Friday, June 22, 2012

Residents oppose cash transfers scheme of Delhi Govt. at Jahangirpuri Jan Sunwai




The Delhi Government has recently decided to conduct pilot surveys in Sangam Vihar and Jahangirpuri on cash transfers so as to discontinue the existing public distribution system (PDS). A Jan Sunwai was arranged on behalf of Bhalaswa Lok Shakti Manch (BLSM) and Residents Welfare Association, Jahangirpuri at Ramlila Maidan, G block (near Kushal cinema), Jahangirpuri on 22 June, 2012 so as to oppose Delhi Government’s move to replace the PDS with cash transfers.

Social activist Pushpa from BLSM said that the Jan Sunwai (public hearing) could not begin at the scheduled time (i.e. 11 am on 22 June 2012) since the administration rejected the permission for holding it at the Ramlila Maidan at the last minute, which was sought since a month back. Right to Food is the demand of the present public hearing. Despite problems associated with the PDS, it should not be dismantled. She informed that in a pilot survey of 100 households during 2011 done by SEWA and IDF in association with Delhi government, residents (women heads) of Raghubir Nagar were given Rs 1000/- per household (comprising 5 members). On 26 April, 2012, UNDP and the Delhi Government along with Swami Sivanand Memorial Institute (SSMI) organized a public meeting in Jahangirpuri in order to convince people about the advantages of cash transfers over PDS. However, through a signature campaign, 4500 signatures were collected from people rejecting the cash transfer scheme. The same have been sent and communicated to the Chief Minister of Delhi, FSO Commissioner, AC (north West) and UNDP along with memorandum of people from Jahangirpuri. Cash transfer would affect the farmers since the minimum support prices (MSP) given to them would be ended when it is introduced. Pushpa asked why the government is not ready to reform the PDS to check leakages and corruption. The ration shops do not follow Section 4 of the Right to Information Act so as to proactively disclose information to ration consumers, she asserted.

The Jan Sunwai helped one to understand the situation on the ground. Veenu, a woman from the nearby slum, told that her ration card got cancelled recently and the officials at the ration office and the PDS dealer do not listen to her grievances. She asked for PDS instead of cash transfer. She asked for public support to hold a dharna.

Meenu, a resident of Jahangirpuri, shared how she and other women are struggling to ensure that they receive their entitlements completely and on time. She spoke about ration cards which show that ration has been dispatched but the families have not received any food grains. She also spoke about corruption from ground level ration shopkeepers who sell off the foodgrains in black and are not willing to act on complaints.

A middle aged woman named Zarina said that despite Public Grievance Commission (PGC) orders, ration cards could not be issued to her.  

Raju bhai, a daily wage labourer living in Delhi since the last 32 years said that out of his 4 sons, he has lost 2. He has 2 daughters too. It took him 3 years to strike off the names of 2 of his dead sons and add the names of his 2 sons who took birth later. The officials asked for bribe for performing their duties. Full quota of wheat, rice, sugar and kerosene is not supplied by the ration shops. Old people are cheated by the ration dealers and are made to wait in the queue for long hours. He shouted the slogan: “Paisa Nahi Chahiye, Ration Chahiye” (Give us ration, don’t give us cash).

Sushila ji, a woman from the slum said that despite being a poor, she does not have a card since 5 years. She has requested the officials and filled up the forms several times but all in vain. Given her economic status, it is difficult to pay bribe.

Zahir Bhai, a resident of Jahangirpuri, alleged that the money given by the Central Government has not been utilized properly by the Delhi State Government. Despite identification of households, only a few could receive the Antyodaya Anna Yojana card (red card).

Pushpa, a social activist from Satark Nagrik Sangathan said that if government is formed by the people, then it should be held accountable to fulfill the need of its people.

Tara Chand, FSO, Circle 4 Food and Civil Supplies Department who was invited to listen to the grievances of the residents of Jahangirpuri said that people had many complaints and these should be addressed. He said there had been changes in policy which affected the amount of foodgrains received. Due to the instruction coming from the head office, ration shops reduced the monthly allocation of foodgrains for a household overtime: 35kg->32kg->30kg->24kg. He said that cancellation of cards can be checked on the computer records and followed up at ITO. While mentioning that he did not have the capacity to act on their complaints, he advised people to take their complaints to the Food and Supplies Department, ITO. He assured people that he would support them in their work and they could meet him.       

The grievances raised by the people are as follows:

  • People get monthly allocation of 20 kg foodgrain per household instead of 25 kg.
  • Despite applications being filed, a few ration cards have been issued so far.
  • If somebody complains or protests, the officials and ration dealers threaten to convert their existing cards into “white card” (meant for APL households).
  • Rich people owning houses possess “red cards” (meant for Antyodaya Anna Yojana).
  • The complaints raised during the public hearing should reach the appropriate officials.
  • More such signature campaigns should be held to pressurize the officials.
  • Delhi Chief Minister’s claim of “mahila raj” is a misnomer since women have been harassed by PDS officials and dealers.
  • Media is pro-government and pays little attention to leakages in the PDS.

Bharat Dogra, senior journalist said that the public hearing would act like a warning signal to the people that PDS is going to be replaced by cash transfer. Cash transfer is problematic. There are many limitations within the PDS but that does not mean replacing it with cash transfer. The objective of the government should be to minimize leakages in the PDS. In the past, the Government of India made several efforts to strengthen the PDS to improve its delivery mechanism. Pulses should be given under the PDS as their prices have skyrocketed recently. Although storage of foodgrains under the PDS is major concern presently, it should not lead to dismantling the system. The storage problem is short-term. PDS would cushion the consumers against inflation.

