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a software that uses a distributed ledger to give donors and governments access to records of budgetary spending on schools and hospitals from the point of disbursement to subsequent transactions, such as procurement, contracting and implementation of a given project
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Piloting the use of blockchain technology to record how public funding in developing countries is spent.
TruBudget is a software that uses a distributed ledger to give donors and governments access to records of budgetary spending on schools and hospitals from the point of disbursement to subsequent transactions, such as procurement, contracting and implementation of a given project.
“One of the biggest obstacles to economic development is the mismanagement of public funding. It also jeopardises the effectiveness of financial cooperation on a regular basis,” said Dr Norbert Kloppenburg, member of the executive board of KfW.
The pilot programme has received €1 million from the Federal Ministry for Economic Cooperation and Development (BMZ), the German ministry that oversees KfW. The development bank’s digital department is responsible for developing the underlying software meanwhile, which is expected to be tested again after an initial six-to-eight month trial in Zambia.
Dr Zakotnik said TruBudget could be used to address the loss of billions each year from African economies due to mismanaged tax revenues, though the software would be used primarily to protect public sector investment in development projects.
KfW
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