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...

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...

The debate over the National Food Security Act has been reduced to a circus for political parties, NGOs and the National Advisory Council to perform verbal calisthenics. The discussion on who is entitled, who is not entitled and who should be entitled has gone on for over two years. The discourse is deteriorating into informed nit-picking. The time for debate is over; the time for decision is overdue. Let us get...

The Delhi government might be the first in the country to implement the cash-transfer scheme, replacing the existing public distribution system (PDS). The Food and Civil Supplies Department is in the final round of discussions with the Union government on the issue. Though the Delhi government had put forward this proposal almost three years ago, it had been in cold storage ever since. The project has now been revived. Central Delhi,...

In the hue and cry over minimum wages under NREGS, battle lines have been drawn between those who favour central government hiking minimum wage rates to the state minimum, and others asserting that the two must be delinked. While the former invoke 'a right to livelihood', the latter point to the NREGS being 'the employer of the last resort and the imperative of better targeting'. While these views have some merit,...