How Digitalization Helped Indonesia’s Poor

Get More Food

In 2019, DIV funded researchers from MIT and Harvard to work with the Government of Indonesia to evaluate the impact of transitioning one of the world’s largest social benefit programs from physical rice distribution to an electronic debit card for purchasing rice. The traditional food subsidy program, Rastra, supports Indonesia’s 15 million poorest households, costs roughly $1.5 billion per year, and was plagued by extensive leakage. Researchers estimated that only one-third of the rice actually reached targeted households. In the recently published study, the research team found that going digital had a major positive effect: millions of Indonesians in the program started receiving the total amount of food intended for them 81 percent of the time—up from only 24 percent of the time under the old system.

The initial results show that the new electronic system has led to a 20 percent decrease in poverty among the poorest households—all at the same cost as the traditional program.

Read more:

“How Debit Cards Helped Indonesia’s Poor Get More Food” in MIT News 

“Electronic Food Vouchers: Evidence from an At-Scale Experiment in Indonesia” in the American Economic Review. 

Additions to DIV’s Portfolio

Students in Liberia practice their math skills by pretending to buy and sell goods at the class market. Credit: Mara Chan/Luminos Fund

Luminos: Scaling a Program to Reach Three Million Out-of-School Children

To get more children back into classrooms, The Luminos Fund runs an education program that helps out-of-school children catch up to their peers so that they can re-enter school at the appropriate grade level. Funded by several donors, IDInsight has been working with Luminos to conduct a randomized controlled trial (RCT) to rigorously evaluate the program’s impact. A new $747,500 grant from DIV will enable Luminos to extend the ongoing RCT to track student enrollment, retention, and learning outcomes for an additional year, and to support the governments of Liberia and The Gambia to determine how public schools can directly implement Second Chance. Luminos aims to reach 137,040 children and 2,302 teachers during the award period and has the potential to reach millions of out-of-school children through government partnerships.

DIV in the Media

The White House Highlights DIV as an Example for Other Federal Agencies

The White House Office of Science and Technology Policy (OSTP) and Office of Management and Budget (OMB) recognized DIV’s work in a recent blog, “Progress on the White House Year of Evidence for Action.” DIV is one of three “promising areas where Federal agencies are serving as leaders in generating and using research-backed knowledge, allowing other agencies to adopt and adapt these practices,” wrote the blog’s authors. “[DIV’s] approaches advance efforts to translate evidence-backed insights into decision making, promoting more effective, equitable outcomes.” Read on.

Devex Reports on DIV’s Approach to Scale

In a recent article, Devex shares how DIV’s new $45 million award from Open Philanthropy will be used to further DIV’s work and to address several key challenges that stand in the way of scaling evidence-based innovation at USAID. The article also summarizes DIV’s approach to funding innovations that tackle the world’s most pressing development challenges. Read on (paywall).

"We're hoping to find new and old ways to...lay the blueprint that will facilitate the widespread uptake of these kinds of interventions from the portfolio into much larger implementation." 

— Sasha Gallant, Chief, DIV 

DIV Innovator Spotlight

Event: Spark Microgrants: Emerging Research—Reversing the Course on Community-Driven Development On April 21, DIV grantee Spark Microgrants will lead a session at USAID’s Agency Learning and Evidence Month (more events listed below). Join the discussion of the evidence behind village grants and facilitation programs, commonly known as community-driven development. The session will discuss the key drivers of success for this potentially low-cost, high-impact model, and the standards that should define it going forward. With support from DIV, Spark is using a quasi-experimental study to measure the effectiveness of its community-driven model toward achieving results. Learn more and register for this event and others in the series.

BURN Manufacturing Opens New Factory in Kenya DIV is a proud partner of BURN Manufacturing, an efficient cookstove producer and an example of how the private sector can effectively support energy efficiency, climate resilience, and job creation, while saving their customers money. BURN recently opened a new factory in Kenya that will double its gender-balanced workforce. BURN has won three DIV awards: Stage 1 to pilot its cookstove and model, Stage 2 to expand its market and adapt for scale; and Stage 3 to expand to West Africa (in progress). Congratulations, BURN! Watch the video.

