Urban social safety - Covid's lessons

Ensuring livelihoods for all in urban areas, post the pandemic, is a challenge.

 Urban social safety - Covid's lessons

---

• The story: During the Covid-19 pandemic, governments faced the difficult choice of saving lives versus protecting livelihoods. According to the World Economic Outlook report of April, 2021 of the International Monetary Fund (IMF), almost all countries, except China, experienced economic contraction last year. The global GDP shrunk by 3.3%. India’s GDP fell by 8%. As per the Centre for Monitoring Indian Economy’s estimates, the unemployment rate in India peaked at 23.5% in April 2020 before falling to 6.9% in February 2021.
• Livelihoods: In the wake of economic deceleration, the challenge is to minimise livelihood losses. Traditionally, governments have addressed this issue from a sectoral viewpoint given the contemporary realities, the need is to approach this from a rural-urban perspective.
• Social security in urban India: First, in the Covid-19 outbreak in India, big cities like Delhi, Mumbai, Bengaluru and Chennai were the main urban epicentres. Though the Indian government operates the National Urban Livelihoods Mission (NULM), which is focused on self-employment through skill up-gradation and credit linkages through banks, the scheme does not have guaranteed wage employment provisions akin to what MGNREGA provides.

1. During the lockdown in 220, crores of migrant labourers moved in large numbers from the urban to rural areas, symptomatic of the rural-urban livelihood security divide.
2. This migration tragedy and the economic slowdown have highlighted the need for a similar livelihood safety net in urban India.
3. The economic crisis in urban areas is deepening as people who lost their jobs are yet to find replacements and little has been accomplished after the lockdown for the revival of livelihoods in the informal sector in the Indian urban area.
4. A decline in nutritional quality and quantity was more among the urban residents, as was the need to borrow money for buying food.

• Why focus on urban: The urban areas are an integral part of the development process of the country, and make a major contribution to the country's economy, contributing about two-third of the economic output, hosting a growing share of the population and being the main recipients of FDI and the originators of innovation and technology. The cities are a collective magnet for a great diversity of economic activities. The cities are a hotbed of social capital or as a ‘melting pot’ of culturally or socially diversified groups.
• Steps to be taken: The livelihood safety net must have comprehensive coverage. Such a net, provided by the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), exists only in rural areas An urban livelihood scheme can be launched within the existing fiscal space. If not, the Union and States can provide resources together and empower the urban local bodies. Himachal Pradesh launched the Mukhya Mantri Shahri Ajeevika Guarantee Yojana (MMSAGY) with the objective of enhancing livelihood security in urban areas by providing 120 days of guaranteed wage employment to every household at minimum wages in FY 2020-21. Setting a separate minimum wage for rural and urban areas does not cause migration to urban areas since the higher cost of living in urban areas has an offsetting effect.
• Summary: India’s future urban strategy should improve urban governance, livelihood security of the urban poor, delivery of public services, inter-government transfers and capacity building.

 

Join PT courses | PT Youtube | PT App | Contribute |  Testimonials