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

Rich Poor Federal / State Schemes Poverty Line Identification Benefit

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

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

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

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

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

based micropayments for social workers based micropayments for social workers ASHAHealth CentreJSY Beneficiary 1400 to Mother 700 to ASHA Micro-ATM

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

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

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