Dihad dubai sdc's cash experience
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Dihad dubai sdc's cash experience
- 1. Federal Department of Foreign Affairs FDFA Swiss Agency for Development and Cooperation SDC Pushing Innovation in Humanitarian Aid SDC‘s Experience with Cash-Based Projects
- 2. Federal Department of Foreign Affairs FDFA Swiss Agency for Development and Cooperation SDC SDC EXPERIENCE WITH CASH BASED PROJECTS Cash projects – what is it? Cash instead of in-kind assistance Implementation modality Preconditions fulfilled Money or voucher Key factors for success
- 3. Federal Department of Foreign Affairs FDFA Swiss Agency for Development and Cooperation SDC SDC EXPERIENCE WITH CASH BASED PROJECTS Cash projects – SDC experiences Since 1999 More than 30 projects In emergencies, early recovery, reconstruction Budgets from $ 1 mio - $ 22 mio From Mongolia to Haiti Implemented in fragile contexts Growing number of cash project partners
- 4. Federal Department of Foreign Affairs FDFA Swiss Agency for Development and Cooperation SDC SDC‘s EXPERIENCE WITH CASH-BASED PROJECTS Key findings from SDC‘s experience: Cash-based projects are: More cost-efficient than in-kind projects Empower victims and stimulate the local economy Not prone to increased misuse or corruption And: Unconditional larger amounts lead to best impact
- 5. Federal Department of Foreign Affairs FDFA Swiss Agency for Development and Cooperation SDC SDC‘s EXPERIENCE WITH CASH-BASED PROJECTS Pushing further: Use of Cash in Immediate Disaster Response Cash for Work – Haiti after earthquake 2010 Assessments of other cash options
- 6. Federal Department of Foreign Affairs FDFA Swiss Agency for Development and Cooperation SDC SDC EXPERIENCE WITH CASH BASED PROJECTS Never say never:Cash projects in Somalia • Complex in-kind assistance • Working markets • Money transfer systems „Cash for food“ as solution for 70‘000 persons
Hinweis der Redaktion
- Message ofthepresentation:„SDC isimplementing cash transferprojectsformorethan a decade. The resultsprovethattheyareeffectiveandefficienteven in verydifficultcontexts. SDC will push furthertheuseof cash – even in immediatedisasterresponse“------------------------------------------Slide 1 :Introductionthrough Somalia , summer 2011: Emergency - famineVictimsmostly IDPs Fragile context Low securityforfoodtransport/distribution Food on marketsavailable-> woulditbefeasibletodeliver cash tobuyfoodinsteadofdistributingit?(picture: Payment during Cash forherderproject, Mongolia)--------------------------------------------
- Slide 2: Cash is an implementation modality or an instrument, not a stand-alone type of project Preconditions to be fulfilled: (1) functioning markets (2) existing cash distribution infrastructure resp. network of voucher agents (bank, post, hawala etc) Money or voucher: Unconditional vs. conditional cash grants (i.e. limited choice regarding the use of the cash or cash payment is subject to specific actions by the beneficiary, ex. participation in a training scheme, rendering assistance to other victims or giving shelter); voucher projects are by definition conditional Key factors for success of a cash project: 1:Statistical data available: Need for reliable data about beneficiaries, their needs. For ex. registered host families, households with damaged 2:Committed partners, i.e. cash agents, implementing partner (Horn Relief in Somalia), (political) support by authorities 3: Professional project management: SDC cash experts (assessment incl. data, project setup (temporary office with bookkeping, local staff, way of payment, beneficiary and public relations, monitoring, handling of complaints etc)4: Avoid any risk, especially no direct link between project staff and money – or bluntly: Never cash in project staffs hands!(picture: Swat Valley, Pakistan, control of beneficiary list)------------------------------------------------------
- Slide 3: First emergency projects during and after the Kosovo war 1999 with host families as direct beneficiaries (to cover additional food and utility costs), IDPs/refugees as indirect beneficiaries. To avoid expensive IDP and refugee camps and to keep All in all more than 30 cash transfer projects SDC financed and mostly SDC implemented Since tsunami 2004, projects for early recovery and reconstruction Indicated budget range is for one project phase. More than two phases not recommended – higher risk for fraud, cash project no substitution for state welfare Even in delicate contexts (Haiti, Ingushetia/RU, Swat Valley/PK) no grave security or corruption incidents reported SDC cash project partners amongst Swiss (SRC, Swiss Interchurch Aid/HEKS etc) and local NGOs as (Horn Relief) and UN (especially WFP) Some SDC or SDC-lead project examples: Cash for herder, Mongolia (after loss of animals through “dzuds” – victims received cash to replace livestock) Cash for loan, Czechia (SDC initiated and financed: credit to rehabilitate small enterprises and farms after flooding 2002; the credit had to be paid back to local authorities which used it for social projects: Rehabilitation of parks, playgrounds etc) Cash for shelter, Ingushetia (support of 15’000 host families of Chechen IDP’s)Cash for shelter, Indonesia (temporary shelter after tsunami) Cash for reconstruction, Sri Lanka (objective: empower house owners to rehabilitate or reconstruct their fully or partly damaged houses. Largest cash project so far: 10‘500 households, payments up to $ 5000/household Cash for repair, Lebanon (700 beneficiaries rehabilitated their bombed houses) Cash for work (Local helpers are paid, for example, to clear rubble, improve road conditions, or carry out repairs to infrastructure ) Voucher for seeds (Zimbabwe – vouchers were exchanged for seeds only)(Pictures: Cash for reconstruction after tsunami 2004, Sri Lanka)-------------------------------------------------------------------------------
