Despite entering the era of digital age the approach of our government institutions, with control of our resources in the hands of the few, is to act in accordance with their normal modus operandi and delay the process. This is done to the detriment of the masses and is a true reflection of the colonial era bureaucracy and elite capture.
With guidance from the World Bank as part of its financial inclusion strategy, SBP’s National Financial Inclusion Strategy (NFIS) enables individuals & small firms access to formal financial services so that they can undertake payments, savings, credit and insurance services. NFIS payment initiatives were naturally dove-tailed with Ehsaas Program to provide financial support to the lowest ebb of the society especially during the COVID-19 pandemic. A recent Stanford study has praised the Ehsaas program as “world-leading anti-poverty effort to uplift the country’s most vulnerable”, its findings consider the reforms enabled Ehsaas Program to successfully scale impact, increase transparency and improve the efficiency of its interventions, whilst building trust amongst beneficiaries and program administrators. There is no doubt whatsoever that Dr. Sania Nishtar is one of the finest technocrats we have, how easily she shifted gear from healthcare to financial support for the poor is an excellent example. However because of the bureaucratic mindset looking her shoulder even Sania balked at using our technology not only to hasten payments instantly, but at much lesser cost. One can see that in its study Stanford had no idea of the existence (and already in operation) the “miracle” switch allowing opening of bank accounts/ wallets in less than 2 minutes on USSD technology on a normal feature phone would do for Ehsaas, mainly for ensuring there was accountability at the aid being dished out.
Had this SBP/PTA regulated technology platform, already in use for the last 3 years, been adopted Ehsaas could have been administered more effectively, at a faster pace, with improved usage, lesser pilferage, more transparency without human intervention. A concept paper on the implementation of the disbursements under this program was provided to the Ehsaas Administration by the technology platform in April 2020. This plan envisaged linking up the beneficiaries to the Ehsaas Program by providing financial access for disbursement under a many-to-many interoperable end-to-end platform via Unstructured Supplementary Service Data (“USSD”) on the feature mobile phones. This had a simplified approach of converting existing IDs into a mobile bank wallet in the first phase, which would then be funded (bulk disbursements) with the welfare payments. In the second phase established grocery stores (mainly Utility Stores Corporation (USC) with over 5,500 stores) were to be on-boarded to make these purchases. Despite some fresh faces in the USC, the bureaucratic mindset is still prevailing. Over 6.0 million BISP beneficiaries in remote locations would not have the need to physically get cash disbursements; thus avoiding human intervention, unnecessary paper work and administration costs. This model could then be easily repeated in future based on the frequency of BISP disbursements with complete controls at the Ehsaas Program office. The establishment of the National Socio-Economic Registry (NSER) under the BISP was created to ensure objectivity in identifying beneficiaries and for transparency in implementing interventions, and effective targeting. Thus all elements of this objective could have been met enhancing the program’s effectiveness manifolds. With the technology platform was directly linked to NADRA, PTA and SBP it would have enhanced the ground field data of the NSER Survey 2018-19.
Populist chants and slogans regularly promise relief for the poor, the politicians well know they cannot deliver on their promises. To meet the challenges of poverty, access to healthcare, education, food security, and financial stability, our prevailing bureaucratic mindset gives only lip-service to the most deprived. Without having a bank account (or even the hope of one), what about the dream of a “makaan” in the 1970s slogan “Roti, Kapra, and Makaan” (food, cloth, and house) for the unbanked? Bank managers invariably discourage the deprived from having bank accounts (i.e. if they could) because it gives them additional work without commensurate profits. Other than illiteracy as a deterrent try tackling the bank opening application forms. Third-Party Service Providers (TPTPs) rules envisaged a truly extraordinary Scheme to interconnect all mobile financial service providers with financial institutions to democratize the industry and to become a catalyst for greater financial inclusion. Inordinate delays on who “shall” and who “may” participate took years of debate till finally both the regulators jointly issued rules for the industry in 2017.
The irony of the situation is that how come despite having a locally developed technology platform, this could not be implemented for the Ehsaas Program. The best of intentions our finest technocrat notwithstanding, how come she hesitated implementing these game-changing initiatives for alleviating the miseries of the poor? This was simply because of the bureaucratic handicaps that surrounded her. The administrative paperwork, procedures directed by those with no national commitments but the advancement of their own careers destroyed the very essence of providing welfare to the masses. On the other hand, global donor organizations and multilateral aid programs get a front seat audience because these entail overseas trips, photo opportunities and other ancillary benefits which may not be applicable for local companies. The number of ills are embedded in this bureaucratic mindset and the biggest challenge to the adoption of new technologies. The sad part is that this is accepted most brazenly by our political leaders and the ruling elite without any remorse. The “adoption of technology” could be a panacea for all future Government programs in which the masses especially the poverty stricken are to be provided with social safety nets as well as those in need when natural catastrophes occur and funds have to be disbursed securely with speed and transparency. If there is a natural catastrophe to which Pakistan is periodically subjected, i.e. floods or earth quakes, the prime mission is to get aid to the people as soon as possible. Thereafter it is necessary to follow it up with targetted aid meant for food and healthcare, for re-building houses and infra-structure and provide financial aid. While at the outset of the catastrophe, when about 15-20% of the aid is disbursed in the form of food, medicine, water, temporary shelter, etc. one does not really care where the aid is going as long as it reaches most of the affected persons, the 80% that has to be disbursed later in cash and kind cannot be done by simply taking a helicopter and unloading cash over a crowd. It has to be targetted, for that it must be documented. If you had a “miracle switch” from “many to many” in operation, which is a fact of life today in Pakistan, one could do that.
