MobileActive.org

Governments make regular payments to at least 170 million poor people worldwide—far more
than the 99 million or so who have active microloans. In this Focus Note, we look at government-to-person (G2P) payments, which include social transfers as well as wage and pension payments. With appropriate experimentation, these payments have the potential to become a vehicle for extending financial inclusion and improving the welfare of poor people. Yet in most countries, far fewer than one-quarter of G2P payments to the poor land in a financially inclusive account—i.e., one that enables recipients to store G2P payments and other funds until they wish to access them and make or receive payments from other people in the financial system, and one that is accessible, in terms of cost and distance.

The first section of this Focus Note reviews the state of G2P payments today, including how we arrived at a figure of at least 170 million poor G2P recipients and a country example (Colombia) showing that several types of G2P payments reach the poor. The second section looks at the early experience with providing financial services to poor G2P recipients. We find that 45 percent of G2P programs launched in the past 10 years use an electronic payment mechanism that creates a foundation on which a financially inclusive account can be offered. Examples where this is already being done (Brazil, India, and South Africa) are discussed. The third section deals with five common concerns of policy makers and social development program managers. Recommendations to government, the financial industry, and donors are
summarized in the conclusion.

The M-Governance project in Kerala, is a comprehensive Mobile Governance project covering ninety odd Government Departments. The objective of the project is to integrate the advancements in mobile technology with various Government departments with an aim to create cost effective, efficient and round the clock Government information systems. The three channels of mobile communication (Voice, Signalling and Data) and a wide range of technologies (Voice Applications, Applications using signalling channel and data service based Applications ) are being used for this purpose. A comprehensive and integrated Service Delivery Platform is being created to roll out the various services and the M-Governance strategy is being formulated.

This paper examines the approach adopted to identify services and design solutions, wherein the primary focus has been to leverage the existing networks and available wireless technologies. The core platforms being used for M-Governance are based entirely on Open Source Technologies.

The paper also tries to present the various challenges faced while trying to implement M-Governance, and the solutions deviced to address some of those challenges, with relevant case studies. The Service Delivery models for various M-Governance Services, some of which have already been frozen, and others that are being considered are also being discussed. The paper also tries to examine the strategy adopted for deployment of these services.