India introduces Social Security Bill

by aaditeshwar on Sep 11, 2007      Category: Governance Tags: india health governance

The Unorganised Sector Workers Social Security Bill 2007 was introduced in the Rajya Sabha on Monday. It provides legislative backing to all the social security schemes. These include the ‘Aam Admi Bima Yojana’, National Old Age Pension Scheme and the Health Insurance Scheme. The health insurance scheme has been formulated for below poverty line (BPL) workers and will cover six crore families progressively in the next five years. A provision has been made for issuing smart card, carrying a unique identification number, to each of these families.

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aaditeshwar

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nitiniitk's picture

An old age pension of Rs. 200 per month!! It's a joke. I wonder if there was any attempt to take feedback from people before formulating such policies. In general, a shortcoming in India is that people's opinion is not taken into consideration before making policies. It may be a hard thing to do, but is it infeasible? May be panchayat etc can play a role here.

aaditeshwar's picture

I don't think it's infeasible at all. I am sure that even without the Panchayat, the policy officials are reasonably well acquainted with the ground realities. But it is always this easy way to trick people and create political appeal through useless policies, which unfortunately a lot of the voting public cannot see through.

All the same, I think the health insurance policy is better and much needed. Something we should try to follow up as more information becomes available. Health has been cited as the most important factor that prevents people from emerging out of poverty!

Goli's picture

This is in response to nitiniitk, I think Rs. 200 per month is quite a lot of money. Still most of India lives in Villages and for a village couple getting 400 a month is quite a decent amount.

raghavmt's picture

Friends, there seems to be a lot of misconception about India and her villages. This is reflected in Goli's remark that for a village couple getting 400 a month is quite a decent amount. The value of money has gone down tremendously and 400 bucks a month is nothing even in the most backward village. A single simple meal alone costs Rs 10.

Friends, Indian bureaucracy has still not come out of that colonial mould and thereby makes such blunders in framing policies.....

nitiniitk's picture

Raghav being a very active full time social worker in the Braj region, he certainly knows more than I do.
If we do the maths, the money required for wheat/rice, potato, onion, salt, kerosene etc (the bare minimum you need), will be hard to cover in a couple of hundred rupees for a family of 4. Not to mention the hundreds of other expenses.. religious/family events etc. that even the poorest incur..

nitiniitk's picture

This comes as a surprise.. I wonder how health is the most important factor for poverty!! I would have thought education (that includes vocational skills).

aaditeshwar's picture

Surprising it is! Here's an old article about this: http://www.rediff.com/money/2005/dec/23poor.htm. Studies have analyzed the movement of households into and out of poverty, and apparently, illness and poor healthcare emerge as the dominant factors. There is also an ongoing project by Prof. Anirudh Krishna that analyzes these factors across 3 states in India: http://www.pubpol.duke.edu/krishna/rationale.htm. Btw: I am a big fan of this person. I have read a book by him, Active Social Capital -- Tracing the Roots of Democracy and Development, and the amount of work that he put into his research is phenomenal.

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