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Thursday, October 14, 2010

Aadhaar – The First Milestone

“Aadhaar” Unique Id (UID) for Indian residents was inaugurated by the Prime Minister of India on September 29 2010 at Nandurbar District of Maharashtra at a function which was attended by a large contingent of political bigwigs including Ms. Sonai Gandhi, Chief Minister of Maharashtra, Mr. Ashok Chavan, his deputy Mr. Chhagan Bhujbal and the UID chief Mr. Nandan Nilekani.

This ceremony sent out two messages. Firstly it demonstrates that we have been able to keep the promise of rolling out of this project within 18 months. Secondly, by commencing this project at Tembhali in Maharashtra State which is a tribal village, it shows our commitment that we intend to give focus to the poorer segment who today suffers the most on account of lack of broadly acceptable identity.

Aadhaar is a new tool which could find multiple applications in a variety of areas. It can help to prevent ghost claimants, repeated claimants and proxy claimants of various benefits offered by governmental and aid agencies which in turn can reduce leakage. It can also help to give direct benefit to deserving candidates instead of carpet bombing of benefits which is often cornered by unscrupulous people.

But, this does not mean it is a panacea for all problems; even for the problem related to targeted social protection measures. It just means that we have a stronger tool which if properly employed can significantly reduce leakage and improve targeted delivery. UIDAI has come out with papers on how the UIDAI can be of help in different fields. Some of these ideas will fructify and some will not. But there is no doubt that such a tool can be truly transformational. The transformation we have seen in financial markets, especially in capital market on account of sensible use of technology to improve efficiencies and reduce fraud have helped us to become one the best settlement infrastructure in the world from one of the worst in the world in less than a decade.

We see in the press, from the so called intelligentsia the concerns on the cost –benefit balance of this initiative and issues of privacy. Sometime it appears to me as issues blowm out of proportion. Aadhaar is not unique in the world. Many other countries have already attempted this exercise. America has been using Social Security Number as a unique id for it residents. What is unique about our Aadhaar is the magnitude of challenge of issuing a unique id to a billion people and using the technology and processes to prevent duplicates or keep it to absolute minimum.

Nobody is claiming that the Aadhaar project can eliminate duplicates to absolute zero. But I have confidence that if properly implemented, technology and processes are available that can keep uniqueness to such high levels that no other methods can match. With such powerful identity verification tool, a large number of agencies providing services to millions of peoples, (banks, ration shops, insurance companies etc, etc) can save enormous cost of identity verification.

Other concern is about privacy. Let us look at this a little more deeply. Aadhaar takes only very few demographic details (name, gender, date of birth, address, parent’s name, etc ) along with biometric details. In a true sense, it need have taken only biometric details of an individual and it could have issued a unique number. But today’s level of technology needs few more fields for exception handling and more importantly the users of this identity has not reached the level of technology sophistication to map each of its clients on the basis of only a number with biometric mapping. Therefore, Aadhaar requires few critical demographic details.

The list of demographic data insisted at the time of issuance of Aadhaar is so general and is even less than the details taken for KYC verifications by most services providers. There is practically nothing in there that can be used for racial profiling or such measures. The UIDAI act is specifically providing for the same.

Aadhaar does not make this information available to anybody even for verification. Its verification service is limited to a “Yes/ No” response to an enquiry of whether a biometrical reading (finger print) taken from a person and the Aadhaar claimed by that person matches with the Aadhaar database. This does not compromise any private data.

Next concern is that once this number is widely prevalent among various service providers, it will be easy to integrate these data to develop total profile of people. If profiling is a concern or to be prevented fighting Aadhaar is not the solution. Today most service providers have so much of personal information like name, date of birth, even cell number which is sufficient to map one person among the multiple data bases with the current level of technology. What Aadhaar prevents is the ability of one person faking multiple identities among multiple service providers. I don’t think this is a right we need to offer to any person or protect.Though it sounds a bit harsh, the opinion expressed by Richard Posner, (Judge and legal expert from USA) has raises an interesting point. “As a social good, I think privacy is greatly overrated because privacy basically means concealment. People conceal things in order to fool other people about them. They want to appear healthier than they are, smarter, more honest and so forth.”

If we are concerned about misuse of profiling we need to establish legal frameworks that will prohibit such actions, we need to have mechanism to protect those who blow the whistle on violations and we need to have rules on the extent to which data can be shared across agencies. There is no point in preventing issuance of UID which comes with a host of other merits. It is barking up the wrong tree. But, it is fashionable to fight the establishment which I think is one of the strengths of a democratic society; with so many people barking at so many trees some may just hit the target!

“When it comes to privacy and accountability, people always demand the former for themselves and the latter for everyone else.” David Brin - American science-fiction writer b.1950

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4 comments:

  1. I think its an excellent initiative, but like all other things, this too, must be executed well and taken to a logical closure, and not dropped midway!!

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  2. Excellent views articulated in the blog addressing the concerns on privacy. It hits hard on the fact that those opposing such initiatives are the ones who are on the wrong side of the right initiative. In the end, the quote by David Brin summarizes it.
    We wish good luck to the Nandan to compete this excellent initiative.

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  3. long back everyone lived in the villages. even today most of india live in the villages. in a village everyone knows almost every thing about everyone.because almost everything including bathing and defecating happens in public view. today we are in a global village where thanks to technology my physical location at any time, what i speak on the cellphone or what i write in my e mails or the sites i visit on the internet and the purchases i make etc etc are all being observed/can be observed. privacy never existed, nor will it exist. so why complain about it?

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  4. Hi,I am happy to know that India too came forward to implement a unique id for its citizen with'Aadhaar'.
    Nice write up and very knowledeable indeed!

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