attitudes to aid giving characterised by concerns about regulation and 'good governance', towards direct funding in cash of aid recipients.[4] As with a growth of state-funded CCT in the Global South,[5][6] the evidence is suggestive of the efficacy of cash transfers to the poor, and the case for such transfers is compelling.[7]

In 2012, Florika Fink-Hooijer introduced cash-based aid as well as gender and age sensitive aid as part of the European Commission's Directorate-General for European Civil Protection and Humanitarian Aid Operations.[8][9]

The 2016 World Humanitarian Summit inaugurated a 'Grand Bargain' between aid funders and humanitarian organisations, committing to "get more means into the hands of people in need";[10] the third workstream of the bargain, led by the UK and the World Food Program is concerned with increasing the use and coordination of cash-based programming.[11] The UN Secretary-General called for cash to be the default method of support for crisis-affected people where the situation allows.[12]

In 2020, CaLP, a nonprofit membership organization concerned with capacity building in humanitarian cash and voucher assistance, has issued two 'state of CVA' reports, most recently in 2020. They document that the value of CVA has grown from US$2B in 2015, representing 7.9% of development aid, to US$5.6B in 2019 representing 17.9% of aid.[13] CVA is identified by funders such as the United States Department of State and Caritas Internationalis as an effective, efficient, and appropriate method of aid;[14][12] Plan International has committed to asking "why not cash?" in the design of its humanitarian responses.[15] The UN World Food Programme, the world's largest humanitarian agency, disbursed US$3.3B in 2020 via CVA – 37% of its total assistance.[15] The Council of the European Union in 2015 endorsed the use of cash transfers, finding "significant scope for increasing the use of multi-purpose cash-based assistance in humanitarian responses, depending on the context".[16] The European Union, through its Directorate-General for European Civil Protection and Humanitarian Aid Operations committed to deliver 35% of humanitarian assistance in the form of cash transfers under the Grand Bargain, and has achieved an increase from 24% of the total budget in 2016 to 34% in 2019 and 2020.[17]

In 2021, technology providers, such as through the GSMA Mobile for Humanitarian Innovation programme, have responded to the opportunity of CVA by developing partnerships with providers, and by working with the wider aid community to promulgate CVA knowledge and solutions.[18]

Overview

 
Aid voucher issued in 2011 after 2010 flooding in Pakistan

Cash and Voucher Assistance is an umbrella term for a range of aid activities characterised by the transfer of cash, cash-equivalent or goods and services equivalent resources directly to aid recipients.[19] CVA has also been called, variously, Cash Based Intervention (CBI), Cash Based Assistance (CBA) and Cash Transfer Programming (CTP).

Plan International identify a number of forms of CVA including:[20]

  • cash transfers, designed to meet specific needs, but unrestricted in terms of their use - can be conditional or unconditional[21]
  • multi-purpose cash transfers, designed for cover some or all of a range of household needs
  • value vouchers, exchangeable for goods or services to an indicated value
  • commodity vouchers, exchangeable for specified goods or services
  • cash for work, a conditional form of CVA requiring the recipient to perform work
  • cash for training, requiring the recipient to undertake training

Benefits and advantages of CVA are identified as including:[22]

  • choice, dignity and flexibility - enables recipients to prioritise their own spending preferences
  • safety - cash can be distributed electronically, obviating the need for recipients to travel to receive aid
  • cost efficiency - cash can be distributed at a lower cost than goods and services
  • cost effectiveness - CVA can achieve better outputs and outcomes than in-kind aid
  • fostering economic recovery and support - CVA supports the development of sustainable local markets
  • financial empowerment - CVA can leverage access to additional finance resources such as seed capital
  • social protection - CSV can work within wider safety-nets to provide long-term support for vulnerable groups

Mechanisms for CVA include the distribution of cash in-hand; the use of a range of e-cash technologies including mobile-phone based money (mobile money), e-wallets, pre-paid debit cards, or access to money via ATM machines; and the distribution of paper or e-vouchers exchangeable for goods and services.[23]

