Cash Based Transfers (CBT) Cash Based Transfer Programming, the other Approach for the delivery of Assistance

Lesson Plan: Cash Based Transfers (CBT) LEARNING OBJECTIVES: By the end of the session, participants will be able to: Describe the main changes in the Humanitarian Interventions approach Describe the various Assistance Transfer Modalities and Delivery Mechanisms used by WFP Structure Timing Activities Introduction 5 minutes Explain lesson objectives What is the Humanitarian World Transformation ? 15 minutes From Humanitarian Food Aid to Humanitarian Food Assistance (7 slides) What are the Cash Based Transfers ? 40 minutes Review of the Cash Based Transfer Modalities and Delivery Mechanisms (14 slides) Where is WFP standing now in terms of Cash Based Transfers ? Facts & Figures on the rapid increase in the use of CBT in WFP (6 slides) Lesson End/Plenary EVALUATION / RECAP QUESTIONS: The facilitator should ask the questions below, or similar questions to the class to recap the lesson to ensure participants have understood the lesson content. What are the main shifts in the Humanitarian Interventions approach for Assistance delivery ? What kind of new additional Assistance Transfer Modalities have been integrated in WFP ? What are the new additional Delivery Mechanisms used by WFP? What kind of new additional role/activities are undertaken by the WFP Logistics ? Total Lesson Length 90 minutes   This slide is for the facilitators reference only. This slide should be hidden from the workbook and from the class presentation DO NOT PRINT IN WORKBOOK DO NOT DISPLAY IN CLASS

Lesson Objectives 1 2 By the end of this lesson, you will be able to: Describe the main changes in the Humanitarian Interventions approach 2 Describe the various Assistance Transfer Modalities and Delivery Mechanisms used by WFP

Time of Change in the Humanitarian World ? Module 1 Time of Change in the Humanitarian World ?

From Humanitarian Aid to Humanitarian Assistance Emergencies HUMANITARIAN ASSISTANCE Emergencies Rapid Recovery Development

From Humanitarian Aid to Humanitarian Assistance Main changes PROGRAM From a stereotype quantitative response to a quality integrative approach BENEFICIARIES From a passive Receiver to an active Partner in the recovery SYSTEM From a unilateral silo approach to a shared network engagement TOOLS From a unique monolithic tool to the linkages between several instruments

PROGRAM The new dimensions to consider in Humanitarian projects From Humanitarian Aid to Humanitarian Assistance PROGRAM The new dimensions to consider in Humanitarian projects DIMENSION OF SPACE Impacts at the individual, household, group, community levels Impacts at the Regional, Country Program, Project Area levels DIMENSION OF TIME Short-term impact Medium-term impact Long-term impact MULTI DIMENSION TRANSVERSAL CONSIDERATIONS Secondary Impacts at the Food, Non-Food and Labour Market Levels, local economy, livelihoods & security Secondary Impacts at the country Food Security Policy, the country Resilience Strategy, Millennium Goals, Government Safety nets, etc. Holistic approach & Multi-factorial issues attention (Program, Finance, Logistics, Supply Chain, Telecommunication, Legal & Protection Issues) Gender balance promotion & Vulnerability issues consideration Empowerment of beneficiaries & Community participation Exit strategies & links with Governments & Safety Nets « Do not Harm » approach & Dignity Issues & Beneficiary preferences

From Humanitarian Aid to Humanitarian Assistance BENEFICIARIES Changes in the perceptions of the beneficiary ABOUT HIMSELF Becoming an actor of his own recovery FOR THE INSTITUTION Becoming a Partner of the recovery Implies willingness to participate Implies increasing knowledge from both sides Reinforce Sustainability Develop Resilience Enforce Respect Improve Dignity

Changes with the new way of working and sharing of responsibilities From Humanitarian Aid to Humanitarian Assistance SYSTEM Changes with the new way of working and sharing of responsibilities FROM THE INTERNAL SECTORIAL SILO APPROACH….. …. TO THE EXTERNAL MULTI PARTNERS COLLABORATIVE APPROACH WFP Private Sector NGO & INGOs UN Sister Agencies Governmental Agencies Donors Management Program Security ICT Logistics & Supply Chain Finance Procurement

