Download - MEH BMA Second Individual B12056
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Central Ordinance to Boost
Food Welfare in India
Individual Assignment
SUBHANKAR BARIK
XLRI BUSINESS MANAGEMENT
B12056SEC - A
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Question 1:-Study the history of Food welfare in India, and assess the current Bill against this timeline.
Study its legal, economic, psychological and sociological implications for the poor, the rural farmers, and the
general food grain markets of India, neighbouring countries, and of the world. Is welfare economics good for
India in the long run? Does it breed entitlement rights and failure of duty to be self-sufficient?
Past Food Welfare Current Food Welfare
India has given significant subsidy for food & kerosene inthe past also. A data of 2005 suggest that around 14% ofGDP is constituted by Subsidy. The amount of Money thegovernment is planning to spend in the future will be
significant.
All the previous food welfares were developed in themiddle of the tenure.
The current bill is a significant investment in the foosubsidy region because the price of most of the foograins is reduced by a significant amount
This is the first time the government has designed suca heavyweight investment in food just before election
Parameters Poor Rural FarmersGeneral Food
Grain Markets
Neighbouring
CountryWorld
Legal
There can be people
who will buy the
product as a poorperson and might sale
the product at high
price in the market
Rural farmers may be
forced to develop lotsof crops in the small
time period
The blackmarket
development in
the generalmarket could
make things
tough
There can be issues
regarding import &
export withneighbouring
countries
There is not
expected to be anylegal issues for the
different parts of
the world. Butglobal impact is
expected because
of really high
population
Economic
Poor people will
benefit economicallybecause of the reduced
cost of the food. They
can save more thanbefore and because of
the increased saving
the economicdevelopment is
expected to be high
Rural Farmers will get
incentive to producemore food product.
The massive
subsidy could
lead to the start
of a Black
market. Thiswould led to
some problemin general
market
In order to meet the
increased demand
due to low prices
food import isexpected from
neighbouringcountry
The overalldemand for food in
the world is
expected to
increases because
of the initiative inIndia. Other
countries alsoexpected to follow
the footsteps of
India
Psychological
Poor people will have
psychologically
positive viewregarding this
Rural farmers will feel
good about the current
change in the system
People may notlike the new
welfare because
of thesignificant price
difference
The neighbouring
country will like
the currentinitiative
The world will lov
the subsidy becaus
of lots of BPLpeople
Sociological
The social
development is
expected in the poorpeople community
Due to increased
incentive to work the
social development isexpected
There wont be
any sociological
impact on the
general foodmarkets
The neighbouring
country might get
more profit due toincreased demand
The overall social
development is
expected in theworld
Long Run Expectation:- The entire welfare system is not good for India in the long run because with increase in theamount of spending the government will find it difficult to fund all these extra spending. The government should expect
the budget deficit in the future to increase by significant amount. Increase in budget deficit the country may face problem
because of increased in amount of debt. The bond rating of the country may go down in the future.
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Entitlement Rights Failure of Duty
The entitlement theory suggests that each person has a basic right
to economic benefits and common thing offered to people.Because of the benefit generated by the welfare from the
government the economy is expected to be self- sufficient but in
the long the situation may change due to the influence of various
factors
The failure to duty is not a self-sufficient activity. If on
community gets all the benefits and doesnt work then it maput pressure on the other people. And these people may hav
to work more in order to compensate for the losses. This wil
create imbalance in the society
Question 2:- Study the Bill from a teleological perspective of costs and benefits to the largest number in
India. How do you assess it present and future costs and benefits for various stakeholders. Hence, is the Bill
ethical based on teleological grounds and why?
