I am willing to go hungry if there is no other way to stop this virus, but how will I explain that to my children? We heard these poignant words two days ago from Nemi Devi of Dumbi village in Latehar district, Jharkhand. Her son and husband, both migrant workers, are stranded far away. In village after village, many other women expressed similar worries. And that was even before the Prime Minister announced a drastic 21-day lockdown, from Wednesday.
The enormity of the coronavirus crisis is gradually dawning on India. For you and me, it is still in the future. But for many informal-sector workers and their families, the crisis is already in full swing: there is no work, and resources are running out. Things are all set to get worse as the privileged hoard with abandon and food prices go north.
Hopefully, the Central governments decision to impose a 21-day lockdown will prove right in due course. But the lockdown (a virtual curfew) is crying out for relief measures, including income support for poor families. As it happens, most of them already receive a limited form of income support: food rations under the Public Distribution System (PDS). Under the National Food Security Act, two-thirds of Indian families (75% and 50% in rural and urban areas, respectively) are covered. In most States, including the poorest, the PDS works not perfectly, but well enough to protect the bulk of the population from hunger.
The PDS is the countrys most important asset in this situation. It is essential to keep it going, even to expand it, in terms of both coverage and entitlements. Fortunately, India has gigantic excess food stocks. In fact, it has carried excess food stocks (more than twice the buffer-stock norms) for almost 20 years, and this is the time to use them. Nothing prevents the Central government from, say, doubling PDS rations for three or even six months as an emergency measure. That will not make up for most peoples loss of income, but it will ensure that there is food in the house at least.
Some bold steps are required to make food distribution effective. For instance, biometric authentication (fingerprint scanning) is best removed at this time it is a source of exclusion as well as a health hazard. Distribution needs to be staggered and tightly supervised, to avoid crowds and cheating at the ration shop. Dealers who are caught cheating must be swiftly punished. All this is well within the realm of possibility; the main thing is to release the stocks without delay.
Having said this, the PDS is not enough. For one thing, many poor people are still excluded from it. Large-scale cash transfers are also required, starting with advance payment of social security pensions and a big increase in pension amounts (the Central governments contribution has stagnated at a measly 200 per month since 2006). Here, one possible hurdle is the payment system. Many pensioners collect their pension from business correspondents (BCs) a kind of human automated teller machine (ATM), who dispenses money on behalf of the bank. The problem is, unlike ATMs, most BCs use biometric authentication rather than smart cards. And mass biometric authentication could accelerate the transmission of the novel coronavirus.
Ideally, biometric authentication should be abandoned for now. Even if it is not, many BCs may vanish for fear of infection (most of them are poorly-paid employees of poorly-regulated private entities). Under both scenarios, something has to be done to ensure safe crowd management at the bank. New payment arrangements are also possible. For instance, social security pensions could be paid in cash at the panchayat bhavan on a given day of the month, obviating the need for everyone to go to the bank: this has been done in Odisha for years, with good results. Cash could also be disbursed, with due safeguards, through anganwadis or self-help groups. Cash transfers need not be limited to social security pensions. Revamping the PDS and social security pensions would go a long way, but a significant proportion of vulnerable families are likely to fall through the cracks. Further, food rations may prevent hunger but people have many other basic needs; they will need money to cope with this spell of unemployment.
Coronavirus | Interactive map of confirmed coronavirus cases in India
There are several possible ways of extending the reach of cash transfers beyond pensions. For instance, money could be sent to the accounts of Mahatma Gandhi National Rural Employment Guarantee Act job-card holders, or Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) beneficiaries, or PDS cardholders. How these lists are best used and combined is a context-specific question, perhaps best handled at the State level (my sense is that in many States, the MGNREGA job-cards list is the best starting point).
