Today the vast majority of humanitarian aid distributed following a disaster is in the form of goods — be it food, clean water, shelter or other needs. But only a few percent of the $22 billion spent on disaster response finance is distributed through humanitarian or currency payments.
The system has worked this way for good reason, because often the local infrastructure may be damaged or gone in the immediate aftermath. However as we see more protracted disasters or conflicts, which may require a response that can last for years, finding new ways to work may be important.
In the case where immediate supplies aren’t needed providing money — by way of cash, electronic payments, a paper voucher or a gift card will allow people to buy goods and services. It’s been shown to be both cheaper and more effective. Local economies bounce back faster and the recipients are empowered and are treated with greater dignity.
Watch the above video to learn more about this issue of humanitarian or currency payments.
About the author
Adva Saldinger@AdvaSal
Adva Saldinger is a Senior Reporter at Devex where she covers development finance, as well as U.S. foreign aid policy. Adva explores the role the private sector and private capital play in development and authors the weekly Devex Invested newsletter bringing the latest news on the role of business and finance in addressing global challenges. A journalist with more than 10 years of experience, she has worked at several newspapers in the U.S. and lived in both Ghana and South Africa.
