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...
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Mending the Food Security Act by Jean Drèze
The National Advisory Council has proposed a framework for the National Food Security Act. But its potential could be wasted by a flawed approach to the PDS. Two years have passed since the Central government announced that a draft National Food Security Act (NFSA) would be posted on the Food Ministry's website “very soon.” After prolonged deliberations, a detailed framework for this Act has recently been proposed by the National Advisory...
More »Counting Poorly by Anuradha Raman
The Planning Commission’s definition of poverty is inexplicable In the urban sprawl that is Delhi, as in any other metro in the country, earning no more than Rs 25 per day with a family to support would prove nightmarish. Food and clothes have to be bought, there may be school-going children, colds, fevers or upset stomachs to get treated, someone with a chronic problem needing long-term treatment. Surely, someone living...
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...
More »Punjab, Star of India's Rise, Faces Steep Fall by Amol Sharma and Geeta Anand
TARN TARAN, India—India's northern state of Punjab was once a symbol of the nation's economic progress, its advances in agriculture lauded world-wide as a spectacular feat that made India self-sufficient in food production. But Punjab today faces a grave economic crisis, the result of years of shoddy governance that have stunted growth and created such a mound of public debt that the state is now seeking a multibillion dollar bailout from...
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