Guidelines

on

Cash for Work Programming

Mitigation of Impact of Crises on Vulnerable Population

2011

PURPOSE OF GUIDELINES

These guidelines are designed for planning and devising appropriate strategies and actions to Cash for Work programming, specially for community infrastructure restoration as early recovery support to the crisis affected communities. Cash-for-Work (CFW) is a an intervention used by humanitarian assistance organisations to provide temporary employment in early recovery projects such as restoration and rehabilitation of link roads, debris clearance; and other basic community infrastructure [1] to the most vulnerable segments of a population. The methodology is becoming increasingly common in food insecure, disaster-affected or post-conflict environments.

The document is divided in two sections. The first section gives readers set of guiding principles and criteria for piloting Cash for Work initiatives. This section discusses the rationale for cash interventions, provides an analysis of the benefits and risks of CFW implementation, determines the appropriateness of CFW programming and briefly describes the steps necessary to accomplish the goal.

The second section assists in decision making process on how “Cash for Work” can be linked with mitigatation of impact of crisis on vulnerable segment of society specially prevention and elimination of child labour from disaster affected regions. It introduces a new paradigm for understanding the relationship between early recovery with development initiatives in the provision of humanitarian assistance aiming to decrease children’s vulnerability and prevent them from labour exploitation in Pakistan alongside touching upon certain issue of women which are the most affected ones during a crisis.

These Guidelines introduces this aspect of disaster management to an audience of UN organisations, national and international non-governmental organizations and professionals responding to the early recovery needs during and after disasters and conflict situations. Its application is, however, encouraged, at the user’s discretion, beyond the early recovery scope.

Definition & Concepts

Cash for Work / Payment is provided to individuals in compensation for their labour on temporary basis.
Child / Any person less than 18 years of age
Child Labour / Work done by children that restricts or damages their physical, emotional, intellectual, social or spiritual growth as children, and that denies them their right to fully develop, to play or to go to school.
Conditional Cash / People are given money with conditions on how the cash is spent, for instance transfers stipulating that it must be used to pay for the reconstruction of the family home. Alternatively, cash might be given after recipients have met a condition, such as enrolling children in school or having them vaccinated.
Early Recovery / The overall focus of the recovery approach is to restore the capacity of national
institutions and communities to recover from a conflict or a natural disaster, enter transition or ‘build back better’, and avoid relapses. Early recovery is a multidimensional process guided by development principles that begins in a humanitarian setting, and seeks to build on humanitarian programmes and catalyze
sustainable development opportunities. It aims to generate and/or reinforce nationally owned processes for post-crisis recovery that are resilient and sustainable. It encompasses the restoration of basic services, livelihoods, transitional shelter, governance, security and rule of law, environment and other socio-economic
dimensions, including the reintegration of displaced populations. It strengthens human security and aims to begin addressing the underlying causes of the crisis
Hazardous Forms of Child Labour / Work which, by its nature or the circumstances in which it is carried out, is likely harm the health, safety or morals of children.
Labour Exploitation / To profit from the labour of others without giving a just return such as minimum wage, reasonable working conditions, acceptable labor standards, etc.
Light Work / Work which is not harmful to a child’s health and development’ and not prejudicial to child’s attendance at school and participation in vocational training nor the capacity to benefit from the instruction received
Minimum Age of Admission to Employment / The minimum age for admission to any type of employment or work which by its nature or the circumstances in which it is carried out is likely to jeopardize the health, safety or morals of young person. Acceptable minimum ages of children for admission into employment are:
Light Work : above 12 years
Fulltime Employment : above 14 years
Hazardous Employment : above 18 years
Un-Conditional Cash / People are given money as a direct grant with no conditions or work transfers requirements. There is no requirement to repay any money, and people are entitled to use the money however they wish.
Vulnerability / The conditions determined by physical, social, economic, environmental and political factors or processes, which increase risk and susceptibility of people to the impact of hazards.
Voucher / A voucher is a paper, token that can be exchanged for a set quantity or value of goods.
Worst Forms of Child Labour / The term comprises:
(a) all forms of slavery or practices similar to slavery, such as the sale and trafficking of children, debt bondage and serfdom and forced or compulsory labor, including forced or compulsory recruitment of children for use in armed conflict;
(b) the use, procuring or offering of a child for prostitution, for the production of pornography or for pornographic performances;
(c) the use, procuring or offering of a child for illicit activities, in particular for the production and trafficking of drugs as defined in the relevant international treaties;
(d) work which, by its nature or the circumstances in which it is carried out, is likely to harm the health, safety or morals of children.

