Debating a shift from PDS to cash transfers

This is a part of a series of articles on the proposal to shift from PDS to coupons or cash transfers. To see the introduction, click here. Another strong argument for coupons or cash is that the recipients will have the choice to spend it on what matters most to them. Proponents of reform have argued that the Indian policymakers tend to be paternalistic, and often argue that if the government gives cash instead of grains, poor people may misuse it, including by drinking it away. They have argued that it’s important to trust poor people to make choices that matter […]

Coupons and cash transfers give people a choice unlike the ...

This is a part of a series of articles on the proposal to shift from PDS to coupons or cash transfers. To see the introduction, click here . Some scholars have pointed out that the motivation to dissolve the PDS comes from the ideological belief that the government should not be engaged in providing public services, and of course the material appeal this has for the rich. The quest for PDS reform started in the context of India’s liberalization and globalization. Pushed by multilateral agencies, the PDS was converted into a targeted system in 1997. The motivation of these reforms was not […]

The politics of PDS “reforms”

This is a part of a series of articles on the proposal to shift from PDS to coupons or cash transfers. To see the introduction, click here . In evaluating alternatives including cash transfers, it is first important to identify both contributions and failures of the system. Proponents of reforms today have focused exclusively on the problems, without dwelling on the things that it has done. There is a reason why the PDS is so popular in Tamil Nadu, Kerala, Andhra and increasingly in other states including Chhattisgarh. In all these cases the PDS has worked and means a lot to the […]

The PDS does not work, let’s shift to coupons or ...

This is a part of a series of articles on the proposal to shift from PDS to coupons or cash transfers. To see the introduction, click here . Many have argued that half the PDS entitlements reach the “non poor”. I believe that resources are scarce, and the government should spend the money on people who need it most. We should thus be concerned if resources are being spent on those who do not need it. In considering whether resources reach the right people, we should remember that we have a rather poor system of identifying the poor. The poverty-line based on […]

PDS does not reach the right people, let’s shift to ...

This is a part of a series of articles on the proposal to shift from PDS to coupons or cash transfers. To see the introduction, click here . Please read other articles in this topic before getting here… The cost of administering the PDS is high Some economists have pointed out that the cost of administering the PDS is very high, and it is now possible to transfer cash to people at a cheaper rate. This is one of the strongest arguments for a shift from PDS to cash transfers, in my opinion. The amount of money that could be transferred just […]

Shifting from PDS to coupons or cash transfers: Assorted arguments

This is a part of a series of articles on the proposal to shift from PDS to coupons or cash transfers. To see the introduction, click here . The level of corruption in the public distribution system has been one of the rallying points in the cry for change. The following are some of the corruption related arguments for change: There is large scale corruption in the system It is undeniable that there is a lot of corruption in the PDS, and something needs to be done about it. In arguing that we should shift from PDS to coupons or cash transfers, […]

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