Why India’s Big Fix Is a Big Flub

On Wednesday, the Supreme Court began hearings in a long-running collective case challenging the program’s constitutionality. In their opening statement, the petitioners argued that Aadhaar, if fully implemented, would “reduce citizens to servitude,” since not having an Aadhaar number — that “electronic leash” — in effect meant “civil death.”

.. the eastern state of Jharkhand, where only about 7 percent of residents aged 6 to 23 get an adequate diet.

.. To buy subsidized grain in some states, for example, a beneficiary must authenticate her identity by placing the tip of a finger on a hand-held machine. Collecting a readable fingerprint this way requires functioning electricity, an internet connection and operational servers.

.. In large swathes of rural India, such as in Rajasthan, all of this is a steep ask. Yet if any one of these steps fail, applicants are denied food assistance.

.. We discovered that the percentage of households that failed to obtain any grain at all was five times higher in the villages where Aadhaar authentication was compulsory (20 percent) than in those where it was not (4 percent).

.. In theory, biometric identification could help reduce identity fraud, but there has never been much evidence of large-scale identity fraud in India’s welfare programs.

.. There is no evidence that Aadhaar has put a dent in corruption. In our 2017 survey, we found that among households that succeeded in buying grain, skimming levels were the same — about 7 percent — in villages with or without the Aadhaar system.

.. Worse, the government wants to make it compulsory to link bank accounts and mobile phone numbers to Aadhaar numbers. Online shopping portals have also started asking for the ID from Indians simply trying to buy a book or a pair of shoes.

.. Some critics have warned that Aadhaar could turn into an instrument of mass surveillance. At a minimum, it already raises grave concerns about data security and privacy, neither of which is currently protected under Indian law.

.. The government has admitted that last year millions of Aadhaar numbers had been carelessly displayed on more than 200 government websites

..  an investigative reporter for The Tribune newspaper claimed to have found a way to buy unrestricted access to the details of any Aadhaar number for just 500 Indian rupees, about $8, from people operating on the mobile app WhatsApp.

.. Aadhaar was supposed to showcase the government’s forward thinking about efficient administration; it has only exposed the state’s coerciveness.

  • It was supposed to ease the poor’s access to welfare; it has hurt the neediest.
  • It was supposed to harness technology in the service of development; it has made people’s personal data vulnerable.

How Corruption and Cronyism in Banking Fueled Iran’s Protests

Before long though, Caspian stopped allowing withdrawals. After three months, it stopped paying interest. Finally, in May, it shut its doors for good — becoming one of the largest in a long series of failures of Iranian financial institutions in recent years.

.. The outpouring of anger was directed not only at President Hassan Rouhani, who won re-election promising to revitalize the economy, but also the country’s supreme leader, Ayatollah Ali Khamenei.

.. The cascade of defaults, economists say, was not just the result of risky banking practices, but also a case study in official corruption — a major reason Iranians found their losses so infuriating. Adding to their outrage, Iranian officials made a series of statements blaming the victims for not being more careful with their money.

.. Many of the institutions, including those that merged in 2016 to form Caspian, were allowed to gamble with deposits or run Ponzi schemes with impunity for years, in part because they were owned by well-connected elites:

in the Iranian state.

.. as many as hundreds of thousands of people lost money because of the collapsing financial institutions. Iranians have a term for the growing class of victims: “property losers,” or “mal-baakhtegan” in Persian.

.. regulators have quietly steered many of the companies into mergers with larger banks to try to absorb their losses, but that has created a worsening problem of bad loans and overvalued assets throughout the banking system.

.. Economists say that as many as 40 percent of the loans carried on the books of Iranian banks may be delinquent.

.. Even Iran’s supreme leader, Mr. Khamenei, has acknowledged responsibility for the growing number of victims of “problematic financial institutions.”

“These appeals must be dealt with and heard out,” he said this month. “I myself am responsible; all of us must follow this approach.”

.. The corruption underlying the bank failures has long been an open secret

.. The loans totaled $1.9 billion, and almost all appeared to be held by well-known insiders.

.. Among them was Hossein Hedayati, a business tycoon and former member of the Revolutionary Guards, whose swift rise was so conspicuous that websites speculated about the sources of his sudden wealth. The document released by the lawmaker showed that Mr. Hedayati owed $285 million, and in a television program discussing the loan, another lawmaker, Mohammad Hassannejad, accused Mr. Hedayati of using a series of front companies to swing the loans and hide his role.

Mr. Hedayati dialed in to the program, sputtering with rage; he denied borrowing from Sarmayeh and threated to “sue everyone,” but has yet to follow through on the threat.

.. Clerics controlled religious foundations, called bonyads, that acquired commercial businesses. The largest of these, under the supreme leader, now makes up “15 to 20 percent” of the Iranian economy

.. All the semiofficial holding companies have major advantages over private businesses in favorable access to capital, tax exemptions and political connections.

.. But under a conservative president, Mahmoud Ahmadinejad, who came to power in 2005, semiofficial bodies controlled by clerics, the Revolutionary Guards or their allies dominated the newly private financial sector.

.. the Revolutionary Guards controlled at least two, while the army, the police, the municipality of Tehran and a giant religious foundation close to the Guards controlled the others.

.. the largest were usually run by individuals close to the same ruling elite

.. They say that made it almost impossible for even the best-intentioned regulators to police the banks.

.. The outsize returns promised by the banks and financial institutions lured capital that might better have gone to more productive uses

.. leaks about the high salaries of executives at state-run companies

.. The government has since tried to block the use of Telegram in Iran

They Were Bad. He May Be Worse.

Historians have long looked to a few key criteria in evaluating the beginning of a president’s administration.

