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Business Daily

Giving cash directly - the future of aid?

Aug 17, 2023
18:22

Podcast summary created with Snipd AI

Quick takeaways

  • Direct cash transfers in humanitarian aid can have real dividends by allowing individuals to address pressing needs and secure basic goods and necessities.
  • Cash payments from Give Directly have had a transformative impact in rural Kenya, reducing dependence on loans and benefiting local economies through a multiplier effect.

Deep dives

The Rise of Cash in Humanitarian Aid

Cash is becoming an increasingly important part of humanitarian aid as advocates argue that direct cash transfers can have real dividends. Providing cash allows individuals to address their pressing needs and secure basic goods and necessities. Cash transfers have a positive multiplier effect on local economies, contributing to their recovery. Even UNHCR, the UN's refugee agency, has adopted a cash-first policy, distributing money through the Egyptian Post Office Network to help Sudanese refugees. Give Directly, a charity built entirely around cash transfers, connects individual donors with recipients in extreme poverty, allowing them to make investments in their own communities.

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