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The obligation to offer such benefits to the group as a whole is an obligation that falls on society in general, not on any particular person. For it is society that through its established social practice brought upon itself the obligation. ” Paul w. Taylor. Reservation in Indian law provides for a quota system whereby a percentage of posts are reserved in employment in Government and in the public sector units, and in all public and private educational institutions, except in the elisions/ linguistic minority educational institutions, in order to mitigate backwardness Of the socially and educationally backward communities and the Scheduled Castes and Tribes who do not have adequate representation in these services and institutions.
The framers of the Constitution believed that, due to the caste system, CSS and the SST were historically oppressed and denied respect and equal opportunity in Indian society and were thus under- represented in nation-building activities. It is time and again felt that the affirmative approach need not be in the form of reservation and therefore, he government of India has announced the direct benefits transfer initiative with the aim of ensuring better and timelier delivery of benefits to the people. This marks a paradigm shift, where the State is explicitly taking responsibility to ensure that welfare schemes and basic entitlements reach the intended beneficiaries much more effectively than at present. In this time government start re-looking at subsidies and the whole delivery mechanism.
The goal is that subsidy will be given to only who deserves it and only the deserving gets it. Many glitches will arise in rolling out such a scheme. Some pilot projects have already tested different transfers in different areas, and corrected the glitches. But more experimentation is needed. The danger is that the scheme will quickly be extended to the whole country in half-baked shape simply to help the election prospects of the Congress. This submission deals with the analysis of the scheme, whereby the examination of the scheme with the lens of the Affirmative action approach will be done, along with noting the practical problems while implementing the scheme.
Considering Cash benefits as a stand-alone policy, the submissions entails to discuss the eroticism and their gravity thereof, the advantages of the scheme for target class. The submissions aims to analyze the Direct cash benefit policy, whether it an actual benefit to the poor, whether it is actually an affirmative action or not? Statement of Problem Whether Direct Cash Transfer Scheme of the Government is an effective affirmative action to help the lower strata Of the Indian society? Objective of the study 1 . To study the Direct Cash Transfer Scheme of the Government. 2. To analyze the Direct Cash Transfer Scheme of the Government as an effective affirmative action approach. 3. To find out the ambiguities and fallacies in the Direct Cash Transfer Scheme and further suggest remedies for the same.
Hypothesis That the Direct Cash Transfer Scheme of the PUPA-II Government is an effective and efficient affirmative action approach and will prove as a relief to the poor in the short as well as long run. Method of Study Doctrinal method of study will be followed. The author tried to cover the news articles, blobs, opinion stands and other secondary resources to gather information about the Direct Cash Transfer Scheme Of the Government. Review of Literature The author referred to the available material on the Direct Cash Transfer Scheme of the Government in books, articles, blobs, news papers clippings. Also, the understanding of the affirmative action approach was derived from the articles published by eminent Universities.
Affirmative Action India is divided into many endogamous groups, or castes and sub-castes, as a result of centuries of practicing a form of social hierarchy called the caste system. Proponents of reservation policy says that the traditional caste system, as it is practices, leads to severe oppression and segregation of the lower castes and limited their access to various freedoms, including education. Caste, according to ancient scriptures such as “Mann Smite”, is ‘Varnish Dharma”, which translates to “offices given according to class or occupation”. “Verna” in Varnish (Verna + Ashrams) is not to be confused with the same word meaning ‘color’.
However, to understand the wide concept of affirmative action, it should not be limited to mean reservation policy. Affirmative Action is a policy in which an individual’s color, race, sex, religion or national origin are taken into account by a business or the government in order to increase the opportunities provided to an underrepresented part of society. Affirmative action is designed to increase the number of people from certain groups within businesses, institutions and other areas of society in which they have historically had low representation. It is often considered a means of countering historical discrimination against a particular groups .
