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Common Donor Messages on the cash response to the escalation of hostilities in Lebanon

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Context

The severe escalation of conflict in Lebanon since September 2024, resulted in a dreadful death toll, widespread destruction of civilian infrastructure, and the mass displacement of people. Many sought refuge in collective shelters, primarily repurposed public schools while others fled across the border to Syria. Following the ceasefire on 27 November 2024, internally displaced people began to return, though the permanence of these returns remains uncertain. This unprecedented scale of displacement exacerbates Lebanon’s existing crises including a severe economic and financial crisis, widespread poverty and the ongoing Syrian refugee crisis.

Cash assistance has historically been central to humanitarian responses in Lebanon. With significant investments in systems, capacities and sensitisation enabling the delivery of cash programming at scale. This increasingly complex and rapidly evolving crisis requires all stakeholders to build upon the existing foundations, including national social protection systems, to collectively address the humanitarian needs of affected people in a coordinated and people-centered manner.

Commitment to Cash Assistance

In this context and building on the findings of the DCF Join Cash Donor Mission of June 2023, members of the Lebanon Donor Cash Forum (L-DCF), including Australia, Canada, Denmark, EU/DG ECHO, Germany, Netherland, Norway, Spain, Sweden, Switzerland, the United Kingdom, the United States, reiterate our long-standing commitment to cash assistance in Lebanon, both through humanitarian channels and social protection systems. We reaffirm our commitment to the Joint Donor Statement on Humanitarian Cash Transfers and the Good Humanitarian Donorship (GHD) principles and good practice. The above donors agree on a set of common principles to engage with our partners on how they deliver cash assistance and alignment of our funding accordingly.

Prioritising Cash and Balancing Support

I. We support the use of Multipurpose Cash Assistance (MPCA) as a preferred modality to meet people's basic needs across all phases of the response, considering their preferences, market functionality, cost-efficiency, and do-no-harm principles. Sectoral cash assistance can be used when relevant for specific needs. Coordination and deduplication with MPCA are strongly encouraged.

II. We encourage partners to prioritise cost-efficiency, while maintaining people-centred, effective, and collaborative approaches to cash program delivery. This includes leveraging complementarities between MPCA and sectoral programs and establishing strong links with protection programming.

III. While in-kind support may be essential for addressing immediate needs within collective shelters, we encourage a strategic reflection on transitioning from in-kind assistance to cash assistance where feasible.

IV. While we reaffirm the importance of cash assistance in the current context, we call for continuous evaluation of potential risks and mitigation measures, along with strict adherence to Anti-Money Laundering and Countering the Financing of Terrorism guidelines, in light of the sensitive implementation context.

Coordination

V. We support continued alignment of cash coordination in Lebanon with the Inter-Agency Standing Committee (IASC)-adopted Cash Coordination model, including the Terms of Reference for Cash Working Groups and Co-Chairs.

VI. We call for strengthening the cash coordination to prevent fragmentation and the creation of parallel systems. We recommend the immediate activation of the Cash Working Group under the leadership of the Resident Coordinator's Office, supported by a dedicated technical capacity. We advocate for 'inclusive' cash coordination that enables full participation by all donor-supported cash implementers in the Cash Working Group, ensuring local organizations' participation and inclusion in decision-making processes.

VII. We promote harmonized cash approaches under basic needs and advocate appropriate transfer values and frequency of assistance based on a periodical revision of the Minimum Expenditure Basket (MEB) ensuring consistency across different population groups.

VIII. We remain committed to working more collectively across the response. This includes encouraging and supporting joint and impartial, multi-sector and cross-sector needs assessments and response analysis; continuously tracking market conditions to assess the availability and accessibility of goods, inflation, liquidity, and access to financial service providers, confirming the feasibility of cash-based interventions as well as monitoring of social tension.

Targeting and Alignment

IX. We underline the importance of delivering quality cash response to those affected by the conflict, including Lebanese, refugees, and migrants, without prejudice and exclusively based on needs. Priority should be placed on identifying affected individuals outside of collective shelters for cash assistance.

X. We support a people-centered approach that considers population movements between Lebanon and Syria. We encourage coordination between agencies in Lebanon and Syria for innovative solutions that ensure cash assistance reaches the most vulnerable groups, regardless of their location while safeguarding their protection.

XI. We emphasize the need to strengthen linkages between humanitarian MPCA and existing social protection mechanisms such as the National Social Safety Net/AMAN and the National Disability Allowance (NDA), to ensure complementarity and a smooth transition towards a sustainable approach that maximizes impact. This includes leveraging these systems and funding from development donors to address humanitarian needs, with a focus on vertical and/or horizontal expansion of social protection systems where appropriate.

XII. We believe it is imperative to timely address challenges in the registration of internally displaced persons. Data interoperability is crucial to avoid duplication, enhance complementarities between MPCA, sectoral cash assistance and social protection schemes, and improve efficiency, while adhering to data protection and safeguarding principles.

Localization

XIII. We advocate for a government-led approach and the establishment of meaningful partnerships with local actors, including the Disaster Risk Management (DRM) unit, relevant ministries, and local and national levels authorities to better understand needs and address barriers to effective cash assistance and coordination.

XIV. We encourage the participation of affected communities in the selection of response modalities and design as well as access to transparent feedback and complaint mechanisms. This must be demonstrated in response plans and funding proposals.