Prof. Utsa Patnaik (ex-faculty member, JNU) informed that 66 lakh tonnes of foodgrains meant for the PDS is kept under the open sky that would get damaged due to rain if not attended to (6.6 m. tonnes of wheat under open sky faces rain fury, admits Centre-Gargi Parsai, The Hindu, 22 June, 2012, http://www.thehindu.com/news/national/article3555824.ece). Export of foodgrains is taking place amidst hunger, she alleged. Cash transfer instead of PDS is a dangerous move. Due to the ongoing inflation, Rs. 1000/- will not be enough to buy foodgrains in the coming days. There is a need for widespread protest against the Government’s move for ending the PDS. She said that PDS used to be universal in the mid-1960s. The neoliberal policies of the Government gave rise to the targeted PDS in 1997. The poverty line suggested by the Planning Commission recently is shocking, Rs. 22.43 per day per person in rural areas and Rs. 28.65 per day per person in urban areas. She also ridiculed government figures that suggested that only 11-12 % of Delhi's population is poor. She said that wrong policies adopted by the Government are responsible for the problems associated with PDS and ration dealers should not be blamed alone. The 62 year old PDS is being jeopardized by the people at the top. She ended by saying that people should take their demands further and question those ruling over them. She appealed that people should take forward their demands to the streets of Parliament.

Prof. Ritu Priya (JNU) said that the problem with the PDS is not specific to Delhi and is widespread across the country. The Prime Minister has found that it is a national shame to have 42 percent of its children as underweight. About one third of Indian women are malnourished. Children borne undernourished cannot lead a healthy life. Rs. 1000/- given as cash transfer to cover monthly expenditure of a household of 5 members is a drop in the ocean. There is enough evidence that per capita expenditure on food has come down to compensate for rise in expenditure on electricity bill, daily commutation expenses, expenses on education, clothes etc. The PM is inclined towards helping the corporate sector instead of the needy.

Dunu Roy (Hazards Centre, http://www.hazardscentre.com/home.html) said that people should demand for a universal PDS and there should be one type of card instead of yellow card (for BPL), red card (for Antyodaya Anna Yojana) and white card (for APL). The next step for the residents should to meet the local councilor and subsequently the MLA and the MP.             

Prof. Imrana Qadeer (JNU) said that between 1950s and 1970s, one saw per capita consumption of foodgrains going up whereas from 1970s onward one noticed per capita consumption of foodgrains going down.

Gautam Navlakha (human rights activist) said that a united front should be made for protest demonstration in front of the Parliament against the Delhi Government’s move to replace the PDS with cash transfer.

(This report, which has been prepared by Shambhu Ghatak is partly based on the press release sent by Hazards Centre. Some of the photographs used here are sent by Hazards Centre).

References:

Survey on preference between PDS and cash transfers in Delhi by Rozi Roti Adhikar Abhiyan, Delhi, http://www.indiaenvironmentportal.org.in/reports-documents/survey-preference-between-pds-and-cash-transfers-delhi   

Do Poor People in Delhi want to change from PDS to Cash Transfers?-A Study conducted by SEWA Delhi, October 2009,


Justice Wadhwa Committee on PDS,

Bolsa Familia in Brazil: Context, Concept and Impacts (2009), ILO,

The Nuts and Bolts of Brazil’s Bolsa Família Program: Implementing Conditional Cash Transfers in a Decentralized Context-Kathy Lindert, Anja Linder, Jason Hobbs and Bénédicte de la Brière, May 2007,

HUNGaMA: Fighting Hunger & Malnutrition (2011), Naandi Foundation, http://www.im4change.org/law-justice/disaster-relief-41.html?pgno=2

Jahangirpuri residents to protest against cash in place of food-Naziya Alvi, The Times of India, 22 June, 2012, http://www.im4change.org/rural-news-update/jahangirpuri-residents-to-protest-against-cash-in-place-of-food-naziya-alvi-15836.html

Poor want ration, not cash: Activists, IANS, News Track India, 15 June, 2012, http://www.im4change.org/rural-news-update/poor-want-ration-not-cash-activists-15690.html

Saturday, June 16, 2012

Despite protests Delhi Govt. going ahead with cash transfers



While protesting against Delhi Government’s decision to conduct pilot surveys in Sangam Vihar and Jahangirpuri for cash transfers so as to replace the existing public distribution system (PDS), activists from Bhalaswa Lok Shakti Manch told the media persons gathered at Indian Women Press Corps on 15 June 2012 that they have collected 4500 signatures (including 3300 signatures in Jahangirpuri alone) of residents who do not want cash in lieu of ration.

Speaking at the press meet, Pushpa from Bhalaswa Lok Shakti Manch (BLSM) said that Delhi Government is in favour of replacing the PDS with cash transfers. Rozi Roti Adhikar Abhiyan survey conducted in 2011 showed that 91.4 percent of respondents preferred a reformed PDS instead of cash transfers (see the link: http://www.im4change.org/hunger-hdi/public-distribution-system-pds-42.html?pgno=2). She alleged that for distributing Rs. 12 lakh to 100 persons (one each for a household) as money for cash transfers (for a year) in Raghubir Nagar, Rs. 14 lakh was spent on the survey done by SEWA and IDF. On 26 April, 2012, UNDP and the Delhi Government along with SSMI organized a public meeting in Jahangirpuri in order to convince people about the advantages of cash transfers over PDS. However, through a signature campaign, 4500 signatures were collected from people rejecting the cash transfer scheme. The same have been sent and communicated to the Chief Minister of Delhi, FSO Commissioner, AC (north West) and UNDP along with memorandum of people from Jahangirpuri. She said that APL cardholders have been excluded from the cash transfer scheme. People who have demanded for their rights have faced harassment at the hands of officials and ration dealers.

