Opportunities for Improving Digital Identification in ... Opportunities for Improving Digital Identification

  • View
    0

  • Download
    0

Embed Size (px)

Text of Opportunities for Improving Digital Identification in ... Opportunities for Improving Digital...

  • Copyright © 2020 GSM Association

    Opportunities for Improving Digital Identification in Social Cash Transfer Programmes through Mobile Insights from Kenya and Malawi

    April 2020

  • Opportunities for Improving Digital Identification in Social Cash Transfer Programmes through Mobile

    The GSMA represents the interests of mobile operators worldwide, uniting more than 750 operators with almost 400 companies in the broader mobile ecosystem, including handset and device makers, software companies, equipment providers and internet companies, as well as organisations in adjacent industry sectors. The GSMA also produces the industry-leading MWC events held annually in Barcelona, Los Angeles and Shanghai, as well as the Mobile 360 Series of regional conferences. For more information, please visit the GSMA corporate website at www.gsma.com Follow the GSMA on Twitter: @GSMA

    Author: Lani Jacobs, Insights Manager (Digital Identity, GSMA) Research conducted by: Busara Center for Behavioral Economics

    This document is an output of a project funded by UK aid from the Department for International Development (DFID), for the benefit of developing countries. The views expressed are not necessarily those of DFID.

    The GSMA Digital Identity Programme is uniquely positioned to play a key role in advocating and raising awareness of the opportunity of mobile-enabled digital identity and life-enhancing services. Our programme works with mobile operators, governments and the development community to demonstrate the opportunities, address the barriers and highlight the value of mobile as an enabler of digital identification. For more information, please visit the GSMA Digital Identity website at www.gsma.com/digitalidentity Follow GSMA Mobile for Development on Twitter: @GSMAm4d

    Digital Identity

    https://www.mwcbarcelona.com/ https://www.mwclosangeles.com/ https://www.mwcshanghai.com/ https://www.mobile360series.com/ https://www.gsma.com/ https://twitter.com/gsma

  • Opportunities for Improving Digital Identification in Social Cash Transfer Programmes through Mobile

    Executive summary ..................................................................................2 Objectives and methodology ..................................................................6

    The market opportunity ..........................................................................7 Case study: Kenya ....................................................................................8 Case study: Malawi ................................................................................... 12

    Identification challenges and opportunities ....................................... 16 Targeting and enrolment ...................................................................................18 Registration .............................................................................................................18 Disbursement .........................................................................................................21

    Mobile-enabled verification concepts ..................................................26 Remote verification ..............................................................................................28 Flexible payment collection by proxy ...........................................................32

    The opportunity for mobile-enabled digital identification and verification .........................................................................................36 Conclusion: Proposed next steps ...................................................................37

    Appendix 1: Methodology and sample .................................................38

    Appendix 2: Additional case studies ....................................................40

    Contents

  • Executive summary As of 2015, every country in the world had at least one social protection programme in place, and the average developing country had about 20 programmes.1 Social benefit payments, or social cash transfers (SCTs) as they are commonly called, have become an increasingly popular component of these social protection systems in recent years. Yet, some populations continue to experience higher levels of exclusion from social safety net programmes, including SCTs.2 In many cases, this is due to challenges related to enroling, identifying and communicating with beneficiaries.3 As the most ubiquitous technology on the planet, mobile is uniquely positioned to support institutions with these challenges and ensure their target populations can fully participate in these programmes.

    1 World Bank (2015), The State of Social Safety Nets 2015. 2 ODI (2018), New projections show extreme poverty is falling – but not fast enough. 3 GSMA (2019), Digital Identity and Social Cash Transfers.

