Identity Rights: A Structural Void in Inclusive Growth Mukesh Sud • Craig V. VanSandt Received: 12 January 2014 / Accepted: 5 September 2014 / Published online: 24 September 2014 Ó Springer Science+Business Media Dordrecht 2014 Abstract This paper investigates a structural void that, especially in the context of poor or developing nations, prevents economic growth from being more inclusive and benefiting wider sections of society. The authors initially examine the imperative for inclusive growth, one encom- passing a focus on poverty and development. Utilizing social choice theory, and a capability deprivation per- spective, we observe that the poor experience deprivations due to a deficiency in their personal autonomy. This in turn is deeply interwoven with the concept of identity. Legally recognizing the poor as individuals, and providing them with proof of their identity, will empower them and facil- itate inclusive growth and poverty alleviation. These con- ceptual arguments are illustrated with the description of a biometric-linked developmental initiative that is providing proof of identity to 1.2 billion residents of India. By establishing a robust identity management system, the project aims to ensure more inclusive growth and effi- ciently target welfare programs. The authors further investigate how the establishment of identity rights facili- tates financial inclusion, property ownership, and neces- sity-driven entrepreneurial action. Biometric identification on this scale is, however, fraught with dangers to civil liberties and has other serious ethical consequences. In the last section, issues around privacy and security are debated while highlighting the need for external review and inde- pendent monitoring to define the project’s boundaries and usages. Keywords Identity rights Á Inclusive growth Á Poverty alleviation Á Financial inclusion Á Property rights Á Necessity entrepreneurship Á Biometrics Á India Introduction Poverty, a multidimensional construct with deep spillovers, continues to stubbornly defy policy makers. Despite for- eign aid, efforts of multilateral agencies and government programs, total poverty figures remain relatively stable (Chen and Ravallion 2013) and significant alleviation of even extreme poverty remains out of reach (Easterly 2006). Recognizing this, the World Bank president observed, ‘‘Poverty amid plenty is the world’s greatest challenge’’ (World Development Report 2000–2001, p. v). Economic growth, increasingly considered a panacea for poverty, has been the focus of many governments and policy makers. It is expected that growth will lead to higher per capita incomes that in turn will impact poverty levels. High rates of growth over extended periods will help reduce poverty (Deininger and Squire 1998; Dollar and Kraay 2002; emphasis added). 1 This desirable outcome is however threatened if growth fails in giving all segments of the population a stake in its consequence. On another front, the prosperity engendered by growth is often unevenly distributed, bypassing large swathes of society. M. Sud Fairfield University, 1073 North Benson Road, Fairfield, CT 06824-5195, USA e-mail: mukesh.sud@gmail.com C. V. VanSandt (&) David W. Wilson Chair in Business Ethics, University of Northern Iowa, 241 Curris Business Building, Cedar Falls, IA 50614-0125, USA e-mail: craig.vansandt@uni.edu 1 Ravallion and Datt (2002) maintain that economic growth alone is not sufficient and factors like urban rural divide, asset distribution, access to credit, etc. also have roles to play. 123 J Bus Ethics (2015) 132:589–601 DOI 10.1007/s10551-014-2359-5