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We support cash transfers such as old age pensions, widow pensions, maternity entitlements and scholarships. However, we oppose the government’s plan for accelerated mass conversion of welfare schemes to UID-driven cash transfers. This plan could cause havoc and massive social exclusion. We demand the following:
1. No replacement of food with cash under the Public Distribution System.
The PDS is a vital source of economic security and nutrition support for millions of people. It should be expanded and consolidated, not dismantled.
2. Immediate enactment of a comprehensive National Food Security Act, including universal PDS.
Instead of diverting the public’s attention with promises of mass cash transfers before the 2014 elections, the government should redeem its promise to enact a National Food Security Act (NFSA).
3. Cash transfers should not substitute for public services.
While some cash transfer schemes are useful, they should complement, notsubstitute for the provision of public services such as health care, school education, water supply, basic amenities, and the PDS. These services remain grossly under-funded.
4. Expand and improve appropriate cash transfers without waiting for UID.
There is no need to wait for UID to expand and improve positive cash transfer schemes such as pensions, scholarships and maternity entitlements. For instance, social security pensions should be increased and universalized.
5. No UID enrolment without a legal framework.
Millions of people are being enrolled for UID without any legal safeguards. The UIDAI’s draft bill has been rejected by a parliamentary standing committee. UID enrolment should be halted until a sound legal framework is in place.
6. All UID applications should be voluntary, not compulsory.
UID should never be a condition for anyone to access any entitlements or public services. A convenient alternative should always be available.
7. UID should be kept out of the PDS, NREGA and other essential entitlement programmes for the time being.
Essential services are not a suitable field of experimentation for a highly centralised and uncertain technology. Other applications (e.g. to tax evasion) should be tried first.
Explanatory Note:
Why we Oppose the Rush to Cash Transfers and UID
We support cash transfers such as old age pensions, widow pensions, maternity entitlements and scholarships. In fact, many of us have been part of struggles to expand social security pensions and improve their delivery. We also support appropriate, people-friendly uses of modern technology for this purpose.
However, we have serious reservations about the government’s rush to link these cash transfers to “Aadhaar”, the unique identity (UID) number. This is because the linking of these schemes can cause huge disruption – think of an old man who is currently getting his pension from the local post office, but will now have to run around getting his “UID-enabled” bank account activated and then may find his pension held up by fingerprints problems, connectivity issues, power failures, truant “business correspondents”, and what not.
We are also firmly opposed to the introduction of cash transfers in lieu of food and other commodities supplied through the Public Distribution System, for many reasons. One, subsidized food from the PDS is a source of food and economic security for millions of poor families. In 2009-10, implicit transfers from the PDS wiped out about one fifth of the “poverty gap” at the national level, and close to one half of it in states like Tamil Nadu and Chhattisgarh. Recent experience also shows that it is possible to further revamp and reform the PDS without delay.
Two, the banking system in rural areas is not ready to handle large volumes of small transfers. Banks are often far and overcrowded. The alleged solution, banking correspondents, is fraught with problems. Post offices could possibly be converted into useful payment agencies, but this will take time.
Three, rural markets are often poorly developed. Dismantling the PDS would disrupt the flow of food across the country and put many people at the mercy of local traders and middlemen.
Four, there are concerns of special groups such as single women, disabled persons and the elderly who cannot easily move around to withdraw their cash and buy food from distant markets.
Last but not least, inflation could easily erode the purchasing power of cash transfers. When the government refuses to index pensions or NREGA wages, how can it be trusted to index cash transfers to the price level? Even if some indexation does happen, small delays or gaps in price information could cause significant hardship for poor people.
The Kotkasim fiasco is a telling example of the potentially disruptive effects of inappropriate cash transfer schemes. The experiment was launched with much fanfare and immediately projected as a “stunning success” based on the fact that kerosene subsidy expenditure had declined by 80%, but in fact, the main reason for this decline was the collapse of the entire kerosene distribution system.
An impression has been created that the government is all set to launch UID-enabled cash transfers on a mass scale before the 2014 elections. This is very misleading, and looks like an attempt to make people rush to UID enrolment centres. This announcement also diverts attention from the government’s failure to enact a National Food Security Act. The food security bill, very weak in the first place, has been languishing with a Standing Committee for a whole year. Meanwhile, food stocks are accumulating on an unprecedented scale. The need of the hour is a comprehensive National Food Security Act, not a potentially disruptive rush for UID-driven cash transfers.
