Coronavirus has been an eye-opener. Much of the assistance we provide under the social safety net is misplaced. In many cases, those who don’t need it, are receiving assistance. And those who need assistance, are not receiving it. This is reality and so rather than handing out the aid from person to person, the entire system must be brought under a digital system. Given the existing reality of the COVID-19 situation, social safety net services provided to the poor and ultra poor people in the country must be digitised.
Speakers voiced these opinions at a virtual roundtable conference on ‘Expansion and challenges of social security in digital transactions’ on Tuesday, . The roundtable was organised jointly by Prothom Alo and the research organisation Policy Research Institute (PRI).
After the opening address by Prothom Alo’s associate editor Abdul Quayum, the keynote was presented by PRI’s research director MA Razzak.
Executive director of BRAC, Asif Saleh, said that it is good to have a National ID card (NID) or mobile account, but that should not mean that a person entitled to assistance would be deprived if he or she didn’t have these cards or accounts.
In the keynote paper it was said that the country’s social safety net programme had a long history, but such programmes were mostly implemented on an ad hoc basis. Though the national social security strategy was prepared in 2015, the COVID-19 outbreak exposed the dire need for digitisation of the social safety net system. The prevailing circumstances should be taken as an opportunity to refurbish the entire system.
It was said that before coronavirus arrived on the scene, the number of poor in the country was 40 million. The budget for 120 social security programmes was Tk 700 billion, less than 2.5 per cent of the GDP. And accurately identifying the beneficiaries was also a challenge. Using Bangladesh Bureau of Statistics (BBS) survey, it was seen that 71 per cent of the deserving people remained outside of the social safety net. And 47 per cent of those included in the net were not entitled to the assistance.
Due to COVID-19, the keynote pointed out, the poor population of the country was increasing to 45 million to 50 million. Of them, 15 million required assistance. If 12 million poor persons were directly paid Tk 3,000 each for three months, around Tk 110 billion would be spent and that would be justified. That could be done by creating a project, avoiding all corruption and ensuring cash assistance to the 15 million people. Women could be given priority as recipients of this assistance.
Electing beneficiaries
Executive director of BRAC, Asif Saleh, said that it is good to have a National ID card (NID) or mobile account, but that should not mean that a person entitled to assistance would be deprived if he or she didn’t have these cards or accounts. It is a matter of concern that some of these people may be overlooked. At the same time, accounts should be opened for them. For example, he said, “BRAC is providing assistance to 300,000 people and we had initially thought many would be overlooked. Not everyone has mobiles. We only got 24,000 people. Then we asked if they knew anyone with mobile whom they could trust. Immediately the number went up by 84 per cent. So selecting the beneficiaries must be done speedily and, at the same time, their constraints must be taken into cognizance.”
Selecting beneficiaries through digital data
Managing director of bKash, Kamal Quadir, said selecting beneficiaries by using digital data can be as accurate as possible. Even then, there is a 4 to 5 per cent margin of error. However, it is a matter of relief that a list of 5 million families entitled to cash assistance has been drawn up and no one could filch this money.
Policy support needed
Managing director of Dutch-Bangla Bank, Abul Kasem Md Shireen, said other than mobile financial services (MFS), wages and salaries must be paid through agent banking. The government has asked for Tk 50 billion to be paid through bank accounts or MFS and so the number of accounts has increased. That was possible because of policy support. If the assistance was to be given physically, then this wouldn’t have happened. If the government wants, the entire social safety net system can be brought under the digital system. In agent banking, fingerprints are used to identify the beneficiary and make the payment.
Shireen was not happy that the money was only to be paid through government banks. He said, “We have Bangladesh Bank approval so why should only the government banks qualify for this service?”
No one should be deprived
Programme manager of the government Access to Information (a2i) project’s digital financial service Tohurul Islam said, the government has taken an impressive step in providing Tk 50 billion for the export oriented industrial sector and also for providing Tk 2,500 for each of 5 million families. It is time now for all the ministries which have been handing out the assistance for so long, to take up the digital system to provide assistance under the social safety net programme. At the same time, no one should be dropped due to technical weaknesses. NGOs can be used in this regard. A model needs to be set up in this connection.
Many problems have emerged in providing the cash to the 5 million families because many NID cards and names are not matching, etc. Actually lists of names can be hung up in front of mosques or primary schools so the people can see who have been included and who have been overlooked.Ahsan Mansur, executive director, PRI
Monitoring is a must
Fellow of the non-government development organisation Unnayan Sommonoy, Khandkar Sakhawat Ali, said that the interests of the recipients must be given priority. No one must be given special preference. The law must be followed. Strict monitoring must be in place to ensure the expenditure is being carried out properly. It is undoubtedly a good step to provide cash to 5 million families. Anyone manipulating the programme must be punished.
Post and telecommunications minister Mustafa Jabbar said that COVID-19 had put pressure on the economic system, unemployment of the poor, etc. Those who live from hand to mouth are in distress. Now 5 million families are being given Tk 2500 each. Eventually the entire social safety net system must be digitised.
He said, “We are using a digital system to get this assistance to the people. We have a lack of data. But we are doing well now in joining the fourth industrial revolution.”
Lists in mosques and schools
Executive director of PRI, Ahsan Mansur, raised the issue of using digital banking for the social safety net. He recommended that any limitations that existed in this regard, be addressed.
He said, “Many problems have emerged in providing the cash to the 5 million families because many NID cards and names are not matching, etc. Actually lists of names can be hung up in front of mosques or primary schools so the people can see who have been included and who have been overlooked.”
The virtual roundtable was held with technical assistance of Prothom Alo’s digital studio.
Prothom Alo’s assistant editor Firoz Chowdhury moderated the roundtable.