Cash-Based Responses in Emergencies

This paper is the final product of a three-year research project looking into when the option of giving people money instead of, or as well as, in-kind assistance is feasible and appropriate. It builds on a discussion paper published in early 2005 on the role of cash and vouchers in emergencies, on background papers, a project to document learning around cash-based responses to the tsunami and a conference held in January 2006 (Adams 2006; Adams and Kebede 2005; Harvey 2005; Hofmann 2005; ODI, 2006). The discussion paper concluded that ‘a strong body of evidence is starting to emerge that providing people with cash or vouchers works’ (Harvey, 2005: 47). Since then, cash- based responses to emergencies have become more common, with each new emergency bringing a growing body of experience, evaluation and documentation. Relief responses by national governments to the Indian Ocean tsunami and the South Asia earthquake included substantial cash-based assistance (Government of Thailand, 2005; Government of Pakistan, 2006; Adams, 2006). Disaster responses in rich countries also include a substantial amount of cash assistance (Government of Australia, 2006). In response to hurricanes Katrina and Rita in the United States, the US government provided over $4 billion and the American Red Cross $1.57 billion in cash grants to affected households (FEMA, 2006; American Red Cross, 2006). Meanwhile, valuable tools and guidelines are being developed to help practitioners plan and implement cash-based responses (Creti and Jaspars, 2006; Jaspars, 2006; Rauch and Scheurer, 2003).