Development – Cash Transfer Mechanisms
World Bank Helps Bangladesh Modernize Cash Transfer Programs for Poor
More Than Six and a Half Million Poor and Vulnerable People Will Benefit
DHAKA, October 28, 2018– The government of Bangladesh today signed a $300 million financing agreement with the World Bank to improve the transparency and efficiency of its major cash transfer programs for the poorest and vulnerable, including the elderly, widows, and people with disabilities.
The Cash Transfer Modernization Project will help the Department of Social Services (DSS) modernize the country’s four major social protection programs using cash transfers by improving beneficiary targeting, program administration, and benefit payments. The programs are: the Old Age Allowance, Allowances for the Widow, Deserted and Destitute Women, Allowances for the Financially Insolvent Disabled, and Stipends for Disabled Students. These programs collectively reach more than six and a half million of the country’s poorest people.
“An efficient, automated and transparent social protection service delivery system is critical to build resilience and create opportunities for the poorest people,” said Qimiao Fan, World Bank Country Director for Bangladesh, Bhutan and Nepal. “The World Bank is helping the government build common digital platforms to better administer safety net programs. This will help reduce administrative costs and errors by identifying the most vulnerable people with greater accuracy and transferring cash in a timely manner.”
In fiscal year 2018, Bangladesh spent about $5.8 billion on social protection, or about 2 percent of its Gross Domestic Product, and improving the efficiency of these programs will help Bangladesh to use public resources more effectively.
The DSS has already started digitizing beneficiary records of its cash transfer programs, and the project will help further strengthen case management and payment processes. To accurately identify recipients of cash transfers, the project will help integrate DSS’s management information system with the Bangladesh Bureau of Statistics’ National Household Database. For more secure and accessible payments to beneficiaries, the system will be linked to the Finance Division’s centralized payment platform, and use a network of banking agents, among others. Such actions—utilizing existing or emerging systems—will help further develop an integrated social protection service delivery system in the country…