Multipurpose Cash Assistance (MPCA), also known as Multipurpose Cash Transfers (MPC) or Multipurpose Cash-Based Assistance, is a form of

humanitarian aid Humanitarian aid is material and Humanitarian Logistics, logistic assistance, usually in the short-term, to people in need. Among the people in need are the homelessness, homeless, refugees, and victims of natural disasters, wars, and famines. Th ...

that provides

cash transfers A cash transfer is a direct transfer payment of money to an eligible person. Cash transfers are either unconditional cash transfers or conditional cash transfers. They may be provided by organisations funded by private donors, or a local or re ...

households A household consists of one or more persons who live in the same dwelling. It may be of a single family or another type of person group. The household is the basic unit of analysis in many social, microeconomic and government models, and is impo ...

crisis A crisis (: crises; : critical) is any event or period that will lead to an unstable and dangerous situation affecting an individual, group, or all of society. Crises are negative changes in the human or environmental affairs, especially when ...

. The cash is intended to meet

basic needs The basic needs approach is one of the major approaches to the measurement of absolute poverty in developing countries globally. It works to define the absolute minimum resources necessary for long-term physical well-being, usually in terms of Co ...

, allowing recipients to allocate the

funds Funding is the act of providing resources to finance a need, program, or project. While this is usually in the form of money, it can also take the form of effort or time from an organization or company. Generally, this word is used when a firm us ...

. Unlike other forms of aid, MPCA is not restricted to specific uses or sectors, making it a versatile tool in

emergency response Emergency services and rescue services are organizations that ensure public safety, security, and health by addressing and resolving different emergencies. Some of these agencies exist solely for addressing certain types of emergencies, while oth ...

and recovery.

Definition

MPCA is:

"A transfer (either regular or one-off) corresponding to the amount of money a household needs to cover, fully or partially, a set of basic and/or recovery needs. The term refers to transfers designed to address multiple needs, with the transfer value calculated accordingly."

Characteristics

* Unrestricted: MPCA is unrestricted – recipients can spend the cash as they see fit. * Cash-Based: MPCA comes as

cash In economics, cash is money in the physical form of currency, such as banknotes and coins. In book-keeping and financial accounting, cash is current assets comprising currency or currency equivalents that can be accessed immediately or near-i ...

cash equivalents Cash and cash equivalents (CCE) are the most liquid current assets found on a business's balance sheet. Cash equivalents are short-term commitments "with temporarily idle cash and easily convertible into a known cash amount". An investment normal ...

, such as bank transfers or

mobile money Mobile payment, also referred to as mobile money, mobile money transfer and mobile wallet, is any of various payment processing services operated under financial regulations and performed from or via a mobile device. Instead of paying with cas ...

. It does not include vouchers or in-kind assistance. * Multipurpose: MPCA allows recipients to address sectors such as

food Food is any substance consumed by an organism for Nutrient, nutritional support. Food is usually of plant, animal, or Fungus, fungal origin and contains essential nutrients such as carbohydrates, fats, protein (nutrient), proteins, vitamins, ...

shelter A shelter is an architectural structure or natural formation (or a combination of the two) providing protection from the local environment. A shelter can serve as a home or be provided by a residential institution. It can be understood as both ...

, and

healthcare Health care, or healthcare, is the improvement or maintenance of health via the preventive healthcare, prevention, diagnosis, therapy, treatment, wikt:amelioration, amelioration or cure of disease, illness, injury, and other disability, physic ...

. * Typically Unconditional: MPCA is usually provided without conditions – recipients are not required to undertake specific actions to receive the assistance.

But not

MPCA is distinct from other forms of aid, including: * Vouchers – MPCA does not include vouchers, even those vouchers that can be used for multiple purposes. * Restrictions – Restricted transfers, whether cash or voucher, are not considered MPCA. * Sector-specific – Cash transfers designed to meet needs in a single sector, such as cash for food or shelter, are not classified as MPCA. * In-Kind assistance – MPCA does not include in-kind aid.

In Practice

* Needs Assessment: MPCA is estimated using assessments of household needs across multiple sectors. * Minimum Expenditure Basket (MEB): MEB is a tool used to calculate the minimum cost of basic needs that can be monetized. This tool helps in defining the value of the MPCA transfer. * Transfer Value: Transfer value is determined based on the MEB and a

gap analysis In management literature, gap analysis involves the comparison of actual performance with potential or desired performance. If an organization does not make the best use of current resources, or forgoes investment in productive physical capital ...

, which incorporates all sources of income or assistance. * Market Analysis: Ensures that local markets can support the incremental

demand In economics, demand is the quantity of a goods, good that consumers are willing and able to purchase at various prices during a given time. In economics "demand" for a commodity is not the same thing as "desire" for it. It refers to both the desi ...

created by MPCA transfers. * Coordination: Between stakeholders, including clusters, sectors, and the Cash Working Group.

Humanitarian response

MPCA is valued for: * Choice: MPCA provides maximum flexibility to affected

populations Population is a set of humans or other organisms in a given region or area. Governments conduct a census to quantify the resident population size within a given jurisdiction. The term is also applied to non-human animals, microorganisms, and pl ...

, allowing them to make choices about how to use the funds, thus promoting

dignity Dignity is a human's contentment attained by satisfying physiological needs and a need in development. The content of contemporary dignity is derived in the new natural law theory as a distinct human good. As an extension of the Enlightenment- ...

and

autonomy In developmental psychology and moral, political, and bioethical philosophy, autonomy is the capacity to make an informed, uncoerced decision. Autonomous organizations or institutions are independent or self-governing. Autonomy can also be ...

. * Efficiency: MPCA can meet multiple needs simultaneously, which increases the efficiency of

delivery. * Markets: By providing cash instead of in-kind aid, MPCA has the potential to stimulate

local economies Community-based economics or community economics is an economic system that encourages local substitution. It is similar to the lifeways of those practicing voluntary simplicity, including traditional Mennonite, Amish, and modern eco-village co ...

and markets, benefiting the broader community as well. * Adaptability: MPCA is adaptable to diverse and changing needs.

References

{{Reflist Humanitarian aid