The International Monetary Fund (IMF), which is the major financial agency of the United Nations (UN), and an international financial institution, on Wednesday (October 12) called India's deployment of a direct cash transfer scheme, among other similar social welfare programmes, a "logistical marvel".
The Deputy Director of the Fiscal Affairs Department at the IMF, Paolo Mauro, told the media at a news conference that there is a lot to learn from India and other examples around the globe as they have such models from pretty much every continent and every level of income. He said in the case of India; it is actually quite impressive.
India's Direct Cash Transfer & Other Similar Programmes
In response to a question asked on the successful implementation of the direct cash transfer programme by the Government of India, Mauro stated, "In fact, just because of the sheer size of the country, it is a logistical marvel how these programmes that seek to help people who are at low-income levels reach literally hundreds of millions of people."
He said that there are programmes that specifically target women, the elderly and farmers. He added that the interesting part is that there is a lot of technological innovation in these examples.
The Deputy Director said that in the case of India, the use of the unique identification system -- Aadhaar -- is one of the striking features. He said that in other countries, also, there is ampler use of sending money via mobile banking to people who actually do not possess a whole lot of money, but they have a mobile phone.
Mauro said that being somewhat innovative in identifying people, processing their applications for transfers via digital means, and deploying funds via mobile banking is something that nations can learn from each other. He added that the financial agency of the UN also tries to be somewhat of a convening place where individuals can compare these types of experiences.
Collaboration With IMF On Application Of New Technologies
Since IMF is collaborating with India on the application of new technologies, the Director of the Fiscal Affairs Department, Vitor Gaspar, stated, "One of the most inspiring examples of the application of technology to solve very complicated issues of targeting support to the people who need it most."
The international financial institution has also been working with many African countries in the area of government technology. The Director said that Africa also has several examples of innovation which is relevant and inspiring, and the exchange of experience that Paolo discussed is something that the IMF is trying to organise, and the amount of learning through it is quite surprising. He added that there is a lot going on in India, in Africa and in other parts of the world.
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