Coronavirus | Pandemic fallout revives talk of universal basic income
These are just some examples of possible emergency measures. Many other valuable suggestions have been made, relating for instance to midday meals, community kitchens and relief camps for stranded migrant workers. The first step is to make relief measures an integral part of the lockdown plan. Failing that, it may do more harm than good. For one thing, a hungry and enfeebled population is unlikely to fight the virus effectively. A constructive lockdown should empower people to fight back together, not treat them like sheep.
Finally, Centre-State cooperation is essential. Many State governments have already initiated valuable social-security measures, but they are far from adequate. The Central government, for its part, has been struck with inexplicable paralysis on this. Adequate relief measures require big money (lakhs of crores of rupees) from the Central government. Implementation, however, should be led by the States. They all have their own circumstances and methods. The Central government is unlikely to do better on their behalf. If it foots the bill, that will be a good start.
Jean Drze is Visiting Professor at the Department of Economics, Ranchi University
You have reached your limit for free articles this month.
Register to The Hindu for free and get unlimited access for 30 days.
Find mobile-friendly version of articles from the day's newspaper in one easy-to-read list.
Enjoy reading as many articles as you wish without any limitations.
A select list of articles that match your interests and tastes.
Move smoothly between articles as our pages load instantly.
A one-stop-shop for seeing the latest updates, and managing your preferences.
We brief you on the latest and most important developments, three times a day.
Not convinced? Know why you should pay for news.
*Our Digital Subscription plans do not currently include the e-paper ,crossword, iPhone, iPad mobile applications and print. Our plans enhance your reading experience.
See the original post here:
Beware of a lopsided lockdown - The Hindu
- Income inequality in the United States - Wikipedia - January 5th, 2017 [January 5th, 2017]
- Basic Income as All-inclusive Democratic Subsidy - Basic Income News - February 7th, 2017 [February 7th, 2017]
- Basic income is superior to the job guarantee - Basic Income News - February 7th, 2017 [February 7th, 2017]
- CANADA: Over 10000 people have signed to support Basic Income - Basic Income News - February 7th, 2017 [February 7th, 2017]
- A response to 'The dangers of a basic income' - Basic Income News - February 7th, 2017 [February 7th, 2017]
- Ebay founder backs universal basic income test with $500000 pledge - Mashable - February 9th, 2017 [February 9th, 2017]
- OPINION: Human rights, basic needs - The Guardian - February 10th, 2017 [February 10th, 2017]
- Left-Wing America Steps Up Calls For Free Money, Jobs Guarantee - Daily Caller - February 10th, 2017 [February 10th, 2017]
- Guaranteed basic income proposed. - Bayshore Broadcasting News Centre - February 15th, 2017 [February 15th, 2017]
- World Economic Forum blog: Canada's basic income experiment will it work? - Basic Income News - February 16th, 2017 [February 16th, 2017]
- Expert: We Can Have Universal Basic Income and Jobs - Futurism - Futurism - February 18th, 2017 [February 18th, 2017]
- Ben Wray: Why both the right to work and the right not to work can set us free - CommonSpace - February 20th, 2017 [February 20th, 2017]
- VIDEO: Basic Income presentation at Meeting of the Minds Summit - Basic Income News - February 22nd, 2017 [February 22nd, 2017]
- Australia Needs A Universal Basic Income, And We Should Start ... - Huffington Post Australia - February 24th, 2017 [February 24th, 2017]
- A guaranteed income isn't the solution to widespread unemployment - Acton Institute (blog) - March 1st, 2017 [March 1st, 2017]
