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Impact of Unique Identification Systems


Affiliations
1 Amity School of Economics, Amity University Uttar Pradesh Sector 125 Noida, 201313, India
 

Objective- To study the role of Aadhaar policy on welfare schemes andto examine the impact of the implementation of Unique Identification (UID) system on Real GDP Per Capita, Shadow Economy and Corruption Perception Index.

Methods- The analysis has been done via secondary data from Transparency International and World Bank’s website. The data covers Real GDP Per Capita, size of the Shadow Economy and Corruption Perception Index (CPI) for India, Malaysia, Brazil, Indonesia, and Ghana. Hypothesis testing method of statistics has been used to analyse the impact of UID system on Real GDP Per capita, size of the shadow economy and CPI. The data has been assessed in two parts; that is before the launch of UID system and after the launch of UID system in each of the countries: India, Malaysia, Brazil, Indonesia and Ghana.

Findings- The Indian government has released data showing that it saved a huge amount in 2016-17 by weeding out nearly one crore fake beneficiaries of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) by using Aadhaar and direct benefit transfer (DBT). ₹8,185 crore was saved from Direct Benefit Transfer of LPG subsidy (PAHAL scheme). Till February 2019, the government was successful in opening approximately 34 crore bank accounts under the Jan Dhan Yojana.

Three out of five countries show a significant change in their size of shadow economy while there is no impact of the implementation of the UID system on CPI and Real GDP Per Capita of any of the countries. 


Keywords

UID, Aadhaar, Hypothesis Testing, CPI, Shadow Economy.
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  • MGNREGS beats PAHAL as top saver for government via DBT. https://economictimes.indiatimes.com/news/economy/finance/mgnregs-beats-pahal-as-top-saver-for-government-viadbt/articleshow/59359878.cms?from=mdr. Date accessed: 29/07/2017.
  • V. Sathe. Managing massive change India’s Aadhaar, the world’s most ambitious ID project. Innovations: Technology, Governance, Globalization. 2014; 9(1-2), 85-111.
  • Around 10 lakh people enrol, update Aadhaar every day: UIDAI. https://economictimes.indiatimes.com/artic leshow/64947581.cms?from=mdr&utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst. Date accessed: 11/07/2018.
  • Aadhaar covers over 89% populations: Alphons. https://timesofindia.indiatimes.com/business/india-business/aadhaar-covers-over-89-population-alphons/articleshow/63202223.cms. Date accessed: 07/03/2018.
  • How does Aadhar compared with other ID systems in the world and how to secure its leaky database https://www.indiatimes.com/technology/news/how-does-aadhaar-compare-with-other-id-systems-in-the-world-how-to-secure-its-leaky-database-276972.html. Date accessed: 19/07/2017.
  • R. Khera. Impact of UID on welfare program. Economic and Political Weekly. 2017; 52(50).
  • Dr.R.Velmurugan, Mrs.D.Lavanya. Problems in public distribution system. Journal of Progressive Research in Social Sciences. 2015; 2395-6283.

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  • Impact of Unique Identification Systems

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Authors

Udita Dhingra
Amity School of Economics, Amity University Uttar Pradesh Sector 125 Noida, 201313, India
Shalini Singh Sharma
Amity School of Economics, Amity University Uttar Pradesh Sector 125 Noida, 201313, India

Abstract


Objective- To study the role of Aadhaar policy on welfare schemes andto examine the impact of the implementation of Unique Identification (UID) system on Real GDP Per Capita, Shadow Economy and Corruption Perception Index.

Methods- The analysis has been done via secondary data from Transparency International and World Bank’s website. The data covers Real GDP Per Capita, size of the Shadow Economy and Corruption Perception Index (CPI) for India, Malaysia, Brazil, Indonesia, and Ghana. Hypothesis testing method of statistics has been used to analyse the impact of UID system on Real GDP Per capita, size of the shadow economy and CPI. The data has been assessed in two parts; that is before the launch of UID system and after the launch of UID system in each of the countries: India, Malaysia, Brazil, Indonesia and Ghana.

Findings- The Indian government has released data showing that it saved a huge amount in 2016-17 by weeding out nearly one crore fake beneficiaries of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) by using Aadhaar and direct benefit transfer (DBT). ₹8,185 crore was saved from Direct Benefit Transfer of LPG subsidy (PAHAL scheme). Till February 2019, the government was successful in opening approximately 34 crore bank accounts under the Jan Dhan Yojana.

Three out of five countries show a significant change in their size of shadow economy while there is no impact of the implementation of the UID system on CPI and Real GDP Per Capita of any of the countries. 


Keywords


UID, Aadhaar, Hypothesis Testing, CPI, Shadow Economy.

References