There’s a growing recognition of how providing direct humanitarian assistance in the form of cash or electronic vouchers, instead of physical goods, pays off. It can be cheaper to deliver and also offers people greater freedom to tailor their spending.
Since 2011, the World Food Program has dramatically shifted its focus to cash-based transfers. While 5 percent of its entire assistance was comprised of CBT in 2011, more than 25 percent of its funding was devoted to this type of aid last year, according to Arif Husain, the Rome-based organization’s chief economist and head of food security analysis.
“It is the right thing to do, essentially it gives people the flexibility in what they want to buy. If you have meat, you give them meat, if you have rice, you give them rice,” Husain explained. “With vouchers or cash, you give people the ability to make their own choices, which is obviously much more significant and empowering. For us, it is really important to move from food aid to food assistance, which is more than physical aid.”