Cash transfer

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A cash transfer is a direct transfer payment of money to an eligible person.^[1] Cash transfers are either unconditional cash transfers or conditional cash transfers. They may be provided by organisations funded by private donors, or a local or regional government.^[2]

Cash transfers constitute a critical element in the realm of global social policy, addressing needs ranging from poverty alleviation to crisis response. This article distinguishes between two main types of cash transfers: humanitarian cash transfers, grounded in international humanitarian principles, and social assistance cash transfers, integral to long-term social welfare strategies.

Humanitarian cash transfers are aligned with the principles of humanity, neutrality, impartiality, and independence, which are fundamental to humanitarian aid. These principles, endorsed by UN General Assembly resolutions 46/182 and 58/114, ensure that humanitarian aid, including cash transfers, prioritizes human suffering and assists the most vulnerable without favoritism or discrimination. Humanity underscores the need to address human suffering universally. Neutrality ensures that aid does not favor any party in a conflict or dispute. Impartiality dictates that aid is based solely on need, without discrimination. Independence highlights the autonomy of humanitarian objectives from political, economic, military, or other objectives. Adhering to these principles, humanitarian cash transfers provide life-saving assistance in emergencies like natural disasters, conflicts, and famines, focusing on short-term, immediate relief.

Conversely, social assistance cash transfers are part of broader social protection systems aimed at reducing long-term poverty and vulnerability. These transfers target various demographic groups, including the unemployed, single parents, and individuals facing disabilities or old age challenges. By enhancing the capacity of individuals to manage socioeconomic risks and promoting efficient labor markets, social assistance cash transfers contribute to social equity and stability.

While both humanitarian and social assistance cash transfers aim to provide monetary support to those in need, they differ significantly in their objectives, implementation, and impact. Humanitarian cash transfers are typically responsive, addressing urgent needs in crisis situations guided by humanitarian principles. In contrast, social assistance cash transfers are more proactive, forming a key component of ongoing welfare policies and systems.