Gist of EPW October Week 4, 2021

The Economic and Political Weekly (EPW) is an important source of study material for IAS, especially for the current affairs segment. In this section, we give you the gist of the EPW magazine every week. The important topics covered in the weekly are analyzed and explained in a simple language, all from a UPSC perspective.
TABLE OF CONTENTS

1. Economic Impact of COVID-19-induced Lockdown on Rural Households
2. The Hunger Conundrum

1. Economic Impact of COVID-19-induced Lockdown on Rural Households

Context

The article analyses the economic repercussions of the lockdown during the pandemic of 2020 on rural households focusing on change in consumption, labour and income, healthcare and migration.

Note:

The data provided are specific to the survey on six states: Jharkhand, Andhra Pradesh, Rajasthan, Bihar, Uttar Pradesh, and Madhya Pra­desh. The observations made on the pandemic-lockdown phase fit on a pan-India scale which is backed by the six-states survey. 

Introduction

• The pandemic caused numerous families to lose their family members and also added economic adversities.
• The labourers were left without any source of income as the return of the migrant labourers might have subjected the household to financial strain due to the disruption of possible remittances.
• During the lockdown, food insecurity was one of the biggest challenges that arose. 
• As per data, 30% of the rural households reported some form of food insecurity, either running out of food or limiting their food intake.

Consumption Patterns and Poverty Line Shifts 

• The World Bank estimates confirm that the pandemic led to 97 million more people being in poverty in 2020 around the world with 58 million of them being from South Asia.
• In India, the low consumption expenditure accelerated the share of rural households below poverty during the lockdown. 
• Around 46% of the households were below the poverty line during the lockdown, and as of September 2020, almost 50% of the households were still below the poverty line. 
• UP and MP had a high share of such households in July, with over 60% of the rural households below the poverty line.

The Labour Market Crash

• The arrival of migrant workers into ­rural areas enlarged the rural labour force.
• The labour market was unable to absorb this excess labour, thereby leading to the deterioration of labour market conditions in rural areas.
• Non-agricultural Households
  • In March, 18% of the respondents were not working for income. 
  • The statistic increased substantially to around 50% during the lockdown, which came down to 37% in September.

Relief Packages

• The Government of India announced a number of relief packages to lessen the economic impact of COVID-19. 
• The relief amount provided was Rs 1.70 lakh crore for 800 million people through the direct benefit transfers under the Pradhan Mantri Garib Kalyan Yojana.
• It also included Rs 20 lakh crore as part of the economic recovery package.
• The wage rate under the Mahatma Gandhi National Rural Employment Guarantee Act was increased and 5 kg free wheat or rice to each registered beneficiary per month under the PDS were also provided.

Image source: EPW

Coverage of Relief Packages w.r.t Rural Households

• Cash and bank transfers from the government were received by nearly 60% of the rural households in April, with households from AP and Bihar being the highest proportion receiving the transfers.
• In April, at least 50% of the households from each of the states received the transfers.
• The variability in state-wise coverage and the monetary amount transferred could be attributed to some states announcing their own support schemes.
• UP had the highest median amount of cash transfer received by individuals at Rs 1,320.
• The World Bank report highlights the higher monetary assistance from these schemes to the richer households suggesting a blot on the effi­ciency of such monetary support schemes.

Effectiveness of Public Distribution System

• PDS ensures food security for the country and in the covid times, it emerged as an effective set-up.
• 75% of rural households received at least one basic food item for free from the ration shops in May.
• In June, the proportion rose significantly to 92% when households reported receiving items such as rice, wheat, pulses, etc, for free from PDS

Role of Self Help Groups

• SHGs also played a major role in providing a variety of relief services to rural households such as dispersing information about government monetary support schemes, manufacturing and distribution of personal protective equipment, and running community kitchens.
• The bank sakhis have had a considerable role in facilitating poor ­rural women to access the government relief packages conferred to them.
• 20% of the rural households reported that SHGs were involved in activities like manufacturing and distribution of COVID-19 protection equipment as well as disseminating information on COVID-19-related health practices.

Migration

• The states (under the survey) had around 60% of the total mig­rants back home in May.
• In July, the situation reversed, with all states having more than 60% of total mig­rants back at home.

Image source: EPW

Health and Awareness

• 80% of the rural households in September knew at least one of the three main symptoms of COVID-19 (cough, fever or difficulty in breathing).
• The estimates of Rajas­than and Jharkhand suggest that there was a slight increase in the proportion of households having awareness about the symptoms compared to the levels in May.
• While the awareness regarding COVID-19 symptoms was around 80%, the knowledge of preventive practices was about 90% across the six states in September.

Conclusion

• The pandemic-induced lockdown has impacted the lives of people in many ways. People have witnessed emotional and material losses.
• In order to understand the reality of the socio-economic shocks, recent data would be a better way to concur.
• The government should gather the necessary data to engage in data-driven policymaking to calculate the damage caused.

2. The Hunger Conundrum

Context

The article highlights the food security condition and challenges in the light of India’s GHI (Global Hunger Index) Ranking.

Introduction

• India has ranked 101 on the Human Development Index 2021 prepared by the United Nations Development Programme in the Human Development Report 2021, out of 116 countries.
• The countries are classified into five categories, namely low, moderate, serious, alarming, and extremely alarming.
• GHI scores are mainly based on four component indicators, that is, undernourishment, child wasting (too thin), child stunting (too short), and child mortality.
• The categorization is based on the intensity of the food deficit; the report slots India in the serious category. 
• The trends, however, show that India’s GHI scores have steadily improved by close to one-third in the last two decades but it lags behind countries like Ethiopia, Kenya, Mongolia, Myanmar, Vietnam.

Present Indian Scenario

• The trends in the level of wasting in children below five years have been similar, with the earlier gains now coming under a growing threat of reversion.
• The recent trends in the stunting of children have been more positive, with the numbers moving down from around 50% at the start of the millennium, it is still at an unacceptably high level of around 35% now. 
• In child mortality figures, there has been a steady and significant improvement, with the numbers now slipping to around one-third of the peak level of 10%.
• The determinants of malnutrition are multifactorial. There is more to it than just the availability of basic cereals as is being claimed by the Indian government.

Key Takeaways

• India’s gains have been marginal in the last two decades as reflected in the trends in the four component indicators.
• India’s share of the global population is only 18%, its share of the population affected by hunger is disproportionately larger. 
• The country’s share of anaemic women in the reproductive age group is a substantial one-third of the global numbers pointing to extensive gender discrimination.
• India’s food policies have failed to adequately respond to the growing nutrient needs of the people and meet the challenges of the changing times. 

Government’s Efforts

• The government has been implementing programmes to improve the availability of pulses and edible oils, primarily guided by the objective of reducing imports. 
• The government’s active interventions have tripled the yield of nutritious crops like finger millets and contributed to food security. 
• The government has also made efforts to protect children from the harmful impact of food marketing such as by conducting promotional campaigns that have promoted exclusive dependence of breast milk for infants to around 55%.

Conclusion

• The education level of women and income of households affect the nutrition levels majorly alongside factors like breastfeeding and antenatal care. 
• Food policies should include the supply of nutrient-rich food through the public distribution system.

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