Technological advances have made it possible to dramatically increase the accountability and transparency of public financing to reduce corruption. For example, if a government decides to construct a road, it can now track how each dollar is being spent, identify all the users of the funds, and ensure that only those authorized to spend money do so on originally intended expenses within the permitted time. Fraud and corruption investigations that now take on average 15 months could be performed at the touch of a button and at a fraction of the cost. More importantly, this type of financial tracking would be a deterrent for bribes in the public sector, which amount to between $1.5 trillion and $2 trillion annually, roughly 2 percent of global GDP. This in turn would increase development impact. All it would take is adopting a cryptocurrency and using blockchain software.
Top tip: if you’re in a meeting discussing anything to do with finance, at some point look wise and say ‘you do realize, blockchain is likely to change everything.’ Of course, there is always a terrifying chance that someone will ask what you actually mean. Worry not, because IDS has produced a handy bluffer’s guide to help you respond. Blockchain for Development – Hope or Hype?, by Kevin Hernandez, is the latest in IDS’ ‘Rapid Response Briefings’ series, (which itself is a nice example of how research institutions can work better around critical junctures/windows of opportunity). It’s only four pages, but in case even that is too onerous, here are some excerpts (aka a bluffer’s guide to the bluffer’s guide).
‘What is blockchain technology?
At its heart, the blockchain is a ledger. It is a digital ledger of transactions that is distributed, verified and monitored by multiple sources simultaneously. It may be difficult to think of something as basic as the way we keep and maintain records as a technology, but this is because record-keeping is so ingrained in daily life, albeit often invisibly. The ubiquity of ledgers is in part the reason why blockchains are held as having so much disruptive potential. Traditionally, ledgers have enabled and facilitated vital functions, with the help of trusted third parties such as financial institutions and governments. These include: ensuring us of who owns what; validating transactions; or verifying that a given piece of information is true.
These are some of the views and reports relevant to our readers that caught our attention this week.
How disasters drive displacement – and what should be done about it
The risk of people being displaced by natural disasters has quadrupled in the last 40 years and, unless governments adopt national and global plans to address the main drivers of displacement, increasing numbers of people will lose their homes to floods, earthquakes and landslides in the future. This is the main message of a report released on Thursday by the Internal Displacement Monitoring Centre (IDMC) ahead of the third World Conference on Disaster Risk Reduction due to take place in Sendai, Japan in the coming days. UN member states are expected to adopt a global plan to reduce disaster risk that will build on the Hyogo Framework for Action adopted 10 years ago. The Hyogo Framework addressed disaster risk reduction but not the risk of being displaced by a disaster..
6 Ways Technology Is Breaking Barriers To Social Change
We all know that technology is changing the world from artificial intelligence to big data to the ubiquity of smart phones, but many of us working to change society are just starting to understand how to harness tech forces for good. The stakes are high: Some 2 billion people continue to live on less than $2 a day. Millions of women and girls around the world lack basic human rights. Forty percent of children in U.S. urban school districts fail to graduate. A slew of initiatives address these and other intractable social issues, yet often, even the most successful ones only address a fraction of the problem.
One of the key messages I took away from TED Global 2014 was that virtual currencies (such as Bitcoin) are a reality, and it is only a matter of time - as little as 5 years, according to some people - before we'd all be using these currencies. The application of virtual currencies to the transfer of money across places and countries seems very promising as it could be nearly costless and instantaneous. Yet I feel that regulators are not prepared for such innovation in the field of cross-border remittances, in part, because they have not had the time to familiarize themselves with these instruments, and in part, also because the implications of virtual currencies for the formulation and implementation of monetary and exchange rate policies are yet to be examined.