Aggregating and collecting data from cell phones is one of the best ways to ensure resources used to help fight poverty are efficiently being allocated, while gaining insight on what policies work the best.

According to Marcelo Giugale, the World Bank’s Director of Economic Policy and Poverty Reductions Programs for Africa, digital data collection is entirely transforming international development and bringing on, “revenge of the statistician”.

This transformation, he cites, have created two separate but interrelated effects in evaluating development projects.

Primarily, digital data collection allows funding from multilateral institutions, like the World Bank,  to be more effective.

Goals set for monitoring and evaluation (M&E) are quantified to see if the results are reached. Such as: how many children were treated for malaria, or what proportion of women use contraceptives?

This increased accuracy in household surveys can precisely identify who benefits from each dollar the government spends, also known as “benefit incidence analysis,” then structural adjustments can then be made to funnel funds to the appropriate recipient. Giugale elucidates by providing an example:

Most developing countries spend more bankrolling free public universities than building primary schools. But the main beneficiaries of that subsidized college education are the rich (who could pay tuition) not the poor (who could not)…Statistics lets you quantify these aberrations—and argue that the money should be redirected to those who really need it

Secondarily, he observed that surveys conducted on cell phones provide data to assess human capabilities so future policies and projects can be altered to fit the needs of those living in poverty and make outcomes more useful.

By assessing non-cognitive skills—such as reaction time and social interaction—educational programs can be designed to teach behaviors that will increase people’s productivity.

Giugale argues that digital data collection can also measure how personal circumstances affect human opportunity. “We all know that children have no control or responsibility over their gender, skin color, birthplace, or parents’ income,” he contends.

“And yet, those kind of circumstances are sure-shot predictors of a child’s access to vaccination, potable water, kindergarten, the internet and many other platforms without which her probability of success is close to nil.”  Giugale cites the Human Opportunity Index as being a large proponent of this initiative in shaping policy.

The use of cell phones to collect data has broken the once unconventional method of researching people in their communities. These randomized trials are useful in gauging what policies and projects work best, and which are seemingly wasteful.

“As the use of cellular telephony expands among the poor — at flash speed in places like Kenya –the possibility of turning them into data sources becomes real…” he concludes, “How ironic that, in the end, the war against poverty may be won when those who try to help the poor get to literally listen to them.”

In this video, Guigale explains the Human Development Opportunity Index and how it helps reduce poverty: