Strengthening Fragile States: Evidence from Mobile Salary Payments in Afghanistan

Joshua E. Blumenstock, Michael Callen, Anastasiia Faikina, Stefano Fiorin, Tarek Ghani and Michael J. Callen
Authors registered in the RePEc Author Service: Michael Callen

No 10510, CESifo Working Paper Series from CESifo

Abstract: Building state capacity is uniquely challenging in fragile states. We report results from a randomized evaluation of a major Afghan government initiative to increase capacity by modernizing its payroll. The reform, which required teachers to biometrically register and receive salary payments via mobile money, did little to reduce payments to non-existent “ghost” workers, but significantly reduced delays. The reform also improved educational outcomes and increased formal financial inclusion. The impacts were not immediate – highlighting the importance of long time-horizons – and were largest in urban areas. The results have implications for state-building and are potentially actionable for policymakers.

Keywords: mobile money; state-building; corruption (search for similar items in EconPapers)
JEL-codes: C93 D02 D73 (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-dev, nep-fle and nep-pay
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Working Paper: Strengthening Fragile States: Evidence from Mobile Salary Payments in Afghanistan (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_10510

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