Question:
What unintended negative consequences have been identified as possibly resulting from cash transfer programming in fragile contexts and how have these been managed?
Summary:
Risks associated with cash transfer programmes in fragile contexts include theft, diversion, corruption, security, targeting, misuse by beneficiaries and inflationary effects. However, the literature indicates that – while different – these risks are no greater than those associated with other forms of aid, e.g. vouchers or in-kind goods, and could even be less. Cash transfer programmes have been successfully implemented in fragile contexts, including Afghanistan, Pakistan, Somalia, the Democratic Republic of Congo, Chechnya and Syria.
