SOIL Report 2011 - ACCESS Development Services

More documents

Recommendations

Info

Reflections on Livelihoods Policies 716. Government should increase the equitybase of the National Small IndustriesCorporation (NSIC), to cater to thedemand-side requirement of theMSMEs.Market access:1. There is a recommendation for 20 percent procurement by all departmentsand PSUs from MSMEs.2. The government’s offset policy especiallyfor the Defence and Aviation Sectorsshould give priority to MSMEs.Infrastructure/technology HRs:1. DICs should be converted to Industrialtownships that are better equipped toserve the sector.2. The government should encouragecorporatization of the MSMEs.3. New clusters of MSMEs should becreated.4. Setting up a `1,000 crore fund was recommendedto encourage the concept ofbusiness incubators.5. Another fund of `1,500 crore may becreated to utilize green technologies inthe MSME sector.Institutional/legal:1. There is a need to create a nationallevelinstitution for promotion anddevelopment of MSMEs, over andabove the institutions like SIDBI, NSIC,Development Commissioner (MSME),that already exist.2. An expert group may be formed for theabove to determine the overall mandatefor the institution.3. Creation of an MSME exchange.4. New legal entities like a single personcompany or limited liability partnershipsshould be given wide publicity.These recommendations are more thana year old, and their implementation remainssluggish (Ramkrishnan 2011). NSIChas taken the initiative to implement a fewof the recommendations that refer to them,in terms of setting up a cell on market intelligence,organizing sector-specific trade fairs,improving raw material procurements forMSMEs, enhancing the equity base of NSICand so on. But none of the other recommendationshave seen the light of day. Therecommendations themselves are disquietingas none of them refer to any mechanismsfor improving labour and its welfare, otherthan encouraging green technologies.3.3.4. Conditional cash transfersThe central challenges of all redistributiveprogrammes are:1. Identifying the deserving population.2. Reaching the deserving population.3. Avoiding leakages due to hijacking ofresources and corruption.4. Streamlining procedures to avoidinefficiency.5. Establishing administrative accountability.6. Controlling costs of delivery.Redistribution expenditures and subsidiesexceed the states’ share of the centraltaxes (Mukhopadhyay 2008). Besidesleakages and inefficiencies, there are difficultiesin identifying and ensuring accessto the poor, as highlighted in Section 3.3.1on the National Food Security debate. Forexample, the 61st Round of the NSS reportsthat only 44 per cent of the poorest of thepoor and overall only about 39 per cent ofthe poor have BPL cards to access redistributiveprogrammes. In 2007, there were 151central-sector schemes targeted at the poorthat required `72,000 crore per annum, ofwhich 90 per cent was required for just 30such schemes. This apart, the subsidies forfertilizers and food (under PDS) constitutedmore than `61,000 crore in 2007–08.Various studies have shown that the leakageis very high, and the ratio of disbursementby central government to receipt by thebeneficiary can be as low as 11 per cent to
72 State of India’s Livelihoods Report 201121 per cent (Mukhopadhyay 2008). In ahypothetical situation, if this entire moneywere to be sent to the bank account of thepoor, each BPL family would receive amonthly cash of `2,140 for an entire year.An alternative approach to the transfer ofgoods and services is to transfer cash directlyto the poor families. The Janani SurakshaYojana, in which pregnant mothers are givencash incentives to have safe institutionaldeliveries of their first two children, is currentlya major cash transfer programme inIndia. There have also been a plethora ofcash transfer programmes in the past whichwere mostly geared towards incentivizingbirth of a girl child and girl education.Building upon earlier works (Dutta2010; Mukhopadhyay 2008) the PlanningCommission proposed five different waysof CCTs (see Box 3.5) by the end of 2010,and identified a few prerequisites for theirsuccessful implementation, which are:1. Correct targeting—there are two typesof targeting at work, NREGA works onthe principle of self targeting, and allother programmes work on the principleof targeted intervention. Since targetinginterventions have always been abysmallyinaccurate, the Planning Commissionproposed a new way of simplifying, andthereby improving the system-driventargeting (see Box 3.5).2. Biometric identification—it is alreadybeing piloted under the unique identification(UID) programme of thecountry.3. A system of electronic