write down the four positive and negative features of public distribution system
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According to the World Bank (2007), the Iraqi Public Distribution System (PDS) is probably the largest
food-based transfer program operating anywhere in the world. The PDS was started when sanctions were
imposed in 1990, providing domestically produced food to the entire population. In 1996, the United
Nations agreed to allow food imports under the Oil for Food Programme, thereby permitting the size of
the rations to more than double. The entire Iraqi population is eligible to receive the ration freely,
although until recently a small nominal fee equivalent to US$0.16 per person per month was needed.6
At
present, the PDS provides 85 percent of caloric needs.7
The size of the PDS is so large that it has major effects on the Iraqi economy. Advantages are clear: Food
rations keep people out of poverty. Disadvantages include the following. First, the fiscal cost of the
program is large. The Iraqi Ministry of Finance estimates that the PDS will absorb 5.7 percent of the
general budget in the year 2009, corresponding to ID 4,200 billion (US$3.5 billion). Second, the PDS has
distortionary effects on the structure of domestic food market prices and hence on the allocation of
resources within the country. Third, although the PDS is an important safety net, its role is accomplished
inefficiently, mainly because of the absence of targeting.
Given its crucial role, PDS reform has been hotly debated in Iraq in past years, and the issue is currently
under scrutiny as part of the government’s effort to design a broader national development strategy. A
variety of proposals have been put forth previously, but their assessment is made difficult by a lack of
data that prevents the use of adequate methods of analysis. For instance, to estimate how the Iraqi
economy would react if the PDS were changed/eliminated one could rely on computable general
equilibrium (CGE) models. These are ubiquitous in policy analysis. However, CGE analysis is currently
not an option for Iraq because of lack of suitable data.
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food-based transfer program operating anywhere in the world. The PDS was started when sanctions were
imposed in 1990, providing domestically produced food to the entire population. In 1996, the United
Nations agreed to allow food imports under the Oil for Food Programme, thereby permitting the size of
the rations to more than double. The entire Iraqi population is eligible to receive the ration freely,
although until recently a small nominal fee equivalent to US$0.16 per person per month was needed.6
At
present, the PDS provides 85 percent of caloric needs.7
The size of the PDS is so large that it has major effects on the Iraqi economy. Advantages are clear: Food
rations keep people out of poverty. Disadvantages include the following. First, the fiscal cost of the
program is large. The Iraqi Ministry of Finance estimates that the PDS will absorb 5.7 percent of the
general budget in the year 2009, corresponding to ID 4,200 billion (US$3.5 billion). Second, the PDS has
distortionary effects on the structure of domestic food market prices and hence on the allocation of
resources within the country. Third, although the PDS is an important safety net, its role is accomplished
inefficiently, mainly because of the absence of targeting.
Given its crucial role, PDS reform has been hotly debated in Iraq in past years, and the issue is currently
under scrutiny as part of the government’s effort to design a broader national development strategy. A
variety of proposals have been put forth previously, but their assessment is made difficult by a lack of
data that prevents the use of adequate methods of analysis. For instance, to estimate how the Iraqi
economy would react if the PDS were changed/eliminated one could rely on computable general
equilibrium (CGE) models. These are ubiquitous in policy analysis. However, CGE analysis is currently
not an option for Iraq because of lack of suitable data.
I hope this answer is helpful to u
Please mark it brainiest answer
anushka2451:
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