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Please note!
This fact brief was originally published as an experiment to test the concepts behind fact briefs.
Readers should be aware that while there is still a lot of useful information in fact briefs like this one, not all of them reflect Gigafact's current methods and standards for fact briefs. If you come across any that you feel are out of date, don't hesitate to contact us at support@gigafact.org.
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FACT BRIEF

Are direct cash handouts an effective form of humanitarian aid?

By Eric Smith
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YES

Increasingly, direct monetary assistance is being recognized as an effective form of humanitarian aid. Numerous studies from organizations like the Center for Global Development and the Organization for Economic Cooperation and Development have established that"cash-based transfers" to developing countries "are usually cheaper and support local market recovery" better than donated aid supplies or manpower.

A CGD four-country study found "18% more people could be assisted at no extra cost if everyone received cash instead of food."

A UN report found that every $1 of cash aid generated more than $2 of indirect market benefits in recipients' communities by enabling investments and local demands for goods and services.

The United Nations World Food Program, which won the 2020 Nobel Peace Prize, in 2019 transferred $2.1 billion to people in 64 countries.

This fact brief is responsive to conversations such as this one.
Sources
OECD: Cash-based response (page 3)
reliefweb: Cash-based social assistance is cheaper than food distribution in emergencies
The Center for Global Development: How cash transfers can transform humanitarian aid (page 6)
UN World Food Program: Cash transfers
ABOUT THE CONTRIBUTOR
Gigafact
Between 2020 and 2022, under close editorial supervision, Gigafact contracted a group of freelance writers and editors to test the concepts for fact briefs and provide inputs to our software development process. We call this effort Gigafact Foundry. Over the course of these two years, Gigafact Foundry writers published over 1500 fact briefs in response to claims they found online. Their important work forms the basis of Gigafact formats and editorial guidelines, and is available to the public on Gigafact.org. Readers should be aware that while there is still a lot of relevant information to be found, not all fact briefs produced by Gigafact Foundry reflect Gigafact's current methods and standards for fact briefs. If you come across any that you feel are out of date and need to be looked at with fresh eyes, don't hesitate to contact us at support@gigafact.org.
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About fact briefs published on Gigafact
Fact briefs are short, credibly sourced summaries that offer “yes/no” answers in response to claims found online. They rely on publicly available, often primary source data and documents. Fact briefs are created by contributors to Gigafact —a nonprofit project looking to expand participation in fact-checking and protect the democratic process. See all fact briefs here.