Source: www.nytimes.com
JHABUA, MADHYA PRADESH, INDIA, August 8, 2010: Ratan Bhuria’s children are curled together in the malnutrition ward, hovering at the edge of starvation. His daughter, Nani, is 4 and weighs 20 pounds. His son, Jogdiya, is 2 and weighs only eight.
Landless and illiterate, drowned by debt, Mr. Bhuria and his ailing children have staggered into the hospital ward after falling through India’s social safety net. They should receive subsidized government food and cooking fuel. They do not. The older children should be enrolled in school and receiving a free daily lunch. They are not. And they are hardly alone: India’s eight poorest states have more people in poverty — an estimated 421 million — than Africa’s 26 poorest nations. Roughly 42 percent of all Indian children under the age of 5 are underweight and death from malnutrition is common.
India’s ability, or inability, in coming decades to improve the lives of the poor will very likely determine if it becomes a global economic power, and a regional rival to China, or if it continues to be compared with Africa in poverty surveys.
This persistent inability of the food distribution system has sparked an ideological debate. Should the country begin to unshackle the poor from the inefficient, decades-old government food distribution system and try something radical, like simply giving out food coupons, or cash?
The food system has existed for more than half a century and has become riddled with corruption and inefficiency. Studies show that 70 percent of a roughly $12 billion budget is wasted, stolen or absorbed by bureaucratic and transportation costs.
“The question is whether there is a role for the market in the delivery of social programs,” said Bharat Ramaswami, a rural economist at the Indian Statistical Institute. “This is a big issue: Can you harness the market?”