A Locally Shaped Future for CVA

01 December 2020

"All humanitarian actors should recognise that progress on CVA localisation means shifts in power, as well as changes to funding processes, systems and requirements to enable the systematic consideration and strengthening of local systems and structures." – CaLP, State of the World of Cash Report. 2020

Cash and voucher assistance (CVA) has been dramatically on the rise. The State of the World of Cash Report (SOWC) 2020 noted the global volume of CVA reached a total of $5.6 billion in 2019, almost 20% higher than in 2018. Most of this funding is channeled through INGOs, Red Cross and Red Crescent Movement and UN agencies. Yet, local and national humanitarian actors have been on the sidelines of funding flows for CVA and the global forums where its future is discussed.

"We reject being treated as implementors, which is what is happening now. We look forward to equal partnerships where we bring and share capacities as partners" - Ms. Eyokia Donna Juliet, CEFORD, Uganda

Focusing on localisation in CVA means recognising the voice and agency of local actors as its implementors, partners, and leaders. If international CVA actors can work effectively and in equal partnership with local ones, then the scale and innovation (e.g. digital solutions) occurring under CVA can facilitate a shift in the imbalance of power, from international to local.

Recognising the limited engagement of local actors in global forums on CVA to date, the Grand Bargain cash workstream local partnership group recently organised a panel discussion with local actors on CVA's future. There were four key takeaway messages from these discussions:

1. Local actors and partnerships facilitate informed, adaptable and cost-effective responses for those affected by crises

At the panel session, panelists discussed opportunities that CVA brings and recognition of the importance of multi-purpose cash assistance (MPCA) in addressing the diverse needs of different groups, from education and health to emerging household needs such as funeral support, especially in response to the COVID-19 crisis. Ricardo Valenzuela of Fundación Halü Bienestar Humano (Colombia) shared experiences working with partners to support cash for documentation and the relevance of this approach for populations on the move through his country in the neighbouring Venezuela crisis.

"Local agencies must be able to demonstrate the cost-effectiveness of what is proposed, and the local knowledge this builds on. International agencies, INGOs, UN, it's a matter of listening." Stephen Ndegwa, Titi Foundation, South Sudan

Local actors provide an opportunity to directly strengthen accountability with communities, for example through technological innovations introduced by local actors in experiences shared by Sonia Cárdenas of the Ecuador Red Cross. They can also contribute with contextual understanding of social, economic, political, and cultural realities and connect with other actors into quality and context responsive programming.

Titi Foundation provided an example of how by locally designing and delivering a CVA programme in close collaboration with community groups, they saved money because of low operational costs. Through these savings Titi Foundation and their community partners were able to add 240 households to the programme (an increase of the number of aid recipients by 24%). Titi Foundation stressed that the knowledge and opportunities exist with local actors and that the responsibility is on the international community to listen.

2. Local actors are at the center of CVA delivery and the forefront of risk, particularly in the context of COVID-19

By working in partnership, local actors such as Jago Nari in Bangladesh can undertake rapid and joint needs assessments and develop and design context-specific projects and programmes. Yet, when international actors submit projects implemented with local partners, the locally-designed aspects are often omitted. In the context of COVID-19, this places greater risks for safe delivery of assistance on local partners, as they are responsible for implementing projects designed without consultation by international agencies.

Md. Duke Ivn Amin, Jago Nari, Bangladesh. Delivering Assistance to Communities during the COVID-19 Crisis.

Local actors need access to personal protective equipment (PPE), support to develop remote monitoring and programming, and resourcing for core costs such as insurance and governance.  As articulated by Miss Mimidoo Achiakpa, Women's Right to Education Programme (WERP), Nigeria, risk must be framed within a risk-sharing rather than a risk transfer approach, in which the duty of care, stewardship of resources, mutual accountability within partnerships, and dignity and integrity of local action are the starting points over diligence and compliance.

Much can be done on the co-creation of joint interventions that involve communities, speak to the specific contexts, and provide platforms to amplify voice and presence. Equal sharing of overheads and the quality and quantity of funding available to cover daily costs are needed to support local actors mitigate risks faced by COVID-19 and to build their resilience in the face of reduced global humanitarian funding.

3. Lack of equal participation in decision-making forums and clarity on Cash Coordination continue to challenge local actors and their ability to respond effectively

The need for predictable and accountable cash coordination is as much a demand as it is a pre-condition for effective CVA with local and national actors. To date, decision-making structures for CVA, including national level cash working groups, have been heavily overshadowed by INGOs and the UN. Local leadership of decision-making spaces should be a norm, not an exception. As Ms. Eyokia Donna Juliet of CEFORD Uganda highlights, the domination of decision-making groups such as international agencies’ cash working groups limits the opportunities for local actors to understand how these groups work and build their leadership capacities to take up future opportunities to lead these forums. More meaningful engagement, representation, and participation of local and national actors in those decision-making spaces also needs to be more than an aspiration and should be part of a systematic shift toward more locally-led, or at least locally-consulted decision-making.

"Short-term engagement cannot add value to capacity building or capacity sharing – breaking the capacity barrier requires long term and equitable partnerships that recognise the value of each actor individually." - Mimidoo Achiakpa, Women's Right to Education Program (WERP), Nigeria

4. Partners are still viewed as 'implementors' that need 'capacities' to deliver

Capacity gaps are commonly cited as a barrier to local actor leadership of CVA. Mimidoo referred to the cyclical relationship between capacity limitations and short-term implementing partnership arrangements.

Equitable partnerships based on complementarity and transparency are vital in ensuring that local actors are not just seen as service delivery partners but are actively involved in coordination, decision-making and resource allocation. Capacity sharing approaches that enable joint learning, development, and exchange are essential non-financial support for local and national actors.

This year, voices from local actors are finally becoming part of the narrative of CVA. The messages at the Grand Bargain cash workstream meeting were also mirrored in the local systems section of CaLP's second State of the World of Cash Report. Now it is time for a systematic shift towards listening to the voices of local actors and driving forward a more locally-defined and responsive future for CVA.