Showing posts with label NREGA. Show all posts
Showing posts with label NREGA. Show all posts

Monday, March 18, 2013

For Feeding Mouths Aplenty

While India continues to reel under The Effect of rising food Prices & Increasing hunger, The Proposed National Food Security Act can be a Panacea. But with a narrow minded Focus & Select targets, The Upcoming Legislation might end up Nowhere & can worsen The Delivery of food grains to The Hungry.

John Van Hengel, born 1923 in Waupan, Wisconsin, was an ordinary man with all vices and sins – as per America’s Second Harvest, a company founded by Hengel himself. He undertook various occupations; from being an ad man to a beer truck driver in Hollywood, married a model, divorced her and underwent spinal surgery post a deadly fight. It was while working at a soup kitchen post his surgery when he met this mother of 10 and her dying husband. She survived by rummaging in food bins and was desperate for a place to both deposit food and check it out – like a bank. Hengel, hooked to the idea, persuaded a grocery store manager to donate surplus food. From a defunct church bakery selling more than 250,000 pounds of food to 36 charities in its first year, America’s Second Harvest was born in 1976, the world’s first Food Bank Chain. For a country like the US with around 20 million people belonging to households suffering from ‘very low food security’ (households where at least one person remains hungry during a year), food banks have been a revolution. But for India, where ITC pioneer Sam Pitroda recently unveiled his ambitious food bank scheme, the 250 million plus hungry population might prove too Herculean a task. The only light at the tunnel end is the National Food Security Bill, touted to hit harder at hunger than NREGA did at poverty. But a clichéd narrow focus and lack of holistic research-backed provisions endanger the entire system of fighting hunger in India.

Despite numerous measures and programmes – Targeted PDS, Mid-Day Meal Scheme, National Food for Work Programme, Antyodaya Anna Yojna and Integrated Child Development Scheme – the number of undernourished people increased from about 210 million in 1990-92 to 252 million in 2005-06. India houses around half the world’s undernourished children. Also, there has been a general decline in per capita calorie consumption in recent decades. Grain mountains and hungry millions continue to coexist. According to the Global Hunger Index 2009, India is ranked 65 among 84 developing countries – worse than nearly 25 Sub-Saharan African countries and all of South Asia, except Bangladesh. The reason – all government schemes have been victims of narrow minded targets, rampant corruption and perpetual battles between central and state government owned entities.

The Targeted Public Distribution Scheme (TDPS) was introduced in 1997 as a revised version of PDS, allegedly serving only the urban poor and being a miserable failure to effectively serve the poorer sections of the population. But even this has slowly bled from the entangled web of poor targeting, high administrative costs, and low effectiveness of the programme. The NFSA, if enacted, mandates the provision of a minimum of 25 kg of rice or wheat to Below Poverty Line (BPL) families per month at Rs.3 per kg. The TDPS targeted same at Rs.4.15 per kg for wheat and Rs.5.65 per kg for rice. But as you go into the depth of the meaning behind each word, the proposed legislation faces sure shot stumbling blocks with the debate regarding the definition of hunger and hungry and the number of BPL families.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

Monday, July 30, 2012

Is India on The Verge of an Export Miracle?

When bad news comes cascading down like torrential rainfall during monsoon, it is very easy to ignore good news. Something similar is happening in India where scams, scandals, political logjams and widespread fears of an economic slowdown – even as inflation rages on – have become the staple of media outlets. So it was not very surprising when the phenomenal growth delivered on the export front was reported in a matter of fact manner, and then consigned to that dustbin called stale news! But I personally think that the export performance delivered by the Indian economy is not just a silver lining; it holds the promise of transforming India’s economy and its employment generation potential in this decade.

The facts first. In June 2011, the value of exports from India virtually touched $30 billion – up more than 46% compared to the same month in 2010. If you take the first quarter as a whole, the value of exports from India approached $80 billion – an increase of about 45% as compared to the April-June quarter last year. Even die-hard pessimists now agree that Indian exports will cross $300 billion in the current fiscal. This spectacular performance despite two powerfully inhibiting factors: the uncertainty and continued sluggishness in the global economy, particularly Europe and North America and the high rates of inflation in India that should make Indian exports less competitive.

There are two potentially game changing trends visible if you examine the trade figures a little closely. The first: Europe and America now account for just one-third of the total value of exports from India. Clearly, Indian exporters have been smart and have diversified their portfolio of destinations. The second, even more important trend is the fact that exports of products were double the exports of services in the April-June quarter. For long, everyone seems to have swallowed the myth that India will forever be the back office of the world, even as China continues to be the factory. There definitely was some merit in that argument in the past, but you cannot deny facts which indicate a startling structural change in the Indian economy. The fact is that manufacturing is growing and at a healthy rate. This is absolutely crucial for employment generation.
Just one policy announcement from the Prime Minister Dr. Manmohan Singh can make this export miracle a genuine and sustainable reality for this decade and beyond. Labour reforms in India have been largely stuck for about two decades because they are politically sensitive and pampered and powerful unions (that account for just about 3% of the total work force in India) have stalled them. Yet, imagine what could happen if Dr. Manmohan Singh announces that his government will guarantee the salaries of workers in key export industries like textiles, readymade garments, leather and others? The actual cost to the government will not be huge; but there will be a massive increase in investments in these key sectors to propel exports. Just the number of new jobs that will be created as a result – along with schemes like NREGA – will ensure that the UPA will continue to lord it over India.