INFORMING THE DESIGN AND IMPLEMENTATION OF THE NEWLY APPROVED CASH TRANSFER PROGRAM BY THE PARLIAMENT OF LEBANON

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INFORMING THE DESIGN AND IMPLEMENTATION OF THE NEWLY APPROVED CASH TRANSFER PROGRAM BY THE PARLIAMENT OF LEBANON
INFORMING THE DESIGN AND
  IMPLEMENTATION OF THE NEWLY
    APPROVED CASH TRANSFER
  PROGRAM BY THE PARLIAMENT
          OF LEBANON
                                                    BACKGROUND
                                                    Since October 2019, Lebanon has been suffering
                                                    from an unprecedented economic and financial crisis,
                                                    exacerbated by political instability in the country, the
                                                    COVID-19 pandemic, and the Beirut port explosion
                                                    (World Bank, 2021a). The World Bank considered
                                                    the economic and financial crisis in Lebanon to rank
                                                    among the top 10 most severe crises globally since
                                                    the mid-19th century (World Bank, 2021a). The crisis
                                                    led to a 20.3% contraction in GDP in 2020, an increase
                                                    in poverty to over 50% of the population and a rise in
                                                    unemployment rates (World Bank, 2021a; World Bank,
                                                    2021b). The average inflation rate reached 84.9% in
                                                    2020 (Central Administration of Statistics, 2021) with
                                                    the Lebanese currency losing 90% of its value by June
                                                    2021 (Reuters, 2021). The increased poverty rates
                                                    and continuous devaluation of the Lebanese Pound
                                                    has forced the government to consider withdrawing
                                                    subsidies of goods and essential items such as fuel,
                                                    essential food items, and medications, further exposing
                                                    the population to poverty (Al-Jazeera, 2021).

OBJECTIVE OF THIS EVIDENCE BRIEF
Politicians, analysts, and the public raised major concerns related to funding sources and eligibility criteria
of beneficiaries due the scarcity of financial resources and the rising poverty levels (Skynews Arabia, 2021).
Therefore, the implementation decrees that will issued by the government needs to carefully consider the
aforementioned points to ensure that assistance is provided to the right people and to demonstrate value
for money. The objective of this evidence brief is to help inform the government in its planning, design,
and implementation of the CTP in Lebanon.
INFORMING THE DESIGN AND IMPLEMENTATION OF THE NEWLY APPROVED CASH TRANSFER PROGRAM BY THE PARLIAMENT OF LEBANON
CASH TRANSFER PROGRAM (CTP) IN LEBANON: ELIGIBILITY, FUNDING
AND REGISTRATION
In response to the crises, the Parliament of Lebanon approved a Cash transfer program (CTP) law bill on June 30th, 2021 with
the aim to alleviate poverty and help citizens access their basic needs (figure 1). The implementation decrees of the law will be
developed by a ministerial committee including the minister of social affairs, minister of finance and minister of economy and
trade (Asharq Business, 2021). The expected cost of the CTP will be 556 million USD over one year with 360 million USD to be
funded from internal sources (the Central Bank) and can be replaced by external funding sources when available, according to
the law (LBC International, 2021). Parliamentarians raised concerns over the funding of CTP and some suggested funding from
existing World Bank loans. The amount of cash transfer will vary between 93 and 126 USD per month for a period of one year
depending on the household size (LBC International, 2021; Skynews Arabia, 2021), knowingly that the average per person cost
on food is 150$ per day at a rate of (17,000 LBP) (figure 2). The CTP aims to target 500,000 families. Initially, the plan was to
target a total of 750,000 Lebanese families then a decision was made to exclude around 250,000 families currently benefiting
from World Bank and European Union funding programs. Discussions around the list of beneficiaries are still ongoing with
suggestions to include public sector employees. The targeted families are supposed to apply for registration in an electronic
platform that will be developed for this purpose.
         Parliament Approved the Cash Transfer Program

