Photo: Ashok Sinha
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$1 Billion from World Bank to Protect India’s Poorest from COVID-19
– globalbihari bureau
New Delhi: Union Ministry of Home Affairs (MHA) has asked all states and union territories to facilitate “faster movement” of stranded migrant workers to their native places through buses and ‘Shramik’ special trains being run by the Government specifically for this purpose, an MHA release stated here on Friday.
The release claimed the MHA gave this instruction to all states and UTs on May 11 after taking note of the situation wherein migrant workers are walking on the roads and on railway tracks. “All States/UTs were advised that in case they are found in such condition, they should be appropriately counselled, taken to nearby shelters and provided with food, water, etc. till they are facilitated to board the ‘Shramik’ special trains or buses to their native places,” the release added.
However, as instances of migrant workers walking on roads, railway tracks and travelling in trucks are still being reported from different parts of the country, the MHA has again written to all States/UTs to ensure that these migrant workers do not have to walk back home. The communication states that Ministry of Railways is running more than 100 ‘Shramik’ special trains per day and is ready to arrange additional trains, as per requirement. “People need to be made aware about these arrangements and counselled by State/UT governments to not travel on foot, when they can travel in buses/trains being specially run by the government to facilitate their journey,” it stated.
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In the meantime, the government and the World Bank signed a $750 million of $1 billion agreement to support India’s efforts at providing social assistance to the poor and vulnerable households, severely impacted by the COVID-19 pandemic.
The deal will help accelerating India’s COVID-19 Social Protection Response Programme and takes takes the total commitment from the Bank towards emergency COVID-19 response in India to $2 billion. A $1 billion support was announced last month towards immediate support to India’s health sector.
A finance ministry spokesperson stated that this new support will be funded in two phases – an immediate allocation of $750 million for fiscal year 2020 and a $250 million second tranche that will be made available for fiscal year 2021.
The agreement was signed by Sameer Kumar Khare, Additional Secretary, Department of Economic Affairs, Ministry of Finance on behalf of the Government of India and Junaid Ahmad, Country Director, India on behalf of the World Bank.
Khare said that a strong and portable social protection system is critical to carry vulnerable households through the current and future crises. This programme will expand the impact and coverage of India’s social protection system by helping vulnerable groups access more social benefits directly and across the country.
The first phase of the operation will be implemented countrywide through the Pradhan Mantri Garib Kalyan Yojana (PMGKY). “It will immediately help scale-up cash transfers and food benefits, using a core set of pre-existing national platforms and programmes such as the ç (PDS) and Direct Benefit Transfers (DBT); provide robust social protection for essential workers involved in COVID-19 relief efforts; and benefit vulnerable groups, particularly migrants and informal workers, who face high risks of exclusion under the PMGKY,” the finance ministry stated. It added that in the second phase, the programme will deepen the social protection package, whereby additional cash and in-kind benefits based on local needs will be extended through state governments and portable social protection delivery systems.
Social protection is a critical investment since half of India’s population earns less than $3 a day and are precariously close to the poverty line. Over 90 per cent of India’s workforce is employed in the informal sector, without access to significant savings or workplace based social protection benefits such as paid sick leave or social insurance. Over 9 million migrants, who cross state borders to work each year, are also at greater risk as social assistance programmes in India largely provide benefits to residents within states, without adequate portability of benefits across state boundaries. Importantly, in an urbanising India cities and towns will need targeted support as India’s largest social protection programmes are focused on rural populations.
Junaid Ahmad said that the response to the COVID-19 pandemic around the world has required governments to introduce social distancing and lock downs in unprecedented ways. These measures, intended to slow down the spread of the virus have, however, impacted economies and jobs – especially in the informal sector. India with the world’s largest lockdown has not been an exception to this trend. In this context, cash transfers and food benefits will help the poor and vulnerable access a ‘safety bridge’ towards a time when the economy will start to revive.
The programme will create a system that will strengthen the delivery of India’s safety nets program. It will:
- Help India move from 460 plus fragmented social protection schemes to an integrated system that is fast and more flexible, acknowledging the diversity of needs across states;
- Enable geographic portability of social protection benefits that can be accessed from anywhere in the country, ensuring food, social insurance and cash-support for all, including for migrants and the urban poor; and
- Move India’s social protection system from a predominantly rural focus to a pan national one that recognizes the needs of the urban poor.
Ahmad said that the COVID-19 pandemic has also put the spotlight on some of the gaps in the existing social protection systems. This programme will support the Government of India’s efforts towards a more consolidated delivery platform – accessible to both rural and urban populations across state boundaries. The platform draws on the country’s existing architecture of safety nets – the PDS, the digital and banking infrastructure, and Aadhaar – while positioning the overall social protection system for the needs of a 21st century India. Importantly, such a system will need to leverage India’s federalism enabling and supporting states to respond quickly and effectively in their context.
Of the $1 billion commitment, an immediate allocation of $750 million for fiscal year 2020 of which $550 million will be financed by a credit from the International Development Association (IDA) – the World Bank’s concessionary lending arm and $200 million will be a loan from the International Bank for Reconstruction and Development (IBRD), with a final maturity of 18.5 years including a grace period of five years. The remaining $250 million will be made available after June 30, 2020 and would be on standard IBRD terms. The programme will be implemented by the Ministry of Finance.[the_ad_placement id=”sidebar-feed”]
