Making sense of society

they wanted from their elected representatives, their responses always focused on local-level outcomes, especially with regard to reform and service delivery. Not one person mentioned anything about legislation. But well-crafted, forward-thinking legislation is essential to promote the kind of long-term inclusive growth that benefits all citizens.

Indians, in particular, should recognize this. India’s activist Supreme Court has used its authority to enforce citizens’ rights to advance consequential environmental and other reforms. Moreover, its public sector has created what many (including me) regard as the world’s best digital financial architecture, comprising a biometric identification system and a “unified payments interface,” administered by the National Payments Corporation of India.

This architecture – accessible to all citizens – enables not only instant payments, but also direct financial transfers from the government to poorer segments of the population in real time with no intermediaries and thus no “leakage.” It also provides for data mobility across multiple entities, from banks to digital wallets. This process is guided by legislation dictating that all data flows require permission from individuals who are the subjects of the data. Once permission is given, all data must flow, by law, directly from their location to their intended destination. This explains why there are no significant monopolies in India based on control over data.

The lesson is that laws and regulatory structures are critical to state activities that produce local-level benefits. If citizens are to push for reforms and interventions that increase efficiency, promote inclusion, and enable entrepreneurship, innovation, and long-term growth, they need to recognize this. The kind of effective civil society Nilekani envisions thus requires civic engagement, empowerment, and education, including an understanding of the rights and responsibilities implied by citizenship.

In a world that is becoming fragmented within and across countries, it is easy to lose hope for social and economic progress. Nilekani does not, and her thoughtful, realistic, and cautiously optimistic blueprint for a healthy society is worthy of attention, reflection, and debate.