                                                                                 Total value of   556 Million USD        for 1 year
                                                                                     ● Monthly amount between $93 to $126
                (CTP) law bill on June 30th, 2021

                                                                                     ● Ideally in fresh USD
                                                                                     ● Unclear funding sources

                                                                                                                       Exclusion criteria
                                                                                                                        ● Families travelling mul�ple �mes per year
                                                                                                                        ● Families having a bank account exceeding
                                                                                                                          10,000 USD
                                                                                                                        ● Families with an income exceeding
                                                                                                                          3,000,000 LBP
                                                                                                                        ● Families having a domes�c worker
                                                                                                                        ● Families benefi�ng from other grant
                                                                                                                          programs
                                                         Targe�ng 500,000                                               ● Families owning more than one car
                                                              families                                                  (Skynews Arabia, 2021; France 24, 2021)

               Figure 1: The Cash Transfer Program: beneficiaries and funding

CASH TRANSFER MODALITIES AND APPROACHES
Social assistance interventions aim to reduce poverty and                                            A variety of cash-based approaches to humanitarian
vulnerability and can be in the form of in-kind assistance                                           assistance exist and they include (Mercy Corps; Siddiqqi et al.
and cash-based transfers. Traditionally, social assistance has                                       2018):
been provided in the form of in-kind goods and services such
                                                                                                      • Unconditional cash transfers: Unconditional cash transfers
as food, non-food items, temporary shelters, and medical
                                                                                                        are direct payments, with no conditions, obligations or
care. Over the last few decades, cash-based approaches
                                                                                                        work requirements. Transfers may be delivered by bank
have become an increasingly used alternative for in-kind
                                                                                                        transfer, mobile phone transfer, prepaid smartcard, or
assistance in the provision of social assistance mainly where
                                                                                                        distribution of physical cash.
local markets are functioning (Mercy corps n.d, Gairdner,
Mandelik & Moberg, 2011). Cash transfer programs (CTP)                                                • Conditional cash-transfer: Conditional cash transfers are
refers to “all programs where cash (or vouchers for goods or                                            regular payments conditional on performing some task
services) is directly provided to beneficiaries” (Mercy Corps,                                          or activity such as public works, school enrollment, child
2017). When carefully designed and implemented, they allow                                              vaccination, or attending a training course.
the delivery of timely assistance to address immediate needs
and can provide assistance more rapidly than direct provision                                         • Vouchers: These are coupons, tokens or smartcards, which
of goods or services due to reduced logistical complexity. CTP                                          can only be used in particular shops and/ or on particular
are a preferable form of assistance because they maintain                                               items.
dignity and choice among beneficiaries while supporting local
economy (Mercy Corps; Doocy et al. 2017).

Page 2                K2P Evidence Brief: Informing the design and implementation of the newly approved Cash Transfer Program by the Parliament of Lebanon
INFORMING THE DESIGN AND IMPLEMENTATION OF THE NEWLY APPROVED CASH TRANSFER PROGRAM BY THE PARLIAMENT OF LEBANON
Figure 2: Estimated cost of meals for full day for one adult

                             Will the cash transfer be enough?
                    The cost of meals for a full day for one adult
                            According to the Ministry of Economy and Trade's latest update of the prices of "foodstuff basket"
                                                                    (June 21, 2021)

                                                          Breakfast: Average 10000 L.L
                                                          Eggs, labneh, cheese, vegetables, tea, bread

                                                            Lunch: Average 55000 L.L
                                                            A meal of rice with meat or chicken + salad

                                                           Dinner: Average 20000 L.L
                                                                           Tuna salad/ sandwich/soup

                                                Cost per day: 85000 L.L
                                      Cost per month: 2550000 L.L
                                                        Based on the rate of 17000 L.L

                                                                             150$

SELEC TION PROCESS

A search of the literature was conducted to identify systematic reviews and reports addressing cash transfer programs in
humanitarian settings and low and middle income countries. We used keywords including social assistance, cash assistance,
cash transfer, anti-poverty and social protection programs. We further limited the setting to low and middle income
countries, humanitarian and emergency settings. We searched Health Systems Evidence, Social Systems Evidence and
Google Scholar. We also search Google for grey literature reports. We limited the search for systematic reviews published
after 2009.

