Governance Now Masterminds

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

Amnesty wind-up: NHRC notice to home ministry

As the Amnesty International downs the shutters on its India operations, the National Human Rights Commission (NHRC) has taken suo motu cognizance of the matter and sought the home secretary’s response on the allegations levelled by the global organisation. Amnesty International in Ind

Covid-19 triggers research culture in Ayurveda, traditional medicines

The Covid-19 pandemic has brought the spotlight on the health-promotive and disease-preventive solutions of Ayush (Ayurveda, Yoga, Unani, Siddha, Homeopathy) disciplines. What has not come into the limelight is the emerging nationwide trend in the Ayush disciplines, of taking up evidence-based studies.

Derivative market for electricity in India: Will it lead to innovation or speculation?

The Indian electricity sector is going through an interesting phase right now. Many reforms are being introduced to increase competitiveness and transparency in the sector. The power market in India is a surplus market now and the spot prices are going down day by day. With all these indicators signaling a

A walk down the rich history of Ayurveda

The Indic Quotient: Reclaiming Heritage through Cultural Enterprise By Kaninika Mishra Bloomsbury India, 230 pages, Rs. 499    Over the past decade, India has seen a significant rise in passion for enterprise as well as pride in her

Is China gearing up for prolonged conflict with India?

International observers will keenly watch the Chinese Communist Party Central Committee meeting next month. The central committee is the highest organ of the CCP with a mandate to execute the decision of the National Congress which is convened once every five years.   Besides economy, r

TRP-driven model bred irresponsibility: Sudhir Chaudhary

News profession is organic in nature, requires responsibility and discipline, and there is no room for mistake. To maintain high standards of accuracy you need discipline and hygiene in the newsroom. Sudhir Chaudhary, editor in chief of Zee News, Zee Business and Wion, has said that a TRP-driven business m

Governance Now Masterminds

Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter