Are vouchers an alternative to cash in humanitarian aid

Are vouchers and cash the future of humanitarian aid provision? [European Commission DG ECHO/Flickr]

The popular image of humanitarian aid in public consciousness is of trucks loaded with essential foods being handed out to refugees.

But increasingly, humanitarian organisations have been turning away from transporting bags of commodities to crisis areas, and are instead focusing on giving refugees the means to buy their own food.

The UK-based Overseas Development Institute estimates that cash and vouchers now account for around 6% of total humanitarian spending, up from less than 1% in 2004. That is still a small amount but the United Nations World Food Program says cash now accounts for just over a quarter of its assistance.

Cash and vouchers are particularly popular in urban areas, and have been extensively used to support Syrian refugees. That often means vouchers that can be used at supermarkets or even cash wired directly to those in need.

International organisations and local authorities have been supporting cash transfers (cash and vouchers) in their humanitarian aid provision for refugee programmes in Greece and Turkey.

In September 2016, the Commission announced a €115 million support programme providing direct assistance to refugees through cash transfer schemes. Earlier this month, the EU executive committed a further €180 million for aid projects in Greece, which is likely to include more voucher projects.

EU Humanitarian Aid has also been a partner in setting up the Emergency Social Safety Net (ESSN) programme is a partnership together with the World Food Programme (WFP), the Turkish Red Crescent and the Turkish government.

Aside from the dignity and choice that cash and vouchers offer, they are also seen as a more effective method of supporting the local economy.

Traditional in-kind assistance – like soap, blankets, rice – is often sold by refugees below market price, to get something they need more. Cash transfers allow them to keep the full value of the support they receive, and to prioritise according to their needs.

“Vouchers, whether they are paper, cards or digital, cumulate the flexibility of cash and the transparency of in-kind benefits,” says Nolwenn Bertrand, Public Programme manager for Edenred, a company which designs voucher schemes.

She told EURACTIV that 160,000 families in Turkey have benefitted from a voucher programme started in 2014, under which they received an average of $30 per month, which was loaded onto a card.

In Greece, meanwhile, Edenred has been part of a programme with the UNHCR offering vouchers for food and hygiene products.

If cash offers recipients more choice, vouchers are popular with the donor community because it helps ensure that funds are used as intended while respecting the dignity of the users. Since the funds supporting the system are public, it is important that programmes provide robust tracking measures to ensure correct and efficient usage.

However, vouchers are in a ‘half-way house’ between cash and in-kind support, treated by the Commission as being ‘like cash’ even if the characteristics of voucher schemes are very different from money.

EURACTIV understands that the Commission is currently more focused on increasing its direct cash programmes in humanitarian aid but is open to increasing the use of voucher schemes.

“The European Commission is committed to using the most effective and efficient modality in the provision of humanitarian assistance,” said Eunice Maina, the European Commission’s humanitarian programme assistant for Uganda.

Supporter

EDENRED

Edenred is dedicated to design, develop and manage adapted solutions whose goal is to meet the employees’ needs. The meal and food vouchers system has been in practice worldwide for more than 50 years. Today, used by more than 43 million people every day in 42 countries, meal vouchers are part of their daily lifestyle, offering them administratively simple, cost effective and easy solutions that are highly motivational.


What are vouchers?

EDENRED PDF


Social vouchers

Edenred has also been developing, on request, some programmes to assist states, public institutions and NGOs to develop their welfare policy in several areas through vouchers (be they paper, cards or E-vouchers).

Such smart subsidies programmes for public institutions, executive agencies and financial donors provide an alternative to distribution of social allowances in cash grants or in benefits in kind. They are tailor made and guarantee transparency and correct use in a dedicated network in areas such as food, education, agriculture, transport, health…

Click here to know more about voucher solutions in development and humanitarian assistance programmes.

Subscribe to our newsletters

Subscribe