Opinion: A Decade Of Modi At The Helm - Changes In The Welfare State

From its philosophical roots to its modern-day applications, the concept of social welfare has undergone a significant transformation over the years, evolving in response to societal changes, economic impacts, and historical contexts. Initially, the welfare state was conceived as a response to the palpable issues of poverty and social injustice. This early phase was characterized by a focus on providing basic assistance to the 'deserving poor', often underpinned by moral judgments about the behavior and worthiness of the recipients. The interventions were primarily reactive, addressing immediate manifestations of poverty without delving into the underlying causes. The poor law, for instance, was based on the premise that poverty was a result of individual failings, leading to a system that provided conditional assistance aimed at moral reformation and deterrence.

Early philosophers like Thomas Hobbes and John Locke viewed the state primarily as a means of ensuring social order and protecting individual rights, but they did not emphasize the state's role in providing welfare. In contrast, later philosophers significantly expanded this view.

In the 20th century, John Rawls' theory of justice introduced the idea that social and economic inequalities should be arranged to benefit the least advantaged members of society. This principle, known as the "difference principle," argued for a redistributive role of the welfare state. Rawls' contemporary, Robert Nozick, offered a libertarian critique, arguing that a minimal state focused on protecting individual rights was just, and any redistribution beyond that was morally impermissible.

However, it was the ideas of British economist William Beveridge and American President Franklin D. Roosevelt that shaped modern welfare states. Beveridge's report in 1942 laid the foundation for the UK's welfare state post-World War II, proposing social insurance and state responsibility for health, education, and welfare to combat what he called the "five giants" - Want, Disease, Ignorance, Squalor, and Idleness.

Thus, the welfare state evolved into a more sophisticated and comprehensive system, driven by a growing recognition that poverty and social issues were not just individual failings but were deeply rooted in economic and social structures. This shift was marked by a broader, more inclusive approach to social welfare. The focus expanded beyond mere poverty alleviation to improving overall living conditions, with an emphasis on education, health, and housing.

After gaining independence, India faced significant challenges in public service delivery and social welfare. Despite the government's increased presence in social welfare and development, the delivery of basic services to the citizens was not efficient. A study found that even in 2012, Indian households lacked access to 46% of the basic services they needed. This was due to a variety of factors, including corruption, inefficiencies in the public sector, and a lack of adequate infrastructure and resources.

Public service delivery is intrinsically linked to the concept of social welfare, as it is through the effective delivery of public services that a state actualizes its social welfare objectives. These services, which include healthcare, education, social security, housing, and infrastructure development, are fundamental to enhancing the quality of life and well-being of the citizenry. The efficacy, accessibility, and quality of public service delivery directly impact the extent to which a society can address basic needs, reduce inequalities, and promote social justice. A well-functioning public service system ensures that social welfare policies are not just theoretical constructs but are translated into tangible benefits that reach all segments of the population, particularly the marginalized and vulnerable. Consequently, the quality of public services is often a barometer of a country's commitment to and the effectiveness of its social welfare agenda.

Rajiv Gandhi, the Prime Minister of India in the 1980s, famously stated that for every rupee targeted towards welfare and poverty alleviation, only a fraction, 15 paise, reached the intended beneficiary. This statement, while not based on empirical data, highlighted the significant leakage in the system and the large operating costs and overheads of public service delivery.

Over the past decade, the Narendra Modi government has made significant strides in transforming public service delivery and social welfare in India. One of the key initiatives has been the focus on financial inclusion and Direct Benefit Transfer (DBT), which has played a crucial role in ensuring that people have access to basic services with dignity. The Pradhan Mantri Jan Dhan Yojana (PMJDY), a national mission for financial inclusion, has brought more than 50 crore people into the formal banking system, serving as the fulcrum of people-centric initiatives like DBT. The DBT model has been hailed as a 'logistical marvel' by the IMF and has been instrumental in reducing leakages and curbing corruption. A G20 report prepared by the World Bank highlighted that India achieved its financial inclusion targets in just six years, a process that would otherwise have taken 46 years. The report also noted that the country saved USD 33 billion through the DBT system.

The DBT model has been instrumental in ensuring that welfare reaches the needy without the humiliation of a 'poverty parade'. By directly transferring funds to beneficiaries' accounts, the government has ensured transparency and dignity in welfare delivery.

In the health and education sectors, the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (PMJAY) has been a game-changer. Launched in 2018, PMJAY provides a health cover of INR 500,000 per family per year for secondary and tertiary care. The programme aims to reach the bottom 40% of the all-India population based on measures of deprivation.

In the past five years, the Narendra Modi government has significantly reformed the Indian education sector, with the landmark National Education Policy (NEP) 2020 replacing the 34-year-old education policy. This comprehensive policy revamps the entire educational structure, introducing a more flexible and holistic 5+3+3+4 school system focused on foundational literacy, numeracy, and critical thinking. In response to the COVID-19 pandemic, the government rapidly expanded digital education initiatives like PM eVIDYA and the DIKSHA platform, enhancing accessibility and continuity of education. Vocational education and skill development have been emphasized, integrating practical skills into mainstream education and bolstering employability through initiatives like Skill India. In higher education, reforms like the establishment of the Higher Education Commission of India (HECI) and the Institutes of Eminence (IoE) scheme are aimed at increasing autonomy, enhancing quality, and elevating global standing. Additionally, the government has fostered a culture of innovation through the Atal Innovation Mission and prioritized the internationalization of education with programs like 'Study in India'. Central to these reforms is the commitment to equity and inclusion, striving to bridge gender and social gaps, ensuring education is more inclusive and equitable across all levels. These transformative efforts mark a significant shift towards a more dynamic, skill-oriented, and globally aligned education system in India.

The Modi government has also focused on improving access to basic necessities. The Jal Jeevan Mission aims to provide piped water to all of India's 192 million rural homes by 2024. The government has also made significant strides in sanitation, installing 110 million toilets between 2014 and 2019, to provide sanitation for an estimated half a billion people. Access to electricity and clean fuel has also been a priority, with schemes like Ujjwala Yojana providing subsidized cooking fuel to poor families.

While much has been achieved, there is still a long way to go in terms of social welfare. The possibilities are limitless, and the government continues to work towards ensuring that every citizen has access to basic services and opportunities. However, it is important to continue these efforts to ensure that every Indian citizen can live with dignity and access the opportunities they deserve.

In a sequence of five columns, we will delve into the significant changes implemented by the Narendra Modi government over the past 10 years. Additionally, we will discuss strategies for the incoming administration, regardless of whether it's a continuation of the current party in power or a new one, to further enhance and build upon these reforms.

Bibek Debroy is the Chairman, Economic Advisory Council to the Prime Minister (EAC-PM) & Aditya Sinha is Additional Private Secretary (Policy & Research), EAC-PM.

Disclaimer: These are the personal opinions of the author.