Introduction
Cash-Based Interventions are a type of market-based intervention that use local markets and services to meet the needs of the people affected by the crisis, in this case, to carry out light and medium repairs to the houses and apartments affected by the conflict. They can be stand-alone or used in combination with in-kind assistance. Implementing cash-based interventions is not an activity in itself but a tool to implement one. During the project planning phase, it is necessary to evaluate whether CBI is the right tool to achieve the outcomes and what are the key elements to choose the most appropriate modality. This document is intended to provide guidance on how to choose whether CBI is the right assistance modality and, if so, what are the different options to carry it out.
Targeting
The selection of beneficiaries will follow the general criteria for shelter activities1
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Household vulnerability
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Beneficiary does not have a second home to which he/she can move to
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Beneficiary does not have the means to carry out the repairs itself
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Beneficiary is not in receipt of any other housing-related assistance from another organization or from the administration
For the CBI modality, it is important to pay attention to protection-related concerns
- The risk assessment determines that the beneficiary is not exposed to additional risks arising from the assistance modality
Market Assessment
The market assessment is important to analyze the feasibility of the CBI and the choice of cash transfer modalities. The analysis should include an assessment of whether people will be able to buy what they need, without causing undue inflation. The key purpose of market assessment is:
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Know how the crisis has affected markets for materials and services. Evaluate whether the crisis has caused prices to rise, or has limited access to credit for sellers, or has caused labor shortages. Some materials may not be available due to interruption of production or interruption of imports, or logistical difficulties resulting from damage to infrastructure.
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Predict the supply of materials and services in the coming weeks. Analyze if the local market can be replenished to keep up with the increase in demand, if there are goods in stock, if there are alternative suppliers, etc.
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Identify actions that can have a quick and important impact on the market. Such as a sudden increase in demand due to the activation of reconstruction projects or an interruption in supply due to damage to warehouses or means of production and infrastructures.
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Identify and assess Financial Services Providers, infrastructure environment and regulatory considerations in the operating context.
The level of the assessment depends on the program and the stress it may cause in the markets.
Sometimes it is enough to analyze existing information.
Market assessment tools: RAM (Rapid Assessment for Markets) ; Minimum requirements for Market Analysis in Emergencies CBI programs can have a positive impact on markets and a multiplier effect on local recovery. Given the right conditions, cash distributions can reinforce pre-existing networks and supply chains and promote localization, as beneficiaries are more likely to choose local vendors and workers.