Wednesday, May 11, 2011

Jean Dreze on Conditional Cash Transfers

Jean Dreze in an Indian Express article is not too gung-ho about cash transfers. He does raise some interesting issues. But, given the excitement of UID being a panacea for leakage issues, I see Cash Transfers being a reality pretty soon.


  1. Do u really think UID will be a panacea for the prevailing ineffective distribution systems...I do not want to sound radical but the UID is nothing more than an identity card (we will leave the debate of invading privacy to some other day), its just another document one can submit prior to opening a bank account or purchasing a sim card and similar mundane activities...the major flaw here is we are looking at cash transfers as a substitute to poor social security infrastructure which will increase the purchasing power of the poor and enable them to avail other expensive rightly said by Dreze CCT is just an incentive to make use of these infrastructure which is barely existent in many parts of our country

  2. There cannot be a single solution to poverty. The problems are too inter related and complex to advocate a single solution.
    Identity is a major issue.Opening a bank account is not a mundane activity. It is a really really important step for alleviating poverty.
    What CCTs assume is that it will create demand for healthcare and other services. It gives poor choice.The choice to select service providers. Once that happens, supply will set in. The provision of healthcare insurance has given rise to many private hospitals in mofussil towns who have a good business model.
    UID is essential for CCTs to happen.I am less inclined to believe that it will be a panacea for poverty alleviation.