Multimedia

In developed countries, official identification systems are a fact of life, providing the foundation for a myriad of transactions including elections, pension payments, and the legal system. Without functional ID systems, citizens of many developing countries miss out on the benefits of official identification. On this week’s Wonkcast, I am joined by CGD senior fellow Alan Gelb who has been researching the potential for new biometric technology, such as computerized finger printing and iris scans, to help poor countries leapfrog the long and complicated process of setting up ID systems.

In our conversation, Alan explains the depth of the problem in the developing world. “In most rich countries there are already identity systems that work more or less well,” he says. “In many poor countries, not only is there no consistent identity system but at least half of the people don’t have records of birth at all. They simply don’t exist.”

Leaders from around the world meet in New York City next week to review progress towards the Millennium Development Goals, a list of development targets set in 2000, after a decade of UN conferences and summits, for achievement by 2015. Ahead of the MDG Summit, I spoke with Michael Clemens and Todd Moss, senior fellows at the Center for Global Development and outspoken critics of the design and implementation of the MDGs. On the Global Prosperity Wonkcast, we discuss where Todd and Michael think that the MDG effort went wrong, and how it could be better going forward.

I'm joined this week by Ayah Mahgoub, a program coordinator here at the Center for Global Development who works on issues related to the effectiveness of foreign aid. Along with Nancy Birdsall and Bill Savedoff, Ayah is working on designing a new form of development assistance called Cash on Delivery Aid that would pay for progress on specific development outcomes.

Nancy summed up the basic idea of the Cash on Delivery approach on a Wonkcast last month—read that post or go here for a short introduction to the idea of COD Aid. While discussions are underway to develop COD aid mechanisms for a number of sectors (including water and health), the initial application is in education. In this sector, a Cash on Delivery contract would pay recipient governments a fixed amount for each additional student who completes primary school and take a standardized test. Ayah is helping to match aid donors and recipient governments who are interested in supporting a pilot of this innovative approach. I asked Ayah to tell us about the countries where the first COD Aid programs might happen: Malawi, Ethiopia, and Liberia.

Can aid donors find a better way to deliver aid? My guest this week is Nancy Birdsall, president of the Center for Global Development. Along with William Savedoff and Ayah Mahgoub, Nancy is working on a potential new way of disbursing foreign assistance called Cash on Delivery Aid. COD Aid seeks to devise simple, results-based contracts that reward developing countries for making progress towards previously agreed goals—such as increased primary school completion rates, vaccination coverage, or access to clean water.

In the podcast, Nancy explains that the traditional mode of giving aid, in which donors often take an active role in prescribing which actions recipient governments should take, can undermine incentives for governments to identify problems and design and implement locally appropriate solutions. "We have to create a system in which outside resources actually help the developing country governments find out what works in their particular setting," says Nancy.