Going digital makes aid programs more effective

Going digital makes aid programs more effective

For years, the Indonesian government sent 10-kilo bags of rice to villages, where local leaders were supposed to distribute them to poor residents every month. But starting about five years ago, recipients were instead sent debit cards to buy the food themselves.

The result, according to a study led in part by MIT economists, was that people received all the food intended for them 81% of the time—as opposed to 24% previously. Under the old system, it’s likely that some was handed out to people not poor enough to be eligible. The cards eliminated this problem.

“That leads to a pretty substantial reduction in poverty,” says coauthor Benjamin Olken. For the poorest 15% of households when the study began, the overall poverty rate fell by 20%. 

The researchers discovered this through a real-world experiment: the government randomly selected 42 out of 105 districts to start the program a year before the others. This meant that results could be compared in similar circumstances.

Says coauthor Abhijit Banerjee, “This is the advantage of doing a randomized controlled trial rather than sitting and speculating about possible outcomes.” 

Keep Reading

Most Popular

The inside story of how ChatGPT was built from the people who made it

Exclusive conversations that take us behind the scenes of a cultural phenomenon.

ChatGPT is about to revolutionize the economy. We need to decide what that looks like.

New large language models will transform many jobs. Whether they will lead to widespread prosperity or not is up to us.

Sam Altman invested $180 million into a company trying to delay death

Can anti-aging breakthroughs add 10 healthy years to the human life span? The CEO of OpenAI is paying to find out.

GPT-4 is bigger and better than ChatGPT—but OpenAI won’t say why

We got a first look at the much-anticipated big new language model from OpenAI. But this time how it works is even more deeply under wraps.

Stay connected

Illustration by Rose Wong

Get the latest updates from
MIT Technology Review

Discover special offers, top stories, upcoming events, and more.

Enter your email

Privacy Policy

Thank you for submitting your email!

Explore more newsletters

It looks like something went wrong.

We’re having trouble saving your preferences. Try refreshing this page and updating them one more time. If you continue to get this message, reach out to us at customer-service@technologyreview.com with a list of newsletters you’d like to receive.

Add a Comment