    Executive summary2

    Opportunities for Improving Digital Identification in Social Cash Transfer Programmes through Mobile

    https://openknowledge.worldbank.org/bitstream/handle/10986/22101/9781464805431.pdf https://www.odi.org/blogs/10688-new-projections-show-extreme-poverty-falling-not-fast-enough https://www.gsma.com/mobilefordevelopment/wp-content/uploads/2019/12/Digital-identity-and-social-cash-transfers-Web2.pdf

  • Ending poverty is the first of the United Nations Sustainable Development Goals (SDGs), which also set targets to implement nationally appropriate social protection systems and achieve substantial social protection coverage among the poor and vulnerable by 2030. Over the last three decades, the percentage of the world’s population living in extreme poverty has fallen drastically, from 36 per cent in 1990 to 8.6 per cent in 2018.4 However, one out of every five children continues to live in extreme poverty, as do 17 per cent of those living in rural areas.5 Additionally, in 2015, over 50 per cent of people living in extreme poverty were located in Sub-Saharan Africa, and the World Bank estimates this will increase to nearly 90 per cent by 2030.6

    Governments and non-governmental organisations (NGOs) are working hard to tackle this through wide-ranging social protection programmes. Following a recent shift in focus from food aid to emergency cash transfers, and from short-term to longer term humanitarian support, regular social benefit payments have become an increasingly common component of these systems.7 In fact, as of 2018, SCT programmes accounted for over half of all social protection spending worldwide.8 SCT programmes are increasingly considered one of the most cost-effective and adaptable components of social protection systems. They have also been found to contribute positively to local economies and, in the case of unconditional cash transfers, to provide beneficiaries with greater autonomy over how they use the financial support they receive.9

    4 ODI (2018), New projections show extreme poverty is falling – but not fast enough. 5 https://www.un.org/sustainabledevelopment/poverty/ 6 https://www.worldbank.org/en/news/video/2018/10/17/new-ways-of-looking-at-poverty 7 The World Bank (2012), The Cash Dividend: The Rise of Cash Transfer Programs in Sub-Saharan Africa. 8 World Bank (2018), The State of the Social Safety Nets 2018. 9 ODI (2018), The Political Economy of Cash Transfer Programmes in Brazil, Pakistan and the Philippines. 10 https://www.un.org/sustainabledevelopment/wp-content/uploads/2016/08/1.pdf 11 World Bank (2018), The State of Social Safety Nets 2018. 12 GSMA (2019), Digital Identity and Social Cash Transfers.

    Today, however, 55 per cent of the world’s population has no access to any form of social protection.10 Rates of exclusion are highest in low- income countries, where they are least able to direct resources to those who need them most. Only a tenth of the poorest quintile in Sub-Saharan Africa and a fifth of the poorest quintile in Asia have access to social safety nets.11 In many cases, the poorest segments are excluded from these programmes because of challenges related to enroling, identifying and communicating with beneficiaries.12

    Efficient and widespread identification and verification methods are essential to validate recipients throughout the enrolment and disbursement process. Yet, in many low-income countries, access to official forms of identification, such as birth certificates or national identity documents, remains low, particularly among the poorest, oldest and most remote segments of society. Additionally, many SCT programmes require beneficiaries to validate their identity in person, often at multiple stages in the disbursement process, which can be expensive and less efficient than remote, digital methods of verification. Equally, when SCT programmes are digitised, it can be difficult to confirm whether the intended beneficiary has received the payment.

    Executive summary 3

    Opportunities for Improving Digital Identification in Social Cash Transfer Programmes through Mobile

    https://www.odi.org/blogs/10688-new-projections-show-extreme-poverty-falling-not-fast-enough https://www.un.org/sustainabledevelopment/poverty/ https://www.worldbank.org/en/news/video/2018/10/17/new-ways-of-looking-at-poverty http://documents.worldbank.org/curated/en/435291468006027351/pdf/672080PUB0EPI0020Box367844B09953137.pdf https://openknowledge.worldbank.org/bitstream/handle/10986/29115/9781464812545.pdf?sequence=5&isAllowed=y https://www.odi.org/sites/odi.org.uk/files/resource-documents/12567.pdf https://www.un.org/sustainabledevelopment/wp-content/uploads/2016/08/1.pdf https://openknowledge.worldbank.org/bitstream/handle/10986/29115/9781464812545.pdf?seq