CONTEMPORARY GLOBAL CHALLENGES AND TECHNOLOGY SOLUTIONS

1. CONTEMPORARY GLOBAL CHALLENGESANDTECHNOLOGY SOLUTIONS P. Abraham Paul. 10 April 2019.

2. CONTEMPORARY GLOBAL CHALLENGES

3. CONTEMPORARY GLOBAL CHALLENGES. • POVERTY. Eradication of Poverty with “UNIVERSAL BASIC INCOME.“ (UIB) ‘Minimum Income Guarantee’ (MIG), Till Creation of More JOBs 2. Eradication of Corruption / Black Money. To reduce Economic Gap Between Rich and Poor. 3. TAX Free Regimes. To reduce Financial burden on the Common People. 4. Restraint on Proliferation of Terrorism. By Monitoring & Preventing Money Flow into Wrong Hands. 5.Cyber Security and PRIVACY. With Exclusive CLOUDS and CLOUD COMPUTING. (Ensuring Privacy is Vital in everything Digital & ICN/ICT. Also help to Save Telecom Businesses; in Verge of Collapse.)

4. WHAT IS UNIVERSAL BASIC INCOME. Universal basic income (UBI) is a model for providing all Citizens of a Country or other geographic area with a given Sum of Money, regardless of their Income, Resources or Employment status. The purpose of the UBI is to prevent or reduce Poverty and increase equality among citizens especially where not enough Jobs. This is a form a Basic Income mainly to alleviate Poverty, also called, Citizen's Income (CI), Citizen's Basic Income (CBI) (in the United Kingdom), Basic Income Guarantee (BIG) (in the United States and Canada), Minimum Income Guarantee (MIG) (now being proposed in India) is a periodic cash payment delivered to all on an individual basis, without means test or work.

5. Global Challenges. (1) 1. ERADICATION OF POVERTY. Object. Eradication of POVERTY. (Caused by acute lack of JOBs) With provision of Minimum Income Guarantee #MIG in Lieu, as JOBs and Income from Agriculture & Other Sources, Continue to Remain, Scarce. The Proposal in nutshell: • Quick Development, Implementation and Deployment of a System and Network for providing a meaningful ‘Minimum Income Guarantee’ MIG • On the same lines, as a forerunner of ‘UNIVERSAL BASIC INCOME’. UIB • Paid Monthly in CASH by Direct Benefit Transfer Method (DBT) by Government; • To all those in this Country’s Population who are eligible for it; that include, Viz, - All those in ‘Below Poverty Line’ #BPL, also in ‘Above Poverty Line’ #APL • A good part of it in the 67% of Population covered under Food Security Bill #FSB • In Lieu of JOBSs and Employment Opportunities continue to remain, Scarce.

9. MONEY BORROWERS APPROACH MICRO FINANCE COMPANIES MICRO FINANCE COMPANIES mTm ACCOUNT OF BORROWERS mTm SERVICE PROVIDER SYSTEM MFC’S mTm ACCOUNT Customers mTm A/C mTm-ATM KIOSKS mTm-Franchisees mTm-END USERS MICRO FINANCE SUPPORT TO MSMEs

13. CREATES & MANAGE VIRTUAL & PHYSICAL MONEY. BANKS BANKS, PAYMENT BANKS PO BANKING NETWORK VIRTUAL MONEY PHYSICAL MONEY RBI MFCs, ORGANISATIONS, CO-OPERATIVE BANKS VIRTUAL MONEY MANAGEMENT PHYSICAL NONEY MANAGEMENT VENDORS, SHOPS SERVICE PROVIDERS NATIONAL CHARGING GATEWAY USERS REVENUE PRIVATE FinTech COMPANIES WORKING ON PREPAID MODE STATISTICS

14. A MEANINGFUL SUITABLE ‘MINIMUM INCOME GUARANTEE’ FOR INDIA. • Quick Development and Implementation of • A 'Minimum Income Guarantee' #MIG Suitable for India. • Minimum Income Guarantee shall become Meaningful, • only if it is Substantial for the Subsistence of the beneficiaries. • And cover all eligible ones in the Populations as its • beneficiaries, that include those in current Below Poverty Line • #BPL and part those in Above Poverty Line #APL. • Implementation of Minimum Guarantee shall enable • replacement of MNREGA & Scrapping the problem prone • 'Public Distribution System' PDS and Withdrawal of most • Freebies, Loan Wavers, Economic status based Reservations. • And use the above Funds for Implementation of Minimum • Income Guarantee.

