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CASH TRANSFERS
FOR FOOD AND FUTURES
New insights into cash transfer programming
in fragile settings
By Kiza Magendane, Mariëlle Karssenberg and Yannicke Goris
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CASH TRANSFERS FOR FOOD AND FUTURES
that ultimately benefits everyone. The current
PREFACE pandemic may have provided the final push
for an investigation into the potential of cash
transfers in fragile settings. The report you have
before you, Cash transfers for food and futures, is
Around the globe, most people would agree
the result of such an endeavour. Importantly,
that 2020 has been a year of unprecedented
it is also the result of a collaboration I am
challenges. The spread of COVID-19 has
particularly proud of and grateful for. While
affected people everywhere, demanding a level
COVID-19 may have forced us all to work from
of resilience and flexibility that many of us
home, connecting only via our laptop-screens,
have not had to muster before. Everywhere in
it has not prevented The Broker and three of the
the world, communities have been hit hard,
knowledge platforms of the Dutch Ministry of
including in highly developed countries; the
Foreign Affairs – the Knowledge Platform on
social and economic impact and grief that
Inclusive Development Policies (INCLUDE), the
have resulted from the coronavirus pandemic
Food & Business Knowledge Platform (F&BKP,
should not be underestimated. However, as
which is now transformed into the Netherlands
institutions like the UN and the World Economic
Food Partnership), and the Knowledge Platform
Forum have pointed out, the current crisis has
Security & Rule of Law (KPSRL) – from coming
had a disproportionate impact on developing
together for this unique project.
countries. In these places, COVID-19 is stacking
crisis upon crisis. In a time when hunger and
Cash transfers for food and futures was written
poverty are already rising, millions of people
by The Broker’s Kiza Magendane, Mariëlle
Wilsan U via Unsplash could be pushed into extreme poverty and as
Karssenberg and Yannicke Goris. The project
Authors many as 132 million people may go hungry in
was financed by INCLUDE, F&BKP and
Kiza Magendane (The Broker) the coming year, leading to destabilization or
KPSRL, thereby building on these platforms’
Mariëlle Karssenberg (The Broker) the worsening of conflict in fragile regions.
complementary fields of expertise. In addition,
Yannicke Goris (The Broker) the authors were informed by the insights
To combat this worrying trend and effectively
and experiences shared by a wide variety of
Graphic design support those who need it most, adequate
stakeholders – policymakers, academics and
interventions and policies are needed. One
Kim van Wijk (The Broker) practitioners – interviewed by The Broker over
intervention that is regarded as having the
the last few months. My gratitude goes out to all
potential to enhance people’s resilience
Reference groups those who were willing to contribute their time
to external shocks, such as the COVID-19
and knowledge to this project. A special thanks
Marleen Dekker INCLUDE pandemic and its consequences in terms of
also goes to the members of the reference group,
Frans Verberne F&BKP poverty, hunger and conflict, is cash transfers.
whose expertise and feedback has made this
Megan Price KPSRL Policymakers and development practitioners are
report sharper and more relevant.
Ida Rademaker MFA increasingly using cash transfer programmes
Martine Rutten MFA to assist communities in need. While this is
With the three knowledge platforms involved in
Asma Hashi MFA already happening, too little is known about the
this project, The Broker shares a commitment to
Gitte Buch 100WEEKs triad relationship between cash transfers, food
generating, co-creating and sharing knowledge
Annegre de Roos Save the Children security and fragility. This is where this project
that contributes to sustainable and inclusive
comes in.
Gerrit-jan van Uffelen WUR - CDI development. More questions and knowledge
Roeland Hemsteede Consultant gaps still exist and, as this project has shown
Disruption and crisis often also come with
that together we are more than the sum of our
opportunities, sparking new energy and
Language editor parts, it is my hope and expectation that more
creating the potential for positive change.
collaborations between The Broker, INCLUDE,
Susan Sellars COVID-19 has made us aware of the fact that
F&BKP and KPSRL will follow in future.
we are all vulnerable and interconnected.
Photo credits cover Adequately supporting those most in need is Saskia Hollander
Omotayo Tajudee via Unsplash not only a moral imperative, it is something Executive Director, The Broker
CASH TRANSFERS FOR FOOD AND FUTURES
CONTENTS
Chapter 1: Introducing the triple nexus:
Cash transfers, food security, fragility 1
Chapter 2: Unpacking fragility and food security 4
Overview of case studies 9
Chapter 3: Power dynamics 11
Chapter 4: Cash transfers and markets 19
Chapter 5: Trade-offs, alignment and sustainable
impact 25
Chapter 6: Bringing together what we have learnt 31
References 36
Acronyms
ARRA Agency for Refugee and Returnee Affairs
CaLP Cash Learning Partnership
CVA Cash and Voucher Assistance
FAO Food and Agriculture Organization
FSP financial service provider
HFP Humanitarian Futures Programme
IDP internally displaced person
ILO International Labour Organization
INGO international non-governmental organisation
MEB Minimum Expenditure Basket
MoU memorandum of understanding
MFA Ministry of Foreign Affairs
NGO non-governmental organisation
NRC Norwegian Refugee Council
SCC Somali Cash Consortium
UN United Nations
WASH water, sanitation and hygiene
Eyoel Kahssay via Unsplash
CASH TRANSFERS FOR FOOD AND FUTURES CASH TRANSFERS FOR FOOD AND FUTURES
Stephen Olatunde via Unsplash
CHAPTER 1: INTRODUCING
THE TRIPLE NEXUS
CASH TRANSFERS, FOOD
S E C U R I T Y, F R A G I L I T Y
In its 2020 flagship publication, The State of transfers are an effective tool to rebuild people’s
Food and Nutrition in the World, the Food and livelihoods, contribute to their food and nutrition
Agricultural Organization of the United Nations security, and increase their resilience to shocks.
