The Benefits of Cash Assistance Amid Military Conflicts

The first half of 2023 has been marred by relentless military confrontations between Israel and Palestine, escalating recently to a level of severity not seen in years. The exchange of thousands of rockets between the factions has not only wreaked havoc on the battlefield but extended its vile grasp on the socio-economic fabric of the affected regions. The lives of civilians have been severely disrupted. Amidst this oppressive atmosphere, cash assistance emerges as a beacon of hope, offering a means to recovery for those harrowed by the ravages of war. This article aims to elucidate what cash assistance is, its significance, and will present relevant case studies to underline its impact.

What is Cash Assistance?

Cash assistance embodies the provision of cash or vouchers to individuals, families, or communities, enabling them to access necessary goods and services. Emerging as one of the most significant innovations in humanitarian action over the past decade, its inception was modest and met with skepticism. However, rapid evolution has positioned cash assistance as an indispensable tool for myriad humanitarian organizations amidst various global crises. In 2016 alone, humanitarian aid channeled through cash assistance soared to $2.8 billion, marking a 40% increment from the previous year, signifying a transformative shift in humanitarian aid delivery.

The roots of cash assistance trace back to as early as 1871, when the American Red Cross pioneered its use to assist soldiers recuperating from the Franco-Prussian War in establishing small businesses. Despite its early advent, the application of cash assistance in modern humanitarian endeavors was scant, often exchanged for labor or overshadowed by a paternalistic charity mindset, doubting the rational spending of cash by the recipients. Such concerns, while legitimate to an extent, highlighted the fears of heightened theft and violence risks towards vulnerable populations and humanitarian workers involved in large cash transfers.

Unlike traditional material aid, which is comprised of tangible goods like food, clothing, or medical supplies, cash assistance bestows direct financial empowerment upon beneficiaries. This paradigm facilitates a realm of choice and flexibility, enabling individuals to address their most critical needs, be it food, shelter, medical care, or other vital services. Moreover, cash assistance fosters local economic stimulation, as beneficiaries circulate the money within their communities, contributing to a more sustainable and resilient recovery.

The Benefits of Cash Assistance

Immediate Relief

Cash assistance serves as a swift response mechanism, providing immediate relief to individuals impacted post-conflict. It helps to quickly alleviate the various severe adversities they face, including economic hardships (such as unemployment and income loss), safety issues (like displacement and threats of violence), food crisis (such as food shortages), and medical dilemmas (like scarcity of medical resources). Studies indicate that cash assistance can enhance beneficiaries' spending, income, employment opportunities, and asset protection, thereby improving the living standards and food security of the impoverished and extremely poor populations.

Stimulating Local Economy

Cash assistance creates a ripple effect by directly injecting cash into the local economy. This not only provides the beneficiaries with the needed funds but also stimulates local business activities and job creation. By purchasing goods and services from local stores, beneficiaries can help stimulate business activities, support community recovery, and economic revival.

An important consideration in these war-affected regions is the potential for circulation of counterfeit currency, exacerbated by governmental disarray and lack of regulation. In such scenarios, the prevalence of fake notes can pose a significant challenge to both the beneficiaries of cash assistance and local vendors. To mitigate these risks and ensure the integrity of the monetary transactions, it's crucial for local businesses to investing banknote counters with counterfeit detections. These machines can play a pivotal role in identifying and segregating fake notes, thereby securing the finances of businesses and preserving the trust and efficacy of cash-based interventions.

Reducing Logistical Challenges

Compared to traditional material aid, cash assistance reduces the challenges related to logistics and distribution. It avoids the complexities of transporting, storing, and distributing goods, enabling aid to reach those who need it more quickly and effectively. By reducing logistical challenges, cash assistance accelerates the pace of recovery in conflict zones, offering higher cost-effectiveness for humanitarian aid.

Social Impact

Cash assistance can also generate positive social impacts, including reducing the need to resort to harmful coping mechanisms, lowering intra-family pressure, and domestic violence. Additionally, the cash assistance provided may increase the savings of beneficiaries, improve health and educational outcomes, such as increasing access to medical services, enhancing school enrollment rates, and boosting food security levels. This significantly enhances social stability and the well-being of the people post-conflict.

Case Studies

Port Harcourt Small-Scale Grant Project

In Port Harcourt, the ICRC initiated a small-scale grant project aimed at supporting a vast community. In the "Waterfront Prison" community, 60 widows were identified as beneficiaries with the help of community leaders. The ICRC did not provide business start-up capital directly; instead, it offered business skills training and formed cooperatives to ensure mutual support within groups. The program facilitated the opening of bank accounts for these widows, who previously had none, and provided an initial assistance fund of 50,000 Naira directly into their accounts. The outcome was promising; many expanded their existing business operations while others ventured into new domains like selling flowers, running grocery stalls, selling clothes, tailoring, and running eateries. The program showed a positive impact on both the beneficiaries and the entire community.

Mairhej Kamon’s Story in Lebanon

In Lebanon, Mairhej Kamon and his family were struggling to survive and facing eviction when they got in touch with the ICRC for help. Initially receiving short-term cash assistance for relief, they later received livelihood assistance. Mairhej, intrigued by the small-scale grant project idea, proposed to run an orange juice vending cart. He developed a basic business plan, received a grant of 2000 USD, and bought all necessary assets. Now, with a thriving business, Mairhej can cover most of his family's basic needs including rent, medical expenses, and utilities, and he has plans to expand his business further.

Conclusion

The harrowing tales from conflict zones underscore the invaluable role of cash assistance. Real-world examples from Port Harcourt to Lebanon not only accentuate the urgency for peace but highlight the crucial part cash assistance plays in not only providing immediate relief but also laying down the foundations for long-term recovery and economic resilience. The collective narrative cries out for a world where the dread of war is replaced by the harmony of peace and prosperity.