SECTION I

I.  The Impact of Disasters on Vulnerable Populations

Disasters vary considerably in the scale of their impact, the geographical scope and the duration of effects. These may include flooding, landslides, storms, earthquakes, drought or armed conflict. The classification of emergencies or disasters is based on the level of damage and impact, which is visible in different elements; damages to infrastructure, to the population and its humanitarian condition, to economic development and to the environment.

Disasters pose enormous challenges to families and communities, and affect many aspects of people’s lives and livelihoods. Emergencies can decrease access to both food and non-food resources, destroy or reduce asset holdings, create risks to health (through increased exposure to disease or destruction of health services) and reduce people’s protection through greater exposure to violence, abuse and exploitation[2]. The immediate effect of a disaster is the emergence of basic needs of the affected population. These can be related to the condition of or access to; health, water, food, shelter, source of income, and protection.

Changing in demographics, especially a change in vulnerable population, implies an associated potential change in the societies, a change that makes societies more vulnerable to hazards. Vulnerability as insufficient capability focuses on an entity’s lack of capacity to mitigate, prepare for, respond to, and recover from a disaster[3]. In this perspective, the degree of vulnerability is reflected by the ability of individuals, organisations, or communities to protect themselves from a hazard and to cope with a disaster effectively.

Often, vulnerability, as defined as insufficient capability, is linked to specific groups of people or populations. Those who can be thought of as vulnerable people are the underclass, the poor, the homeless, mothers and children or minorities who find it hard to protect themselves in disasters. Vulnerable populations are more affected by the same disaster faced by non-vulnerable populations. Moreover, among vulnerable population, the impacts of disasters vary depending on how vulnerable a person is. For example, a person who is old, disabled, children, a single-mother, being an immigrant, and living in hazard prone areas will be more affected by a disaster than one who is only poor, or disabled, or old, or being a single-mother, or a non-vulnerable person who lives in hazard prone areas. Thus, a person who possesses more than one or all characteristics of vulnerability would be more susceptible to and affected by a disaster than one who possesses only one or fewer characteristics of vulnerability.

Disasters put children at higher risk, not only because of changes in access to resources and in the environment, but also because of the strategies children and families may be forced to adopt, such as taking children out of school to save money or due to destruction or displacement, not seeking health care because of the cost or not seeking it until children are seriously ill and engagement in exploitative labour relations including child labour. It is important to address vulnerabilities of children because they become the most dependent persons who extensively rely on assistance from others in disasters.

II.  Disasters Management and Importance of Cash Transfer Programmes

The first phase of the disaster involves a population’s inability to self-sustain itself, a period which requires immediate assistance and activities required for a means of living. It requires support and strengthening of its recovery capacities and continuity in the development process.[4] Disasters can therefore create a wide range of assistance and protection needs, including the need for[5]:

a.  Essential commodities to meet basic needs (food, kitchen utensils, hygiene items, clothes).

b.  Access to services (healthcare and education).

c.  Livelihoods or other assets (livestock, agricultural inputs, housing, materials for small scale business).

d.  Rebuilding social networks (e.g. care for children separated from their families).

e.  Ensuring the protection of emergency-affected populations from violence, abuse and exploitation especially children because they become more vulnerable to kidnapping, early marriages, trafficking or sexual abuse.

f.  The psychosocial effects on the population of disasters are immense, and require specialised support on continuous basis.

