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GS Paper: Schemes For Vulnerable Sections

  • Universal basic income

    universal basic income Context

    • New evidence from two Kenyan counties shows that universal basic income  and other income supplements reduce hunger, illness, and risk exposure during crises.
    • Countries should consider building universal basic income that can be activated at short notice to help people weather unanticipated shocks.

    Why in news?

    • When the COVID-19 pandemic and the resulting recession pushed 120 million people worldwide into extreme poverty in 2020, many countries relied on social-protection measures to cushion the blow.

    What is social protection?

    • Social protection is concerned with preventing, managing, and overcoming situations that adversely affect people’s well-being.
    • Social protection programs that assist low-income families, insure against shocks, and break poverty traps offer a potential solution.

    universal basic income Universal basic income meaning

    • Universal basic income (UBI) is a model for providing all citizens of a country or other geographic area with a given sum of money, regardless of their income, resources or employment status.
    • The purpose of UBI is to prevent or reduce poverty and increase equality among citizens.

    What is social security?

    • Social securityin India includes a variety of statutory insurances and social grant schemes bundled into a formerly complex and fragmented system run by the Indian government.
    • These are retirement, healthcare, disability, childcare, gratuity and provident fund and insurance programs.

    What is insurance simple words?

    • An agreement by which a person pays a company and the company promises to pay money if the person becomes injured or dies or to pay for the value of property lost or damaged.

    Constitutional mandate

    • The Directive Principles of State Policy, enshrined in Part IV of the Indian Constitution reflects that India is a welfare state.

    Interesting fact

    India operates the widest spectrum of social security schemes which cater to the largest number of people than any other country.

    What are the benefits of Universal Basic Income?

    • Ending poverty: Advocates for UBI say that it could help bring everyone’s income above the poverty line.
    • Discouraging low wages: UBI would give employees enough security to have bargaining power.
    • Redistributing wealth: The economic growth of high-income countries is making the rich richer, but having very little effect on the working classes.

    Case study / value addition

    Namibia

    Namibia had a basic income pilot program between 2008 and 2009. Every resident of Otjivero-Omitara was entitled to 100 Namibian dollars ($6.75) every month. The program was funded by donors from around the world.

    Findings from the pilot program showed that cases of child malnutrition had dropped significantly while school enrollment went up. Also, social crimes such as theft had significantly dropped.

    universal basic income Negative implications of UBI

    • Induce lethargy: UBI removes the incentive to work, adversely affecting the economy and leading to a labour and skills shortage.
    • Inequity: Universal basic income would be just that: universal. That means that everyone, regardless of how poor, or rich, they were would get the same amount of money.
    • Huge Cost: The cost of implementing UBI could be huge. In the United States it’s estimated to be about $3.9 trillion per year.
    • Motivation to work: One concern is that UBI would incite millions of workers to stop working. If people aren’t working, there is less taxable income.

    Some government initiatives

    • National Pension Scheme for Traders and Self Employed Persons.
    • Pradhan Mantri Suraksha Bima Yojana.
    • Employees’ State Insurance Scheme.
    • Minimum Wages for various employment roles.
    • National Pension System.

    Conclusion

    • One of the major criticisms of poverty alleviation programs is significant leakages. UBI is seen as a more efficient alternative. Though UBI has many advantages, there are many practical challenges too. The idea should be to save costs with better targeting. This will help create the necessary conditions for higher growth which will decisively lift people out of poverty.

    Mains question

    Q. India operates the widest spectrum of social security schemes which cater to the largest number of people than any other country. Do you think they are enough? Discuss in context of rising demand for universal basic income and its pros and cons for ensuring social security.

     

     

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  • Forest rights act

    forest right actContext

    • There is a surge in demand by forest communities to not only access the resources of their habitat, but also to establish their ownership over forests as forest rights act in not meeting its objective.

    What is the news?

    • Residents of 18 villages in Chhattisgarh’s Udanti Sitanadi Tiger Reserve blocked the busy National Highway 130C.

    What tribal people say?

