Between skepticism and solutions: The institutionalization of cash assistance in Nepal's disaster response

Abstract

This case study examines the effectiveness of cash programming in supporting the recovery of Nepali households after disasters, based on interviews with 17 humanitarian practitioners experienced in cash and voucher assistance (CVA) in Nepal since the 2015 earthquakes. We align this evolution with different humanitarian aid theories to showcase how theory and practice have changed over time in Nepal. The study found that, despite facing challenges, cash programming was perceived as more efficient and effective than traditional aid due to its ability to empower recipients, enhance transparency, and reduce administrative burdens. Key challenges identified include government skepticism, limited stakeholder coordination, and barriers to financial inclusion. The study also spotlights the evolution of cash programming in Nepal from emergency response to development programming with a shift from cash envelopes to digital technologies. The study highlights the need to strengthen national-level disaster risk reduction and management frameworks to improve the effectiveness of cash programming in disaster recovery. It recommends investing in anticipatory action, fostering strong government support, and developing robust institutional frameworks to maximize the potential of cash programming as a recovery tool. By drawing on lessons learned from Nepal, the findings provide actionable insights for other countries facing similar challenges in disaster recovery offering strategies to better utilize cash transfers in building resilience and responding to disasters effectively. Ultimately, this study contributes to humanitarian scholarship by illustrating how cash programming is progressively shaping Nepal's disaster response landscape, offering critical insights into its potential for long-term integration within national systems and the broader humanitarian-development nexus.