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CGD Policy Blogs

 

How Can Digital Payments Strengthen State Capacity? Four Areas with High Potential

These recent developments in identification, combined with rising mobile phone ownership, broadening Internet access, and innovative payment delivery mechanisms, can be harnessed to transform the way states implement poverty-reduction programs and improve the lives of their citizens. Digital payments promise faster, more transparent, and lower-cost delivery for existing cash-based government transfers, and can also transform the way governments deliver subsidies. In a new background paper, Dan Radcliffe reviews the evidence on the gains from digital payments and pinpoints four ways in which they can improve development outcomes.

Aadhaar-Based Cash Transfers: Promising Reform, but More Data Needed

India’s shift towards direct benefit transfers (DBTs) is on the fast track. According to official statements, in the 2015-16 fiscal year the central government deposited nearly $5 billion of subsidy and welfare payments directly into the bank accounts of 300 million beneficiaries. It has also set an ambitious target to transfer all payments to the Aadhaar-based biometric DBT platform by the end of 2017. This will surely be the greatest subsidy reform in the world, but we need more data to accurately evaluate its impact.

Identification & Development: What Have We Learnt and Where Are We Going? Comments Requested for Upcoming Book

Effective identification is increasingly seen as a crucial step towards the achievement of several other development goals. In fact, developing countries have been implementing new ID programs at a breakneck speed. To provide a relatively comprehensive picture of these rapidly changing trends, fast-evolving systems, and mushrooming applications is no easy feat, but we have tried to assemble a rough overview of those ID- and development-related topics that struck us as most relevant in the form of a Preliminary Discussion Paper.

Why Registration and ID Are Gender Equality Issues

CGD, along with Data2X and the World Bank Group, recently hosted an event on the intersections of civil registration and vital statistics (CRVS), legal identification, and gender equality. That sounds like a mouthful, to be sure, but it all comes down to one simple idea: both men and women need to be able to prove who they are, so that they can exercise their rights as citizens and be counted by their governments.

Identification and Gender Equality: A Two-Way Street

The importance of ID for empowering women and girls is spot-on, but so far discussions about identification and gender haven’t given equal attention to the other side of the equation. And new data shows that when it comes to identification and gender equality, we encounter a two-way street. Identification isn’t just critical for achieving gender equality; addressing underlying gender discrimination is essential to making sure that all people have identification and the benefits that come along with it.