- Industry body bats for universal basic income for women - Times of India - March 8th, 2017 [March 8th, 2017]
- Basic Income in Argentine News - Basic Income News - March 10th, 2017 [March 10th, 2017]
- Basic-income guarantee is way to end poverty - Times Colonist - March 11th, 2017 [March 11th, 2017]
- Letters: Guaranteed income guarantees sloth - The Province - June 6th, 2017 [June 6th, 2017]
- Universal basic income: guarantee pay as way to improve quality of life - WatertownDailyTimes.com - June 6th, 2017 [June 6th, 2017]
- About That Universal Basic Income Idea - FITSNews - June 6th, 2017 [June 6th, 2017]
- Basic income plan doable: Northern study - The Sudbury Star - June 6th, 2017 [June 6th, 2017]
- Study of Iran's basic income shows it did not harm employment - Basic Income News - June 7th, 2017 [June 7th, 2017]
- Should all Americans receive a guaranteed income? - First Coast News - June 20th, 2017 [June 20th, 2017]
- Should all Americans receive a guaranteed income? - KPNX 12 News TV - June 21st, 2017 [June 21st, 2017]
- Should all Americans receive a guaranteed income? - 9NEWS.com - June 21st, 2017 [June 21st, 2017]
- Should all Americans receive a guaranteed income? - KHOU - June 24th, 2017 [June 24th, 2017]
- Net incomes under a Basic Income system - Basic Income News - July 1st, 2017 [July 1st, 2017]
- Basic Income Guarantee program moving forward for 2000 Lindsay residents - Kawartha Media Group - July 8th, 2017 [July 8th, 2017]
- UBI is just a bedtime story Elon Musk tells himself to help the super-wealthy sleep - Quartz - July 14th, 2017 [July 14th, 2017]
- NDP leadership candidate visits Guelph (8 photos) - GuelphToday - July 18th, 2017 [July 18th, 2017]
- Does Basic Income Solve Anything? Grasp the Arguments for and ... - Futurism - July 21st, 2017 [July 21st, 2017]
- Value in using tax system for basic income: Report - The Sudbury Star - July 21st, 2017 [July 21st, 2017]
- NEW ORLEANS, LA, US: Local basic income group begins to hold monthly meetings - Basic Income News - July 25th, 2017 [July 25th, 2017]
- More Calgarians struggle to feed their families over the summer months - CBC.ca - July 26th, 2017 [July 26th, 2017]
- Renfrew County dietitian recognized by board of health for provincial award - www.insideottawavalley.com/ - July 27th, 2017 [July 27th, 2017]
- EDITORIAL: Island needs dollars, not data, to cope with poverty - The Guardian - July 29th, 2017 [July 29th, 2017]
- DON PRIDMORE: Be careful what you wish for... - The Guardian - August 1st, 2017 [August 1st, 2017]
- Is a Well-Paying Job the next Entitlement Program? - Big Think (blog) - August 5th, 2017 [August 5th, 2017]
- Let's talk about a supplemental income - The Hindu - August 7th, 2017 [August 7th, 2017]
- Universal basic income proponent to speak in Boise - Idaho Press-Tribune - August 7th, 2017 [August 7th, 2017]
- Hashtag Trending Battery-free phone, Apple's China backlash - IT World Canada - August 10th, 2017 [August 10th, 2017]
- New Zealand Fabians host Basic Income panel - Basic Income News - August 13th, 2017 [August 13th, 2017]
- Universal Basic Infrastructure to help decrease India's poverty - Economic Times - August 14th, 2017 [August 14th, 2017]
- After lifting minimum wage, NDP government prepares to consult public about reducing poverty - Straight.com - August 16th, 2017 [August 16th, 2017]
- How Cities Can Rebuild the Social Safety Net - CityLab - August 24th, 2017 [August 24th, 2017]
- Food shopping at dollar stores | Brantford Expositor - Brantford Expositor - August 24th, 2017 [August 24th, 2017]
- 'Me too' and the basic income guarantee | Basic Income News - February 6th, 2018 [February 6th, 2018]
- Basic Income Now | It's time for dignity for all - March 17th, 2018 [March 17th, 2018]
- Is a Basic Income Guarantee the Right Choice for Ontario? - June 27th, 2018 [June 27th, 2018]
