Roadmap for Answer Writing

1. Introduction (50-60 words)

• Contextualize the Issue: Start by highlighting the current state of poverty reduction in India and the emergence of a newly non-poor population.
• Mention the NITI Aayog’s findings: Refer to the fact that 24.82 crore people have moved out of multidimensional poverty between 2013-14 and 2022-23 (NITI Aayog).
• Objective: Mention the need to reform India’s social protection system to address the vulnerabilities of both the newly non-poor and the chronically poor.

2. Addressing the Needs of the Newly Non-Poor (80-100 words)

• Emerging Vulnerabilities: Explain that the newly non-poor remain vulnerable to economic shocks and are at risk of falling back into poverty. These individuals need protection beyond just protective safety nets.
• Preventive and Promotional Measures: Stress the need for preventive mechanisms and promoting self-sufficiency, including expanding access to jobs and income-generating opportunities.
  • Fact: Social protection systems need to promote human capital development to reduce vulnerability.
• Expand Insurance Coverage: Highlight the low current usage of government social insurance programs and the need to expand them, including contributory pension schemes to reduce long-term poverty.
  • Fact: Only 4% of India uses government social insurance programs.

3. Addressing the Challenges of Chronic Poverty (80-100 words)

• Targeting Chronic Poverty: Chronic poverty continues to be a major issue, and India’s social protection systems must address it.
• Comprehensive Safety Nets: India needs to improve the reach of welfare programs like food security, healthcare, and income transfers to ensure the chronically poor are adequately supported.
  • Fact: While the newly non-poor need preventive measures, the chronically poor require sustained, long-term support through direct transfers and welfare schemes.
• Increasing Financial Inclusivity: Expand financial inclusion programs like microinsurance to cover more vulnerable sections of society.
  • Fact: Limited access to financial services remains a barrier to economic stability for the poor.

4. Recommendations for Structural Reforms (100-120 words)

• Public-Private Partnerships (PPPs): The limited financial resources of the government make PPPs a viable solution for expanding social safety nets.
  • Fact: PPPs can attract additional investments, enhancing the reach and effectiveness of social protection programs.
• Portability of Benefits: Ensure that social protection benefits are portable across states for migrant populations. This will provide economic stability and social security, especially for workers moving between regions.
  • Example: A migrant worker in Delhi should be able to access health benefits provided by their home state.
• Policy Integration: Recommend integrating the social protection framework with employment, health, and education policies to create a holistic system that addresses both vulnerability and poverty.

5. Conclusion (30-40 words)

• Summarize the importance of restructuring the social protection system to address the dual challenges of chronic poverty and emerging vulnerabilities of the newly non-poor.
• Highlight how these reforms will ensure inclusive growth, stability, and resilience for all socio-economic groups.

Relevant Facts for Answer:

1. NITI Aayog Report (2023): 24.82 crore people in India emerged out of multidimensional poverty between 2013-14 and 2022-23. This reflects a significant reduction in poverty, but these individuals are still at risk of falling back into poverty.
2. Current Social Insurance Coverage: Only 4% of India uses government social insurance programs, highlighting the need for an expansion of social security programs to provide more comprehensive coverage, especially for the vulnerable.
3. Public-Private Partnerships: The participation of the private sector through PPPs can play a crucial role in improving and expanding social protection systems by attracting a broader pool of investors, which would maximize the financial resources available for social safety nets.
4. Portability of Benefits: Migrant workers, who often face difficulties in accessing benefits from their home state, would benefit from a portable system that allows them to access entitlements wherever they live.
5. Chronic Poverty: Chronic poverty remains a persistent issue despite significant improvements. Social protection measures must be continuously adapted to ensure long-term support for the most vulnerable populations.