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Electronic Identification (E-ID)

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Electronic Identification (E-ID) EXPLAINING INTERNATIONAL IT APPLICATION LEADERSHIP: Electronic Identification Daniel Castro | September 2011 Explaining International Leadership: Electronic Identification Systems BY DANIEL CASTRO SEPTEMBER 2011 ITIF ALSO EXTENDS A SPECIAL THANKS TO THE SLOAN FOUNDATION FOR ITS GENEROUS SUPPORT FOR THIS SERIES. SEPTEMBER 2011 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | SEPTEMBER 2011 PAGE II TABLE OF CONTENTS Executive Summary ........................................................................................................ V Introduction..................................................................................................................... 1 Background ....................................................................................................................... 1 Box 1: Electronic Passports ............................................................................................. 3 Terminology and Technology ........................................................................................... 3 Electronic Signatures, Digital Signatures and Digital Certificates ............................... 3 Identification, Authentication and Signing ................................................................ 4 Benefits of e-ID Systems ............................................................................................ 5 Electronic Identification Systems: Deployment and Use .............................................. 6 Country Profiles .............................................................................................................. 9 Austria ............................................................................................................................... 9 Belgium ........................................................................................................................... 10 Denmark ......................................................................................................................... 12 Estonia ............................................................................................................................ 13 Malaysia .......................................................................................................................... 16 Norway ........................................................................................................................... 18 Sweden ............................................................................................................................ 19 Turkey ............................................................................................................................ 21 United States ................................................................................................................... 21 Box 2: U.S. Federal Government Electronic Identity Management Efforts ............... 22 Lessons from Early Adopters ......................................................................................... 25 Legal Framework for Electronic Signatures ...................................................................... 26 Cultural and Historical Factors ........................................................................................ 30 Country Demographics ........................................................................................... 30 National Registries .................................................................................................. 31 National Identification Card ................................................................................... 32 Organizational Issues ....................................................................................................... 33 The Degree of Centralization or Decentralization .................................................... 33 Entity Leading the Design and Implementation ...................................................... 33 Policy Issues .................................................................................................................... 34 Replacement of Existing ID Cards ........................................................................... 34 Government Programs to Spur Demand and Increase Use....................................... 34 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | SEPTEMBER 2011 PAGE III Public or Private Solution ........................................................................................ 35 Technology Issues............................................................................................................ 37 Form of e-ID ........................................................................................................... 37 Open Platform ........................................................................................................ 38 Use of Biometrics .................................................................................................... 38 Interoperability ........................................................................................................ 39 Affordability of e-ID Card ....................................................................................... 39 Privacy ............................................................................................................................ 41 Privacy-Enhancing Policies ...................................................................................... 42 Privacy-Enhancing Technologies ............................................................................. 43 Recommendations for the United States ...................................................................... 46 Create an e-ID implementation plan with broad input from all stakeholders, including the private sector ................................................................................................................... 47 Build an e-ID framework that supports both current and emerging technologies ............. 48 Use government to increase both supply and demand for e-IDs ....................................... 48 Design an e-ID solution that maximizes utility for both users and service providers ......... 50 Ensure that privacy does not come at the expense of eliminating useful information from the information economy ................................................................................................ 52 Strive for disruptive innovation, not just incremental innovation ..................................... 52 Ensure that e-ID solutions are accessible and available to all individuals .......................... 53 Design an e-ID system for the global digital economy ..................................................... 54 Endnotes ........................................................................................................................ 55 Acknowledgements ........................................................................................................ 56 About The Author ......................................................................................................... 56 About ITIF .................................................................................................................... 56 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | SEPTEMBER 2011 PAGE IV EXECUTIVE SUMMARY Identification is routinely used to help facilitate commercial and government transactions, such as taking out a loan or applying for government benefits. While individuals can use traditional forms of identification in face-to-face transactions, these forms of identification are less useful for conducting business on the Internet. To address this challenge, many governments are creating national electronic identification (e-ID) systems—a collection of technologies and policies that enable individuals to electronically prove their identity or an attribute about their identity to an information system. This report reviews the programs and practices of some of the countries with the most advanced and widely deployed national e-ID systems. It highlights the successes and failures of different approaches and focuses on the lessons that policymakers, particularly in the United States, can learn from nations that have begun adopting and using e-ID systems. National e-ID systems offer a variety of benefits for individuals, businesses and governments. These systems can help reduce identity theft and enable individuals to use online applications more securely in a variety of industries such as health care and banking. Individuals can use an e-ID to authenticate to online services, securely communicate online, purchase goods and services, and create legally-binding electronic signatures, such as to sign a contract. Businesses can use identity management functions to better interact with their customers on the Internet, such as to authenticate users to online applications or to verify the ages of their customers. Finally, government can use e-IDs to streamline e- government services, allow individuals to sign and submit forms online, and offer innovative services. Many European countries have been investing in national e-ID systems, as have countries in the Middle East and Asia. While no country has achieved universal deployment and use of a national e-ID system, some countries have made more progress than others. At present the clear leader is Estonia, which has issued approximately 1.2 million e-ID smartcards to an eligible population of 1.3 million citizens (i.e. individuals age fifteen
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