Once choosing cash as a response option, there are a variety of things to consider when deciding the mechanism of payment. Beneficiary preference, government regulations, Local markets and suitability/reliability just to name a few. There are a number of tools that can help you
• Comparing response modalities and delivery mechanisms
• Advantages and disadvantages of CTP delivery mechanisms
• Cost efficiency calculation template
• Decision making matrix template
• Assessing service providers template
The Roadmap for CTP service provider selection and contracting provides a summary of things to consider and can be found in the toolkit under set up and implementation section.
Additionally, information can be found under feasibility, modality and mechanism in the response analysis section of the cash in emergencies toolkit.
Follow up: I know there are different ways to distribute cash but isn’t just cash in an envelope the fastest and easiest way?
Cash in envelopes can be labour intensive, require strict controls and oversight, could cause higher security risk and difficult to control if the cash is meant for a specific purpose. With these in mind, cash in envelopes could still be the most appropriate option. The process outlined above will enable you to decide.
Follow up: What about vouchers? They make sure people spend it on what they’re supposed to and we don’t have to worry about theft of cash.
Vouchers can advantages and disadvantages just like cash. Voucher systems take time to set up, will be limited by trading capacity and will also still require monitoring of items being sold to ensure quality. As with any modality or mechanism, response options and mechanisms should be analysed and chosen using the guidance and tools above.