Cash-Based Assistance Challenge

The Cash-Based Assistance Challenge refers to difficulties in providing financial aid directly to people affected by crises. While cash transfers can offer flexibility and dignity, they pose issues like ensuring proper targeting, preventing misuse, managing logistics, and maintaining security. Additionally, there are concerns about inflation, dependency, and the need for effective oversight. Organizations must carefully design and administer these programs to maximize benefits while minimizing risks, making cash-based aid a complex but potentially efficient method of support in humanitarian and development contexts.