Expanding TCB's scope and capacity

The Trading Corporation of Bangladesh's (TCB's) latest market intervention in the form of sale of three essentials---soybean oil, sugar and lentil ---purportedly to ease the inflationary pressure off from the low-income segment of people on the eve of Eid-ul-Adha could not be more timely. All the 10 million card-holders across the country will be entitled to purchase those essentials at subsidised rates. A litre of soybean oil will be available at Tk 100, sugar and lentils at Tk 70 each a kilogram at the sale points. These additional substitution of essentials will be on offer throughout the month of June for the people smarting under inflationary pressure. Clearly, this temporary arrangement cannot solve their problem but at least it will be of some help before and during the second biggest religious festival of the majority people here.

It is exactly at this point, the efficacy of social safety net programmes (SSNPs) come under scrutiny. About the merit of such programmes undertaken by the government, there is no question at all. However, it is the process of execution of those that really are questionable. Had the selection of beneficiaries been done on the basis of genuine penury, the country's drive against poverty reduction and elimination of hunger and malnutrition would have achieved far greater success than it has done so far. A study made public by the Centre for Policy Dialogue in September 2020 comes up with startling revelation. As many as 65 per cent beneficiaries of the government SSNPs were found to be non-poor. Nepotism, corruption, political consideration and clientelism had distorted the process of fair selection of the deserving poor beneficiaries at the field level. A good government initiative has thus been sabotaged midway, leaving a large majority of the poor deprived of their dues. What is surprising is that the higher authorities, notwithstanding the scandalous distribution of favour and in some cases misappropriation of funds and essentials allocated under various programmes, did not take any worthwhile step to correct the list of beneficiaries.

If foods and funds go to 65 undeserving candidates and only 35 deserving ones out of 100 people, it surely is a miscarriage of the distributive justice by all means. The very purpose of feeding the poor and vulnerable is frustrated. When fresh cards were issued to cover more people by the SSNPs later on, again there were allegations of unfair selection of beneficiaries. Unsurprisingly, multilateral bodies have questioned the utility of a large number of SSNPs which are roughly 117 in total. Better it would be to bring down the number to a reasonable level for effective implementation.

Now that the TCB is taking up a greater role in alleviating the suffering of the poor and low-income people, it would be quite appropriate to expand its scope and capacity no matter if the step does not synchronise with the policy of free market economy. The government is quite aware of the danger of income inequality. So, the reintroduction of the abandoned rationing system can be highly useful in this regard. If the low-income group enjoys the benefits of such a system where they get the basic food items at subsidised prices, the market volatility cannot make them haemorrhage at this level. This will, moreover, allow them to look for better livelihood options in order to improve the their living conditions. But the cardinal principle remains the same - fair selection of beneficiaries.