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Formalizing Ghana's Economy Through an Implementation Of www.ijird.com June, 2019 Vol 8 Issue 6 ISSN 2278 – 0211 (Online) Formalizing Ghana’s Economy through an Implementation of National Identification System: Issues and Perspectives Dr. Ebenezer M. Ashley Lead Consultant, Department of Finance, Banking, Economics and Business EBEN Consultancy, Accra, Ghana Ernest A. Lartey Ph.D. Candidate, Department of Controller, MTA, New York City Transit, New York, USA Bernard Obeng Lecturer, Department of Sociology and Social Work, KNUST, Kumasi, Ghana Abstract: The demand for national identification systems by economies across the globe is on the ascendency in recent years. The increasing demand could be attributed to a number of factors including internal and external insecurity emanating from terrorism threats, fraudulent activities in the financial sub-sector, challenges inherent in equitable distribution of welfare benefits to targeted beneficiaries, among others. However, availability of accurate and authentic data for effective national planning and development remains a challenge to many countries. Although some economies have made significant strides in their quest to effectively document their citizens and non-citizens resident therein to ensure efficiency in policy implementation, this remains a mirage in many other countries across the globe, including Ghana. The present study sought to examine how the adaptation and implementation of a national identification system could facilitate formalization of the Ghanaian economy to accelerate her intended development and growth in all sectors. The systematic exploratory technique, an example of the mixed methods approach to scientific inquiry, was adapted for this research. That is, the research was conducted with strong qualitative leanings though elements of both qualitative and quantitative methods were present. Secondary sources were identified as the most reliable means of gathering relevant data for the present study. These included text books, peer-reviewed articles in journals, news paper publications, and the Internet, among other sources. Findings from the study revealed adaption and implementation of national identification systems have yielded varied socio-economic results in some emerging and developing economies across the globe. Several enactments have been passed by the Parliament of Ghana and received Presidential assents to ensure the adaption and implementation of a national identification system in the country. The research outcomes revealed some socio-economic benefits to be derived from the Government’s decision to adapt, install, and implement national identification system in Ghana as well as challenges that could mar the realization of those socio-economic benefits. The study recommended the need for the National Identification Authority (NIA) to adapt and implement the smart integrated system; and ensure its staffs are adequately resourced in terms of training and equipment to facilitate harmonization and integration of all public data into one data warehouse. The study further recommended the need for effective prioritization of functions of the NIA; and use of an individual’s fingerprints as a unique identification in proxy for a missing or misplaced identity card. The new national identity card must be friendly to the visually-impaired; it must include a tactile feature to ease its usage by the visually-impaired. The Board and Management of the NIA must ensure value-for-money by adapting the right system for the registration process. Protection of citizens’ and non-citizens’ sensitive information must be of utmost concern to the NIA; sophisticated technology that could protect registrants’ data against hacking should be acquired and used by the NIA. It must ensure strict adherence to and implementation of the content of the Data Protection Act of 2012, Act 843 to assure the privacy of all registrants. Keywords: Act, biometric, national identification authority, national identification system, national identity card, national identity register, register, regulation, security theory 1. Introduction The need for a national identification system to ensure issuance of national identity cards to citizens or members of society was conceived several centuries ago. Lyon (2009) affirms the resolve of Europe’s modern state system to technologically identify citizens between 1400 and 1600. The surge in global population and ease in migration across various continents bring in their wake social and economic challenges such as civil and tribal conflicts, inadequate provision of infrastructural facilities, growing pressures on general public service delivery, terrorism, fraud, and crime, among others. In contemporary societies across the globe, it is becoming increasingly paramount to identify and duly categorizethe inhabitants of a country into citizens and non-citizens to help curb or prevent the foregoing socio-economic INTERNATIONAL JOURNAL OF INNOVATIVE RESEARCH & DEVELOPMENT DOI No. : 10.24940/ijird/2019/v8/i6/ JUN19024 Page 250 www.ijird.com June, 2019 Vol 8 Issue 6 menace. Whitley and Hosein (2010) found unanimity among several governments across the globe to adapt and implement an identity policy to strategically stem the growing tide of global population increase on their economies. A national identification system(NIS) refers to a technological device adapted and implemented by a government to ensure vital biographic and biometric data of citizens and non-citizens are collected and migrated into computer systems for analytical, planning and development purposes.Clarke (1994) notes the functionality of this system is to ensure the existence of a link between individual members of a given country and stream of data. National identification systems generate identity cards for citizens and other nationals as may be determined within a given jurisdiction. Michael and Michael (2006) believe an identity card facilitates our identification of persons belonging to a particular group. A national identification system enables governments to issue unique identification numbers to their citizens and other nationals. This initiative expedites government-led programs and interventions; and enables citizens to exercise their democratic franchise with relative ease. In many modern states across the globe, members of society are obliged to have an identification card, so they could call themselves citizens; and effectively participate in government-sponsored programs and schemes. Islam, Baniamin and Rajib (2012) found significant improvements in the lives of citizens of many economies across the globe today, owing to the issuance of national identity cards by the latter to the former.The findings revealed better improvements in the lifestyles of citizens with national identity cards in the near and distant future.Lyon (2009) found a positive relationship between national identity card derived from national identification system and social benefits such as improved well-being and protection against internal and external threats. 1.1. Background of the Study In Ghana, the idea of issuing national identity cards to citizens was first considered and implemented in 1973. The exercise was carried out mainly in the border regions, including Brong Ahafo Region, Northern Region, Volta Region, Upper East Region, Upper West Region, and some parts of the Western Region. After three years of implementation, the registration exercise was discontinued due to financial constraints and logistical challenges. In 1987, the national identification project was revisited by the Provisional National Defence Council (PNDC) through the National Commission for Democracy (NCD). Various committees such as the Technical Implementation Committee were established to ensure continuation of the national identification project. However, actual implementation of the project suffered a setback due to financial constraints (NIA, n.d.). A National Economic Dialogue was convened in Ghana in 2001. One of the major issues that formed an integral part of the dialogue was the need for a policy on national identification system. To ensure realization of the foregoing objective, members of stakeholder organizations were drawn together to constitute a multi-sectoral Technical Committee. The committee was responsible for studying and reviewing the 1991 report on national identification; establishing the main principles and conceptual procedures for an integrated national identification system for Ghana; identifying and recommending specific technologies for such a system; and developing plan of action and time frame for implementation of the national identification system. The Technical Committee completed its task and submitted a report to Cabinet for consideration and implementation in 2002.The report was accepted and formed the basis for Government to ensure all citizens and non-citizens legally resident in the country are covered; assist in disaster management, welfare services, healthcare service delivery, and crime prevention; enhance public services delivery to targeted groups, social security, and banking services; improve drivers’ licenses and passports application processes and acquisitions; and help to increase government revenue collection and mobilization (NIA, n.d.). 1.1.1. National Identification Authority Act of 2006, Act 707 In 2003, Ghana’s National Identification Authority (NIA) was established under the Office of the Second President of the Fourth Republic, former President John AgyekumKuffuor. The mandate of the NIA was to issue national identity
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