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Six Big Ideas: How Financial Services Can Improve Social Protection Delivery

Cash transfers are among the most effective tools for social protection but delivering them in fragile contexts remains a major challenge due to interruptions in financial sector development efforts, limited government capacity, and difficulties reaching remote communities. Leveraging the financial sector for cash transfers improves outcomes for both programs and recipients. Drawing on emerging evidence from highly fragile contexts, the paper presents ways that social protection funders can invest to achieve these gains.

Trust in Transition: Afghanistan’s Hawala System in Crisis and Recovery

Afghanistan’s hawala system plays a critical and evolving role in the country’s financial ecosystem. Since August 2021 its role has only expanded as trust in the banking system faltered. Although hawala faces local competition and international skepticism due to transparency concerns, it remains a vital financial tool. The paper suggests that stakeholders should deepen engagement with hawala networks, support their regulation and formalization, and explore innovative partnerships to advance financial inclusion.

From Crisis to Resilience: The Role of Inclusive Finance in Fragile Countries

Inclusive finance can bolster resilience and unlock opportunities for low-income people in fragile countries. CGAP identifies three levers of change for funders: leveraging humanitarian cash transfers, understanding informal financial services, and improving local market facilitation.