IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2312.13432.html
   My bibliography  Save this paper

Can Digital Aid Deliver During Humanitarian Crises?

Author

Listed:
  • Michael Callen
  • Miguel Fajardo-Steinhauser
  • Michael G. Findley
  • Tarek Ghani

Abstract

Can digital payments systems help reduce extreme hunger? Humanitarian needs are at their highest since 1945, aid budgets are falling behind, and hunger is concentrating in fragile states where repression and aid diversion present major obstacles. In such contexts, partnering with governments is often neither feasible nor desirable, making private digital platforms a potentially useful means of delivering assistance. We experimentally evaluated digital payments to extremely poor, female-headed households in Afghanistan, as part of a partnership between community, nonprofit, and private organizations. The payments led to substantial improvements in food security and mental well-being. Despite beneficiaries' limited tech literacy, 99.75\% used the payments, and stringent checks revealed no evidence of diversion. Before seeing our results, policymakers and experts are uncertain and skeptical about digital aid, consistent with the lack of prior evidence on digital payments for humanitarian response. Delivery costs are under 7 cents per dollar, which is 10 cents per dollar less than the World Food Programme's global figure for cash-based transfers. These savings can help reduce hunger without additional resources, demonstrating how hybrid partnerships utilizing digital platform technologies can help address grand challenges in difficult contexts.

