Governance and Democracy CASH FOR WORK A Contribution to the International Debate based on Lessons Learnt in Northern Afghanistan Imprint Published by: Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH Postfach 5180 65726 Eschborn, Germany T +49 61 96 79-0 F +49 61 96 79-11 15 E [email protected] I www.gtz.de Authors: Paul Harvey (Humanitarian Outcomes, London), Nicolas Lamade (Senior Food Assistance Adviser GTZ, Eschborn), Dr. Hannelore Börgel (Consultant, Berlin) Responsible: Nicolas Lamade / [email protected] The authors would like to express their gratitude to Jörg Yoder (GTZ Afghanistan) and Shinta Sander (GTZ HQ) for their valuable support and inputs given to make this study possible. Layout: die Basis / www.die-basis.de Photos: © GTZ Printed by: Druckerei Klaus Koch GmbH, Wiesbaden Eschborn, October 2009 Content EXecUtiVE SUMMary 4 1. IntrodUction - PUrpose and Methodology 5 2. OVerView of the State of the International Debate on Cash Transfers 6 3. REView of the Cash for Work (CFW) Projects IN Northern Afghanistan 10 4. Synthesis of the Cash Transfer Debate with GTZ’S CFW EXperiences in Northern Afghanistan 18 5. ConclUsions 26 References 28 AnneX: Cash transfer prograMMing GUidelines and tools 31 Abbreviations AA German Federal Foreign Office AKDN Aga Khan Development Network ANDS Afghan National Development Strategy BMZ German Federal Ministry for Economic Cooperation and Development CFW Cash For Work CDC Community Development Council CRS Catholic Relief Services DDF District Development Fund DETA Development-oriented Emergency and Transitional Aid DoPW Department of Public Works DRC Danish Refugee Council GTZ Deutsche Gesellschaft für Technische Zusammenarbeit MRRD Ministry of Rural Rehabilitation and Development NSP National Solidarity Programme ODI Overseas Development Institute PDF Provincial Development Fund RRD Rural Rehabilitation and Development Department SRL Sustainable Rural Livelihood WFP World Food Programme 3 Executive Summary The purpose of this study was to document learning from the population reached despite the size of the CFW scheme BMZ finance cash for work (CFW) projects implemented by in comparable international terms and problems with tar- GTZ in Afghanistan as a contribution to international de- geting cash transfers. bates about cash transfer approaches. The provision of cash as a practical alternative or complement to in-kind forms The results of the synthesis between the theoretical basis of humanitarian assistance has been spreading steadily in and actual outcome of the GTZ‘s CFW activities seem to recent years and is increasingly accepted as part of the tally widely with the conclusions reached by other projects toolbox of humanitarian response. The debate has shifted in this field. In fact, CFW was seen as a valid rapid re- from the feasibility of cash to how it can be used most ef- sponse tool with a potential as an effective mechanism fectively and how to assess when and where it is appropri- for triggering longer-term motivational and value changes ate in particular contexts. in traditional Afghan communities. Whether cash transfers are appropriate as a replacement or complement to flank The operations of the GTZ CFW scheme in Northern Afghani- in-kind support, can only be decided on a case-by-case stan are financed by the German Federal Ministry for Eco- basis within specific contexts. Reservations about the fea- nomic Cooperation and Development (BMZ) and commenced sibility of cash relating to security, corruption and gender in 2004. They are still ongoing and cover several provinces, risks were not seen in practice. No evidence was found of directly targeting some 15.000 workers and benefiting an a discernable anti-social use of cash, higher security risks estimated total of 100.000 family members annually. The in handling cash versus in-kind help, more extensive cor- main thrust of the programme was directed at two prov- ruption or cash disbursals or that cash particularly disad- inces, i.e. Takhar and Badakhshan. The chief activities cov- vantaged women. ered road and bridge construction and some other social assets on a smaller scale. Two representative districts each In summary, there were constraints in the projects‘ data col- were chosen both in Takhar and Badakhshan province for lection and monitoring which limited the analysis of project the empirical data collection and the analytical assessment outcomes and attainment of objectives. The effects of cash purposes of the present report. A consultant undertook the transfers on markets and prices, on livelihood and house- essential field work during November 2008. Interviews were hold food security, and on labour markets could only be conducted with authorities and organisations active in this gauged in