List of Signatories
Sunil Abraham, Centre for Internet and Society
Pushpa Achanta, Writer
Bina Agarwal, Professor, Institute of Economic Growth
Samantha Agarwal, Activist, Raipur
Ankita Aggarwal, Researcher, New Delhi
Ashutosh Agrawal, Student
Anivar Aravind, Entrepreneur, Technology Manager
Chirashree Das Gupta, Ambedkar University
Indu Agnihotri, Director, Centre for Women’s Development Studies
Sohail Akbar, Associate Professor, Jamia Milia Islamia
Evangeline Anderson-Rajkumar, United Theological College Bangalore
Janki Andharia, Tata Institute of Social Sciences
Sadhna Arya, University of Delhi and Saheli Women’s Resource Centre
K.V. Nagesh Babu, Assistant Professor, Tata Institute of Social Sciences
Amiya Kumar Bagchi, Vice Chancellor, Tripura University
Megha Bahl Student, Faculty of Law, University of Delhi
Arindam Banerjee, Jawaharlal Nehru University
Arindam Banerjee, Assistant Professor, Ambedkar University
Sreshtha Banerjee, Social Activist
Sanjay (Xonzoi) Barbora, Tata Institute of Social Sciences (Guwahati)
Kripa Basnyat, PWESCR, Programme on Economic, Social and Cultural Rights
Moushumi Basu, Associate Professor, Jawaharlal Nehru University
Akansha Batra, Junior Research Fellow, Indian Statistical Institute
Anjali Bhardwaj, Satark Nagrik Sangathan
Bharat Bhatti, Student, Ambedkar University
Kiran Bhatty, Senior Fellow, Centre for Policy Research
Praful Bidwai, Journalist
Ramila Bisht, Associate Professor, Jawaharlal Nehru University
Arudra Burra
Kathyayini Chamaraj, Journalist
C.P. Chandrashekhar, Professor, Jawaharlal Nehru University
Sarika Chaturvedi, Ph D scholar, Karolinska Institute, Sweden
Aheli Chowdhury, JOSH, Delhi
Arati Choksi, People’s Union for Civil Liberties, Bangalore
Gowru Chinnapa, Bangalore
Priti Darooka, PWESCR, Programme on Economic, Social and Cultural Rights
Jitu Das, Alghanim Industries
Asit Das
Anirban Dasgupta, South Asia University
Jashodhara Dasgupta, National Alliance for Maternal Health and Human Rights
Saurav Datta
Ashwini Deshpande, Professor, Delhi School of Economics
Ritu Dewan, Mumbai University
Nikhil Dey, Mazdoor Kisan Shakti Sangathan
Harish Dhawan, Associate Professor in Economics, University of Delhi
Arundhati Dhuru, National Alliance of People’s Movements
Gabriele Dietrich, National Alliance of People’s Movements
Sarah Dobinson, PWESCR Programme on Economic, Social and Cultural Rights
Jean Drèze, Visiting Professor, Allahabad University
Ajit Eapen
Warisha Farasat, Lawyer
Jayati Ghosh, Professor, Jawaharlal Nehru University
Kaveri Gill, Independent researcher
S. S. Gill, Director General, CRRID, Chandigarh
Paranjoy Guha Thakurta, Journalist
Aashish Gupta, Research Assistant, Allahabad University
Ruchi Gupta, National Campaign for People’s Right to Information
Zoya Hasan, Professor, Centre for Political Studies, Jawaharlal Nehru University
Neeraj Hatekar, Professor, Department of Economics, University of Mumbai
Rohini Hensman, Independent scholar and author
Himanshu, Assistant Professor, Jawaharlal Nehru University
Danish Husain, Actor
Indira C, Researcher Public Health, Delhi
Kaveri Rajaraman Indira, Concern, Indian Institute of Science
Jaya Iyer, Khadya Nyaya Abhiyan
Devaki Jain
K.P. Jayasankar, Professor, Tata Institute of Social Sciences
Praveen Jha, Jawaharlal Nehru University
Sadan Jha, Assistant Professor, Centre for Social Studies, Surat
Ravinder Jha, Miranda House, University of Delhi
Rajiv Jha, Shri Ram College of Commerce, University of Delhi
Amrita Johri, Satark Nagrik Sangathan
Sunny Jose, Associate Professor, Tata Institute of Social Sciences
Aleesha Mary Joseph, Student, St. Stephen’s College
Deep Joshi
Vijay Lakshmi Joshi, People’s Union for Civil Liberties
K. P. Kannan, Chairman, Lawry Baker Institute of Habitat Studies, Thiruvantanthapuram
Anirban Kar, Associate Professor, Delhi School of Economics
Ashok Khandelwal, Economist
Madhulika Khanna, Researcher, New Delhi
Sushil Khanna, Indian Institute of Management Calcutta
Reetika Khera, Assistant Professor, Indian Institute of Technology, Delhi
Asha Kilaru, Public Health Researcher, Bangalore
Ashish Kothari, Kalpavriksh
Subasri Krishnan, Filmmaker
Kavita Krishnan, CPI(ML) Liberation
Abhay Kumar, Karnataka
Richa Kumar, Assistant Professor, Indian Institute of Technology, Delhi.