15. MINIMUM INCOME GUARANTEE – A HYPOTHETIC PROPSITION • A Meaningful Minimum Guarantee as mentioned above is expected to be like Making a Payment of hypothetically say, a Cash payment of Rs.100 per Day for every Eligible ones by Direct Transfer Method on a Monthly Basis. • The number of eligible ones are assumed as about 40% of Population that include all those in current Below Poverty Line (BPL) and those in eligible ones in Above Poverty Line, • that works out about 50 Crore Beneficiaries. • This will need an estimated financial resource of about • Rs.18.25 L Cr Annually. • Huge!!. Almost near to India's Current Total Annual Budget Outlay.

16. MINIMUM INCOME GUARANTEE – A HYPOTHETIC PROPSITION (2) Rs. 100 /day and 40% Population taken here are hypothetical figures for explanatory purpose; that can vary according to the needs from time to time. It would be about Rs. 30 Trillion, if it is considered that ‘Minimum Income Guarantee’ is to be extended for remaining 27% in the 67% of population covered in Food Security Bill. Finding of Financial Resource for this is the Critical issue. A portion of it can be made good from the savings from scrapping of existing Services MNREGA, PDS & FSB and the many Freebies. How to find the Monitory Resources by Government for the remaining Fund required for implementation of a meaningful ‘Minimum Income Guarantee Scheme’ sans Taxes with advance Technology Solutions is the main theme of this discussion.

17. THE POWER AND PERILS OF MONEY GOING VIRTUAL I made a presentation years back here IEI, explaining Money going Virtual is DISRUPTIVE and also POWERFUL. Advancement of Technology cannot be stopped; Converting the disruptive potential as advantage is the way to go. How? By using MONEY as a COMMODITY. Like Money in PHYSICAL form, MONEY in its Virtual form also shall be made a legal tender and its ownership should also be retained with the Government. This can be done by Government making Reserve Bank of India, the sole Creator, Custodian, Operator, Regulator and Controller of Money in Virtual form also. And ban all e-Money and e-Wallets being created by Private #FinTechCompanies as Counterfeit and hence illegal.

18. GOVERNMENT OPERATE MONEY AS COMMODITY. An idea first of its kind. C D IN EMERGING WORLD DATA IS USED AS COMMODITY. M D AS MONEY GONE VIRTUAL MONEY BECOMES DATA. C M THUS MONEY CAN BE OPERATE AS COMMODITY. GOVERNMENT OPERATE MONEY AS COMMODITY. #GOMAC UNIVERSALLY GOVERNMENT OPERATE MONEY AS COMMODITY. #UGOMAC

19. GOVERNMENT OPERATE MONEY AS COMMODITY. Large number of Transactions of huge amounts of Money happen in the Country in Hard CASH, With various Instruments of Money, Direct and Through Banks, Money Exchange Agencies etc. Huge amount Money Transactions also happen using Credit Cards, Net Banking etc., in Electronic medium. Money Transfer between Employer and Employees, Government and other Business houses, and Institutions to Contractors etc. Money flow into the Country from Indians abroad also the inflow and flow outflow in export and imports of Goods and Service. Much more Money Transactions in Real Estates and Business transactions, within and in between Organisations, Government Departments, Religious Institutions and Political Funding some accounted and many unaccounted.

