Cash support in humanitarian and development initiatives: There is a need to develop a community-centric strategy

The implementation of cash support in humanitarian and development initiatives has gained traction, particularly through online cash transfers aimed at reducing corruption, enhancing accountability, and expediting delivery to beneficiaries. Cash schemes for women have been launched in many states in India like the Subhadra scheme in Odisha, providing Rs 10,000 in annual assistance to eligible women aged 21 to 60 for five years. Similar schemes have been also launched in Madhya Pradesh, Maharashtra, Tamil Nadu, West Bengal, and Karnataka.

Whatever be the political motive behind this, sometimes cash is a better option. The Odisha government has rightly increased the monthly old age pension to Rs 3,500 for super senior citizens (80 years and above) and persons with disabilities (PwD), exceeding 80 per cent in addition to the Subhadra scheme.

A study conducted by ActionAid across 25 districts in Odisha highlighted several recommendations for improving such schemes. It emphasised the necessity of physical cash payments to beneficiaries, as many struggle to access banks located far from their homes, often losing a day’s wages in the process. This was also suggested by 5th Odisha State Finance Commission. Furthermore, beneficiaries reported that the current pension amount is inadequate to meet their needs, suggesting that regular increments should be considered based on market conditions. Additionally, financial support through bank linkages is crucial for enabling individuals with disabilities to initiate and sustain small-scale businesses, considering their unique challenges.

A critical aspect to consider is the necessity for online support to access various entitlements, particularly for vulnerable communities that often rely on third-party assistance. These intermediaries typically charge between Rs 200 and Rs 500 or more for their services, and there are instances where, despite the expenditure, entitlements are delayed. To address this issue, community-level volunteers either from government or civil society organisations like ASHA working in the area are essential for facilitating online processes and liaising with relevant government departments, such as labour offices. There are many civil society organisations extending this help through worker facilitation centres and community volunteers, including ActionAid.

Additionally, there is a pressing need for awareness regarding compensation support in the aftermath of disasters, as well as for consistent follow-up with government agencies. This requirement extends to other government entitlements, including pension schemes, disability pensions, labour cards, and cash-based initiatives for women. Although the assistance provided by government departments may be minimal and should be revised, it is vital for the well-being of vulnerable populations.

Furthermore, providing handholding support for cash-based initiatives, particularly in skill development and livelihood enhancement, is of utmost importance. For instance, the Subhadra Yojana in Odisha allocates Rs 10,000 annually for five years to each woman, which can significantly impact their livelihoods if utilised effectively. However, if the funds are spent on consumables, they will not contribute to sustainable enterprises. A short survey of 30 Subhadra beneficiaries in rural Odisha revealed that about 50 to 65 per cent spend for livelihoods, others spend in marriages, purchasing bikes and so on. Some of the beneficiaries spend on education of children and constructing houses. Therefore, it is crucial to identify priorities, assess existing skills, and ensure proper training through established skill training institutes.

Additionally, support for value addition, such as packaging and marketing, is available from both government and non-government organisations, while various government schemes offer loans to help scale up enterprises.

A critical aspect of cash-based support is the provision of assistance, particularly in skill linkages and livelihood enhancement. However, it is essential that this financial aid is directed towards improving existing income-generating activities rather than being spent on consumables, which would render it ineffective. To maximise the benefits of such support, it is vital to identify individual priorities and assess current skills and their feasibility for livelihood initiatives. Additionally, new ventures require appropriate training from established skill training institutes like Krishi Vigyan Kendra and other skill training institutes. Support for value addition, such as packaging and marketing, is available through both government and non-government organisations. Furthermore, various government schemes offer loans to help scale up enterprises. By ensuring that this cash support translates into sustainable livelihood opportunities, groups of 10 to 15 women can collaborate to establish collective enterprises, such as bamboo crafts or incense production, thereby fostering economic resilience within their communities.

An inspirational story

It is apt to share here the poignant journey of Bijayalaxmi Sahu, 42 years, a resident of the Mandap Slum in Bhubaneswar which illustrates the resilience of a mother who was faced with the devastation of COVID-19.

In 2015, Bijayalaxmi embarked on a new venture by opening a small shop, securing a gold loan against her only valuable possessions—her mangalsutra and earrings. With her husband working as a mason, their combined monthly income of Rs 8,000 to Rs 10,000 was sufficient to cover basic necessities, including food, rent, and the education of their two sons, who represented their greatest aspirations.

However, the onset of the COVID-19 pandemic in 2020 brought their lives to a standstill, as government-imposed lockdowns forced Bijayalaxmi’s shop to close for over eight months, leaving her husband without work and their family without income.

The government relief of Rs 2,000 and 50 kg of rice provided little solace, as Bijayalaxmi resorted to mixing rice starch and salt for meals, often sending her children to bed hungry. The educational pursuits of her elder son, a B Tech student, and her younger son, enrolled in a diploma course, were severely disrupted due to a lack of smartphones and data.

With an emergency aid of Rs 10,000 from ActionAid, she was able to restock her shop, provide for her family, and begin saving once more. However, the real transformation came through ongoing support and empowerment. She successfully registered her husband for a Labour Card with local volunteers’ support, which brought in an additional Rs 1,500. During the most challenging periods of the lockdown, she received essential grocery kits and hygiene supplies from ActionAid. Furthermore, she applied for the Subhadra Yojana with support from field staff, securing another Rs 10,000, and accessed loans of Rs 50,000 and Rs 1,00,000 through her Self-Help Group at a modest interest rate of 10 per cent. This financial boost enabled her purchase a sewing machine, which she now uses to stich petticoats and blouses for local women. Today, her combined income from her shop and tailoring work amounts to approximately Rs 15,000 per month, yielding a profit of Rs 5,000—sufficient to sustain her family and nurture her aspirations.

A transformative moment in Bijayalaxmi’s life occurred when local volunteers of ActionAid assisted her in applying for the Rajiv Gandhi Awas Yojana (RAY). With the support of ActionAid volunteers, Bijayalaxmi successfully registered for RAY and has already made an advance payment of Rs 1,00,000 towards the construction of her own house. For the first time, she envisions a pucca house—a secure and clean environment where her family can rest peacefully.

Her sons have also made significant strides. Her elder son has completed his B Tech and is now employed in Pune, contributing financially to the household, while her younger son has finished his diploma and is preparing to join the Indian Army, a dream that once seemed unattainable.

Bijaylaxmi’s narrative is filled with sorrow, sacrifice, and countless sleepless nights. But it also embodies resilience, the strength of community, and the transformative impact of handholding support to channelise cash support.

Thus, there is a need to support vulnerable groups on a longer-term basis to facilitate the access to different government entitlements and convert cash support to a sustainable livelihood venture which make them resilient to any forthcoming disasters. 

Debabrat Patra is Associate Director and Humanitarian Lead, ActionAid Association

Views expressed are of the author’s own and do not necessarily reflect that of the organisation or Down To Earth