    • “We need forest resources for survival. Being a tiger reserve, we already lead a life with many restrictions. There is no power supply, access to grazing lands is non-existent and we cannot undertake construction works,” says Arjun Nayak of Nagesh, one of the 18 villages in Gariaband district.

    forest right actWhat is forest rights act 2006?

    • The Forest Rights Act (FRA), 2006 recognizes the rights of the forest dwelling tribal communities and other traditional forest dwellers to forest resources, on which these communities were dependent for a variety of needs, including livelihood, habitation and other socio-cultural needs.
    • It aimed to protect the marginalised socio-economic class of citizens and balance the right to environment with their right to life and livelihood.

    forest right actWhat are individual rights under FRA act?

    • The Act encompasses Rights of Self-cultivation and Habitationwhich are usually regarded as Individual rights.

    What are community forest rights under FRA act?

    • Community Rights as Grazing, Fishing and access to Water bodies in forests, Habitat Rights for PVTGs, Traditional Seasonal Resource access of Nomadic and Pastoral community, access to biodiversity, community right to intellectual property and traditional knowledge, recognition of traditional customary rights and right to protect, regenerate or conserve or manage any community forest resource for sustainable use.

    Case study / Value addition

    Chargaon village, Dhamtari district, Chhattisgarh

    Migration has drastically reduced due to economic benefits after getting CFRR. Success in improving quality of tendu leaves with better management practices, increasing income.

    forest right actIssues with Forest rights act

    • Non responsive states: The forest rights claims of these tribes and forest-dwellers are mostly rejected by the States.
    • Improper claims: Being poor and illiterate, living in remote areas, they do not know the appropriate procedure for filing claims.
    • Low awareness: The gram sabhas, which initiate the verification of their claims, are low on awareness of how to deal with them.

    forest right actWhy are forest rights important for tribals?

    • Justice: Aimed at undoing the “historic injustice” meted out to forest-dependent communities due to curtailment of their customary rights over forests, the FRA came into force in 2008.
    • Livelihood: It is important as it recognises the community’s right to use, manage and conserve forest resources, and to legally hold forest land that these communities have used for cultivation and residence.
    • Conservation: It also underlines the integral role that forest dwellers play in the sustainability of forests and in the conservation of biodiversity.

    Conclusion

    Despite the contentious and debatable nature of this law, the importance and necessity of the FRA, 2006 can not be negated completely. The law assumes even more significant importance when the country is a developing economy and is full-fledged following the path of capitalism, thus making it even more substantial to provide a redressal mechanism for vulnerable and marginalised communities and groups, such as the Adivasis and the other similar tribes, from the necessary evil of development and infrastructural growth while also safeguarding their traditions, heritage and identity that forms an important part of the nation’s cultural diversity as well.

    Mains question

    Q. There is a surge in demand by forest communities to not only access the resources of their habitat, but also to establish their ownership over forests. In this context analyse the issues with working of FRA 2006.

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  • Inclusive growth, social justice and income inequality

    Context

    • Key findings of the World Inequality Report 2022 related to India: National Income: In India, the top 10% and top 1% hold respectively 57% and 22% of total national income.

    What is inclusive growth?

    • Organization for Economic Co-operation and Development (OECD) defines Inclusive growth as the economic growth that is distributed fairly across society and creates opportunities for all. It refers to ‘broad-based’, ‘shared’, and ‘pro-poor growth’.

    What is social justice?

    • Social justice is the view that everyone deserves equal economic, political and social rights and opportunities. Social workers aim to open the doors of access and opportunity for everyone, particularly those in greatest need.

    Meaning of Inclusiveness

    • Inclusiveness is a concept that encompasses equity, equality of opportunity, and protection in market and employment transitions and is, therefore, an essential ingredient of any successful growth strategy.

    Need of inclusive growth

    • Complete development: India is the 7th largest by area and 2nd by population and 12th largest economy at market exchange rate. Yet, India is away from the development.
    • Income inequality: Low agriculture growth, low quality employment growth, low human development, rural-urban divides, gender and social inequalities, and regional disparities etc. are the problems for the nation.
    • Human development: Reducing poverty and inequality and increasing economic growth are the main aim of the country through inclusive growth.

