India Tries to Connect Poor to Growth

INDIA’S WAY

Scanning 2.4 Billion Eyes, India Tries to Connect Poor to Growth

Ruth Fremson/The New York Times

A migrant farm worker peers into an iris scanner in New Delhi in the first effort to officially record each Indian’s identity as an individual.

By LYDIA POLGREEN
Published: September 1, 2011

KALDARI, India — Ankaji Bhai Gangar, a 49-year-old subsistence farmer, stood in line in this remote village until, for the first time in his life, he squinted into the soft glow of a computer screen.

His name, year of birth and address were recorded. A worker guided Mr. Gangar’s rough fingers to the glowing green surface of a scanner to record his fingerprints. He peered into an iris scanner shaped like binoculars that captured the unique patterns of his eyes.

With that, Mr. Gangar would be assigned a 12-digit number, the first official proof that he exists. He can use the number, along with a thumbprint, to identify himself anywhere in the country. It will allow him to gain access to welfare benefits, open a bank account or get a cellphone far from his home village, something that is still impossible for many people in India.

“Maybe we will get some help,” Mr. Gangar said.

Across this sprawling, chaotic nation, workers are creating what will be the world’s largest biometric database, a mind-bogglingly complex collection of 1.2 billion identities. But even more radical than its size is the scale of its ambition: to reduce the inequality corroding India’s economic rise by digitally linking every one of India’s people to the country’s growth juggernaut.

For decades, India’s sprawling and inefficient bureaucracy has spent billions of dollars to try to drag the poor out of poverty. But much of the money is wasted or simply ends up trapping the poor in villages like Kaldari, in a remote corner of the western state of Maharashtra, dependent on local handouts that they can lose if they leave home.

So now it is trying something different. Using the same powerful technology that transformed the country’s private economy, the Indian government has created a tiny start-up of skilled administrators and programmers to help transform — or circumvent — the crippling bureaucracy that is a legacy of its socialist past.

“What we are creating is as important as a road,” said Nandan M. Nilekani, the billionaire software mogul whom the government has tapped to create India’s identity database. “It is a road that in some sense connects every individual to the state.”

For its proponents, the 12-digit ID is an ingenious solution to a particularly bedeviling problem. Most of India’s poorest citizens are trapped in a system of village-based identity proof that has had the perverse effect of making migration, which is essential to any growing economy, much harder.

The ID project also has the potential to reduce the kind of corruption that has led millions of Indians to take to the streets in mass demonstrations in recent weeks, spurred on by the hunger strike of an anticorruption activist named Anna Hazare. By allowing electronic transmission and verification of many government services, the identity system would make it much harder for corrupt bureaucrats to steal citizens’ benefits. India’s prime minister has frequently cited the new system in response to Mr. Hazare’s demands.

The new number-based system, or foundation, would be used to verify the identity of any Indian anywhere in the country within eight seconds, using inexpensive hand-held devices linked to the mobile phone network.

It would also serve as a shortcut to building real citizenship in a society where identity is almost always mediated through a group — caste, kin and religion. Aadhaar would for the first time identify each Indian as an individual.

The identity project is, in a way, an acknowledgment that India has failed to bring its poor along the path to prosperity. India may be the world’s second-fastest-growing economy, but more than 400 million Indians live in poverty, according to government figures. Nearly half of children younger than 5 are underweight.

India’s expensive public welfare systems are so inefficient that warehouses overflow with rotting grain despite malnutrition rates that rival those of sub-Saharan Africa, and much of it is siphoned off to the private market long before it reaches hungry mouths. The government builds sturdy classrooms but fails to punish well-paid teachers who do not show up for work. These systems fail to connect citizens’ most basic needs with help that is readily available, either through government handouts or the marketplace.

Hari Kumar contributed reporting.

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