Awanish Kumar, Ph.D. Scholar, Tata Institute of Social Sciences
Madhuresh Kumar, National Alliance of People’s Movements
A.K. Shiva Kumar, Economist
Lawrence Liang, Alternative Law Forum
Kamayani Bali Mahabal, Advocate
Neeraj Malik, University of Delhi
Anubhuti Maurya, Bharati College, University of Delhi
Surajit Mazumdar
Indrani Mazumdar, Centre for Women’s Development Studies
Bhanwar Meghvanshi, Dalit Adivasi Aur Ghumantu Adhikar Abhiyan, Rajasthan
Subhash Mendhapurkar, SUTRA, Himachal Pradesh
Aggie Menezes, Associate Professor, St Xavier’s College
Mira Mehta, Department of Nutrition and Food Science, University of Maryland
Kalpana Mehta, Manasi Swasthya Sansthan, Indore
Ritambhara Mehta, Independent Researcher
Nivedita Menon, Professor, Jawaharlal Nehru University
Rajkishore Mishra, Orissa
Srijith Mishra, Associate Professor, Indira Gandhi Institute of Development Research
Gautam Mody, Secretary, New Trade Union Initiative
Mritiunjoy Mohanty, Professor, Indian Institute of Management, Calcutta
Sanat Mohanty, Associate Professor, Indian Institute of Technology, Delhi
Anjali Monteiro, Professor, Tata Institute of Social Sciences
Vipul Mudgal, Inclusive Media for Change, Centre for the Study of Developing Societies
Prakriti Mukerjee, Yoda Press
Poonam Muttreja, Population Foundation of India
Tithi Nandy, Healthwatch Forum Uttar Pradesh
R. Nagaraj, Professor, Indira Gandhi Institute of Development Research
Farah Naqvi, Writer and Activist
Sudha Narayanan, Assistant Professor, Indira Gandhi Institute of Development Research
Rajendran Narayanan, Visiting Scientist, Indian Statistical Institute
Arvind Narrain, Alternative Law Forum
Saboohi Nasim, Assistant Professor, Aligarh Muslim University
Balaji Narsimhan
Nandini Nayak, School of African and Oriental Studies, University of London
P. Niranjana, Assistant Professor, Tata Institute of Social Sciences
V.P. Niranjanaradhya, National Law School of India University
Claire Noronha, Collaborative Research and Dissemination
Madhurima Nundy, Institute of Chinese Studies
Gangaram Paikra, Right to Food Campaign, Chhattisgarh
Parthapratim Pal, Associate Professor, Indian Institute of Management Calcutta
Sandeep Pandey, National Alliance of People’s Movements
Soma Kishore Parthasarathy, PhD scholar, Indian Institute of Technology Bombay
Medha Patkar, National Alliance of People’s Movements
Prabhat Patnaik, Retired Professor, Jawaharlal Nehru University
Utsa Patnaik, Retired Professor, Jawaharlal Nehru University
Boban V. Paul, NGO professional
Pamela Philipose, Director, Women’s Features Services
Neetha Pillai, Senior Fellow, Centre for Women’s Development Studies
Dr Prabir, Independent Consultant, West Bengal
Pranesh Prakash, Law and Policy Researcher
Mythri Prasad, Researcher, French Institute of Pondicherry
T. V. H. Prathamesh, Research Scholar, Indian Institute of Science, Bangalore
Raghav Puri, Independent Researcher
Pushpendra, Director, Centre for Social Studies, Surat
Kalyani Raghunathan, Ph.D. Scholar, Cornell University
Annie Raja, National Federation of Indian Women
Jawahar Raja, Advocate, Delhi
Suvrat Raju, Reader, International Centre for Theoretical Sciences, Mumbai
R. Ramakumar, Associate Professor, Tata Institute of Social Sciences, Mumbai
Kannama Raman, Associate Professor, University of Mumbai
Usha Ramanathan, Legal Researcher
Ashish Ranjan, Birla Institute of Technology, Patna
Bharat Rastogi, Graduate student, University of California Santa Barbara
Savitri Ray, FORCES Network, Centre for Women’s Development Studies
