AADHAAR India s experiment with the Universal ID

AADHAAR – India’s experiment with the Universal ID Number Anit N. Mukherjee National Institute of Public Finance and Policy (NIPFP), New Delhi Presentation at the Policy Dialogue and South Learning Event on Long Term Social Protection for Inclusive Growth Johannesburg, October 11 -13, 2010

• Proving identity first step towards accessing public services • UID mandate: – Better public service delivery – Financial inclusion – Transparency • Timeline: 18 months from August 2009 • Target: To cover 600 million in 5 years • Focus: The poorest sections of the population

• Public Service Delivery – Both Federal and State governments – Overlapping beneficiary sets – Overlapping programs with same target group • Financial Inclusion – Only 5% of India’s population had bank or post office a/c until 2005, increased to 20% now – Less than 10 percent of India’s villages have a bank or post office within 5 km. – Stringent ‘Know Your Customer’ guidelines for new a/c • Transparency – Fragmented data warehouses (Food, Employment, Health) – The ‘IT Curse’

Ante-natal Period Maternal Health Services; Nutrition; Transport Neo-natal Period Maternal and Child Health Services Janani Suraksha Yojana; NRHM components on ante-natal care Immunization; NRHM components on neonatal care Childhood Pre-school; School; Nutrition Adolescence High school; vocational training; higher education Young Adult Livelihood, food, housing, social and financial services Social Safety Net; Pension; Health Working Age and Family Old Age Integrated Child Development Services; Universal Education; School Feeding Scholarship; Credit subsidy for entrepreneurs NREGA; SHG; PDS; Indira Awaas Yojana (Housing); NRHM; Old-age pension; widow pension Life Cycle approach to public service delivery Supply / Scheme Demand / Need

Federal / State Schemes Poverty Line Identification P g r o c e s s Rich Poor E n g i n e e r i n Benefit

Poverty Line Federal / State Schemes Rich Poor Universal Identification Targeted Easy Benefit Universal + Targeted Difficult

Inclusive potential of UID Power of identity Eases mobility Reach out to marginal groups UID Enhance d access to services Direct benefits to poor 7

Inclusive potential of UID Power of identity Eases mobility Reach out to marginal groups UID Enhance d access to services Direct benefits to poor 8

UID Authority of India will issue numbers, not cards UID Unique number Random number Name Parents Gender Basic demographic data and biometrics Do. B Po. B Address For all Indian residents, voluntary No duplicates due to biometrics Central UID database Standardized identity attributes Profiling attributes Letter with UID # sent Transaction records to confirm enrolment 9

UIDAI will authenticate UIDs online – anywhere, anytime, anyhow Authentication - ‘Are you who you claim to be? ’ 1: 1 check, no ID fraud Only YES/NO response, no details – no invasion of privacy 10

based micropayments for social workers ASHA JSY Beneficiary Health Centre Micro-ATM 1400 to Mother 700 to ASHA

Supply / Scheme Demand / Need Ante-natal Period Maternal Health Services; Nutrition; Transport Neo-natal Period Maternal and Child Health Services Janani Suraksha Yojana; NRHM components on ante-natal care Immunization; NRHM components on neonatal care Adolescence High school; vocational training; higher education Young Adult Livelihood, food, housing, social and financial services Social Safety Net; Pension; Health Working Age and Family Old Age process reengineering, moving from a NREGS type of social protection to a JSY type of Childhood Pre-school; School; Nutrition Possibility of Integrated Child Development Services; Universal Education; School Feeding Scholarship; Credit subsidy for entrepreneurs NREGA; SHG; PDS; Indira Awaas Yojana (Housing); NRHM; conditional cash transfer more in line with Bolsa Familia OR A new hybrid model : rightsbased Old-age pension; widow pension conditional cash transfers

Ranjana Sadashiv Sonwane, 40 F Hitesh Sadashiv Sonwane, 5 M

Thank You!! www. uidai. gov. in