The recent economic survey has predicted a GDP growth rate at 9% which will bring cheers to few but not everyone unless the real inclusive growth trickles downside across all sections of society. Where is the roadmap to inclusiveness and distribution of our economic benefits in equality with due equity?
The inflationary pressure has brought millions more under poverty from previous 77%, according to Arjun Sengupta committee. The vision of Right to Food Bill is ‘Food for All people at All time with sufficient, safe and nutritious Food’. What a travesty where Our Food security is at stake with no visionary document for Agriculture sustainability till next 20 years. We dream of 4% and above growth in Agriculture and then totally rely on rain. If no rain, there is drought; if more rain, the crops are destroyed.
Just one example of lack of vision: when we have buffer crops, we don’t have enough storage capacity nor divert and distribute free to the poor; as a result food grains worth more than Rs.50,000/- crores ($10Billion) are destroyed every such season. Large parts badly need irrigation. We have enough food for all, a good example was given by Jean Dreze, if we lay all our sacks of grain in vertical row it will reach the moon and can be back. We have seen due to climate change crops failure around the world, recently in China where there is 70% decrease in wheat crop. Overall economy will crumble if we fail in agriculture. Do Governments of India and in States have the roadmap in Agriculture sector for 2030? To achieve this we have to invest more in agriculture and rural sector.
In the health sector we have the worst data even compared to sub-Saharan Africa. In India around 46 per cent of all children below the age of three are too small for their age, 47 per cent are underweight and anemia affects 74 per cent of children under the age of three and more than 90 per cent of adolescent girls, 55% of women and 24% men suffer anaemia of which nearly 58% pregnant women are badly anaemic. Thirty-three per cent women and 25 per cent men have BMI below normal. More than one lakh babies die at birth every year.
We need to understand the concept of a Welfare State, which delivers all the good, better and best to its entire citizen in equality and with equity. It is meant to serve the poor and all those who need and deserve.
Take an example: A State is like a family where the head of family looks after everyone’s need. They live, eat and prosper under one roof. The head never gives the much needed cash to some particular member so that he/she fulfils his/her need alone. But the head takes care of the need collectively. This head is said to be caring and loving one, who looks after the welfare of his family with utmost care and love. If any member is weak and needs help, he is loved and cared by all generously. This is a Welfare State.
On the other hand, if the head of the family doesn’t care the family members when the need arises, he just gives away the cash to fulfil their daily needs individually, he is said to be least caring and loving. The family will never prosper nor will it get the much affection among them. The end result: it creates selfishness, self-centred and arrogant attitude towards other members of the family. This is what we call in modern economics Neo-liberalism.
A Neoliberal State is where only the elite are served. State for the elite, by the elite and of the elite OR a Welfare State where everyone is served and cared for on the basis of equality and equity. If the State loves its people, it will care for them by sharing and facing the responsibilities. Cash transfer will only show the Government of India in bad light which is not caring and loving its people and shying away from its prime duty and responsibility without facing challenges and hurdles to serve its own people.
The other most important thing in direct cash transfer is that the poor can be easily lured into gambling and liquor. The only sufferer is woman and children. It will only aggravate to their problems.
The main reason given by the proponent of cash transfer is leakages in PDS system and the other to save huge spending on the process. By whom are leakages created and who is responsible for the same? The answer is simple. It is governance failure to implement and not existing PDS schemes. Instead of plugging the leakages of governance we are opting for cash transfer. It should be plugged by the State machinery itself. In a Welfare State we need not bother on right spending whether it is small or huge. It is the duty of the State to look after its people.
Is someone comparing our economic system to that of the UK or any other state so far as cash transfer is concerned? One should know that the UK is a fully grown Welfare State with minimal poverty and less income disparity, and all other countries are unlike India with huge population and great diversity in each and every aspect of life. We are a very poor, developing so-called ‘Welfare State’ with huge income disparity. Our trickledown mechanism has failed which needs to be overhauled and strengthened. The PDS, ICDS, MNREGA and many more such schemes are quite effective in alleviating poverty, but the system needs to be checked and controlled.
What guarantees that cash transfer will alleviate poverty? On the other hand, cash transfer means more of trouble. Again who is going to control? Who will be the real beneficiary? Is the cash transferring a foolproof system? Therefore it is unfortunate here that the cash transfer is ‘no subsidy’ but just like giving alms to the poor. The gradual decrease in subsidy is bad for progress of a society in a longer term. The cash transfer idea for PDS will certainly prove we are a withering Welfare State and are derogating our own poor people.
We should be inclined more to the welfare of the needy and poor by Universalisation of PDS, Health Care and other welfare measures that directly touch them. The poor need much of help from Government but with ‘due respect and love’. Let it prevail in a much better way by owning our responsibility and more transparent efficient governance.
For cash transfer we need to say ‘No to cash transfer, but Do withhold our Welfare status’