emergency shelter and cash-based programming - powerpoint.v2

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    The Case for using Cash

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    Aim

    To present the case forconsidering using cash

    transfer as a modality in

    emergency response

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    Session components

    Introductions

    What is it?

    Perceptions

    Why use it?

    Specifics of cash and shelter

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    Session components

    Case studies

    Challenges

    Lessons learned

    What needs to be done?

    References

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    What is cash transfer?

    W F P / A m j a d J a m a l

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    Cash transfer?Cash interventions transfer resources to people bygiving them cash or vouchers (ODI Good PracticeReview)

    Key point!!

    Cash and vouchers are amodality for addressingneeds and achievingobjectives

    Cash transfer is not aprogramme in itself

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    Cash and shelter - modalities

    Cash grants

    (conditional,unconditional e.g.cash for work,staged payments)

    Vouchers (cash orcommodity based)

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    Conditionality and frequency ofpayments

    Cash grants can be given inone payment or ininstallments depending on:

    Project objectives

    Security

    Cost efficiency

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    Delivery Mechanisms

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    Cash transfers key message

    A new tool, ratherthan a newapproach

    Needs to beconsidered withina context

    WFP/GMB Akash

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    Perceptions

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    Cash transfer is being consideredbecause it is new and fashionable

    however it is not suitable for theshelter sector because of the hightechnical component needed.

    1

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    2

    It is not possible to implement cash

    transfer, as part of an emergencyintervention, in contexts of conflict .

    2

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    3

    It is more cost effective to meet shelter

    needs through cash than in-kindassistance.

    3

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    4

    Cash is more likely to lead to anti-

    social use than in-kind assistance.

    4

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    Why use cash transfer? W F P D i e g o f e r n a n d e z

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    Using cash transfer can provide Dignity

    Flexibility and choiceCost efficient for agenciesand beneficiairies

    Multiplier effects and linkwith recovery

    Support or revitalise localtrade and economic recovery

    WFP/Judith Schuler

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    Other examples of benefits of cash-based shelter responsesSupport community solidarity through recompensing hostfamilies

    Encourages people out of camps

    Choice in materials or labour to build temporary shelter,rebuild or repair permanent housing

    Avoid contractor-driven reconstruction

    Families or individuals get a bank account, often with noadministration fee

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    Prerequisites for considering cashAnalysis of:

    Local and regional market systems

    Available delivery mechanisms

    Cost-efficiency and effectiveness

    The prevailing security situation

    The beneficiaries' acceptance of cash and/or vouchers as transfermodality.

    Good coordination among implementers and support fromdonors, governments and local authorities in deploying CTPs.

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    Prerequisites for considering cashPolitical and community acceptance

    Availability of well-functioning and reliablefinancial service providers

    Institutional capacity

    The presence of qualified staff who can bequickly mobilised

    A reliable recipient identification system

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    Specifics of cash and shelter

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    Three key issues

    Scale

    Qualityassurance

    Risk

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    Case studies

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    Cash for hosting families (SDC)Aceh 2005

    In Aceh, SDC distributed cash

    to 7,000 families hostingdisplaced people in BandaAceh and Aceh Besar, givingthem a one-off cash paymentof IDR900,000 (around $100).Payments were made throughan Indonesian bank, and werecollected by beneficiaries attheir local branch. The mostcommon purchases amonghost families were electricityand food; guest families spentmost on food.

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    Complementary programme (IFRC)Bangladesh 2007

    In the aftermath CycloneSidr, IFRC providedstandard, disasterresistant core shelters,along with a cash grant tobuy additional materials

    to further increase thesize of beneficiarieshomes as well as cashgrants to strengthen andrepair homes.

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    A menu of options - HaitiHaiti, 2010

    After the earthquake the IFRCset up one of the few cashprogrammes combining shelterand livelihoods and providingpeople with multiple choiceswith the objective ofsupporting households inreturning to their places oforigin or finding a sheltersolution outside of the camp.

