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Information Bypass: Using Low-cost technological innovations to curb leakages in welfare programs

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  • Debnath, Sisir
  • Nilayamgode, Mrithyunjayan
  • Sekhri, Sheetal

Abstract

Distribution networks entrusted to run welfare programs can have enduring leakages due to the expensive monitoring of agents at several echelons. This paper features a technological innovation harnessing low-cost computing that can help to curb leakages and reduce inefficiencies in such complex welfare distribution networks. A phone-based ‘Interactive Voice Response System’ that requires the last-mile distribution agents to report the number of beneficiaries at a very high frequency concurrently with business-as-usual beneficiary information reporting by the middle-tier delivery agents serves as a mechanism for increasing accountability. Using the roll-out of this system, we demonstrate that this innovation reduced leakage in school lunch provision in Bihar, India. While independently collected data highlights improvements in delivery, official statistics indicate a decline in the school lunches provision. We use within Bihar cellular towers location to bolster our identification in an instrumental variable framework.

Suggested Citation

  • Debnath, Sisir & Nilayamgode, Mrithyunjayan & Sekhri, Sheetal, 2023. "Information Bypass: Using Low-cost technological innovations to curb leakages in welfare programs," Journal of Development Economics, Elsevier, vol. 164(C).
    • Handle: RePEc:eee:deveco:v:164:y:2023:i:c:s0304387823000925
    DOI: 10.1016/j.jdeveco.2023.103137
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    More about this item

    Keywords

    Welfare programs; ICT; Leakages; Mid-day meals;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health

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