27 Nov, 2010 0000hrs IST [ Vijay Kelkar ]
Since the early part of this decade, our governments have emphasised the problems of poverty and unequal growth as important challenges. Economic policies are built on political foundations, and this focus of our leaders and governments on inclusive growth has been, therefore, a critical first step. With this shift in our developmental priorities, there are now broad-ranging efforts which have the potential to permanently change how we fight poverty and inequality in this country.
I have spoken for some years in favour of a national ID system, and how it can be a powerful means to bring better access for the poor. It can help address the causes that lie at the root of poverty and exclusion, and address the basic challenges surrounding what many of us refer to as the 'last mile'. It is a foundational infrastructure that - like the social security number in the US and the welfare number in Europe - can make both governments and markets function better.
To acknowledge the role that the Aadhaar number can play in our development efforts, we must consider what lies at the root of our challenges today. The poor across the country have much fewer choices than the rest of us due to the scarcities of their environment, and the limitations they face in educational and employment opportunities. As a result, their incomes grow slower, steady work is difficult to find, and they often risk losing what little they have due to sudden calamities in health and environment. To work up the ladder of income and achievement, it is necessary to first get on it, but the poor, the 'left behind', often find it difficult to get their hands on the bottom rung. Our approach must focus on giving the poor the tools to get on the ladder, and access the resources they need to move up and out of poverty.
The unique identification initiative emphasises precisely these kinds of tools. The number brings with it powerful features, and an important one is the unique identification of an individual. In a country where fake and duplicate identities are used across systems to divert benefits en route to the poor, an individual's unique, real-time identification can help do away with the bogus identities that are used to channel funds away from real beneficiaries.
Another great advantage of the Aadhaar number is its universal application, and the opportunity it gives us to do away with multiple, criss-crossing schemes. Chief minister Sheila Dikshit has noted that in Delhi alone, there are 48 programmes for different categories of poor in the city, and defined for different income levels. The Aadhaar number would be applicable across these databases, clearly verifying the person across benefit schemes and services. This gives governments a chance to streamline their social programmes, and target them more effectively to the individual.
The Aadhaar number also enables the poor to fulfil the Know Your Customer (KYC) norms that, today, often limit them from using basic services proof of identity and proof of address requirements that they must fulfil in order to use services such as banking and telecom.
This is an initiative that is particularly valuable to migrants. India is increasingly a highly mobile country. A large proportion of Indians are self-employed, and they move often. Many of these migrants, particularly the poor, find that they descend into anonymity when they move. The identification and address documents the poor depend on - ration cards and land records - are usually local proofs, and lose their value when people cross the village, district or state. As a result, poor migrants find themselves denied services and marginalised once they leave their villages. The Aadhaar number, since it's a portable identification/proof of address that can be regularly updated by the individual and used nationally, is a powerful tool for migrants to access services and benefits.
The Aadhaar feature with perhaps the widest applicability is how it makes the confirmation of service delivery possible. Governments and service providers today have little oversight over the transfer of benefits to the poor or the quality of the final delivery point, where the person receives the service. As a result, people across the supply chain often act as independent agents, who may divert funds en route, deny service at the point of delivery, or demand bribes from the beneficiary.
Aadhaar brings accountability to these actors, and makes the last mile in delivering benefits less opaque. Real-time verification of identity through Aadhaar enables individuals to confirm to service providers and governments instantly whether they have received a particular service, or a benefit.
I venture to say that Aadhaar will enable us to put in place a well functioning social safety net for our citizens by unifying all subsidies into cash-based transfers. For example, Aadhaar offers a better alternative to promote food security for our citizens than many other proposals that are being presently discussed as Aadhaar will help the government to save enormous costs while improving transparency and accountability. In other words Aadhaar-based transfers will pave a way to secure lasting improvement of governance in our country.
The writer is chairman, India Development Foundation .
Since the early part of this decade, our governments have emphasised the problems of poverty and unequal growth as important challenges. Economic policies are built on political foundations, and this focus of our leaders and governments on inclusive growth has been, therefore, a critical first step. With this shift in our developmental priorities, there are now broad-ranging efforts which have the potential to permanently change how we fight poverty and inequality in this country.
I have spoken for some years in favour of a national ID system, and how it can be a powerful means to bring better access for the poor. It can help address the causes that lie at the root of poverty and exclusion, and address the basic challenges surrounding what many of us refer to as the 'last mile'. It is a foundational infrastructure that - like the social security number in the US and the welfare number in Europe - can make both governments and markets function better.
To acknowledge the role that the Aadhaar number can play in our development efforts, we must consider what lies at the root of our challenges today. The poor across the country have much fewer choices than the rest of us due to the scarcities of their environment, and the limitations they face in educational and employment opportunities. As a result, their incomes grow slower, steady work is difficult to find, and they often risk losing what little they have due to sudden calamities in health and environment. To work up the ladder of income and achievement, it is necessary to first get on it, but the poor, the 'left behind', often find it difficult to get their hands on the bottom rung. Our approach must focus on giving the poor the tools to get on the ladder, and access the resources they need to move up and out of poverty.
The unique identification initiative emphasises precisely these kinds of tools. The number brings with it powerful features, and an important one is the unique identification of an individual. In a country where fake and duplicate identities are used across systems to divert benefits en route to the poor, an individual's unique, real-time identification can help do away with the bogus identities that are used to channel funds away from real beneficiaries.
Another great advantage of the Aadhaar number is its universal application, and the opportunity it gives us to do away with multiple, criss-crossing schemes. Chief minister Sheila Dikshit has noted that in Delhi alone, there are 48 programmes for different categories of poor in the city, and defined for different income levels. The Aadhaar number would be applicable across these databases, clearly verifying the person across benefit schemes and services. This gives governments a chance to streamline their social programmes, and target them more effectively to the individual.
The Aadhaar number also enables the poor to fulfil the Know Your Customer (KYC) norms that, today, often limit them from using basic services proof of identity and proof of address requirements that they must fulfil in order to use services such as banking and telecom.
This is an initiative that is particularly valuable to migrants. India is increasingly a highly mobile country. A large proportion of Indians are self-employed, and they move often. Many of these migrants, particularly the poor, find that they descend into anonymity when they move. The identification and address documents the poor depend on - ration cards and land records - are usually local proofs, and lose their value when people cross the village, district or state. As a result, poor migrants find themselves denied services and marginalised once they leave their villages. The Aadhaar number, since it's a portable identification/proof of address that can be regularly updated by the individual and used nationally, is a powerful tool for migrants to access services and benefits.
The Aadhaar feature with perhaps the widest applicability is how it makes the confirmation of service delivery possible. Governments and service providers today have little oversight over the transfer of benefits to the poor or the quality of the final delivery point, where the person receives the service. As a result, people across the supply chain often act as independent agents, who may divert funds en route, deny service at the point of delivery, or demand bribes from the beneficiary.
Aadhaar brings accountability to these actors, and makes the last mile in delivering benefits less opaque. Real-time verification of identity through Aadhaar enables individuals to confirm to service providers and governments instantly whether they have received a particular service, or a benefit.
I venture to say that Aadhaar will enable us to put in place a well functioning social safety net for our citizens by unifying all subsidies into cash-based transfers. For example, Aadhaar offers a better alternative to promote food security for our citizens than many other proposals that are being presently discussed as Aadhaar will help the government to save enormous costs while improving transparency and accountability. In other words Aadhaar-based transfers will pave a way to secure lasting improvement of governance in our country.
The writer is chairman, India Development Foundation .
