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ICT and Social Protection

Asian Development Bank


March 2016
Dr. John Ure
Director, TRPC Ltd (Singapore)
Associate Professor and Director of the TRP
Social Science Research Centre
University of Hong Kong
www.trpc.biz
Disclaimer: The views expressed in this paper/presentation are the views of the author and do not necessarily reflect
the views or policies of the Asian Development Bank (ADB), or its Board of Governors, or the governments they
represent. ADB Does not guarantee the accuracy of the data included in the presentation and accepts no responsibility
for any consequence of their use. Terminology used may not necessarily be consistent with ADB official terms.

Agenda
Focus social insurance, social assurance and
labour markets
ICTs nature of their adoption/applications and
how to classify them = taxonomy
ICT applications how are ICTs being adopted
and with what results, databases, costs and
benefits?
Role of ID different approaches
Lessons who is doing what and why?
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ICTs and social protection


A simple key point: national policies,
demographics and finances are the key
drivers ICTs are ways to administer,
monitor and evaluate social protection
projects and programmes
o But ICTs (online, social media, etc.)
empower citizens by opening up
information and social engagement which
can influence policies and resources
devoted to social protection
Very little systematic international
research: still early days
Most ICT adoption up-to-date has a single service focus: but
integration of databases to support them is growing, increases
efficiency, reduces duplications, etc.
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Terminology and Taxonomy


Different ways to Identify classes of ICTs, usages and
impacts: typically some combination of
1. Technical
3. Sustained
5. Radical

2. Incremental
4. Disruptive
6. Transformative

Technical/incremental: usually refers to ICTs that automate or


replace manual routines/paper work with digital technologies
Sustained: usually refers to the adoption of ICTs that bring about
long-term organizational/administrative improvements in efficiency,
accuracy, targeting, etc.
Disruptive : usually refers to a fundamental restructuring in the way
projects and programmes are organized, a shift of ownership, etc.
Radical: beyond disruptive? a shift in stakeholder influence?
Transformative: totally radical? a wholesale change in approach? 4

Still early days for comprehensive ICT adoption


ICTs have been around for decades: but universal industry
standards have taken time to evolve and to be adopted, holding
back
o Full interconnectivity of networks
o Full interoperability over networks of apps
Backend digital technologies evolving quickly: systems
architectures need to evolve incrementally in a modular way to
ensure
o Different parts of IT systems from different vendors need to
communicate with each and share data, programmes and apps
o Upgrading is a relatively easy and less costly process
Frontend user technologies evolving quickly: smart devices,
Internet-of-Things (IoT),etc., are opening up new opportunities for
radical technology adoption
Service-Oriented Architecture (SOA) embraces both ends

Therefore still early days for research studies


The BIG picture: social protection as development
policy (preventing poverty) vs. social protection as
instrumental for poverty relief (addressing poverty)
o ITC4D is about promoting economic growth and social inclusion
= policy driven/vision oriented/goals to be achieved
o ICT4SP is more about efficient streamlining of registrations,
assessments and deliverables = needs driven/output
oriented/targets measured

Most detailed research by international institutions:


World Bank, ADB, European Commission, ISSA, etc.
o But many over-lapping agencies concerned with social
protection: egs UNDP, OCHA, UNICEF, ESCAP, ILO, WHO

And still very early days for the complete vision


Fully-integrated back, middle and front-end systems:
embracing databases, Big Data analytics, ERM, MIS,
CRM, etc. all systems digital to give holistic overview.
Cross-cutting departments within an agency
Cross-cutting government agencies
Cross-cutting NGO and private sector partners
Integrating pro-active engagement with beneficiaries
Integrating self-help by recipients (use of smart devices, etc.)
Note: ICTs free up staff to focus on services