estimates that almost 690 million people in Sigrid Kaag, Dutch Minister for Foreign Trade
the world (8.9 percent of the world population) and Development Cooperation, has recently
were undernourished in 2019. This is 60 million confirmed that the Ministry of Foreign
more people than in 2014, when the prevalence Affairs (MFA) is committed to scaling up its
of undernourishment was 8.6 percent. Multiple implementation of cash transfer programmes,
factors have contributed to this increase in based on the idea that such programmes are
food insecurity, including a greater number effective in fighting poverty and inequality, About this project food security in fragile settings. In order to
of conflicts, climate-related disasters, and and contribute to the resilience and dignity of provide a systematic analysis of the triple nexus,
In the first phase of this project, The Broker
economic shocks. The COVID-19 pandemic has the poorest of the poor. At the same time, the clear definitions are indispensable. Accordingly,
conducted a quick-scan of the available
also contributed to the disruption of domestic Ministry has made the prevention of conflict the relevance of cash transfers is outlined in the
literature and several exploratory interviews
food supply chains and economic stability. As and instability one of the key priorities of its Box on page 3, while in the following chapter the
with cash transfer experts and practitioners.1
noted in the Global Update on Covid-19: November development cooperation, and global food definitions and conceptualizations of fragility
This culminated in a short-read with preliminary
2020 by the World Food Programme: “Economic security is a major policy goal of the Netherlands. and food security are discussed in more detail.
findings on the triple nexus and a workshop with
losses due to COVID-19 are expected to continue That being said, while the interactions between It is important to note here that this report
practitioners, researchers and policymakers. The
through 2021, aggravating pre-existing cash transfers and food security, on one hand, does not provide a statistical analysis of the
workshop, as well as the critical contributions
vulnerabilities and compounding conflict and and between food security and fragility, on extent to which cash transfers are contributing
of an expert reference group2, informed the
climate shocks”. The World Food Programme the other, have been extensively documented, to food security. Rather, the report focuses on
direction and focus of the second phase of the
predicts that an additional 137 million people there is still a knowledge gap on the triad the various factors that influence the success
research.
will face food insecurity by the end of the year, relationship between cash transfers, food or failure of cash transfer programmes in
an increase of 82 percent compared to pre- security and fragility – which, in this project, fragile settings. There is extensive literature
In-depth interviews with selected experts and
COVID estimates. If the current trend continues, is referred to as the ‘triple nexus’. Recognizing on how cash transfers contribute to positive
practitioners formed the heart of this second
the global number of undernourished people in both the potential of, as well as the existing development outcomes, including aspects of
phase, resulting in a wealth of insights, which
2030 will exceed 840 million, which means that lack of understanding about, cash transfers for food security in fragile settings. The extensive
are contained in the document you are reading. It
Sustainable Development Goal 2 – ‘Zero Hunger’ addressing food insecurity in fragile contexts, work by knowledge platform INCLUDE on
should be mentioned that the research approach
– will not be met. The Broker initiated a research project, the social protection and cash transfers has proven
captures the views of only a limited number of
results of which are shared in this report. This particularly useful and the authors of this
experts. The expertise shared is, therefore, as
Against this background of declining food project is supported by, and was conducted in report have been able to build on this work
much as possible substantiated by the relevant
security, climate change and the grave impact collaboration with, the INCLUDE Knowledge throughout the project. It is unclear, however,
literature. Where this was not possible, the
of the COVID-19 pandemic, cash transfer Platform, the Food and Business Knowledge how manifestations of fragility affect the ability
insights shared require further investigation.
programmes have greatly increased. There Platform, and the Knowledge Platform Security of cash transfer programmes to contribute to
This report discusses how, and to what extent,
is a growing consensus among development & Rule of Law. food security. It is this triple nexus that is at the
cash transfers can be an effective way of realizing
and humanitarian organizations that cash heart of the present report.
1 See over view of case studies on page 9.
2 An over view of the reference group
1 participants can be found in the imprint. 2
CASH TRANSFERS FOR FOOD AND FUTURES CASH TRANSFERS FOR FOOD AND FUTURES
Edmond ihoeghian via Unsplash
About this report Cash transfers and food security
Before delving into the complex matter at hand, Cash transfers are financial instruments that
we first unpack the key concepts of fragility and individuals and households receive, either for
food security in Chapter 2. Chapters 3, 4 and 5 – emergency relief or as recovery support to
build strong livelihoods and resilience. They
the ‘empirical chapters’ – subsequently present
can, thus, serve a humanitarian purpose or
the main findings of the research, focusing
function as a social safety net, contributing to
on three dimensions: (1) power dynamics; (2) the sustainable development of the targeted
markets; and (3) trade-offs and sustainability. individuals and households. The distinction
between humanitarian interventions and social
Chapter 3 reflects on the power dynamics that protection is increasingly blurred, and cash
affect the design, implementation and outcomes transfers are considered as an effective tool to
link both. At the same time, it is important to
of cash transfers and presents some of the
keep in mind that, depending on the objective,
challenges that organizations face in dealing funding, time frame and implementing
with the (sometimes conflicting) interests stakeholders, cash transfer programmes
C H A PT E R 2 : U N PAC K I N G
of the stakeholders involved in their cash can take various forms. The most common
transfer programmes. In addition, this chapter modalities for cash transfers in fragile settings
discusses the strategies that organizations are: unconditional cash transfers, conditional
can apply to operate in a context-specific and
conflict-sensitive manner. Chapter 4, looks
cash transfers, and cash for work or vouchers.3
FRAGILITY AND FOOD
The main arguments for cash transfers as
at how organizations deal with the unstable
nature of markets in fragile settings and the
an alternative, or in addition, to in-kind
assistance include: flexibility (appropriate
SECURITY
implications for cash transfer interventions choice of goods and services based individual Defining fragility
and food security. A nuanced view of market priorities), efficiency (cheaper to distribute Despite its contested and multidimensional and integrity. When these conditions persist
failures in fragile settings is provided, as well as than in-kind assistance), economic impact
nature, the term ‘fragility’ is usually attributed over several years, they are likely to erode state
(multiplier effect for the local economy), and
reflections on the importance of market-based to those nations or areas where the state or legitimacy and public confidence.1 Another
dignity and choice (beneficiaries take the
and integrated approaches. Chapter 5, discusses main responsible governing body is unable (or approach to achieve a clear conceptualization
lead). Concerns about the use of cash transfers
some of the challenges that organizations face include: security (exposing beneficiaries and unwilling) to carry out certain core functions to of fragility is to define it by the absence of its
in their attempt to contribute to long-term staff to security risks); anti-social use (cash meet the needs and expectations of its citizens. opposite, resilience. As Mcloughlin (2012, p.
