The recent crisis in Ukraine has rekindled the debate over the right combination of assistance for refugees. According to the United Nations High Commissioner for Refugees, there were already 6 million refugees living in camps by 2021 due to multiple armed conflicts around the world. Humanitarian Aid Organizations (HOs) are working to help those who are struggling with regulations that prevent integration into the host country. Cash aid is one method supported by HO in addition to providing in-kind aid in the form of grocery and non-food. The purpose of cash aid is to provide refugees with spending flexibility, restore their dignity and improve the wealth of the host community. However, cash assistance has its own challenges. New research in INFORMS journal Manufacturing and service operation management Identify ways retailers can voluntarily offer incentives to lower prices without harming refugees or the host community.
“HO and local government partners are encouraged to adopt a Price Dependent Cash Assistance (PDCA) policy that relieves the distorted incentives of introducing cash assistance, which enables refugees to meet their individual needs. Can be obtained. Retail company Selling more products (and at least making the same profits as before), residents will enjoy cheaper prices, “said Telesilla Kotsi, one of the authors of the study and a professor at The Ohio State University Fisher Business College. I am.
According to a previous study, HO’s cash assistance could be used by local retailers’ market power in a rural environment, with HO’s mission to assist refugees without harming the host community. I am challenging.
Kosshi’s study, Donations to the Refugee Crisis: In-kind vs. Cash Assistance, conducted by Kosshi with Owen Wu and Alfonso Pedraza Martinez of Indiana University, examined three things. refugees Camp in northwestern Greece.
“The PDCA policy coordinates incentives between retailers and HO government partnerships. This new policy on cash assistance serves as a means for retailers to voluntarily set desirable prices, refugees and their hosts. It benefits both communities, “Wu said. Professor of Kelly School of Business. “HO Local government There are economic benefits to welcoming refugees into the community. “
This viable policy can guide HO to improve budget allocation to support refugees living in areas where local market power exists.
“When HO provides cash assistance without considering retailers Market power, HO inadvertently harm refugees and inhabitants. Our policy provides a rare win-win-win, “concludes Pedraza Martinez, a professor at Kelly Business School.
The authors look forward to connecting with HOs involved in supporting Ukrainian refugees to discuss possible challenges in managing the supply chain and allocating support between physical and cash payments for Ukrainian refugees.
“Despite the opportunities for research from the new crisis, we hope peace will spread around the world and our research will no longer be needed,” the author finally said.
Telesilla O. Kotsi et al, Donations to the Refugee Crisis: In-kind vs. Cash Assistance, Manufacturing and service operation management (2022). DOI: 10.1287 / msom.2021.1073
Quote: The partnership between humanitarian organizations and the government was obtained from https://phys.org/news/2022-03-partnership-humanitarian-essential-cash-refugees on March 21, 2022 (3 2022). It is essential to provide cash assistance on the 21st of March). html
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Partnerships between humanitarian organizations and governments are essential to provide cash assistance to refugees
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