A Nightmare for Our Poorest that We must Wake up to

Context: Covid has widened inequality and pushed many who were reeling after demonetization closer to the brink. Policymakers should act with urgency to shield them from further suffering.

Facts corroborating deepening existing divides

• Digital divide: While 52% had a TV set at home, only 11% watched education-related programmes.
• Increased livelihood insecurity: As the children face digital divide (lack of access to phones), makes them uncertain in returning schools, will hurt their lives in the long run. (the link between the family’s economic condition and schooling).
• Gender bias: Only 26% of girls reported having access to a phone as compared to boys (37%).
• Deepening existing social norms: Reports of girls being pushed to early marriage; unlike boys, girls were rarely seen outside as they were all working in their homes.
• Rising unemployment: An overwhelming majority of adults (84%) said they did not have enough employment opportunities.
• Food and cash shortage: 63% reported food shortages and 58% reported both food and cash shortage.

Impact of COVID-19

• Economic slowdown: Production has suffered even in the relatively less vulnerable primary sectors such as mining; first because of lockdown and social distancing and later because of slackening demand.
• Shrinking opportunities for employment: showed by high demand for rural employment-guarantee jobs.
• Shrinking demands for final and intermediate goods: having an adverse effect on income and employment.
• Rising inequality: As the disproportionate burden of the pandemic and demonetization led economic slowdown falling on the poor.
• Shifting choices: towards public education and health simply due to the unaffordability of private services and unavailability in rural areas where large population moved during the pandemic.

Conclusion: Expansion of public education and health services can have high multiplier effects on employment which would help in reviving the economy while also ensuring social protection to the poor.