The promise of direct cash transfers in lieu of subsidies is a significant shift in a welfare regime that has been viewed as both corrupt and inefficient. To fully appreciate the likely political significance of Aadhar being linked to UPA’s flagship welfare schemes, one needs to pay attention to what has been envisaged, away from the media glare on high profile corruption and the UPA’s all-round incompetence.
The UIADI in February of 2012 put out a white paper on “Aadhar enabled Service Delivery”. The white paper is a 40 odd pages long document. While explaining how it intends to make the UID the foundation for a whole host of public transactions, the white paper gets specific on welfare programs, financial inclusion, subsidy management with a particular reference to LPG, Telecom and more. While the white paper is pretty elementary in its description on how the Government intends to use Aadhar, it practically lays out a political roadmap for how the UPA can extricate itself from the political mess it finds itself in by shifting the public discourse from negativity of corruption and incompetence to the promise of hard cash.
The Congress might very well succeed in effecting such a shift given that the anger over corruption is largely an urban middle class phenomenon. It would take much more than angry rhetoric to counter the Congress’ clever attempt at using Aadhar and the promise of “direct cash” to script its comeback ahead of the 2014 general elections. The Congress, to its advantage, also has the Nandan Nilekani wild card to play given his relatively low profile heads down tenure that has focused on execution and on laying the foundation for the most potent political weapon for the Nehru-Gandhis.
“Cash-based payments to Aadhar linked accounts” seems to be the new political mantra for the UPA’s revival ahead of what appears to be a tough electoral path over the next 2 years. The UIDAI vision document on “Aadhar for service delivery” is not short on imagining all kinds of technology solutions to make the promise of hard cash happen. From a home grown Payments Bridge to Micro-ATMs for funds withdrawal, the success of this belated attempt by the UPA to change the discourse depends on flawlessly executing on all of these technology systems.
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