Here is what a tech savvy government in the future could look like:
" Estonia
is a tiny country in northeastern Europe, just next to Finland. It has the
territory of the Netherlands, but 13 times less people—its 1.3 million
inhabitants is comparable to Hawaii’s population. What makes this tiny country interesting
in terms of governance is not just that the people can elect their parliament
online or get tax overpayments back within two days of filing their returns. It
is also that this level of service for citizens is not the result of the
government building a few websites. Instead, Estonians started by redesigning
their entire information infrastructure from the ground up with openness,
privacy, security, and ‘future-proofing’
in mind.
The first building block of e-government was telling citizens apart. Estonia uses a simple, unique ID
methodology across all systems, from paper passports to bank records to
government offices and hospitals. For these identified citizens to transact
with each other, Estonia passed the Digital
Signatures Act in 2000. and a national Public Key
Infrastructure (PKI), which binds citizen identities to their
cryptographic keys, and now doesn’t care if any Tiit and Toivo (to use common
Estonian names) sign a contract in electronic form with certificates or plain
ink on paper. A signature is a
signature in the eyes of the law.
Estonian Prime Minister Andrus Ansip
signed an e-services agreement. As a quirky side effect, this foundational
law also forced all decentralized government systems to become digital “by
market demand.” No part of the Estonian government can now turn down a citizen’s
digitally signed document and demand a paper copy instead.
Also to prevent this system from becoming
obsolete in the future, the law did not lock in the technical nuances of
digital signatures. Initially, Estonia put a microchip in the traditional ID cards issued to every citizen for identification
and domestic travel inside the European Union. The chip carried two
certificates: one for legal signatures and the other for authentication when
using a website or service that recognizes the government's identification
system (online banking, for example). Every person over 15 was required to have
an ID card, and there are now over 1.2 million active cards. That’s close to
100-percent penetration of the population.
But now Estonians can get a Mobile ID-enabled
SIM card from their telecommunications operator. Without installing any
additional hardware or software, they can access secure systems and affix their
signatures by simply typing PIN codes on their mobile phone.
Besides the now-daily usage of this
technology for commercial contracts and bank transactions, the most
high-profile use case has been elections. Since becoming
the first country in
the world to allow online voting nationwide in 2005, Estonia has
used the system for both parliamentary and European Parliament elections.
During parliamentary elections in 2011, online voting accounted for 24 percent
of all votes. (Citizens voted from 105 countries in total).
To accelerate innovation, the state
tendered building and securing the digital signature-certificate systems to
private parties, namely a consortium led by local banks and telecoms. And
that's not where the public-private partnerships end: Public and private players
can access the same data-exchange system (dubbed X-Road), enabling truly
integrated e-services.
When
employers report employment taxes every month, their data entries are linked to
people’s tax records . Charitable donations reported by non-profits are
recorded as deductions for the giver in the same fashion. Tax deductions on
mortgages are registered from data interchange with commercial banks. And so
forth. Not only is the income-tax rate in the country a flat 21 percent, but
Estonians get tax overpayments put back on their bank accounts (digitally
transferred, of course) within two days of submitting their forms.
This liquid movement of data between
systems relies on a fundamental principle to protect people’s privacy: Without
question, it is always the citizen who owns his or her data and retains the
right to control access to that data. But there is also a flip-side to the fully
digitized nature of the Republic of Estonia: having the bureaucratic machine of
a country humming in the cloud increases the economic cost of a
potential physical assault on the state. Rather than ceasing to operating in
the event of an invasion, the government could boot up a backup replica of the
digital state and host it in some other friendly European territory. Government
officials would be quickly re-elected, important decisions made, documents issued,
business and property records maintained, births and deaths registered, and
even taxes filed by those citizens who still had access to the Internet.
While the Estonian story is certainly special: the country achieved re-independence after 50 unfortunate years of Soviet
occupation in 1991, having missed much of the technological progress made by
the Western world in the 1960s, ’70s, and ’80s. -'80s, including checkbooks and
mainframe computers. Nevertheless, the country jumped right on the mid-’90s
bandwagon of TCP/IP-enabled web apps. During this social reset, Estonians also
decided to throw their former communist leaders overboard and elect new
leadership, often ministers in their late-20s capable of disruptive thinking.
And this is what United States, along with many
other countries struggling to get the Internet, could learn from
Estonia: the mindset. The willingness to get the key infrastructure right and
continuously re-invent it. Before you build a health-insurance site, you need
to look at what key components must exist for such a service to function
optimally: signatures, transactions, legal frameworks, and the like."
Here is a path forward for India which now has an ID card ( Aadhar), reasonable internet penetration ( 137 million users), 980 million cell phones, 100,000 ATMS in many Banks with computerized records and transactions. What is needs now is an completee information infrastructure that ties all these together.