The government of India has launched a scheme of “cash transfers” to the people below
poverty line, would you consider these transfers as a part of domestic income of a country
Answers
Explanation:
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Return to India’s Universal Basic Income: Bedeviled by the Details
India and Cash Transfers
A UBI in India not only would reimagine the social contract between 1.3 billion citizens and their state but also could provide a blueprint for every other low- and middle-income country wanting to take the plunge.
Published February 14, 2018
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Discussions of a UBI in India owe their provenance to many of the same trends fueling the concept’s rise in advanced economies, including concerns about technologically driven unemployment and poorly targeted welfare programs, an aggressive policy push in favor of cash transfers and public debate regarding its role in poverty alleviation, and experiments to examine the impact of basic income grants.
The GiveDirectly pilot would seem miniscule compared to a UBI implemented in a country like India that has more than 1 billion citizens.1 Given the scale of both the fiscal transfers and the benefiting populations, an Indian UBI could not be donor-financed like the GiveDirectly experiment; instead, it would be the first state-administered basic income program in the developing world. A UBI in India not only would reimagine the social contract between 1.3 billion citizens and their state but also could provide a blueprint for every other low- and middle-income country wanting to take the plunge. The news, in September 2016, that India’s chief economic adviser, Arvind Subramanian, was actively exploring a UBI policy for the annual Economic Survey garnered considerable media attention and attracted comments from senior government officials.2
The Economic Survey is the Indian Ministry of Finance’s annual overview of the economy. It is submitted to the Indian Parliament prior to the release of the government’s budget and has served in the past as a vehicle for policy trial balloons. The 2009–10 survey, for example, discussed replacing subsidies with a system of food coupons or direct cash transfers, an idea now being implemented.3 The idea of a basic income garnered further attention following Prime Minister Narendra Modi’s decision to demonetize the country’s high-value currency bills, as many theorized that a one-time income transfer would be unveiled in the budget to help ease the economic shock of the move.4 While such a cash infusion did not materialize, the promised chapter in the Economic Survey did.
Explanation:
India is among the many developing nations concerned that growing automation is a precursor to a crisis of insufficient employment. Previously, the well-theorized path to economic growth for emerging economies involved building a large, labor-intensive manufacturing sector that would grow more productive and would churn out more diverse and sophisticated goods over time. This, in turn, would drive economy-wide industrialization and would hasten an eventual transition to a service economy, at which point deindustrialization—a fall in manufacturing as a share of aggregate gross domestic product (GDP)—would occur. According to the political economist Dani Rodrik, this relationship has broken down in recent years, a trend he labels “premature deindustrialization.”5 Undergoing structural transformations due to technological changes and trade liberalization, developing economies are finding that it is surprisingly hard to become a manufacturing powerhouse. As a result, they are either partially industrializing or not industrializing at all, instead skipping ahead to the service-economy stage of economic development.
A UBI in India not only would reimagine the social contract between 1.3 billion citizens and their state but also could provide a blueprint for every other low- and middle-income country wanting to take the plunge.