Mohan Rao, Professor, Jawaharlal Nehru University
E. Rati Rao, People’s Union for Civil Liberties Karnataka
Vidya Rao, Jain Vishva Bharati Institute, Rajasthan
D. Narsimha Reddy, Chair Professor, NIRD, Hyderabad
Rammanohar Reddy, Editor, Economic and Political Weekly
Dr. K. Srinath Reddy
Ira Regmi, Student, Lady Shri Ram College for Women
Rohit, Assistant Professor, South Asia University
Aruna Roy, Mazdoor Kisan Shakti Sangathan
Saheli Women’s Resource Centre Sahyogi, Patna
Preeti Sampat, Independent Researcher
Meera Samson, Collaborative Research and Dissemination
Sunil D. Santha, Assistant Professor, Tata Institute of Social Sciences
Radha Kant Saxena, People’s Union for Civil Liberties
Sukla Sen, EKTA (Committee for Communal Amity), Mumbai
S. Seshan
Sudeshna Sengupta, Mobile Crèches
Mitu Sengupta, Centre for Human Development and Human Rights, New Delhi
Prem Krishan Sharma, President, People’s Union for Civil Liberties, Rajasthan
Saurabh Sharma, JOSH, Delhi
Veena Shatrugna, Former Deputy Director, National Institute of Nutrition
Jeevika Shiv
Dr. Mira Shiva, Initiative for Health & Equity in Society
Rama Shyam, Tata Institute of Social Sciences
Aditya Shrivastava, Advocate
Shankar Singh, Mazdoor Kisan Shakti Sangathan
Bhanwar Singh, Astha
Mahipal Singh, National Secretary, People’s Union for Civil Liberties
Paramjeet Singh, People’s Union for Democratic Rights
Surjit Singh, Director, Institute of Development Studies, Jaipur
Dipa Sinha, Ph.D. Scholar, Jawaharlal Nehru University
Shantha Sinha, National Commission for the Protection of Child Rights
Ahmed Sohaib, Jamia Teachers’ Solidarity Association
Gautam Sonti
Vivek Srinivasan, Stanford University
Nisha Srivastava, University of Allahabad
Ravi Srivastava, Professor, Jawaharlal Nehru University
Shambhavi Srivastava, Graduate student, University of British Columbia
Kavita Srivastava, National Secretary, People’s Union for Civil Liberties
Sulakshana, Right to Food Campaign, Chhattisgarh
Nandini Sundar, University of Delhi
Mayur Suresh, Ph.D. Scholar, University of London
V. Suresh, General Secretary, People’s Union for Civil Liberties
Kamayani Swami, Jan Jagran Shakti Sangathan
Padmini Swaminathan, Tata Institute of Social Sciences, Hyderabad
M.S. Swaminathan, Member of Parliament, Rajya Sabha
Sharmila Tagore
Krishan Takhar, People’s Union for Civil Liberties
Vamsi Vakulabharanam, Reader, University of Hyderabad
Padma Velaskar, Professor, Tata Institute of Social Sciences
G. Vijay, Assistant Professor, School of Economics, University of Hyderabad
M. Vijayabaskar, Madras Institute of Development Studies, Chennai
Vimochana, Forum for Women’s Rights
Achin Vanaik, Retired Professor, University of Delhi
Sujata Visaria, Hong Kong University of Science & Technology
Bezwada Wilson, Safai Karamchari Andolan
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December 28, 2012 at 1:36 pm
UID is turning to be a monster in the democratic system of ours. Cash Transfers for not just PDS but I am also told that the government is going to start with Cash Transfers in all other subsidies they have been providing like LPG gas for instance. Cash Transfers in place National Food Security is a draconian act, we should all oppose it at any cost. There is a need to awake and make aware our citizens. Lets do it… UID without any legal framework should not be accepted. UID is also a threat to national security as many of the anti-nationals also would have made a UID card by now.