How effective are India's innumerable social security programmes at reaching out to the poorest of the poor? If a recent World Bank report is anything to go by, they are woefully inefficient. According to the report, titled "Social Protection for a Changing India", leakages and exclusion errors are endemic across the country. For instance, just 27% of the PDS . beenficiaries are the poorest of the poor. The World Bank found...
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Cash Transfers as the Silver Bullet for Poverty Reduction: A Sceptical Note by Jayati Ghosh
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...
More »The cash mantra by Jean Dreze
Conditional cash transfers” (CCTs) are a new buzzword in policy circles. The idea is simple: give poor people cash conditional on good behaviour such as sending children to school. This helps to score two goals in one shot: poor people get some income support, and at the same time, they take steps to lift themselves out of poverty. CCT enthusiasm, however, is often based on a superficial reading of the Latin...
More »Schemes that don't seek to identify poor cover them best by Rukmini Shrinivasan
The first-ever comprehensive review of India's anti-poverty schemes has found that schemes like the MGNREGS that do not specifically seek to identify the poor are most successful in actually covering them. This is a significant finding given that many in the government have been arguing for the opposite — more rigorous external targeting — ahead of the 2011 BPL census. The World Bank on Wednesday released a review of centrally-sponsored social...
More »Left behind in a web of debt and poverty by Malia Politzer
The passport office in Hyderabad reported the highest number of passport applications recorded in Indian history (at least 450,000) and it expects an increase of 15-20% this year Jamuna Kunta sits stiffly in a plush red chair at the Hyderabad press club, holding her head proudly erect as she quietly recounts the events leading to her husband’s suicide in Dubai. A farmer from Karimnagar, a rural district in Andhra Pradesh, her husband...
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