Social Security Strategy

  

𝚂𝚝𝚛𝚊𝚝𝚎𝚐𝚢 𝚏𝚘𝚛 𝚙𝚛𝚘𝚖𝚘𝚝𝚒𝚗𝚐 𝙸𝚗𝚗𝚘𝚟𝚊𝚝𝚒𝚘𝚗 𝚊𝚗𝚍𝙴𝚗𝚝𝚎𝚛𝚙𝚛𝚒𝚜𝚎 𝚒𝚗 𝚊𝚗 𝚎𝚡𝚙𝚘𝚗𝚎𝚗𝚝𝚒𝚊𝚕 𝚠𝚘𝚛𝚕𝚍:

 

For India to flourish, it needs to innovate, compete and give full space for entrepreneurship. This alone will help in wealth generation in an integrated world. This would require reforms in all sectors. This would involve change in all sectors. These reforms are bound to have resistance from those who perceive losing out in the short term. Reform measures invariably has to get across the resistance - active or passive - of a few with entrenched interests. A connect between reforms and progress needs to be perceived by the majority to give impetus to it in a democratic polity. 

The (neutral) citizens may not be supportive of the reform measures when they do not see a direct connection between their lot and the reforms. However, it is not an option to give them free doles to keep them engaged as in a Universal Basic Income. There needs to be a system which addresses this challenge of engaging all of the population in the right way along with ensuring security to them. This would also mean that they are stakeholders in free enterprise, competition and innovation promoting reforms.

Technology and finance are changing at an exponential pace. The productivity of the society has been improving alongside. It is said that the improvement in productivity has been exponential after 1850. The productivity increasing exponentially is seen to lead to exploitation of natural resources at a scale which is surely not sustainable. If every Indian and Chinese start using the amount of energy that is presently being used in US, the climate challenge would explode.

The improvement in productivity has not been uniformly spread - resulting in rising inequality. The productivity at present, is in itself sufficient and more to serve sustainable quantum of products and services to the whole population without requiring all of the population to be in the economic production cycle – leading to depravation due to lack of purchasing power even when resources are available. The productivity can be even higher if sectoral and structural reforms are made. However, this would alter the present scheme of security for various sections of population. 

This position makes any reform effort difficult to execute as various stakeholders are status quoist because of thier vested interest. The note tries to argue for a modified system which will provide for social security, dignity, productivity and equity even as the nation moves to strength by undertaking factor market reforms and other structural reforms in various sectors. These reforms are needed for India to be an assured power in the coming age where all of its population are stakeholders.

To confidently go ahead on the high productivity path, India needs a safety net for those who are unable to keep pace. This safety net is presently sought to be provided, in the rural areas, as 100 days of wage employment to those who are willing to do unskilled labour in the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). However, the natural selection of the needy with the condition of doing unskilled labour has the following issues.

1. Loss of Skill -Those exercising the safety net are forced to do unskilled labour even if they are skilled. This leads to their skills not being honoured, conserved, promoted or newly developed. The mandate of doing unskilled labour hampers the productivity of the population which had been left behind in the productivity race – condemning them to more of inequality

2. Unproductive expenditure- For the same expenditure in the rural employment guarantee scheme, much more rural assets could have been created. The work estimates are on the higher side because of the labour component being mandatory. These assets could have been achieved much cheaper with machines.

3. Possibility of graft- Work estimates are inflated as being done using unskilled labour. The asset gets made at a lower cost using machines and the booking gets done in the name of labour. This results in the benefits of the scheme being targeted to undeserving, especially in villages where social schism is more pronounced.

4. Dignity issues: For selection of the needy, the condition placed is of doing manual unskilled labour. Selection could have been made in a more dignified manner by providing for skilled labour, if possible at least, with a wage which is at a lower level. The Minimum Wage acts as a detriment to full employment. Here the safety net would provide for a de facto Minimum Wage at which full employment is guaranteed with the resources of the State. Without this employment guarantee, the enforcement of Minimum wage  leads to unemployment!

5. Sustainability of assets made in MGNREGS: Presently assets in the scheme are made with the premise that the scheme is to provide for unskilled labour. In many cases, the required material component is not provided for. This results in the lowered sustainability of assets that are created in the scheme.

6. Lack of convergence: Engagement to people is provided for by the State under other State schemes as well. However, there is no unified tracking mechanism for the engagement that is provided by the State. In extreme cases, it is found that some individuals are given more than possible employment when all schemes are put together.

 

7. There are disabled individuals who might not find engagement easily even when they are skilled. Stand-alone works are not possible in MGNREGS. The present guidelines provide for support roles for the disabled. However, this is not possible on occasions where there are not many people who are able bodied asking for work.

 

Proposal

 

The proposal is for a scheme which has the following attributes

1. Guaranteeing at least 40 hours of wage engagement every week for every adult.

2. Unskilled wages will be offered. Wage level will be sufficient for sustenance but below the Minimum Wages rate (as provided in present MGNREGS)

3. The time offered by the citizen can be used for skilled labour, unskilled labour or a skill training program. In exceptional cases, it could even be used to promote social causes or for counselling.

4. The objective of the program will be to skill the person to a level where she or he can migrate to the skilled wage rate available in the economy without being dependent on the scheme.

 

5. Rather than define this as an entitlement, such a dispensation may be made conditional to the citizen being collaborative to development oriented reforms. 

