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Delivery mechanisms of cash transfer programs to the poor in Bangladesh

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  • Ahmed,Shaikh Shamsuddin

Abstract

This study carries out an analysis of the practical issues and the financial costs relative to the transfer of cash benefits from source to recipients and the cost effective way of transferring funds to the beneficiaries. The study analyzes and compares three alternative delivery mechanisms: The Income Generation Vulnerable Group Development (IGVGD), the Primary Education Stipend Program (PESP) and the Rural Maintenance Program (RMP). This study also looks into targeting and leakage issues that affect delivery mechanism. A field level survey has been conducted to assess beneficiaries view on the existing delivery mechanism and on the prospect of using technologically advanced alternative delivery mechanisms in the rural setup. This study reveals that the potential of using rural bank branches to deliver cash benefits is not fully utilized. Introducing advanced technology to rural banks for improving the efficiency of delivery of benefits is viable, subject to cost and capacity constraints. At the same time, reducing targeting failure and leakages can further enhance delivery efficiency. This study also shows that there are too many unnecessary agents at various levels of delivery and points to the need for appropriate delivery supervision.

Suggested Citation

  • Ahmed,Shaikh Shamsuddin, 2005. "Delivery mechanisms of cash transfer programs to the poor in Bangladesh," Policy Research Working Paper Series 32751, The World Bank.
    • Handle: RePEc:wbk:wbrwps:32751
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    Citations

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    Cited by:

    1. Mohajan, Haradhan, 2013. "Food, Agriculture and Economic Situation of Bangladesh," MPRA Paper 54240, University Library of Munich, Germany, revised 18 Aug 2013.
    2. Akhter Ahmed & Mubina Khondkar & Agnes Quisumbing, 2011. "Understanding the context of institutions and policy processes for selected anti-poverty interventions in Bangladesh," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 3(2), pages 175-192.
    3. del Ninno, Carlo & Subbarao, Kalanidhi & Kjellgren, Annika & Quintana, Rodrigo, 2013. "Improving payment mechanisms in cash-based safety net programs," Social Protection Discussion Papers and Notes 84081, The World Bank.
    4. Donald F. Larson & Julian Lampietti & Christophe Gouel & Carlo Cafiero & John Roberts, 2014. "Food Security and Storage in the Middle East and North Africa," The World Bank Economic Review, World Bank, vol. 28(1), pages 48-73.
    5. Afkar, Rythia & Matz, Julia, 2015. "Cash transfer, In-Kind, or both? Assessing the Food and Nutrition Security Impacts of Social Protection Programs in Indonesia," 2015 Conference, August 9-14, 2015, Milan, Italy 210936, International Association of Agricultural Economists.
    6. Mohajan, Haradhan, 2013. "Food and nutrition of Bangladesh," MPRA Paper 53527, University Library of Munich, Germany, revised 11 Nov 2013.
    7. Irteja Hasan & Israt Sultana & Ali Adnan & Md. Delwar Hossain & Md. Abdur Rouf Talukder & Md. Tareq Jubayer & Md. Mostafizur Rahman & Md. Sagirul Islam Majumder, 2018. "Social Safety Net Programs: Contribution to Socio-Economic Resilience of Vulnerable Group," Asian Journal of Social Sciences and Management Studies, Asian Online Journal Publishing Group, vol. 5(3), pages 105-113.
    8. Afkar, Rythia, 2015. "Joint Evaluation of Cash and In-kind Transfer programs in Indonesia: What are the roles in Food and Nutrition Security?," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205395, Agricultural and Applied Economics Association.
    9. Ahmed, Akhter U. & Khondkar, Mubina, 2010. "An analysis of institutions and policy processes for selected antipoverty interventions in Bangladesh," IFPRI discussion papers 1046, International Food Policy Research Institute (IFPRI).
    10. Barrientos, Armando & Niño-Zarazúa, Miguel, 2011. "Social transfers and chronic poverty: objectives, design, reach and impact," MPRA Paper 30465, University Library of Munich, Germany.

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