The ongoing debate over the incidence of poverty in India, often assuming surreal proportions, shows that there is indeed a ‘philosophy of poverty’ guiding current economic reforms. The loot of our country’s resources that is taking place both through these reforms, which continue to widen gross inequalities, and through the open plunder of our resources for private gain — as reflected in the series of mega scams — require the legitimacy...

One man’s fiscal problem is another man’s lifeline. Trigger happy bureaucrats and economists may love shooting down subsidies because it bloats the fiscal deficit and burdens the government but the simple fact is that in a one billion strong nation, in which nearly one in every three live below the poverty line, one needs an effective and efficient method through which privileged tax payers can support the poor. Last week, finance...

THE DEBATE on the National Food Security Bill, tabled in parliament three months ago, is on full swing. economists from both sides are arming their arguments with facts and logic. The people who would benefit of this legislation are in a dilemma. This prompts the consideration that the experts must try to see the issue from the ground reality of food security and its beneficiaries. Undoubtedly, it’s a great and historical...

-The Telegraph The Economic Survey — prepared by Kaushik Basu, chief economic adviser to the finance ministry — has some gratuitous advice for politicians like Mamata Banerjee who announced earlier this week plans to amend state legislation that will require co-operative banks to take government permission before seizing mortgaged property while trying to foreclose loans given to defaulting farmers. “The state provides the laws and enforcement to enable people to sign contracts,”...

-The Hindu   Dr. Manmohan Singh Prime Minister of India March 12, 2012 Dear Prime Minister, We welcome the tabling of a National Food Security Bill in the Lok Sabha as an important step towards the elimination of hunger and undernutrition in India. However, we feel that the Bill in its current form has some serious shortcomings. We are writing to propose a simpler and more effective framework for the Public Distribution System (PDS), which requires...