Last week, a group of 40 economists wrote an open letter to United Progressive Alliance (UPA) chairperson Sonia Gandhi arguing for cash transfer as a mode of delivery for the proposed National Food Security Act (NFSA). The letter was carried in detail in several newspapers including Mint. The good thing is that there is now almost a consensus, at least among economists, that whatever be the mode of delivery of subsidy,...

The farmers' struggle against land acquisition only shows that from passive forms of protest they have turned to active forms of resistance. THE recent agitation by farmers in Uttar Pradesh against cropland acquisition for non-agricultural purposes is only the latest in a long series of protests by farmers and rural communities, which started a decade ago in different parts of the country and which gathered momentum over the past five...

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...

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...

It would be sad if the potential of cash transfers was lost as a result of hasty posturing by those on various sides of the debate. The fact is that, in India today, poverty and economic insecurity remain endemic in spite of fantastic economic growth. The existing system has failed to arrest the growing number in poverty, despite substantial government spending ostensibly designed to reduce poverty. Could cash transfers help? A...