CUTS IN MEDIA-June 2009
‘Climate change would reduce staple crop
yields in South Asia’
Usage of Right to Information is Necessary:
Right to Information is Necessary for Clean
Knowledge of Right to Information is
Necessary for Benefits of Schemes
Workshop against changes in RTI Act
RTI is under Threat: Shailendra Gandhi
Selection Process should be Transparent
Concern over Amendments to RTI Act
Youth unwilling to take responsibility to
The search for the Holy Grail of inclusive growth, which is to say, getting resources to those who need it the most, without bureaucratic sloth and endemic corruption, has intensified after Elections ’09. Thanks to the political gains from the national rural employment guarantee scheme (NREGS) and the urgency to contain a ballooning subsidy bill, there will soon be an array of schemes to put government money directly into the hands of below-poverty-line (BPL) families. The obvious advantage such schemes can hold—besides the potential for cementing a political constituency among India’s 300 million-plus ‘poorest of the poor’—has intensified the search.
So, will conditional cash transfers yield better results in poverty reduction compared to the present welfare and subsidy schemes? Predictably, there are divergent views on the impact of an incentive provided to the household or individual for fulfilling specific conditions (such as participating in a public works programme, minimum attendance norms for school-going children, shedding gender bias, undergoing job training, and so on). In short, it’s an incentive—be it via cash or bank accounts or vouchers or smart cards—that directly reaches the poor, and is used (theoretically, at least) to get them benefits.
India’s shift towards a demand-driven conditional cash transfer mode of poverty reduction is not new, argues Montek Singh Ahluwalia. "In the last few years, in a sporadic way there has been a transformation of many anti-poverty schemes to social security schemes," says the man tipped to continue as deputy chairman of the Planning Commission. The NREGS, health insurance for the unorganised sector including migratory labour, cash instalments to build a house—all signify the shift.
In the Eleventh Plan alone (2007-12), a provision of Rs 9,000 crore has been made for improving health, nutrition and education outcomes through conditional cash transfers. In the next few years, more conditional cash transfer- designed programmes on the lines of the NREGS are likely to be rolled out.
"We have cash transfers in mind in four different forms, supplementing what the BPL families are already receiving. It’s not just PDS, but more than that," says Santosh Mehrotra, senior consultant, Planning Commission, who is finalising the draft proposal on cash transfers. He does go on to add that these schemes are contingent on universalising bank or post office accounts. Thanks to NREGS, massive progress has been made since April last year when payments through banks or post offices began. It’s another matter that 99 per cent of the NREGS account-holders maintain zero bank balance, states Omprakash Badgujar of the Gurgaon Gramin Bank branch in Malab village of Haryana.
If Mehrotra’s schemes get the nod, banks and BPL families can look forward to more cash flow into their accounts.
For the first five years, BPL families will be given Rs 500 per month. However, only half of this income will be available to the family for use as they like. The rest will remain in the bank account to be built as a corpus and will act as collateral for loans, and in case of dire need, for repayment of bank loans. The second is a healthcare scheme: Rs 500 monthly payment to pregnant women three months prior to delivery and Rs 1,000 per month post-delivery for three months. This scheme would seek to encourage better mother- and child-care through institutional delivery, immunisation and nutrition supplements.
The third scheme is supposed to help youth undertake skill development courses at itis or any other institute or even learn the family trade. Finally, the fourth scheme envisages providing cash or coupons to BPL families to buy foodgrains from any place of their choice. Clearly, the state has ambitious plans to funnel cash directly into the hands of the poor.
Is it really a more efficient delivery system? Past experience suggests that it is. Does it fulfil the chosen objectives? Well, there are divergent views here.
Globally, the history of change from poverty programmes to demand-driven conditional cash transfer is traced to Mexico’s financial crisis in 1994. It was widely felt that the political perception of well-being could be achieved by replacing most of the existing subsidy schemes, which were only feeding leakages, with the introduction of direct cash transfer, which had a reasonable success. Other countries that have used the transfer route include Brazil, Bangladesh, Russia and South Africa.
Recent studies of CCT programmes in over 70 countries by the World Bank and undp India has revealed that provided there is social infrastructure support and transparency, the cash or coupon (lately smart card) delivery mode can be more cost-effective. Unlike the current scenario where 85 per cent of allocated funds is being eaten up by the administrative machinery or corruption, CCT delivery cost averages 6-12 per cent. That’s a huge potential saving considering India is among a dozen countries spending over 2 per cent of its GDP on social security and subsidy schemes.
Seen in this light, the Telugu Desam Party’s election promise of offering Rs 1,000 per month to BPL families does not seem out of tune with proponents of demand-driven social security for the poor.
Yet, despite the cost advantage, there are continuing apprehensions about corruption. As Geeta Chatte of Khewda village of Haryana complained to Outlook, "We are continuing to get less than our dues" for NREGS work. This perception is widespread. Explains Pradeep S. Mehta of CUTS International, "Through conditional cash transfer, the subsidy will be more effective as against indirect subsidy with its high level of seepage. That is not to say leakage will not happen in direct cash transfer."
