Biometrics, Payment and Rural Communities.

Periodically over the last few years, I've been hearing from Kris Dev¹ in India; we both like the concept of paperless offices in many ways and we'd like to see people killing less trees through appropriate use of technology. Yesterday, he sent me an email of a success in using biometric technology in rural India. From his email (links added for context):

I am glad to inform you, a pilot project undertaken to track payments made under the National Rural Employment Guarantee Act ([t:NREGA]) programme using bio-metric authentication to workers (male and female) was successfully carried out on Thursday, April 27, 2006, at Jakulla Kutha Palli (JK Palli, a remote hamlet of about 200 families, under the Amaduguru Mandal [Ed: Mandals are the third-level administrative areas of India, below states and districts], about 35 kms from the town of Kadiri, about 95 kms from Ananthapur District Headquarters).

The bio-metric tracking was 100% successful, with no failures, using a stand alone bio-metric device and a 12 volt car battery, as there was no power supply for the whole day in the entire Mandal.

Probably, this is the first time, such a bio-metric tracking of payments under the NREGA has been successfully carried out. The minutes of the meeting of the local committee for payment disbursement
done in JK Palli elaborates the details of bio-metric tracking and payment, after verifying the ID Card issued for the purpose. 50% of the beneficiaries are women...

...The bio-metric authentication, was not without its own attendent problems, as some of the women, came
directly from work, with cement/lime mortar coating in the finger. Some fingers were very rough and a second finger print registration had to be taken. But 100% success rate was achived, out of which, 80%
in the very first attempt and 20% in the second attempt.

Their fingers were rough because of the sort of work that they were doing. There's a story in the work that they are doing, I am sure, but unfortunately I do not have that information. That they are building something seems apparent, and the contrast of that sort of labor with the technology used to disburse payment is an interesting contrast because maybe there shouldn't be such a contrast. Maybe there should be mechanized equipment assisting the people working - maybe there is - but the focus here is on how automating payment can be done; what is lacking is the original way that payments have been done, but it's easy to imagine a paymaster and at least one page of paper per person. The story of the people in these pictures is something that I am missing in a very big way, but it's easy to see that technology powered by a car battery allows them to get paid - probably more easily, more cheaply, and more quickly with less paper.

Streamlining payment is a very interesting first step as well. It demonstrates a focus on getting people who are working their money in a timely manner, which is something that I can appreciate. I imagine that the amount that these people get paid isn't much, but that the money they get is very important to them. Conversely, I can imagine that the cost of administrating these (assumed) small payments is high - perhaps a certain percentage of the amount that they get paid. Reducing the administrative financial load on a system which provides employment can have distinct benefits if the money saved is used in a proper fashion. If one more person for every 100 can gain employment and be paid through such a system, that would be a good use. Or maybe that money saved could be used to get better equipment. I don't know enough about NREGA to speak of it as anything but an academic issue half a world away.

Some Background on NREGA

It's impossible to avoid wondering about NREGA itself. From information forwarded from an UNDP representative, Neera Burra, in New Delhi:

UNDP has signed an agreement with the Government of India to support the operationalisation of the recently enacted National Rural Employment Guarantee Act (NREGA) passed by Parliament in August 2005. This as you all know, is a legislation that guarantees wage employment on public works to any adult who is willing to do unskilled manual work, subject to a limit of 100 days per household per financial year. Failing this, the person will be provided with a daily unemployment allowance (one third to one half of the minimum wage). If employment or compensation is not given, the concerned person has the right to seek judicial intervention to secure his/her rights. This is not a targeted programme but one based on the principle of self-selection.

There are several challenges in implementing the NREGA, but we felt that there is a need to focus on some key priorities. These would include communications, advocacy and social mobilization; social audit to ensure transparency and accountability; participatory planning for preparing need-based shelves of projects; and monitoring and evaluation including MIS for enhancing efficiency and effectiveness. This would require all round capacity building for different implementing agencies and other key stakeholders. Gender equity concerns need to be mainstreamed and we are proposing to the Ministry of Rural Development that they set up a Gender Watch to ensure that gender equity issues highlighted in the Act are not ignored in the implementation process.

This project will support the MoRD in its efforts to operationalize the NREGA. This project will be implemented in phases. The first phase will commence immediately for a period of 12 months and would focus on development of national and sub-national communications strategies, development of capacity building tools to support the state governments and development of modules and prototypes for ICT-based MIS and M&E systems, including social audit and local planning. Consultations will also be held with key resource organizations which could support implementation of NREGA.

The second phase, of 5–year duration, will build upon the insights gained in the first phase and, sustain National efforts initiated towards strengthening management capacities, supervision, monitoring & evaluation, research and capacity building measures.

One third to one half of minimum wage in India for no more than 100 days for people who don't volunteer. I don't know much about this, and can't form an opinion of it based on what the UNDP is doing. That people are volunteering doesn't mean to me that they are happy with the program, but that they really need the money, as scant as it is. Still, the project is better than nothing. It's so difficult to get important human stories from the United Nations and NGOs... they speak a very bureaucratic language, and I prefer to know how the quality of life of people is tangibly improved. That it could be with such a program is, of course, the premise of the program.

Back to the use of biometrics for payment:

Biometrics and The Developing World

Kris goes on in his email:

...The bio-metric tracking can be easily replicated all over India and any where in the developing world, to ensure fool proof payment mechanism. In addition to bio-metric, the photo of the individual is also incorporated.

The payments can be made into a Post Office Account to be held jointly by the family, to avoid cash handling and possible loss /misuse/abuse of cash-in-hand situation.

The above work was made possible, thanks to the encouragement and support received from UNDP - Work and Employment, Decentralization, Gender Communities Group, OWSA, MSSRF, REDS, APPS, CEC (Gopal), Dept.
of Panchayati Raj, GOI, Dept. of Rural Administration, Govt. of AP and Collector, Ananthapur and MDO, Amaduguru Mandal.

The use of biometrics to avoid fraud is important, and I don't see fraud as being only people walking in and demanding payment for work that they didn't do - there's also a potential layer of corruption which can be avoided with such a system. And corruption as well as fraud seem par for the course in many developing nations, unfortunately - not because of the people of the nation itself, but because where bureaucracy makes it possible, the wrong element is usually attracted; those people who would subvert the system for personal gain.

Kris is right, of course, that such systems can help developing nations to leap forward through sensible and practical use of technologies such as this. Anything that makes for a more honest society is a good thing. In time, perhaps, even this system will be subverted - but it's much less likely.

The reality of the developing world isn't just poor people, it's the system that keeps people poor and uneducated. Proper use of technology can avoid this, and over the last few years I have found that Kris Dev seems to be focusing on that - which I support. The trick, of course, is getting the word out that these things do exist, because people who make money by loopholes in bureaucracy do not want people to know about such things.

At the end of the day, all most of us can do is spread the word and give a glimmer of hope. When we get lucky, we can do more.

¹All images used in this post are copyrighted by the NREGA/APREGA program; I am using them with permission. For more information about the images and the use of the technology, feel free to communicate with Kris Dev:

Kris Dev, Co-Founder,
International Transparency and Accountability Network.
Life Line to Community / Society and Life Line to Business
91 (0) 98 408 521 32.
http://TrAcNet.blogspot.com
http://ll2b.blogspot.com