CGD in the News

One of the World’s Poorest Countries Found a Better Way to Do Stimulus

November 08, 2021

It was late 2020, and though Bamaze still didn’t know anyone sickened by Covid-19, the pandemic had disrupted his life all the same. The village in Togo where he lives with his wife and infant daughter relied on trade and travelers from nearby Benin. When the border closed after the first recorded infection that spring, prices of basic foodstuffs began climbing precipitously. The 31-year-old typically earned money tutoring, but then local schools shuttered, depriving him of his main source of income. To make matters worse, the seeds he’d sown had baked in the sun instead of taking root because there’s been too little rainfall.

In Togo, a nation of about 8 million people where the average income is below $2 a day, it took the government less than two weeks to design and launch an all-digital system for delivering monthly payments to about a quarter of the adult population. People such as Bamaze, with no tax or payroll records, were identified as in need, enrolled in the program, and paid without any in-person contact. According to Anit Mukherjee, a policy fellow at the Center for Global Development, “the U.S. program looks like a dinosaur” in comparison.