The current perception that cash transfers can replace public provision of basic goods and services and become a catch-all solution for poverty reduction is false. Where cash transfers have helped to reduce poverty, they have added to public provision, not replaced it. For crucial items like food, direct provision protects poor consumers from rising prices and is part of a broader strategy to ensure domestic supply. Problems like targeting errors...

For most people in cities, Labour Day (or May Day, which was on May 1) was just another public holiday that nobody thought too much about. On a day marked to give voice to the rights of the Indian work force, perhaps one ought to consider those who have been forced to join their ranks too soon - child labourers. According to government estimates, an astounding 42.02% of the Indian workforce...

Government has redefined what constitutes poverty A nationwide survey that will simultaneously map the economic, caste and religious backgrounds of the entire population was approved by the Union Cabinet on Thursday. The survey marks two firsts: firstly, in a break with past practice, the Below Poverty Line (BPL) Census has been widened to include urban areas; earlier, it was restricted to rural India. Secondly, the caste headcount, which will be conducted simultaneously...

-BBC   India's cabinet has approved a proposal for a survey to identify people living below the poverty line, which also redefines what constitutes poverty. It will classify the rural poor into "destitutes, manual scavengers and primitive tribal groups". Urban poor will be defined as those in vulnerable shelters, low-paid jobs and homes headed by women or children. The survey, to be conducted alongside a caste census later this year, will help identify those...

Cash transfers cannot and should not replace the public provision of essential goods and services, but rather supplement them. Cash transfers are the latest fad of the international development industry, as the preferred strategy for poverty reduction. And now Indian policymakers are busy catching up. The idea was mooted in the Government's Economic Survey for 2010-11, and the Finance Minister made an explicit announcement in his budget speech for replacing some...