Paper
Microfinance and Cash-for-Work in Livelihood Restoration Following a Natural Disaster
Guidelines for MFIs' involvement in Cash-for-Work activities
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3 pages
This paper discusses MFIs' involvement in cash-for-work (CFW) activities to promote livelihood restoration following a natural disaster.
The paper states that MFIs should not be directly involved with CFW, since it might involve logistical issues that are beyond MFIs' specialization. Further, transfers made through such CFW activities may often be considered as grants and safety-net measures, sending a mixed signal to clients about the seriousness of the MFI as a reputable financial service provider.
There are, however, ways in which MFIs can be indirectly involved with CFW activities. Broad guidelines for MFI involvement with CFW include the following:
- Build consensus with CFW providers to avoid market distortions;
- Link with CFW providers and their beneficiaries to supply required financial services;
- Design responses that are gender-equitable.
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