Stakeholder Cost Benefits
People who gets
Benefits
The food subsidy may make the people who gets this benefits towork less and this can hamper the overall economic growth of the
country
Sometime people get the subsidy and sell the product at a higherprice in the market. This kinds of activity actually hampers thepurpose of subsidy and make the demand and supply variation
difficult
People get economic
social benefits due
subsidy. The savings of t
people increases whi
increases consumption adevelopment of t
economy
People who doesnt
get Benefits
People who doesnt get benefit may not like the plan of thegovernment and they may end up not paying up taxes as a regularbasis
People usually buy stuffs from the black market which increasesthe burden on the society and also on the society
People in this segmen
actually face no benefand they face a lot
problems due to the poli
of the government whiactually put them in
difficult situation
Political Party
People who doesnt like the current policy may hate the currentpolitical party which implemented the same and this may create
problem in the future
Political party get votfrom the poor people w
actually constitute t
majority
Government
For the government the opportunity cost is really high becausethe same amount of money cant be invested in otherdevelopment related work like education, health and other
benefits
The budget constraint may affect the decision of government offuture growth. In case of a budget constraint all the spending
decisions are expected to be trade-offs
Government may investment a lot of money in the distribution ofthe subsidy. In the distribution process it is expected that some
people wont get proper benefit because the benefits cant bereached to these people in time and in terms of location
The government may gbenefits because they wwin the trust of the peop
for whom the benefit
entitled. The governme
can at the same tim
impose huge amount of tand other tariffs in order
raise money for fundi
the subsidy
Economy
Economy generate very less surplus because most of the productsare sold at a very low cost
Subsidy that are designed for a certain sector usually divertresources from one sector to other sector and this actually create
imbalance in the society
Subsidy has a transitional gain path where the immediate peopleactually gets benefits from the subsidy and the other people may
face difficulty and even end up paying more amount.
The economy is develop
in the sector where mo
subsidies is provided b
the other sectors the
wont be any benefits a
only cost is expected f
other sectors.
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Based on the overall analysis and future prediction it is expected that in the future also things will be difficult
because of the increased amount of year by year debt due to the huge subsidy amount. The current government
seems to be using the same strategy for winning the votes. Based on the teleological principle it is expected that the
cost is more than the benefits to the society. The future cost of the government will only increase. Instead of this
Government should think how they can improve the development across the entire sector in the economy. Based on
this it is not advisable to implement such a huge food welfare.Question 3 Study the Bill from a deontological perspective of rights and duties of the largest number in
India. How do you assess it present and future fulfilment of rights and duties in relation to various
stakeholders. Hence, is the Bill ethical based on deontological grounds and why?
Stakeholders Rights Responsibility
People who gets the Benefits
Every people have the rights to get the
basic need for human that is food, clothes
and shelter.
India around 70% of the people struggle
to earn 120rs per day this actually makeslife impossible for these people.
Even if the people in this category are poo
they have a responsibility towards th
country. Every person in the county shoul
work together in order to improve th
economy of the country. The poor people whare using the benefits of the subsidy shoul
use the subsidy and at the same time try t
save the leftover money. Since the basic nee
is accomplished they should concentrate moron getting work instead of just using th
benefits of the government
People who doesnt get
Benefits
People who dont get these benefits
actually are the people who earnsignificant amount of money. But the
people who just live at the cut off edge of
the government policy may face problem
because they wont be able to get the
benefits. People living in these segmenthas the right to enjoy the benefits by
government in terms of electricity, roads
& better infrastructure facility
The responsibility of people in this segment i
to make timely tax payments. These tapayments will be helpful in generatin
revenue for future development of th
country. These people should help th
government in implementing the policies s
that the overall growth of the economy can bachieved
Political Party
The political party has the right of
developing and implementing the
different policy for the country and for thepeople The political party has the right to
enjoy the benefits of being the policy
makers for the country
The political parties have the responsibility t
give tickets to the eligible candidates an
these people should make proper policies fothe benefits of the people. Political part
shouldnt make any decision just for the sak
of winning election or getting votes. Politica
party if they are not there in the critica
position should try their best to make sur
they support the government if the policy i
for the benefits of the people
Government
The government has the right to enjoy the
authority. The have the right to design the
policies for the country both in terms ofthe economy and in terms of the society
In India there are different kinds of peopl
staying in the country. It is very difficult fo
the government to satisfy all kinds of peoplat the same time. The policy of th
government should be made such a way tha
benefit should be there to the economy and a
the same time the benefit to a segmen
shouldnt be there if there is significan
amount of cost to other segment.
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The government has the rights & responsibility to develop policy for the benefits of the people but the most
important point is if the government is giving certain benefit to certain kinds of people but not to other kinds of
people this may create problem in the economy. The government should be responsible in treating everyone
equally and at the same time giving benefits to everyone so that overall progress in the economy can be
achieved. According to deontological principle the bill should not be passed because this is not for everybody
Question 4 Study the Bill from a distributive justice perspective of an equitable distribution of its costs
and benefits, rights and duties relative to the largest number in India. How do you assess thecost/benefits, rights/duties fulfilment profile currently and in the near future in relation to various
stakeholders. Hence, is the Bill ethical based on the principles of distributive justice and why? Which
Canons of distributive justice does it uphold, and which does it challenge, and why?
