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Re: India need not live with poverty



>>Let's get a bit specific now. You said above that about Rs800 reach the
>>actually poor today. Are they being lifted above the poverty line? If not
>>how will Rs650 or Rs450 do that?
>>I need to get clarity on the basic premise of small doses
>>cash delivery eradicating poverty, however efficiently and honestly
>>administered.
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Sanjeev Sabhlok <sanjeev@sabhlokcity.com> wrote: 

>The Rs. 800 does not reach the poor uniformly. If you see the breakup in
>the detailed note (Section 4. The actual role played by Government in India
>- of the new note), you will find most of it is erratic, goes to some this
>year, to others the other year; goes to the better off among the poor, etc.
>In general, the 'disbursal' of this amount is extremely chaotic, and serves
>no real purpose.

 I understand that. What I was trying to figure out is, at least some poor
people should have gotten around Rs800 for a couple of years...? The
programmes like IRDP,NREP etc had delivered albeit very inefficiently in
many cases, this kind of money for years. And apparently in some parts of
the country there was good monitoring of the beneficiaries - wasn't NIC
involved in it? I was wondering if we could get data on this to validate
our assumption that cash delivery at this scale can actually 'move the poor
above the poverty line' and keep them there.

>The Rs.650 (per capita) will be specifically targetted and will be fully
>disbursed each year to ALL below poverty line. That will eliminate poverty
>by definition.


"By definition"!? Only if the definition is "people are poor because they
are cash-poor by a maximum amount of Rs650 per capita for a few years". I
don't think that is a valid definition. 

BTW, it should be easier for a few people to get out of poverty than all of
them together, via receipt of money; if everyone gets cash there is going
to be serious inflation for goods and services that they all tend to need,
at their level,  in their localities, making the utility of the predefined
amount of cash much smaller and their 'boosting'  power weaker.

>Hope this helps; if so let us move on to implementation.


I am afraid not, and I see you want us to move on to the implementation in
a hurry. Looks like either I am failing to see something that is supposed
to be intuitively clear or self-evident, or I have failed to convey what I
think is the fundamental lacuna. So I shall step aside and you can ignore
me. Good luck.

Tejus

 





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