    Need of social justice

    • Equality: We should shift from equality of outcomes to equality of opportunities.
    • Peace and Order: If the majority disregards smaller sections in the community, it drives them to rebellion.
    • Dignity: To ensure life to be meaningful and liveable with human dignity.
    • Mitigate Sufferings: It is a dynamic device to mitigate the sufferings of the poor, weak Dalits, tribal and deprived sections of the society.
    • Human Resources: It will help in the conservation of human resource by provision of health and education facilities.
    • Freedom to form political, economic or religious institutions: It will help to eradicate the challenges of caste system, untouchability and other discrimination in the society.

    Challenges before inclusive growth and social justice

    • Wage Gap: When it comes to wages in the workplace, there is a noticeable differentiation between men and women. According to the American Association of University Women (AAUW), in 2018, the gender pay gap from men and women for the same job was 82 percent. Stated simply, women make 82 percent of what men make doing the same work. This can be further broken down into a pay gap for minority men and women.
    • LGBTQ Oppression: When it comes to oppression and human rights, individuals of the Lesbian, Gay, Bisexual, Transsexual and Queer (LGBTQ) community face several forms of social injustice and oppression. For example, same sex marriages are outlawed in some states and countries. Additionally, transsexual students often face discrimination and bullying within school settings.
    • Education System: Globally, steps are being made to close the education gap between male and female students. However, there are still several areas around the world where girls may never set foot into a classroom at all. UNESCO notes that more than nine million girls never go to school, compared to only six million boys in areas of Africa.
    • Child Welfare: Social workers and human rights activists are working tirelessly to combat issues relating to children and their welfare. Despite their efforts, there are still several problems children face that are harmful to their health and mental wellbeing.
    • Forced Child Labour: Laws are in place around the world to ensure a safe work environment for children. These laws were drafted from historically harsh and dangerous working conditions for children. While many would like to believe that child labour is a thing of the past, it persists in some areas around the globe.
    • Child Abuse and Neglect: Thousands of children globally are being neglected. They’re also being physically, sexually and emotionally abused. The World Health Organization (WHO) reports that as many as a quarter of adults have been abused as children. This abuse has both social and economic impacts that include mental health problems.

    Government measures to address this challenge

    • SETU(Self Employment and Talent Utilization)
    • Skill India
    • Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
    • Pradhan Mantri Jan Dhan Yojana
    • MUDRA (Micro Units Development and Refinance Agency)Bank

    Way forward

    • Equality of opportunity is the core of inclusive growth, and the inclusive growth emphasises to create employment and other development opportunities through rapid and sustained economic growth, and to promote social justice and the equality of sharing of growth results by reducing and eliminating inequality of opportunity.

    Mains question

    Explain the term inclusive growth in brief. How we can achieve social justice through inclusive growth?

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  • [pib] SMILE Scheme for persons engaged in the act of begging

    The Ministry of Social Justice and Empowerment has formulated a scheme “SMILE – Support for Marginalized Individuals for Livelihood and Enterprise”.

    SMILE Scheme

    • This scheme is sub-scheme under the ‘Central Sector Scheme for Comprehensive Rehabilitation of persons engaged in the act of Begging’.
    • It covers several comprehensive measures including welfare measures for persons who are engaged in the act of begging.
    • The focus of the scheme is extensively on rehabilitation, provision of medical facilities, counselling, basic documentation, education, skill development, economic linkages and so on.
    • The scheme would be implemented with the support of State/UT Governments/Local Urban Bodies, Voluntary Organizations, Community Based Organizations (CBOs), institutions and others.
    • Scheme provides for the use of the existing shelter homes available with the State/UT Governments and Urban local bodies for rehabilitation of the persons engaged in the act of Begging.
    • In case of non-availability of existing shelter homes, new dedicated shelter homes are to be set up by the implementing agencies.

  • Need for social security to migrant and informal workers

    Context

    The migrants’ crisis after the two covid waves compelled policy-makers to make certain provisions for them in the schemes announced for the assistance of the poor.