general terms, but not appraised quantitatively. field as well as project staff and beneficiaries themselves. Also, the limited monitoring of market developments did Relevant literature and available baseline data from previ- not facilitate the finding of answers to questions regarding ous work were consulted and screened respectively. the appropriateness of possible adjustments of cash wages to fluctuating prices as demonstrated by the rise of food The project performance can be summarized as having prices in 2008. In fact, in such predicaments, it may seem reached its principal goals overall, although the degree of imperative to adjust CFW wage levels to avoid the erosion achievement may have differed in line with varying local of their real value and to anticipate the need for and mag- conditions. In most cases, projects yielded very positive nitudes of concomitant budget contingencies. At the same short and medium-term results and laid the foundation time, administrative constraints and difficulties in readjust- for longer-term structural impacts. Enhanced shorter- ing wages downwards once the emergency was over could term welfare gains included improved economic conditions, render such adjustment schemes unfeasible. In any case, household food security and the state of health, all gen- efficient monitoring devises should be built-in, ideally, from erated by the construction of infrastructure facilities. The the inception of CFW schemes in order to enable adequate longer-term benefits covered the onset of changes in mo- decisions. Better analysis and reporting of monitoring data tivational and behaviour patterns as well as the social in- would also help in coordinating cash approaches with other tegration of former fighters and sensitization to ensure Af- stakeholders. ghan project ownership. Some labourers learned new skills which in some cases led to permanent employment after the CFW activities had ceased. Concerns centred around relatively poor savings performance, the limited share of 4 1. Introduction – Purpose and Methodology There has been a recent surge of interest in international of project staff on the basis of project documents to com- development circles in the use of cash payments as an aid pare possibly differing perceptions of project intentions instrument and alternative or complement to in-kind and results. forms of assistance, such as food aid. This report examines a GTZ supported CFW programme (financed by BMZ) The empirical data was obtained in two districts each in the Northern Afghanistan provinces of Takhar and of both Takhar and Badakhshan provinces (see map in Badakhshan and relates its experience to key issues emerg- box 3, page 11) in which GTZ has implemented CFW ing from the wider literature on cash based responses. programmes since 2004. In Takhar province the Khoja Ghar district north of the provincial capital Taloquan was GTZ has been implementing CFW projects in Af- chosen for a field trip as the implementation of a number ghanistan since 2004 on a relatively large-scale with over of CFW projects had already been completed some two 100.000 people targeted annually. There are numerous years ago. It was assumed that a sustainable impact would, other public works programmes in Afghanistan imple- therefore, be visible. In addition, data obtained from mented by various actors but with limited exchange interviews by the consultant with the target group in the of learning taking place between them. This report is, Warsaj district south of Taloquan for a Lessons Learnt therefore, intended to stimulate both learning and debate Study in May 2007 (Börgel 2007) were also considered for between CFW stakeholders within Afghanistan and to this study. In Badakhshan province the district Arganjkha, make a contribution to the general international debate on east of the provincial capital Faisabad, was selected for a cash transfer programmes. field visit where CFW recipients were carrying out work on an important road. In addition, CFW recipients were Section Two provides a short summary of the state of visited in the villages Robat, Bugh Mubarak, and Dah- the international debate on the use of cash transfers as niab in order to assess the degree of improvement of their an aid instrument. Section Three reviews the context in livelihoods. The Fargambow Road project in the district of which GTZ is working in Northern Afghanistan covering Yaftal Payan northwest of Faisabad had been visited by the modalities and operational aspects of the CFW projects consultant already in 2007. together with their impacts on beneficiaries. Section Four attempts to synthesise general principles highlighted in the international debate on cash transfers with results achieved and issues raised by GTZ’s CFW projects