Global ID Coverage, Barriers, and Use by the Numbers: Insights from the ID4D-Findex Survey Trusted and inclusive identification (ID) systems can serve as a powerful tool for development, accelerating progress KEY INSIGHTS in number of areas, such as women’s empowerment and • Close to 40% of adults in low-income countries (LICs) do not gender equality, financial inclusion, and health. Moreover, have an ID.1 Coverage gaps in middle-income countries (MICs) “legal identity for all, including birth registration” is are significantly smaller. one of the 169 targets of the Sustainable Development • Women and the poor are less likely to have an ID: in surveyed Goals (SDGs), and ID and civil registration systems LICs, 44% of women do not have an ID (vs. 28% of men) and are increasingly seen as critical for realizing the SDG’s 43% of the poorest 20% do not have an ID (vs. 25% of the principle of ‘leaving no one behind’. richest 20%). Less-educated people, younger adults, people out of the workforce, and those living in rural areas, are also less Yet, many people worldwide are unable to prove their likely to have an ID. identity, and many ID systems lack the features and • Many people without an ID find it too difficult to obtain one. qualities that would enable them to deliver on their In countries with large ID coverage gaps (>20 percent), 1 in 3 promise for development. To better understand the adults without an ID find it “too difficult to apply”; not being nature of the ‘global identification challenge’, the World able to provide supporting documents is also cited by many as Bank’s Identification for Development (ID4D) initiative a challenge. partnered with the Global Findex team to gather survey At the same time, demand for a national ID or similar •  data across 97 countries about ID coverage, barriers foundational credential depends on its perceived usefulness to obtaining one, and their use (e.g. for accessing and the availability of alternative identity documents. government or financial services). This is the first time • People with an ID are more likely to own bank accounts and nationally representative data have been collected for mobile phones, and financial and mobile services are among such a large number of countries, offering unique insights. the most frequently reported uses of one’s ID. METHODOLOGY For this note, we have analyzed survey data from 97 countries The surveys were completed in 2017 and are nationally where respondents were asked: representative. Survey respondents are aged 15 and above; our 1) whether they personally had the country’s national ID analysis was further restricted to those respondents who are above or equivalent foundational identity credential; the mandatory or minimum ID age (in countries with no mandatory 2) for those without the ID, what their reasons were for age) of their country. The data collection methodology is described not having one; in detail on the Global Findex website. Estimates are weighted to be 3) for those with the ID, whether they had used it for representative at the global, regional, and country level. specific purposes. 1 Survey respondents were asked about a specific foundational ID, using local terminology to the extent possible (e.g. ‘Kartu Tanda Penduduk’ in Indonesia or ‘Aadhaar’ in India). Although birth certificates are foundational identity documents, survey responses are limited to credentials issued by national ID systems or equivalent ID systems and held by individuals aged 15 and above. The terms ‘national ID’, ‘ID’, and ‘proof of identity’ are used interchangeably in this note. WHO DOES—AND DOES NOT—HAVE AN ID? gender gaps in ID coverage, several also have legal barriers for women’s access to identity documents. For The ID coverage gap is concentrated in LICs, where more instance, the World Bank’s Women, Business and the Law than 1 in 3 adults do not have an ID (Figure 1).2 From a report shows that in Afghanistan, Benin, and Pakistan, a regional perspective, Sub-Saharan Africa has the largest married woman cannot apply for a national ID in the same coverage gap with close to 30 percent of adults lacking way as a married man. Legal barriers to accessing IDs for an ID. Middle income countries are closer to the goal of women are often the result of prevailing social norms and providing a proof of identity for all adults, with over tend to demonstrate deep rooted assumptions about the three-quarters of surveyed MICs having achieved appropriate role of women in society. For instance, Chad coverage of 90 percent or above. ranks 158th and Niger ranks 151st out of 160 countries on UNDP’s gender inequality index4. Women in LICs are less likely to have proof of identity: on average, 44 percent of women in LICs do not have Regression analysis also shows that in LICs, married an ID, compared to 28 percent of men (Figure 1). Gender men are considerably more likely to have an ID than gaps in middle- and high-income countries tend to be unmarried men, all else equal; for women, however, marital much smaller. A few surveyed countries stand out as status does not change the likelihood of having an ID. having particularly large gender differences in ID coverage: One speculative explanation for this trend is that after in Afghanistan, almost twice as many men as women marriage, men often become