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Resource centre on India's rural distress
 
 

Jean Dreze, the Belgian-born hunger economics expert, interviewed by Sindhu Bhattacharya (Moneycontrol.com)

-Moneycontrol.com

Jean Dreze, the Belgian-born hunger economics expert, on the devastation of Covid, what plagues MNREGA, central government’s relief measures, stimulus packages, vaccination drive and more.

The big lesson from the havoc wrought by Covid-19 is that India must abandon the “fragmented” US model of healthcare, which is a colossal failure, according to developmental economist Jean Dreze. A Belgian-born hunger economics expert who has co-authored books with Nobel laureates Amartya Sen and Angus Deaton, Dreze has worked extensively in India, especially in rural areas.

In an interview with Moneycontrol, he analysed problems that led to a shortage of vaccines and suggested reasons for an overhaul of the payment system for MGNREGA—the rural job guarantee scheme he helped draft. Edited excerpts:

* What are your thoughts on the immediate as well as the long-term impact of the second wave of Covid-19 on India's economy … on livelihoods? Is a fresh fiscal stimulus package required?

The second wave has certainly precipitated or rather prolonged a serious livelihood crisis. There is abundant evidence that poor people were still struggling with the fallout of the first wave when the second wave hit the country.

Just to cite the most recent survey, by the Centre for Economic Performance at the London School of Economics, the authors found that 40 per cent of respondents in their sample of informal-sector workers from Bihar, Jharkhand and Uttar Pradesh had not earned anything in the week preceding the survey, either because they had not worked or because they were yet to be paid. That was earlier this year, from January to March.

The second wave is now receding, but a third one may not be far off. With vaccination progressing quite slowly, we have to be prepared for intermittent crises until the end of the year and possibly beyond that.

A fresh stimulus package is essential and so are relief measures for poor people. Income transfers in cash or kind is a useful way of combining the two. Last year, the central government had initiated limited but still useful transfers such as double food rations under the public distribution system, expanded employment under the National Rural Employment Guarantee Act, and cash transfers to pensioners and women’s Jan Dhan Yojana accounts. No provision for any measures of this sort were made in this year’s budget.

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Image courtesy: Moneycontrol.com