Government and Social Impact Domain (GSI)
Social welfare spending by governments globally is as high as 30% of GDP for a few developed countries. This spending is towards education, health, family welfare, women and child development, social justice and empowerment, rural development, and basic minimum services depending upon the country’s socio-economic profile. Interestingly, even a developing country like India spends about 11% of total government expenditures on selective social welfare programmes.
Despite these spends, there are last mile delivery challenges that trouble beneficiaries of social welfare programmes. Researches indicate that the leakage in the targeted public distribution system, India’s largest food grain subsidy programme, is 41%1. Almost 45% of subsidised kerosene is lost to the black market while over 65%2 of the fertiliser subsidy does not reach the intended beneficiaries i.e. small farmers in India. Such delays and other hurdles leave a huge leakage gap every year. Further, there are frequent reports of delays in accessing government benefits and exclusion of intended beneficiaries from beneficiary list.
For 20 years, MicroSave has been a part of underprivileged households, understanding their aspirations, goals, challenges and financial behaviour to ensure strengthening of last mile delivery systems. It was during these interactions that we realised that the “intent-action gap” that can sometimes cripple the otherwise well-intentioned government programmes. With rapid change in G2P structure across geographies, MicroSave’s work has evolved from scheme-based assessment and evaluation to policy design and implementation support. We have been instrumental in developing and refining Government of India’s Aadhaar-linked Direct Benefit Transfer (DBT) programme. We are leveraging our learnings from India to assist countries across other geographies to better design their financial inclusion and implementation policies.
MicroSave’s Government and Social Impact Domain (GSI) domain helps in policy design, pilot testing, implementation support, assessment and evaluation of social impact programmes. We work with regulators, governments, policy makers, think tanks, academic institutions, NGOs and service providers in several developing and underdeveloped countries. We have examined national regulations, assessed regulatory compliance and processes, including KYC practices and procedures for Government to Persons (G2P) services, both as independent researchers to provide policy advocacy and as part of technical assistance programmes to specific government as well as private organisations working with government for facilitating G2P services.
MicroSave's work has evolved from assessment and evaluation to policy design