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    A menu of options - HaitiHaiti, 2010

    It consisted of a menu of options that

    people can decide from, combining aconditional grant for rents to anunconditional grant for setting upsmall business and restarting lives inand out of the cities.

    Monitoring costs made up more than60% of the project costs as eachrental grant had to be individuallymonitored.

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    Cash grants (CARE)

    Sumatra earthquake,2010

    After the earthquake CAREIndonesia provided cash grants tokick start construction, andtherefore did not providecomplete funds forreconstruction. The grant (US220.00) could be spent on eitherlabour or materials.

    People could build however theywanted according to guidelines(four basic designs) providedduring training and widelyavailable posters.

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    Vouchers (PRC)Philippines, 2009and 2010In response to typhoons in 2009and 2010 the Red Cross providedshelter materials for repairs andconstruction of shelters through acommodity based voucher system,

    with each household allocated theequivalent of USD $ 190.00 worthof materials. Pre-selected suppliersensured a swift and effectiveimplementation of early recoveryactivities.

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    Pre-paid debit cards (CRC)Chile 2010

    In response to the 2010earthquake, the Chilean RedCross (CRC) launched itsTarjeta RED debit cardprogramme. It assisted 8,400families rebuild, repair theirhomes or improve the livingconditions of their transitionalshelters by allowing them topurchase needed constructionmaterials and tools.

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    Cash for workPakistan, 2005

    A project to build transitionalshelters according to one basicdesign. The shelters usedreclaimed materials as well asdistributed materials andtoolkits. Cash for work,carpenters, and technicalsupport were also provided.The project was a combinationof direct implementation by alead organisation with itspartner organisations.

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    Challenges

    W F P / S e l l y M u z a m i l

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    Challenges

    New technologies

    Staff capacity to implement

    Institutionalisation

    Measuring cost and impactCoordination

    Stand by agreements with private sector

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    Lessons learned

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    Lessons learned

    Appropriate technical support and sensitisation is required to

    complement cash grants

    Traditional support roles will change (finance, ICT etc.) thesestaff need training

    Good preparedness and contingency planning is essential forrapid response

    Establish price monitoring systems

    1

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    Lessons learned

    Accurate beneficiary data is essential

    Sensitisation on the use of cards or other paymentmethods is essential

    Government acceptance and coordination are essential

    Cash schemes can be complicated to administer

    Widely appreciated by beneficiaries

    2

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    What needs to be done? W

    F P / P h i l B e

    h a n

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    What needs to be done?

    Awareness raising, particularly at the field level

    Buy in by senior management, govt., privatesector partners, donors

    Investment into preparedness e.g. stand byarrangements with financial institutions

    More stringent response analysis

    Adopting more complementary approach of cashand in-kind/technical assistance.

    1

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    What needs to be done?

    More research on multiplier effects (impacts and

    measurements)Institutional SoPs

    Recognition and capacity building for support staff

    Formalised coordination mechanisms

    Donor support and positioning

    2

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    Current research

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    Cash publicationsGuidelines for Cash Transfer Programming (ICRC &IFRC 2007)

    Implementing Cash-Based Interventions (ACF 2007)

    Cash Transfer Programming in Emergencies (Oxfam2006)

    Cash Workbook (SDC 2007)

    Cash and Voucher Manual (WFP 2009)

    Guidance for DFID country offices on measuring andmaximising value for money in cash transfer

    programmes (DFID 2011)

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    Cash publicationsCash Transfer Programming inEmergencies - Good Practice Review

    11 (HPN/CaLP 2011)The Use of Cash and Vouchers inHumanitarian Crises (DG ECHOfunding Guidelines 2009)

    Cash and voucher in relief andrecovery: Red Cross Red Crescentgood practices (2006)

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    CaLP Research

    www.cashlearning.org/what-we-do/research