The Dynamics Between Digitalization and Administrative Burden: The Case of the Public Pension System of Bangladesh

The utilization of digital technologies in the provision of public services has been deemed an effective way to reduce the burdens on service recipients and achieve SDGs (Sustainable Development Goals). However, reforms meant to simplify administration may have the opposite effect if they fail to consider how they impact service recipients. This chapter employs the concept of administrative burden to examine the impact of digitalization on service recipients of Bangladesh’s pension system. By utilizing qualitative methods, such as in-depth interviews, and secondary data, the study argues that digital tools have reduced the burdens on service recipients and helped to achieve SDGs. To a certain extent, digitalization has decreased compliance costs (e.g., fewer visits to the accounts office, less physical labor, and time) and psychological costs (e.g., reduction of interactions with officials and scope of corruption), but it has also increased learning costs (e.g., acquiring new digital skills) and psychological costs (e.g., anxiety associated with having to resume monthly payments after failing to finish the life verification timely, uncertainty regarding the proposed verification app’s use) of the service recipients.