Emergency aid: cash instead of goods

Humanitarian aid has traditionally been distributed in the form of commodities such as food and seeds. According to the British journal “Disasters”, there is often good reason for providing cash or vouchers instead of in-kind assistance. A cash-based approach could reduce administrative expenses, enable recipients to decide for themselves what they need most, and at the same time stimulate local economic activity. Aid organisations often oppose to this approach because they fear that cash could be more easily misappropriated and even abused for the purchase of weapons in war zones. A case study on southern Somalia, however, indicates that such risks can be avoided. Similarly, an emergency-aid project in the Indonesian province of Aceh reported positive results from its cash-transfer programme. Women and the poorest were not, as feared, disadvantaged by artificial rises in local prices. In summary, “cash transfers” are frequently preferable to food aid, but careful planning is essential. (bl)