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INFORMING THE DESIGN AND IMPLEMENTATION OF THE NEWLY APPROVED CASH TRANSFER PROGRAM BY THE PARLIAMENT OF LEBANON
EFFECTIVENESS, EFFICIENCY,
                                                             AND COST OF CASH-BASED
                                                             TRANSFER

                                                          Cash transfer programs were shown to be effective ways to provide
                                                          humanitarian assistance. Below we present various outcomes
                                                          associated with CTP as assessed by systematic reviews:

FOOD SECURIT Y                                         P O V E R T Y, R E S I L I E N C E A N D                        M E N TA L H E A LT H
                                                       H O U S E H O L D S AV I N G S
Unconditional cash transfers may                       Cash transfers were found to reduce                            Cash transfer programs was also found
improve and maintain household                         short-term poverty and increase                                to improve mental health in both
food security in emergency contexts                    consumption and resilience by                                  children and adults (Zimmerman et
(Doocy et al. 2017) and in low- and                    increasing household savings (Owusu-                           al. 2021; Owusu-Addo et al. 2018;
middle- income countries (Pega et                      Addo et al. 2018). Unconditional cash                          McGuire et al. 2020).
al. 2017). They may also improve                       transfer may be more effective than
dietary diversity (Pega et al. 2017).                  vouchers in increasing household
As compared to food transfers,                         savings and equally effective in
unconditional cash transfers                           increasing household asset ownership                            E D U C AT I O N
were found to lead to a greater                        (Doocy et al. 2017).
                                                                                                                       Unconditional cash transfer may
improvement in dietary diversity and                                                                                   improve the likelihood of attending
quality, but food transfers are more                                                                                   school (Pega et al. 2017; Doocy et al.
successful in increasing per capita                                                                                    2017; Baird et al. 2013).
caloric intake (Doocy et al. 2017).

H E A LT H                                             H E A LT H S E R V I C E S                                      COST
Unconditional cash transfer programs                   Cash transfer was found to increase                             Unconditional cash transfer programs
were found to positively impact birth                  the use of health services (Hunter et                           and vouchers were found to have a
weight and infant mortality (Siddiqqi                  al. 2017) mainly frequent transfers of                          lower cost per beneficiary than in-kind
et al. 2018) and improve health                        sufficient amounts of cash (Owusu-                              food distribution. When comparing
                                                       Addo et al. 2018) with limited                                  unconditional cash transfer programs
outcomes such as the likelihood of
                                                       evidence on unconditional cash
having had any illness (Pega et al.                                                                                    to vouchers, unconditional cash
                                                       transfer (Hunter et al. 2017; Murray et
2017). Cash transfer programs that                                                                                     transfer programs was found to have
                                                       al. 2014).
were conditional on use of health                                                                                      a lower cost per beneficiary (Doocy et
services also showed positive effects                                                                                  al. 2017).
on health (Siddiqqi et al. 2018).
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INFORMING THE DESIGN AND IMPLEMENTATION OF THE NEWLY APPROVED CASH TRANSFER PROGRAM BY THE PARLIAMENT OF LEBANON
PLAN                                                  DESIGN                                           IMPLEMENT

WHAT ARE THE KEY ELEMENTS IN THE PLANNING,
DESIGN, AND IMPLEMENTATION OF CTP?
Although CTP were shown to be effective in humanitarian and emergency situations and low- and middle-
income countries, the below factors should be taken into consideration at the planning, design, and
implementation levels to ensure that the program achieves its intended objectives:

