ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Sanjeev GuptaSubscribe to Sanjeev Gupta

On the Margins in the City

Seasonal labour migration has become an irreversible part of the livelihoods of rural adivasi communities in western India. This article examines the nature, experience and implications of such migration primarily to major urban centres for construction work. It goes on to suggest why those institutions mandated to protect vulnerable informal workers - labour departments, unions and the law - have largely failed to do so, and how in consequence adivasi migrants depend for their welfare upon agents, brokers and contractors who are also their most intimate exploiters. Finally the article suggests how adivasi labour migrants might be supported and describes a recent initiative in this regard.

Safety Nets and Implementation of Macroeconomic Adjustment Programmes

Social safety nets are critical for mitigating the costs of crises and adjustment programmes. This paper reviews best practices in the design and implementation of safety nets. The main lessons suggest that the following are critical: having safety net instruments in place before crises occur; information on vulnerable groups to facilitate targeting; levels of spending that are adequate for this task yet consistent with sound macroeconomic policy; and administrative capacity. In this context, food-based safety nets can be an attractive option when administrative capacity is scarce, as they are conducive to self-targeting. In assessing options for minimising the adverse effects of policies on the poor and the need for social safety nets, poverty and social impact analysis (PSIA) can be a useful policy tool. In general, there is scope for more systematic PSIA and more effective social safety nets to minimise the costs of crises and adjustment programmes. The evidence so far also suggests that there is room for improving the role of global food aid as an international safety net. Global food aid is well-targeted, but the size and timing of disbursements have not been appropriate for meeting shortfalls in domestic food supply in recipient countries.

Further Evidence on the Impact of Dairy Development Programme

Development Programme B Bowonder B Das Gupta Sanjeev Gupta S S R Prasad The impact of dairy development on nutrition and income has been a matter of great interest to policy-makers. At the same time it has been a subject of fierce controversy both in popular press as well as academic journals. The proponents of the dairy development programme feel that such. activity does indeed raise the level of income and hence, the nutrition of the rural poor As such the dairy development programme needs to be encouraged through positive government policy. In contrast its critics assert that spread of dairying in rural areas is leading to transfer of items of nutrition from the rural poor to the well-to-do in the urban areas. Even otherwise the contribution of dairy development programmes to incomes in rural areas is marginal.

Compensating Government Employees for Price Increase-Basis, Trends and Forecasts

Compensating Government Employees for Price Increase Basis, Trends and Forecasts Poonam Gupta Sanjeev Gupta Does the existing policy of dearness allowance (DA) payments compensate government employees for price increase without introducing distortions in the pay structure? Also, by how much wilt the liability of the govern- ment increase by the turn of the century if present trends in DA payments are maintained? In this paper, the recommendations made by various pay commissions and other bodies on DA since its inception are summarised to bring out the underlying rationale. This is followed by a discussion of the present trends in DA payments. Subsequently, forecast of such payments by the Union government as well as different state governments upto the year 2000 are made. Conclusions are drawn in the last section.

Inflation and Incentive to Invest in Capital Assets

in Capital Assets Poonam Gupta Sanjeev Gupta The purpose of this study is to estimate the marginal effective tax rates for different asset classes and change in user cost with inflation. Such calculations enable a study of the effect of inflation and other allowances like depreciation, investment allowance, etc, on incentive to invest. The results show that the effective tax rates in- crease with inflation but at a decreasing rate. Secondly, inflation increases the dispersion in the effective tax rates causing the tax system to become more non-neutral. A tax system is then suggested which is neutral and compensates for the price increases.

Estimates of Unreported Economy in India-A Reply

Estimates of Unreported Economy in India Poonam Gupta Sanjeev Gupta WE had in our paper [Gupta and Gupta, (1982)] presented estimates of the unofficial economy in India on a yearly basis for the period 1967 to 1978. For this purpose, we employed a technique suggested by Feigc [1979], that has been used to determine the size of the unreported economy in many developed countries including USA and Canada. The results had shown that the unreported activity as a proportion of official GNP has grown from 9.5 per cent in 1967 to nearly 49 per cent by 1978. In his comment, Sandesara [1982] argues that our estimates are on the high side. The purpose of this reply is to show that the theoretical basis of Sandesara's criticism is weak and his methodology inappropriate. Further, his analysis indicates a lack of understanding of the functioning of the unofficial economy. In the next section, we briefly summarise Sande- sara's analysis mainly to highlight its shortcomings. The last section gives the estimates of total economic activity (consisting of both official and unofficial) in India prepared by other researchers which point to the . fact that our estimates of unofficial economy are by no means over estimates.

Estimates of the Unreported Economy in India

This paper presents estimates of India's unofficial economy on a yearly basis for the period 1967 to 1978. These estimates implicitly revise the GNP, per capita and other related statistics for this period. The technique employed has been recently used to determine the size of the unreported economies in USA and Canada.
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