黑料福利社

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Published August 14, 2014 in Recipients

Cash, goods, or services? The poor say cash


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Earlier this month, while leaving a recipient鈥檚 home after a chat about his purchases and experience with 黑料福利社, I noticed a new structure beside his house that I hadn鈥檛 seen on my way in. 鈥淲hat鈥檚 that? Did you buy that with the transfer as well?鈥 I asked, and my colleague Erick, Senior Field Officer, translated.

The recipient explained that no, this structure was actually a pig pen built for him by an NGO that was offering residents of that village the option to go into either pig or chicken rearing. I followed up, 鈥淣ow that you鈥檝e been the beneficiary of two NGO programs, how would you compare the experiences with the two?鈥

His response: 鈥淚f I had wanted a pig pen, I would have just bought one.鈥

More and more donors and policymakers are seeing the benefits of cash as a way to alleviate poverty鈥攊t鈥檚 efficient, transparent, and proven to have impact across many outcomes. But the perspective that matters most to me is the recipient鈥檚 own.

In a randomized sample of recipients from our two most recent campaigns in Kenya, 95% said they would prefer to receive cash instead of goods or services (n=428). We also asked them to explain their stated preference; the unedited responses, which were transcribed by our staff as accurately as possible from phone conversations, are .

Many of the themes in these responses explaining why cash is better than goods or services are ones that we would expect鈥攖hat people have different needs and priorities, and cash enables them to do exactly what is needed. In the words of one recipient, 鈥淚ts [sic] the wearer of the shoe who knows where it pinches, so he prefers to spend himself.鈥 Other reasons they gave are a bit more surprising:

  • A greater sense of responsibility about the goods or outcomes 鈥 鈥淧eople will treasure what they buy as there is some great value attached to what one buys on their own鈥 and 鈥淗e will feel more responsible when he spend it by himself鈥
  • Ability to do multiple things rather than one big project 鈥 鈥淧eople would wish to do several small things with the money鈥 and 鈥淗e is also able to use the surplus on other miscellaneous expenditures鈥
  • Ability to respond to shocks 鈥 鈥淐ash transfer helps you with time whenever a problem comes up鈥 and 鈥淚t will help me solve other new other issues that will arise later on with time鈥
  • Dignity from being able to set your own standards 鈥 鈥淪ome people might complain when things are bought for them which might not fit their standards鈥 and 鈥淗e will have the opportunity to buy the things he thinks are of the best quality and are of his taste unlike when GD does the shopping for him鈥
  • The simple pleasure of having money in hand 鈥 鈥淚t’s a source of pride and happiness having money and marching, in the company of his wife, to the Mpesa agent to withdraw money鈥 and 鈥淢oney its self comes with satisfaction and joy鈥
  • Empowerment 鈥 鈥淏ecause she wants to feel a boss of her own鈥 and 鈥淚 am mature enough to make my own decisions鈥

One theme in particular struck me deeply. Some recipients said that even if it were just a matter of asking GD for what they needed, they would be embarrassed to ask for the things they most want. One recipient said 鈥淭here are needs that are between a couple like under pants that they would be ashamed to ask GD to buy for them.鈥 Another said 鈥渢here are things which she wouldn鈥檛 be free to tell GD to buy for her such as blanket.鈥 If I were running a different program, where recipients had to come and ask me for what they needed, I would want nothing more than to help them buy underwear and a blanket鈥攂asic needs that provide both comfort and dignity. The fact that they would feel ashamed to ask breaks my heart, and indicates to me a problem in the system of development. The poor shouldn鈥檛 feel that their needs aren鈥檛 good enough for donors; donors should be serving the real needs of the poor. Reading these responses has bolstered my confidence that I鈥檓 in the right line of work鈥攇iving people the autonomy and dignity to do what matters, with pride and confidence rather than embarrassment and shame.

We have a lot to learn from recipients about what makes a great development program, but I feel humbled and honored to be on the right track.