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Identity Rights: A Structural Void in Inclusive Growth

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Abstract

This paper investigates a structural void that, especially in the context of poor or developing nations, prevents economic growth from being more inclusive and benefiting wider sections of society. The authors initially examine the imperative for inclusive growth, one encompassing a focus on poverty and development. Utilizing social choice theory, and a capability deprivation perspective, we observe that the poor experience deprivations due to a deficiency in their personal autonomy. This in turn is deeply interwoven with the concept of identity. Legally recognizing the poor as individuals, and providing them with proof of their identity, will empower them and facilitate inclusive growth and poverty alleviation. These conceptual arguments are illustrated with the description of a biometric-linked developmental initiative that is providing proof of identity to 1.2 billion residents of India. By establishing a robust identity management system, the project aims to ensure more inclusive growth and efficiently target welfare programs. The authors further investigate how the establishment of identity rights facilitates financial inclusion, property ownership, and necessity-driven entrepreneurial action. Biometric identification on this scale is, however, fraught with dangers to civil liberties and has other serious ethical consequences. In the last section, issues around privacy and security are debated while highlighting the need for external review and independent monitoring to define the project’s boundaries and usages.

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Notes

  1. Ravallion and Datt (2002) maintain that economic growth alone is not sufficient and factors like urban rural divide, asset distribution, access to credit, etc. also have roles to play.

  2. The ICCPR was formally adopted by the General Assembly in 1966.

  3. Nigeria estimates to be losing $175 million every year due to similar leakage (Reuters 2011).

  4. India, in 2013, had 29 states and 7 union territories often governed by a range of political parties with ideology ranging from the extreme left to the moderate right.

  5. India operates under a federal structure with the center and states run by governments who are often of different political orientation.

  6. A study by the National Institute of Public Finance and Polity (NIPFP) estimated that government savings by 2020 could be on the order of $18.4 billion. This takes into account costs of the Aadhaar scheme and assumes leakages of 7–12 %, at a conversion rate of $1 for Rs. 60 (NIPFP).

  7. As of September 15, 2014, 674 million Aadhaar cards had been issued (UIDAI).

  8. Figures vary but overall about twenty percent of Indians have bank accounts (CLSA 2010).

  9. Arising out of extensive nationwide panel data, the GEM survey, being carried out over the past 15 years, covers 74 % of the world’s population and 87 % of GDP (GEM).

  10. The total cost of Aadhaar has been estimated as $3 billion, which is about $2.50 per individual (at a conversion of $1 for Rs. 60).

  11. Andhra Pradesh has since been divided into two independent states—Telangana and residual Andhra Pradesh.

  12. The randomized design is considered the gold standard in impact evaluation and vastly superior to the traditional non-experimental design that uses a pre–post (before and after outcomes) and a simple difference methodology (carded and uncarded areas). See Mukhopadhyay et al. (2013) for a detailed description.

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  1. Fairfield University, 1073 North Benson Road, Fairfield, CT, 06824-5195, USA

    Mukesh Sud

  2. David W. Wilson Chair in Business Ethics, University of Northern Iowa, 241 Curris Business Building, Cedar Falls, IA, 50614-0125, USA

    Craig V. VanSandt

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  1. Mukesh Sud
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Sud, M., VanSandt, C.V. Identity Rights: A Structural Void in Inclusive Growth. J Bus Ethics 132, 589–601 (2015). https://doi.org/10.1007/s10551-014-2359-5

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