Manmohan Singh, activist from Bhalaswa Lok Shakti Manch informed that for submitting cash (of Rs. 1000/- per month) in favour of a female head of the household in the Raghubir Nagar survey, there were difficulties faced in opening of bank accounts due which the Delhi Government had to directly intervene. The monthly sum of Rs. 1000/- which was given as cash transfer for a household (of 5 members) in the pilot survey by Delhi Government is not enough to purchase ration that can generate 2200 kilo calorie for an adult per day in urban areas. Since 70 percent of BPL households have an average size of 7 (and not 5 as assumed by the Delhi Government), so the sum stipulated under the cash transfer scheme is insufficient to meet the monthly expenditure for a household. Manmohan said that the PDS in Delhi is subject to governance failure. It is not the PDS which is problematic but those who govern the system who are at fault. Despite several RTI petitions being filed, most ration/ fair price shops do not disclose information to the consumers proactively. Repeated complaints made on irregularities in PDS have fallen on deaf ears. Citizens’ Charter of Delhi has not been implemented well. Earlier the Supreme Court slammed the Government for putting a cap on the number of BPL ration cards issued when so many poor people migrate to Delhi in search of livelihood opportunity. The e-PDS is of little benefit to the BPL.

Reetika Khera from IIT, Delhi said that not all cash transfers are bad like widow pension, old age pension etc. She informed about her study that was done in 10 states along with Jean Dreze during 2011. In two-third of the households surveyed, PDS was preferred over cash transfers. In Chhattisgarh, Orissa and Andhra Pradesh, people were mostly in favour of PDS. People preferred food over cash for the following reasons: food security; access to bank/ post office; access to markets; dissipation of cash (for buying alcohol); underdeveloped rural markets; and, artificial inflation caused due to collusion by local traders. If the PDS is replaced with cash transfers, the burden of transportation and storage costs would be transferred to the poor. From her past experience of working with the rural poor, Reetika earlier felt that poor in the cities are not disempowered and do not lack awareness. However, having heard the activists from BLSM, she asked for giving urban poor both the options: cash transfer as well as PDS. In a democratic set up, people’s views have to be taken into account, she added. She said that the arguments in favour of cash transfers were heard during the days when PDS was subject to rampant corruption and pilferage. However, the situation in India has improved a lot. In her study based on secondary data from NSS 2007-08, she has found that states that have traditionally performed poorly in terms of monthly per capita PDS purchase viz. Chhattisgarh, Uttarakhand, Orissa, Madhya Pradesh and Uttar Pradesh have improved their performance between 2004-05 and 2007-08 (please see: People prefer PDS over cash transfers, http://www.im4change.org/news-alert/people-prefer-pds-over-cash-transfers-9935.html). India is wrongly imitating the Brazilian cash transfer model-‘Bolsa Familia’. Poverty headcount ratio at $1.25 a day (PPP) in Brazil was 6 percent in 2009 while in India it was 33 percent in 2010 (as per the World Development Indicators). Brazil has achieved almost universal literacy while India has a long way to go. Brazil is more urban as compared to India. Given these differences, India needs direct Government intervention for removing malnutrition. 

Rashpal Kaur, Delhi state general secretary, National Federation of Indian Women (NFIW), the women's wing of Communist Party of India said that though the Government is in a mood to abolish the PDS, there is no guaranty that corruption will not take place in cash transfer scheme. The Government wants FDI in retail to make entry in India at the cost of common man’s interest. However, the government is depriving the poor. The APL and BPL divide in PDS should be ended and PDS should be made universal. She said that the Planning Commission wants to reduce the number of BPL card holders in the country. As against the accepted number of 6.52 crore BPL cards, there existed 10.68 crore BPL cards by end of March, 2009. There is no uniformity in the definition of poor. There are three different estimates for the number of BPL households: one by Prof. Arjun Sengupta, another by Dr. NC Saxena (www.sccommissioners.org) and the Planning Commission estimates. According to Prof. Arjun Sengupta who chaired the National Commission for Enterprises in the Unorganized Sector, 77 percent of the population of India lives below the poverty line. Dr. NC Saxena, a retired civil servant acting as a Commissioner appointed by the Supreme Court, feels that half the country’s population of 1.2 billion is below the poverty line, which he apparently defines as a monthly per capita income of Rs 700 in rural areas and Rs 1,000 in urban areas. A recent Planning Commission estimate puts the head count ratio in India at 29.8 percent in 2009-10. She alleged that quota for Central assistance in PDS to states has been reduced in recent years. She said that even the Prime Minister while releasing the HUNGaMA report has agreed that it is a national shame for India to have 42 percent of its children as underweight. Though the Government spends conspicuously on toilets and gave 5 lakh crore sops in its budget to industrial houses, it never has enough money for the poor. Cash transfer is dangerous and the Government is under pressure from the private sector. The Food Corporation of India has outsourced its work to outsiders and is running short of staff. The Government is not willing to buy from farmers. Cash transfer scheme that is being piloted is not linked to inflation. Somehow the Government wants to manipulate data so as to show that India has reduced poverty as per the Millennium Development Goals requirement. A lot of money is wasted on trivial programmes like Stand Up against Poverty (http://standagainstpoverty.org/suap/) and Make Noise against Poverty.         


