Wednesday, January 2, 2013

Direct cash transfer


Today is a significant day in the country with the rollout of direct cash transfer in 20 districts. There will be obstacles and misteps but definitely the right way. This should be spread across the country.

From a stage where only 10 ps out of 1 rupee reached the beneficiary any system that promises to do better should be welcome. Six decades since independence only the politicians and their cohorts have benifited with all the money that was spent under the social development programs.

Politicians will hate the sucess of the direct cash transfer since it will take away a significant leverage from their hands for attracting votes. They kept the citizens poor and used cash as a lure for getting votes. This will go away once citizens get independent with the direct tranfers and start thinking on their own. Basically this system will give self esteem to the poor. Till now the state and bureacracy have made the poor of the country miserable by throwing crumbs at them.

The direct cash transfer program is a technology led program and hence has more probability of success, we should just ensure that the required systems and processes around it are tight.

Well done Nandan Nilekani and team, this initiative is one of the surest way to eradicate poverty in the country. But will the political class kill it ?

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