CaLP Asia Cash Transfer Programming and Persons of Concern Workshop Centre Point Hotel Chidlom Bangkok, Thailand 14-15 March 2016 Welcome

Cash & Livelihoods Programming in Emergencies Module 6 – Cash & Livelihoods Programming in Emergencies

“People constantly emphasised the need to restore livelihoods rather than receive relief…” Evaluation of the Disasters Emergency Committee 2001 Gujarat recovery effort, in UNDP (2010)

Phases of livelihoods programming Development Interventions that strengthen household livelihoods so that food and other basic needs can be met on a sustainable basis as well as be more resilient to future disasters. Livelihoods Promotion Interventions that protect livelihood systems by preventing an erosion of productive assets. Interventions that replace the productive assets needed to initiate a pre-existing livelihood. Recovery Livelihoods Protection Emergency Relief based interventions to meet essential basic needs and save lives. Livelihoods Provisioning

Example 1: Unrestricted Cash transfers and Livelihoods Outcomes “Income from cash transfers is proven to help households to smooth consumption… without the need to sell assets or take on debt. Transfer income can help households to build human capital, save up to buy productive assets, and obtain access to credit on better terms. Cash transfers can thus both protect living standards (alleviating destitution) and promote wealth creation (supporting transition to more sustainable livelihoods)”. DFID (2011) Cash Transfers Evidence Review

Example 2: Unrestricted Cash transfers and Livelihoods Outcomes “Evidence [that emergency cash transfers] are spent on productive assets. ……depends crucially on the amount of cash that is given, when it is given and the wider constraints people face. Where cash is being provided as emergency relief, most is likely to be spent on immediate consumption. However, where the situation is less acute, or where the amounts of cash provided are more generous, cash can help to stimulate productive investment.” Harvey and Bailey (2011) Cash Transfers in Emergencies Good Practice Review

Key Messages: Unrestricted Cash Transfers for Food and Basic Needs 1. CTP that are designed to meet other sectoral objectives (food and basic needs) can still have livelihood impacts. By PROTECTING livelihood assets as basic needs are met By enabling INVESTMENT IN PRODUCTIVE ASSETS once basic needs are met By re-establishing CREDIT LINES 2. Factors limiting livelihoods outcomes Size of the transfer Duration of the transfer Wider barriers to productive investment(knowledge and skills; markets; access to credit…) For the most vulnerable, this means transfers are more likely to be spent on basic needs than productive assets.

Key Messages: Cash for Asset Recovery 1. Livelihood benefits: Allow beneficiaries to re-establish the productive assets they need for their livelihoods and businesses. Support to entrepreneurs (not only the ‘most vulnerable’), to enable more rapid market recovery. 2. Factors limiting livelihoods outcomes Transfers maybe spent instead on other needs: consider setting restrictions; or combining with support for basic needs (livelihoods provisioning). Market impacts – inflation; proliferation of informal sector. There may be a time lag between investment in assets and generation of income. Continued cash support (livelihood provisioning) may be necessary for a period to protect assets.

Key Messages: Cash linked to other support for livelihood promotion 1. Livelihood benefits: Allows beneficiaries to reinforce a broader set of capital assets, including human capital, financial capital and social capital. Success depends on integrated, diversified and well-functioning markets for goods and services, with space to accommodate new market actors, highlighting the importance of market analysis. Urban contexts may be conducive to this type of programming. 2. Factors limiting livelihoods outcomes Can require lengthy support – beyond what is feasible on emergency programmes. May not be appropriate for the extreme poor who face multiple barriers to sustainable livelihoods and require long term support. Skill sets of practitioners – market assessment, enterprise development.

Key Messages: Cash for Work 1. Livelihood benefits: Provides an income stream in the period whilst livelihood activities are recovering or employment opportunities are reduced ,whilst often contributing to capital assets benefiting economic recovery of the community. 2. Factors limiting livelihoods outcomes CfW programmes can undermine essential livelihood activities, particularly if extended too long. Programmes can exclude some of the most vulnerable individuals incapable of undertaking hard labour (physically or culturally), or unable to attend due to child care restraints. The works component is costly to manage and the added value of the work activity is not often realised.

1. Size and frequency of transfer UNRESTRICTED TRANSFER FOR BASIC NEEDS more likely to be invested in livelihoods if livelihood needs are factored into the transfer value on programmes of longer duration. ASSET RECOVERY Best achieved through larger lump sum grants. In urban areas, simplify the programme by offering several ‘options’ of assistance rather than varying transfer values to individual needs. CASH FOR WORK Payments are generally provided after work has been completed. Transfer values under the minimum wage allow for self targeting but may not be appropriate in the acute phase.

1. Size and frequency of transfer LIVELIHOOD PROMOTION The poor and very poor may face many barriers to establishment of sustainable livelihoods and may require longer term financial support. CASH FOR WORK Payments are generally provided after work is completed. Transfer values under the minimum wage allow for self targeting but may not be appropriate in the acute phase.

1. Size and frequency of transfer ALL PROGRAMMES Household economic analysis and multi-sector response analysis are important in order to take into account the extent to which other basic needs are being met when setting the transfer value and duration.

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