An overhaul required to make Aadhaar citizen-centric

Since its establishment in 2009, there has been much aura and fanfare about the Office of Unique Identity Authority of India (UIDAI).

Headed by IT Czar Nandan Nilekani and popularly known as Aadhaar, citizens are told that there is something in it for everyone. Hence, they must wholeheartedly endorse, support and become stakeholders in the project.

Even before its birth, Aadhaar was touted as a panacea to many of the ills plaguing our country. To the poor and downtrodden, it was a proof of identity. To the well off, it was like the social security number in the United States. To anti-corruption crusaders, it was projected as the best tool to fight corruption. To fiscal conservatives, it claimed to help target subsidies better and save government money. To anti-poverty advocates, it was meant to ensure that benefits reach the poor without leakages. To politicians, it is the ‘magic wand’ that will make growth more inclusive and bring every Indian into the banking system.

Over the last four years, more than fifty five crore Aadhaar cards have been issued and pilot programs have begun to test its ostensible capabilities. But a critical question needs to be asked and answered before further expansion - Is Aadhaar citizen centric? More importantly, is it poor people centric? The resounding answer today is no!

The current design of Unique Identity project is government centric and a bureaucratic nightmare for citizens. Inept service pervades most government departments and procuring benefits through Aadhaar no exception. In its current structure, anyone applying for an Aadhaar card needs to provide an address proof along with a completed form.

Citizens are considered ready for direct cash transfer of government benefits once they have their Aadhaar number linked to either a pre-existing or a newly opened bank account. If a poor man or woman is eligible for five or six different government schemes, he or she has to individually register with each of these schemes or departments with their Aadhaar card to ensure that benefits are transferred to their bank account.

This is akin to entrepreneurs and businessmen running around various government departments to secure approvals to start or expand their business. They are constantly hassled at every step of the way and bribes are demanded by bureaucrats at each level. An Aadhaar card does not assure the poor and downtrodden of this country that they will not be subjected to a similar kind of harassment.

To overcome bureaucratic hurdles, governments implemented a single window clearance process which was an amazing success. A similar approach is needed to disburse entitlements to citizens. Like businessmen, Aam Aadmi expects efficient and effective service delivery from the government and wants to avoid persecution from middlemen and bureaucrats.

Bureaucratic mess

The recent stark failure of LPG subsidy transfer is a glaring example of this bureaucratic mess. UIDAI, Banks and LPG dealers were busy blaming each other while the beneficiaries were left to suffer without any recourse. Mere tinkering with implementation is insufficient and bound to fail. An overhaul is required to make Aadhaar citizen centric and more importantly poor people centric.

For Aadhaar to be successful, office of UIDAI must be converted into a single widow for all welfare benefits. It must create a single form that lists all central, state and local government schemes. Once a form is submitted along with relevant documents, the onus must be on UIDAI office to generate a Unique Identity number, link it to a bank account and procure benefits to citizens.

Such a revamp of the Aadhaar program will provide much needed relief to the aam aadmi from running pillar to post while avoiding harassment and graft. It will also serve as the biggest incentive for citizens to willingly participate allowing the project to surmount major legal hurdles brought on by social activists who have gone to courts opposing its implementation on flimsy grounds.

And by taking a holistic approach, UIDAI can overcome current public resentment, weed out inefficiencies and become an integrated welfare disbursement gateway. Moreover, it will be a boon in the long run when transition of benefits must move to a means tested process to control runaway government expenditure.

An added advantage will be speeding up the process of reforming entitlements. In most states, there are several overlapping central, state and municipal schemes that affect eligibility criteria and befuddle service providers who are increasingly NGO’s and private sector. Guesstimates suggest that there are more than 200 schemes and programs at various levels of government in each state. Listing them in a single form will certainly invite taxpayer backlash which in turn can force government and social activists to rethink and consolidate benefits.

Aadhaar touted as a “Game Changer for the Aam Aadmi” shouldn’t end up as a boondoggle. Its design should be radically altered so that responsibility for all entitlements rests with the UIDAI office.

In a modern technology savvy 21st century India, seamless transfer of
welfare benefits to targeted individuals with minimal bureaucratic involvement is well within the realm of possibilities. Government must make it a reality to
accomplish the goals of Unique Identity project.