Affirmative action could be understood as an active effort to improve the employment or educational opportunities of members of minority groups and women, a similar effort to promote the rights or progress of other disadvantaged persons. Proponents of affirmative action can adopt one of three standard response’s, which we label as (a) net infinite, (b) merit as fraud, and (c) institutional mission. First, and most conservative, net benefit concedes that affirmative action sacrifices merit but suggests that the social justice and social stability benefits of affirmative action outweigh the efficiency costs. ” This proponent of affirmative action weights the benefits and costs differently from a utilitarian opponent of affirmative action.
Of course, opponents of affirmative action who view color-blindness and/or selection by merit as moral or constitutional imperatives claim to be unwilling to engage in such policy trade-offs. Second, ND least conservative, merit as fraud challenges prevailing merit definitions as fundamentally biased. On this view, for example, standardized tests do not examine for anything resembling intelligence or aptitude; rather, they merely refry past privilege. Those with the most resources determine the nature of such tests to keep power within traditionally privileged circles. Even if such an effort is not conscious; it nonetheless emphasizes a self-privileging view Of merit.
Third, situated between these two extremes, Institutional mission emphasizes the relational nature of merit: what counts as merit depends on he goal. ‘AAA brilliant mathematical ability is not merit if the goal is to win a full-contact cage match. This critique recasts the debate on merit as a debate on institutional mission. For institution of higher education, is the goal to admit the most intelligent as defined as the best test takers? Or is its mission broader, for example, including the goal of training future leaders? If it includes the latter, then a university must seek “merit” in evidence likely to predict a future leader, even at the expense of standardized test scores or grades. Understanding the Direct Cash Transfers Scheme
Decision was taken by the Committee on Direct Cash Transfers headed by the Prime Minister that Direct benefit transfer will be rolled out from January 1, 201 3 in 43 identified districts of the country. India plans to eventually implement cash transfers of all subsidies and social welfare payments directly into the bank account of beneficiaries. The ultimate aim of the scheme is to ensure direct benefit go to the individual’s bank account without any delay and other hurdles. The Government will transfer cash benefits like scholarships, pensions, MANAGER wages etc. Directly to the bank account or cost office account of identified beneficiaries under direct transfer program.
The scheme is not intended to substitute the public services which would continue to take place as per normal delivery channels. The scheme is operational now, however the Prime Minister had recently show his bigger concern for its poor implementation. Under the cash transfer programmer, the government department which administers a particular welfare scheme has to give the name of the beneficiary along with his or her account and Dharma number to a bank. The bank sends these details to the National Payment Corporation of India, or UNPIN. UNPIN then credits the bank in which the beneficiary has an account. The beneficiary can then withdraw the money directly from the bank, or from an automated teller machine or with the help Of business correspondents.
The scheme is connected, better defined, and based on government’s universal Diehard scheme, providing unique identification number to each citizen in the country. The roll began on 1 January, 2013 the selection was based on the coverage of bank accounts and Diehard. Under this, the beneficiaries are identified based on the Dharma numbers issued by the UDDI, based on a person’s biometric details such as engineering and iris scans. In a step towards that, the government started a pilot direct cash transfers programmer on 1 January 201 3 in 20 districts for 26 such Ernest. With-drawl scheme: Initially beneficiary will be able to withdraw from their bank branches or Tams or business correspondents (BC) wherever they exist.
The system of Micro- TAMS and multiple Bcc will roll subsequently with full inter;operability. Banks are being requested to increase their coverage by expanding branches to introduce banking services to every 1000-1500 through SC. International best practices: Several countries including Jamaica, Philippines, Turkey, Chile, Mexico, Indonesia, South Africa, Morocco and United States have adopted this system in the form of Conditional Cash Transfer (CT). Under such programmer, direct cash is provided to the poor families on the condition that it is used for verifiable investments in human capital, such as regular school attendance or for attaining basic nutrition or health care.
