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Accepted Paper:
The downsides of delivering cash digitally
Nabila Idris
(BRAC University)
Digital transfers are one of the newest social protection delivery vehicles. Although their benefits are numerous, they also allow the global North to engage in novel forms of resource extraction from the global South whilst also compounding existing state weaknesses in the latter.
Paper long abstract:
Covid-19, with its focus on social distancing, has accelerated the shift to digitising cash transfers. Whilst the shift offers several advantages, the actors investing in digital technology are usually global North companies who profit off of each transaction between the state and the welfare recipient in the global South. This presents a new frontier of resource extraction from the global South to the North (Bateman, Duvendack and Loubere, 2019). Alongside, due to their relative novelty, mobile money transfer companies can exploit inadequate regulatory mechanisms, which is often endemic in the weak states of the global South. This paper provides an examination of the specific case of Bangladesh to highlight the need for caution in the adoption of new technology. Rather than advocating for a rejection of technology, it calls for a careful consideration of the potential consequences and a proactive approach to address potential challenges.