The World Bank has backed a controversial proposal to replace foodgrain allotment under the public distribution system with a system of direct cash transfer. The bank, which supports social security schemes in India, today said poverty reduction had been low and overall returns on spending to eradicate poverty had “not reached their full potential”. It attributed the low reduction to “high leakage” in the PDS system and its weak implementation mechanism. Earlier,...

-News One   Though India’s social sector spending is higher than many other developing countries, one of its flagship welfare programs — the public distribution system (PDS) — is fraught with leakages, a World Bank report said Wednesday. The PDS scheme, which consumes around one percent of the country’s gross domestic product (GDP) and covers upto 25 percent of the poor households, has had limited success, as only 41 percent of the...

Blames FCI’s internal bureaucracy for resisting reforms Much to the dismay of several NGOs that want strengthening of the public distribution system (PDS) in India, the World Bank in its latest report has favoured cash transfers. “In the medium to long term, the report recommends offering households the option of a cash transfer while continuing food-based support for specific situations…,” the bank said in the report titled ‘Social Protection for a Changing...

-Irin   Changing the food the US government supplies as aid could deliver better results and still save money, a new study says. The review for the US Agency for International Development (USAID) by researchers at the Tufts University Friedman School of Nutrition Science and Policy has been welcomed by NGOs and US food aid experts, but the findings have also come in for some criticism. The two-year review considered if USAID...

The Supreme Court stole a march on Saturday over a wavering UPA with its direction to the government to consider altering the poverty line and distributing 5 million tonnes of foodgrain to the poorest 150 districts. With the proposed Food Security Act being lobbed back and forth between the government, the Congress leadership and the National Advisory Council, the apex court's order dented UPA's pro-poor image. It might have been...