- Slide 4:SDC‘s key findings tally with the internationally discussed findings regarding cash projects.Cost efficiency: While cash may not be the most cost-effective option for a smaller project because of the considerable effort that needs to go into the registration and verification process of the beneficiaries, for larger projects cash is clearly a more efficient delivery mode. This is also confirmed, for example, by the analysis of WFP cash projects. A considerably larger portion of total project funds actually go to beneficiairies rather than into project delivery.Empowerment of victims is a key aspect of all cash projects. Victims are given the opportunity to decide on how they want to reshape their future and to bring in their knowledge of what is best for them.Additionally, cash-projects stimulate the local economy. In this sense, cash projects don‘t only produce „humanitarian“ results, but strengthen local economic development. (Although, given the rather short-term focus of humanitarian actions, no conclusive data has been gathered on this front)Needless to say, that local beneficiaries know best how to use the cash most effectively (best price-quality relation of needed goods). No costs for transport, storage, distribution of in-kind assistance for the donor.Experience shows that beneficiaries of cash projects use the money they receive sensibly. No increased misuse or corruption has been noted. This has certainly held true for SDC‘s cash projects. (But it is probably true, that misuse and corruption in a cash-based projects would spark more media interest and hence a pro-active communications strategy is needed to put possible incidents into the correct perspective – no project is 100% abuse- and corruption-proof)For all of the above reasons, whenever conditions for a cash-based project are fulfilled – namely functioning markets are available – cash is the better delivery mode.Finally, the analysis of various cash projects also shows that the larger the amount and the less conditions are imposed on beneficiaries, the higher the longer-term impact on their livelihood. (Picture: Payment during cash for shelter project Ingushetia through post office)--------------------------------------------------------------------------------------
- Slide 5:Thereisampleevidenceoftheappropriatenessof cash-approaches in earlyrecoveryandreconstruction. But whatabouttheimmediatedisasterresponse?The earthquake in Haiti was a turningpoint in thisregard... Upto 100‘000 peopletookpart in Cash for Work programmesorganisedbythe UN System in theearlyphases after thedisaster.Whilethis was a wayto bring liquidity back intotheHaitianeconomyandallowvicitimsto cover theirmost urgent needs, anotheraspectisworthnoting: Byproviding a structureddailyscheduleandgivingthem a roletoplay, the cash forworkprogrammes also helpedvictims deal withtheirtraumaticexperience.Atthe same time, the in-poorof international reliefgoodsissaidtohavetakenprecedenceovercommercialtransports, thushamperingtheroleofthelocaleconomy in coveringtheneedsofthepopulation.Finally, canonly Cash for Work beused in immediatediasterresponseorareother cash-basedoptionsviable? Thisis a question SDC iscurrentlylookinginto. (Picture: Examplefor a project in a verydelicateenvironment – Swat Valley. In October 2010, after the floods, the SDC launched a cash project to provide the homeless with shelter over the winter months. Around 800 most vulnerable families received interim cash payments to enable them get through the winter. The equivalent of the $ 700 was more than the local average salary/year.)-------------------------------------------------------------------------------
- Slide 6 – back to the introductory words on Somalia in summer 2011: Complex in-kind assistance: Queing-ups, high taxes, looting due to insecurity Markets offer food and non-food articles, but access for foreign humanitarian workers very restricted Money transfer systems do work (hawala)-> The way out: Cash for food assistance in Southern Somalia Initiated by Cash Consortium with SDC, Horn Relief, DRC, Save the Cildren, ACF Some 70’000 beneficiaries in 10’000 vulnerable households Local implementing partners Horn Relief and AFREC, with SDC cash expert Payments through hawala money transfer companies Aug 2011 – May 2012, 6 monthly payments (cost of a minimum expenditure basket food+hygiene ~110 USD/month) Extension of the project with up to 315’000 beneficiaries in some 45’000 households has just started (see news note appearing on mouse click)(picture from Somalia – not linked to cash project)-----------------------------------------------------