Cloud services: SaaS, PaaS, IaaS. XaaS to provide


ubiquitous access; with different rights of access
But!... Is sharing of data allowed between agencies
without permissions? How secure are the systems?
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An ongoing European Community study is one


of the most comprehensive
An EC-JRC Technical Report (2015) study(1) = the first
steps towards a comprehensive review across the EU of
ICTs in social protection (SP) programmes
o the first exercise of its kind ever conducted by the EC directly
o The paper is the first draft of an ongoing in-depth study
(1)

http://is.jrc.ec.europa.eu/pages/EAP/documents/20150206_IESI_D121_DRAFT_V20_JRC-IPTS_DEF.pdf

Methodology: the choose 50 from an inventory of 100


integrated approaches to SP project initiatives according
the criteria of:
o Policy relevance
o ICT-enabled innovation
o Evidence of outcomes
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Summary of findings of the EC study


Main focus of the initiatives = promoting efficiency and cost savings
via (i) cross-sector collaboration/integration, (ii) innovation in the
delivery of services to beneficiaries
Most initiatives address mainly one policy or problem area of
the target group within an individual social service
But many initiatives aim to transform how individuals interface
with social service providers through the design of integrated
approaches electronic user records, the use of data analytics
and interoperable technologies that enable the at-risk
beneficiaries and a better understanding of service use.

The one-stop shop model of integrated service delivery is


emerging as a trend
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Summary of EU initiatives
Initiatives
72%

Focus and character


Labour markets/helping young people
integrate into society
Help individuals throughout their lives
Modernising SP systems
Show an elevated integration of
services

46%
34%
Most

51%
43%

Organizational/sustained
Disruptive/radical/transformative
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EU findings: the integration of services improves


outcomes by
Operational/Organizational
Enhances efficiency by
reducing costs
Increases capacity and
value for money
Improves strategic
planning and system
integrity
Reduces the demand for
emergency services.

Beneficiaries
Provides simplified
access
Provides holistic and
customised support
Faster response times
Improved user
experience

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Some key benefits of database integration


1. Informed policy-making;
generate reports
2. Coherent and consistent
policy making across
government
3. Eradicates duplication and
reduces fraud
4. Provides each agency with a
holistic view of every
recipient/beneficiary
5. Speeds up search and
processing, does away with
paper-work = error reduction

6. Enables use of analytics


software for estimations,
forecasts, calculations, etc.
7. Potential ubiquitous access
through secure networks and
Govt/ hybrid or encrypted public
clouds
8. Can be made interoperable
with agency mid-stream SW
programmes
9. Can give partitioned access
to recipients
10. Can promote self-service by
recipients/ beneficiaries
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Some key costs of database integration


1. Capex set-up costs,
maintenance, upgrades and
costs of opex
2. Data collection, cleaning,
formatting, especially from
paper-based or legacy IT
systems
3. Cross-government agency
adoption, installation, budgets
4. Staff IT skills, training costs,
resource redeployments
5. Legality of data sharing,
privacy legislation, etc.

6. Security issues, firewalls,


detection systems, etc.
7. Costs of fibre networks
8. Costs of alignment of agency
sub-systems for inter-operability
9. Costs of designing and
developing new user-friendly
interfaces for fixed and wireless
devices
10. Costs of outreach facilities
such as e-Kiosks, mobile
networks, WiFi hotspots, telecentres, etc.
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Database Info

Databases and their integration lie at the


heart of ICT4SP
For transactions
For operational analytics
To link with frontend systems
As the central item of cost

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Sequence of data ingest to data warehouse


Data Ingest
Extract, Transform,
Load
Data Resource
Management System
Multiple Servers
(local or online)
Enterprise Data
Warehouse
Stage 2