Humanitarian agencies are continually evolving their strategies and tools for tackling disasters. For the past few decades, the focus has been on how best to provide goods and services needed by disaster-affected populations to meet their basic needs and rebuild their livelihoods. In recent years, “cash transfers” have gained attention in disaster management[6]. Cash transfers are a mechanism or tool for providing people with resources in disasters, involve providing cash or vouchers directly to households, as opposed to providing a service or a commodity. Cash transfers are used to address social and economic vulnerabilities such as poverty, old age, disability or unemployment and to complement household income in times of exposure to shock.

A key advantage is that unlike in-kind aid, cash allows households flexibility in deciding their spending needs, promote dignity and in some instances will be quicker and more cost-efficient than providing in-kind commodities[7]. Cash can help generate local market activity and restart livelihoods. It is often a more empowering and dignified form of support. This can have positive results for children through its impacts on nutrition, health and education. Items purchased by households will be culturally appropriate and suit their specific needs.

In many emergency contexts, markets are still functioning (or can quickly recover), which means that distributing cash can be an appropriate way of meeting people’s needs. Most people live in cash economies where people earn money and buy much of what they need on the market. In general, cash transfer programmes aim to increase the purchasing power of emergency-affected populations, but they may also have specific objectives such as increasing access to food, services and other goods, rebuilding livelihoods or assisting people to build houses[8]. Cash could also be provided to increase access to public goods such as health, education or veterinary services. Cash transfers can be targeted at the most emergency-affected populations or areas and/or at specific groups, for example guardians of separated or orphaned children and families of malnourished or other vulnerable children, or on the basis of more general socioeconomic criteria.

In quick-onset natural disasters, cash may be a difficult option in early stages due to displacement, disrupted markets, and damage to infrastructure, but it may be more feasible during the recovery phase. Depending on the context, the recovery phase can start anywhere between one week and several months following the disaster[9].

Cash transfers provide an important risk management tool for the poor at three levels: reducing the poverty resulting from shocks (drought, floods, sudden food price increases, and others), reducing vulnerability and strengthening coping mechanisms. Depending on the circumstances, cash transfers may offer the following advantages[10]:
Choice: Cash gives households a greater degree of choice and permits them to spend money according to their own priorities.
Cost-effectiveness: Cash is likely to be cheaper and faster to distribute than alternatives such as restocking, seed distribution, and food distribution.
Dignity: Offering cash maintains people’s dignity, by giving them choice. Delivery mechanisms do not treat them as passive recipients of relief.
Economic recovery: Injections of cash have potential benefits for local markets and trade.
Flexibility: Cash can be spent on both food and non-food items and is easily invested in livelihood security.
Empowerment: Cash can improve the status of women and marginalised groups.

III.  Introduction of Cash for Work Programmes in Emergencies

Nowadays almost everyone lives in a cash economy: people earn wages, sell goods or services, and buy what they need with cash. Giving people money is therefore the most obvious and simple way of providing assistance in disaster. But emergency relief is dominated by the distribution of in-kind commodities, in particular food aid. In many disasters, the problem is that people are unable to buy food and other basic goods – not that such items are unavailable. If markets are still functioning, emergency-affected populations can be supported to buy the commodities that they need on the market[11].

People affected by disaster often seek an income, for example by moving to another area to find work or by selling off their assets. They need to maintain their food consumption against the need to protect their future income-generating capacity and livelihoods. Providing cash to populations affected by disaster may help them to avoid resorting to coping strategies that are damaging to their livelihoods or dignity, such as the sale of productive assets, sending children to work or illegal activities.

1.  What is Cash for Work?

Cash for Work is the distribution of cash in payment for work that is done on communal projects to improve or rehabilitate community services or infrastructure[12]. Cash for work differs from casual labour in that it is targeted at the poorest or most food-insecure members of the community. Cash for Work often has dual objectives: providing income for participants and creating useful community (and sometimes individual) assets. In emergencies, providing people with an immediate income is usually the primary objective, with asset creation as a secondary aim.