[retrac]

It's not just a problem faced by governments. It shows up with charity too.

Small cash transfers may be one of the most effective form of poverty relief in politically stable poor countries with at least a nascent market economy. In a peer-reviewed trial in Kenya it was found to have substantial positive effects on the local economy: https://en.wikipedia.org/wiki/GiveDirectly#Basic_income_expe...

One of the most common uses of the funds was buy galvanized roofing. It's very expensive compared to thatching up front, but lasts a lifetime and eliminates both the labour and material costs for ongoing maintenance.

That would never have occurred to me. If I had wanted to help them with in-kind donations, I may well have sent something relatively much less useful, lacking awareness of their local context. Very real risk of sending coals to Newcastle, there.

I know that in some developed countries, organizations like food banks also run into this. People will donate food in-kind, but most food banks would rather receive cash to have flexibility in addressing needs as they arise.