AT T H E P L A N N I N G L E V E L

To be effective, any CTP should take into
consideration these prerequisites (Gairdner et al.
2011; Mercy Corps, n.d; GSDRC, 2011):
 • Availability of goods and services for basic
    needs and existence of a functional market that
    can meet basic needs of the population and
    meet increased demand as weak market can
    cause inflation.
 • Existence of technical capacity and skills in
    government institutions to plan, implement
    and monitor CTP as resources constraint can
    overburden local authorities.
 • Devoted a budget for the program
    administration (around 5-15%) as running CTPs
    require extra time and effort for managing and
    monitoring.
 • A security situation that is permissible for cash
    transfer and the movement of goods
 • A financial infrastructure (e.g. a functional
    banking system) that facilitates cash transfer
 • Beneficiaries’ preference for cash transfer vs.
    in-kind assistance

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INFORMING THE DESIGN AND IMPLEMENTATION OF THE NEWLY APPROVED CASH TRANSFER PROGRAM BY THE PARLIAMENT OF LEBANON
AT T H E D E S I G N L E V E L

The design of any CTP should consider the following
key elements

Determine payment frequency and amount                                                   Identify actors in CTP

The frequency and amount of payment should                                               Four groups of actors are involved in CTP (Doocy
be determined based on the program’s objective                                           et al. 2017):
(e.g. covering food needs vs. a range of essential                                         • Funding sources need to be clearly
supplies) (Mercy Corps n.d; Mercy Corps, 2017):                                              identified. The primary funding sources of
  • Frequency: When designing the frequency of                                               CTP are national governments, multilateral
    transfers (small vs. larger amount/one-time vs.                                          organizations, non-governmental and
    multiple transfers), it is important to consider                                         donor agencies (Garcia & Moore, 2012).
    local tax and banking laws and the objective of                                          CTP can be funded from one source (e.g.
    the program. Small and multiple transfers are                                            government budget) or a combination
    often used to cover basic household needs like                                           of sources (e.g. government and
    food, medicine and clothing while one-time,                                              donors). These sources are dependent
    larger transfers are often spent on rebuilding/                                          on countries’ income level. For instance,
    recovering.                                                                              CTP in upper-middle-income countries
  • Amount: Determining the amount of the                                                    in Sub-Saharan Africa are mainly funded
    transfer should be based on inflation rates, price                                       by the governments while in low-income
    fluctuations (e.g. seasonal fluctuations) and                                            countries they are entirely funded by donor
    the size of the household. Setting the amount                                            groups and NGOs. To secure budget for
    should consider the price of a standardized                                              CTP, countries can consider improving its
    “basket of goods” at local market prices and                                             governance and tax collection, support from
    the gap between what beneficiaries are able to                                           donors, revenue from natural resources
    pay and the cost of the “basket of goods. Cost                                           and appropriate management of its
    associated with obtaining the cash transfer (e.g.                                        macroeconomy.
    transportation cost and ATM fees) should be                                            • Implementing agencies have a role in
    considered in setting the cash amount. If the                                            establishing mechanisms to provide cash
    objective of the program is to cover a range of                                          to recipients, monitoring the process of
    basic needs (in addition to food), the transfer                                          cash transfer including conditions for when
    amount should be calculated to account for                                               cash will be transferred or how it is used
    food and other essential supplies.                                                       and monitoring program expenditures.
                                                                                             They are most often government
                                                                                             bodies, international non-governmental
                                                                                             organizations or national civil society groups.
                                                                                           • Service providers can facilitate cash transfer
                                                                                             program through mechanisms such as cash
                                                                                             payments, bank or mobile transfers.
                                                                                           • Recipients can be at an individual or
                                                                                             household level, and may be selected based
                                                                                             on a set of criteria including age, geography,
                                                                                             income level, and vulnerabilities (e.g.
                                                                                             disability, female-headed households, etc.).

