Brazil has the largest cash transfer scheme in the world and it has had a measure of success in fighting poverty. Its experience shows that cash transfers, when implemented properly, are at best a necessary condition for poverty alleviation. Supply side constraints have to be removed if the increased purchasing power is not to lead to unbridled inflation that will hurt the poor badly. While a case can be made for a cash transfer system in India, in the existing situation of an incomplete transition to a multi-level structure of government, with insufficient clarity on intergovernmental relations, and an overarching set of civil services fighting for turf at the union and state levels, it will be difficult for India to design suitable programmes.

Dear reader,

To continue reading, become a subscriber.

Explore our attracive subscription offers.

Click here