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Friday, December 28, 2012

As bottom of the pyramid begins to shake !!

I KNOW !! There is that silver lining of suspense-thriller effect, which I have achieved in the title of this post itself :-D

Don't worry, this is not a Egyptian travelogue. In fact, this is about my readings, while I am sitting cozily at home, here in India.

And now, a few flashbacks, to facilitate my argument in this post, and to ensure the reader's familiarity with the topic :-)

"Flash One - The Leader Speaks"

I was browsing through the TV channels and suddenly I saw Nandan Nilekani speaking on something in "Hindi". Being an exfoscion, I had to stop and devotedly listen what he was saying. [Ex-foscion = Ex-Infoscion = Ex Infosys Employee]. While I don't recall the exact words now, what he was basically saying is that very soon, the ambitious Unique ID project will start integrating with public utility sector and government-subsidized supplies and with it the real value of Unique ID will be realized.

Some of you might already think, that we know that Unique ID is not accepted by most agencies as our identity proof, which establishes its importance already [:-P], but wait... Wait till I have finished with this write-up before reaching any conclusions.

"Flash Two - Knowing the Common Man"

Just last month, I went on to the Bharat Gas shop near my place and submitted "KYC" documents. The application form, among other details asked for Passport number, Unique ID [Adhaar Card number], Pan Card number, Bank account number and Domestic LPG Gas Consumer Reference number, and the whole exercise is to link all these "numbers" to one another at a central place. This is a small information matrix which is being populated everywhere in India, and once the year 2013 begins, the government subsidies for LPG gas would not be pre-deducted before consumers buy them, but this subsidy will now be deposited in our respective bank accounts, after we have already purchased the gas.

YES, there is still a chaos among politicos over how many cylinders will be at subsidized rate and how many will need full payment, and YES, there is a wide scope for appearance of another babu [govt official], who may control the release of subsidy amounts to individuals,  NOT TO MENTION the fact that the real Below-Poverty-Line folks will struggle to gather all the extra money required, but more about all of this later :-)

"Flash Three - The Pyramid"

Well, pick up a black and white Indian movie or even a color flick like Mr. India, and you will see him - "the classic villain", busy in black-marketeering and Adulteration of food-grains and groceries.
These villains became first publicly known corruption artists. I mean there were also Zameendars [the landlords], but these landlords were more about cruelty than adulteration and corruption.
So, if we think of the lifespan of corruption in India as a pyramid, the bottom of it was made by these beginners - the classic villains engaged in adulteration and black marketeering.
Then came the smugglers, smugglers of gold, of imported watches and what not. With them came the volumes of black money and with growing black money, came in the bhais and the politicos and the babus, all wanting their piece of the pie.
This new layer was built on the earlier base, so, it became the new high of corruption, while the earlier layer of adulteration got lost beneath the glamor of these new layers.

In blunt words, common people got used to getting grains mixed with pebbles, buying lesser-than-quota grocery from the subsidy shops due to "unavailability of sufficient stock", buying premium priced grocery from the same shops when there was an urgency of food, and all of this became an integral part of life. Adulteration and black-marketeering of food was a vice no-more.

With entry of Politicians and babus, the pyramid of corruption reached new heights. First the corrupt resorted to "commissions" for allocating contracts even in national defense deals; then they started getting "percentages" in distribution of things from fodder to houses; then came Harshad Mehta and he taught the corporate ways to all, making them understand how to "fit" 1 crore rupees in a suit-case. To top the corporate favors and lobbying, now comes another flavor of corruption - forget lowly tasks of distribution and approvals, we now have scams for "allocation" - allocation of 2G spectrum, of Coal Blocks, of government-reserved lands, and god knows how many things. This is the latest topping worth billions of rupees in the corruption pyramid of India and this pyramid has left the Egyptian creations way behind, when it comes to the "wonders of the world" effect!!

Anyways, enough with the flashbacks !! Lets begin the blog :-)
[I can only imagine the expression on face of my usual readers :-P]

So, one fine day, I began pondering about this whole Unique ID project, searched for more information on it and came across their website. Here, I came to know that this whole thing is surely not an initiative of any political outfit. It was proposed by the planning commission of India, way back in 2006, and is taking its shape ever since. Nandan is currently one of the leaders for this project.

Well, the project has its limitations as of today, considering the huge population which needs to be accounted for; but trust me. I have seen the effect, that having a single identification at all places can have. In Singapore, my Foreigner Identification Number, My National Library membership number, my Internet connection Subscription number, my Driving License Number, my blood donation card number, my poly-clinic registration number, are all the same. This has a convenience for me, as I don't need to keep a track of too many IDs, and it has a lot more advantages for the government. It can keep a track of what I have been up to, at any time!! If I default on my internet bill, it can also be linked to my Visa and that will make my life difficult for sure. Scary. isn't it? Just kidding :-)
Moreover, there is a certainty while accounting for every individual and that helps a lot while planning future for an entire nation.

Of course, the argument now is that it's possible for Singapore, but making it scalable for Indian population is a tough job. I know it is a tough job. Add to it, the complexities of races and religions and poverty-lines.

If I have to imagine an India with every person having his or her own Unique ID, I would see that the subsidy shop owners have no incentive anymore for adulteration of food, as they will get a premium rate for everything they sell. This also means no stock available for black marketeering. This implementation would shake the very base of India's corruption pyramid. It will bring transparency to the dealings that common man does. Not that It will stop the corruption, but the corrupt will move away from day to day dealings for basic necessities, in to the higher echelons.

If you have recently experienced the difference between dealings at Passport office up until last year, and the dealings at the out-sourced Passport Seva Kendras currently operating, you will know what I mean.

Although, I am not sure how the "Rice at 1 Rupees per KG" schemes and political announcements that spring during election times will work in this scenario :-P

The limitation to this entire shake-the-base-project, as per me, is that the Unique ID is still a "non-mandatory" document for Indian Nationals. i.e. Even if someone is not having a Unique ID, he or she can still get the same benefits as others, by quoting some other documents like the Passport or the Government allocated Ration Card. Keeping a track of so many identities will create chaos in maintenance and that can lead to gradual collapse or denial of the project.
Of course, as long as the central database can keep a track of all such identities, there is no issue at all; but nevertheless, this very non-mandatory nature of the Unique ID card is definitely a big challenge in complete implementation of Unique ID project itself.

Moreover, forget about the people who don't want this Unique ID out of their whims; my fear is Unique ID or no Unique ID, if the subsidized supplies are stopped and people are told to buy everything at premium price upfront and get a pay-back in their bank accounts later, it may create unrest among the real poor, who cannot afford to gather all that money at one go. There would suddenly be a stark difference in lifes-and-styles of the rich and poor and this is not very healthy for development of India as a nation.
I just hope this aspect is well thought of, while implementing various mandatory KYC projects all over the country.

Alright, I guess by now, I have already gloated all the readers with the write-up without really going any-where.

Well, the purpose was never to go anywhere; but sit back at this point in time, watch out the happenings in India around us, participate in the initiatives envisioned for a better nation building and make sure that we take everyone together with us, as we proceed, in unison.

Keep an eye out there people - the bottom of corruption pyramid is gradually shaking!!

Post Open for discussion and comments :-)