Cash transfer as substitute for state service provision is a dangerous recipe for callously anti-poor and corrupt governance. THE staggering number of recent articles, papers and books on the virtues of giving cash in place of public services to the poor has created an impression that a sort of epidemic has broken out. Economists, policymakers, bureaucrats and newspaper commentators are all infected by it and are in turn infecting others. The central...

Given a positive regulatory environment, banks and other financial intermediaries will certainly be interested in using the smart card opportunity. Dr Arvind Virmani, with a Ph.D. from Harvard and 30 years of professional experience, is one of the most valued economists in the Government. Before he retired as Chief Economic Advisor in 2009, he had served in the Finance Ministry and the Planning Commission. A researcher par excellence, his research papers...

The union finance ministry’s decision to partially subside capital investment in healthcare and education by extending the “viability gap funding” facility to these sectors is welcome as they are vital areas of social infrastructure, which are no less important than roads and bridges. But every sector has its own complexity and the nuancing that the health ministry has sought for such subsidy to healthcare infrastructure needs serious attention. The ministry’s...

Eighty labourers, both men and women, are at work at Thiruvanduthurai village in Tiruvarur district of Tamil Nadu, about 325 km south of Chennai. They are digging a pond - about an acre wide and six feet deep - funded under the Mahatma Gandhi National Rural Employment Guarantee Scheme, or MGNREGS. Outside the work perimeter, two middle aged men look on, worried. P. Murugan and K. Govindaraj are farmers from the...

India's rural innovators have proved that ordinary people are indeed capable of extraordinary inventions. Despite many constraints -- lack of education and severe cash crunch -- most of them have succeeded in using technology cost-effectively to build ingenious products. A washing-cum-exercise machine, hand operated water lifting device, portable smokeless stove, automatic food making machine, solar mosquito killer, shock proof converter, a floating toilet soap are few of the products on display...