The State of the World’s Cash 2023

Welcome to the State of the World’s Cash 2023 report. This is the third report in the series following the first in 2018 and the second in 2020.

This flagship publication represents a neutral and authoritative assessment of the current context of Cash and Voucher Assistance (CVA) as part of humanitarian aid. Packed with analysis and reflections, it pulls together the views of people involved in CVA policy and practice from around the world, synthesises research from the last three years and cross-references findings with evidence around the views of people in crisis.

The foreword and overview remind us of the scale of humanitarian needs around the world and underscore the critical role of CVA in both mitigating and responding to crisis. These sections draw attention to key issues in the report, celebrate where progress has been made and challenges the lack of action in others. They call on us to use the evidence and recommendations to engage in critical debates, take swift action and accelerate progress.

Despite growing focus on CVA and locally-led response since 2020, major changes is still lacking. Conceptualizations of localization and locally-led response continue to differ, most notably between local and international actors. There are perceived tensions between locally-led CVA and large-scale response – these are resolvable. This chapter shows where change is happening and what’s causing it to stall.

Preparedness and capacity at individual, organizational and system levels is vital if the ambitions to increase the scale, quality, and effectiveness of CVA are to be met. But needs are evolving rapidly. The climate crisis, economic volatility, new technologies and other factors are driving demand for new skills and ways of working. This chapter brings them all together and identifies important gaps and priorities for investment.

For the first time, this report has a full chapter on data and digitalization. It finds that the use of digital payments has increased, giving the possibility of faster payments, larger scale responses, new ways of accessing hard-to-reach areas, potential for more payment choice, plus new opportunities related to targeting and interaction. It includes discussions around interoperability and portability, data risks, cyber security and the need for improved humanitarian and private sector collaboration.

The impacts of climate change and environmental degradation are major factors in many ongoing and complex crises. How can CVA be used to mitigate and respond to climate crisis? What’s the carbon footprint of CVA and how can it be minimized? Currently there are more questions than answers and a shortage of specific policy positions. This chapter provides a comprehensive overview of the issues, debates and serves as a baseline for future progress.

Hundreds of people were involved in the production of the report. Views were share via surveys, focus group discussions and key informant interviews. An advisory group helped shape and review work, as the research and writing team analysed data and prepared report. Editors, translators, designers and many more were also involved. Donor support provided the funds that made it possible.