Targeted drug delivery systems attempts to deliver drugs directly to the organs which are afflicted by disease or need repair. This improves drug delivery efficiency, reduces leakage and keeps the side effects to the minimum. The idea has been there for a long time; but, we had limitation of technology. Therefore we tried carpet bombing by injection to blood stream to take drug to affected area which caused enormous waste, failure to sufficiency penetrate to where it is needed the most and caused side effects to healthy parts of the body. Today advances in nano technology, advanced polymer chemistry and electronics engineering are coming together to revolutionize drug delivery system to make it more directed.
The same concept is applicable in social security systems too. Especially when we want to reach a helping hand to the needy in terms of subsidized food and fuel, health benefits, support for education and so on. In the absence of more effective means to address the last mile problem, we use carpet bombing here too. For example when we keep the price of kerosene low to help the poor, a large chunk of it is cornered by unscrupulous elements resulting in humongous loss to the exchequer and the needy is often denied what is promised to him. The same is the case of subsidies for many other products and services.
Today two silent developments are opening avenues to address this lacuna in a better fashion. The first one is the Aadhar project, which is attempting to identify each individual uniquely. This unique identity can help in reaching the benefits directly to the needy on a regular basis. The second critical component is the increased connectivity at affordable cost. Widely available connectivity specially using mobile technology has enormous potential for transforming the society in a variety of ways. When we marry the unique identification with reliable and affordable connectivity the impact can be truly astronomical.
Therefore our strategy for providing better data connectivity (whether as 2G, 3G or 4G) should be universal access that is practically free. I agree that we should avoid graft, corruption and nepotism in selection of service provider. Our approach for this selection and license charges to the service should not be to maximize short term revenue to the government but to reduce cost of access across the country. To avoid the service providers exploiting the low input cost, we can have mechanisms to regulate price or to share the revenue or other means which focuses on continuous cost reduction to the end consumer.
The benefit of mobile revolution in social transformation is obvious and there are many studies already undertaken to prove its impact in the poorer segment that today is learning to use this in a variety of applications. The fishermen of Kerala now use this to improve his yield and reduce wastage. Some village panchayats have found ways to use mobile phones to reduce domestic violence. (Whenever the drunken husband tries to beat up his wife she send an SOS to a specific number and then quickly and unobtrusively a group of women land up to the hut which acts as a deterrent to the drunken husband)
Our ability to reach such benefits to a large number of end consumers has another impact in the demand side of the economy. If we put more money to the hands of the rich (who are few in number) most of it goes to saving or spent abroad and so on. On the other hand when we put a little more money to a large number of poor people, most of it will go to consumption of food, cloth, shelter, consumer durables and non-durables, education and entertainment. This can have very significant impact to demand in the economy that will also protect us from over dependence of export which was one of the reasons for the eventual collapse of the East Asian miracle.
This increased purchasing power can be further leveraged if we can get the goods more cheaply with easier availability which is possible if we are able to bring in better efficiency in retail marketing and distribution infrastructure.
Although the policy makers are aware of each of the above areas, very often the vested interests with deep pockets are able to torpedo such initiatives often, with specious arguments and powerful lobbying. We see this in most of our policy making exercises including the annual budget. In this latest budget even though definite actions in these areas are limited, it is heartening to see that the Finance Minister is making an attempt. He has referred to strengthening the retail sector, ways to better farmer yield and reduce retail price by removing inefficiencies in distribution and also has established an inter-ministerial task force headed by Mr Nandan Nilekany to suggest means of directed subsidies to the intended intermediaries in the area of kerosene, LPG and fertilizers.
This a good start; and in comparison with the reduction in tax rate or permission given to the international investors in participate in Indian Mutual Funds or increase in FDI limit and so on which are more high profile policy changes, the impact of the abovementioned initiatives have unfathomable potential for strengthening our economy if we proceed forward from this baby steps keeping in mind that this is only a start.
“It has been said of the world's history hitherto that might makes right. It is for us and for our time to reverse the maxim, and to say that right makes might” Abraham Lincoln
The same concept is applicable in social security systems too. Especially when we want to reach a helping hand to the needy in terms of subsidized food and fuel, health benefits, support for education and so on. In the absence of more effective means to address the last mile problem, we use carpet bombing here too. For example when we keep the price of kerosene low to help the poor, a large chunk of it is cornered by unscrupulous elements resulting in humongous loss to the exchequer and the needy is often denied what is promised to him. The same is the case of subsidies for many other products and services.
Today two silent developments are opening avenues to address this lacuna in a better fashion. The first one is the Aadhar project, which is attempting to identify each individual uniquely. This unique identity can help in reaching the benefits directly to the needy on a regular basis. The second critical component is the increased connectivity at affordable cost. Widely available connectivity specially using mobile technology has enormous potential for transforming the society in a variety of ways. When we marry the unique identification with reliable and affordable connectivity the impact can be truly astronomical.
Therefore our strategy for providing better data connectivity (whether as 2G, 3G or 4G) should be universal access that is practically free. I agree that we should avoid graft, corruption and nepotism in selection of service provider. Our approach for this selection and license charges to the service should not be to maximize short term revenue to the government but to reduce cost of access across the country. To avoid the service providers exploiting the low input cost, we can have mechanisms to regulate price or to share the revenue or other means which focuses on continuous cost reduction to the end consumer.
The benefit of mobile revolution in social transformation is obvious and there are many studies already undertaken to prove its impact in the poorer segment that today is learning to use this in a variety of applications. The fishermen of Kerala now use this to improve his yield and reduce wastage. Some village panchayats have found ways to use mobile phones to reduce domestic violence. (Whenever the drunken husband tries to beat up his wife she send an SOS to a specific number and then quickly and unobtrusively a group of women land up to the hut which acts as a deterrent to the drunken husband)
Our ability to reach such benefits to a large number of end consumers has another impact in the demand side of the economy. If we put more money to the hands of the rich (who are few in number) most of it goes to saving or spent abroad and so on. On the other hand when we put a little more money to a large number of poor people, most of it will go to consumption of food, cloth, shelter, consumer durables and non-durables, education and entertainment. This can have very significant impact to demand in the economy that will also protect us from over dependence of export which was one of the reasons for the eventual collapse of the East Asian miracle.
This increased purchasing power can be further leveraged if we can get the goods more cheaply with easier availability which is possible if we are able to bring in better efficiency in retail marketing and distribution infrastructure.
Although the policy makers are aware of each of the above areas, very often the vested interests with deep pockets are able to torpedo such initiatives often, with specious arguments and powerful lobbying. We see this in most of our policy making exercises including the annual budget. In this latest budget even though definite actions in these areas are limited, it is heartening to see that the Finance Minister is making an attempt. He has referred to strengthening the retail sector, ways to better farmer yield and reduce retail price by removing inefficiencies in distribution and also has established an inter-ministerial task force headed by Mr Nandan Nilekany to suggest means of directed subsidies to the intended intermediaries in the area of kerosene, LPG and fertilizers.
This a good start; and in comparison with the reduction in tax rate or permission given to the international investors in participate in Indian Mutual Funds or increase in FDI limit and so on which are more high profile policy changes, the impact of the abovementioned initiatives have unfathomable potential for strengthening our economy if we proceed forward from this baby steps keeping in mind that this is only a start.
“It has been said of the world's history hitherto that might makes right. It is for us and for our time to reverse the maxim, and to say that right makes might” Abraham Lincoln
I fully endorse your views.. anything that goes a long way towards inclusive social growth ! Rgds, sunil gandhi
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