The largest, most successful and the most celebrated is the Bolas Familial Programmer (BP) in Brazil that covered close to 100 percent Brazier’s poor in 2007. Under this programmer, he government transfers cash straight to a family subject to conditions such as school attendance, nutritional monitoring pre-natal and post-natal tests. The entire system is managed through efficient targeting, disbursement and regular monitoring of the disbursed funds. The scheme was supposed to be launched in phases- the first phase of the roll, which was meant to cover 51 districts and 34 welfare schemes is scaled down to cover just 20 districts and 7 schemes. Gaps in infrastructure, like bank accounts and beneficiary lists, has forced the government to pare down the project.
In the first phase, erect benefit transfer was restricted to pensions and scholarships, excluding other programmer such as the national rural jobs guarantee scheme and food subsidies. The government plans to eventually move these big-ticket schemes to the direct benefit transfer platform. Benefit Transfer- Phase I Schemes Areas of implementation 1. Post-matrix scholarship for SC students 7 Districts, 48000 beneficiaries (Butchery/ Nature/ Unshared/ Did / Aftermath Sahib’s/ Surpassed/ East Goodyear 2. Pre-metric scholarship for SC students 1 District, 24000 beneficiaries (East Goodyear) 3. Post -metric scholarship for BBC students Districts, 105000 beneficiaries (Butchery/ Nature/ East Goodyear/ Liar/ Adman/ North Ago) 4.
Post- metric scholarship for SST students 3 Districts, 55000 beneficiaries (Tumor/ Wanda/ Hard) 5. Nadir Gandhi Matrix Ashtrays Yoga 3 Districts, 4800 beneficiaries (Dharma/ Butchery/ NW Delhi/ North Goal Imperative) 6. Danishes Scheme 1 District, 8000 beneficiaries (Aftermath Sahib’s) 7. Stipend to trainees under the scheme of SC/SST job seekers through coaching-UCM-guidance and vocational training 10 States, 650 beneficiaries (Karakas/ Kraal/ Harlan/ Punjab/ Delhi/ Madhya Pradesh/ Restaurants/ Andorra Pradesh/ Maharajah’s/ Shorthand The government is in the process of finalizing the list of districts where the second phase of the roll of direct benefit transfers will happen.
Historical Development of Direct Cash benefit In an illuminating analysis of the pre-industrial revolution development of Britain, establishment of limitability of land in encouraging ‘labor mobility and emancipation from a peasant mentality of over-attachment to land as the only form of security’ the entitlements of poor laws were portable, so that, wherever they moved, individuals had the certainty of being provided for. This enabled employers to adopt the most efficient production technologies, even if that meant the displacement of workers, ‘without provoking the same fears and strength of protests from those adversely affected, as such attempts elicited on the continent’ Not only were the migrating individuals protected by the universal entitlements, those left behind in rural areas could also draw on parish benefits. He aged, poor, disabled and widowed had an alternative source of support in this recognized right to call on parish fund, obviating the absolute necessity to retain close contact between the family generations’ This system of social security depended on the prior existence of arsenal identities, established in England from before the reign of Elizabeth. The combination of registered identity along with universalism and portable social protection, softened the transition from small-holder peasant to capitalist economy. Secrete argues that it was this social protection system that enabled England, before the Industrial revolution, to adopt the most efficient organic agricultural techniques and thus pull ahead of the Netherlands and coastal China in agricultural productivity. In light of the above analysis. We can argue that the ACID Dharma registration system is important in establishing the base for administering a national social minimum.
This is necessary to promote the creation of a universal portable social protection system which could well promote acceptance of the process of creative destruction. INDIA Indian’s growth story since economic reforms initiated in 1991 reveals a direct structural shift from primary to the tertiary sector. This shift deviates from well established linear and structural growth/development models that highlight growth path from primary to secondary and then to tertiary sector. The usual structural shift to a highly productive skilled tertiary sector leaves he majority of the unskilled and semi-skilled labor force with the primary sector in India.