References:

Survey on preference between PDS and cash transfers in Delhi by Rozi Roti Adhikar Abhiyan, Delhi, http://www.indiaenvironmentportal.org.in/reports-documents/survey-preference-between-pds-and-cash-transfers-delhi  

Do Poor People in Delhi want to change from PDS to Cash Transfers?-A Study conducted by SEWA Delhi, October 2009,


Justice Wadhwa Committee on PDS,

Bolsa Familia in Brazil: Context, Concept and Impacts (2009), ILO,

The Nuts and Bolts of Brazil’s Bolsa Família Program: Implementing Conditional Cash Transfers in a Decentralized Context-Kathy Lindert, Anja Linder, Jason Hobbs and Bénédicte de la Brière, May 2007,

HUNGaMA: Fighting Hunger & Malnutrition (2011), Naandi Foundation, http://www.im4change.org/law-justice/disaster-relief-41.html?pgno=2

Poor want ration, not cash: Activists, IANS, News Track India, 15 June, 2012, http://www.im4change.org/rural-news-update/poor-want-ration-not-cash-activists-15690.html

Delhi government faces SC’s wrath for not issuing ration card, Jagran Post, 18 May, 2011, http://post.jagran.com/Delhi-government-faces-SCs-wrath-for-not-issuing-ration-card-1305730982

Sunday, May 13, 2012

Pension Parishad gets support from politicians across party lines



At the end of 5 days dharna (7-11 May, 2012) by Pension Parishad that was held at Jantar Mantar, New Delhi, a press meet was held at Press Club of India on 11 May, 2012. Leader of the campaign Aruna Roy (MKSS) informed the media that more than 3000 persons from 22 states stayed during the 5 days dharna so as to demand for universal old age pension entitlement. She said that unorganized sector workers comprise 93 percent of the workforce but have no access to social security benefits. Nearly 10 percent of the Indian population is above 60 years. Putting pressure on the electoral system is essential for realizing the old age pension entitlement. Politicians across party lines visited the dharna site so as to express their solidarity on the demand for universal old age pension. On the 3rd day of the dharna, Minister of Rural Development Jairam Ramesh visited the dharna site of Pension Parishad and promised that he would try to raise the monthly pension amount under the Indira Gandhi National Old Age Pension Scheme (IGNOAPS) from Rs. 200/- to Rs. 500/- and remove the distinction between APL and BPL. He also said that old age limit would be brought to 60 years for the universal old age pension. Raghuvansh Prasad Singh (RJD) said that monthly pension should be increased to Rs. 3000/-. Aruna Roy informed that for 3 days (7-9 May, 2012) during the dharna, public hearings on issues related to the elderly, the marginalized & vulnerable groups and public accountability took place. 

Resolutions passed by marginalized & vulnerable groups (dalits, tribal, sex workers, transgender persons. Disabled, MSMs, people living with HIV) on the 3rd day of dharna are:

* Monthly pension should not be less than Rs. 2000/-

* Pension should be linked to the Consumer Price Index

* Pensions should be disbursed on a specific day each month

* Simplify documentation for getting pension

* A single window system must be put in place for disbursing pension

* Transgender, sex worker and other vulnerable and marginalized communities not covered by any form of social security must be given a pension

* Old age people who fall ill should be given free medicines

* Pension and cheap foodgrain must be made available to the Jharia community which has witnessed a growing number of starvation deaths

Resolutions passed on Right to Food on the 4th day of dharna are:

* Universal public distribution system (PDS) and no distinction between APL and BPL

* Include pulses and edible oil under PDS

* Universal old age pension cannot be used as a basis for reducing PDS entitlement or denying Antyodaya Anna Yojna (AAY) entitlement

* All destitute elderly should have access to cooked food from Mid Day Meal (MDM)/ Integrated Child Development Services (ICDS)

Aruna Roy complained that despite Baba Adhav receiving the Times of India Lifetime award, not much press coverage was given by the latter to the former during the pension dharna [see: Baba Adhav to receive ToI social impact lifetime achievement award-Rukmini Shrinivasan, The Times of India, 30 September, 2011, http://articles.timesofindia.indiatimes.com/2011-09-30/mumbai/30229977_1_baba-adhav-social-activist-ek-panavtha]. She said that a delegation would try to meet UPA chairperson Sonia Gandhi. She, however, refuted that National Advisory Council (NAC) is the platform from where she participated in the 5 days dharna. She said that there is a long way to go before the policy on old age pension becomes a legislation.

Vimla Ben, an activist associated with Pension Parishad said that slums in Delhi exhibit much poorer living conditions than the villages in rural areas. Sanitation condition in slums has reached its nadir. A report produced by her organization, which was submitted to Rakesh Mehta of Delhi Government revealed that the distinction between APL and BPL under the PDS has created rift among the population. Elderly population is the most neglected section among the population.     

