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
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
On May 23 this year, the ministry of environment issued ‘Rules on prevention of cruelty to animals (regulation of livestock market)’ with the purported aim of regulating animal markets. When one reads the rules – notwithstanding the lame efforts from union ministers to issue clarificati
BEML, a mini ratna category-1 enterprise of the defence ministry, has set a target of using 100 percent renewable energy for its own consumption. In this connection, BEML’s 9 MW Windmill Park installed at Bagalkot District in Karnataka was recently
Bharat Heavy Electricals Limited (BHEL), a Maharatna enterprise, has recorded nearly 14 percent growth in its intellectual capital in 2016-17 fiscal. During the year, a record 508 patents and copyrights were filed by the company, translating into filing of nearly two patents/copyrights
National Aluminium Company Limited (NALCO) has joined hands with the Confederation of Indian Industries (CII), Odisha, to organise outreach programmes for industries and other stakeholders on GST implementation. Series of interactive programmes are being
Taking prime minister Narendra Modi’s vision of ‘Housing for all by 2022’ forward, Employees` Provident Fund Organisation (EPFO) has amended the EPF Scheme, 1952 to provide assistance in acquiring affordable houses to the EPF members by allowing withdrawal from PF to
IndianOil is currently transporting bulk LPG from Mangalore to various LPG bottling plants in north Kerala through about 100 bullet trucks every day, which ply on narrow highways. A pipeline connecting the proposed LPG import terminal to Kochi Refineries Limited and the LPG bottling plants at Udayamperoo