This has a wider implications on employment, standard of living, poverty, inequality and the overall well being of the majority. The growth story so far has been characterized as job-less and non-inclusive with structural imbalances, unemployment, inequality and distress of low-income households in the Indian economy. Today primary sector contributes only about 15 percent of GAP but absorbs around 55 percent of the total labor force resulting in huge unemployment with low and certain income creating high inequality and incidence of poverty in India. Though Indian’s overall growth and also per capita income growth story has been spectacular compared to the pre-reforms period, the employment has not as responsive to the rise in per capita income.
Absorbing unskilled and semi-skilled workers in India without manufacturing sector growth or improving human capital through education, health, etc looks difficult. These issues are time consuming but there are efforts being made to resolve them. To solve the problem Of poverty and inequality in the Indian economy, the government has been trying to address these issues by extending the exiting welfare schemes and initiating grand social programmer such as national rural employment programmer, mid day meals, right to education etc. Further government is also plan inning to implement right to food programmer which will entitle families living below poverty line to get food at subsidized rates.
All these welfare schemes along fertilizer subsidy have been increasing steadily leading to a major fiscal burden on the economy. The major objective of these welfare programmer is to provide basic and essential goods and services to the poor. However, India has long been dogged by corruption in provision of basic goods and services to the poor. The subsidies meant for the poorer sections constitute around 2 percent of the GAP which is a huge amount but the actual money reaching the poor is negligible. For example, it’s an established fact supported by evidence both by World Bank and planning commission that a little more than 50 percent of food under public distribution system (PDP) is not reaching the targeted beneficiaries.
In this context, for quite some time, the policy makers have been mulling over the idea of Direct Benefit Transfers (DEBT) particularly since 2005. The objective of DB T is to improve efficiency in delivery of welfare subsidy directly to the inefficacy thereby reducing the increasing subsidy burden on the economy. The subsidy regime in India so far has been criticized on the ground that the administrative cost of subsidy delivery is high and characterized by substantial leakages and corruption. Finally, the government initially planned to implement DEBT in 51 districts from January 1st 2013 covering welfare schemes to start with. However, it has been implemented in 20 districts covering only seven schemes to begin with due to lack of appropriate infrastructure to implement DEBT.
The intention is to directly give cash benefit o poor rather than giving subsidy to reduce leakages and thereby helping the beneficiaries to rise above the poverty line. Those who wish to avail the facility will need either the Unique Identity card (ACID) or an Dharma card, and money will be directly transferred to their bank account. The scheme has been lauded as a game changer in policy or governance in India as it would mean value for money when it comes to delivering welfare money directly to targeted beneficiaries. When the DEBT will cover more number of schemes and majority districts across states in future, it is presumed that the subsidy ruder will be less due to better targeting and lack of corruption.
The direct transfers to the poorer section of the society to meet the basic necessities such as food, health, education etc in life will certainly bring down poverty and inequality in India. There are evidences of success of conditional cash transfers in Latin American countries, particularly Brazil and Mexico. The DEBT programmer in Latin America has been lauded and followed by other developing countries. Already there are studies (such as Versa et al, 2007) showing that cash transfers in Brazil through Bolas Familial programmer DEBT as substantial impact in reducing poverty and inequality between 1995-2004. The study reports that the cash transfer welfare scheme led to increase income of 80 percent Bolas Familial households during this period.
Money in the hands of the poor people will enable them to buy from markets and may widen their choices of goods and services. It is also argues that the money flowing to rural areas will create its own market and economic activities. Problem in Implementing the Scheme: Indian Scenario Identifying the challenges while the implementation of the Direct Cash Benefit Scheme in the given Indian system the following points are to be noted: Centre-State Politics- Washman Sinai, a leader of the official opposition Barbarity Kanata Party (BGP) noted, “We are supportive of the idea of direct cash transfer. ” The BGP only has “some doubts over the intentions and the manner of implementation of the scheme by the government. The scheme might help the incumbent Congress government to come to power for a third time in 20144. No real opposition will be forthcoming from the two main Stalinist parties, the Communist Parry of India, Marxist (CPM) and the Communist Party of India (ICP) either, for they are an integral part of the Indian establishment. The Stalinist sustained the ALGA government in power during its first four years in office and in those states where they have held office during the past two decades have ruthlessly implemented the Indian bourgeoisie’s pro-market reform program, including banning strikes and violently suppressing peasant opposition to the expropriation of their lands for big-business development projects.
Leakage and Corruption- Some claim that the direct money transfer model succeeded in Brazil. But our social, ultra and economic structure is different. Our beneficiaries are still illiterate and live in a male-dominated society. They are not even wise enough to utilities the cash properly. Ghost beneficiaries- There is no good system of identifying those truly in need, so benefits can go to better-off folk, especially those MIS-identified by assurances. It may prove politically impossible to withdraw benefits from once-poor folk who become better off. Many poor illiterates may not be registered under Diehard or may not be linked to bank accounts, and can get left out.
Partial coverage of Diehard- identification of eel beneficiary is an important step and it is a must if you want to ensure that only the deserving gets it. Government in its wisdom has decided to use the “Diehard” number citing the advantage it has in terms of ensuring the uniqueness of it to a great extent. There are a number of cases being reported earlier, where the Diehard cards were issued to unauthorized people and the certainty of Dummy-beneficiary can never be denied. Inadequate development of the Banking channel, A big administrative effort will be needed to ensure that Diehard and bank accounts eventually cover everybody. For banks, it’s not only about just transferring the funds.
Banks have to open accounts, ensure that the accounts can be accessed and the holders have access to other financial instruments Dharma cannot convert cash into grain or food, but can ensure that the intended persons receives benefit or not. Dharma can ensure that benefits donor go to ghosts. Biometric failures may leave out 2-5% beneficiaries; exception handling would be required for them; it is no ground to deny benefits to the 95%, in a country where 15% delivery- success was once our standard. Illiteracy and lack Of awareness- Now with the DUCT, the poor will have no choice but to open bank accounts, providing a Daly needed shot in the arm for the country’s banks, most of which remain state-owned.
Opening a bank account, for the people who have remotely ever transacted with bank is a difficult issue, especially when most of the rural population is illiterate. A host of objections and criticisms have come from rival political parties and statistic ideologues. Some problems of ACTS are real, but many others are imaginary. Others say cash benefits for education or fuel may be diverted by a beneficiary to liquor instead. True, but this is equally true of benefits in kind. Mid-day school meals mean less family spending on DOD, so the money saved can be spent on liquor. Subsidized kerosene or rice can be sold in the open market and the proceeds used for liquor.
One should not forget the plight of Nava Iambi inhabitants who saw a sudden flow of ‘money’ when developers undertook construction projects in the satellite city about 20 years ago. Land prices soared and the farmers earned huge money. The nouveau richer went on a buying spree luxury items, including Subs, and ended up squandering money at liquor bars. Now, many are struggling to make ends meet. This can be the plight of the direct cash benefit scheme. Similar was the case when the special economic zones were being developed. Entrepreneurs acquired land at 10 times the prevailing prices. Farmers, who spent their income on modern amenities, have now landed in financial trouble. The rags-to-riches tale of these farmers is back to rags. Now they wish to return to farming, but do not have any land.
The most imaginary and hilarious objection (from Arriving Serial, the BGP and ICP) is that a cash transfer is a bribe to voters. Political parties have for decades offered welfare goodies such as free electricity and water, subsidized food, free TV’s, free icicles and so on. These are unashamed ways to woo voters. But a bribe is illegal gratification. Welfare giveaways can be called unwarranted or misdirected, but not illegal. However, the Direct Benefits Transfer (DOT) programmer is a particular scheme of cash transfer, and we have to ask what it may be displacing and whether the losers will not be plunged into more poverty. It is not the modality of cash transfer that is the only issue, but also how much, and for whom, and also, instead of what.