Ideas to Action:

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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.

Better Regulation Can Improve Financial Inclusion

Poor regulation is a key obstacle to financial inclusion. An enabling regulatory environment is critical for creating incentives for businesses to offer innovative financial services to the poor, and for underserved customers to take up formal financial services.

The Eyes Have It! Development and the Biometrics Revolution

The “identity gap” is large, but it’s closing. Over the past 10 years, developing countries from Afghanistan to Zambia—and the donors that support them—have begun to focus on identity systems. Some have sought to create or extend national identification to cover large populations that previously could not exercise basic rights or access services due to a lack of official documentation. Others have reformed government and NGO programs by creating robust identification to improve quality, increase accessibility and eliminate fraud.

Identity and Development – Alan Gelb and Julia Clark

Being able to prove who you are is a powerful tool that can serve as a basis for exercising rights like voting, accessing financial services and receiving transfers, and reducing fraud. Yet billions of people in the developing world lack a means to officially identify themselves. In this week’s Wonkcast, Alan Gelb and Julia Clark draw from their ongoing research on biometric technology and development to explain how developing country governments and donors can tap advances in biometrics to help empower poor people.

Implementing Oil-to-Cash – Todd Moss

When a poor country finds oil, bad things often get worse. Countries rich in extractable natural resources, especially oil, frequently suffer from crummy governance, high poverty, endemic corruption and conflict. Is it possible to beat this oil curse? My guest on the Wonkcast this week, Todd Moss, CGD vice president for programs and senior fellow, says yes. He argues that a government that transfers some or all of its oil revenue to citizens in a universal, transparent, and regular taxable payment, could strengthen the social contract, fight corruption, and lay the foundation for future prosperity.

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