the head of household, report having an ID (known locally as a Tazkira). In Chad, taking on more responsibility for accessing services for Niger, Benin, and South Sudan, there is more than a which an ID is often needed, such as mobile and financial 20-percentage point difference in ID ownership between services. Conversely, women who transition from their men and women (Figure 2). parent’s household to their husband’s household may not have a similar shift in responsibilities, leading to a The reasons for the gender gap in ID coverage are relatively constant rate of possessing an ID before and complex and the ID4D-Findex data can only provide some after marriage. clues. Among the surveyed countries with the greatest Figure 1. Share of adults without an ID, by gender and country income group3 2 Based on data from the 18 low income countries that were included in the survey—Afghanistan, Benin, Burkina Faso, Chad, Ethiopia, Guinea, Haiti, Madagascar, Malawi, Mali, Mozambique, Niger, Rwanda, Senegal, South Sudan, Togo, Uganda, and Zimbabwe—weighted to be regionally representative. 3 LMIC = lower-middle income country; UMIC = upper-middle income country  ee: http://hdr.undp.org/en/content/gender-inequality-index-gii 4 S 2 | id4d.worldbank.org Figure 2. Countries with the greatest gender gaps in ID coverage Within countries—and especially in LICs—the poor are significantly by economy. Among surveyed countries, the at a greater risk of getting left behind. There is a clear income gap is greatest in Togo, Lao PDR, Mozambique, and association between being poor and not having an ID and Ethiopia, where there is a greater than a 30 percentage- the ‘income gap’ in ID coverage is greatest in low-income point difference between the top and bottom quintiles of countries. Across LICs, 43 percent of respondents in the the income distribution. Niger, Haiti, and Benin, also all have poorest income quintile do not have an ID, compared to income gaps greater than 20 percentage points. 25 percent in the richest quintile. ‘Income gaps’ also vary Figure 3. Share of adults without an ID, by income quintile GLOBAL ID COVERAGE, BARRIERS, AND USE BY THE NUMBERS: INSIGHTS FROM THE ID4D-FINDEX SURVEY | 3 As shown in Figure 4, these differences in income and All else equal, an adult living in a LIC with primary gender persist even when controlling for other factors. The education or less is nearly 18 percentage points less likely ID4D-Findex data also reveal some additional important to have an ID, compared with adults who have completed individual-level predictors of who has an ID. All else equal, secondary school or above. In addition, a person living in people in LICs are more likely to have an ID when they a rural area in a LIC is approximately 10 percentage points are married, older, and in the workforce,5 and less likely to less likely to have an ID than a person living in urban areas, have an ID when they have attained only a primary level while a person in the bottom of the income distribution is of education, are female, live in a rural area, and are in the about 7 percentage points less likely to have an ID than a bottom 40 percent of the income distribution. person in top of the income distribution. Figure 4. Individual-level predictors of the respondent having an ID (LICs only) WHY DON’T PEOPLE HAVE AN ID? communities often experience the highest costs due to the large distances to the nearest registration office. What explains these coverage gaps? Not having access to an ID may be the result of overall supply constraints as These barriers may be multiplied if applicants need to well as multiple economic, social, and procedural barriers present supporting documents that require additional that affect people at the individual level. For example, 6 fees and visits to government offices. Furthermore, people people often face high direct and indirect costs to in marginalized groups may also be less likely have the obtaining a national ID or other foundational documents. supporting documentation required to obtain national A synthesis of ID4D Diagnostics in 17 African countries IDs, such as birth certificates or certificates of nationality. shows that fees for ID cards can be as high as US$ 8-10, Globally, for example, UNICEF reports that only 56 percent and applicants will often need to spend an additional of children under the age of 5 born to families among US$ 10–25 on travel costs and supporting documentation . 7 the poorest 20 percent in their countries had their births People living in the most remote and marginalized registered, compared to 82 percent of those among the richest 20 percent8. 5  However, as indicated by a small but statistically significant negative coefficient on the age-squared term, the marginal effect of age on the likelihood of having an ID decreases slightly over time. 6 For a more in-depth discussion of different types of barriers, see the ID4D Practitioner’s Guide, available at http://id4d.worldbank.org/guide. 7 h ttp://documents.worldbank.org/curated/en/156111493234231522/The-State-of-identification-systems-in-Africa-a-synthesis-of-country-assessments. 