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INFORMING THE DESIGN AND IMPLEMENTATION OF THE NEWLY APPROVED CASH TRANSFER PROGRAM BY THE PARLIAMENT OF LEBANON
Set up a monitoring and evaluation plan                                                  Develop accurate method for identifying and
                                                                                         selecting beneficiaries
Monitoring is essential to ensure the CTP is meeting                                     Poverty alleviation programs such as CTP
its objectives and reaching targeted beneficiaries                                       require accurate identification and targeting of
(Mercy Corps, n.d, Mercy Corps, 2017, GSDRC,                                             beneficiaries mainly in limited resources contexts
2011; DFID, 2006). It can be done through:                                               (Ellis, 2012), in order to reduce errors of inclusion
  • Monitoring the process of cash transfer starting                                     and exclusion (Stoeffler et al., 2016).
     from application processing to program                                               • Inclusion errors occur when people who
     expenditure.                                                                             are not eligible or in need of the assistance
  • Regular monitoring of market prices to make                                               receive the benefits (International Red Cross
     sure cash transfer is not contributing to further                                        and Red Crescent Movement, 2007). These
     inflation                                                                                can be avoided by involving communities and
  • Set up a monitoring and evaluation system                                                 implementing household-level vulnerability
     within government offices for data collection                                            assessments which often do cost more
     and analysis                                                                             than the granted amount to be distributed
  • Engage community in monitoring through social                                             (International Red Cross and Red Crescent
     audits, community leaders, short surveys                                                 Movement, 2007).
  • Monitor beneficiaries’ satisfaction with the                                          • Exclusion errors occur when people who need
     transfer mechanism and process                                                           the benefit fail to receive the assistance, which
  • Assess waiting and travel times and expenses                                              could be the result of using social welfare lists
     associated with obtaining the transfer                                                   as basis for targeting (International Red Cross
  • Monitor the security situation to ensure safety                                           and Red Crescent Movement, 2007).
     of beneficiaries
  • Monitor the number of payments over a certain
     period, the pace of applications and payments
     processing and, the number and reason of
     rejected applications
  • Conduct periodic case reviews to ensure
     beneficiaries remain eligible for the CTP.
  • Monitor and evaluate whether beneficiaries are
     able to meet their needs when the CTP ends

Page 7   K2P Evidence Brief: Informing the design and implementation of the newly approved Cash Transfer Program by the Parliament of Lebanon
Best practices advise the use of a combination of selection methods to reduce inclusion and exclusion
errors and increase the overall effectiveness of targeting (European commission, 2019). Common methods
used to target beneficiaries in CTP are outlined below (Handa et al., 2012; Stoeffler et al. 2016; Ellis, 2012;
International Red Cross and Red Crescent Movement, 2007; European commission, 2019; Inter-American
Development Bank, 2017; UNICEF, 2017; Devereux et al. 2015).
Table 1: Common methods for beneficiaries selection and targeting for CTPs

 Selection           Description                                            Benefits                                Disadvantages
 Methods for
 CTPs
 Categorical         Selection of poor individuals with                     • Easily implemented                    Low selection accuracy (e.g., could result
 selection           predefined demographic and/or social                   • Transparent                           in higher rates of beneficiary selection
                     characteristics such as age (e.g. elderly),            • May not require any                   errors as targeting a specific category
                     gender, ethnicity, disability, or land                   complex administration                such as the elderly for example, may not
                     ownership, chronically ill individuals,                  neither a large budget                always overlap with reaching the most
                     orphans, family size, child headed,                                                            vulnerable or poor)
                     elderly headed, female headed and
                     disabled headed households, extreme
                     income poverty, extreme asset poverty,
                     disaster or conflict-affected or displaced
 Geographical        • Selection based on location of                       • Easy implementation                   Could result in high rates of targeting
 selection             residence such as specific districts,                • Simple and low-cost                   errors as geographical locations are
                       regions, or communities with                           approach                              weak proxies when it comes to poverty
                       chronically poor residents                           • Most effective in contexts            specially when it is extended across the
                     • Mostly used in areas of natural                        where poverty rates                   country
                       disasters or in areas with a strong                    are high and spatially
                       correlation with poverty                               concentrated