Baba Adhav, veteran leader of unorganised workers in Maharashtra, said that the objective of Social Security Act 2008 was to provide social security at old age, providing identity cards to unorganized sector workers and disease relief coverage. Even after 4 years of the passing of the Social Security Act, government has failed to provide social security to unorganized sector workers. The demand for pension is related to social justice. From Pune, 25 hamal workers came to Delhi on motorcycles to join the dharna at Jantar Mantar. He said that 22 Members of Parliament (MPs) from various political parties visited the dharna venue. Although Jairam Ramesh said that a monthly pension of Rs. 2000/- is too high but he was ready for a monthly pension of Rs. 500/-. Expenditure made by jail authorities on a prisoner is higher than what the government spends on a pensioner. He said that Congress MP Manick Tagore got 40 signatures from his colleagues to be submitted to the PM so as to demand universal old age pension. The President of India has shown her support for the movement and she donated Rs. 15000/- to Pension Parishad. Pension should become a right, Baba Adhav emphasized. Pension Parishad would try to reach every district of the country. Since journalists are not covered by pension, so they too should become part of the movement. There is an obligation on the part of privileged classes to pay for pension of unorganized sector workers. He gave the example of South Africa where pension system is quite strong and was recently visited by the President.  

Prabhat Patnaik (former member of the Kerala State Planning Board and ex-faculty member JNU) said that the struggle for universal old age pension is led by Aruna Roy and Baba Adhav. He said that people are not simply asking for a rise in pension which is being given to the poor. It is a demand for realization of a Constitutional right. The struggle is significant since it is for realizing a Constitutional right to life. Right is universal—it makes no distinction between APL and BPL. If pension becomes a right, adequate means has to become the objective. That is why Rs. 2000/- per month was demanded by Pension Parishad. Once pension becomes a right, it is incumbent on the government to find resources for pensioners. Prabhat Patnaik asked that if there is a war, won’t the government fight or will it postpone it for next year by giving the excuse of fiscal constraint. The government jolly well has to raise funds for pension if it is a right. Universality of the right compels the government to find resources. Giving of pensions would increase purchasing power of the poor, which in turn would provide stimulus to the economy without worsening the balance of payment (BoP). The historical juncture has come for demanding universal old age pension, Prabhat told.

Ravi Srivastava ((former member of the National Commission on Enterprises in the Unorganised Sector and faculty member JNU) congratulated Pension Parishad for bringing together so many people on the issue of universal pension. He said that there is an attempt to portray such movements as irresponsible in the backdrop of lower growth by a section of the media. Social rights and human rights are denied on similar pretexts when resources are demanded. On 15 May, 2006 the first report submitted by the National Commission for Enterprises in the Unorganized Sector (NCEUS) to the PM was on universal social security for unorganized sector. Due to crisis like accidents, maternity, diseases, workers in this sector fall into poverty trap and destitution. Under the universal social security legislation, the NCEUS demanded coverage of 3 things: life cover (including accidents), health expenses and old age pension. It, therefore, asked the government to spend 0.5 percent of GDP on universal social security for the unorganized sector workers. The earlier UPA government missed a huge opportunity to give universal social security. Since spending on health, education and shelter costs something to the exchequer, a viable strategy is needed to raise resources and taxation becomes essential. Government has to commit to social justice and income redistribution. Recently a committee constituted by the Planning Commission has recommended for health coverage as was done previously by the NCEUS. Ravi Srivastava agreed that pension should be linked to minimum wages. No APL-BPL distinction should be made under the universal old age pension. UPA should not miss the opportunity this time, he added.

Image courtesy: Pension Parishad

References:

Parishad to intensify campaign for universal old-age pension-K Balchand, The Hindu, The Hindu, 12 May, 2012, http://www.thehindu.com/news/national/article3409440.ece

Pratibha backs demand for expanding old age pension scheme, The Hindu, 11 May, 2012, http://www.thehindu.com/news/national/article3405304.ece


Notes from the Pension Parishad held at TISS,


Press Conference: Demand for Universal Old Age Pension Entitlement,

Old age blues-Sreelatha Menon, The Business Standard, 6 May, 2012, http://www.business-standard.com/india/news/sreelatha-menon-old-age-blues/473503/

Elderly people to stage dharna-K Balchand, The Hindu, 4 May, 2012, http://www.thehindu.com/news/national/article3384811.ece

Universal old age pension sought for elderly citizens, The Asian Age, 4 May, 2012, http://www.asianage.com/india/universal-old-age-pension-sought-elderly-citizens-963

Universal Pension Demanded for Elderly, 4 May, 2012, http://beyondheadlines.in/2012/05/universal-pension-demanded-for-elderly/

Aruna Roy seeks universal pension rights for elderly-Puja Bhattacharjee, Governance Now, 4 May, 2012, http://www.governancenow.com/news/regular-story/aruna-roy-seeks-universal-pension-rights-elderly

Unorganized Workers' Social Security Act, 2008,

DIGNITY FOR THE ELDERLY: JOIN THE CAMPAIGN,


Sunday, May 6, 2012

Press Conference: Demand for Universal Old Age Pension Entitlement



A press conference for demanding universal old age pension entitlement was held at the Indian Women Press Corps, New Delhi on 4 May, 2012. RTI activist Aruna Roy (MKSS) who is spearheading the campaign-Pension Parishad said that there is an ongoing debate on poverty. Poverty issues have been taken up in the discourse on development. Since the longevity of the poor has gone up but ageing body is unable to perform skill based task, pension becomes important for livelihood at old age. There is little or no social security available for the poor who are old. Joint family structure has broken down into nuclear family structure leaving no income or housing support for the aged. A recent meeting held at TISS, Mumbai revealed that Rs. 200/- per month is given to an old person aged between 60-80 years, and Rs. 500/- per month is given to an old person aged 80 years and above. Of the total elderly population, only 1.97 crore are beneficiaries of Indira Gandhi National Old Age Pension Scheme (IGNOAPS), which means that only about one in every five persons over 60 years old receives old age pension. Universal non-contributory pension has been demanded by Pension Parishad for those above the age of 55 while the eligibility for women has been pegged at 50 years without any distinction on the lines of BPL and APL. For other vulnerable groups or workers in hazardous industries, the age of eligibility has been pegged at 45 years. Aruna Roy asked for considering pension to be an individual entitlement and linking pension to inflation. There is demand that there should not be forced retirement due to pension. Daily pension should be equivalent to half of minimum wage.