Stage 3

Data input manually or electronically from other device

ETL for Standardization standard formatting, spelling, numbering,


sequencing of data record, etc., prior to loading it into a database
DRMS allocates the data to storage according to pre-set algorithms,
periodically defragmenting the storage to maximize the space
available for new data ingests
Local database storage of data in data marts which may be in many
different geographical locations spread across the country
EWD Matching software spots different entries that appear rather
similar, such as 100% the same, 75%, 60%, etc., for further
inspection
EWD Relational persons A and B may have common
characteristics, e.g. live same house, are married to each other, one
is the child of the other, etc
Transactional checks Big Data stored over 10 or 15 years or more
can be checked for trends, multiple UIDs, systematic financial
leakages, etc
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Database Basics
For non-specialists involved in the budgeting and policy decisions

Structured/Unstructured Data :
Structured - For operational-analytical purposes, either
relational databases or programmes that can manage to
establish relationships across unstructured data.
Unstructured - For transactional purposes

Structured Query Language :


SQL originated with IBM which later became part of Oracle
products. An
open-source standard programming language for
relational databases.

Hypertext Preprocessor - PHP :


widely used programming language for websites, free to
download and works with most operating systems
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Database Basics
Family of SQL Databases

SQL

MySQL

NoSQL

designed for
large
relational
operational
analytics

designed
for use in
webbased
applicatio
ns

NewSQL

does not use


SQL, used for
non-relational
databases that
is not organized
in a tabular
structure

SQL-based
relational
databases but
able to handle
data from nonrelational
databases such
as NoSQL

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Database Basics
Open Source software:
Costs reduction for open source software and off-the-shelf
(commodity) hardware. Additional customisation of software
is usually required for enterprise and government purposes.

Proprietary software:
more expensive, but often come with many services. Care
needs to be taken that the programmes and applications are
inter-operable and compatible with other parts of the ICT
system from different vendors

Single/distributed:
data can be housed within a single database or distributed
across many in different locations. A secure high-speed
(broadband) network is required to link them, and a distributed
processing framework is required to use them
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Database Basics
Scale/scope:
the scale of the data to be handled by social protection
programmes will depend upon population size and the scope
of the programmes involved.
a) medium or large in quantity
b) relational by design
c) distributed across different databases
A central master database is desirable against which local
databases can be updated and cross-checked for the validity
of their entries

Cleansed/standardized:
data needs to be a cleansed and standardized before it can
be centralized.
Problems arise during ingest process, consolidating all the
data into one central national reference database
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Database Basics
Hadoop:
An open source

software
developed by the
Apache Software
Foundation using
the Hadoop
Distributed File
System (HDFS)
which enables the
resource
management of
data in many
different formats
and from many
different sources

Hadoop 2:
uses a resource management
operating platform called YARN (Yet
Another Resource Negotiator) that
allows a multitude of programmes to
run on top of Hadoop, including SQL
(SQL-on-Hadoop).
can aggregate structured/unstructured
and single/distributed data and
cleanse/standardize it in the process

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Database Basics
Power and resource management:
Powerful tools that speed the data processing and analytics, such
as Oracle Database and recent iterations of IBMs DB2 family of
database products which use the BLU (Big data, Lightening fast,
Ultra easy) enhancement

Database in the cloud:


a private cloud computing network houses the data warehouse on
servers that are accessed over an Intranet
This might consist of a mix of
(i) offline office-based servers
(ii) online servers connected terrestrially by optical fibre cables
(iii) a data warehouse accessed through a government-owned and
managed Intranet cloud
(iv) part of that data warehouse containing public information
becoming accessible in the public cloud over the Internet
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Ballpark costs of databases and their environment


Ballpark costs
Typical environment

System requirements

(after discounts
on list prices)

The production or EDW system

Database system using SQL

USD400k upwards

Redundancy/disaster management
recovery

Duplicate of the EDW that must be in a


secure and non-contiguous location and
well connected by infrastructure

USD400k upwards

Test system for any newly installed


hardware or software

All additional hardware and software needs


to be fully tested for malware and software
glitches

USD100k upwards

Development environment to
customise the hardware and
software and applications by a
systems integrator

