Economic Survey: Social schemes need better thinking

India does not have an impressive reputation when it comes to human development. It ranks 134 among 187 nations in the human development index (HDI) compiled by the World Bank,  which takes into account life expectancy, basic education and standard of living. Noting that fact, the Economic Survey emphasises that strengthening grass-root level institutions is the only way to help the poor reap the maximum benefits of social-sector spending. The ‘demographic dividend’ that many experts keep talking about can only be reaped if the population is healthy and educated. [caption id=“attachment_245575” align=“alignleft” width=“380” caption=“Surprisingly, large portions of the survey’s chapter were congratulatory in  tone. Reuters”]  [/caption] Empowered grass-roots level institutions will help improve the efficiency of schemes like NREGA. In the chapter on human development, the survey highlights the need for financial inclusion in North-eastern India and the development of women. Financial inclusion primarily refers to the development of banking. However, as the survey note, banking can only be developed through development via planned investments. Surprisingly, large portions of the survey’s chapter were congratulatory in  tone, which surprising given the fact that India not only falls in the “medium development category” in the HDI, it also ranks eighth from the bottom on that list. For more on the Economic Survey’s chapter on Human Development, click here.