From Humanitarian Aid to Humanitarian Assistance TOOLS New innovative interactions between various instruments of intervention CASH Community based Participatory Planning Technical Assistance In-Kind Food DRR School Feeding VAM SCOPE VOUCHER Food for Trainings Resilience Purchase for Progress Safety Nets Livelihood Capacity Building B2B Food for Assets

Review of the WFP Cash based Intervention Transfer Modalities Module 2 Review of the WFP Cash based Intervention Transfer Modalities

WFP Cash Base Intervention Transfer modalities Tentative definitions “Cash interventions transfer resources to people by giving them cash or vouchers” (ODI Good Practice Review) “Cash transfer programming in emergencies is one form of humanitarian response, which can be used to meet basic needs and/or protect, establish or re-establish livelihoods” (IFRC and ICRC Guidelines on CT) “Cash and Vouchers are ways of transferring resources to beneficiaries”. Beneficiaries receive cash or vouchers to gain access to food items in the marketplace. (WFP Cash and Vouchers Manual 2009) IMPORTANT! Cash & Voucher transfer modalities are not programs or objectives. They are assistance transfer modalities that respond to program needs in order to achieve its goals on the most cost-efficient and effective manner.

Cash assistance transfer modality WFP Cash Base Intervention Transfer modalities Cash assistance transfer modality A cash transfer is the assistance in the form of physical cash or electronic disbursement that enables direct access to food from the market place. Cash transfers can be distributed through 2 different models. Model 1: Cash account Cash can be distributed through accounts opened in a selected bank or other financial institution. Beneficiaries have several alternatives to access cash at the bank counter, with ATM cards, cell phone and others Model 2: Immediate Cash Cash is made immediately available to beneficiaries via ‘direct delivery’ (e.g. cash in envelopes on site) or via ‘collection’ from an agent or bank counter (e.g. cash at disposal). In both cases, beneficiaries are not required to open an account.

WFP Cash Base Intervention Transfer modalities Cash Assistance Distribution Models

Voucher assistance transfer modality WFP Cash Base Intervention Transfer modalities Voucher assistance transfer modality A voucher transfer is the assistance provided in the form of a paper or electronic entitlement redeemable at pre-selected shops/retailers or at an organized fairs. It is made of a list of food items consistent with the project objectives. Commodity Vouchers Can be exchanged for a fixed quantity of food or services Value Vouchers Redeemable by the equivalent value in cash with a selection of specified foods.

WFP Cash Base Intervention Transfer modalities WFP Voucher transfers can be distributed through 2 different models. Model 3: Paper Voucher Beneficiaries receive paper coupons carrying the entitlement. Vouchers can be redeemed in exchange for food items or services in pre-selected, retailers/millers, shops and/or at specifically organized fairs. It cannot be exchanged for cash. Model 4: E-Voucher Beneficiaries receive an electronic voucher carrying information on the value, or on the food items and/or quantities they can be exchanged for. They can be recharged repeatedly based on the project objectives, activities or needs. Information is stored in the plastic card. In some cases electronic vouchers are provided through cell phones.

WFP Cash Base Intervention Transfer modalities Vouchers Assistance Distribution Models

Unconditional Assistance WFP Cash Base Intervention Transfer modalities Unconditional Assistance Global & specific sectorial assessments Unconditional Assistance Cost-efficiency and effectiveness Analysis In-Kind Food Cash for the purchase of Food Vouchers for acquisition of Food

Unconditional assistance through Cash based Transfer modalities WFP Cash Base Intervention Transfer modalities Unconditional assistance through Cash based Transfer modalities These transfers are direct assistance to beneficiaries in the form of money payments or through vouchers transfers. Beneficiaries can directly meet their needs of food on the market To receive assistance, particular conditions or activities are not required to selected beneficiaries and it is assumed that recipients will use it for the acquisition of food for their needs These are non-contributory assistance transfers with no expectation of repayment or compensation from the beneficiary

