4.2 CVA Modality

Below is a table with the potential advantages and disadvantages of each CVA modality, those should be contextualized.

Potential advantages of CVA delivery Potential disadvantages of CVA delivery
Choice and dignity – cash allows recipients to decide what they should spend the money on. This enables people to choose what they most need, and allows for this to vary from person to person Less control from the women – women may be less able to keep control of cash than alternatives such as food. If this challenge is overcome by distributing the cash or the voucher to women, protection risks should be closely monitored.
Cost effectiveness – for CARE and the beneficiaries as logistics costs are lower. Lack of skills – in context where CVA has not been used before, the team may not be fully proficient hence creating delays in the set up of the project. Lack of knowledge can also lead to resistance from the team to use CVA to deliver the project.
Multiplier effects – distributing cash can have knock-on economic benefits for local markets and trade if the money is spent locally, and it may stimulate agricultural production and other areas of livelihoods Risk of inflation – if the market has not been properly assessed or if market monitoring is not done or does not lead to appropriate operational decisions, prices for key goods can rise, negatively impacting both beneficiaries and non beneficiaries.
Avoids disincentive effects – unlike in-kind distribution CVA is unlikely to discourage local trade or production. Security risks – Despite the lack of evidence of CVA being more risky than in-kind, the perception of risks may be higher for beneficiaries and CARE team members.
Enhanced accountability to beneficiaries due to higher scrutiny of CVA. Higher scrutiny of CVA – may increase costs and time spent to set up the project.

 

Limit opportunities for corruption – Grants or vouchers pass through fewer hands than in-kind aid, cutting out the number of intermediaries who have the opportunity to use the resources for private gain. Higher risk of political manipulation – because CVA are popular, they are more prone to be used for political manipulation, especially when the targeting mechanism is not strong or transparent enough.