development objectives, as well as the strategies as a means to consume goods such as alcohol According to Charles (2011), these core functions 9) notes: “Resilient states are able to maintain
they apply to overcome them. This final that harm a household’s welfare); and inflation include, but are not limited to: defence, law order and stability, keep societal expectations
empirical chapter zooms in on the collaboration (diminishing the value of fixed cash transfers).
and order, public health, macroeconomic and capacity in equilibrium, and survive and
Overall, the potential of cash transfers to realize
between organizations and the alignment of cash management and disaster relief. Other authors ameliorate the negative effects of external
food security depends on the extent to which
transfer interventions with other programmes and institutions employ other dimensions and internal shocks”. In this understanding a
they can be adjusted to contextual and local
and existing social safety nets. factors including: functioning and accessible and criteria to explain and measure fragility, state is considered fragile when it is unable (or
local markets and alignment with existing including ‘inclusive politics – security’, ‘justice unwilling) to provide basic services that are a
While the scope of this project did not allow us social protection programmes. – economic foundations’ and ‘revenue and condition for the resilience of its citizens.
to cover all aspects of the complex triple nexus, services’ (see Table 1 for an overview of some
many valuable insights have been accumulated In this report cash transfers, their various
commonly used definitions, contributing factors When looking at the most commonly used
modalities and their applicability will be
over the course of the past months. Chapter 6 and classifications of fragility). definitions of fragility, it becomes clear that
discussed in detail. This box serves to set the
concludes by summarizing the key findings these conceptualizations are often highly state-
stage and present the key characteristics of
and identifying pathways for future research. cash transfers and the understanding that will Other operationalisations of fragility have found centric, as was noted in the UN-CPR Review of
Some recommendations are also presented be employed in the remainder of the document. their way into various lists and indices, such 35 fragility frameworks. Such understandings,
to assist policymakers and practitioners to as the Fragile States Index and Clingedael’s
3 Whether vouchers can be seen as a transfer 1 Fragility should be understood as a continuum.
develop and implement cash transfer policies modality or as a separate modality depends on the analysis of fragility rankings. From these This means that the intensity of fragility can differ
and programmes that can contribute to the definition. Based on the consulted cases and liter- per countr y. The World Bank classifies ‘fragile and
indices two basic conditions can be distilled
ature review, this research considers vouchers as a conflict-affected situations’ into three categories:
realization of food security in fragile settings. transfer modality that organizations implement to that are integral to a fragile state or region: lack high-intensity conflict, medium-intensity conflict and
attain specific outcomes. of (1) security and/or (2) institutional capacity high institutional and social fragility. See how the
organization operationalizes fragility.
3 4
CASH TRANSFERS FOR FOOD AND FUTURES CASH TRANSFERS FOR FOOD AND FUTURES
while valuable for international and global entities compared with globalized interests, Operationalization and use of fragility in Fragility, on the other hand, describes longer-
indices and analyses, come with grave cross-border dynamics, local stakeholders and this report term institutional and security trends that should
limitations, as they tend to overlook tensions a wide array of (potentially conflicting) social be met with sustained development support
For the purpose of this synthesis report, a
and conflicts at local and regional levels. structures, such as traditional authorities, and capacity development. This distinction is
framework of fragility is used that is best suited
Countries can be ranked as non-fragile based on community-based groups, tribal structures vital, especially for an assessment of the impact
to uncover the triple nexus (cash transfers, food
aggregated data, while containing areas where and clans, social classes, religious and ethnic of cash transfers on long-term development
security and fragility). We employ a framework
both security and institutional governance are solidarities, and informal economy networks”. objectives.
that allows for the unravelling of the various
lacking (for instance, think of isolated rural An analytical lens that focuses primarily on state
manifestations of fragility that influence food
areas or slums and the recent renewed violence functions is, in short, unhelpful if key factors Based on these criteria and the definitions
security, and that highlights the extent to which
in Ethiopia’s northern region of Tigray). That is fuelling instability are located at the local or discussed above and indices of fragility, this
cash transfer programmes can be effectively
why it is more useful to speak of ‘situations of regional level. Table 1 provides a short overview research applies the International Labour
conducted. In the first place, a suitable analytical
fragility’, rather than fragile states. As Olivier of frameworks that are most suitable to cover Organization (ILO) Fragility Compass as its
framework, for the purpose of this research,
Nay (2013) helpfully explains, the latter term fragility beyond the state-centric approach. operational framework. This framework employs
should look at fragile settings instead of taking
“gives too much attention to national state a multi-dimensional operationalization of
a state-centric approach, as explained above.
fragility and looks at both contributing factors
Second, the frameworks must be able to account
and the intensity of the fragility. The contributing
for both internal and external factors: what
factors to the onset and/or exacerbation of
Table 1. Over view of most suitable frameworks on fragility Source: The Broker & F&BKP (2019) causes of fragility are ‘home-grown’ (i.e. in the
fragility include both exogenous and endogenous
specific area under scrutiny), and what outside
forces. While exogenous factors are beyond
forces (at the national level, from other areas, or
the control of a particular state, endogenous
even from the international arena) are playing
factors are context specific within a particular
a role? Third, the framework must allow for a
state, region, and territory and its institutions.
clear distinction between immediate crises and
Understanding fragility as such allows for the
conditions of fragility. While crises challenge the
inclusion of specific factors that have an impact
ability of the state to maintain conditions that
on the food and nutrition security situation in
create resilience for its citizens and may cause
that specific context, thus providing a framework
or deepen fragility, they do not necessarily lead
that is able to increasing understanding of the
to a condition of fragility. With the exception of
specific nexus. The following figure gives some
a protracted crisis, crises or shocks are usually of
examples of exogenous and endogenous factors
short duration and often demand humanitarian
that can contribute to fragility.
interventions for the relief of those affected.
