Typhoon Haiyan Response Experience. PHILIPPINES Innovations in
Cash Programming
Slide 2
2 BACKGROUND 1 Adapted from The Use of Cash and Vouchers in
Humanitarian Crises DG ECHO Funding Guidelines 2 Adapted from New
technologies in Cash Transfer Programming and Humanitarian
Assistance Report Cash Learning Partnership Cash Programming the
use of money or similar instrument to assist beneficiaries through
cash, e-payments, and/or vouchers Grants Funds directly from
donors; beneficiary is not expected to pay back or contribute to
funds or service provided Microfinance Loans and other financial
services such as insurance, savings, etc.; require the beneficiary
to repay the funds or goods provided Funding Mechanism Cash/Cash
Transfer Programming Provision of money to individuals or
households, either as emergency relief intended to meet their basic
needs for food and non-food items, or services, or to buy assets
essential for the recovery of their livelihoods. Program Model
Conditional Cash Transfer Beneficiaries are required to fulfil a
specific activity (eg. attending school, health check-ups, building
shelter) to receive benefit Program Modality Unconditional Cash
Transfer Beneficiary does not have to do anything specific to
receive the benefit Electronic Payment (E-payment) Systems Use of
pre-paid debit cards, smart cards, mobile money transfer systems to
replace the use of physical cash 2 Traditional Cash Delivery
Disbursement of cash or currency to the beneficiary Traditional
Vouchers and E-vouchers Can be exchanged for pre-defined
commodities in designated places.. May be denominated either in
cash, commodity or service value. Delivery Channel
Slide 3
The Disaster Response and Resilience Cycle Disaster Model
adapted from Disaster and Development, Dr Andrew E. Collins Relief
A day after a Typhoon hits- WVI is on the ground providing food and
other much needed necessities Mobile communications allow WVI to
provide aid allowing families to register and access commodities
through phone WVI ensured food is already available at the regional
grocery store through e-vouchers Preparedness Bank account through
a savings program with an optional insurance policy through the
online platform offered by VisionFund Using mobile money network to
access loans including disaster insurance Recovery Loan insurance
payout is disbursed directly to their bank/mobile money account
Cash loans can be used to buy belongings that were lost during the
disaster & repaid in installments through mobile platform
Rehabilitation Start-up loans to restore business
Slide 4
Cash Programming in Typhoon Haiyan Response Cash Transfers
Conditional/Unconditional vouchers with cash, commodity, or service
value Enhanced by Last Mile Mobile Solutions (LMMS) Microfinance
Providing access to credit, insurance, and/or savings vehicles
Partnership with CEV/Visionfund E- payment systems Using pre-paid
debit cards, smart cards, mobile money transfer systems and
electronic vouchers to replace the use of physical cash or
equivalent currency 2
Slide 5
LMMS Gathers complete, accurate and verifiable aid recipient
registration information Strengthens the delivery of humanitarian
services such as planning and running commodity distribution and
monitoring metrics Enables fast access to detailed reports and
digital data for tracking and analysis to ensure that program
quality and humanitarian standards are met Last Mile Mobile
Solutions
Slide 6
Verify registration Scan ID card Claim cash LMMS on the field
in the past it took us almost a day before we get our entitlements.
But here, its fast and efficient - like getting money from the
local remittance center. -Victoria Sombito from Concepcion,
Iloilo
Slide 7
572,366 individuals benefited from LMMS which fast-tracked cash
for work, unconditional cash transfers and general food
distribution.
Slide 8
MICROFINANCE (CEV / VisionFund)
Slide 9
Slide 10
E-PAYMENT SYSTEMS (BanKO) Rosemarie Borja, survivor in Dagami,
Leyte - Benefited from a start-up business as part Of WVs
livelihood/recovery intervention - Used Bankos mobile bank system
to purchase goods worth Php10,000 ($230) for her sari-sari
store
Slide 11
E-PAYMENT SYSTEMS (Mastercard Aid Solution) To be used in the
rehabilitation phase, Master Card Aid Solution 1.Allows the NGO
client full control of the program 2. Fast and can be effectively
monitored anytime 3. Can adapt to our own internal system(LMMS) 4.
