Jordan is a country still in recovery from the downturns of the global pandemic. Still, even as the economy reopens and tourism returns, a startling percentage of the nation struggles to establish the basic financial security needed to be reinforced against poverty. Unemployment sits at 22.3%, above pre-pandemic levels and the percentage of the population currently within positions or work or searching rates at only 33%, one of the lowest in the world. Technology and poverty should fit together in the process of identifying and addressing the country’s most destitute. However, one such program to address that ended up causing problems of its own.

Technology and Poverty

Takaful is a World Bank-backed National Aid Fund program designed to identify in-need, low-income families and provide them with financial aid within what its limited budget affords. The algorithm would evaluate different households, assigning eligibility for the program based on a series of 57 undisclosed factors.

These factors aim to determine the appropriate allocation of aid that can be customized to support families with the most pressing needs. Human Rights Watch (HRW), in its assessment of the program, identified it as excessively inflexible in its criteria for support and aid delivery. This rigidity has resulted in the exclusion of essential assistance to particularly vulnerable families that depend on the support to survive.

Consequences of Technology and Poverty

Data provided by households in need and compared against government records from more than 37 agencies reduced the nuance of poverty down to quantitative statistics. However, these statistics failed to convey the full scope of the issues in question and the required support to alleviate them. The rigid nature of the computer systems presented unrealistic roadblocks. There is an inability for households to apply if their expenses were deemed higher than their income within a range of 20%.

Owning a car could be counted against the valuation of poverty,  irrespective of the practical role the vehicle plays in the household’s daily life. HRW’s report on the algorithm running the program even identified gender-based discrimination, disproportionately affecting households led by women. This discrimination manifested in lowering eligibility or cutting such households from the program entirely.

A Cautionary Tale

The intersection of technology and poverty in Jordan, coupled with the emergence of poverty-targeting algorithms, aims to streamline the formidable challenge of addressing poverty. However, the danger lies in the potential neglect of how poverty uniquely affects everyone it touches. Takaful has found its way into 120,000 households since launching in 2019. However, this algorithmic hiccup has undermined the impact this program could have had in establishing economic sustainability on a household-to-household level.

This whole affair has gone some way to highlighting the pitfalls of blanket classifications. It underscores the importance of multidimensional assessments and feedback. This could contribute to reinforcing future initiatives, ensuring that future iterations inside Jordan and any other developing country struggling to balance limited aid amongst a struggling populace retain that all-important human touch.

The Way Forward

The World Bank, using the data discovered in the report, has fortified its stance that human-run institutions should not and could not be replaced by algorithms. HRW has guided this matter, pushing for governmental reforms and the establishment of substantive universal societal protections similar to those championed by the World Bank and the International Labour Organisation (ILO).

– Brandon Murphy
Photo: Wikimedia Commons