Figure 1. Exogenous and endogenous factors that contribute to fragility
Source: Retrieved from the ILO Fragility Compass
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CASH TRANSFERS FOR FOOD AND FUTURES CASH TRANSFERS FOR FOOD AND FUTURES
The ILO Fragility Compass also distinguishes Table 2. The intensity of fragility
various levels of fragility based on the intensity
of the contributing (exogenous and endogenous)
factors (see Table 2). These different levels of
intensity allow for an understanding of fragility
as a multiplier effect – i.e. when one driver of
fragility worsens (in terms of intensity), other
factors are simultaneously exacerbated. This
particular approach makes the ILO Fragility
Compass an effective tool to understand the
interplay between various factors that contribute
to fragility. It also suggests that fragility does
not happen in a vacuum, but is rather a result of
multiple, interacting developments and ongoing
deterioration in the capacity of the government
to create a resilient condition for its citizens in a
particular region.2
Source: Retrieved from the ILO Fragility Compass
Defining food and nutrition security
To understand the complexity and potential However, what these instruments do not This report looks at the extent to which cash
linkages in the triple nexus of this project, it is sufficiently offer is an operationalization of the transfers can be employed to positively impact
important to elaborate on the concept of food concept of food security that helps understand on food and nutrition security, either directly
and nutrition security. The most commonly its relationship with fragility and the extent to or – building on Devereux’s understanding –
used definition of food security is put forth by which cash transfers may have a positive and by supporting people’s livelihoods in a more
the Food and Agriculture Organization (FAO). lasting impact on food and nutrition security. holistic sense. The studied cases are situated in
areas with various levels of fragility, allowing
According to FAO, food security should be The understanding of livelihood insecurity, as for an analysis of the so-called triple nexus: the
understood as a situation in which “all people, elaborated upon by Devereux (2001), is perhaps complex relationship between cash transfers,
at all times, have physical and economic access one of the most useful definitions to capture the food security and fragility.
to sufficient, safe and nutritious food that meets relationship between food security, fragility and Annie Spratt via Unsplash
their dietary needs and food preferences for an cash transfers – referred to as the ‘triple nexus’. Table 3. Four dimensions of food and nutrition security
active and healthy life”. Underpinning FAO’s Devereux’s conceptualization allows us to take The availability of sufficient quantities of food of appropriate quality,
definition are the four pillars of food security, into consideration all interventions – even those Availability
supplied through domestic production or imports (including food aid).
agreed upon in 1996: accessibility, availability, that do not directly support food consumption – Access by individuals to adequate resources for acquiring appropriate
utilisation and stability. See Table 3 for more by noting that “any developmental intervention Accessibility foods for a nutritious diet, given the legal, political, economic and social
explanation on what these pillars entail. that increases the poor’s control over assets will arrangements of the community in which they live.
indirectly enhance livelihood security” (Ibid., p. Utilization of food through adequate diet, clean water, sanitation and
Various instruments and indicators are issued Utilization health care to reach a state of nutritional wellbeing where all physiological
516). In this understanding, even cash transfer
needs are met.
to measure food and nutrition security. These programmes aimed at dimensions of livelihood
Individuals or households have access to adequate food at all times and
indices shed light on the state of global food security other than food, can be considered as are not at risk of losing access to food as a consequence of sudden shocks
security and provide useful information for all Stability
potentially making positive contributions to the – such as economic or climate crisis, or cyclical events – such as seasonal
actors that seek to contribute to food security. food security of beneficiaries. food insecurity.
Source: Developed by FAO
2. This classification should be understood as a
continuum, and not numerical. A s the ILO Fragility
Compass notes: “Our purpose here is not to assign
measurable intensity scores to each situation, but instead
to provide an analytical lens to distinguish fragility
drivers manifested at different levels of intensity”.
7 8
CASH TRANSFERS FOR FOOD AND FUTURES CASH TRANSFERS FOR FOOD AND FUTURES
Organization: Norwegian Refugee Council (NRC)
Country: Ethiopia
Programme: NRC Ethiopia
Intensity of fragility: Level 1 (catastrophic events, socio-political crisis, migratory flows)
OVERVIEW OF CASE STUDIES Ethiopia is another of the NRC’s focus countries. Here, the organization works in a coalition with
12 non-governmental organizations, known as the Ethiopia Collaborative Cash Delivery Platform.
Together, these organizations aim to harmonize cash delivery for increased scale, efficiency,
effectiveness, and collective impact.
For this project, The Broker consulted representatives of eight organizations implementing cash
transfer programmes in settings with varying levels of fragility. Organization: Care Nederland
Country: Yemen
Programme: Multi-purpose Cash-Based Assistance in Yemen
Intensity of fragility: Level 3 (armed groups, catastrophic events, socio-political crisis, weak
Organization: Women Empowerment Organization (WEO) democratic governance, migratory flows)
Country: Pakistan
Programme: Food Assistance for Assets (FFA) Care Nederland, as part of Care International, is a humanitarian organization providing emergency
Intensity of fragility: Level 2 (armed groups, socio-political crisis, weak democratic relief as well as implementing long-term international development projects. Care Nederland has
governance, socio-economic inequalities, marginalization) been active in Yemen since 1992 and is providing humanitarian assistance during the current crisis. In
this programme, it provides assistance to vulnerable households and grants to those who participate
This non-governmental, non-profit organization was established in 2008 with the aim to contribute in work programmes. For those who are unable to participate, Care Nederland provides cash as well.
to sustainable community development, especially with respect to gender equality. The organization
adheres to three main core values of sustainable development: self-esteem, freedom of choice, and a Organization: Plan International
society in which everyone has equal access to opportunities. WEO works directly with communities Country: Sudan / Nepal
at the grass-root level and receives funding from donor organizations including the United Nations, Programme: Multiple relevant cash transfer programmes
INGOs, and national organizations. By implementing the World Food Programme’s FFA programme, Intensity of fragility: Level 1, 2 (armed groups, catastrophic events, socio-political crisis,
WEO supports food-insecure populations in newly-merged districts in Pakistan through cash-based weak democratic governance, health pandemic, migratory flows)
transfers.
