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Rahul Gandhi in conversation with Abhijit Banerjee
On May 4, the Congress party tweeted a 1.44-minute clip of their conversation and the full interview was released on Wednesday.
- News18.com
- Last update: May 5, 2020, 11:36 a.m. IST
New Delhi: In suggesting methods to help the poor combat the aftermath of the coronavirus blockade, Nobel laureate Abhijit Banerjee said on Tuesday that in situations like the one created by the pandemic, a nationalized Aadhaar card would have been beneficial to migrant workers, since It would have given them access to the free ration.
“I think the nationalization of Aadhaar would have been great now, especially for migrants. They could have gone to a PDS store in Mumbai and asked for ration. But right now they cannot do that. There is also, for example, NREGA. Migrants cannot demand employment in Mumbai, there is no NREGA there, “he said during a conversation with Congressman Rahul Gandhi.
The economist also suggested introducing a temporary rationing system for those in need and suspending other ration cards for now.
Banerjee made this statement in his interview with former Congress President Rahul Gandhi. Gandhi has been organizing a series of discussions with experts in economics and health.
When asked about the steps necessary to get the Indian economy out of the impact of the required coronavirus blockade, Banerjee said: “Many countries have introduced a stimulus package for small businesses. We still have to take concrete steps to do so. Moratorium on debt payments is a good move, but we need to do more. ”
Spending is the easiest way to revive the economy amid the Covid-19 crisis, he told the congressional leader, adding that a direct transfer to people to spend was a good way to guarantee this.
“The real problem in the short term is that these policies, good policies, implemented by the UPA are inadequate and the current government, in a sense, absolutely accepted them,” said Banerjee.
On May 4, the Congress party tweeted a 1.44-minute clip of their conversation and the full interview was released on Wednesday.
In the first such dialogue, which took place last week, Gandhi discussed the coronavirus pandemic and its economic implications with former Governor of the Reserve Bank of India (RBI) Raghuram Rajan.
During that discussion, Rajan said India should be “smarter” to lift the blockade and open its economy in a “measured way” soon to save jobs. He also said that Rs 65 billion should be spent to support the poor who have been hit by the crisis.
Speaking about the transfer of benefits to the poor, Abhijit Banerjee said that the government needed a mechanism with which the Center would transfer the money to state governments.
“The real challenge is for people who are not covered by social security schemes. There is no such security coverage for a large population like migrant workers, “said Abhijit Banerjee.
During the course of the discussion, Rahul Gandhi raised the issue of small businesses facing a cash crisis, to which Abhijit Banerjee said: “We need a great stimulus package like the United States. India has announced a package that represents approximately 1% of its GDP and the United States has announced a package of 10% of its GDP. ”
“People are not buying these days, and spending is the easiest way to revive the economy. We cannot close the entire retail sector because they are located in the red zone of the coronavirus, ”said Banerjee.
Speaking about the migrant worker crisis, Abhijit Banerjee said: “The migrant problem cannot be handled only by state governments and the Center must handle it.”
To this, Rahul Gandhi added that states should be free to administer the closure, but the current government in the Center had a different opinion.
Banerjee continued: “We have done something wise that is to put a moratorium on debt payments. We could do a little more, perhaps pay it off permanently for that quarter. I think spending is the easiest way to revive the economy. A transfer direct cash “Whether for the poorest people, that’s debatable. Targeting is extremely expensive. I think it should be broader. We have to put the money in the hands of the people. ”
On the issue of recovering from the economic crisis, Banerjee said two concerns had been raised.
“One is how to avoid a bankruptcy chain, it can be paying off many debts. Second, the lack of demand, and getting some cash in the hands of the people is the best way to boost the economy. I mean that the United States is doing it very aggressively and it is a republican administration that is doing it just for economic survival. They have realized that we need to put the money in the hands of the people. And we should follow their example. “
