For decades, humanitarian agencies have responded to the food needs of people suffering the effects of disasters and war by providing them with in-kind food aid. This is changing. It is now accepted that cash can be an alternative or complement to in-kind assistance. Where markets are functioning and cash transfers are the most suitable response, people can purchase what they need according to their own priorities. Cash transfers are not a panacea; nor are many of the concerns that still accompany their use in humanitarian response realised in practice. Aid agencies and donors have accepted that cash and vouchers can be appropriate and effective tools to address a wide variety of needs, from accessing food to rebuilding homes to supporting livelihoods.
A firm signal of the acceptance of cash and vouchers as mainstream humanitarian tools is the Food Assistance Convention. Through this international treaty, which entered into force in January 2013, countries commit to providing certain amounts of annual food assistance. Unlike its predecessor the Food Aid Convention, food aid is no longer the only tool through which countries can achieve their commitments; cash and vouchers are considered as contributions. This transition from ‘food aid’ to ‘food assistance’ poses unique opportunities for the Canadian Foodgrains Bank (CFGB), which is a key instrument through which the Canadian government meets its obligations under the Food Assistance Convention.
In order to make informed decisions on when to use cash, vouchers and food aid, it is important to understand evidence on their appropriateness and effectiveness in achieving certain objectives. A main objective of the Canadian Foodgrains Bank is to improve food consumption in emergencies, and this paper reviews evidence on the impact of cash and vouchers in achieving this result. While this review focuses on food consumption, there are many other factors that are important in considering the appropriateness of cash, vouchers and food aid in a given context, including markets, cost, risk, gender and the impacts of different transfers on households, communities and markets.