20. GOVERNMENT OPERATE MONEY AS COMMODITY. (2) There is no idea of the Amount Total Money involved in all the above and much more put together as most of it are unaccounted. Most transactions are yet to be brought under Electronic mode. So, let us look the Money Transactions Using Mobile Phones. India has over Billion Phones (Mobile plus Landlines), and growing. MOST PHONES NOW HAVE MONEY TRASFER FACILITY. With an average Transaction of Rs.10,000 per month per Phone, the amount of Money Transacted in Virtual form amount to about Rs.10 L Cr (Rs.10 Trillion.) per Month. Money is Dynamic - More so when it is in Virtual form. Assuming that Virtual Money Transactions and Re-transactions happen on an average of 10 times a month, it will be Rs.100 L Cr per month that amounts to Rs.1200 L Cr (Rs.1200 Trillion), Annual. This is taking the Transactions through Mobile Phones only.

24. Government Operate Money as Commodity. (3) Assuming that a transaction of Rs.1200 Trillion happen using Phones, and levying a small percentage, Say just 2%, Government can fetch Annual Revenue of Rs.24 L Cr (Rs.24 Trillion). This is more than India’s Current Annual Budget expenditure outlay of Rs.20 L Cr. (Rs.20 Trillion.)   (Note: Rs.20 L Cr. divided by Population of the country works out to only about Rs.40 per person per day, which is less than current rate of #BPLindex. (What sort of development the Country can achieve with it, is anybody’s guess?)

25. Government Operate Money as Commodity. (4) BY bringing entire Money Transactions both in its Physical as well as in Virtual Form under the control of Reserve Bank of India Government can Generate a revenue of at least Rs.240 Trillion annually that is more than Ten fold of that of current Budget outlay, without any Taxes, using the concept of Money as Commodity. This can take care the needs of Central as well as States and cover cost of implementation of a meaningful Minimum Guaranteed Income of Rs. 100/day for 67% Population covered under Food Security.

26. How Government Operate Money as Commodity to Generate Revenue CREATES & MANAGE VIRTUAL & PHYSICAL MONEY. BANKS BANKS, PAYMENT BANKS PO BANKING NETWORK VIRTUAL MONEY VIRTUAL MONEY e-WALLET RBI MFCs, ORGANISATIONS, CO-OPERATIVE BANKS VIRTUAL MONEY MANAGEMENT PHYSICAL NONEY MANAGEMENT e-WALLET VENDORS, SHOPS SERVICE PROVIDERS e-WALLET NATIONAL CHARGING GATEWAY USERS e-WALLET REVENUE PRIVATE FinTech COMPANIES WORKING ON PREPAID MODE e-WALLET STATISTICS

27. RETAIN THE UNIVERSAL NATURE OF MONEY TRASACTIONS. The above said in no way means that Private FinTech Companies handling businesses based on e-Money and e-Wallets are to be kept out of this process of using Money as Commodity; As Government systems and Networks alone will not be able to handle an operations of such an humongous nature on 24/7 basis. It simply means that, while the Origination of Money in Virtual form and its e-Wallets shall be by the Reserve Bank of India; These shall be procured and used the same way they do with Real Money Private e-money businesses, known and #Fintech companies as its USERS. That are then given out to its all other USERS involved in Money Transactions in Virtual Form, the same way done with Real Money.

28. Role of Reserve Bank in Money Going Virtual . Since RBI by itself cannot handle the millions of Money Transactions where RBI is not a party, RBI’S responsibility is Creation of Money in Virtual form, and handle it the same way how the Real hard currency is managed. That is, RBI do Capitation of National Banks with VIRTUAL MONEY and its further distributed everywhere by the PAYMENT BANKS created exclusively for this purpose including Post Office Banking Network. However, Other than RBI, none of the Exclusive Payment banks or any other banks or private FinTech Companies will have authority to create any form of Virtual Money and e-wallets of its own.

29. Global Challenges. 2.   Eradication of Corruption / Black Money. Few Rich in this Country amass huge wealth with Corrupt practices and hoard much of it as Black Money. This is one of the reasons of widening the Economic Gap between Rich and Poor; and is the Global Challenge. Another reason for this is involvement of huge amount of un-accounted Money in Politics, one of the main perils hurting the smooth Democratic process. It can be seen in the ongoing discussion that Government operate Money as Commodity can effectively address this; As the information of every movement of Money in its Physical and Virtual form will become visible in the proposed Server.

