When digital aid meets reality: A socio-technical analysis of feasibility requirements in cash-based interventions

Using digital technologies (e.g., mobile phones, prepaid cards, and bank transfers) as delivery mechanisms in cash-based interventions (CBIs) promises to improve the efficiency and effectiveness of humanitarian assistance. Yet, our understanding of the relationships between key feasibility requirements (e.g., beneficiaries' documentation, their mobile ownership, and liquidity capacity of financial service providers (FSPs)), and their dynamic impact on CBIs' performance is limited. In this study, we propose a system dynamics (SD) methodology developed based on insights from interviews with key actors in CBIs for refugees (e.g., FSPs and humanitarians) and field surveys in settlements in Uganda. The proposed methodology introduces novel quantitative metrics for inclusiveness and dignity (i.e., common qualitative aspects used to evaluate CBIs) and is validated through workshops with representatives of CBI stakeholders. We apply the methodology to the case of CBIs for refugees in settlements in Uganda (the largest refugee-hosting country in Africa). Our results show that the projected impact of feasibility requirements on inclusiveness, timeliness, cost efficiency, and dignity can vary unexpectedly over time. Our study suggests that policymakers need to carefully consider tradeoffs when selecting the digital delivery mechanism in CBI.