Plan International is an independent organization operating in the field of development and
Organization: Norwegian Refugee Council (NRC) humanitarian action in over 71 countries. Its efforts specifically focus on advancing the rights
Country: Yemen of children and ensuring equality for girls. By using an integrative approach, Plan International
Programme: NRC Yemen uses cash transfers to support and improve different sectors, including food security, education,
Intensity of fragility: Level 3 (armed groups, catastrophic events, socio-political crisis, weak protection, livelihoods, and WASH.
democratic governance)
Organization: Ghetto Foundation
The NRC is an independent humanitarian organization working in over 30 countries. It provides Country: Kenya
support to those who have been forced to flee, thereby saving lives and helping people to rebuild their Programme: Community-led COVID-19 response in Mathare: Cash Transfer
future. Cash transfers represent about 10% of NRC’s total programme portfolio. NRC Yemen receives Intensity of fragility: Level 1 (health epidemic, socio-economic inequalities,
funding from various donors such as the European Civil Protection and Humanitarian Aid Operations marginalization)
(ECHO) and Swedish International Development Cooperation Agency (SIDA). In Yemen, NRC provides
critical emergency aid, but also supports securing new livelihoods. To do so, part of NRC’s efforts Ghetto Foundation is a community-led organization that works to improve social and economic
consist of unconditional cash transfers, with the additional aim to boost local markets. justice for Kenyan Youth in ghettos. Their cash transfer programme in Mathare, which provides
support to those affected by COVID-19, or by the measures taken to slow down the spread of the
Organization: Somali Cash Consortium (SCC) virus, allows for beneficiaries to receive cash digitally and prioritize their own needs.
Country: Somalia
Programme: Multiple relevant cash transfer programmes Organization: Oxfam International
Intensity of fragility: Level 2 (armed groups, catastrophic events, socio-political crisis, weak Country: Various countries
democratic governance, migratory flows) Programme: Multiple relevant cash transfer programmes
Intensity of fragility: Level 1, 2 (armed groups, catastrophic events, socio-political crisis,
The non-profit Somali Cash Consortium, funded by ECHO, was formed in 2017 and comprises six weak democratic governance, health pandemic, migratory flows)
implementing agencies: Agency for Technical Cooperation and Development (ACTED), Concern
Worldwide, Cooperazione Internazionale (COOPI), Danish Refugee Council, Norwegian Refugee Founded in 1942, Oxfam International is an international confederation of 20 NGOs working with
Council, and Save the Children International. The consortium was formed as a humanitarian response partners in over 90 countries to end the injustices that cause poverty and promote sustainable
to the extreme hunger and poverty in Somalia, as no actor alone could respond effectively. SCC development. Oxfam started implementing cash transfer programmes more than 20 years ago. Now,
provides multi-purpose cash to vulnerable Somali communities, especially those affected by drought they are taking a so-called ‘cash first’ approach in humanitarian programming, for which 25% of
and insecurity, reaching the beneficiaries exclusively through the use of mobile services. Oxfam’s humanitarian response budget is allocated.
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CASH TRANSFERS FOR FOOD AND FUTURES CASH TRANSFERS FOR FOOD AND FUTURES
the coordination of multiple programmes, To summarize, the division and fragmentation
knowledge and experience sharing, joint of power across various branches and levels of
fundraising, and joint advocacy), financial government affects the success of cash transfer
service providers (for the delivery of services to programmes. When synergies across various
beneficiaries such as cash, bank accounts, and government branches are lacking and different
bank cards), mobile phone service providers authorities have conflicting agendas, the
Involving stakeholders
CHAPTER 3: A wide array of actors
(for the provision of mobile money transfers),
and various actors providing security for staff
political arena becomes highly unpredictable.
In such cases, it is of the utmost importance to
POWER The consulted evidence indicates that
coordination and collaboration with other
members, among others. design flexible programmes; an agreement with
one branch of government may not be applicable
DYNAMICS development actors, authorities at all Four categories unpacked in the future or only cover certain geographical
relevant levels, as well as a wide range of Across the reviewed cases and literature, the areas (see sub-section on ‘Flexibility’ in next
stakeholders is indispensable to ensure that involvement of these (and other) stakeholders section for more).
a cash transfer programme contributes to is regarded as a pre-condition for the successful
long-term sustainability and food security. implementation of a cash transfer programme. Working with local powerholders in volatile
What stakeholders to collaborate with in a This section discusses a number of key categories settings may be helpful to realize short-term
given context depends on the objectives of the of stakeholders, focusing on the challenges and gains, or even necessary to keep programmes
programme, the power dynamics at play, as well opportunities that present themselves when afloat, but it may come at a price. Especially
When implementing a cash transfer programme, as the position of the implementing organization organizations seek to collaborate with them. in conflict-affected areas marked by political
especially in fragile settings, being acutely aware – e.g. its mandate, legitimacy, support, capacity, instability, collaboration with those in power
of the power dynamics at play is of utmost and so forth. While the situation at hand Powerholders and authorities can undermine long-term objectives. For
importance. In practice, this means that, in order and the characteristics of the implementing example, when organizations collaborate with
For cash transfer programmes to be effective,
to be effective, designers and implementers of organization determine what actors should and a ruling party that does not prioritize inclusive
organizations must collaborate, or at least have
such programmes need to operate in a conflict- can be realistically collaborated with, a number and sustainable development, although this may
some form of working relationship, with those
sensitive manner and take into account the needs of actors are essential to take into account in result in short-term gains, it can negatively
actors that are in power in the area they operate
and interests, not only of their target groups, practically every setting. affect long-term impacts. This is especially the
in. Navigating the division of labour among
but also of other influential stakeholders in the case in conflict-affected areas, where I/NGOs
various branches and levels of government can
area in which they operate. This is particularly The involvement of the state or responsible have to negotiate with non-state actors in order
be difficult in stable countries, but in fragile
important in contexts in which there are authorities is vital to the success of a cash to implement their cash transfer programmes.
contexts this is even more complex. The division
tensions, or even outright conflict, as there is transfer programme. Other actors include Additionally, in volatile settings a change in
and fragmentation of power across various
a risk of exacerbating such dynamics leading donor organizations, UN agencies, other I/NGOs powerholders may hamper the continuation of
government bodies may have a vast impact
to increased instability. This chapter presents operating in the area, local and community- a programme. When a new actor gains power in
on cash transfer programmes and the extent
some of the key challenges facing organizations based organizations, and local authorities, to an area, having worked with the opposition (or
to which they can contribute to food security.
in dealing with the (sometimes conflicting) name a few. The cases studied in this project even the enemy) can mean that an organization
In Somalia, for instance, I/NGOs have to deal
interests of the various stakeholders in their cash confirm that many stakeholders, beyond the has to stop its work, or at the very least restart
with various ministries and government levels
transfer programmes. The focus is on the power primary beneficiaries, are involved, including negotiations.