Essmart Wins 2022-23 F.M. Kirby Prize for Scaling Social Impact Essmart is a social enterprise in India that piloted its model funded by a DIV grant in 2015. Its mission is to grow rural livelihoods by connecting local retail shops and the customers they serve with high-impact livelihood products, such as solar lights and powerful blenders. The F.M. Kirby Prize, offered by the Center for the Advancement of Social Entrepreneurship at Duke University’s Fuqua School of Business, recognizes enterprises working to scale their impact on social or environmental problems around the world. Read more.

1001fontaines Reaches 1 Million Consumers 1001fontaines is a social enterprise that purifies and sells clean, safe drinking water at automated kiosks. With a 2016 DIV grant, 1001fontaines established 90 water production units in Cambodia and improved its business model by testing new water treatment methods. See how 1001Fontaines celebrated this momentous milestone on World Water Day! Watch the video.

Funding Opportunities

Find Opportunities to Work With USAID Partners on the New Sub-Opportunities Portal

USAID’s new Sub-Opportunities portal shares opportunities being offered by USAID’s prime implementing partners, who may seek subcontractors or sub-awardees when they need specialized expertise or on-the-ground support. If you are a potential partner looking to compete for a sub-opportunity, visit the portal to learn more about how to get involved. Search the portal!

Apply to the World's Leading Accelerator for Sanitation Economy Businesses

The Toilet Board Coalition accelerates business solutions to the sanitation crisis through the world-renowned Accelerator, matching entrepreneurs with global business leaders and investors to drive progress on sanitation. The Accelerator is a 12-month program that has been operating for eight years and has facilitated the growth of sanitation economy businesses through business model design, corporate mentorship, and investment opportunities. Apply by April 28, 2023.

African Small Business Catalyst

The U.S. International Development Finance Corporation and U.S. African Development Foundation launched the African Small Business Catalyst to bolster early stage small and medium enterprises (SMEs) in sub-Saharan Africa. The Catalyst is a business accelerator that provides loans ranging from $100,000 to $1 million, technical assistance, and grants up to $100,000 to help SMEs develop business models, strengthen management skills, expand market reach, and deepen impact. SMEs in sub-Saharan Africa working in agriculture; food security; education; healthcare; and water, sanitation, and hygiene are eligible to apply. Special consideration will be given to SMEs that address climate and gender. Learn more and apply by April 15, 2023.

Around USAID

USAID Commits to Generating and Using Evidence to Enhance Aid Effectiveness in New Policy Framework

On March 23, USAID released its new Policy Framework: Driving Progress Beyond Programs, outlining the Agency’s vision for development that lasts beyond the life of its programs. The report highlights the role of the new Office of the Chief Economist to help position USAID to implement more cost-effective programming and rebuild the Agency’s economic expertise. Read the framework.

April is USAID’s Learning and Evidence Month 

Agency Learning and Evidence Month is coming to a screen near you! This month-long virtual series of learning events will highlight how evidence from the 2022–2026 USAID Agency Learning Agenda can support USAID, its partners, and further policy priorities. See the full schedule. The following sessions are open to the public; registration is required:

Countering Corruption Across Sectors: A Spotlight on Global Health
Anti-Corruption Session: Wednesday, April 5 | 10:30 a.m.–12:00 p.m. ET.
Register Here

Climate Change Governance: Existing Evidence and a Learning Agenda Going Forward
Climate Change Session: Wednesday, April 12 | 10:30 a.m.–12:00 p.m. ET.
Register Here

What Works When It Comes to Building Resilience to Shocks in Fragile and Conflict-Affected Places?
Resilience To Shocks Session: Wednesday, April 19 | 9:00–9:50 a.m. ET.
Register Here

Ask the Experts: Local Research Partnerships for Sustainable Development
Partnering For Sustainability Session: Wednesday, April 26 | 10:30 a.m.–12:00 p.m. ET.
Register Here

Closing Plenary: Evidence Architecture: How has two decades of evidence accumulation transformed development?
Agency Learning and Evidence Month Closing Session: Thursday, April 27 | 10:30 a.m.–12:00 p.m. ET.
Register Here

Check Out DIV's Portfolio!

To learn more about DIV’s portfolio, and get the latest news from DIV and its grantees, visit divportal.usaid.gov.

DIV is accepting applications! Please visit usaid.gov/div to learn more and apply.