Suggested Citation

  • Michael Callen & Miguel Fajardo-Steinhauser & Michael G. Findley & Tarek Ghani, 2023. "Can Digital Aid Deliver During Humanitarian Crises?," Papers 2312.13432, arXiv.org, revised Oct 2024.
  • Handle: RePEc:arx:papers:2312.13432
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/2312.13432
    File Function: Latest version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Anderson, Michael L., 2008. "Multiple Inference and Gender Differences in the Effects of Early Intervention: A Reevaluation of the Abecedarian, Perry Preschool, and Early Training Projects," Journal of the American Statistical Association, American Statistical Association, vol. 103(484), pages 1481-1495.
    2. Hidrobo, Melissa & Hoddinott, John & Peterman, Amber & Margolies, Amy & Moreira, Vanessa, 2014. "Cash, food, or vouchers? Evidence from a randomized experiment in northern Ecuador," Journal of Development Economics, Elsevier, vol. 107(C), pages 144-156.
    3. Humphreys Macartan, 2015. "Reflections on the Ethics of Social Experimentation," Journal of Globalization and Development, De Gruyter, vol. 6(1), pages 87-112, June.
    4. Karthik Muralidharan & Paul Niehaus & Sandip Sukhtankar, 2016. "Building State Capacity: Evidence from Biometric Smartcards in India," American Economic Review, American Economic Association, vol. 106(10), pages 2895-2929, October.
    5. Karthik Muralidharan & Paul Niehaus & Sandip Sukhtankar & Jeffrey Weaver, 2021. "Improving Last-Mile Service Delivery Using Phone-Based Monitoring," American Economic Journal: Applied Economics, American Economic Association, vol. 13(2), pages 52-82, April.
    6. Benjamin A. Olken, 2015. "Promises and Perils of Pre-analysis Plans," Journal of Economic Perspectives, American Economic Association, vol. 29(3), pages 61-80, Summer.
    7. Jyotsna Puri & Anastasia Aladysheva & Vegard Iversen & Yashodhan Ghorpade & Tilman Brück, 2017. "Can rigorous impact evaluations improve humanitarian assistance?," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 9(4), pages 519-542, October.
    8. Oliver E. Williamson, 2000. "The New Institutional Economics: Taking Stock, Looking Ahead," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 595-613, September.
    9. Jeffrey R Kling & Jeffrey B Liebman & Lawrence F Katz, 2007. "Experimental Analysis of Neighborhood Effects," Econometrica, Econometric Society, vol. 75(1), pages 83-119, January.
    10. Emma Riley, 2024. "Resisting Social Pressure in the Household Using Mobile Money: Experimental Evidence on Microenterprise Investment in Uganda," American Economic Review, American Economic Association, vol. 114(5), pages 1415-1447, May.
    11. McIntosh, Craig & Zeitlin, Andrew, 2022. "Using household grants to benchmark the cost effectiveness of a USAID workforce readiness program," Journal of Development Economics, Elsevier, vol. 157(C).
    12. David S. Lee, 2009. "Training, Wages, and Sample Selection: Estimating Sharp Bounds on Treatment Effects," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 76(3), pages 1071-1102.
    13. Hidrobo, Melissa & Fernald, Lia, 2013. "Cash transfers and domestic violence," Journal of Health Economics, Elsevier, vol. 32(1), pages 304-319.
    14. Ramlatu Attah & Valentina Barca & Andrew Kardan & Ian MacAuslan & Fred Merttens & Luca Pellerano, 2016. "Can Social Protection Affect Psychosocial Wellbeing and Why Does This Matter? Lessons from Cash Transfers in Sub-Saharan Africa," Journal of Development Studies, Taylor & Francis Journals, vol. 52(8), pages 1115-1131, August.
    15. Bedoya Arguelles,Guadalupe & Coville,Aidan & Haushofer,Johannes & Isaqzadeh,Mohammad Razaq & Shapiro,Jeremy, 2019. "No Household Left Behind : Afghanistan Targeting the Ultra Poor Impact Evaluation," Policy Research Working Paper Series 8877, The World Bank.
    16. Alvaro Carril, 2017. "Dealing with misfits in random treatment assignment," Stata Journal, StataCorp LP, vol. 17(3), pages 652-667, September.
    17. Christopher Blattman & Eric P. Green & Julian Jamison & M. Christian Lehmann & Jeannie Annan, 2016. "The Returns to Microenterprise Support among the Ultrapoor: A Field Experiment in Postwar Uganda," American Economic Journal: Applied Economics, American Economic Association, vol. 8(2), pages 35-64, April.
    18. Stéphane J. Baele, 2013. "The ethics of New Development Economics: is the Experimental Approach to Development Economics morally wrong?," The Journal of Philosophical Economics, Bucharest Academy of Economic Studies, The Journal of Philosophical Economics, vol. 7(1), November.