References

  1. ^ Vidal et al. 2020, p. 9.
  2. ^ Alderman, Gentilini & Yemtsov 2018, p. 1.
  3. ^ Garcia, Marito; Moore, Charity M. T. (2012). The Cash Dividend: The Rise of Cash Transfer Programs in Sub-Saharan Africa. The World Bank. p. 2. ISBN 9780821388983.
  4. ^ Hanlon, Barrientos & Hulme 2012, p. 8-12.
  5. ^ Hanlon, Barrientos & Hulme 2012, p. 3-5.
  6. ^ Hanlon, Barrientos & Hulme 2012, p. 19-21.
  7. ^ Hanlon, Barrientos & Hulme 2012, p. 10.
  8. ^ Boin, Arjen; Ekengren, Magnus; Rhinard, Mark (2013), "The EU as crisis manager", The European Union as Crisis Manager, Cambridge: Cambridge University Press, pp. 1–20, doi:10.1017/cbo9781139565400.002, ISBN 978-1-139-56540-0, retrieved 2021-05-27
  9. ^ Fink-Hooijer, Florika (2014-01-01). "7 The EU's Competence in the Field of Civil Protection (Article 196, Paragraph 1, a–c TFEU)". EU Management of Global Emergencies: 137–145. doi:10.1163/9789004268333_009.
  10. ^ "About The Grand Bargain". Inter-Agency Standing Committee. Retrieved 14 May 2021.
  11. ^ "Increase the use and coordination of cash-based programming". Inter-Agency Standing Committee. Retrieved 14 May 2021.
  12. ^ a b "Cash Transfer Programming" (PDF). Caritas Internationalis. June 2018.
  13. ^ Vidal et al. 2020, p. 12.
  14. ^ "Cash and Voucher Assistance". United States Department of State. Retrieved 14 May 2021.
  15. ^ a b Balmer, Alam & Koirala 2021, p. 7.
  16. ^ "Outcome of Proceedings 10184/15". Council of the European Union. 22 June 2015.
  17. ^ "Cash Transfers". Europa.eu. Directorate-General for European Civil Protection and Humanitarian Aid Operations. 1 March 2021.
  18. ^ "Mobilising cash and Voucher assistance programmes: the case for mobile money" (PDF). GSMA. Retrieved 14 May 2021.
  19. ^ Balmer, Alam & Koirala 2021, p. 6.
  20. ^ Balmer, Alam & Koirala 2021, p. 11-12.
  21. ^ Pega, Frank; Pabayo, Roman; Benny, Claire; Lee, Eun-Young; Lhachimi, Stefan; Liu, Sze (2022). "Unconditional cash transfers for reducing poverty and vulnerabilities: effect on use of health services and health outcomes in low- and middle-income countries". Cochrane Database of Systematic Reviews. 2022 (3): CD011135. doi:10.1002/14651858.CD011135.pub3. PMC 8962215. PMID 35348196.
  22. ^ Balmer, Alam & Koirala 2021, p. 8.
  23. ^ Balmer, Alam & Koirala 2021, p. 13.

Sources

  • Vidal, José Jódar; Kondakhchyan, Anna; McCormack, Ruth; Peachey, Karen; Phelps, Laura; Smith, Gaby (2020). "The State of the World's Cash 2020". The Cash Learning Partnership.
  • Balmer, Laura; Alam, Syed Mohammed Aftab; Koirala, Binod (May 2021). "Cash and Voucher Assistance (CVA) Programming" (PDF). Plan International.
  • Alderman, Harold; Gentilini, Ugo; Yemtsov, Ruslan (2018). "The Evolution of Food as Social Assistance". The 1.5 Billion People Question. World Bank Group. ISBN 9781464810886.
  • Hanlon, Joseph; Barrientos, Armando; Hulme, David (2012). Just Give Money To The Poor. Kumarian Press. ISBN 9781565493902.

External links

  • CaLP - The Cash Learning Partnership - non-profit membership organisation providing a network for organisations involved in policy, practice and research in humanitarian cash and voucher assistance.
  • Is Cash Transfer Programming 'Fit for the Future'? - January 2014 report by the Humanitarian Futures Programme, King's College London, examining how changes in the broader global and humanitarian landscape may evolve, influence and shape CTP's future progression.