Customised hardware and software needs


to be designed

USD100k upwards

Systems integrator and services


provider to customise the database
system

Unless systems adaptation can be handled


entirely in-house, a specialist vendor is
required

USD500k upwards

Entire system

Needs to be scaled up according to size of


enterprise or organizations

USD1.5 million
upwards
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Integrated databases and the budget


Very difficult to compare costs across countries
System components and
infrastructure

Costs

Implementation costs

US$02 9 million annually

Data collection costs

US$4-14 per applicant

Development and infrastructure costs

US$1 5 million

Source: Oxford Policy Management Key aspects to consider when setting up an integrated system
for data and information management and international best practice Development Pathways,
Jakarta Workshop, March 2015
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Early examples go way back

Source: Knut Leipold (World Bank) ICT in Social Protection, 2001

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World Bank summary of costs

Source: Knut Leipold (World Bank) ICT in Social Protection, 2001

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World Bank summary of benefits

Source: Knut Leipold (World Bank) ICT in Social Protection, 2001

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Examples from Africa


Examples abound of ICTs being used to streamline processes and
provide multi-access channels but in the case of projects and field
trails how to scale them up?
ISSA (2015) In Africa, using new technologies to improve the
delivery for social security lists examples from
Algeria
Cameroon
Cte dIvoire

Egypt
Ghana
Mauritania

Mauritius
Morocco
Swaziland

Tanzania
Tunisia
Uganda

Examples: (i) electronic filings of employers contribution to social


insurance in Mauritius reduced staff requirements from 35 to 7; (ii)
enhanced social security payments system in Cte dIvoire cut
transactions costs per insured recipient by 77%; (iii) in Tanzania,
electronic systems allow Parastatal Pensioners services access 24x7
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Examples from Asia and Pacific


ISSA (2012) Asia and the Pacific : Addressing complex needs
through innovative and proactive social security lists examples from

Bhutan
Fiji
India
Jordon

Kiribati
Kuwait
Malaysia
Nepal

New Zealand
Philippines
Saudi Arabia

Singapore
Sri Lanka
Thailand

Some examples:
Collect insurance contributions electronically (Malaysia, Philippines,
Sri Lanka, Thailand)
Hotlines, one-stop shops, help-desks and 24/7 online service availability
(Bhutan, Kuwait, Nepal, Saudi Arabia)
Improve outreach, delivery of services with online/SMS and home visits
(Jordon, Kiribati, New Zealand)
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Example from Brazil


Brazil: the Directorate of the National Social Security (DIRAT/INSS)
has introduced a planning process to mainstream the streamlining of
SP. This includes
INSS introduced a Service by Appointment Program using toll-free
numbers to a national call centre, which includes enquires advice =
reduce physical queuing
Electronic records replaced paper allowing front-end staff to check
payments due to beneficiaries = the benefits granting process can be
carried out in 30 minutes in contrast to weeks or months required
in the recent past (EJISDC 2011, ICT-driven public service
transformation of social security systems )
Two biggest banks linked to the social insurance electronic database to
enable ATM-SP withdrawals

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Example from Brazil


Brazil: mainstreaming began 2006 . average time in granting
benefits (Baroni and Montagner, 2009)

Benefits

2007

2009

Retirement

69 days

17 days

Widows

21 days

12 days

Maternity leave

41 days

29 days

Cross-border data transfers: another important feature is integration with


the social security systems of neighbouring MERCORSUR countries under
the International Agreement System in Social Security (SIACI) since
2008 to replace paper information exchange = system of digital
certificates to ensure security and confidentiality
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Example from Belgium


Crossroads Bank for Social Security - coordinates service
finances for e-Govt across Belgiums social sector
(https://www.ksz-bcss.fgov.be/binaries/documentation/en/cbss_2014_def_web.pdf)
Examples of savings
Combines electronic data collection, contributions and payments
from public and private sectors
Rationalization of the information exchange process between
employers and the social sector implies annual admin annual
savings of around 1.7 billion (about US$1.9 billion) for
employers
Mandatory declarations by foreign employees and self-employed
(500,000 annually) via integrated electronic deliver service =
process time down from 7 days to 5 minutes
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ADB ICT-related projects


