F . TOPIC . Cash Transfers as a Tool for Post-Conflict Transition and Poverty Reduction ( 688 )
Observation .
Post-conflict countries need well-planned and predictable assistance to promote sustainable economic growth , reduce poverty , and build institutions / capacity for providing essential services to citizens . Recent study indicates that " cash transfers " can help the immediate needs of poor households in a post-conflict country for meeting basic living necessities . However , there is little evidence that cash transfers can contribute to poverty reduction or to the government ’ s ability to assume and sustain provision of services .
Discussion .
The Overseas Development Institute ( ODI ) - an independent think-tank in Britain which focuses on international development and humanitarian issues – conducted a 3-year study ( funded by the Swiss Agency for Development Cooperation , 2006-2009 ) on the topic of " cash transfers " in post-conflict countries and fragile states . Part of this study included casework in Sierra Leone and Nepal - two countries that were recovering from 10-year civil conflicts . For these two countries , the main goals of the research & analysis were : ( 1 ) to assess receptiveness for using cash transfers as a tool for " social protection " ( with the aim of empowering vulnerable populations , such as women , war widows , orphans / street children , sick , elderly , and veterans ), ( 2 ) to determine to what extent cash transfers ( greater cash transfers ) could contribute to poverty reduction , and ( 3 ) to examine the role of cash transfer programming in the context of new state development and social cohesion within a fragile peace process .
With regard to the first goal of the study - determining receptiveness for using cash transfers for " social protection " - it was found , in Sierra Leone , that there was reluctance on the part of both donors and the government to put much emphasis on implementing further cash transfers . Donors and government officials were both concerned about whether markets would function well enough for economic program objectives to be achieved if cash , rather than in-kind transfers ( food aid , agricultural assistance , basic necessities , etc .) were given to various target population groups . They believed that the government ' s limited institutional capacity would be a major barrier to effective delivery of additional cash transfers . They also felt that cash would be more prone to corruption than other forms of assistance . Additionally , they had the concern that cash , in particular , would create expectations of long-term support among beneficiaries .
The receptiveness in Nepal , on the other hand , was much more positive . In this country , cash transfers had been provided by the national government to the elderly , the disabled , and the widowed for an almost 15-year period . Both donors
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