First and foremost, any new president should execute public duties with a commanding civility and poise befitting the nation’s chief executive, but without appearing aloof or haughty. As George Washington observed at the outset of his presidency in 1789, the president cannot in any way “demean himself in his public character” and must act “in such a manner as to maintain the dignity of office.”

.. New presidents also try to avoid partisan and factional rancor, and endeavor to unite the country in a great common purpose.

They avoid even the slightest imputation of corruption, of course political but above all financial.

.. Over the decades, historians’ ratings of presidents have consistently consigned a dozen or so presidents to the bottom of the heap, including James Buchanan, Andrew Johnson, Franklin Pierce and, in recent evaluations, George W. Bush.

.. Yet the first years of these failed presidencies were not always so bad, and in nearly every case not as bad as Mr. Trump’s.

.. Only in Pierce’s second year did his support for the controversial Kansas-Nebraska Act help rip open the national divisions over slavery, threatening the Union and destroying his presidency.

.. Warren G. Harding — darkly handsome, impeccably dressed and widely adored — acquired a reputation for cronyism, corruption and womanizing that continues to stain the reputation of his administration, which ended when he died of a heart attack in 1923. But while the corruption was very real, the worst of it, above all the Teapot Dome scandal, did not come to light until after his death.

.. Harding’s first year actually brought some auspicious legislative accomplishments, including passage of the Federal Highway Act of 1921, which invested millions in the nation’s infant highway system.

In October, Harding addressed a huge segregated crowd in Birmingham, Ala., and courageously urged equal political rights for blacks, without which, he said, “our democracy is a lie.”

.. In public Harding was a paragon of dignity, and his death was universally mourned.

.. Richard M. Nixon’s first year in office produced mixed results. He continued the Vietnam War but floated reforms such as a guaranteed annual income for the poor. He hinted at retreating from civil rights laws and court rulings, but enforced them.

The year also yielded innovations like the National Environmental Policy Act, which Nixon signed into law in January 1970. The mixture of arrogance and paranoia that would lead to the Watergate scandal did not take hold until later.

.. George W. Bush has made some worst-presidents lists because of the disastrous Iraq war and the collapse of the economy under his watch. But his first year was notable for his post-Sept. 11 leadership, when he rallied the country’s spirit while cautioning Americans not to turn their grief and outrage into reprisals against Muslims. He ended his first year with an approval rating in the Gallup poll of 83 percent.

.. Only two of the failed presidents had horrendous first years, which, like Mr. Trump’s, were a result largely of their own actions. James Buchanan, a wealthy bachelor, at all times courteous and dignified, connived behind the scenes even before he was inaugurated to help coax the Supreme Court into the calamitous Dred Scott decision of 1857, handed down a few days after his swearing-in and widely considered among the court’s worst.

.. Calculated to suppress antislavery politics once and for all, the decision instead alarmed Northerners by allowing the expansion of slavery — and it helped set the nation on the political course that ended in civil war.

.. The financial panic of 1857 and subsequent depression, the splintering of the Union and the later exposure of rampant corruption inside the executive branch added to the sense of Buchanan’s fecklessness.

.. Andrew Johnson, a vituperative racist, was temperamentally and politically unsuited to succeed the slain Abraham Lincoln. His troubles began when he showed up for his swearing-in as vice president drunk and belligerent.

.. After becoming president through assassination, Johnson at first signaled he would take a hard line against the defeated rebels, but then switched to attacking civil rights for the former slaves, siding with the ex-Confederates and engaging in abusive tirades against the Radical Republicans in Congress. He closed his first year by vetoing the Civil Rights Bill, which would have given the former slaves citizenship. Both houses of Congress swiftly overrode the veto, setting in motion the events that would end with Johnson’s impeachment in 1868.

.. Mr. Trump’s first year has been an unremitting parade of disgraces that have demeaned him as well as the dignity of his office, and he has shown that this is exactly how he believes he should govern.

.. he is the first president to fail to defend the nation from an attack on our democracy by a hostile foreign power — and to resist the investigation of that attack. He is the first to enrich his private interests, and those of his family, directly and openly.

.. He is the first president to denounce the press not simply as unfair but as “the enemy of the American people.”

He is the first to threaten his defeated political opponent with imprisonment.

He is the first to have denigrated friendly countries and allies as well as a whole continent with racist vulgarities.

.. If history is any guide — especially in light of the examples closest to his, of Buchanan and Andrew Johnson — Mr. Trump’s first year portends a very unhappy ending.

Is It Time for Netanyahu to Resign Yet?

That evening, a recording surfaced of Benjamin Netanyahu’s son Yair partying in strip clubs and making lewd jokes. It produced a scandal. The prime minister was forced to respond, of course, to this affair. No doubt, it was a distraction — and from something important: According to reports, the same night the younger Netanyahu was exposed as an imbecile, the Israeli air force was attacking Syrian military installations, the kind of attack that most likely requires the prime minister’s authorization — and his attention.

.. The prime minister is under investigation for corruption.

.. when Ehud Olmert, Mr. Netanyahu’s predecessor as prime minister, was in legal trouble. “No place of work — surely not the prime minister’s office — can afford a manager who spends most of his time consulting with his attorneys,”

.. He is suspected of illegally receiving gifts; he is suspected of negotiating a deal with a newspaper magnate in exchange for favorable coverage. His closest aides were investigated in connection with a corruption scandalconcerning the purchase of submarines from Germany.

.. All of our recent prime ministers faced criminal investigation:

  1. Mr. Netanyahu, during his first spell in office in the mid-1990s,
  2. followed by Ehud Barak,
  3. followed by Ariel Sharon,
  4. followed by Ehud Olmert.