electronic mgnrega payments designing the last mile

MicroSaveMarket-led solutions for financial services


Electronic MGNREGA PaymentsDesigning the Last Mile

Mike McCaffrey, Senior Advisor, MicroSaveNew Delhi, India

29 November 2012


Agenda

•The Fijian Experience

•From Access to Active Usage

•Global Last Mile Analogs

•Some Potential Improvements

•Conclusion & Thanks

2


Social Welfare E-Payment Transition in Fiji

3

Progressive Payment System

Beneficiary AnalysisABC Analysis

Budget Dissection

Beneficiary Interviews

Beneficiary Demographics

Staff Interviews

Preparation

Transition

Research


ABC Costing in Fiji

4

Cost Structure Breakdown Actual Estimated Savings

Often Overlooked

Provides Maneuvering

Room


From Access to Active Usage

5


Usage Cost Analysis

6

Technical Solutions Needed

Behavioral Solutions Needed


MicroSave Market Demand Research

7MicroSave 2010-2011 Annual Report.

Giri, A. et al. (August 2011). Relative Risk to the Savings of the Poor in Uttar Pradesh, MicroSave


The Last Mile is a Very Common Problem

8

Rural Schools

Bed nets

Oral Rehydration

Household Sized SolarAnti-Retroviral Drugs

Fertilizers

Datta, S. & Mullainathan, S. (November 2012). Behavioral Design: A New Approach to Development Policy. CGD Policy Paper 016.


Free Financial Inclusion Solutions: Defaults

9Johnson, E. J., & Goldstein, D. (November, 20003). Do Defaults Save Lives? Science. Vol 302.


Case Study of Pilot Savings Experiment in Colombia

10Proyecto Capital (Feburary 2012). Inshort: Case Study of Pilot Savings Experiment in Colombia.


Free Financial Inclusion Solutions

11

81% Increase

16% Increase

Ashraf, N., Karlan, D., & Yin, W. (2006) Tying Odysseus to the Mast: Evidence from a Commitment Savings Product in the Philippines. The Quarterly Journal of Economics. May.

Karlan, D., McCaonnell, M., Mullainathan, S., & Zinman, J. (2010). Getting to the Top of Mind: How Reminders Increase Savings


Thank You

12

electronic mgnrega payments designing the last mile

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