WFP Cash Base Intervention Transfer modalities Conditional Assistance Global and specific assessments Conditional Assistance Food For Assets (FFA) Food For Trainings (FFT) Food For Livelihood Recovery (FFR) Cost-efficiency and Effectiveness Analysis In-Kind Food Cash for the purchase of Food Vouchers for acquisition of Food

Conditional Assistance through Cash or Voucher transfer modalities WFP Cash Base Intervention Transfer modalities Conditional Assistance through Cash or Voucher transfer modalities This type of assistance is based on pre requisites that have to be fulfilled by the beneficiaries, for example: Participation to defined Trainings Participation to working schemes Keeping children in school and access to health services Conditionality does not mean restrictions in the use of cash neither in the beneficiary’s selection process

WFP Cash Base Intervention Transfer modalities How to select and use the most appropriate Assistance transfer Modality?

Why use Cash and Vouchers transfer modalities? WFP Cash Base Intervention Transfer modalities Why use Cash and Vouchers transfer modalities? Preserve beneficiary’s dignity avoiding stigmatization and stereotypes Increase the flexibility in the choice of adapted food, respecting cultural patterns Facilitates the transfer of power from humanitarian organizations to the beneficiaries, strengthening sustainability Cost-efficiency and effectiveness improved for agencies and beneficiaries Consider a multiplier effects on several areas Assist in the revitalisation of local and economic markets

WFP Cash Base Intervention Transfer modalities Additional Impacts Beneficiaries can set their own priorities Cash/Vouchers helps people to take responsibility for their own nutrition Families or individuals obtain a Bank account, often without any administrative fee Potential for complementing other Agency’s scope of work Feverish the connection with the phases of recovery support

WFP Cash Base Intervention Transfer modalities Minimum requirements for the use of Cash and Voucher transfer modalities Markets need to operate Availability of food at the local, regional or national level and within a reasonable distance Traders willing and able to participate Geographic accessibility of shops/markets to recipients A reliable beneficiaries identification system A system of reliable operation through which you can pay Political acceptance, stable context and security Agreement and community awareness

Cash based Interventions in WFP and where WFP stands now Module 3 Cash based Interventions in WFP and where WFP stands now

Where WFP stands worldwide now in terms of CBT 9.6 million people

Where WFP stands now worldwide in terms of CBT

Where WFP stands now in terms of CBT

Where WFP stands now in Asia region in terms of CBT

Where WFP stands now in terms of CBT POTENTIAL ACTIVITIES FOR THE DEVELOPMENT OF WFP SUPPORT TO GOVERNMENTS IN THE AREA OF SOCIAL SAFETY NETS WFP SUPPORT TO GOVERNMENTS IN THE ESTABLISHMENT OF SHOCK RESPONSIVE SAFETY NETS WFP SUPPORT TO GOVERNMENTS IN THE IMPROVEMENT OF THEIR SAFETY NETS WFP SUPPORT TO GOVERNMENTS IN THE ESTABLISHMENT OF THEIR SAFETY NETS WFP SUPPORT TO GVT FOR THE DEVELOPMENT OF SOUTH-SOUTH COOPERATION NETWORKS FOR SHARING KNOWLEDGE AND CAPACITY BUILDING ON SAFETY NETS Philippines (Haiyan Hurricane, 2014) Fidji (Winston Cyclone, 2015) Sri Lanka (Floods, 2016) India (Technical support request from India GVT – shifting their SSN Transfer modality, Dec. 2015) Myanmar (Mandalay - Take advantage of a WFP CBT Project to create an embryo of SSN – Interest from SDC) Fiji (Aftershock Follow-up with Fidjian GVT) India (SSN Pilot projects –Chandigarh – Pondicherry)

Where WFP stands now in terms of CBT

DO NOT PRINT IN WORKBOOK Recap Lesson Questions: 1 What are the main shifts in the Humanitarian Interventions approach for Assistance delivery ? DO NOT PRINT IN WORKBOOK 2 What kind of new additional Assistance Transfer Modalities have been integrated in WFP ? 3 What are the new additional Delivery Mechanisms used by WFP? 4 What kind of new additional role/activities are undertaken by the WFP Logistics ?

QUESTIONS ? ACE Programme