Mid-19th century poverty levels in UK, US resemble those in India today: Expert

In low-income countries, social protection systems are truly at their infancy, and have only recently replaced decades of international humanitarian approaches, said World Bank expert

GN Bureau | January 9, 2017


#Ugo Gentilini   #NREGA   #World Bank   #Poverty  


Most social protection systems in middle-income countries (MICs) are still relatively new, and have yet to undergo the centuries of societal struggles and bargains that cemented welfare regimes in advanced economies. But investments in social protection in MICs seem to occur at comparatively earlier levels of development, said Ugo Gentilini, senior economist, social protection and labour global practice, World Bank.

In a blog, Gentilini, said that mid-19th century poverty levels in the UK and the United States resemble those in India today, sans an equivalent of NREGA or similar rights-based programs – and certainly no biometric Aadhaar platforms to help deliver assistance.
“A BIG (basic income grant) in a MIC might still be a long shot, but not that far off from a historical perspective. Iran, for instance, even implemented a variant of BIGs, which rapidly eroded due to inflation and eventually scaled-back for fiscal constraints.”

The blog “Being open-minded about universal basic income” said that in a world riddled with complexity, the simplicity of universal BIGs is alluring: just give everyone cash. Excerpts of such radical concepts have been put in practice across the globe, with the launch of a pilot in Kenya, results from India, a coalition in Namibia, an experiment in Finland, a pilot in the Unites States, a referendum in Switzerland, and the redistribution of dividends from natural resources in Alaska and elsewhere.

In low-income countries (LICs), social protection systems are truly at their infancy, and have only recently replaced decades of international humanitarian approaches. Here only one-tenth of those living in the poorest quintile is covered by social assistance. Limited finance is no small reason for such performance: pervasive informality and low government revenues (often below 15 percent of GDP) hinder domestic resource mobilization for, among other things, social spending. For example, the budget of a European hospital is almost nine times greater than a LIC’s average spending for the whole social protection sector (i.e., $200 million). A sudden introduction of BIGs in a LIC may be closer to moon-shooting than leap-frogging.

Moreover, there are disputes over the definition and measurement of poverty in contexts where virtually ‘everybody is poor’; targeted approaches have helped reduce the inefficiencies of old-fashioned subsidy programs (which pursued objectives similar to those of a BIG), but there is a lively debate on the trade-offs and methods of targeting (e.g., see here and here); also, the political economy of redistribution has been largely underexplored, wrote Gentilini.

A unifying constraint in countries across the income spectrum is red tape. Social assistance is underpinned by processes of targeting, application, eligibility verification, registration, recertification, and monitoring – with a vast set of programs sometimes having their own individual processes. These are often introduced for good reasons – such as prioritizing the most vulnerable – but at times complexity and opportunity costs may stifle assistance instead of enhancing it. BIGs may not waive some of those functions, especially in the early phases of introduction (e.g., identification, registration, and recertification); but no doubt the bureaucratic burden would be lessened overall, coming as relief for the bandwidth of poor people.

Read complete blog here
 

 

Comments

 

Other News

Kodnani’s acquittal raises doubts about criminal justice system

 Maya Kodnani, a BJP leader who was the MLA from Naroda when this locality on the outskirts of Ahmedabad witnessed one of the most gruesome episodes during the Gujarat riots of 2002, was acquitted by the Gujarat High Court on Friday. Her acquittal in the Naroda Patiya massacre case is only a sequel to

BMC took nearly 48 days in resolving one complaint

The number of civic complaints with BMC has increased from 61,910 in 2015 to 92,329 in 2017, which is 49% in two years. A report titled ‘Civic Issues Registered by Citizens and Deliberations done by Municipal Councillors in Mumbai’ released by Praja Foundation has found some interesting facts a

Who is Atishi Marlena?

Atishi Marlena is among the nine AAP functionaries who were dismissed by the union home ministry asserting that their posts were created without the approval of the centre. Marlena, served as education advisor of the Aam Aadmi Party (AAP)-led government in Delhi. While she was intrumental in improving the

Leadership? Learn it from Jaising, Ambani, Doshi

The Fortune magazine has named three Indians – lawyer Indira Jaising, industrialist Mukesh Ambani and architect Balkrishna V Doshi – among the world’s greatest fifty leaders.

Energy as the new value system for redesigning daily life

Remember Kardashev scale? For the uninitiated, it’s a method of measuring a civilization’s level of technological advancement, based on the amount of energy it is able to use for communication. We will get to its unconventional relevance to the big urban questions at the end, but just keep it a

48 MLAs, MPs have declared cases of crime against women

Out of 1580 MPs and MLAs with criminal cases, 48 (three MPs and 45 MLAs) have declared cases related to crime against women. The Association for Democratic Reforms (ADR) and

Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter