An original and effective model to eradicate poverty in India- Un modèle original et efficace pour éradiquer la pauvreté en Inde

In the article from the Economic Times whose link is below, William Bissell, the Managing Director of FabIndia, a famous brand of sustainable Indian products (cloths, furniture, decoration…), gives us several guidelines to eradicate poverty from India, and struggle against corruption at the same time, thanks to the use of new technology.

I personally found this article very interesting because it solves the 2 major problems of India with 4 clear solutions, quite easy to implement from my point of view.  

First of all, create a citizen’s database with a unique ID number to be able to know exactly the recipients of social benefits and to avoid fraud.

Second of all, dematerialize the economy, taking into account that India’s informal economy, which is a loss of taxes, represents between 70% and 150% of the formal economy! Besides, a cashless economy wouldn’t ease the corruption: it is very easy to give a bill to a policeman on the street, not to wire him money on his bank account.

With those two first solutions, it’ll be easier to track and target social grants to the right people.

Third of all, create vouchers for the Indians below the poverty line, for them to be provided the six  basic needs: nutrition, drinking water, healthcare, education, legal assistance and sewage disposition. The fixed face value of the voucher would be multiplied, when encashed by the provider, by the quality of services rating. This will encourage the providers, such as schools or hospitals, to improve their services, and receive more money (thanks to the received vouchers) from the government if they do so.

Finally, allow and regulate intangible assets such as water, biodiversity and forests, with a system of credit as well. City residents, who would need to get those intangibles from rural communities, where the majority of those assets and poor people are,  will transfer wealth to the non haves.

In addition, it will encourage rural communities “to preserve, sustain, and develop these resources”.

But at the end of the article, William Bissell points out this ”dream” requires “a leadership with vision and will”.

Whatever the decisions that will be made, we can congratulate William Bissel for such a brilliant logical and pray for those solutions to be implemented by the Indian Government.

http://economictimes.indiatimes.com/opinion/comments-analysis/William-Bissell-Fabindia-Once-each-citizen-has-a-unique-ID-its-simple-to-track-welfare-measures/articleshow/12105182.cms