The Union government will set up an independent financial institution to give funds for effective functioning of the self-help groups (SHGs) and better empowerment of the rural poor. UPA chairperson Sonia Gandhi announced this while launching the National Rural Livelihood Mission (NRLM), which will be funded through financial institutions. As of now, banks will be mobilised to extend loans to the tune of Rs. 6,800 crore this year at subsidised rates...

Eminent economists have shot off a letter to National Advisory Council (NAC) Chairman Sonia Gandhi to ensure that the proposed Food Security Bill is quite comprehensive and excludes only a few rich people. They also want Sonia to get the Bill legislated in such a way it is not based on the current public distribution system (PDS) for all times to come as direct subsidy transfer could also be an...

-The Economic Times   Dear Smt Gandhi, We, a group of academic economists, are writing to you about the proposed National Food Security (NFS) Act legislation that is of profound importance to India's economy. We believe that it is appropriate that India pursues the goal of genuine food security for all through a law that guarantees a minimum transfer to every adult except a small subset of the most affluent who...

Cash transfers are now suggested by many as a silver bullet for addressing the problems that plague India’s anti-poverty programmes. This article argues instead for evidence-based policy and informed public debate to clarify the place, prospects and problems of cash transfers in India. By drawing on key empirical findings from academic and grey literature across the world an attempt is made to draw attention to three aspects of cash transfers...

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...