Digital ID schemes provide opportunities and risks for addressing digital divide

Is identity a fundamental human right? And can digital identity programs preserve its integrity while opening up new paths to prosperity? These questions undergird discussions about digital ID internationally.

Artificial integrity concept centers human benefits in digital identity, AI

A piece published in Forbes looks at identity as a human right and the potential for widening divides between digital identity haves and have-nots. Author Hamilton Mann, a digital humanist who currently works as group vice president of digital marketing and digital transformation for Thales, finds links between digital identity, property rights and poverty in developing nations.

“In countries where a robust identity system is not in place, people often possess potential assets but lack the formal recognition needed to leverage them effectively,” he writes. “They may have houses, but without titles, they cannot use these assets to obtain loans, secure insurance, or invest in their futures. Without clear property rights, neither capital nor credit will venture into these regions, perpetuating a cycle of poverty and instability.”

Whether or not being invisible in the market constitutes a true crisis of personhood is up for debate. But Mann’s economic argument for digital identity as a driver of financial and social inclusion is hard to argue with given the truth of his statement that “clear property records guarantee credit, and proper documentation allows for identification and aid.”

“Tragically,” Mann asserts, “approximately one billion people around the world lack a legal identity, meaning they do not have official documents such as birth certificates, passports, or national IDs that are crucial for accessing essential services and participating fully in society.”

Empowering people with a trusted digital identity, he argues, unlocks the potential for economic development. Once the value of people’s holdings is formalized, avenues for investment open up. “This is where responsible biometric and AI solutions can help address the crucial stakes of the ID ‘Identity Divide’,” Mann says.

Collaborative effort needed to implement equitable digital ID

The effort will require collaboration between the private and public sectors, and Mann says governments should look to establish inclusive biometric identity registration systems and legal frameworks to govern identity systems and mandate the issuance of ID documents at birth. He also notes the importance of local communities participating in design and implementation processes to account for specific rules and customs.

Community leaders can also assist with public education about the benefits of legal identity, while governments and banks can work on financial incentives for registering a legal ID and support structures to usher registrants into the “formal economy.” International development organizations can help, particularly in low-income countries. Regardless of who is involved, monitoring and evaluation mechanisms are a must. “By fostering transparency and accountability, these mechanisms help build trust in the system and ensure that the benefits of legal identity reach everyone, especially the most marginalized.”

Mann’s thinking draws on his concept of artificial integrity, which “emphasizes the development and deployment of AI systems that uphold and reinforce human-centered values, ensuring that AI’s integration into society enhances rather than undermines the human condition.” It promotes  the careful assessment of AI’s societal impact, “particularly how it balances ‘human value added’ and ‘AI value added’, which is among the most delicate and consequential considerations.”

“Only by adopting a holistic approach that combines technological innovation, legal reform, community engagement, education, financial incentives, and international cooperation can we address the identity divide responsibly and effectively,” Mann says.

Legal identity must develop in digital world, says AEPD

Spain’s data protection agency, AEPD, also weighs in on the concept of identity as a right in a blog post from June. Like Mann, it believes “having a legal identity is fundamental to human rights, as it allows individuals to be officially recognised as members of society and to access essential services and protections,” including access to education, employment and healthcare. Identity is guaranteed in Spain under the L.O. for the Protection of Citizen Security.

Today, says the agency, “it is essential to keep in mind that legal identity or status must not only be developed in the analogue or physical world but also in the digital one, where most daily activity occurs.”

AEPD notes the relationship between legal identity and the right to privacy. “The processing of personal data related to legal identity is a critical aspect of upholding the right to privacy: individuals must be able to control their identity and protect it from any misuse (fraud or identity spoofing but also targeting, profiling or surveillance),” it says. Autonomy over identity data is fundamental to preventing identity theft and fraud.

Spanish regulator wary of IDaaS models

As an extension of this principle, AEPD gives a nominal thumbs-down to identity-as-a-service (IDaaS) schemes. “There is a trend to consider identity as a service by creating new identity schemes, in particular application domains,” it says. “These new schemes promise different advantages, but the fact is that, in many cases, citizens lose real control and rights over their own identity.” Putting identity – a legal right – in the hands of a private company is unwise, it says. The risk of breaches and misuse is heightened, and there have been instances – notably, says AEPD, in Kenya – of biometric databases being collected and shared without proper consent, leading to complications for individuals seeking clarity on their ID status.

“If identity is a right, it must be guaranteed for all users, even if they do not have an Internet connection, a last-generation mobile phone, a digital footprint, or the possibility or willingness to undergo a facial recognition process,” says AEPD. When identity is framed as a service, “the user is considered a client or consumer who must adapt to the way in which it is offered, often, by a private third-party – or face the consequences.”

Aadhaar ‘arbitrary exclusions’ impact millions even if percentage is small

AEPD also reserves a shot at India’s Aadhaar system. “This is the world’s largest identity management system,” it says. “However, different implementation and governance flaws are causing arbitrary exclusions, causing dramatic situations such as the impossibility of receiving financial aid or even starvation. Given India’s large population, even a 2 percent exclusion rate (as documented in different reports) affects over 20 million people”.

Ultimately, AEPD aligns with Mann’s project and calls for vigilance in maintaining the integrity of identity, which it says must not become a mechanism for surveillance, manipulation or exclusion. “The ‘identity as a right’ approach should rely on foundational, reusable elements that can be leveraged by individuals across their personal and professional spheres. European legislative initiatives such as eIDAS 2 or the passport and travel documents regulation follow this approach, trying to support citizens for access management, payments, data sharing, or age verification.”

Africa Civil Registration and Vital Statistics Day

August 10 marks Africa’s annual celebration of the link between civil registration, vital statistics and legal identity through digitalization for enhanced inclusion. A release from the United Nations Economic Commission for Africa (UNECA) says Africa Civil Registration and Vital Statistics Day encourages “reflection, collaboration and action towards strengthening civil registration and vital statistics systems across Africa.”

Africa is working to accelerate progress in meeting commitments made under the 2030 Agenda for Sustainable Development to achieve universal legal identity. By strengthening links between digital identity structures, civil registration and vital statistics systems, governments can improve the accuracy of population and demographic data, make service delivery more effective and efficient, prevent fraud and identity theft, and expedite border operations.

“Legal identity is a fundamental human right and is crucial to gain access to other rights and services,” says UNECA. “Linking civil registration and vital statistics and legal identity systems ensures that individuals have official recognition and documentation of their identities, which will enable them to exercise their rights, gain access to social services, participate in economic activities and assert legal claims.”

Article Topics

AEPD  |  CRVS  |  digital ID  |  digital identity  |  legal identity  |  SDG 16.9  |  UNECA