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$adminprix = 'admin' $rn = object(App\Model\Entity\Article) { 'id' => (int) 7706, 'title' => 'World Bank for PDS cash plan by Basant Kumar Mohanty', 'subheading' => '', 'description' => '<div align="justify"> The World Bank has backed a controversial proposal to replace foodgrain allotment under the public distribution system with a system of direct cash transfer.<br /> <br /> 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”.<br /> <br /> It attributed the low reduction to “high leakage” in the PDS system and its weak implementation mechanism. Earlier, the National Advisory Council had rejected the cash transfer proposal.<br /> <br /> In a report released after a review of the implementation of anti-poverty programmes, the bank said leakage and diversion of grains from the PDS were high.<br /> <br /> Quoting data from the National Sample Survey, the report said only 41 per cent foodgrain released by the government reached households. In 2001, the Planning Commission had estimated this leakage of BPL grain at 58 per cent nationally.<br /> <br /> The report, called “Social Protection for a Changing India”, recommended offering households the option of a cash transfer in the long term while continuing food-based support to specific areas where access was a problem.<br /> <br /> Roberto Zagha, the World Bank country director in India, said experiences in India and other countries had highlighted the benefits of a targeted cash transfer. Bihar, for example, has already introduced food stamps or coupons.<br /> <br /> “International experience shows there is a strong case for cash transfer instead of food distribution. This should be considered as a long-term reform in PDS,” John Blomquist, the World Bank lead economist of social protection in India, said.<br /> <br /> He added, however, that a component of inflation adjustment would be required to insulate the system.<br /> <br /> The report said states with higher poverty were allocated more funds from the central budget but they had the lowest capacity to spend effectively.<br /> <br /> Food rights activist Colin Gonsalves opposed the cash transfer proposal. “It will corrupt the system completely. It is worse than the PDS system. The money will never reach beneficiaries. There will be high leakage.”<br /> <br /> Gonsalves said a cash transfer scheme had succeeded in Brazil where every person had a bank account. “How many SC/ST people have bank accounts in India? When you give cash directly, they may misuse it.”<br /> <br /> He said the best option was to strengthen PDS implementation. “Ration shop owners are private people. They are appointed by politicians and are responsible for the leakage. The PDS should be nationalised and the government needs to have its own network to distribute the grain.”<br /> <br /> India spends two per cent of its GDP on social security schemes for eradicating poverty. 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$adminprix = 'admin' $rn = object(App\Model\Entity\Article) { 'id' => (int) 7706, 'title' => 'World Bank for PDS cash plan by Basant Kumar Mohanty', 'subheading' => '', 'description' => '<div align="justify"> The World Bank has backed a controversial proposal to replace foodgrain allotment under the public distribution system with a system of direct cash transfer.<br /> <br /> 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”.<br /> <br /> It attributed the low reduction to “high leakage” in the PDS system and its weak implementation mechanism. Earlier, the National Advisory Council had rejected the cash transfer proposal.<br /> <br /> In a report released after a review of the implementation of anti-poverty programmes, the bank said leakage and diversion of grains from the PDS were high.<br /> <br /> Quoting data from the National Sample Survey, the report said only 41 per cent foodgrain released by the government reached households. In 2001, the Planning Commission had estimated this leakage of BPL grain at 58 per cent nationally.<br /> <br /> The report, called “Social Protection for a Changing India”, recommended offering households the option of a cash transfer in the long term while continuing food-based support to specific areas where access was a problem.<br /> <br /> Roberto Zagha, the World Bank country director in India, said experiences in India and other countries had highlighted the benefits of a targeted cash transfer. Bihar, for example, has already introduced food stamps or coupons.<br /> <br /> “International experience shows there is a strong case for cash transfer instead of food distribution. This should be considered as a long-term reform in PDS,” John Blomquist, the World Bank lead economist of social protection in India, said.<br /> <br /> He added, however, that a component of inflation adjustment would be required to insulate the system.<br /> <br /> The report said states with higher poverty were allocated more funds from the central budget but they had the lowest capacity to spend effectively.<br /> <br /> Food rights activist Colin Gonsalves opposed the cash transfer proposal. “It will corrupt the system completely. It is worse than the PDS system. The money will never reach beneficiaries. There will be high leakage.”<br /> <br /> Gonsalves said a cash transfer scheme had succeeded in Brazil where every person had a bank account. “How many SC/ST people have bank accounts in India? When you give cash directly, they may misuse it.”<br /> <br /> He said the best option was to strengthen PDS implementation. “Ration shop owners are private people. They are appointed by politicians and are responsible for the leakage. The PDS should be nationalised and the government needs to have its own network to distribute the grain.”<br /> <br /> India spends two per cent of its GDP on social security schemes for eradicating poverty. The PDS absorbs substantial public resources at almost one per cent of the GDP. </div>', 'credit_writer' => 'The Telegraph, 19 May, 2011, http://www.telegraphindia.com/1110519/jsp/nation/story_14001592.jsp', 'article_img' => '', 'article_img_thumb' => '', 'status' => (int) 1, 'show_on_home' => (int) 1, 'lang' => 'EN', 'category_id' => (int) 16, 'tag_keyword' => '', 'seo_url' => 'world-bank-for-pds-cash-plan-by-basant-kumar-mohanty-7805', 'meta_title' => null, 'meta_keywords' => null, 'meta_description' => null, 'noindex' => (int) 0, 'publish_date' => object(Cake\I18n\FrozenDate) {}, 'most_visit_section_id' => null, 'article_big_img' => null, 'liveid' => (int) 7805, 'created' => object(Cake\I18n\FrozenTime) {}, 'modified' => object(Cake\I18n\FrozenTime) {}, 'edate' => '', 'category' => object(App\Model\Entity\Category) {}, '[new]' => false, '[accessible]' => [ '*' => true, 'id' => false ], '[dirty]' => [], '[original]' => [], '[virtual]' => [], '[hasErrors]' => false, '[errors]' => [], '[invalid]' => [], '[repository]' => 'Articles' } $imgtag = false $imgURL = 'The Telegraph, 19 May, 2011, http://www.telegraphindia.com/1110519/jsp/nation/story_14001592.jsp' $titleText = null $descText = ' 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. 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