Stimulating economic growth in the least developed countries: direct cash transfers for the retired via mobile phones

Roy Mersland () and Joachim Thøgersen
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Roy Mersland: UIA - University of Agder

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Abstract: The result of current aid policies is that only a small percentage of foreign aid reaches the poorest of the poor in the least developed countries. Current trends of urbanisation and selfreliance place elderly people in an increasingly difficult situation. This paper aims to stimulate debate by introducing an alternative mechanism for foreign aid. With the help of an economic model, we demonstrate how direct cash transfers to elderly people can spur economic growth. Targeting all elderly people above a certain age minimises selection costs and removes perverse incentives. The use of new mobile phone technologies reduces transaction costs and makes our proposed modality feasible including in the least developed countries with low functioning governments.

Keywords: Direct cash transfers; foreign aid; least developed countries; economic growth; elderly people; mobile phone; Direct cash transfers foreign aid least developed countries economic growth elderly people mobile phone (search for similar items in EconPapers)
Date: 2013
Note: View the original document on HAL open archive server: https://hal.science/hal-05220862v1
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Published in Journal of Economic Policy Reform, 2013, 16 (3), pp.259-271. ⟨10.1080/17487870.2013.799905⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05220862

DOI: 10.1080/17487870.2013.799905

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