Stakeholders Current Near Future
People who gets benefits
Egalitarianism- The poor people have
the equal rights of accessing goods of life
that every rational person have. Since
India is an emerging country
The need for these people will only increas
in the future compared to the need of thes
people now. The increased need of thes
people will definitely be an important facto
in designing the policy for next year
People who doesnt get benefits
Utilitarianism- The people who doesnt
get the benefit of the food welfare
program by government are people who
are well placed economically compared
to other people. The government shouldthink in terms of satisfying the need of
these people.
The future scenario will be similar but wit
growing economy there will be lots o
people who will move out of poverty t
economically stable situation. Because o
these the need of the people will increasand in order to satisfy the increased nee
strong policy should be placed
Political Party
Fair Opportunism- The political partywho are in charge of the government
should not be granted social benefits
based on status. These people should betreated equally. The policy should reflect
their intention of serving the people
equally. They shouldnt influence the
policy based on their power and at thesame time shouldnt oppose the policy ofthe government if it works against them
In future the political party should thinmore about the people rather than the vote
The political party should think about th
long term benefit of the entire nation not othe short term benefits of their own party
The should chose real leaders to contest i
the election
Government
Well-being by Due Care The act of
government should serve the wellbeing
of all the people. The government should
carefully employ standards of due care.
The government should analyse the risk
and benefits of all the policy and based
on that the decision should be taken.
They just cant act in favour of one party
and at the same time make things tough
for the other people
Distributive Justice The government has t
justify their act. What society chooses to d
for one may be a function of what on
chooses to do for society. In the future th
distributive justice will be served if th
government is able to distribute the good
equally among everyone & justice states th
a distribution is just if all are entitled to th
holdings they possess under a give
distribution. The government should treat a
the people equally and they should do so fothe benefit of all the people. They cant b
selfish in this regard and they should thin
about the country and its people.
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Based on the distributive justice we conclude that the food bills should be passed for the benefit of people who
struggles to get their need getting fulfilled. It is very critical that government develop the policy such that
everyone is benefitted by the policy and it shouldnt be like that only one type of people is benefitted by the
policy. The food welfare should be there and at the same time government should take initiative in order to
develop the policy for other people who are not entitled to get benefits. If they do so then the food bill should
be passed in the parliament. The government should check the implementation of the welfare plan properly so
that this can reach to most of the people.
Question 5 Study the Bill from a corrective justice perspective. That is, regardless of its costs and
benefits, rights and duties fulfilled of the largest number in India, is the Bill correcting an unjust
distribution system prevalent in India, especially in relation to basic food amenities? How do you assess
it present and future costs and benefits for various stakeholders. Hence, is the Bill ethical based
corrective justice grounds and why?
Stakeholders Present Future
People who gets the benefit
If the people get the food welfare fromthe government then they will be
satisfied. But this will lead to increased
greed among the people and due to this
transaction these people will have theadvantage because they can buy the food
at a very low cost and they can sell the
same amount of food at the normal cost
to other people. By doing this people inthis category will generate profits from
the transaction. This will completely
imbalance the economy to a significant
extent and some people even if they have
sufficient income to afford the rice might
use fake certificate to proof that are in
need of the food
In future these kinds of activity is expecteto increase and this will lead to an difficu
situation for the country. The very reaso
why the subsidy was implemented won
be served if these kinds of activitcontinue in the future. We have seen th
evidence of this before also where there i
a development of black market which buy
the product at very low price and sell thsame to the people in need at
significantly higher price. Because of th
vastness of the country it will be difficu
to regulate the activity of everyone
People who dont get the benefit
The food welfare will put the peoplewho dontget benefit in a bad situation
since there is a definite probability of thedevelopment of the black market. The
people who dont get the benefit will try
to get the food from the black market.This will again makes things difficult for
the current market. Apart from these
people will be at dissatisfied stagebecause these people will be worse off
significantly.
In the future it is expected that people witry to complain against the injustice the
are facing because of the grant of the foobill. These people are expected to be i
trouble because government will cut th
public infrastructure & other benefits iorder to deal with the increased cost o
food welfare. These people are als
expected to pay significant amount omoney for tax purposes
Political Party
The political party will be at a bettersituation because of the transaction
because people in this category considersmaximum percentage of the voters and
winning their consensus the political
party will have nice chance of winningthe election next time.
