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This report explores the effects of cash transfers on local markets. It tests the hypothesis that ˜cash transfers to poor households lead to integration of markets in remote areas and strengthen existing well-integrated market systems. To test the hypothesis a case study was conducted in Northern Uganda, to assess the effect of cash transfers on unstructured markets. The Northern Uganda experience represents the backbone of the report, even if findings have been complemented and enriched with the review of other experiences and recent literature.