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Wednesday, Oct. 21, 2020

Are direct cash handouts an effective form of humanitarian aid?

Eric Smith, Gigafact
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.

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