 Means testing       Selection based on the income/asset                    Accuracy in terms of                    • Costly, laborious and data demanding
 approach            level and economic transactions of                     selection                               • Low public support which could lead to
                     individuals                                                                                      conflicts and social unrest
                                                                                                                    • Require documentation of economic
                                                                                                                      transactions (less usual in developing
                                                                                                                      countries).
 Proxy means-        Selection based on proxy indicators                    Can reach horizontal equity             • Require high administrative capacity
 testing (PMT)       include but are not limited to                         due to statistical accuracy             • Costly
 approach            consumption data, the headship of the                                                          • Could become corrupt if used for many
                     household (e.g., child, women, elderly                                                           targeting criteria as monitoring becomes
                     headed households), and the lack of                                                              difficult
                     adult labor in the household (e.g.,                                                            • Not easily understood by the population
                     elderly caring for orphans)                                                                      which could lead to social conflicts
                                                                                                                    • Less accurate than means testing
                                                                                                                      approach
 Community-          Engages local stakeholders and             • Using community agents                            • Leakages of non-poor or rich
 based               community members that are familiar          instead of official agents                          households.
 development         with the various characteristics of the      can reduce cost                                   • Community agents may use the program
                     community in determining program           • Most effective in                                   for their own benefit and interest
                     eligibility by identifying poor households decentralized countries                             • Hard to monitor and control in the
                     that qualify for program assistance.       • Uses local information                              absence of a team for supervision
                                                                • Increases social cohesion
 Administrative      Selection is based on an existing                      Readily available data                  • Gives less room for participation
 Targeting           administrative list (e.g. list of social                                                       • High cost (e.g., requires surveys and
                     protection scheme beneficiaries, school                                                          monitoring)
                     enrolment list, households listed in a                                                         • Less flexible process when people move
                     national social registry).                                                                       in and out of the eligibility criteria and
                                                                                                                      governmental lists become outdated.

 Self-selection      Selection based on voluntary                           • Increases the opportunity             Subject to exclusion errors if there is low
 targeting           participation                                            of non-poor population to             awareness of the program
                                                                              benefit of the program
                                                                            • Easy implementation
                                                                            • Increased public support
                                                                            • Low administrative costs.

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Factors to consider in the selection of targeting                                     Develop scale up/transition strategy
methods
Below we provide a checklist to inform decision on                                    As CTPs are designed as a short-term intervention,
which targeting method to choose (UNICEF, 2020):                                      governments and authorities need to develop a
 • Timeliness: how timely/quickly the                                                 transition/scale up plan to ensure sustainability
    implementing agency/government need to                                            of the program (Mercy Corps n.d.; Doocy et al.
    provide assistance?                                                               2017; Garcia & Moore, 2012). Governments can
 • Resources required: does the implementing                                          use the experience and lessons learned from
    agency/government have enough financial,                                          CTPs to transition to sustainable national social
    human and technical resources to conduct a                                        protection programs or other development
    costly/expensive targeting method?                                                programs with long-term sustainability. CTPs can
 • Accuracy: What is the probability for inclusion                                    guide the formulation and development of national
    and exclusion errors based on the method?                                         social protection systems for instance through its
 • Accountability: will communities perceive                                          established legal framework, budget, implementing
    targeting to be fair and is the targeting                                         agency, list of beneficiaries, technical and human
    mechanism easy to explain to communities?                                         resources and monitoring and evaluation plan.
                                                                                      Political will to transitioning to a sustainable
                                                                                      national social protection program is essential in the
                                                                                      process (Mercy Corps n.d.; Doocy et al. 2017; Garcia
                                                                                      & Moore, 2012).

Page 9   K2P Evidence Brief: Informing the design and implementation of the newly approved Cash Transfer Program by the Parliament of Lebanon
AT T H E I M P L E M E N TAT I O N L E V E L

Successful implementation of the CTP requires careful consideration of the following factors (Mercy Corps,
n.d; Doocy et al. 2017; Owusu-Addo et al. 2018; Leroy et al. 2009; Lagarde et al. 2009; DFID, 2006):

Table 2: Implementation considerations for CTPs

 Implementation considerations

 Market Economy                       The implementation of CTP requires a functional market and availability of supply of
                                      goods, or services (e.g. food, drugs, health services).