    Supreme Court judgement on the issue

    • On June 29, the Supreme Court finally delivered its judgment on the plight of migrant labour.
    • The judgement was notable for two main reasons.
    • First, it recognised that there was the large-scale exclusion of migrant workers and other informal workers from existing schemes due to the lack of their registration and outdated eligibility lists.
    • It noted that no benefits will be denied to migrant workers for want of an Aadhaar card and that food assistance will be provided for migrants who were not covered by the National Food Security Act.
    • Second, it connected informal workers and migrant workers, both of whom experience exclusion, and mandated that the portal for registration of all informal/migrant workers should be fully operational before July 31.

    Advantages of providing social protection

    • Investment in social protection is not charity, it is an investment in workers’ productivity and in equitable growth.
    • Providing social protection is, as the UN mooted in 2009 when it spelt out the social protection floor (SPF) initiative after the global financial crisis, the surest way out of a crisis by boosting demand at the bottom of the pyramid.
    • The report of the Advisory Committee of the ILO, in which India was represented by its labour secretary, provides a strong rationale for instituting a universal SPF during economic crises.
    • As a result, all constituents of the ILO adopted Recommendation 202 on social protection floors at the International Labour Conference in 2012.

    Inadequate provisions by government

    • The Unorganised Workers’ Social Security Act, was approved by Parliament in December 2008.
    • But it lacks the mandatory elements of the NCEUS’s proposals and included neither a National Minimum Social Security Package, nor the provision for mandatory registration.
    • Estimates show that the central government’s expenditure on all major social protection programmes declined from 1.96 per cent of GDP in 2008-09 to 1.6 per cent in 2013-14 and to only 1.28 per cent in 2019-20.

    Way forward

    • The National Commission for Enterprises in the Unorganised Sector (NCEUS) had pointed out that the circular migrant workers were a disadvantaged segment among informal workers.
    • Comprehensive law: The NCEUS had advocated a comprehensive law for the protection of the rights of all informal workers, including migrants, home workers, and domestic workers.
    • Universal registration: NCEUS had also recommended a universal registration mechanism based on self-declaration, with the issuance of a smart social security card, and a National Minimum Social Security Package.
    • Guaranteed social security/social protection: We need the provision of a minimum level of guaranteed social security/social protection for all informal workers and their households within a definite time frame.
    • More public spending: Guaranteed social protection would involve a clear framework and a commitment to greater public resources being spent on social protection as a large class of workers in India do not have an identifiable employer and a contributory social insurance framework will not work for them.
    • Recommendation 202: Government should embrace ILO’s Recommendation 202 and work towards these in a time-bound manner.

    Conclusion

    To end the silent, painful, and enduring crisis for the workers, as well as the crisis for the economy, the government must urgently recognise the right to social security, embedded both in the Indian Constitution and international covenants.

  • Making social welfare universal

    The article highlights the need for universal social protection scheme in India and suggests a way to achieve it.

    Need for universal social security

    • The pandemic has revealed that leveraging our existing schemes and providing universal social security is of utmost importance.
    • This will help absorb the impact of external shocks on our vulnerable populations.
    • The country has over 500 direct benefit transfer schemes for which various Central, State, and Line departments are responsible.
    • However, these schemes have not reached those in need.

    Lessons from Poor Law System in Ireland

    • An example of a universal social protection scheme is the Poor Law System in Ireland.
    • In the 19th century, to deal with poverty and famine, Ireland introduced the Poor Law System to provide relief that was financed by local property taxes.
    • These laws were notable for not only providing timely assistance but maintaining the dignity and respectability of the poor while doing so.
    • They were not designed as hand-outs but as necessary responses to a time of economic crisis.
    • Today, the social welfare system in Ireland has evolved into a four-fold apparatus that promises social insurance, social assistance, universal schemes, and extra benefits/supplements.

    Issues with the existing social protection schemes in Inda

    • Existing schemes in India cover a wide variety of social protections.
    • However, they are fractionalised across various departments and sub-schemes.
    • This causes problems beginning with data collection to last-mile delivery.

