THE GIST of Editorial for UPSC Exams : 01 June 2020 (It’s time for a universal basic income programme in India (The Hindu))

It’s time for a universal basic income programme in India (The Hindu)

Mains Paper 3:Economy
Prelims level: Universal basic income
Mains level: Economic tool to eradicate poverty and revival of economy

Context:

• The ongoing crisis is creating changes that could end up dividing society into pre- and post-COVID-19 days.
• These changes are also likely to exacerbate the novel challenges accompanying the fourth industrial revolution.

Gaining productivity through artificial intelligence:

• Today, disruptive technologies like artificial intelligence are ushering in productivity gains that we have never seen before. They are also steadily reducing human capital requirements, making jobs a premium.
• A microcosm of these trends can be seen in Silicon Valley. The region is home to five of the world’s eight most valuable companies. These giants, all technology companies, have a cumulative market cap of over $4 trillion, yet they together directly employ just 1.2 million people.

Tool to eradicate poverty:

• Many consider a universal basic income (UBI) programme to be a solution that could mitigate the looming crisis caused by dwindling job opportunities.
• UBI is also deliberated as an effective poverty-eradication tool. Supporters of this scheme include Economics Nobel Laureates Peter Diamond and Christopher Pissarides, and tech leaders Mark Zuckerberg and Elon Musk.
• UBI in its true sense would entail the provision .........................................................................................................

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Different times

• The times now are very different. IMF has projected global growth in 2020 to be -3.0%, the worst since the Great Depression. India is projected to grow at 1.9%. The U.S. economy is expected to fall by 5.9%.
• The unemployment rate and unemployment claims in the U.S., since President Donald Trump declared a national emergency, is the highest since the Great Depression. Unfortunately, India does not even have comparable data.

Way forward:

• Lockdowns in some format are expected to be the norm till the arrival of a vaccine.
• With almost 90% of India’s workforce in the ................................................................................................

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Conclusion:

• One way to ensure their sustenance throughout these trying times is the introduction of unconditional regular pay checks at maximum universality, at least till the economy normalises. If universal basic income ever had a time, it is now.

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Prelims Questions:

Q.1)Which of the following countries borders Adriatic Sea?
1. Montenegro
2. Italy
3. Hungary

Select the correct answer using the code given below:
(a) 1 and 3 only
(b) 2 and 3 only
(c) 1 and 2 only
(d) 3 only

Answer............................

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Mains Questions:
Q.1)Describe the role of uses the economic tools to eradicate poverty after covid 19 pandemic in India.