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For similar terms see Cash assistance Cash and Voucher Assistance CVA is an umbrella term for humanitarian aid programs that provide cash or vouchers exchangeable for goods and services directly to recipients CVA represents an increasingly significant modality or tool in providing aid responding to a number of factors including movement from a charity based to a rights based approach to aid the increased need for cost efficiency responding to downwards trends in aid funding and a realisation of the cost effectiveness of CVA in comparison with prior approaches Recipient of an aid voucher exchangable for seeds and fertilizer in Sindh southern Pakistan 2011 According to The Cash Learning Partnership CaLP in 2019 CVA provided the mechanism by which US 5 6 billion of aid was distributed amounting to 17 9 of total international humanitarian assistance expenditure that year 1 Contents 1 History 2 Overview 3 References 3 1 Sources 4 External linksHistory Edit Aid vouchers being issued to Syrian refugees in Jordan 2013 The provision of aid by the transfer of cash or cash substitutes is not novel and can be traced back to at least 100BCE Conditional Cash Transfers CCT have existed within western countries since at least the 17th century such as the English Poor Laws 2 However in international humanitarian aid the traditional approach to emergency relief has tended to be the provision of in kind assistance 3 Hanlon et al document a paradigm shift from the early 2000s away from paternalistic attitudes to aid giving characterised by concerns about regulation and good governance towards direct funding in cash of aid recipients 4 As with a growth of state funded CCT in the Global South 5 6 the evidence is suggestive of the efficacy of cash transfers to the poor and the case for such transfers is compelling 7 In 2012 Florika Fink Hooijer introduced cash based aid as well as gender and age sensitive aid as part of the European Commission s Directorate General for European Civil Protection and Humanitarian Aid Operations 8 9 The 2016 World Humanitarian Summit inaugurated a Grand Bargain between aid funders and humanitarian organisations committing to get more means into the hands of people in need 10 the third workstream of the bargain led by the UK and the World Food Program is concerned with increasing the use and coordination of cash based programming 11 The UN Secretary General called for cash to be the default method of support for crisis affected people where the situation allows 12 In 2020 CaLP a nonprofit membership organization concerned with capacity building in humanitarian cash and voucher assistance has issued two state of CVA reports most recently in 2020 They document that the value of CVA has grown from US 2B in 2015 representing 7 9 of development aid to US 5 6B in 2019 representing 17 9 of aid 13 CVA is identified by funders such as the United States Department of State and Caritas Internationalis as an effective efficient and appropriate method of aid 14 12 Plan International has committed to asking why not cash in the design of its humanitarian responses 15 The UN World Food Programme the world s largest humanitarian agency disbursed US 3 3B in 2020 via CVA 37 of its total assistance 15 The Council of the European Union in 2015 endorsed the use of cash transfers finding significant scope for increasing the use of multi purpose cash based assistance in humanitarian responses depending on the context 16 The European Union through its Directorate General for European Civil Protection and Humanitarian Aid Operations committed to deliver 35 of humanitarian assistance in the form of cash transfers under the Grand Bargain and has achieved an increase from 24 of the total budget in 2016 to 34 in 2019 and 2020 17 In 2021 technology providers such as through the GSMA Mobile for Humanitarian Innovation programme have responded to the opportunity of CVA by developing partnerships with providers and by working with the wider aid community to promulgate CVA knowledge and solutions 18 Overview Edit Aid voucher issued in 2011 after 2010 flooding in Pakistan Cash and Voucher Assistance is an umbrella term for a range of aid activities characterised by the transfer of cash cash equivalent or goods and services equivalent resources directly to aid recipients 19 CVA has also been called variously Cash Based Intervention CBI Cash Based Assistance CBA and Cash Transfer Programming CTP Plan International identify a number of forms of CVA including 20 cash transfers designed to meet specific needs but unrestricted in terms of their use can be