Possibility of introduction of e-food vouchers in Iraq

15 Jun 2013



On the day of June 12th, this month, top Iraqi government officials have met with experts from UN World Food Program (WFP) in order to discuss the potential introduction of electronic food vouchers for the common Iraqi people, i.e. Iraqi Public Distribution System (PDS).

For this, a two day workshop has been arranged in collaboration between WFP and the High Committee for the Reform of the PDS in Baghdad followed by a meeting chaired by deputy PM and chairman of the High Commission for the Poverty Reduction Strategy, Dr Roz Nuri Shawees with the members of the commission and the High Committee for the Reform of the PDS, headed by the Secretary General for the Council of Ministers Ali Muhsen Al Alak.

Financial payment expert MasterCard will take the initiative to adjoin them. MasterCard is the leading global technology and payments company, which, under a global partnership, is partnering with WFP to strengthen its delivery of “digital food,” in the form of vouchers.

It has been speculated that the use of electronic foods will benefit the overall distribution process within an innovative approach that would increase efficiency in the PDS, which acts as a social safety net for the poor.

Electronic vouchers will also allow the system efficiency as this will allow the people to shop from the local markets. Hence, more fresh foods can be approached by the people, which would overall wipeout the nutrition and public health concerns. Also, this will boost small retailers, means the local economy – as mentioned by the experts.

In comparison with traditional cash transfers, electronic vouchers are more secure and they will act as a flexible tool which can help harmonize the distribution of many types of social welfare. These are not only credits for foods, but also can be considered as means of transfer. Healthcare, education and economy of the country will be benefitted with the introduction of such electronic vouchers.

Commenting on the initiative, WFP representative and country director Edward Kallon said, "The technical workshop and consultative meeting we are holding together with Iraq over the next few days present an excellent opportunity to build upon the policy analysis and recommendations of our jointly published report in December 2012 on Food Security, Living Conditions and Social Transfers in Iraq."

In the report, the vital role of PDS for ensuring food security has been highlighted. This will bring decent living standards in the poor families of the country and people will be aided by the adequate amount of foods.

Deputy Minister of Planning Mahdi M. Al-Alak said, “the government expects the workshop and the subsequent national consultative seminar to pave the way for implementation of a pilot project in specific areas in Iraq to examine the feasibility and benefits of adopting electronic cards to provide citizens with an improved service and a food basket that will help improve food security and contribute to the growth of the national economy.”

He also added that the evaluation of the result of pilot project will give green signal for this project. Through that project it can be judged with certainty that adopting electronic cards within the PDS on a national scale is feasible.

The workshop will also examine the possibility of designing alternative PDS food baskets. This is said to be included with more locally procured items, contributing to improved food security in the country and supporting the Iraqi economy.



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