- The Ethics and Economics of the Basic Income Guarantee ... - September 18th, 2018 [September 18th, 2018]
- Basic Income Guarantee - Your Right to Economic Security ... - November 8th, 2018 [November 8th, 2018]
- Basic income could end food insecurity - Upstream - January 3rd, 2019 [January 3rd, 2019]
- 'Hartz reforms': how a benefits shakeup changed Germany ... - January 28th, 2019 [January 28th, 2019]
- Quick notes from Basic Income Guarantee Panel - falicon.com - January 28th, 2019 [January 28th, 2019]
- New book reviews the Namibian Basic Income pilot - Basic Income News - October 1st, 2019 [October 1st, 2019]
- Democrats focus on some Midwestern issues at Westerville debate, a departure from past three forums - cleveland.com - October 16th, 2019 [October 16th, 2019]
- Assembly Elections 2019: Why is the Congress evasive about NYAY scheme this poll season? - Moneycontrol.com - October 16th, 2019 [October 16th, 2019]
- Letter to the Editor: Universal basic income is inevitable as we head toward a fully automated society - The Post - October 16th, 2019 [October 16th, 2019]
- Democratic debate highlights: best and most substantive answers of the night - Vox.com - October 16th, 2019 [October 16th, 2019]
- Sanders: 'Damn right we will' have a job for every American | TheHill - The Hill - October 16th, 2019 [October 16th, 2019]
- 'Most Americans Don't Want To Work for the Federal Government' Says Andrew Yang, Trashing Federal Jobs Guarantee - Reason - October 16th, 2019 [October 16th, 2019]
- Basic Income as 40 Acres and a Mule - Basic Income News - October 16th, 2019 [October 16th, 2019]
- WAYNE YOUNG: Island voices must be heard - The Guardian - December 15th, 2019 [December 15th, 2019]
- The Guardian view on Finlands new PM: a different type of leadership - The Guardian - December 15th, 2019 [December 15th, 2019]
- 5 Psychological Forces That Turn People into Political Hacks | Aaron Pomerantz - Foundation for Economic Education - January 13th, 2020 [January 13th, 2020]
- P.E.I. groups say basic Income should not replace addictions, other supports - The Journal Pioneer - January 27th, 2020 [January 27th, 2020]
- Trump to let states overhaul Medicaid for the poor, seeking to change Obamacare without legislation - Washington Examiner - January 30th, 2020 [January 30th, 2020]
- Find ways to improve the revenue of farmers: Congress - The Hindu - January 30th, 2020 [January 30th, 2020]
- Eliminating Child Poverty With a Government Check - The New York Times - January 30th, 2020 [January 30th, 2020]
- Andrew Yang Expects 'Many' of His Supporters to Back Sanders in Iowa: We 'Have a Lot of Overlap' - Newsweek - January 30th, 2020 [January 30th, 2020]
- Life, Liberty, and Basic Income | Opinion - Harvard Crimson - February 29th, 2020 [February 29th, 2020]
- Lockdown to fight coronavirus is going to hit most Indian workers very hard - Livemint - March 26th, 2020 [March 26th, 2020]
- We face a war against coronavirus and must mobilise accordingly | Free to read - Financial Times - March 26th, 2020 [March 26th, 2020]
- Coronavirus: Iain Duncan Smith says dont bring in universal basic income during pandemic as it would be disincentive to work - The Independent - March 26th, 2020 [March 26th, 2020]
- Solidarity Economicsfor the Coronavirus Crisis and Beyond - The American Prospect - March 26th, 2020 [March 26th, 2020]
- I've lived through plenty of social shocks this time we must learn the lessons - The Guardian - March 31st, 2020 [March 31st, 2020]
- Common Arguments Against Basic Income Don't apply to the Emergency BI - Basic Income News - March 31st, 2020 [March 31st, 2020]
- How a Basic Income And Jobs Guarantee Can Save The Economy From Coronavirus - The National Interest - March 31st, 2020 [March 31st, 2020]
- Starvation in the time of Corona: momentum for the Universal Basic Dividend - DiEM25 - May 9th, 2020 [May 9th, 2020]