World Bank praised India's policies for the poor amid the pandemic, said other countries also took such steps - Newztezz Online


Wednesday, October 5, 2022

World Bank praised India's policies for the poor amid the pandemic, said other countries also took such steps

According to the World Bank, cash transfers to the poor are more beneficial than subsidies and India has been successful in reaching cash to the poor present in large parts of the country.

The World Bank has appreciated the steps taken by the Government of India for the poor and needy people during Kovid . Not only this, the World Bank has advised countries around the world to take such special steps for the poor like the Government of India. The Indian government had focused on digital cash transactions instead of subsidies during the pandemic. Earlier, praising the decision to provide free ration to the people, the international organization had said that India did not allow food inflation to affect the poor of the country due to this step.

World Bank praises India

World Bank President David Malpass said on Wednesday that the way India has provided help to the poor and needy people during the Kovid-19 pandemic crisis is extraordinary. Malpass, while releasing the Poverty and Mutual Prosperity Report, said that other countries should also take steps like India to transfer cash to the poor instead of massive subsidies. He said that the biggest price of the epidemic had to be paid by the poor people. Poverty increased in poorer countries and led to economies that are more informal, social security systems that are weaker and financial systems that are less developed, he said. Despite this, many developing economies achieved remarkable success during Kovid-19.

What affected the World Bank

The President of the World Bank said that through digital cash transfer, India was successful in providing food and cash support to 85 percent of the households in rural areas and 69 percent of the households in the urban area, which is remarkable. On the other hand, South Africa made the biggest expansion in social security coverage and spent $ 6 billion on poverty relief, benefiting about 29 million people. He pointed out that Brazil succeeded in reducing extreme poverty in 2020 despite the economic downturn and this was made possible by the family-based digital cash transfer system. Malpass said the country should opt for cash transfers aimed specifically at the poor, rather than broad subsidies. It is more effective in terms of supporting the poor and vulnerable groups. More than 60 per cent of the expenditure on cash transfers reaches 40 per cent of the lower class people.

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