Syllabus
GS Paper 2 – Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes; mechanisms, laws, institutions and Bodies constituted for the protection and betterment of these vulnerable sections.
Context
In recent times, the use of direct cash transfer schemes for women has emerged as a significant trend in state election campaigns across India.
Source
The Hindu| Editorial dated 5th December 2024
Cash transfers for women
Maharashtra’s ‘Mukhyamantri Majhi Ladki Bahin Yojana’ and Jharkhand’s ‘Jharkhand Mukhyamantri Maiya Samman Yojana’ are two prominent examples. Both schemes promise financial assistance to women, with Maharashtra offering ₹1,500 per month and Jharkhand offering ₹1,000 to eligible women.
This growing popularity of direct cash transfers (DBT) has sparked debates about its implications for welfare policy, political motivations, and the future direction of social schemes. The question arises whether these cash transfers are a result of policy learning or political “fear of missing out”.
Increasing Political Influence of Women Voters
- Rising Female Voter Turnout:
- The female voter turnout has steadily increased from 47% in 1962 to 66% in 2024.
- This demographic shift has made women an increasingly crucial constituency in elections.
- Political parties can no longer afford to ignore women voters, as a swing in votes among women can decide the outcome of close elections.
- Women’s Political Mobilization:
- Women are no longer just passive participants in elections.
- They are increasingly casting votes independently, reinforcing the concept of a ‘women constituency’.
- This shift has led to political parties focusing on policies that directly benefit women.
- Government’s Response to Nari Shakti:
- The Nari Shakti narrative, popularized in the national discourse, reflects the growing recognition of women as a powerful political force.
- The government’s quick passage of the Women’s Reservation Bill is a testimony to this change.
- Incentives for Political Parties: With women becoming a decisive voting bloc, political parties are incentivized to offer targeted welfare schemes to secure women’s votes, as seen in the Mukhyamantri Majhi Ladki Bahin Yojana and Jharkhand Mukhyamantri Maiya Samman Yojana.
The Popularity of Direct Benefit Transfers (DBT)
- Efficiency and Reduced Leakages: DBT allows the government to transfer money directly to women’s bank accounts, bypassing traditional intermediaries or middlemen. This is seen as a way to eliminate systemic corruption, which often hampers the effectiveness of welfare schemes in India.
- Technology-Driven Relationship: The use of Aadhaar-linked bank accounts and direct transfers establishes a direct relationship between the individual and the state. This relationship is personal and technology-enabled, which some analysts refer to as “techno-patrimonial”, where the leader’s loyalty is reinforced by technology.
- Cost-Effective Political Strategy: Cash transfers, compared to infrastructure development or improving public services like schools and hospitals, are quicker to implement. They provide immediate relief to beneficiaries and serve as constant reminders of the benevolence of the government, enhancing the political capital of the ruling party.
- Political Loyalty Reinforcement: The repeated transfer of funds creates a regular connection between voters and the ruling party, reinforcing their loyalty, especially among marginalized communities who rely heavily on financial support.
The Appeal of Simplicity in Welfare Delivery
- Immediate Relief to Vulnerable Populations: Direct cash transfers are an effective way to provide immediate relief to poor women, particularly in states with high poverty rates. In the absence of immediate structural reforms, cash transfers act as a stopgap measure to alleviate financial distress.
- Overcoming Bureaucratic Challenges: Improving the functioning of public institutions, such as schools or hospitals, takes years of investment and planning. DBT, on the other hand, offers an immediate impact, which appeals to politicians seeking quick wins during election cycles.
- Reducing Dependence on Government Services: Cash transfers enable recipients to meet their basic needs through private sector solutions. However, this reliance on private alternatives raises concerns about inequities—while the rich have access to private services, the poor are expected to fend for themselves, undermining the role of the state in providing public goods.
- Political Branding: Regular transfers to women’s bank accounts can act as a constant reminder of the government’s commitment to welfare, reinforcing the narrative of the ruling party as a benevolent protector.
The Limitations of Direct Cash Transfers and Policy Homogenization
- Lack of Long-Term Solutions:
- While DBT schemes like Mukhyamantri Majhi Ladki Bahin Yojana and Jharkhand Mukhyamantri Maiya Samman Yojana may provide short-term financial relief, they do not address the structural causes of poverty.
- They fail to tackle deep-rooted issues like poor healthcare, education, and lack of employment opportunities.
- Policy Learning or Copycat Politics?
- The proliferation of similar schemes across states raises the question of whether this is a case of policy learning or merely fear of missing out (FOMO).
- The fact that both opposition-ruled and ruling parties are implementing similar cash transfer schemes suggests a lack of innovative welfare ideas and a reliance on populist measures.
- Shifting the Responsibility onto Individuals:
- Critics argue that DBT schemes shift the responsibility of welfare from the state to individuals, nudging the poor to rely on private sector solutions.
- This undermines the state’s role in providing essential services like education, healthcare, and public infrastructure.
- Political Exploitation of Welfare Programs:
- There is a concern that such schemes are more about electoral gains rather than long-term social reforms.
- Cash transfers, while politically attractive, may lead to vote-bank politics and further entrench populist politics rather than genuine development.
Conclusion
The growing popularity of direct cash transfer schemes for women reflects a broader trend in Indian politics where electoral considerations shape welfare policies. While DBT schemes offer immediate benefits, they cannot substitute long-term structural reforms that address the root causes of poverty and inequality. The challenge for policymakers will be to find a balance between immediate relief and sustainable welfare reforms that can provide lasting benefits to marginalized communities.
Related PYQ
Reforming the government delivery system through the Direct Benefit Transfer Scheme is a progressive step, but it has its limitations too. Comment. [ UPSC Civil Services Exam – Mains 2022]
Practice Question
Direct cash transfer schemes have become a prominent tool in Indian welfare policies. Critically analyze their advantages and disadvantages in addressing poverty and inequality. [150 words]
Guidelines for Answering the Question
- Introduction:
- Briefly define Direct Cash Transfer (DBT) schemes.
- Mention the growing popularity of DBT in India as a method to address poverty and inequality.
- Body:
- Set the tone by acknowledging the widespread adoption of DBT schemes in recent years.
- Mention advantages of DBT SchemesDiscuss disadvantages of DBT Schemes
- Acknowledge that while DBT has certain benefits, it should be viewed as part of a larger, more comprehensive approach that includes structural reforms.
- Conclusion:
- Conclude by highlighting that while global consensus on climate action remains difficult, India’s climate initiatives set an example for other nations and are crucial for meeting the long-term global climate goals.