Baba Adhav, veteran leader of unorganised workers in Maharashtra, informed about the social security conference that took place in Pune in February, 2012. He said that Bhalchandra Mungekar was also present during the conference. The government has shown lack of willpower to implement the Social Security Act (SSA) 2008. The Advisory Committee for implementing the SSA 2008 was formed only in two states-West Bengal and Karnataka. Baba Adhav gave the examples of rickshaw pullers and hamals who are victims of old age. He said that universal pension is provided in Goa and in a country like South Africa where the President has gone for an official foreign trip recently.

Prof. Prabhat Patnaik (former member of the Kerala State Planning Board and ex-faculty member JNU) said that if Rs. 2000/- is given as monthly pension to an old person, then the total cost of providing pension to 8 crore old people who are not yet covered would be Rs. 1,92,000 crore, which is roughly 2 percent of GDP. If a quarter of the rise in GDP (which is presently growing at 8 percent per annum) is kept aside, then the government can use this for funding universal pension. He ended with “The state of civilization must be judged by the way it treats its elderly.”      

Annie Raja (National Federation of Indian Women) informed that NFIW is part of Pension Parishad. Aged persons are discriminated everywhere including Kerala.

Prof. Ravi Srivastava (former member of the National Commission on Enterprises in the Unorganised Sector and faculty member JNU) informed that as per the estimates by National Commission for Enterprises in the Unorganized Sector (NCEUS), 93 percent of the workforce is employed in the unorganized sector. 77 percent of the population is poor and vulnerable. As per the recent estimates by KP Kannan, the figure has come down from 77 to 70 percent. Social security is a right of the workers. Social protection, social security and sustainable human development are all interlinked. Old people of tomorrow are workers of today. They deserve protection. The universal pension scheme has to be non-contributory. For financing the scheme, the government needs to impose social security tax and levy cesses on industries. Rs. 500,000 crore has been given as freebie to various industrial houses in the current budget. Inequality has been costly to the Indian society. Maoism is a growing socio-economic problem. In Brazil, old age pension has redistributed income and reduced income inequality, he added. The idea is to raise money via additional revenue generated and not using money from the existing tax base. If there is a universal entitlement scheme, then the migratory construction workers would be benefited.       

Activist Subhas Lomte said that pensions of MPs and MLAs have gone up but not of the poor and aged unorganized workers.

Dharna Program schedule

Along with a focus on Pensions, the following related issues will also be discussed in public hearings on the 5 days of the Dharna -

7th May 2012– Public hearing on issues of the elderly.

8th May 2012– Public hearing on Accountability and Grievance Redress related to Pensions and entitlements for the elderly. The Grievance Redress Bill will also be discussed.

9th May 2012– Public hearing on issues of marginalised and vulnerable groups

10th May 2012– Public hearing on issues related to the National Food Security Bill and food security of the elderly

11th May 2012– Pension Parishad discussion on the response to the charter of demands. Planning the way forward.

PENSION PARISHAD DEMANDS
•           A Universal and Non Contributory Old Age Pension System to be established immediately by the government with a minimum amount of monthly pension not less than 50% of minimum wage or Rs 2000/- per month, whichever is higher.
•           The pension to be an individual entitlement for all eligible citizens of India.
•           The monthly pension amount to be indexed to inflation bi-annually and revised every two to three years in the same manner as is done for salaries/pensions of government servants.
•           Any individual 55 years or older to be eligible for the old age pension.
•           For women, eligibility age for pensions to be 50 years.
•           For highly vulnerable groups (such as the Primitive Tribal Groups, Transgender, Sex Workers, PWDs), the eligibility age to be 45 years or fixed according to their particular circumstances.
•           No one to be forced to compulsorily retire from work on attaining the age of eligibility for universal old age pension.
•           A single window system for Old Age Pensions.
•           APL / BPL criteria should not be used for exclusion.
•           The payment of pension not to be used to deny any other social security / welfare benefit such as benefit under the Public Distribution System.

Exclusion Criteria
•           Individuals whose income is higher than the threshold level for payment of income tax
•           Individuals who are receiving pension from any other sources that exceeds the pension amount under the Universal Old Age Pension Programme.


Key findings of the ILO report entitled: World Social Security Report 2010/11: Providing coverage in times of crisis and beyond, http://www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/---publ/documents/publication/wcms_146566.pdf are as follows:

# In India, public social security expenditure excluding health expenditure (as % of GDP) was 3.10 percent in 2005 (see Table 25. Public social security expenditure, Statistical Annex Part B) as compared to 4.08 percent in China during 2006, 12.30 percent in Japan during 2005, 21.4 percent in France during 2005, 9.6 percent in Brazil during 2001 and 9.7 percent in Canada during 2005.

