Publications

Together with a lockdown and an information campaign, India’s early response to the Covid-19 pandemic included the launch of PMGKY, a major social protection package. This built on previous digital investments including in direct benefit transfer to financial accounts as well as on several established programs. The paper reports on the implementation of PMGKY, based on a household survey conducted 4-6 weeks after the lockdown and launch of the program. PMGKY successfully delivered benefits to millions of households, including food rations. At the same time, in spite of the information campaign, people did not always realize that payments had been delivered into their accounts while some also faced logistical difficulties in reaching cash-out points because of the severe disruption related to the pandemic and the lockdown.

Many countries have launched unprecedented relief packages to cushion the economic and social impact of the COVID-19 pandemic. This short review considers some initial lessons emerging from selected countries around the use of digital technology to implement these government-to-people (G2P) social transfer programs.

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.

Reforming inefficient and inequitable energy subsidies continues to be an important priority for policymakers as does instituting “green taxes” to reduce carbon emissions. The paper outlines how the use of digital technology can help accomplishing those reforms, drawing on four country cases. The technology is only a mechanism; it does not, in itself, create the political drive and constituency to push reform forward.

The ability of digital payments to deliver better outcomes for governments, businesses, and individuals—including driving financial inclusion—has been one of the success stories of the digital age.

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. 

Recent advances in the scope and sophistication of identification systems could have far-reaching consequences for development. While there is no one-size-fits-all approach, there are common features that ID systems should share if they are to support development.