‘Aadhaar’ is Reaching India’s Poor, but at What Price?
Since the Unique Identification Authority of India embarked on its unique identification project (UIDAI) in 2010, an estimated 200 million people have voluntarily enrolled. As discussed in a previous blog, the UIDAI aims to administer some 1.2 billion unique identification numbers by the end of this decade. The 12-digit online number, also referred to as Aadhaar (“foundation” in Hindi), is issued upon completion of demographic and biometric information by the enrollees. The number will give millions of Indian residents, previously excluded from the formal economy, the opportunity to access a range of benefits and services, such as banking, mobile, education, and healthcare. The UIDAI specifically aims to extend social and financial services to the poor, remove corrupt practices plaguing existing welfare databases, eliminate duplicate and fake identities, and hold government officials accountable.

It is hard to talk about South Asia without invoking its demographics. The region will contribute nearly 40 percent of the growth in the world’s working age (15-64) population, and 
I recently returned from travel to India and East Africa where I attended a round table on social enterprise with the Government of India and met impact investors focused on Kenya, Tanzania, Rwanda, and Uganda. After listening carefully to entrepreneurs, investors, and government officials, I’m compelled to say something entirely inconsistent with conventional wisdom in the world of impact investing: there is not enough capital to support the pipeline of enterprises focused on solving our most vexing social problems. By social problems, I mean the provision of basic goods and services to the bottom of the economic pyramid where governments and markets often fail.

India has been a beacon to the world on how a thriving and vibrant democracy can transform itself into an economic powerhouse. The metamorphosis that took place in the Indian economy after the reforms of the early 1990s is nothing short of spectacular. The Indian economy was transformed into a dynamo of innovation and diversification. This fundamental transformation unlocked two decades of explosive growth in which poverty rates fell by nearly 20 percent, exports as a share of GDP increased nearly five-fold, and standards of living increased by a factor of almost four. This trajectory received but a glancing blow from the 2008 global financial crisis—this resilience was a testimonial to the benefits of the economic reforms of the previous 15 years.
Cities are often violent places – a social, ethnic and religious tinderbox of people piled up together with competing needs for space, housing or cash. Mostly the tension is contained, but not always - when and why does it spill over into bloody mayhem? That’s the question at the heart of a fascinating research project run by
The results are in! The selection committee has chosen 25 winners in the World Bank’s Imagining Our Future Together art contest for young artists.
Back in the mid-1980s,