# Over 60 per cent of the elderly now live in countries classified by the United Nations as “less developed”. In 2050 the elderly in "less developed" countries will constitute nearly 80 per cent of the world’s elderly population. Sixty per cent of them will be living in Asia, with over half in just two countries: China and India. These developing and ageing societies have to do something urgently to ensure the right to retirement in dignity and social security to their elderly members.

# India’s National Old-Age Pension Scheme, financed by central and state resources, reaches one-fourth of all the elderly: about half of pensioners who live in poverty.

# Old age dependency ratio (see Table 1: Demographic trends: Dependency ratios, Statistical Annex Part A) in India is predicted to rise over the years: 7.0 in 2000, 7.4 in 2005, 7.7 in 2010, 12.2 in 2030 and 20.2 in 2050. However, youth dependency ratio is expected to decline over the years: 57.7 in 2000, 53.1 in 2005, 47.9 in 2010, 33.1 in 2030 and 26.8 in 2050. Hence, the notion of youngistan is clearly a myth.

# Population over 60 years as % of total population (see Table 2: Demographic trends: Ageing, Statistical Annex Part A) is expected to rise in India over the years: 6.7 in 2000, 7.0 in 2005, 7.5 in 2010, 12.4 in 2030 and 19.6 in 2050. 

# Population over 80 years as % of total population (see Table 2: Demographic trends: Ageing, Statistical Annex Part A) is expected to rise in India over the years: 0.5 in 2000, 0.6 in 2005, 0.7 in 2010, 1.2 in 2030 and 2.6 in 2050. 

Notes:

Youth dependency ratio (%): a measure showing the number of youth dependants (aged 0–14) to the total population (aged 15–64).

Old-age dependency ratio (%): population aged 65 years or over to the population aged 15–64.

Further readings:




Old age blues-Sreelatha Menon, The Business Standard, 6 May, 2012, http://www.business-standard.com/india/news/sreelatha-menon-old-age-blues/473503/

Elderly people to stage dharna-K Balchand, The Hindu, 4 May, 2012, http://www.thehindu.com/news/national/article3384811.ece

Universal old age pension sought for elderly citizens, The Asian Age, 4 May, 2012, http://www.asianage.com/india/universal-old-age-pension-sought-elderly-citizens-963

Universal Pension Demanded for Elderly, 4 May, 2012, http://beyondheadlines.in/2012/05/universal-pension-demanded-for-elderly/

Aruna Roy seeks universal pension rights for elderly-Puja Bhattacharjee, Governance Now, 4 May, 2012, http://www.governancenow.com/news/regular-story/aruna-roy-seeks-universal-pension-rights-elderly

Unorganized Workers' Social Security Act, 2008,

DIGNITY FOR THE ELDERLY: JOIN THE CAMPAIGN,

Friday, April 13, 2012

India is less poor but more unequal


Poverty as measured by head count ratio may have dropped in India by 7.3 percentage points from 37.2% in 2004-05 to 29.8% in 2009-10 but the decline could have been much more had the country been more equal. To the dismay of pro market economists, a new ADB report entitled Asian Development Outlook 2012: Confronting Rising Inequality in Asia tells that had inequality remained unchanged from the 1990s to the 2000s, the poverty headcount rate in India could have been brought down to 29.5% in 2008, instead of the actual 32.7%. It is a widely held belief that growth ultimately trickles down to the poor living at the bottom, thus reducing poverty. However, the new report finds that rising inequality due to growth has affected poverty reduction.

The new ADB report has given ample attention to the extreme level of inequality existing in the Asian economies. People’s Republic of China (PRC) and India—the world’s two most populous countries—with annual GDP growth rates of 9.9% and 6.4%, respectively have witnessed rise in inequality from the early 1990s to the late 2000s. During the period of economic reforms, Gini coefficient*—a common measure of inequality—deteriorated from 32.4 in 1990 to 43.4 in 2008 in the PRC and from 32.5 in 1993 to 37 in 2010 in India.

The yawning gap between the rich and the poor in India could be observed from the ratio of the per capita expenditure of the top 20% to that of the bottom 20%. The quintile ratio has increased from 4.8 in 1993 to 5.7 in 2010. In India, the annual mean per capita expenditure growth was only 1.1% for the bottom quintile but 1.9% for the top quintile during 1993-2010. Rising inequality in India has been driven by income redistribution to the top 20%, at a cost to the bottom 80%, the report mentions. 

A central message of the ADB report is that income inequality is caused by inequality of opportunity in developing Asia. Inequality of opportunity arises out of unequal access to public services, especially education and health. In some Asian countries including India where the average proportion of out-of-school primary school-age children was about 20% in 1999–2003, children from the poorest quintile were three times as likely as those from the richest quintile to be out of school. Infant mortality rates among the poorest households in some Asian countries were double or treble the rates among the richest households. The chance of a poor infant dying at birth was more than 10 times higher than for an infant born to a rich family in Asia.

Unlike the popular belief, the ADB report cautions that high and rising inequality can bring down medium-term growth by reducing social cohesion, undermining the quality of governance, and increasing pressure for inefficient populist policies.

Key findings of the ADB report:

·         In  India,  the urban Gini  grew  from  34.4  in  1993  to  39.3  in 2010, much faster than the contemporaneous growth of the rural Gini, from 28.6 to 30.5. India’s rural inequality is lower and urban inequality is higher than in the PRC and, unlike the PRC but like most developing countries, India’s urban inequality is higher than its rural inequality.

