To Help the World’s Poor, Put Money on Their Phones

The global economic crisis has caused historic job losses in the developed world. For workers in poor countries, the consequences are even more dire. In places where the virus is surging, swaths of the economy remain closed and millions have seen their livelihoods vanish. The World Bank estimates the pandemic will push 71 million into extreme poverty, defined as living on less than $1.90 a day; other forecasts predict the number will be even higher.

Governments are struggling to respond. The world’s lowest-income countries have spent, on average, just $1 per capita on direct social assistance to their citizens, compared with $121 in the richest countries. To avert further calamity, governments in the developing world must do more to assist the worst-off, and rich countries should be prepared to help. They can best do so by harnessing technology to put money directly in the hands of the poor.