People generally use it to buy things they need and their lives get better. Simple, really.
What is the best way of ensuring aid money is used effectively and efficiently? In Kenya, charities are experimenting with direct cash transfers, allowing individual recipients to spend the money on whatever they like. Some cash comes with conditions - allowing the bearer to buy only certain things for example, but there's a surge of support for unconditional direct cash transfers, because the research shows it can be incredibly effective.
Emily Aeino Otieno's new tin roof not only helps her collect runoff water when it rains, but it saves her the money she was using to repair thatch twice a year. "I'm happy because I'm not using any more money on my roof," she said. "I can use that money to buy my clothes, food, pay school fees and other expenses." And she also has a little business buying cooking fat in bulk and selling it off in small packets.
In the UK, there has been criticism of government aid payments - especially in relation to direct cash transfers - with suggestions people would waste it or abuse the system. "There is no evidence that recipients of cash transfers are using this cash on goods such as alcohol or tobacco," said Ms Bastagli from the Overseas Development Institute. "There's a common claim that cash transfers can make people lazy or make them work less, but there's no evidence to suggest cash transfers lead to a reduction in people working."
http://www.bbc.com/news/world-africa-39038402
Sister blog of Physicists of the Caribbean in which I babble about non-astronomy stuff, because everyone needs a hobby
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Seems quite beneficial, yes. A form of universal basic income.
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