Social protection comes within Public Sector Management (18%)

Source: http://www.adb.org/sectors/ict/main
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ADB Monitoring and Evaluation


ADB (2013) An Evaluation of the Electronic Pension Payment System in Tajikistan

In 2012 an electronics pensions payments system in 15 of 68


districts introduced using plastic cards issued by the Amonatbank
for use at POS/ATM terminals
Typical M&E problem = lack of hard data on costs and benefits
In the absence of quantitative information and reports on changes in
costs, these interviews were essential for evaluating the qualitative
impacts that the system had on the various parties.
Sample group: 65% used Amonatbank ATMs; 24% still used cashiers;
15% used POS; <1% used alternative ATM/POS
Amonatbank estimates set-up costs at TJS8.1 million (ca $1.7 million)
= ca.50% terminals, 30% plastic cards; fees (1% pension payments)
received = TJS12 million (ca $2.5 million) for 2012.

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ADB Monitoring and Evaluation


ADB (2013) An Evaluation of the Electronic Pension Payment System in Tajikistan

ADB assessment:
Amonatbanks operating costs reduced by eliminating manual
verification, processing and reconciliation of pension payment
documents for 1/3rd of all pensioners

Amonatbanks investments in ATMs and POS can bring in


additional revenues from the banks over 400,000 card holders

The electronic pension payment system has positive effects for


pensioners in terms of convenience and wait times.

Not all pensioners benefitted, especially for some in rural


areas who experienced increased wait and travel times.
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Some obvious constraints in the use of ICTs


Service administration
Poor telecoms/Internet
networks public or Govt.
(unified communications)
broadband networks required
Tamper-proof systems
fraud by ID theft, hacking,
duplication, etc.
Reliable national ID system
biometrics preferred for
verification purposes;
acceptable alternative
documentation to be defined

Service delivery
Poor telecoms /Internet
networks mobile networks
easier and cheaper to build
and to use; other technologies
such as TVWS, WiFi, etc.
Illiteracy among recipients
mobile and web apps that use
symbols can help
Delivery points a local
system of banks, ATMs, POs,
bank agents, NGOs, etc., for
cash and credit transfers
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ICTs and National ID


Asian Development Bank
October 2015
Dr. John Ure
Director, TRPC Ltd (Singapore)
Associate Professor and Director of the TRP
Social Science Research Centre
University of Hong Kong
www.trpc.biz
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ID Overview
National ID systems and how to build and manage them

ID types and technologies


Examples from Pakistan, Columbia, India and Peru

ID classification by ethnicity, caste, religion, etc., can and


has been used for discrimination and cleansing
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Identify: Legal, Registered and National


Civil Registration and Vital Statistics Agenda (CRVS) http://www.globalsummitoncrvs.org/

The critical issue = Legal identity


Without it no contractual arrangements such as property rights,
bank loans and mortgages, etc.
How to assign rights of access to SP programmes without it?
Dependent upon charities and NGOs without it

Registration is essential for legal identify


WB estimates 1.8 billion people unregistered (>1/3 children)

Registration necessary but not sufficient for National ID


Functional ID vs. Foundational ID

National ID is sufficient but not necessary for legal


identity
Example, UK has no National ID but close to 100% legal identity
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National ID

See also Robert Palacios, Social protection delivery systems with a focus in identification World
Bank, 2014

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National Identify Systems


Target #16.9 of the UNs Sustainable Development Goals
Provide legal identity to all, including birth registration, by 2030

#16.9: A legal identity confers human rights, and the achievement of at


least 10 SD goals : A rather mixed bag, but some outcomes lead to others

Social protection, including for the most vulnerable;