(local, national, regional), which often do not
dynamics within various ‘levels’ of fragility, national governments (for contracts and project
cooperate with one another and sometimes
paying specific attention to the relationship approvals), local authorities (for travel permits Despite the difficulties involved in collaborating
have conflicting agendas. Without establishing
with food security. The first part of the chapter to target locations and the identification of target with powerholders in volatile settings,
working relationships with all relevant
looks at the inclusion of various stakeholders locations and beneficiaries), line ministries establishing relationships that allow for open
government bodies and obtaining support from
in cash transfer programming and the power (i.e. government ministries responsible for negotiations is considered highly important.
all, realizing the potential of the cash transfer
relations that may affect the programme. The implementation), donors (for funding purposes), Several of the cases studied suggest that INGOs
programme proved very challenging. Similarly,
second part focuses on what is needed to operate food security and agriculture clusters (for are less successful in negotiations with local
in both Yemen and North Waziristan in Pakistan,
in a context-specific and conflict-sensitive coordination to eliminate duplication, technical actors. They tend to invest most of their time
organizations found that agreements with the
manner, so as to ensure that the cash transfer standards, and the harmonization of standards and resources in the implementation of their
government in one area of the country, did not
programme is tailored to, and not unnecessarily and approaches), cash and market working programmes, and less on the negotiation skills
hold in other areas where different authorities
hampered by, the power dynamics at play in the groups (for the harmonization of cash related of their staff and partners, which may affect
held power.
given context. tools, approaches and standards), I/NGOs (for their sensitivity to local customs and tensions.
11 12
Depending on the powerholder at the other end realize social cohesion between refugees and
of the table, the consulted cases indicate that IDPs, as well as between refugees/IDPs and host
it may be ideal for negotiations to take place communities. Cash transfer programmes create
through a collective of organizations and in an opportunity for host communities, refugees
coordination with donors. Working together and IDPs to work on common goals (see sub-
in such a way, the negotiators – INGOs, local section on ‘Sensitivity and safety’ on page 17 for
organizations, and donors, for example – share more on this issue).
among them the necessary cultural sensitivity,
authority and decision-making power. Humanitarian organizations
For organizations operating in conflict-affected
Local civil society areas, being constantly mindful of humanitarian
In the foregoing paragraph, local organizations principles is of the utmost importance. This is
were already mentioned as potentially important not only essential in terms of safeguarding basic
partners in negotiations. The importance of living standards, human rights, and safety, as
involving local civil society in cash transfer well as upholding the principle of ‘do-no-harm’,
programming extends far beyond negotiations. it also lends legitimacy to the implementing
First, outsourcing various activities to local and organization among the various groups that
community-based organizations was identified are affected by the conflict. Development
in the consulted cases as contributing to the organizations seeking to implement cash
legitimacy and acceptance of cash transfer transfer programmes in fragile settings where
Avel Chuklanov via Unsplash
interventions. A ‘snowball effect’ can be achieved humanitarian agencies are present should,
by involving local organizations, as they are able therefore, identify and seek collaboration, or at
to generate a locally-rooted support base for cash and have better access to remote populations the Cash Consortium works with village leaders the very least alignment, with such agencies. It
transfers, and, as acceptance grows, even more in insecure, dangerous environments – areas and village relief committees to select the most has been found, however, that one of the most
actors become involved, yielding even greater where expatriate practitioners may not be able vulnerable in the community. In this process, striking obstacles to effective cash transfer
support. Additionally, local organizations are to go in conflict situations. However important specific households are selected by community programming is the lack of collaboration across
better equipped to identify and reach those and valuable, working with local organizations leaders to identify the most vulnerable groups, sectors and among aid agencies with different
people and communities that large NGOs could also comes at a price: it often requires additional based on the vulnerability criteria that the mandates and missions. As the Humanitarian
potentially miss. Thus, the involvement of local time, effort and staff, for instance, to train local consortium has identified together with Futures Programme (HFP) in conjunction with
partners generates more inclusive programme partners and for oversight. As also emphasized community leaders. A similar approach was the Cash Learning Partnership (CaLP) wrote
processes and outcomes. in the Mercy Corps Cash Transfer Toolkit, because taken in North Waziristan (Pakistan), where the in their insightful report Coordination and cash
cash transfer programmes often have strict Women Empowerment Organization deliberated transfer programming, “[while] the greatest
Working with local civil society groups is of documentation requirements, “it is important with targeted communities to define which advantage of cash is that it can be used to meet
particular importance in fragile settings. Local to carefully consider partnerships and partners’ communal assets should be rebuilt, who would a variety of needs that span different sectors,
and community-based organizations know capacity to meet these requirements as well be involved in the intervention, and who were [agencies continue to] provide cash transfers
the local sensitivities and power dynamics and as [the coordinating organization’s] ability to the most vulnerable groups to participate in the independently of one another for separate
can more freely engage with actors that are oversee their work”. cash transfer programme. purposes”. International humanitarian actors
important for the successful implementation and aid agencies have different goals and
of a cash transfer programme in a particular Local communities In the context of providing cash transfers mandates, but cash is the one modality that can
context. These actors include, among others, Working with local communities is key, not only to refugees and internally displaced people serve both. Cash has proven to work to support
community and religious leaders. Without the to determine exactly what their needs are, but (IDPs), various organizations chose to put people in their immediate food needs, as well
support of these actors, the research indicates also to avoid exacerbating existing tensions or host communities on the beneficiary list as to support people in making the longer-term
that it can be difficult for cash transfer inequalities. In order to avoid adding to tensions as well. They did so in order to prevent investments needed to build resilience. The key
programmes to gain a support base, both between beneficiaries and non-beneficiaries, potential tensions resulting from envy, as challenge, then, is for aid and humanitarian
among beneficiaries and non-beneficiaries. various organizations consulted for this research host communities are often vulnerable groups organizations to break down the silos and
Moreover, local organizations are frequently cooperated with community leaders to identify themselves. Across various cases, cash transfers establish how cash transfer can fit within
capable of rapid, small-scale mobilization a list of beneficiaries. In Somalia, for instance, have been considered as an effective means to existing humanitarian interventions.
