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In which state is the public distribution system responsible for the reduction in poverty?
  • a)
    Andhra Pradesh
  • b)
    Tamil Nadu
  • c)
    Both (a) and (b)
  • d)
    None of the above
Correct answer is option 'C'. Can you explain this answer?
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In which state is the public distribution system responsible for the r...
To reduce poverty in Andhra Pradesh, white cards are issued to the households falling below the poverty line, to provide the subsidised rice. Thus number of people below poverty line declined during 1990's increasing white cards distributions .

The Public Distribution System in Tamil Nadu reduced poverty due to its coverage as well as pricing. Each family, whether below the poverty line or not, is entitled to 20 kg of rice at Re. 1 a kg.
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In which state is the public distribution system responsible for the r...
Public Distribution System in Andhra Pradesh and Tamil Nadu

The Public Distribution System (PDS) is a government-run distribution network that provides essential items like rice, wheat, sugar, oil, etc. at subsidized rates to the poor and needy. The objective is to ensure food security and reduce poverty levels in the country. Two states that have successfully implemented the PDS are Andhra Pradesh and Tamil Nadu.

Andhra Pradesh PDS

Andhra Pradesh was one of the first states to introduce the Targeted Public Distribution System (TPDS) in 1997. The system was revamped in 2004 to include the Antyodaya Anna Yojana (AAY) and the Annapurna scheme. The AAY provides 35 kg of rice per month to the poorest of the poor families at a highly subsidized price of Rs. 1 per kg. The Annapurna scheme provides 10 kg of free rice to destitute senior citizens.

The PDS in Andhra Pradesh is well managed and efficient. The state government has implemented several reforms to improve the system, including digitization of ration cards, introduction of biometric authentication, and doorstep delivery of essential commodities. As a result, the state has been able to reduce poverty levels significantly.

Tamil Nadu PDS

Tamil Nadu has one of the best PDS systems in the country. The state government provides rice at Rs. 1 per kg to all rice cardholders. The PDS in Tamil Nadu is well managed and efficient, with digitization of ration cards, online monitoring of stocks and supplies, and doorstep delivery of essential commodities.

The PDS in Tamil Nadu has played a significant role in reducing poverty levels in the state. According to a study conducted by the Planning Commission, poverty levels in Tamil Nadu declined from 48.5% in 1993-94 to 21.1% in 2011-12, largely due to the success of the PDS.

Conclusion

The PDS in Andhra Pradesh and Tamil Nadu has been successful in reducing poverty levels in the states. The efficient management and implementation of the system have ensured that essential commodities reach the poor and needy at subsidized rates. Other states can learn from the successful models of Andhra Pradesh and Tamil Nadu and implement similar reforms to reduce poverty levels in their respective states.
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It is often forgotten that globalization, is not only about policies on international economic relationships and transactions, but has equally to do with domestic policies of a nation. Policy changes necessitated by meeting the internationally set conditions (by WTO etc.) of free trade and investment flows obviously affect domestic producers and investors. But the basic philosophy underlying globalization emphasizes absolute freedom to markets to determine prices and production and distribution patterns, and view government interventions as processes that create distortions and bring in inefficiency. Thus, public enterprises have to be privatized through disinvestments and sales; sectors and activities hitherto reserved for the public sector have to be opened to the private sector. This logic extends to the social services like education and health. Any restrictions on the adjustments in workforce by way of retrenchment of workers should also be removed and exit should be made easier by removing any restrictions on closures. Employment and wages should be governed by free play of market forces, as any measure to regulate them can discourage investment and also create inefficiency in production.Above all, in line with the overall philosophy of reduction in the role of the state, fiscal reforms should be undertaken to have generally low levels of taxation and government expenditure should be kept to the minimum to abide by the principle of fiscal prudence. All these are policy actions on the domestic front and are not directly related to the core items of the globalization agenda, namely free international flow of goods and finance.Q.According to the passage, which of the following is/are necessary for ensuring globalization?1. Privatization of public enterprises2. Expansionary policy of public expenditure3. Free play of market forces to determine wages and employment4. Privatization of social services like education and health.

It is often forgotten that globalization, is not only about policies on international economic relationships and transactions, but has equally to do with domestic policies of a nation. Policy changes necessitated by meeting the internationally set conditions (by WTO etc.) of free trade and investment flows obviously affect domestic producers and investors. But the basic philosophy underlying globalization emphasizes absolute freedom to markets to determine prices and production and distribution patterns, and view government interventions as processes that create distortions and bring in inefficiency. Thus, public enterprises have to be privatized through disinvestments and sales; sectors and activities hitherto reserved for the public sector have to be opened to the private sector. This logic extends to the social services like education and health. Any restrictions on the adjustments in workforce by way of retrenchment of workers should also be removed and exit should be made easier by removing any restrictions on closures. Employment and wages should be governed by free play of market forces, as any measure to regulate them can discourage investment and also create inefficiency in production.Above all, in line with the overall philosophy of reduction in the role of the state, fiscal reforms should be undertaken to have generally low levels of taxation and government expenditure should be kept to the minimum to abide by the principle of fiscal prudence. All these are policy actions on the domestic front and are not directly related to the core items of the globalization agenda, namely free international flow of goods and finance.Q.According to the passage, the basic philosophy of globalization is to

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In which state is the public distribution system responsible for the reduction in poverty?a)Andhra Pradeshb)Tamil Naduc)Both (a) and (b)d)None of the aboveCorrect answer is option 'C'. Can you explain this answer?
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