 Inflation                            Inflation and a rise of local food process can erode the real value of CTP and reduce
                                      expenditures making it difficult for households to meet their consumption needs.

 Beneficiary selection or Identifying beneficiaries and populations that are most in need is crucial to ensure
 targeting                scarce resources are directed to the right beneficiaries. Targeting errors can limit the
                          effectiveness of CTP and create community tension and exacerbate existing political and
                          economic tension and conflicts over scarce resources.
 Financial                            Corruption, exploitation and diversion of cash can hinder the successful implementation
 mismanagement,                       of the program. Exploitation and diversion of funds to illegal activities is easier with cash
 exploitation and                     than with in-kind assistance. Measures such criminal penalties can be used to avoid
 corruption                           corruption and financial mismanagement.
 Use of technologies                  Technologies can be used to efficiently monitor the program and may reduce time
                                      required for familiarizing beneficiaries with delivery mechanisms.

 Community and civil                  Engaging communities in program planning, design, and implementation of assistance
 society engagement                   programs and regular communication contributed to acceptance and success of the
                                      program by enhancing social cohesion and reducing tension and increase transparency.
                                      Civil society can advocate for beneficiaries, act as anti-corruption watchdogs and play a
                                      role in oversight of CTP.
 Negative Influence on                Cash may be used to purchase harmful goods such as alcohol or cigarettes and may
 Local Culture                        worsen power divisions between men and women, and may affect traditional responses
                                      (e.g. volunteerism) to community needs.

 Security issues                      Ensuring security of staff and beneficiaries who may be subject to safety and security
                                      risks (e.g., violence, extortion) is a factor contributing to successful implementation of
                                      CTP.

 Regularity of transfer               The amount of payment and regularity of the transfer were frequently reported to
 and amount of                        influence the effectiveness of CTs. Irregularity in transfer might negatively influence the
 payments                             effectiveness of the program.

 Supplementary food                   Supplementing cash transfer with food transfer especially when amounts are not high
 transfer                             positively impact the effectiveness of CTP.

 Accountability and                   Accountability and transparency towards the public can be maintained through
 transparency                         developing an independent complaints procedure where beneficiaries can report on
                                      errors or delays and ensuring eligibility criteria, targeting methods and processing
                                      of applications are transparent and communicated with the public and addressing
                                      transparently any case of fraud or corruption

Page 10   K2P Evidence Brief: Informing the design and implementation of the newly approved Cash Transfer Program by the Parliament of Lebanon
NEXT STEPS

Cash transfers are effective in reducing poverty and improving household savings, food security, health
services use, health outcomes and mental health and were shown to have a lower cost per beneficiaries
compared to in-kind food transfer. As the Lebanese authorities are in the process of planning, designing,
and implementing the CTP, the below elements should be taken into considerations to achieve desirable
outcomes, while ensuring community engagement in program planning, designing and implementation:

