As India was locked-down in late March due to COVID-19; one of the country’s key goals was to ensure access to food. With millions at risk of hunger, the government deployed the current Public Distribution System (PDS) to provide food supplies to more than 800 million people, thereby preventing a disastrous food crisis.
With coronavirus spreading exponentially across South Asia, food insecurity is just one of the many difficulties confronting the poorest and most vulnerable in the region. Most of them operate in the informal sector, which does not have any social security coverage. Many do not have any savings to make in tough times.
Missing only one day of duty will lead to drastic coping strategies; like skipping food, cutting back on medical insurance, or selling things. Too many, disadvantaged people make a tough choice: to protect their health or to save their livelihoods.
Built on platforms to provide assistance quickly
Over the past few months, all South Asian governments have received relief packages but have faced fiscal and operational obstacles to reach those vulnerable communities rapidly.
The effectiveness of the aid programs has traditionally been measured by the strength of current social security structures. Governments who have invested in social security distribution mechanisms; such as a consolidated beneficiary register or a centralized payment network, have been able to adapt easily and effectively.
In addition to growing food benefits, India has used schemes such as the Rural Employment Guarantee Scheme and PM Kisan to offer direct cash transfers to current beneficiaries. State governments have adopted a nationally defined regional identity scheme and social security distribution network to classify and access impacted households.
The Government of Pakistan has used the National Socio-Economic Database – which comprises approximately 80% of the population – to identify beneficiaries. In the case of non-registered individuals, enrolment and authentication are carried out within one week of the launch of the initiative via a biometric payment network connected to the National ID Registry.
Sri Lanka has taken the same route, using its Samurdhi cash transfer system to provide household relief. In both cases, either direct cash or postal services is used to preserve social distances.
Aid for social security and job development key to improve recovery
Social security services are key to successful economic growth, given that they meet the demands of both families and enterprises.
When families benefit from social security policies and through their incomes, their appetite for goods and services grows; fostering greater opportunities in small and large businesses.
Businesses will require access to capital to meet their wages and running costs. Governments may fund them by income increases, deferrals or exemptions for infrastructure or tax revenues, or work growth.
For example, Nepal is using an established system to create employment for those who have lost their livelihoods as a result of COVID-19. Likewise, Bangladesh focuses on improving the productivity of urban youth.
Looking at the long-term solution to the pandemic, we need to develop the resistance of poor households to present and future shocks.