8 h  ttps://data.unicef.org/topic/child-protection/birth-registration/ 4 | id4d.worldbank.org Beyond these barriers, people may also not have a Not having supporting documents—which might include a particular ID because it is not necessary for their daily birth certificate, certificate of nationality, proof of address, lives. For example, some people may see little need for a ID cards of the applicant’s parents, etc.—is also a common national ID if they do not commonly use services or perform barrier to obtaining an ID in many countries. In Lesotho, transactions that would require it. This might be because where under-5 birth registration is less than 50 percent and formal services are not available in their geographic area, an even higher share of adults have no birth certificates, because someone else in the household is interfacing lack of necessary documents was cited by over half of those with service providers on their behalf, and/or because without an ID or a total 16 percent of adults. services are accessible through channels that do not require Although supply-side barriers appear to be more common government-recognized proof of identity. In addition, in LICs, this is not always the case. In Afghanistan, for in some countries, people may have multiple forms of example, 70 percent of people without an ID responded identification, such as passports, driver’s licenses, voter ID that they do not have the ID because they have no need cards, beneficiary IDs for a government program, or student for it, as did 40 percent of those in Ethiopia—in both or employee IDs that satisfy their identification needs. countries, the majority of people without an ID are women. When asked about different reasons why they did not have In a few surveyed countries with low ID coverage, we also an ID, respondents in countries with ID coverage less than see high proportions of people without an ID reporting 80 percent cited ‘supply-side’ barriers more commonly the possession of other identity documents, including in than ‘demand-side’ factors in countries with ID coverage. Gabon (56 percent), Mozambique (55 percent), and Benin However, the precise challenges that people selected vary (49 percent). Without more detailed, country specific by country. In Gabon, for example—where difficulties with information, we cannot, however, accurately assess how well ID card printing and the scarcity of access points have been these alternative identity documents empower their holders, well documented —nearly 70 percent of people without an 9 i.e. to what extent they allow a person to access public ID indicated that this was because the process to apply was services, open a financial account, or obtain a SIM card. too difficult (Figure 5). Figure 5. Reasons for not having an ID, cited by adults without one 9  ee, for example, http://www.gaboneco.com/carte-nationale-d-identite-une-piece-d-etat-civil-devenue-rarissime.html and http://www.gabonactu.com/ S gouvernement-envisage-detablir-cartes-nationales-didentite-cedoc/. GLOBAL ID COVERAGE, BARRIERS, AND USE BY THE NUMBERS: INSIGHTS FROM THE ID4D-FINDEX SURVEY | 5 HOW DO IDS FACILITATE ACCESS TO SERVICES? to minimize fraud and leakages and improve targeting. The ID4D-Findex data provide insights on the association From a development perspective, access to government- between having an ID and having a bank account or a recognized identity credentials matters because mobile phone. In addition, respondents who reported exercising one’s rights and accessing basic services and having an ID were asked whether they had ever used it to economic opportunities often require official proof of (a) apply for a government service, (b) to receive financial identity. In turn, unique and verifiable IDs can facilitate support from the government, (c) to use financial services, more effective delivery of services and payments, helping and/or to (d) apply for a SIM card or mobile phone service. Figure 6. ID ownership and having a financial account and a mobile phone The ID4D-Findex data show that people with IDs are more While having a national ID may not always be necessary likely to have a financial account and own a mobile phone or sufficient to open a financial account, not having than those without. In LICs, an estimated 65 percent of one will often present a severe constraint to accessing people with IDs have a mobile phone, compared with only financial services. As shown in Figure 7, 33 percent 40 percent of those without an ID (Figure 6). Similarly, 45 of unbanked people in LICs without an ID cited “lack percent of people with an ID have an account at a financial of documents” as a reason for not having an account; institution in LICs, compared with only 19 percent of those compared with only 17 percent of those with an ID. At without an ID. the same time, an official ID may only be part of the documentation required to open an account; in many While we cannot establish a causal relationship with economies, financial institutions also require proof of the Findex data—i.e., that having and ID directly led to address, proof of employment, or proof of income. account or mobile ownership—regression analysis show Furthermore, other factors—such as a lack of money, being that the positive relationship between having an ID and too far away from a financial service provider, and finding using financial and mobile services persists even after the account opening process too expensive—are cited controlling for gender, age, location, education level, as frequently or more often than missing documentation income, employment status, marital status, and the as core barriers to account opening. Therefore, although country in which a person is living—all factors that are having access to official proof of identity is vital for likely to be correlated both with having an ID and having ensuring financial inclusion because it eliminates a hard access to services. constraint to access, many other barriers remain and must be addressed holistically. 