Nobel prize winner Paul Romer on Western countries ‘failure’ to build a system “as important” as Aadhaar

Renowned economist Paul Romer, a 2018 Nobel Prize recipient, has lauded India’s Aadhaar system as the most significant technological innovation worldwide. Speaking at the NDTV World Summit, he emphasized Aadhaar’s role in revolutionizing government services, particularly direct benefit transfers (DBT).
Romer attributed Aadhaar’s success to the Indian government’s proactive approach in utilizing the technology for public good.Unlike the US, where private sector monopolies have hindered similar initiatives, India’s government-controlled platform has enabled efficient and transparent delivery of benefits to citizens.
Despite facing legal challenges, the Indian government persevered in implementing Aadhaar, demonstrating a commitment to technological progress. Romer contrasted this approach with the more restrictive legal frameworks often found in Western countries.

Why Western countries are not able to replicate India’s ‘Aadhaar success’

“What people in India saw is that they could build a platform of Aadhaar that was controlled by the government and could be used for the benefit of the people, not to generate wealth for just a…small subset of people,” he said.
Romer pointed out that despite many cases in the Supreme Court against the Aadhaar scheme, the government in India pushed this idea forward and did not let the judges hamstring them, and they achieved this remarkable success.
“In the West, we are too hamstrung by the judiciary,” he said.
Looking ahead, Romer highlighted the importance of urban development for India’s economic growth. He emphasized the need for efficient land assembly to create modern cities and capitalize on the potential of urban centers.
Addressing the geopolitical landscape, Romer expressed concern about the growing influence of empires, particularly China and Russia. He urged India to assert its sovereignty and advocate for a world order based on independent nations rather than spheres of influence.