meh bma second individual b12056

8/13/2019 MEH BMA Second Individual B12056

1/8

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]

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