AT T H E P L A N N I N G L E V E L                                                       • Establish a secure payment system and safe
                                                                                           delivery mechanism such as mobile transfers,
  • Ensure technical capacity and skills in                                                smartcards and transfers through banks and
    government institutions to plan, implement                                             micro-lenders taking into consideration security
    and monitor CTP as resources constraint can                                            issues, availability of financial infrastructure and
    overburden implementing agencies.                                                      mobile coverage.
  • Devote a budget for the program administration                                       • State actors involved in the CTP in the
    (around 5-15%)                                                                         implementing decrees, including funding
  • Ensure the security situation is permissible for                                       sources, implementing agencies, service
    cash transfer and movement of goods.                                                   providers, and recipients.
  • Ensure a functional financial infrastructure (e.g.                                   • Identify actors involved in the CTP in the
    a banking system) is in place to facilitate cash                                       implementing decrees, including funding
    transfers.                                                                             sources, implementing agencies, service
  • Conduct a market analysis to determine                                                 providers, and recipients.
    whether a functional market is in place with                                         • Secure adequate and sustainable funds for
    available goods and services (e.g. food, drugs,                                        the CTP for instance through a combination
    health services) and to ensure cash transfer                                           of government funding (i.e. taxes) and
    doesn’t contribute to further inflation.                                               donors support. Improving tax collection and
                                                                                           reinvesting revenues from excise taxation
                                                                                           (e.g. taxation on tobacco and alcohol) can be
AT T H E D E S I G N L E V E L                                                             considered as potential sources to fund CTP.
                                                                                           Public support for excise taxation can increase
  • Use accurate and evidence-based methods                                                when invested in pro-poor policies with proven
    for identifying and targeting beneficiaries to                                         public benefit (Hilal, 2016). Additionally, the
    allow better use of limited resources, avoid                                           cost of improving tax collection might be
    errors of inclusion and exclusion, and increase                                        balanced by the long-term social benefits
    transparency. The use of social welfare lists                                          provided by CTP.
    (administrative targeting) was found to be                                           • Determine the frequency and amount of
    subject of errors in Lebanon as fake names                                             transfer based on inflation, consumption needs
    that were spotted during the delivery of aid in                                        and size of household.
    April 2020 (Lebanese Army, 2020) and might                                           • Develop a monitoring and evaluation plan
    be outdated. If authorities willing to use these                                       including monitoring the process of cash
    lists, they need to be updated and verified. As                                        transfer starting from application processing to
    means testing and proxy means tests are time                                           program expenditure.
    demanding, labor intensive and costly, the                                           • Develop a transition strategy from short-term
    use of combination of methods including self-                                          CTPs to national social protection programs
    targeting, categorical targeting and geographical
    targeting can be considered in the Lebanese
    context. Verification systems are essential
    to avoid errors in inclusion. For instance,
    verification can be done through request of
    documentation and community engagement.

Page 11   K2P Evidence Brief: Informing the design and implementation of the newly approved Cash Transfer Program by the Parliament of Lebanon
AT T H E I M P L E M E N TAT I O N L E V E L

  • Ensure regularity and timeliness of transfer with
    sufficient amount.
  • Monitor inflation and rise of local food prices to
    avoid eroding the real value of the cash transfer
    programs.
  • Implement measures to avoid financial
    mismanagement, exploitation, and corruption
    such as criminal penalties.
  • Encourage civil society oversight as it can
    advocate for beneficiaries and act as anti-
    corruption watchdogs.
  • Ensure the security of staff and beneficiaries.
  • Consider supplementary food supplies when
    cash amount is insufficient or when prices rise.
  • Ensure accountability and transparency towards
    the public through developing an independent
    complaints procedure where beneficiaries
    can report on errors or delays and ensuring
    eligibility criteria, targeting methods and
    processing of applications are transparent and
    communicated with the public and addressing
    transparently any case of fraud or corruption.

Page 12   K2P Evidence Brief: Informing the design and implementation of the newly approved Cash Transfer Program by the Parliament of Lebanon
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Page 14   K2P Evidence Brief: Informing the design and implementation of the newly approved Cash Transfer Program by the Parliament of Lebanon
Authors
Lama Bou-Karroum, Sahar Nassour, Rayane Nasreddine,
Clara Abou Samra, Fadi El-Jardali*

Acknowledgement
The authors would like to thank the merit reviewers for
the document review.

Citation
Bou-Karroum L, Nassour S, Nasreddine R, Abou Samra C,
El-Jardali F. K2P Evidence Brief:Informing the design and
implementation of the newly approved Cash Transfer
Program by the Parliament of Lebanon, Knowledge to
Policy (K2P) Center, Beirut, Lebanon, July 14, 2021

*senior author

          Knowledge to Policy (K2P) Center
          Faculty of Health Sciences
          American University of Beirut
          Riad El Solh, Beirut 1107 2020
          Beirut, Lebanon
          +961 1 350 000 ext. 2942-2943
          www.aub.edu.lb/K2P
          K2P@aub.edu.lb

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