    How universal system would help

    • Having a universal system would improve the ease of application by consolidating the data of all eligible beneficiaries under one database.
    • It can also reduce exclusion errors.
    • The Pradhan Mantri Garib Kalyan Yojana (PMGKY) is one scheme that can be strengthened into universal social security.
    • It already consolidates the public distribution system (PDS), the provision of gas cylinders, and wages for the MGNREGS.
    • Generally, social assistance schemes are provided on the basis of an assessment of needs.
    • Having a universal scheme would take away this access/exclusion barrier.
    • For example, PDS can be linked to a universal identification card such as the Aadhaar or voter card, in the absence of a ration card.
    • This would allow anyone who is in need of foodgrains to access these schemes.
    • It would be especially useful for migrant populations.
    • Making other schemes/welfare provisions like education, maternity benefits, disability benefits etc. also universal would ensure a better standard of living for the people.
    • To ensure some of these issues are addressed, we need to map the State and Central schemes in a consolidated manner.
    • This is to avoid duplication, inclusion and exclusion errors in welfare delivery.
    • The implementation of any of these ideas is only possible through a focus on data digitisation, data-driven decision-making and collaboration across government departments.

    Consider the question “What are the issues with existing social security schemes in India? What would be the benefits of replacing all these social security schemes with universal social security scheme?”

    Conclusion

    India is one of the largest welfare states in the world and yet, with COVID-19 striking in 2020, the state failed to provide for its most vulnerable citizens. This underlines the need for a universal social protection scheme in India.

  • Improving the diet of low income households to address malnutrition

    The article suggests the ways to deal with the menace of malnutrition in the country.

    Findings of the first phase of NFHS-5

    • Recently, the first phase of the NFHS-5 survey was published.
    • The deteriorating nutrition and anaemia indicators, especially among children is a cause for concern.
    • More deterioration in nutrition indicators following the COVID-19 pandemic is feared in the next phase of NFHS-5.
    • This deterioration would be on account of loss of livelihoods, reduced food consumption among the poor and disruption of government nutrition programmes.

    Challenges

    • Unlike a disease outbreak there may not be any popular demand to address malnutrition — the public, by and large, does not have adequate information about the damage malnutrition causes.
    • Hence, in the Indian context, it becomes the responsibility of the government/civil society to first provide information and awareness to the community about malnutrition.

    Steps to be taken

    • The government should examine the current nutrition-related programmes, and analysing why they are not able to reduce malnutrition faster.
    • Additional interventions could be introduced in pockets, identified as high-burden districts.
    • There should be different norms and more intensive interventions within the ICDS for these chronically malnourished pockets.
    • We need to know if the National Nutrition Policy 1993 is still operational.
    • If not, it seems that we are attempting to address this problem without a policy framework or plan of action.

    Addressing the root cause of malnutrition in India

    The following three deficits are the root cause of malnutrition in India.

    1) Dietary deficit

    • There is a large dietary deficit among at least 40 per cent of our population of all age groups, shown in— the National Nutrition Monitoring Bureau’s Third Repeat Survey (2012), NFHS 4, 2015-16, the NNMB Technical Report Number 27, 2017.
    • Our current interventions are not being able to bridge this protein-calorie-micronutrient deficit.
    • The NHHS-4 and NFHS-5 surveys reveal an acute dietary deficit among infants below two years, and considerable stunting and wasting of infants below six months.
    • Unless this maternal/infant dietary deficit is addressed, we will not see rapid improvement in our nutritional indicators.

    2) Information deficit at household level

    • We do not have a national IEC (information, education and communication) programme that reaches targeted households to bring about the required behavioural change regarding some basic but critical facts.
    • For example, IEC tells about the importance of balanced diets in low-income household budgets, proper maternal, child and adolescent nutrition and healthcare.

    3) Inequitable market conditions

    • The largest deficit, which is a major cause of dietary deficiency and India’s chronic malnutrition, pertains to inequitable market conditions.
    • Such market conditions deny affordable and energy-fortified food to children, adolescents and adults in lower-income families.
    • The market has stacks of expensive fortified energy food and beverages for higher income groups, but nothing affordable for low-income groups.

