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Citizens and States: How Can Digital ID and Payments Improve State Capacity and Effectiveness?

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Citizens and States: How Can Digital ID and Payments Improve State Capacity and Effectiveness?

Citizens and States: How Can Digital ID and Payments Improve State Capacity and Effectiveness?

2nd April 2020

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In Bangladesh, a mother can now receive her child’s education scholarship through her mobile phone account instead of having to stand in long lines at the school on a prearranged day for a cash handout.

Not only does this save her time and effort and provide accurate and documented payment, it also relieves school officials of a burdensome administrative process and of the risk that—rightly or wrongly—they can be accused of corrupt handling of funds.

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In Kenya, a farmer can invest his or her savings directly in a small slice of a government bond through a mobile phone. He can become eligible for a small loan on the basis of a stable record of receipts and payments on his mobile account without posting collateral. In Andhra Pradesh, a state in India with 50 million people, the authorities can drill down through statewide reporting data, in real time and across thousands of delivery points, to monitor the provision of rations to poor beneficiaries.

They can detect transaction failures almost immediately and require rapid follow-up and remediation.

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Report by the Centre For Global Development

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