Measuring the Effect of Emergency Cash Transfers on Preparedness

Policy Context

The 2022 disaster risk global index ranked the Philippines as the most at-risk country (among 193 countries), demonstrating the need for programs that support Filipinos as they prepare for and respond to disasters. The Department of Social Welfare and Development (DSWD) distributes emergency cash transfers (ECT) to disaster-affected households, typically 1-4 months after the disaster occurs. These transfers are equivalent to roughly 75% of regional monthly wage rate.  While evidence has demonstrated cash transfers’ welfare-enhancing effects, more work is required to understand the most effective program design features in disaster and climate change-affected environments.

 

Study Design

In this study, Rachel collaborates with UNICEF, IPA, and DSWD to test the impact of financial education, distributed in concert with the ECT, on beneficiaries’ resilience. The team will offer financial training videos which advise beneficiaries on how to efficiently utilize the cash transfer in response to the emergency. The videos will aim to help families recover from the financial impacts of the disaster and will focus on budgeting and financial planning, as well as specific strategies for coping with disaster-related financial challenges. Offering guidance about financial resilience may magnify the effect of the transfer, enabling families to better cope with the financial impacts of disasters and be better positioned to recover and rebuild in the aftermath.

Rachel employs a randomized control trial to issue short liquidity management training videos as described above to a portion of ECT beneficiaries. She will and compares the results against beneficiaries who only received the ECT without additional support. The pilot will employ a geographic randomization at the village level. CEGA funding will be used to produce training videos and pay for qualitative data collection with implementers which will examine potential mechanisms through which this financial education tool may improve welfare and resource management. 

 

Results 

Forthcoming.