Can Digital Aid Deliver During Humanitarian Crises?

Abstract

Can digital payments systems help reduce extreme hunger? Humanitarian needs are at their highest since 1945, aid budgets are falling behind, and hunger is concentrating in fragile states where repression and aid diversion are concerns. In such contexts, partnering with governments is not always feasible or desirable. We evaluated a partnership between community, nonprofit, and private organizations to deliver digital payments to extremely poor, female-headed households in Afghanistan, which led to substantial improvements in food security and mental well-being. Despite beneficiaries’ limited tech literacy, 99.75% used the payments, and stringent checks revealed no evidence of diversion. Before seeing results, policymakers and experts are uncertain and skeptical about digital aid, indicating a knowledge gap. Delivery costs are under 7 cents per dollar, which is 10 cents per dollar less than the World Food Programme’s global figure for cash-based transfers. These savings can help reduce hunger without additional resources, demonstrating how hybrid arrangements utilizing digital technologies can help address grand challenges in challenging contexts.