Reports to Ops and Finance on a real-time basis 5. Reporting
timelines are greatly enhanced and turnover times are significantly
reduced
Slide 12
Options in Various Contexts Mastercard Aid ToolYes Yes
Slide 13
OrganizationCash Programming Microfinance/ Inclusive Financial
Services Mobile Money Unrestricted Cash Transfer for 8,000 families
and partnership with BanKO/Globe during Haiyan Response Partnership
with IDEO for longer- term financial security offerings (2014)
Reached over 244,000 people with $327M in outstanding loans Used
mobile money when T-cash was introduced in Haiti in 2010 Utilized
partnership with BanKO to disburse unrestricted cash transfer for
victims of Haiyan Cash transfer for Syrian refugees in Turkey
Shelter and rent assistance in Syria Cash-based program in shelter
in Central African Republic Cash for work to clear debris targeting
; assisted 15,000 people after Haiyan CRS microfinance programs has
helped over 1M in 35 countries with savings of around $10.7M
Utilized T-Cash in Haiti in 2011 Partnered with Tufts University
for a m-money program in Ghana (2013) Cash transfer programs,
Hurricane Mitch (Agricultural Support Program) Cash program with
debit cards for Syrian refugees, in Jordan (2013) Cash Assistance,
Haiyan (2014) Long history of micro-economic initiatives (Kosovo,
2001-2004; Kashmir, 2007, etc.) Used mobile money for cash for work
program in Kenya (2010) Cash for Work program in Haiti (2010) as
Cash for Work partnership with Oxfam for Haiyan (2014) Microfinance
Initiative started in 1995 Microfinance involvement in West Africa,
including in Ghana with Barclays Bank and Hopeline (2011) Piloted
mobile money program in Uganda in 2012 Other INGOs which have
adopted Cash Programming
Slide 14
OrganizationCash Programming Microfinance/ Inclusive Financial
Services Mobile Money Typhoon Haiyan, Philippines - Cash grants to
re-build livelihood Syria - Cash assistance through debit cards
Vietnam - Small loans to groups of women who guarantee each other
Azerbaijan - Azeristar created in 1999 and financing 3,630 active
borrowers Malawi - Cash transfer program provided participant with
mobile phone with a monthly SMS entitling them to collect cash from
Airtel Vodafone research used mobile carriers to achieve goal of
reaching 10m children/year by 2015 Oxfam and its subsidiaries have
been using various forms of cash programming since the 1990s Cash
for Work program Haiti (2010) Cash for work in Niger (2012) Russia
Supporting young entrepreneurs; Haiti Financing community canteen;
Afghanistan Small loans for women Guatemala, partnered with Tigo to
distribute aid using mobile money to people affected by
malnutrition Mogadishu - E-Cash Program used free mobile phones for
families Provide cash assistance through various microfinance
initiatives Philippines - MABS encouraged the rural banking
industry provide Housing Microfinance Agricultural Microfinance
Micro insurance Offered mobile phone banking services, such as
Text-A-Payment, Text-A-Deposit and Text-A-Sweldo (salary).
Philippine Disaster Recovery Foundation Provide cash assistance
through various small loans/microfinance initiatives Livelihood
rehabilitation program granted worth P30,000 ($700) start-up loans
for small store business Some INGOs/NGOs which have adopted Cash
Programming
Slide 15
Cash Programming supports Child Well-Being Children are well
nourished Children are protected from infection, disease and injury
Adolescents are ready for economic opportunity Children and
caregivers have access to health care Children are cared for in a
loving safe family and community Parents and caregivers provide
well for their children Cash Programming redefines the added value
in humanitarian work.
Slide 16
Slide 17
Humanitarian and Disaster Management Trends Rural vs urban
Growth of urban population Applicability of rural disaster response
solutions in urban context Growing government/private sector roles
in resilience and sustainability Traditional vs market-based
solution Business models to design and sustain solutions Shifting
ecosystems Increasing role of private sector CURRENT Private
funding in humanitarian response grew from 17% in 2006 to 32% in
2010 (totaled US$5.8 billion that year). FUTURE Contributing skills
and capacity more direct role in service delivery + scale UN
agencies have dedicated unit to engage private sector. Growing role
of technology Early warning (ex. Via SMS during Hurricane Sandy )
Programming innovations (mobile banking, 3D printing) Real-time
monitoring (ex. crowd- sourcing, equipping groups with cellphones
to give emergency updates) Real-time feedback (ex. Used by Danish
Refugee Council in Somalia) Monitoring and evaluation New Funding
technologies (Bitcoin) Increasing cash transfers To reduce cost in
transporting food, surplus production to dispense as food aid
Widens choice to cash transfers & vouchers More countries
develop safety-net programs (through employment guarantee schemes,
conditional or unconditional cash transfers, unemployment or
agricultural insurance, etc.) Redefining Humanitarian value add
Sets the space for experimentation, innovation, and partnerships
Changing Donor Scene CURRENT UN agencies International donors iNGOS
FUTURE Private sector Emerging donors Local NGOs Citizen groups
OECD donor aid fell by 11% (biggest fall) in 2012 Turkey 4 th
largest donor in 2012 Privatized aid donors funded 26% of all
reported aid in 2012 The old ways of working were no longer
relevant
Slide 18
Learnings from Consortium and Potential Partnerships show that
Partnership Interviews withKey Themes / Learnings Partnerships/Role
of Consortium Organizations 1 Partnerships mostly share information
and best practices; Opportunities lie in shared infrastructure to
reduce costs Consortiums focus on capacity building, advocacy, and
providing technical expertise; coordination across humanitarian
organizations is key gap Cash-Related Challenges Identified at
INGOs 2 Benefits of cash programming are appreciated, but NGOs
still learning to use the tools Training and internal advocacy
steadily changing perceptions Scale remains biggest challenge; many
pilots didnt scale up Private Sector seeking partnerships with NGOs
3 Mobile operators offer partnership agreements tested with other
NGOS to disburse and collect payments NGO community seen as
partners in driving programming opportunities Partnerships are key
to delivering cash and mobile programming.
Slide 19
Peer Organizations InterviewsKey Themes / Learnings Cash Based
Approach is Still Limited to Pockets 1 Mostly applied in Cash for
Work and food substitution Other bigger NGOs have explored
multi-sectorial approach Leading NGOs are developing standard
procedures and testing cash models; limited to geographic priority
areas Biggest Challenge Remains Organizational Attitudes 2 Many
NGOs have accepted the value of cash based programming, but biggest
challenge remains changing organizational attitudes E-Payment
Initiatives 3 E-payment adoption is slower among interviewed
organizations- exceptions include Mercy Corps and limited
initiatives within CRS Some INGOs which have adapted Cash
Programming