    Conclusion

    Raising the diet of our people from subsistence level to higher levels of nourishment by overcoming the triple deficit is the only way to improve the nutritional indicators of our population — amongst children, adolescents and adults.

  • Social sector: the post-Covid priority

    The article highlights the need for more focus on the social sector in the post-Covid society and suggest ways to do the same.

    Why focus on social sector

    • No country has progressed without investing in the social sector.
    • India is committed to achieving the Sustainable Development Goals (SDGs) by 2030, and social sector development is important in reaching them.
    • Progress in this sector has intrinsic (for its own sake) and instrumental (for higher growth) value.
    • It is needed even to build a $5 trillion economy faster.

    India’s social sector expenditure

    • India’s progress in the social sector has been much slower compared to its GDP growth.
    • In the social sector expenditure, the share of education as a percentage of GDP has been stagnant around 2.8-3 per cent during 2014-15 to 2019-20.
    • In the case of health, the expenditure as a percentage of GDP increased from 1.2 per cent to 1.5 per cent.
    • This is lower than the required 2-3 per cent of GDP.
    • An increase in health expenditure is also important to take care of the present and future pandemics.
    • There are supply side problems regarding the health infrastructure.
    • It is essential to have a huge increase in public expenditure on health and provide accessible, affordable and quality health coverage to all.

    Following are some key issues in the social sector India needs to focus on.

    1) The problem of undernutrition

    • The NFHS-5 report shows that malnutrition level has reduced marginally in a few states and has worsened in some other states between 2015-16 and 2019-20.
    • We can’t have a society with 35 per cent of our children suffering from malnutrition.
    • Apart from undernutrition, obesity seems to be increasing in both rural and urban areas.
    • There is a need to raise allocations for ICDS and other nutrition programmes.
    • The determinants of nutrition are agriculture, health, women’s empowerment, including maternal and child practices, social protection, nutrition education, sanitation and drinking water.
    • The Poshan Abhiyan is a good programme, but has to cover all these determinants with a multi-pronged approach to reduce undernutrition.

    2) Quality education

    • Quality education is key for raising human development.
    • The pandemic has enhanced inequalities in education and has revealed the widening digital gap.
    • Equality of opportunity in terms of quality education is the key for raising human development and for reducing inequalities in the labour market.
    • Several committees have recommended that public expenditure on education should be at 6 per cent of GDP.

    3) Social safety nets

    •  It is known that migrant workers were the most affected during the pandemic and that they do not have any safety nets.
    • There is a need to have safety nets like an employment guarantee scheme for the urban poor and facilities for migrants.
    • Similarly in rural areas, allocations to MGNREGA have to be increased because of the reverse migration.

    4) Programs for vulnerable section need to be continued

    • The government has done well in providing cooking gas through Ujjwala Yojana and electricity through Saubhagya Yojana, introducing programmes such as Swachh Bharat Abhiyan and initiatives for housing, financial inclusion and providing loans to the self-employed.
    • These programmes have helped the vulnerable sections, particularly women.
    • Another initiative of the government was to facilitate direct benefit transfers (DBT) for welfare schemes.
    • These initiatives have to be continued.

    Way forward

    • The government should give more focus to the social sector with better policies and implementation.
    • It has to work closely with the states in revitalising the social sector as major expenditures particularly on health and education are met by them.
    • The 15th Finance Commission also seems to have mentioned that health expenditure should be increased to 2.1 per cent of GDP.
    • The Commission may also suggest some incentives for states to increase health expenditure.
    • Both Centre and states should have a five-year vision on the social sector.

    Consider the question “No country has progressed without investing in the social sector. In the post pandemic world India needs to chart the plan to invest more in the sector. In light of this, examine the challenges in the social sector and suggest the ways to deal with them.

    Conclusion

    India, aspiring to be a global power, should have a harmonious and inclusive social sector development. This is also important for achieving the SDGs, reducing inequalities and building a $5 trillion economy faster.

  • Linking Aadhaar to residence for targeted aid

    The article suggests the provision for a safety net with geographic targeting in case of disasters as most disasters are location specific.

