The impact of cash transfers on local economies in Iraq: lessons from Baiji and Rawa

MPCA programming in Iraq is implemented at scale in multiple conflict-affected governorates. A wealth of research in multiple contexts has evidenced that MPCA increases purchasing power and, provided markets are functioning, allows crisis-affected households to meet a diverse range of their basic needs. There is some evidence to suggest MPCA also has positive effects on local markets. Recent research in Haiti and Liberia demonstrates positive effects in natural disaster and development contexts, but little exists on the local economy impacts in either Middle Eastern or conflict contexts. This research produces several findings into the micro-level, short-term effects of MPCA on markets and includes in-depth profiles of recovering, conflict-affected economies using a mixed-methods, baseline-endline approach, including the informal systems of credit and debt that sustain local businesses.