6 | id4d.worldbank.org Figure 7. ID ownership and barriers to account opening When asked directly whether they had used their IDs for services (Figure 8). The higher reported use of IDs for specific purposes, respondents confirmed the frequent use mobile services fits with the fact that mobile services are of these credentials to access financial services and mobile more available in most developing countries, and around 80 phones. Globally, approximately 57 percent of people with percent of the surveyed population owns a mobile phone. an ID have used it to apply for a SIM card or mobile phone Furthermore, SIM card registration is mandatory in all LICs service, and 45 percent have used it to access financial included in the main ID4D-Findex questions.10 Figure 8. Self-reported use of ID for private- and public services 10 See https://www.gsma.com/mobilefordevelopment/wp-content/uploads/2019/02/ProofOfID_R_WebSpreads.pdf GLOBAL ID COVERAGE, BARRIERS, AND USE BY THE NUMBERS: INSIGHTS FROM THE ID4D-FINDEX SURVEY | 7 In addition to accessing financial services and mobile a high share of ID holders who report using their credential phones, one third of people in LICs say they have used to access government services, including 76 percent in the ID to receive financial support from the government, Morocco, 61 percent in Rwanda, and 60 percent in Namibia. and 16 percent say that have used it to apply for People frequently report using their IDs to receive financial government services. These rates are higher in LMICs, benefits in a handful of South and East Asian countries that where approximately 39 percent of people reported using invest heavily in social protection, including Thailand (48 the ID to receive financial support and 27 percent reported percent) and India (37 percent). using it to access services. The lower reported use of IDs to These results also point to a number of areas for access government services in LICs—compared with LMICs future research. Ultimately, ensuring universal access to and HICs—Is likely due to a combination of more limited identification is only the first step; in order for ID systems availability of public services and greater use of informal to be catalytic for individual welfare and development they identification mechanisms when applying for one. must be trusted, empowering, and applied appropriately. Economies with the highest share of people who report Additional work is therefore needed to better measure using their IDs for government services and support tend how—and when—people use their IDs, the barriers they do to be ones where the public sector is engaged in extensive (and do not) face if they lack a particular ID, and the impact service provision. Eastern European and Central Asian of making an ID mandatory for services that people used countries included in the ID4D-Findex survey stand out in to access informally. In addition, more detailed quantitative this regard. For example, 89 percent of people with an ID and qualitative work is needed to better understand how in Belarus, 79 percent in Kazakhstan and about 70 percent the quality and type of various ID systems—e.g., digital, in Estonia, Russian Federation, Turkmenistan, and Ukraine biometric, mobile, etc.—affect the accessibility and cite using their ID to access government services. On the convenience of different services and benefits. African continent, a handful of surveyed countries also have About ID4D The World Bank Group’s Identification for Development (ID4D) Initiative uses global knowledge and expertise across sectors to help countries realize the transformational potential of digital identification systems to achieve the Sustainable Development Goals. It operates across the World Bank Group with global practices and units working on digital development, social protection, health, financial inclusion, governance, gender, legal, and among others. The mission of ID4D is to enable all people to access services and exercise their rights by increasing the number of people who have an official form of identification. ID4D makes this happen through its three pillars of work: thought leadership and analytics to generate evidence and fill knowledge gaps; global platforms and convening to amplify good practices, collaborate, and raise awareness; and country and regional engagement to provide financial and technical assistance for the implementation of inclusive and responsible digital identification systems that are integrated with civil registration. The work of ID4D is made possible with support from the World Bank Group, Bill & Melinda Gates Foundation, the UK Government, the Australian Government and the Omidyar Network. To find out more about ID4D, visit id4d.worldbank.org. To participate in the conversation on social media, use the hashtag #ID4D.