Financial inclusion is a fundamental pillar of development. But Mexico poses a conundrum. In many respects it has been successful at growing its economy and integrating with global markets. Yet among its peers in Latin America, Mexico is the worst-performing at financial inclusion relative to its income; at 36.9%, its rate of inclusion only surpasses three other countries regionally—all with much lower per capita incomes.
Improving the quality, impact, and efficiency of public services is one of the most critical challenges of public policy. There are multiple ways of addressing these challenges, but a common theme is the need to put citizens at the center of governance and service delivery, through empowerment, transparency, accountability, and participation.
India has emerged as a leader in building on its biometric digital ID to reform service and program delivery. It moved quickly to consolidate the rollout of Aadhaar, and then to embed the unique Aadhaar number into program databases. A range of applications, including digital signature and payments, was then constructed on top of the Aadhaar foundation (the India Stack). Together with partners, the Center for Global Development is analyzing the effects of Aadhaar-based reforms. The three programs we discuss below highlight achievements as well as challenges that need to be overcome for greater efficiency and inclusion.
Bangladesh, a country of 165 million people bordering India and Myanmar, is undergoing a rapid economic and social transformation. Bangladesh is also witnessing a digital revolution.
Earlier this year we undertook a field study of Krishna district of Andhra Pradesh (AP), together with collaborators from Microsave, to understand the experience and perceptions around digital governance reforms. Our three surveys—of households, ration shop owners, and bank correspondents—find widespread support for digital governance reforms, including the use of Aadhaar authentication to receive food rations through the public distribution system (PDS) and social pensions through the panchayat, as well as for digital land records. However, we also find some areas for improvement.
What a New Survey of Aadhaar Users Can Tell Us About Digital Reforms: Initial Insights from Rajasthan
India’s Aadhaar biometric identification scheme has registered over 1.1 billion people, including almost all adults in the country and over 15 percent of the global population. Of course, initiatives of this scale cannot escape controversy. What the debate has so far lacked, however, is data. We set out to help fill that gap with a survey focused on a digital governance initiative in the state of Rajasthan.
Doing Business Differently with Subnationals: Recommendations for Global Health Donors in Highly Decentralized Countries
In the big decentralized countries where global disease burden is concentrated, such as India and Indonesia, most public money for health isn’t spent by the national ministry of health, the traditional counterpart for global health funders and technical agencies. Instead, most money is programmed and spent subnationally.
Greater subnational public spending reflects growing democratization, power-sharing, and local self-determination. It also responds to the conviction that local decision-makers understand local realities better than a bureaucrat sitting in the capital city. Yet evidence on the effectiveness of subnational spending on health care and outcomes is mixed at best, and incentives for greater spending and better performance can be weak.