13 14CASH TRANSFERS FOR FOOD AND FUTURES
Balancing the trade-offs in collaboration has a longer-term, development objective – Context-specific and conflict-
such as building resilience and realizing future sensitive programming
While building relationships and collaborating
food security – dialogue with, and the inclusion
with the above mentioned actors is seen as In order to capitalize on the
of, all relevant stakeholders is indispensable
important to enhance the effectiveness of cash full potential of cash transfers,
in order to generate credibility and ensure the
transfer interventions, like many decisions programme implementation must be
sustainability of the cash transfer programme.
in development programming, engaging preceded by a few crucial steps. First,
What all this demands, is the formulation of a
stakeholders has its downside. While including as mentioned above, a local context
clear engagement strategy prior to the actual
all relevant actors in the various stages of analysis must be conducted (or
design process – a strategy that takes into
designing and implementing a cash transfer existing analyses studied) to obtain a
account the programme objectives, stakeholder
programme often lends legitimacy to the clear understanding of the situation
presence and local power dynamics. To obtain
programme, it can also slow down the process at hand. The key elements to focus on
a clear picture of the stakeholders and power
of giving cash to beneficiaries. When cash are the power dynamics at play, the
dynamics in a certain area, the programming
transfers serve a more ‘humanitarian objective’ level of fragility, the existing legal
process must begin with a thorough context Oshomah Abubakar via Unsplash
– i.e. the beneficiaries need cash as quickly as framework, as well as the stakeholders present.
analysis. This will be discussed in more detail in programme for refugees and IDPs, they need to
possible – the inclusion of all relevant actors can Based on this understanding, organizations
the next section. sign an memorandum of understanding (MoU)
undermine this goal, as the process takes time. can develop an engagement strategy, involving
Conversely, when a cash transfer programme with the Agency for Refugee and Returnee Affairs
relevant actors, and start designing a programme
(ARRA). Without meeting the conditions of this
that matches the local context and, most
particular government body, organizations
importantly in fragile settings, that is sensitive
cannot conduct a cash transfer programme. This
to tensions and (possible) conflicts.
Power dynamics and the discrepancy between will and reality is also the case in Yemen, where the authorities
want to have a say in project activities,
The donors, NGOs and local organizations involved in a cash transfer programme usually have the The legal framework
same, or at the least overlapping, interests and objectives. However, power dynamics may greatly target locations and beneficiary selection.
affect how the cash transfer programme is implemented and to what extent these actors can stick The legal frameworks that are in place in the Implementing organizations can also experience
to their own objectives. One case in North Wazirstan in Pakistan demonstrates how the discrepancy country of implementation largely determine delays or be denied access to project locations
between will (i.e. the willingness to collaborate) and power may result in unwanted results. whether or not a cash transfer programme can due to the government policies in place. Finally,
be implemented in a specific area and which organizations sometimes have to deal with
The Women Empowerment Organisation, which implements a cash transfer programme in North modality is the most realistic given the defined the deliberate exclusion of, or discriminatory
Wazirstan, was facing increasing outbursts of violence and insecurity in the region, as well as the
operational conditions. Despite the presence and regulations against, marginalized groups and
threat of COVID-19. To ensure that its cash transfer programme could continue, the organization
wanted to change its mode of operation. Instead of having one delivery point (the bank) where 500 persistence of fragility and lack of governance in populations. In some cases, as Norwegian
people would receive cash, the organization felt it safer to deliver cash to beneficiaries by way of a specific area, a legal framework is usually still Refugee Council (NRC) experienced in South
mobile phone. In this way, people would not run the risk of being literally caught in the crossfire present – although perhaps not enforced. Sudan and Gambia, IDPs and refugees who
and the programme would not add to the spread of coronavirus. Yet, despite these strong reasons, receive cash are not allowed to leave the camp.
the donors did not agree on changing the cash delivery mechanism. For the donors, transfers The legal framework can enable or disable the In such cases, the organizations involved have to
through banks had worked in other districts and had relatively low transaction fees. However,
implementation of a cash transfer programme in lobby the authorities to change these restrictions
this logic failed to take into account the specific manifestations of fragility in North Wazirstan.
two ways: (1) legislation may ban cash transfer before they can provide beneficiaries with the
What worked elsewhere, was simply no longer tenable in North Wazirstan. After having received
various threats from the military via Facebook, the implementing organization, without a mobile programmes; and (2) it defines the operational needed cash to buy food and other goods on the
delivery mechanism in place, was forced to relocate its distribution site. Unfortunately, the new conditions. In the first case, laws exist that local market.
site was located in another district, forcing beneficiaries to travel at least two hours to receive prohibit the distribution of cash to the targeted
their cash. Moreover, beneficiaries had to pass a security check before being able to enter the beneficiaries. In our selected case studies, Thus, the legal framework defines whether or not
district. Eventually, tensions rose once again and the implementing organization had to cease its although local authorities were sometimes a cash transfer can be implemented in a specific
cash transfers altogether. At the time of our interview, the organization was still trying to find a
reluctant to allow cash transfer programmes, area and which modality is the most realistic
new, safe distribution site. “We are having to go through this because we rely on only one delivery
mechanism”, the project manager noted. a full legal ban on such programmes was not given the defined operational conditions. This
a common practice. Instead, organizations means that organizations should monitor policy
In this case in North Wazirstan, the relationship between donor and implementing organization is were required to meet stringent conditions developments and design flexible programmes
good and they share the same objectives. However, due to a combination of insufficient understanding before they could implement a cash transfer that will enable them to adjust their modality
of the context, a lack of flexibility and more power on the part of the donor, the programme has not programme. In Ethiopia, for instance, if an when the legal and political space shifts. The
been able to adjust to the changing context.