Assistance in dealing with shocks and disasters;
Equal rights to economic resources, including property and finance;
Empowerment of women;
Improvements in maternal and child health;
Coverage by vaccines and similar treatments;
Improving energy efficiency and eliminating harmful energy subsidies;
Child protection, including the ending of harmful child labour;
Reducing remittance costs; and
Reducing corruption, fighting crime and terrorism and strengthening and improving
the equity of fiscal policy
World Banks ID4D Working Group established 2014

See http://blogs.worldbank.org/ic4d/sdg-target-focusing-identification-critical-supporting-achievementpost-2015-development-goals
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How to
How to obtain a Unique
National Identifier

1. Registrations necessary but not sufficient, needs


something unique to that person
2. A unique common identifier is the only way to
enable cross-checking of databases

How to achieve
universal coverage

1. National campaigns, local authorities, NGOs and


donors, etc.
2. Unregistered maybe because
Overlooked, lack of capacity, end of the
queue, hidden from view, inaccessible
locations, resistance, etc.
Excluded by policies or prejudices on grounds
of ethnic and social minorities, gender, sexual
orientation, political leanings, etc.
Corruption (e.g., require a bribe) or
incompetence
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How to
How to authenticate,
de-duplicate, monitor
for updates

1. Inspections and check-ups


2. Cross-reference to other agency databases
3. Use of algorithms to identify duplicates and
suspiciously similar registrations or ghost
registrations
4. Identify unclaimed benefits, database records of
the deceased, or those who have migrated,
those who cease to quality, etc.
5. Penalties for fraud, misrepresentation and
especially corruption

How to integrate all SP


system databases

1. Clean-up all data around UNIDs to ensure interoperability


2. Link databases sequentially, one at a time,
testing each time
3. Use systems integrator professionals
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ID card types and technologies


Types

Uses

1. Foundational

1. Typically NID

2. Functional

2. Purpose specific; may be sponsored

3. Offline/online

3. May require additional information, password, etc.

4. Biometric
/smartcards make
ID theft more
difficult

4. Is there a better alternative?


Technology improves, becomes cheaper and mobile
Uses unique features of individuals
Smartcards can be linked to multiple services
Easy database systems management
Difficult but not impossible to synthetically replicate
Raises the costs of data loss through hacking, etc.

5. Standards

1. Only international standard requirement is set by the


International Civil Aviation Authority (ICAO)
2. For cross-border services and data exchange, regional if not
global standards are needed
3. Use global standards for smartcard/ biometrics = lower cost,
easier to maintain, and easier to update
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Source: Alan Gelb and Julia Clark Center for Global Development, Bangalore 201244

Pakistans National Database and Registration Authority


(ICAO HQ, Montreal, Canada, 2012)

Shows development of ID use from identify to access to services

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Source: Pakistan NDRA 2012

46

Source: Pakistan NDRA 2012

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Source: Pakistan NDRA 2012

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Cards and costs: Columbia, Indian and Peru


Columbias SISBEN vulnerability and identification system for social
assistance

Database of > 70% pop = ID data + vulnerability index + software to


index each household in need

Local door-to-door ID survey $4-5 per head

http://www.social-protection.org/gimi/gess/RessourcePDF.action?ressource.ressourceId=51857
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Indias Aadhaar Card


Functional card

Foundational card

RSBY card (Rashtriya


Swasthya Bima Yojana in
Hindi means "National Health
Insurance Programme)
Cashless insurance for the poor
$2-3 per head

Aadhaar card
Linked to new bank accounts for
the poor for direct SP payments
$3-4 per head

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Perus RENIEC Children Identification cycle


2013: UN Public
Service Award by
2012 around 95% of
Perus 10 million
children had an ID

Carlos Reyna Izaguirre Presentation: National ID Card for


Peruvian children: Impact on human rights and development
Costs: standard $10.3; coastal $21.8; mountains $42.1;
Jungle $79.8 (see Palacios, WB 2014)
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Thank You

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