    Safety net in the U.S.

    • The US Congress enacted in March a Coronavirus Aid, Relief and Economic Security (CARES) Act to sends $1,200 to each individual below the income threshold of $75,000.
    • Nonetheless, as The Washington Post reported, even in October, millions of households were yet to receive their stimulus payments.
    • The tax authorities who were charged with disbursing the funds had no way of knowing how to send the cheques.
    • But the poor had to cross several hurdles to get this money and the computer system did not make it easy for them to register their claim.

    Safety net in India and issues with it

    • In contrast to U.S., 23 per cent of Indians living in Delhi-NCR received a payment of Rs 500 in their Jan Dhan accounts within three weeks of the lockdown being declared.
    • Farmers registered for PM-KISAN also received Rs 2,000 in their accounts immediately.
    • However, there were some issues for example, recipients of PM-KISAN were not amongst the poorest households, nor were these the households that were most affected by the COVID-related lockdown.
    • The PM-Kisan Yojana applies to landowners, thereby excluding agricultural labourers as well as the urban informal sector workers who were most affected by the lockdown.
    • Similarly, for the PMJDY payment, BPL and non-BPL households record similar receipt transfers.

    Twin challenges in designing social safety nets

    • Unless a registry containing data about individuals and their bank accounts exists, money cannot be transferred expeditiously.
    • 1) Registries based on specific criteria (for example, identified BPL households) may not identify individuals most vulnerable to crises.
    • 2) Factors that contribute towards alleviating poverty may differ from the ones that push people into it — indicating the challenge of targeting welfare beneficiaries in response to shocks.
    • About 40 per cent of the poor in 2012 were pushed into poverty by special circumstances and would not have been classified as being poor based on their 2005 conditions.
    • Such exclusion errors can get magnified in the event of large-scale disasters when using pre-existing databases, since many people are likely to fall into poverty from an economy-wide negative shock, leading to coverage errors.

    Way forward

    • Recent estimates from the World Bank suggest that 88 to 115 million people could slide into poverty in 2020.
    • These observations suggest that in a disaster response situation, we cannot rely on registries based on individual characteristics to identify beneficiaries.
    • Most disasters are geographically clustered.
    • If there is a way for us to set up social registries that identify individuals, their place of residence, and their bank accounts, these linkages can be used to transfer funds to everyone living in the affected area quickly.
    • Aadhaar linkages of individuals and bank accounts already exist.
    • If residential information in the Aadhaar database can be efficiently structured, this would allow for geographic targeting.
    • Issue of violation of individual privacy can be addressed by providing that such social registries store only basic information such as location, instead of more sensitive identifiers.

    Consider the question “Disasters underscores the importance of social safety nets. However, designing a social safety net that identifies and reach the vulnerable suffers from several challenges. What are these challenes. Suggest ways to address these challenges.” 

    Conclusion

    As we try to disaster-proof future welfare programmes, these are some of the considerations that deserve attention.

  • Ambedkar Social Innovation and Incubation Mission (PIB)

    Union Social Justice Minister launched the Ambedkar Social Innovation and Incubation Mission(ASIIM) under Venture Capital Fund for SCs, with a view to promoting innovation and enterprise among SC students studying in higher educational institutions.

    What is ASIIM ?

    • Under Ambedkar Social Innovation Incubation Mission initiative, one thousand SC youth will be identified in the next four years with start-up ideas through the Technology Business Incubators in various higher educational institutions.
    • They will be funded 30 lakh rupees in three years as equity funding to translate their start-up ideas into commercial ventures.
    • Successful ventures would further qualify for venture funding of up to five Crore rupees from the Venture Capital Fund for SCs.

    Venture Capital Fund for SCs:

    • The Social Justice Ministry had launched the Venture Capital Fund for SCs in 2014-15 with a view to developing entrepreneurship amongst the SC and Divyang youth and to enable them to become job-givers.
    • The objective of this fund is to provide concessional finance to the entities of the SC entrepreneurs. Under this fund, 117 companies promoted by SC entrepreneurs have been sanctioned financial assistance to set up business ventures.