Debit Cards: Indonesia's Hunger Gamechanger

March 2023
Massachusetts Institute of Technology (MIT)

Debit Cards: Indonesia's Hunger Gamechanger

Introduction

Ever wondered how a simple change can make a big difference? In Indonesia, swapping rice bags for debit cards transformed the way food aid reached the poor - and it's all thanks to some clever economists from MIT. Their study revealed a staggering jump in households receiving their full food entitlement, from a measly 24% to a whopping 81%! Dive into this fascinating read from MIT and discover how a bit of tech and smart thinking significantly reduced poverty and made sure eggs and rice didn't just become a richer person's extra.

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Why It Matters

Discover how this topic shapes your world and future

Digital Dollars to Defeat Hunger

Imagine living in a village where your monthly food supply depends on a bag of rice, but you only receive it fully a quarter of the time. Now picture the game changing overnight: the same aid comes through a debit card, ensuring you get 100% of what you're entitled to. This leap from physical bags of rice to digital transactions in Indonesia isn't just a tech upgrade; it's a revolutionary approach to fighting poverty and hunger. This story matters because it shows how innovative solutions can tackle age-old problems like poverty and food distribution inefficiencies. It's a testament to the power of thinking outside the box, leveraging technology for social good, and the impact of well-designed public policy. For you, it's a glimpse into how the world is interconnected and how a simple policy change can dramatically improve lives thousands of miles away. It's about seeing possibilities where others see dead ends.

Speak like a Scholar

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Randomized controlled trial (RCT)

A study where people are randomly assigned to a group that either receives the intervention being tested or doesn't, to compare outcomes and determine the intervention's effect.

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Development economics

A branch of economics that focuses on improving fiscal, economic, and social conditions in developing countries.

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Digital inclusion

Efforts to ensure individuals and disadvantaged groups have access to and skills to use information and communication technologies.

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Poverty line

The minimum level of income deemed adequate in a particular country to live.

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Allocation

The process of distributing resources among various projects, programs, or people.

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Compliance

In policy terms, it refers to the extent to which beneficiaries of a program follow the rules and guidelines set by the program administrators.

Independent Research Ideas

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The role of technology in enhancing food security

Investigate how different technologies, from mobile banking to blockchain, are being used worldwide to improve food distribution and security.

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Comparative study of poverty reduction strategies

Explore and compare various global strategies for poverty reduction, focusing on their effectiveness, scalability, and sustainability.

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Impact of digital inclusion on rural economies

Delve into how increasing digital access and literacy in rural areas can transform economies, focusing on case studies from different continents.

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Behavioral economics in public policy design

Examine how principles of behavioral economics are applied in designing public policies for social welfare programs, and their outcomes.

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The ethics of aid distribution

A philosophical inquiry into the ethical considerations and dilemmas faced in determining the recipients of aid and the mode of distribution, including digital methods.