organization wishes to conduct a cash transfer organizations consulted for this research
15 16CASH TRANSFERS FOR FOOD AND FUTURES CASH TRANSFERS FOR FOOD AND FUTURES
reported having done this on a few occasions. In Operating in a conflict-sensitive manner Flexibility stakeholders and actively include them in the
one instance, an organization selected a transfer could even go one step further. Instead of design and implementation process. However,
The complex (power) dynamics that mark
modality in line with other government efforts, avoiding ‘adding fuel to the fire’ or becoming contextual changes – in terms of conflict, power
fragile settings lead to significant challenges for
deliberately providing a smaller transfer amount a target themselves, organizations may actively dynamics, and the stakeholders in place – may
organizations, often demanding great flexibility
as a voucher, instead of cash, so as to avoid contribute to the stability of an area. The require organizations to change their objectives,
and contingency plans. Sharing such insecurities
the government accusing them of threatening consulted cases suggest that cash transfer again demanding flexibility.
and possible ‘plan Bs’ with donors may help
their legitimacy. This was the case in Northern programmes can be an effective way of realizing in securing flexible funding mechanisms and
Uganda, where the authorities ordered Give social cohesion between various groups (e.g. Such flexibility is not, however, only required
managing expectations about impact. This is
Directly to stop its programming, as its efforts between refugees and IDPs, or refugees/IDPs and from implementing organizations; donors
particularly important when organizations
were believed to jeopardize the position of the the host community). Including the right group, must be willing and able to move as well.
operate in conflict situations, in which the
government, as well as the president. and perhaps even groups that are in conflict with Although they generally have similar goals to
context is at its most volatile, and where both staff
each other, in a cash transfer programme can implementing organizations, donors tend to
and beneficiaries are under threat, potentially
Sensitivity and safety help prevent tensions and build bridges between lack flexibility in their funding mechanisms.
requiring quick unplanned interventions by the
The case studies demonstrate that organizations conflicting or distant actors. Two specific cases Improved coordination and cooperation between
organization. Depending on the volatility of the
have been able to successfully provide cash to illustrate this finding. In Ethiopia, NRC brings donors and implementers can help, as it leads
situation, the severity of the conflict, as well as
conflict-affected communities. By carefully IDPs, refugees and host communities together to more realistic expectations. Power dynamics
the goals of the programme (short- or long-
selecting their modality and delivering and provides them with training on how to start a are also at play here. As donors are holding the
term), organizations will employ a different
mechanism, organizations can ensure that business and acquire a business licence. Because purse strings they are, inevitably, in a position
strategy to engage with relevant stakeholders.
their cash transfer programmes do not put the refugees and IDPs do not have the relevant legal of power. For implementing organizations, it
When the objective is short-term, organizations
security of beneficiaries or local staff at risk. documents, these trainings serve to facilitate is important to be open and frank with donors
can take a more pragmatic approach. When the
For example, where possible, mobile and digital collaboration with local communities, so that about the insecurities related to the fragile
cash transfer programme has a longer-term
money is considered preferable, because it is a together they can start a small business. In context they operate in, as well as about their
objective, patience and perseverance are required
safer transfer mechanism in conflict situations. another case in the Central African Republic, contingency plans.
to build relations with and between all relevant
This was the case in North Waziristan, where one of the organizations consulted conducted
people were exposed to attacks by militia groups a pilot cash transfer programme in which two
conflicting communities were provided with Key messages
when they went to collect their money at central
distribution sites. In other cases, staff of the cash in the aftermath of the conflict. Because Prior to designing a cash transfer programme, conduct an on-site context and stakeholder analysis. This
members of one of the communities had left allows for conflict-sensitive programming, as well as the identification of local actors significant to the
organizations implementing cash transfers were
the village before the war, they faced particular programme, beyond official authorities and beneficiaries.
often provided with military convoys to make
sure they could reach programme sites safely. difficulty with re-integration upon their return.
Include relevant stakeholders in all stages of the programme. This also pertains to local powerholders –
The religious places had been captured by those including official and de facto authorities – but be mindful of jeopardizing the legitimacy or sustainability
Safety is not only improved by certain modalities who had stayed in the village, as had the schools, of the programme in case of political tensions/conflict.
and measures, it also helps to be aware of the markets and local mines. The organization
decided to provide both communities with Taking a non-partisan approach and coordinating/cooperating with humanitarian interventions are
tensions and conflicts in the area and to operate
cash, on the condition that they attend sessions essential if organizations wish to operate in highly-fragile settings. Such conflict-sensitive programming
in a conflict-sensitive manner, so as not to incite
means that organizations may be able to continue their pursuit of long-term goals like food security, even
any animosity. Being explicitly non-partisan is on protection, domestic violence and social
when there is outright conflict.
usually the safest approach for an organization cohesion together. Anyone who returned to their
and may allow it to continue its operations respective places of worship, dwelling and market After a context- and stakeholder-analysis, an engagement strategy should be formulated. Ideally this is
in even the most fragile settings. In Yemen, places would receive the next transfer. Towards part of, or happens before the start of, the programme design process.
North Waziristan and Sudan, the organizations the end of the activity, the organization found
that places of worship were once more filled Collaboration with local and community-based organizations enhances the effectiveness and sustainability
consulted not only worked with the government,
with members of both communities; children of cash transfer programmes. Not only do such collaborations foster a broad and locally-rooted support
but also negotiated with rebel groups, thus base, they also help in reaching the most marginalized/invisible groups. In addition, if outbursts of conflict
showing they were not taking sides. In the case from both sides were attending school; women
force I/NGOs to retreat from the area, locally-rooted organizations are often able to continue the programme.
of Sudan, Plan International was able to deliver were conducting business, regardless of their
cash to conflict-affected communities after they background; and men from both communities Flexibility in programming and funding is key, especially in fragile settings. When implementing a cash
successfully convinced a local rebel group of the were back working in the mines. transfer programme in a volatile environment the demand for flexibility lies with both implementer and
donor. If one party is inflexible, necessary adjustments to changing circumstances and/or outbursts of
benefits of their cash transfer programme.
conflict cannot be made effectively.
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