‘T.N. can set an example by making migrants’ lives simpler’

Developmental economist Jean Drèze, a member of the just lately constituted Economic Advisory Council to the Chief Minister of Tamil Nadu, is obvious that the State should deal with complete social safety. Besides, with Tamil Nadu being one of many important locations of migrant staff from India’s poorer States, he says if the federal government is ready to do one thing to make their lives simpler, it is going to be an example for the entire nation. In an e-mail interview, Mr. Drèze, who sits on the council with Nobel laureate Esther Duflo, former RBI Governor Raghuram Rajan, former Chief Economic Adviser to the Union authorities Arvind Subramanian and former Union Finance Secretary S. Narayan, shared his ideas on how doing extra to help the poor will assist revive the financial system within the midst of the COVID-19 pandemic. Edited excepts:

Can you inform us what you anticipate from this train and the way you got here to be a part of the primary Economic Advisory Council to the Chief Minister of Tamil Nadu?

I used to be approached by Tamil Nadu Finance Minister Palanivel Thiaga Rajan. Initially I used to be a little bit hesitant, partly as a result of I do know so little about Tamil Nadu’s financial system. The State already has a really competent State Development Policy Council, and an glorious financial report ready final yr by a high-level committee headed by [former RBI Governor] C. Rangarajan. I doubt that Tamil Nadu wants a lot recommendation from Ranchi [where he is based]. Still, I agreed to affix for an preliminary interval of 1 yr. Hopefully, the council will be capable of convey a contemporary perspective of sure points, drawing on the current analysis and experiences throughout India and the world.

What can be the main target and purpose of this council?

The phrases of reference are pretty broad. The first merchandise is “economic and social policy, social justice and human development-related issues”, with a particular deal with deprived teams. But, in fact, the council’s work must be selective. The important factor, I feel, is to determine points on which we can give some helpful recommendation, given our respective domains of competence and in addition our areas of settlement. For occasion, I feel that each one of us will agree concerning the urgency of doing extra to help poor folks on this disaster. That would additionally assist to revive the financial system. Of course, it might require some useful resource mobilisation.

Are there particular sectors that would want quick consideration since financial exercise has severely been affected by the pandemic and the lockdown?

Any sector that generates mass employment wants consideration. In Tamil Nadu, this would come with textiles, building, agriculture, software program, electronics, the leather-based business and so forth. But I’m not certain that the council is nicely positioned to enter sector-specific financial insurance policies, versus wider proposals. For occasion, migrant staff want consideration throughout sectors. Tamil Nadu has change into one of many important locations of migrant staff from India’s poorer States. They are among the many worst victims of the present disaster. If Tamil Nadu is ready to do one thing to make their lives simpler, it is going to be an example for the entire nation.

Successive governments in Tamil Nadu have pursued welfare-based financial insurance policies for a few years efficiently. How do you suppose welfare politics might be pursued throughout a pandemic-induced financial catastrophe and at a time when the State appears to have misplaced its fiscal powers previously few years?

Tamil Nadu has been a pioneer in lots of welfare schemes and social safety insurance policies, from faculty meals and old-age pensions to maternity advantages and neighborhood canteens. The COVID-19 disaster is making issues troublesome proper now, however I hope that Tamil Nadu will proceed to play a number one function on this subject. In reality, one of many important classes of the present disaster is that India wants a extra strong social safety system. Despite being comparatively nicely developed, Tamil Nadu’s social safety system nonetheless has many gaps. For occasion, the protection of old-age pensions continues to be fairly low, and so is that of maternity advantages. Aside from consolidating the prevailing programmes, some new initiatives could also be required for complete social safety. For occasion, a well-designed system of emergency money transfers can be fairly helpful on this state of affairs of recurrent crises, which can final for years. And, in fact, public well being should obtain much more consideration than it has already obtained in Tamil Nadu. Public expenditure on well being is simply 0.6% of the State Domestic Product…that appears far too low. As far as useful resource mobilisation is anxious, many invaluable options can be found within the Rangarajan Committee report. The query is how a lot can be achieved earlier than the financial system revives and, in fact, be sure that the burden falls primarily on the privileged.