Populist Welfare Politics and Social Security in India
Election-bound Bihar has announced a significant pension increase for the elderly, widowed, and disabled, highlighting a trend of populist welfare globally, including in India. These initiatives provide short-term support but raise questions about the need for a more unified, rights-based social security system. With over half of India's population under 28, there's an urgent need for sustainable social security that can empower the young and support the elderly by 2047.
Current Challenges and Opportunities
- The International Labour Organisation (ILO) has noted India's extensive social protection schemes, covering over 100 crore beneficiaries due to numerous central and state government initiatives.
- India's social protection coverage was revised from 24.4% to 48.8% by the ILO after considering state-level programs, illustrating data challenges and inefficiencies in the current system.
- The need to optimize scattered schemes by eliminating duplications and investing in capacity building and market-ready skills is critical.
- Reimagining direct transfers as self-multiplying instruments, such as extending pension benefits to educational allowances, is a potential solution.
Proposed Solutions
- The G20 New Delhi Declaration advocates for sustainably financed universal social protection coverage, suggesting a "One Nation, One Social Security governance" approach.
- Current inefficiencies can be addressed by utilizing digital platforms, like the Digital India Stack and the Aspirational Districts Programme, and drawing from initiatives like PM-Gati Shakti.
- Central acts like the Employees’ Provident Funds & Miscellaneous Provisions Act provide a framework for security across federal boundaries.
- The EPFO and ESIC serve as robust mechanisms that can strengthen the transition to a unified welfare system.
International Examples
- Brazil's Unified System of Social Assistance (SUAS) and South Korea's consolidation of welfare programs under national institutions offer models for India to consider.
Road to "Viksit Bharat" by 2047
India's ambition to be "Viksit Bharat" by 2047 relies on financial security and a unified social security governance model that is federated, flexible, and incentive-driven. Political consensus and robust governance reforms could transform India's social security landscape significantly.