However, Outlook’s interactions with NREGS workers revealed that, despite some leakage, there is more satisfaction than grouse. Sure, travel and paperwork is cumbersome for poor people and time-consuming for bankers. But the picture is in contrast to many of the current subsidy schemes. Official studies show that currently hardly 27 paise out of Re 1 spent by the government on providing subsidised food to the poor reaches the target families. As Indian Oil chairman Sartak Behuria points out, over 35 per cent of the 6-7 million tonnes of subsidised kerosene sold gets diverted for adulteration of transport fuel.
Professor Bhaskar Dutta of Warwick University, who has worked in the field of targeted food subsidies, stresses that there is no perfect delivery method as there are potential problems with every conceivable scheme. On the positive side, "provided BPL families have been identified (and that itself is a huge assumption), conditional cash transfer does ensure that the cash reaches the intended beneficiaries.
The downside is that the cash may be blown up in buying alcohol instead of food," says Dutta.
Also, development consultant Shagun Mehrotra feels that despite the many advantages of cutting out bureaucratic hurdles and corruption, CCT does not address "ground issues of inequality and exclusion which are barriers to many BPL families accessing healthcare and education". Apart from social exclusion, currently many of the BPL families are being kept away from various schemes due to faulty identification and corruption. Later this year, a fresh national BPL census hopes to plug many of the anomalies through greater use of technology. Hopefully, we will have computers—and not vested interests—deciding the BPL beneficiaries for different schemes.
The Delhi government, for one, has already started the BPL census process prior to issuing smart cards. Having studied various examples in the country and overseas, Delhi CM Sheila Dikshit feels rules should be relaxed to reach out to people as "a five per cent corruption rate is tolerable if it helps more people.
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The campaigners for transparency and right to information are worried about the proposed amendment to the country’s path breaking law, the Right to Information Act 2005, diluting its effectiveness. If the United Progressive Alliance (UPA) Government goes ahead with the changes, as announced by President Pratibha Patil in her address to Parliament on June 4, nothing good is to come out of it, they insist.
After the Magsaysay award winner Aruna Roy last week expressing serious doubts about the intention behind the move to amend the existing Act, it was the turn of Shailesh Gandhi, Commissioner with the Central Information Commission, to give out similar sentiments here on Saturday. “We have to fight this move as it is not an attempt to improve upon the existing law,” said Mr. Gandhi, speaking as the chief guest at the launch of an orientation workshop on the second phase of the RTI project being implemented by the Jaipur-based NGO, CUTS Centre for Action, Research and Training(CUTS CART).
“My fear is that with the amendment the present provision in the law to provide copies of file noting would go. In the next 100 days this can happen and the people have to remain vigilant against any such move,” said Mr. Gandhi, a businessman turned RTI activist. “People are only familiarizing themselves with the existing law and changes in them would only complicate the situation and obstruct the implementation of the law,” he warned. “The Governments in general are no great advocates of right to information,” he pointed out.
As such education of the masses was taking considerable time in making the law more effective, Mr. Gandhi, who created a record of sorts in clearing the pending applications with the Central Information Commission, said. “What I have come across while dealing with the applications is that many of the applicants do not know how to seek information. Perhaps people should be taught to be more focused in their queries,” he felt.
“In three years the Act has made a big impact. However it should be pointed out that initially only 15 per cent in Rajasthan knew how to file an application under the law to get information. With advocacy their number has gone up to 35 per cent in the past three years,” observed George Cheriyan, director CUTS CART.
The collective concern of the civil society organizations (CSOs) was about the dilution of the provisions of the Act to suit the powers that be, he said.
Harinesh Pandya of JANPAT, a network of civil society organizations in Gujarat, said RTI had rekindled a new hope in the minds of the public on the effectiveness of the system. The law had not only opened up immense possibilities for the ordinary citizen but also was helping the bureaucracy in withstanding undue pressure from the politicians, he pointed out.
The gathering , which included grass root level of RTI activists and CSOs from Rajasthan unanimously resolved to raise their collective concern to the Government of India over the announced ‘suitable amendments’ to the RTI.
It also asked the Rajasthan Government to take necessary steps for the effective implementation of the RTI act by appointing required number of Information Commissioners and by providing required infrastructure.
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About 85% of urban educated youth shrug off any responsibility of saving the environment even though 90% of them believe that small efforts at individual level could go a long way in protecting the planet.
The stark reality was exposed in a survey conducted on the eve of the World Environment Day(WED) by CUTS-Centre for Consumer Action Research and Training, a Jaipur-based consumer advocacy group. The survey was conducted among people within the age group of 18-25, with a girls to boys ratio of 44:56, to assess the awareness level of the youth about environment and protection.
The findings have raised several questions about the numerous efforts being made to protect the environment. Nearly 90% of the youth of Jaipur believe that among all human activities, excessive use of motor vehicles is primarily responsible for destroying the environment. They also believe that utilization of public transport can be an effective measure to preserve the depleting non-renewable resources. However, 69% of the them avoid public transport due to its poor standard while 31% do so due to improper connectivity within the city.
Time and again, various organizations have carried out awareness activities to discourage reckless use of plastic bags and 97% of the youth believe that plastic bags should be completely banned. However, 52% of them accepted feeling awkward and 41% never thought of carrying their own bags while going to the market.
The survey also illustrated a 100% denial in using solar power as an alternative source of energy due to its high cost and unavailability in the market even as Rajasthan boasts of one of the best solar radiation utilization programme, both in the country and the world. This is a warning for the government to intensify its efforts to generate more viable and cost- effective alternative sources of energy.
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