Why building “good” identification systems is essential to mitigating risks Despite the opportunities that come with improving identification, identification systems that are poorly implemented or inappropriately used can create a number of risks; these risks disproportionately affect already disadvantaged groups and can be amplified by digital technology. Key risks include those related to exclusion or discrimination, data protection and privacy, and poorly designed and implemented identification systems that waste resources while offering few benefits. Vulnerable and marginalized groups are often the least likely to have proof of their identity, but also the most in need of the protection and services linked to identification.10 People who are unable to obtain or easily use identification are therefore at greater risk of being left behind when strict identification requirements must be met to access services. Without proactive mitigation measures, new or upgraded identification systems may reinforce or perpetuate existing inequalities, discriminatory practices, and structural biases. Like other systems that process personal data, identification systems may also undermine individual data protection and privacy rights in the absence of appropriate laws and regulations, oversight, and technical controls and safeguards. Data breaches, unauthorized use or surveillance, identity fraud, and function creep can put people—especially vulnerable groups—at serious risk of harm. Furthermore, identification systems are often built with a “topdown” approach and little transparency. Together with poor procurement practices and design choices that inflate costs and lead to vendor or technology lock-in, this can result in systems that are operationally or financially unsustainable and that do not serve people’s needs or development goals. While these risks are present in any identification system, they may be amplified by digitization. With digital technologies, the potential scale and harm of the mismanagement or misuse of personal data are much greater than with paper-based systems. Similarly, the adoption of technologies that depend on internet connectivity and expensive devices has the potential to widen the digital divide and create new obstacles for already marginalized groups to reliably obtain or use identification. The speed of innovation can also create incentives to focus on obtaining the latest technology rather than building systems that are fit for current purposes and flexible for future needs. Furthermore, even if identification systems are successfully digitized, they are unlikely to reach their potential without full digitalization—transforming and rethinking processes for the digital medium—and complementary investments in internet connectivity, online services, payment platforms, and other digital systems. 10 The particular groups most at risk of being excluded by identification systems vary by context, but often include people living in poverty, women and children, migrant populations, refugees and asylum seekers, remote and rural residents, ethnic, linguistic, or religious minorities, sexual and gender minorities, persons with disabilities, the internally displaced, stateless persons, conflict-affected persons, informal sector workers, and other marginalized or minority groups. See, for example, World Bank. 2019. Global ID Coverage, Barriers, and Use by the Numbers: An In-Depth Look at the 2017 ID4D-Findex Survey, Washington, DC: World Bank Group. Principles on Identification for Sustainable Development 7