In the future similar activity is expectefrom the political party and this wi
actually makes things tough for theconomy. The transaction will be i
complete favour of the political party an
the party should try hard to get as mucbenefits as possible from these
Government
The government will benefit from the
transaction specially if there is election
which is very near. The voters which
The government is expected to be refrai
from activity which is only meant fo
impressing people in order to build a bette
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constitute most of the beneficiaries of
welfare will think that government isdoing a great job
image among people. They should mak
policy which will benefit the people as whole not the ruling government
Based on doing the analysis on the corrective justice I came to a conclusion that many people will be at a
disadvantage if they implement this. The transactional injustice will be significant if the food welfare is
implemented in the near future. So I feel that this should not be implemented in the future.Question 6 Do you approve this bill based on Virtue Ethics, especially the virtues of prudence, justice,
and compassion? (See Chapter 05).
Virtue Ethics Decision
Prudence
The virtue of prudence stress upon the point that virtue of prudence can be practised by anyone. Th
prudence is based on the practical application of moral principle. The most important thing is to judg
based on the evidence at hand and take decision. From the issue we figured out that only one class o
the society will be helpful because of this decision and other class of the society might face problembecause of this. The government should think about all the classes in the society before making an
decision. The government cant make any decision in an isolated way because this will influence th
future of our country in a significant way. So in order to develop the country the government shoul
calculate the cost and benefit of the implementation of food welfare. Based on the analysis thgovernment should decide the outcome. The government should be futuristic in this case and it shoul
take into account all the intangible and tangible cost before making any decision. From the point o
view of Prudence I feel this should not be implemented at all because the cost is far higher than th
benefit to the society
Justice
The justice virtue is the medium between selfishness and selflessness. We have seen that due timplementation of the food welfare system there will be people who will use this as there benefit. Th
selfish people will use the subsidy to buy the product at a very low cost and they will sell it at a high
cost. The same thing is expected for people who will not get the benefit. It is expected that thespeople will pay less tax than the other people because these people wont like the subsidy policy o
the government because they feel that their tax should be used for the benefit of themselves no thbenefit of other. Now government is behaving as a selfless creature by donating significant amount o
money to people as food welfare. But from analysing the history of the country it is expected that al
the policies are implemented in the middle of the tenure not at the end. The selfless people like thoswho wish to donate for the benefit of the country may find it difficult in order make the proper use o
the donation because of the increasing risk of corruption to the country. From the justice point of viewthe policy regarding the implementation of the food welfare actually come to the extreme sides of ou
analysis. Since justice is something which is placed in the middle not In the extreme it is expected tha
from the point of view of justice this cant be implemented
Compassion
Compassion is the understanding for the sufferings of others. In India there are lots of people who livin below poverty line and that number is significant. These people dont even manage to earn Rs 40
per day. This makes life very difficult for these people because they can hardly eat something with
these kinds of earnings. India is an emerging country having a significant growth potential. So the
people should try to make sure the people in the below poverty line category should be lifted in orderfor the economy to start growing. We just cantneglect these people. The government should
implement the food welfare and it should distribute the food welfare among the people in a most fair
way so that everyone gets benefit of the distribution of the food welfare. The government should try
to reduce the middle man so that the corruption will be less in distributing the welfare to poor peopleand at the same time government should be cautious that there shouldnt be any black market
development because of the increase in the amount of subsidy provided to people.
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REFERENCES
India sets in motion the worlds biggest food subsidy programo Betwa Sharma
Chapter 2: The effects of subsidieso Subsidy primer
Cheap Food Plan Could Cost India Dearlyo By Anant Vijay Kala and Mukesh Jagota
WTO to discuss Indias proposal to hike food subsidy limits Deontological Ethics Britannica 16 biggest problems facing the Indian economy BREAKINGVIEWS - India grain subsidy may only outsource hunger
o By Andy Mukherjee What Food Security Bill means for India's subsidy burden
o By Dhanraj Bhagat RBI Database Principle of Distributive Justice How to implement Corrective Justice Corrective Justice in a Nutshell
Virtue Ethics
A Basic Introductory Essay, by Dr.Garrett Virtue ethics BBC Virtue ethics Internet encyclopedia Virtue Ethics
o First published Fri Jul 18, 2003; substantive revision Thu Mar 8, 2012 Prudence: A Cardinal Virtue ByScott P. Richert, Virtue of Justice
DOUG MCMANAMAN The Virtue of Compassion
DONALD DEMARCO
mailto:[email protected]://catholicism.about.com/bio/Scott-P-Richert-25677.htmhttp://catholicism.about.com/bio/Scott-P-Richert-25677.htmmailto:[email protected]