USAID/OFDA Uses Cash Grants to Alleviate Chronic Food Insecurity
in Ethiopia
Seyfu Gebreselassie, a subsistence farmer living in Debdebo village in the northern region of Tigray, faced a grave situation in June 2003. The vital azmera rains that usually occur between February and May had failed, leaving crops stunted and wilted. The chronically food insecure area was suffering from severe drought conditions and extreme seed shortages for the upcoming planting season. With no assets to sell, no labor opportunities, and no means to buy seeds, Seyfu had few remaining options. He could leave his field fallow, send his children to live with relatives and migrate to another area to look for work, or obtain a high interest seed loan that may have cost more than his expected harvest yield.
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| Ethiopian
subsistence farmer Seyfu Gebreselassie answers USAID/OFDA
team questions about cash-for-seed intervention program |
At that time, Seyfu's fellow villagers selected him to be a beneficiary of an innovative program in Tigray, a USAID/OFDA-funded grant to Comitato Internazionale per lo Sviluppo dei Popoli and the Relief Society of Tigray (CISP/REST) to provide small cash allowances to needy farmers. In July 2003, Seyfu signed an agreement with CISP/REST and the local district agriculture officials acknowledging that the cash must only be used to buy seeds. He then received the Ethiopian equivalent of $17.40, and later reported to CISP/REST that he bought teff (a cereal grass) and barley seeds. Unlike distributing seeds purchased by an outside organization, providing small cash grants stimulates the regional economy and allows farmers to choose the seed varieties they prefer, usually local seeds that are consistent with the particular characteristics of the area's soil and climate. Because of the USAID/OFDA and CISP/REST cash-for-seed intervention, Seyfu was able to prepare and plant his field in time for the main rainy season. By November 2003, the land had yielded a good harvest and possibly even provided enough seeds for planting during 2004. Seyfu was able to keep his family together and produce sufficient food to last for the next several months without additional food assistance.
During 2003, successive and cumulative climatic shocks, combined with the collapse of the agricultural and livestock markets eroded the asset base and coping strategies of millions of Ethiopians like Seyfu. Although many households were able to cope with the effects of a single poor rainy season, the impact of consecutive below-average rainy seasons depleted assets and exhausted traditional coping mechanisms, such as selling livestock or other material possessions. As a result of these compounding factors, household vulnerability increased to crisis levels. In response to the widespread food insecurity, USAID/OFDA committed more than $4.4 million to fund four pilot cash-for-relief initiatives implemented by SCF/UK in Amhara Region, WVI and the Ethiopian Orthodox Church in SNNP Region, and CARE in Oromiya Region, plus the cash-for-seed project by CISP/REST in Tigray Region. In all, USAID/OFDA's cash grant programs reached an estimated 433,920 beneficiaries in FY 2003, targeting the most affected communities through a consultative and collaborative selection process that involved regional authorities, village leaders, and community-based NGO staff. Tailored to the particular needs of the region, USAID/OFDA's cash grant programs provided beneficiaries with an immediate source of income to stimulate purchasing power and promote market access. The projects were designed to reduce malnutrition and excess mortality by meeting emergency household needs through one-time grants, usually distributed in three installments.
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| USAID/OFDA
team and CISP/REST interview seed beneficiaries in
Debdebo village, Tigray Region, Ethiopia. |
"Compared to traditional cash-for-work programs, cash grant programs are more likely to benefit the most vulnerable populations," said WVI Relief Manager Dr. Mesfin Loha.
"Cash grants empower families by providing the flexibility and resources to obtain healthcare, pay school fees, purchase agricultural inputs, restock animals, create small businesses, and pay off outstanding debts. Cash grants also provide direct benefits to recipients as well as indirect assistance to local trading and business communities through the flow of cash into the local economy," added Dr. Mesfin.
As a staunch supporter of USG humanitarian and development assistance to Ethiopia, USAID's Administrator has been a longtime advocate of finding solutions to address the underlying causes of food insecurity in order to break the cycle of famine that exists in the Horn of Africa. USAID/OFDA's cash grant program arrived at a critical time in Ethiopia's humanitarian crisis and presented a flexible assistance alternative that contributed to the rehabilitation of livelihoods. Cash grants also proved to be an important component in promoting linkages between relief and development, as a majority of beneficiaries invested a portion of their money in productive assets. In addition, the distribution of cash allowed individuals and communities to begin making a series of decisions, giving them the power to prioritize needs for their families and presenting them with a creative way to receive relief assistance with dignity.
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