 

Challenges

 

1. The present MGNREG Act provides for unskilled labour: Though the body of the Act provides for wage employment to those willing to do unskilled labour and does not explicitly provide that skilled labour is not to be given, the schedule of the act has a clear mention that unskilled labour is to be provided. This would require amendment.

 

2. The present act mandates that assets are to be created: The primary intention here seems to be ensure that there is more productivity as a result of the expenditure incurred in the Act. It could also be to ensure that the work is actually done rather than just booking unproductive expenditure. This could be replaced by a mandate to do building of productive assets as much as possible. We now have technology which can monitor skilling programs and skilled/unskilled work even when they are not leading to concrete assets. This improvement in technology could be leveraged.

3. The resources required for the scheme would be very high: A back of the envelope calculation to provide for 20 days of 100 Rs wage to 1 billion people leads to the figure of Rs. 24 lakh crores for 12 months. But if the unemployment rate is taken to be 10 percent it would be around Rs. 2.4 lakh crores. This would be provided converging the engaging platform with other schemes where people are engaged. Providing for the material component required, the required provision would come up to Rs. 4 lakh crores.

 

Way forward

 

It is suggested that the MGNREG Act is suitably amended to provide for the scheme as:-

1. It already has a provision which overrides Minimum Wages Act, which would be required to act as a natural selection for the beneficiary.

2. There is a machinery already in place for execution right up to village level

3. The present form of NREG is having the difficulties as brought out above.

A suitable group may be asked to look into the formulation of a suitable scheme after consultation with all Stakeholders. The aim of the scheme should be to provide for a stake to all citizens in the reform measures in the interest of enterprise, innovation and competition.

 

Social Health Clubs

 Concept Note on Social Health Clubs

 

Introduction:

 

This note tries to lay down the conceptual framework for Social Health Clubs in educational institutions. Social Health Club is designed as an intervention that would create a platform for thought and action where the health of the society as a whole is advanced without commercial distractions.

 

Background:

 

The challenges in the space of ensuring good health are changing. From fighting diseases, the attention has rightly moved to preventive and promotive health. At the same time, non-communicable diseases have increased calling into question the lifestyle choices that society can make. A suboptimal way of life has gained social sanction and commercial currency. The new generation is exposed to an exponential and volatile world in which the presence and impact of narcotic drugs and alcoholism are increasing. The need to be not swayed away by the modern lifestyle from the traditional and healthier alternatives needs emphasis.

 

Structure Proposed:

 

A social health club would be an association of students, with teachers and parents as patrons in the educational institutions. The body would be having the focus on the social aspects of health in which the health of individuals is influenced by social factors rather than biological factors.

 

The club can decide on its bye-laws and identify the activities it wants to take up to promote the course of social health.

 

The structure and subscription for the club in an educational institution would be decided in a decentralized manner. Model bye-law for the club is Annexure-1 and is only recommendatory. It is also envisaged that there would be some mode of interaction and collaboration between the social health clubs in the educational institutions at the cluster, district, state, national and international levels achieved through annual conferences and social media groupings.

 

Activities proposed:

 

The activities that would be taken up by the club are to be decided by the club in a decentralized democratic manner. Various competitions like speech-making, poster-making, video-making, and debates could be organized by the clubs to advance the cause of health for society in a non-commercial manner. The objectives for the events like talks and interactions for the club are also suggested in the annexure.

A suggested pledge for the members of the club with which to initiate deliberations and activities also has been made annexure-2.

 

Incentivization:

 

The activities of the Social Health Clubs are envisaged to be low on budget and high on impact-done at a decentralized level. However, there could be some incentivization of the activities coordinated at the national, state and district, and cluster levels. This could include sponsoring prizes for the activities organized by the Social Health Clubs. This incentivization is sought to be done on a volunteer basis. At present, the organizations as in Annexure -3 have come forward to provide support and incentives for the Social Health Clubs. It is envisaged that the effort to mobilize support will be continued. Organizations, individuals, and Governments at all levels are sought to be pursued for suitable support for the effort.

 

Need:

 

Governments and markets have their unique difficulties in addressing an issue with social overtones. Governments are prone to be tied up to what is popular rather than what is true or required in the long run. Similarly, markets are driven by commercial considerations which may not be easy to accommodate in a sphere where the health of humans is the question and commodification cannot be the answer. Therefore, there is a need for action by Civil Society deliberated and guided in a transparent and accountable manner. The steps as required by markets and Governments would also require to be piloted by civil society action wherever possible.

 

How the effort can be supported? :

 

The first phase would be the communication regarding the concept to the decision-makers in educational institutions. All individuals can play a role in helping educational institutions make an informed choice in this regard - as a student, teacher, parent, or a well-wishing old student of an educational institution.

 

The next step could be pitching in to suggest and design activities for the clubs. The efforts made by the clubs would also need wide dissemination which would, in turn, improve the reach of the concept.

 

A third intervention could be financial support to the Social Health clubs by sponsoring some of their activities in a decentralized and direct manner.

 

The fourth form of support could be supporting the organizations promoting the concept by becoming a member or donating to the effort. The details of the organizations which have expressed support for the cause are in annexure-3.

 

The fifth form of support could be deciding on supporting the cause at an organizational level. To support the cause, the organization could be enlisted as a partner in the framework. The list of partnering organizations as of date is in annexure-3.

 

Conclusion: 

Through committed action by the community, there can be a difference in social spaces 

where governments can’t reach and markets don’t care. Those interested in supporting the cause may reach out at 3sandourhealth@gmail.com or  +91 83058 40890.