·         The average annual growth rate of labor productivity was 7.4% during 1990–2007, while average annual real wage growth rate was only 2%. Gains in productivity were not passed on to wages and, consequently, the labor share of India’s organized manufacturing sector declined from 37% in 1990 to 22% in mid 2007 in India.

·         Wage employment elasticity of growth fell from 0.44 in 1991–2001 to 0.28 in 2001–2011 in PRC and from 0.53 to 0.41 in the case of India thus showing jobless growth.

·         During 1990−2010, the region’s average per capita GDP in 2005 PPP terms increased from $ 1633 to $ 5133. The proportion of the population living on or below the $ 1.25 a day poverty line fell from 51.8% in 1990 to 20.8% around 2008, as 714 million people were lifted out of poverty.

·         If inequality had remained stable in the Asian economies where it increased, the same growth in 1990–2010 would have taken about 240 million more people out of poverty—equivalent to 6.5% of developing Asia’s population in 2010 and 8.0% of those countries with rising inequality.

·         Inequality widened in 11 of the 25 economies with comparable data, including the three most populous countries and drivers of the region’s rapid growth—the PRC, India, and Indonesia.

·         The gaps between urban and rural incomes in developing Asia have increased, as have those between prosperous and lagging areas.

·         Although average Gini coefficient across developing Asian economies (38) was lower than that in Latin American economies (52), most Latin American countries have seen narrowing inequality in the last 2 decades.

·         Disparities in the means to raise one’s living standards—such as physical assets (e.g., capital and land), human capital (e.g., education and health), and market access (e.g., labor)—are common.

·         High gender disparities could be noticed for tertiary education in South Asia and the Paciic.

·         Differences in educational attainment can explain 25%–35% of inequality between households in many regional economies, and the earnings premium for skills and tertiary education has increased in recent years.

·         From 1990 to 2010, the average annual growth rate of gross domestic product (GDP) for developing Asia reached 7.0% in 2005 purchasing power parity (PPP) terms, more than double the 3.4% for Latin America and the Caribbean.

* Note: A Gini of zero denotes absolute equality, while a value of 1 (or 100 on the percentile scale) means absolute inequality.
References:

Asian Development Outlook, April 2012, Asian Development Bank (ADB), http://www.adb.org/sites/default/files/pub/2012/ado2012.pdf

Press Note on Poverty Estimates, 2009-10, Planning Commission, March 2012, http://planningcommission.gov.in/news/press_pov1903.pdf  

Give us growth and we’ll handle the inequality by Manas Chakravarty, Live Mint, 11 April, 2012, http://www.livemint.com/2012/04/11134745/Give-us-growth-and-we8217ll.html

'Rapid growth leaving millions behind in Asia', The Business Standard, 12 April, 2012, http://www.im4change.org/rural-news-update/039rapid-growth-leaving-millions-behind-in-asia039-14381.html

‘Inequality has gone up, notwithstanding dip in poverty'-K Balchand, The Hindu, 21 March, 2012,

Reign of the one per cent?-N Chandra Mohan, The Business Standard, 26 March, 2012

The great Indian poverty game-Sonalde Desai, The Business Standard, 29 March, 2012

New methods needed to answer old controversy in poverty measurement-Sreelatha Menon & Indivjal Dhasmana, The Business Standard, 9 April, 2012, http://www.im4change.org/rural-news-update/new-methods-needed-to-answer-old-controversy-in-poverty-measurement-sreelatha-menon-indivjal-dhasmana-14273.html

Pronab Sen, principal advisor to Planning Commission interviewed by Indivjal Dhasmana, The Business Standard, 6 April, 2012, http://www.im4change.org/interviews/pronab-sen-principal-advisor-to-planning-commission-interviewed-by-indivjal-dhasmana-14233.html

Planning Commission’s Poverty Charade, Economic and Political Weekly, Vol XLVII, No. 14, 7 April, 2012, http://www.im4change.org/rural-news-update/planning-commissions-poverty-charade-14204.html

India undercounts its poor-Himanshu, Live Mint, 26 March, 2012, http://www.im4change.org/rural-news-update/india-undercounts-its-poor-himanshu-13936.html

Poverty line: Usefulness of poverty data-S Mahendra Dev, The Economic Times, 28 March, 2012,

States' data cast doubt on growth-poverty equation; welfare schemes have a strong role to play by Devika Banerji, The Economic Times, 26 March, 2012,

Poverty line: Myths, perceptions and reality by Sriram Balasubramanian, CNN-IBN, 23 March, 2012,

Is India Fudging Its Poverty Numbers?-Tripti Lahiri, The Wall Street Journal, 20 March, 2012, http://www.im4change.org/rural-news-update/is-india-fudging-its-poverty-numbers-tripti-lahiri-13853.html

Abhijit Sen, Member, Planning Commission interviewed by Pallavi Polanki, First Post, 20 March, 2012, http://www.im4change.org/interviews/abhijit-sen-member-planning-commission-interviewed-by-pallavi-polanki-13845.html

Bihar's growth story has a poor side-Rukmini Shrinivasan, The Economic Times, 20 March, 2012, http://www.im4change.org/rural-news-update/bihar039s-growth-story-has-a-poor-side-rukmini-shrinivasan-13816.html

5 crore people moved out of poverty: Government, The Economic Times, 20 March, 2012, http://www.im4change.org/rural-news-update/5-crore-people-moved-out-of-poverty-government-13835.html