transfer to thebank account of the poor. Fortunately,the MGNREGA has already creatednearly 90 million bank or post officeaccounts. If these banks and post officesare modernized, then electronic cashtransfers are entirely feasible.Several critics have pointed out thatwherever CCT has worked best, it hasworked:1. Only in combination with other typesof transfers, that is, goods and services(Dreze 2011).2. When supply of service provisions areadequate to absorb the heightened demand.That cannot be said to be true inIndia; therefore, cash transfers in lieu ofother transfers and provision of servicescan be completely counterproductive.The Bihar Mukhya Mantri Balika CycleYojana is selected for its critical importanceas a pilot of CCT, which is being cited as asuccess, and is described in Box 3.6.3.3.5. Corporate Social Responsibility(CSR) as national mandateIn purchasing power parity terms, India’sGDP is the fourth highest in the world afterUSA, China and Japan (World Bank 2010),and this phenomenal growth has occurredmostly due to the efforts of the private sector.The Indian corporate sector in generalhas greatly benefited from the liberalizationera over the last one and a half decade.Box 3.5: Planning Commission proposal on CCTs1. Cash Transfer to provide a minimummonthly income guarantee to each household—`500per family per month2. Cash Transfer to pregnant and lactatingmothers to encourage institutionaldelivery—`700 for three months before,and `1,000 for three months after delivery3. Cash transfers to replace ICDS cookedSNPs—`5,376 crore subsidy componentof its full expenditure of `8,000 crore4. Cash Transfer to replace food subsidy in PDS5. Cash Transfer to youth for skill development—stipendto attend vocational education,and expenditure subsidy to the institutionSource: Planning Commission (2010).
Page 2 and 3:
State of India’s Livelihoods Repo
Page 4 and 5:
State of India’s Livelihoods Repo
Page 6 and 7:
ContentsList of TablesList of Figur
Page 8 and 9:
List of Tables1.1 Growth rate of Gr
Page 10 and 11:
List of Figures1.1 Pattern of GNP a
Page 12 and 13:
List of Boxes1.1 India a country of
Page 14 and 15:
List of Abbreviations3PLADBAEPSAICT
Page 16 and 17:
List of AbbreviationsxvMKSSMoEFMoRD
Page 18 and 19:
PrefaceACCESS has been bringing out
Page 20 and 21:
Prefacexixbring out yet another vol
Page 22 and 23:
AcknowledgementsA lot of work, ener
Page 24 and 25:
State of India’sLivelihoods 2011:
Page 26 and 27:
State of India’s Livelihoods 2011
Page 28 and 29:
Page 30 and 31:
Page 32 and 33:
Page 34 and 35:
Page 36 and 37:
Page 38 and 39:
Page 40 and 41:
Livelihoods of the PoorIt is now co
Page 42 and 43:
Livelihoods of the Poor 19of employ
Page 44 and 45: Livelihoods of the Poor 21significa
Page 46 and 47: Livelihoods of the Poor 23last two
Page 48 and 49: Livelihoods of the Poor 25Figure 2.
Page 50 and 51: Livelihoods of the Poor 27If person
Page 54 and 55: Livelihoods of the Poor 31Table 2.3
Page 56 and 57: Livelihoods of the Poor 33home-base
Page 58 and 59: Livelihoods of the Poor 35(13.4 mil
Page 60 and 61: Livelihoods of the Poor 37on their
Page 62 and 63: Livelihoods of the Poor 39Early exp
Page 64 and 65: Livelihoods of the Poor 41(Chintan
Page 66 and 67: Livelihoods of the Poor 43A study b
Page 68 and 69: Livelihoods of the Poor 45systemati
Page 70 and 71: Livelihoods of the Poor 47and sanit
Page 72 and 73: Livelihoods of the Poor 49dispropor
Page 76 and 77: Livelihoods of the Poor 53make an i
Page 78 and 79: Livelihoods of the Poor 55and sanit
Page 80 and 81: Reflections onLivelihoods Policies3
Page 82 and 83: Reflections on Livelihoods Policies
Page 110 and 111: State as the LargestLivelihoods Pro
Page 112 and 113: State as the Largest Livelihoods Pr
Page 132 and 133: Private Industry andServices—What
Page 134 and 135: Private Industry and Services—Wha
Page 144 and 145:
Private Industry and Services—Wha
Page 146 and 147:
Page 148 and 149:
Page 150 and 151:
Page 152 and 153:
Potential andPossibilities6.1. Intr
Page 154 and 155:
Potential and Possibilities 131and
Page 156 and 157:
Potential and Possibilities 133thro
Page 158 and 159:
Potential and Possibilities 135•
Page 160 and 161:
Potential and Possibilities 137get
Page 162 and 163:
Potential and Possibilities 139welf
Page 164 and 165:
Potential and Possibilities 141resp
Page 166 and 167:
Potential and Possibilities 143the
Page 168 and 169:
Potential and Possibilities 145SN C
Page 170 and 171:
Potential and Possibilities 147infr
Page 172 and 173:
Potential and Possibilities 149Saxe
Page 174 and 175:
About the Editorsand ContributorsTh
show all

SOIL Report 2011 - ACCESS Development Services

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?