conditional or unconditional 21 multi purpose cash transfers designed for cover some or all of a range of household needs value vouchers exchangeable for goods or services to an indicated value commodity vouchers exchangeable for specified goods or services cash for work a conditional form of CVA requiring the recipient to perform work cash for training requiring the recipient to undertake trainingBenefits and advantages of CVA are identified as including 22 choice dignity and flexibility enables recipients to prioritise their own spending preferences safety cash can be distributed electronically obviating the need for recipients to travel to receive aid cost efficiency cash can be distributed at a lower cost than goods and services cost effectiveness CVA can achieve better outputs and outcomes than in kind aid fostering economic recovery and support CVA supports the development of sustainable local markets financial empowerment CVA can leverage access to additional finance resources such as seed capital social protection CSV can work within wider safety nets to provide long term support for vulnerable groupsMechanisms for CVA include the distribution of cash in hand the use of a range of e cash technologies including mobile phone based money mobile money e wallets pre paid debit cards or access to money via ATM machines and the distribution of paper or e vouchers exchangeable for goods and services 23 References Edit Vidal et al 2020 p 9 Alderman Gentilini amp Yemtsov 2018 p 1 Garcia Marito Moore Charity M T 2012 The Cash Dividend The Rise of Cash Transfer Programs in Sub Saharan Africa The World Bank p 2 ISBN 9780821388983 Hanlon Barrientos amp Hulme 2012 p 8 12 Hanlon Barrientos amp Hulme 2012 p 3 5 Hanlon Barrientos amp Hulme 2012 p 19 21 Hanlon Barrientos amp Hulme 2012 p 10 Boin Arjen Ekengren Magnus Rhinard Mark 2013 The EU as crisis manager The European Union as Crisis Manager Cambridge Cambridge University Press pp 1 20 doi 10 1017 cbo9781139565400 002 ISBN 978 1 139 56540 0 retrieved 2021 05 27 Fink Hooijer Florika 2014 01 01 7 The EU s Competence in the Field of Civil Protection Article 196 Paragraph 1 a c TFEU EU Management of Global Emergencies 137 145 doi 10 1163 9789004268333 009 About The Grand Bargain Inter Agency Standing Committee Retrieved 14 May 2021 Increase the use and coordination of cash based programming Inter Agency Standing Committee Retrieved 14 May 2021 a b Cash Transfer Programming PDF Caritas Internationalis June 2018 Vidal et al 2020 p 12 Cash and Voucher Assistance United States Department of State Retrieved 14 May 2021 a b Balmer Alam amp Koirala 2021 p 7 Outcome of Proceedings 10184 15 Council of the European Union 22 June 2015 Cash Transfers Europa eu Directorate General for European Civil Protection and Humanitarian Aid Operations 1 March 2021 Mobilising cash and Voucher assistance programmes the case for mobile money PDF GSMA Retrieved 14 May 2021 Balmer Alam amp Koirala 2021 p 6 Balmer Alam amp Koirala 2021 p 11 12 Pega Frank Pabayo Roman Benny Claire Lee Eun Young Lhachimi Stefan Liu Sze 2022 Unconditional cash transfers for reducing poverty and vulnerabilities effect on use of health services and health outcomes in low and middle income countries Cochrane Database of Systematic Reviews 2022 3 CD011135 doi 10 1002 14651858 CD011135 pub3 PMC 8962215 PMID 35348196 Balmer Alam amp Koirala 2021 p 8 Balmer Alam amp Koirala 2021 p 13 Sources Edit Vidal Jose Jodar Kondakhchyan Anna McCormack Ruth Peachey Karen Phelps Laura Smith Gaby 2020 The State of the World s Cash 2020 The Cash Learning Partnership Balmer Laura Alam Syed Mohammed Aftab Koirala Binod May 2021 Cash and Voucher Assistance CVA Programming PDF Plan International Alderman Harold Gentilini Ugo Yemtsov Ruslan 2018 The Evolution of Food as Social Assistance The 1 5 Billion People Question World Bank Group ISBN 9781464810886 Hanlon Joseph Barrientos Armando Hulme David 2012 Just Give Money To The Poor Kumarian Press ISBN 9781565493902 External links EditCaLP The Cash Learning Partnership non profit membership organisation providing a network for organisations involved in policy practice and research in humanitarian cash and voucher assistance Is Cash Transfer Programming Fit for the Future January 2014 report by the Humanitarian Futures Programme King s College London examining how changes in the broader global and humanitarian landscape may evolve influence and shape CTP s future progression Retrieved from https en wikipedia org w index php title Cash and Voucher Assistance amp oldid 1149575386, wikipedia, wiki, book, books, library,

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