30. Global Challenges. • Heavy Duties and Taxes. • Governments need Money for it Budgetary Expenses. • Main resource for this is Duties and Taxes. • A good part of the revenue is spent on subsidies and giving out as Monetary Benefits. • Heavy Taxes, is like giving with one hand taking it back by other. • The solution is to make India a TAX FREE Country. • WOW!!! But HOW??? • By same process: Government Operate Money as Commodity. • That enables Government to Generate enough and more • Revenue for its needs. • By charging a small percentage on the amount of Money being transacted form in Real and Virtual in the Country. • Any where, any time. in any form, by any method.

31. Global Challenges. 4. Better Restraint on Proliferation of Terrorism. By same process: Government Operate Money as Commodity. As entire Statistics of all money transactions being available in the proposed Central Server, Money flow into wrong hands for wrong purposes can be monitored and identified, That can effectively help to restrain proliferation of Terrorism and Terrorist activism in the Country which is one of the contemporary Global Challenges.

32. Global Challenges. 5. Cyber Security and ‘PRIVACY.’ Cyber Security has become a contemporary Global Challenge as dependability of everything DIGITAL in turn depends on it. Future WARS will not be with GUNS & BOMBS but in CYBER SPACE. Same is true in all forms of Money Transactions in Digital form. INTERNET is the best thing happened in TECHNOLOGY. PRIVACY. Flawed CYBER SECURITY impact PRIVACY. Lack of PRIVACY impact INTERNET BASED TECHNOLOGY. Exclusive CLOUDS and CLOUD COMPUTING is the way to safeguard Cyber Security. Indigenous Manufacturing, deployment and managing over Exclusive INDIACLOUD and CLOUD Computing is the way to go.

33. THE MAJOR HURDLES The Payment banks are supposed to work under a Regulatory mechanism keeping the Money Chain, both in its ‘Real & Virtual’ forms and its Liquidity safe within the Government approved Banks that includes the consortium of Banks formed at the initiative of National Payment Corporation India (NPCI). Unfortunately, the Government in great hurry to move over to #Digitisation and use of #e-money everywhere, was virtually (probably unknowingly) leading the Country’s Economy to disruption by not only allowing but also encouraging and brazenly pushing people to do all sorts of their Money Payments using Debit cards and by Direct payments etc., in fast mushrooming Private e-money Businesses working on Pre-paid mode, that collect, hoard and divert Real Money and Creating Black Holes defeating the primary object in creation of ‘Payment Banks’

34. THE MAJOR HURDLES (2) It will need more time and efforts to make the Systems, Networks and everything needed with it everywhere for seamless working for real time approval of entire money transactions and levying a small percentage on the amount of Money transacted by Reserve Bank’s Servers setup for this purpose. The according to normal mindset of People, many may not be agreeable for making all their Money Transactions transparent. But looking closely one can see it is already happening. Hence it will Change as the idea becoming clear to the ‘Country loving’ People. The major hurdle perhaps is Political parties are likely to resist tooth and nail to make their Political Funding transparent and accountable. The systems, networks and everything related to it shall be fully redundant, Non- Hack able, and Cyber crime proof lest the whole Money Transaction can grind to halt.

35. Conclusion: The Objects Are Realizable. Firstly by invoking awareness of Power and Perils of Money Going Virtual and understanding that Government acting on it is critical. The issues involved are elaborated in my many blogs mentioned above under various topics. The crux of the issue is the whole thing shall be approached in a well-planned manner phase by phase, implementing it starting in Cities, Towns and its Ssuburbs where the needed Eco system readily available without further delay and moving on to other areas as and when made ready, as explained in my blog. The Object and Concepts to attain it are important; there are aplenty out there to add ‘Nuts and Bolts’ and many Fathers will arise later to own it, when done. Now we are neither here nor there, allowing Nation’s economy towards its fast-impending disruption. Time is long past to take decisions as Time and Technology waits for none. The hiccups: As it will bring in full transparency of money dealings of everyone including the Political lot, will the Governments and the Political Masters game for these, is the big question?