Whether or not cash responses are appropriate, efficient and effective depends on context and will vary over time as markets recover following disasters. Where appropriate, evidence suggests that cash can be an efficient and effective part of humanitarian response with positive multiplier effects on local markets.
Evidence on the cost and economic impacts of humanitarian cash transfers matters. Whether cash, vouchers or in-kind assistance are provided as humanitarian relief it is important to understand the cost efficiency of different transfer modalities, their comparative effectiveness in meeting defined objectives and the impact on local economies and markets.
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