Direct Benefits Transfers

For government schemes, a path to dignity for the poor

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Direct Benefit Transfer (DBT) JAM Trinity

Mains level: DBT's success

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Key Highlights:

  • India’s Direct Benefit Transfer (DBT) system lauded globally as a “logistical marvel.”
  • DBT utilizes digital infrastructure to directly transfer government scheme benefits, covering 310 schemes across 53 ministries.
  • The JAM Trinity (Jan Dhan, Aadhaar, and Mobile) post-2017-18 maximized DBT’s impact.

Dignity of the Poor:

  • DBT’s overlooked benefit is its preservation of the dignity of the poor.
  • Without corruption or leakages, DBT eliminates the need for the poor to parade for government benefits.
  • Shift in approach—government benefits reaching the poor directly without intermediaries.

Poverty Perspectives and Historical Context:

  • Discussion on poverty perspectives, referencing Michael Young’s “The Rise of The Meritocracy.”
  • Challenge to the prevailing view that poverty is an individual’s fault, offering an alternative, rights-based approach.
  • Advocacy for understanding poverty from an individual rights perspective and addressing historical contexts.

Rights-Based Approach to Poverty:

  • Recognition of basic security rights for citizens regarding food, shelter, and health.
  • Emphasis on shared societal responsibility for poverty, especially by the rich and elite.
  • Contrast with technical solutions, highlighting the need to work with the poor.

Preserving Dignity in Design:

  • Importance of not just providing benefits but also considering how they are delivered.
  • DBT as a mechanism that ensures rightful benefits reach the poor while preserving their dignity.
  • Elimination of the poverty parade with the government reaching the poor.

Replicating DBT Success:

  • Suggestion to replicate the DBT design in other areas, with a focus on the judiciary.
  • Reference to the judiciary’s challenges and an appeal to ensure justice reaches the poor efficiently.
  • Call for collective efforts to address complex problems.

Challenges:

  • Unquantifiable nature of preserving dignity makes it challenging to measure its impact.
  • The need for broader societal shifts in perspectives on poverty and shared responsibilities.

Key Phrases:

  • JAM Trinity (Jan Dhan, Aadhaar, and Mobile)
  • Poverty parade
  • Rights-based approach
  • Shared societal responsibility
  • Technical solutions vs. working with the poor
  • Veil of ignorance (Rawlsian perspective)
  • Dignity preservation in program design

Critical Analysis:

  • Emphasis on the overlooked aspect of preserving dignity brings a unique perspective.
  • The article challenges prevailing views on poverty, advocating for a rights-based approach.
  • DBT is presented as a successful model, but challenges of replicating its success are acknowledged.
  • The article connects poverty perspectives with societal responsibilities and justice delivery.

Key Examples and References for quality enrichment of mains answers: 

  • Michael Young’s “The Rise of The Meritocracy”
  • The Tyranny of Experts by William Easterly
  • Reference to the judiciary’s challenges and the appeal of the first woman tribal President.

Key Data and Facts:

  • 310 government schemes across 53 ministries utilize DBT.
  • Estimated savings of 1.14% of GDP attributed to DBT.
  • 79,813 cases pending before 34 judges in the judiciary.

Key Terms:

  • Direct Benefit Transfer (DBT)
  • JAM Trinity
  • Rights-based approach
  • Poverty parade
  • Veil of ignorance
  • Shared societal responsibility

Way Forward:

  • Advocacy for applying DBT’s success in other sectors, particularly the judiciary.
  • Acknowledgment of complexity but a call for collective efforts to address challenges.

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