Does 'Manna from Heaven' help? The role of cash transfers in disaster recovery-lessons from Fiji after Tropical Cyclone Winston.

Abstract

This paper contributes to the evidence on the effectiveness of shock-responsive social protection systems in helping affected households recover from the negative consequences of disasters. It evaluates the influence of the top-up cash transfers provided by the Government of Fiji to poor households in the wake of Tropical Cyclone Winston, which struck the Pacific Island country on 20 February 2016. The impact evaluation strategy incorporates a sharp regression discontinuity design to define treatment and control groups, based on the eligibility threshold of the poverty benefit scheme. The results indicate that treatment households-that is, those that received cash transfers-are significantly more likely to report quicker recovery from various shocks. Female-headed households are more likely to recover from the ramifications, whereas households with older heads are less likely to do so. The presence of a functioning market appears to be a major factor aiding the speed of recovery. Finally, the evidence points towards strong district effects on recovery.