    19. Macartan Humphreys, 2015. "Reflections on the Ethics of Social Experimentation," WIDER Working Paper Series wp-2015-018, World Institute for Development Economic Research (UNU-WIDER).
    20. Jonathan de Quidt & Johannes Haushofer & Christopher Roth, 2018. "Measuring and Bounding Experimenter Demand," American Economic Review, American Economic Association, vol. 108(11), pages 3266-3302, November.
    21. JACOBUS de HOOP & Mitchell Morey & David Seidenfeld, 2019. "No Lost Generation: Supporting the School Participation of Displaced Syrian Children in Lebanon," Journal of Development Studies, Taylor & Francis Journals, vol. 55(S1), pages 107-127, December.
    22. Beath, Andrew & Christia, Fotini & Enikolopov, Ruben, 2013. "Empowering Women through Development Aid: Evidence from a Field Experiment in Afghanistan," American Political Science Review, Cambridge University Press, vol. 107(3), pages 540-557, August.
    23. Angelucci Manuela, 2008. "Love on the Rocks: Domestic Violence and Alcohol Abuse in Rural Mexico," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 8(1), pages 1-43, October.
    24. Jenny C. Aker & Rachid Boumnijel & Amanda McClelland & Niall Tierney, 2016. "Payment Mechanisms and Antipoverty Programs: Evidence from a Mobile Money Cash Transfer Experiment in Niger," Economic Development and Cultural Change, University of Chicago Press, vol. 65(1), pages 1-37.
    25. Jiao Luo & Aseem Kaul, 2019. "Private action in public interest: The comparative governance of social issues," Strategic Management Journal, Wiley Blackwell, vol. 40(4), pages 476-502, April.
    26. Salti, Nisreen & Chaaban, Jad & Moussa, Wael & Irani, Alexandra & Al Mokdad, Rima & Jamaluddine, Zeina & Ghattas, Hala, 2022. "The impact of cash transfers on Syrian refugees in Lebanon: Evidence from a multidimensional regression discontinuity design," Journal of Development Economics, Elsevier, vol. 155(C).
    27. Nathan Nunn & Nancy Qian, 2014. "US Food Aid and Civil Conflict," American Economic Review, American Economic Association, vol. 104(6), pages 1630-1666, June.
    28. Erica Field & Rohini Pande & Natalia Rigol & Simone Schaner & Charity Troyer Moore, 2021. "On Her Own Account: How Strengthening Women's Financial Control Impacts Labor Supply and Gender Norms," American Economic Review, American Economic Association, vol. 111(7), pages 2342-2375, July.
    29. John Hoddinott & Susanna Sandström & Joanna Upton, 2018. "The Impact of Cash and Food Transfers: Evidence from a Randomized Intervention in Niger," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 100(4), pages 1032-1049.
    30. Gustavo J. Bobonis & Melissa González-Brenes & Roberto Castro, 2013. "Public Transfers and Domestic Violence: The Roles of Private Information and Spousal Control," American Economic Journal: Economic Policy, American Economic Association, vol. 5(1), pages 179-205, February.
    31. Crost, Benjamin & Felter, Joseph H. & Johnston, Patrick B., 2016. "Conditional cash transfers, civil conflict and insurgent influence: Experimental evidence from the Philippines," Journal of Development Economics, Elsevier, vol. 118(C), pages 171-182.
    32. Ashley Pople & Ruth Hill & Stefan Dercon & Ben Brunckhorst, 2021. "Anticipatory Cash Transfers in Climate Disaster Response," CSAE Working Paper Series 2021-07, Centre for the Study of African Economies, University of Oxford.
    33. Melissa Hidrobo & Amber Peterman & Lori Heise, 2016. "The Effect of Cash, Vouchers, and Food Transfers on Intimate Partner Violence: Evidence from a Randomized Experiment in Northern Ecuador," American Economic Journal: Applied Economics, American Economic Association, vol. 8(3), pages 284-303, July.
    34. Blair, Graeme & Coppock, Alexander & Moor, Margaret, 2020. "When to Worry about Sensitivity Bias: A Social Reference Theory and Evidence from 30 Years of List Experiments," American Political Science Review, Cambridge University Press, vol. 114(4), pages 1297-1315, November.
    35. Hannah Tappis & Shannon Doocy, 2018. "The effectiveness and value for money of cash-based humanitarian assistance: a systematic review," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 10(1), pages 121-144, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lagomarsino, Bruno Cardinale & Rossi, Martin A., 2024. "JUE insight: The unintended effect of Argentina's subsidized homeownership lottery program on intimate partner violence," Journal of Urban Economics, Elsevier, vol. 142(C).
    2. Heath, Rachel & Hidrobo, Melissa & Roy, Shalini, 2020. "Cash transfers, polygamy, and intimate partner violence: Experimental evidence from Mali," Journal of Development Economics, Elsevier, vol. 143(C).
    3. Harris, J. Andrew & van der Windt, Peter, 2023. "Empowering women or increasing response bias? Experimental evidence from Congo," Journal of Development Economics, Elsevier, vol. 164(C).
    4. Jeong,Dahyeon & Trako,Iva, 2022. "Cash and In-Kind Transfers in Humanitarian Settings : A Review of Evidence and Knowledge Gaps," Policy Research Working Paper Series 10026, The World Bank.
    5. Chakrabarti, Averi & Handa, Sudhanshu & Angeles, Gustavo & Seidenfeld, David, 2020. "A cash plus program reduces youth exposure to physical violence in Zimbabwe," World Development, Elsevier, vol. 134(C).
    6. Lehmann, M. Christian & Matarazzo, Hellen, 2019. "Voters’ response to in-kind transfers: Quasi-experimental evidence from prescription drug cost-sharing in Brazil," Economics Letters, Elsevier, vol. 184(C).
    7. Roy, Shalini & Hidrobo, Melissa & Hoddinott, John F. & Ahmed, Akhter, 2021. "Transfers, behavior change communication, and intimate partner violence: Post-program evidence from rural Bangladesh," IFPRI book chapters, in: Securing food for all in Bangladesh, chapter 15, pages 549-590, International Food Policy Research Institute (IFPRI).
    8. Jorge M. Agüero & Veronica Frisancho, 2022. "Measuring Violence against Women with Experimental Methods," Economic Development and Cultural Change, University of Chicago Press, vol. 70(4), pages 1565-1590.
    9. Sudhanshu Handa & Silvio Daidone & Amber Peterman & Benjamin Davis & Audrey Pereira & Tia Palermo & Jennifer Yablonski, 2018. "Myth-Busting? Confronting Six Common Perceptions about Unconditional Cash Transfers as a Poverty Reduction Strategy in Africa," The World Bank Research Observer, World Bank, vol. 33(2), pages 259-298.
    10. Shuo Chen & Yaohui Peng & Danli Wang, 2024. "Communism and patricide: Collectivization and domestic violence in 1960s China," Economic History Review, Economic History Society, vol. 77(2), pages 703-727, May.
    11. Bilge Erten & Pinar Keskin, 2024. "Trade-offs? The Impact of WTO Accession on Intimate Partner Violence in Cambodia," The Review of Economics and Statistics, MIT Press, vol. 106(2), pages 322-333, March.
    12. Sahay, Abhilasha & Dervišević, Ervin & Perova, Elizaveta, 2023. "Conditional cash transfers and violence against women – Does the type of violence matter?," Social Science & Medicine, Elsevier, vol. 333(C).
    13. Kibris, Arzu & Arbatli, Eren & Williams, Cole, 2024. "Adjusting to Toxic Husbands : Normalization of Domestic Violence by Women," QAPEC Discussion Papers 25, Quantitative and Analytical Political Economy Research Centre.
    14. Cullen, Claire & Joshi, Sarthak & Vecci, Joseph & Talbot-Jones, Julia, 2024. "Female Empowerment and Male Backlash: Experimental Evidence from India," IZA Discussion Papers 17450, Institute of Labor Economics (IZA).
    15. Ana Maria Buller & Amber Peterman & Meghna Ranganathan & Alexandra Bleile & Melissa Hidrobo & Lori Heise, 2018. "A Mixed-Method Review of Cash Transfers and Intimate Partner Violence in Low- and Middle-Income Countries," The World Bank Research Observer, World Bank, vol. 33(2), pages 218-258.
    16. Sofia Amaral, 2015. "Do Improved Property Rights Decrease Violence Against Women in India?," Discussion Papers 15-10, Department of Economics, University of Birmingham.
    17. Emma Riley, 2024. "Resisting Social Pressure in the Household Using Mobile Money: Experimental Evidence on Microenterprise Investment in Uganda," American Economic Review, American Economic Association, vol. 114(5), pages 1415-1447, May.
    18. Quattrochi, John & Aker, Jenny C. & van der Windt, Peter & Voors, Maarten, 2020. "Contributions of experimental approaches to development and poverty alleviation: Field experiments and humanitarian assistance," World Development, Elsevier, vol. 127(C).
    19. Erica Field & Rohini Pande & Natalia Rigol & Simone Schaner & Charity Troyer Moore, 2021. "On Her Own Account: How Strengthening Women's Financial Control Impacts Labor Supply and Gender Norms," American Economic Review, American Economic Association, vol. 111(7), pages 2342-2375, July.
    20. Guigonan S. Adjognon & Daan van Soest & Jonas Guthoff, 2021. "Reducing Hunger with Payments for Environmental Services (PES): Experimental Evidence from Burkina Faso," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(3), pages 831-857, May.

    More about this item

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arx:papers:2312.13432. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.