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Publication: The Economic Times Delhi; Date:2012 Oct 31; Section:Editorial; Page
Number: 16
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country. Reform proposals of labour ministry relating to Minimum Wage Act, Employees
Provident Fund Act, Factories Act and the Building and Other Construction Workers Act go in the
same direction, lowering employment prospects.
While these proposals are in the early stages, so their advance is easier to arrest, there is
greater urgency for a second look at two other measures that are far advanced on the way to
becoming laws. As I argued in The Times of India on October 19, 2012, the government needs
to resist pressing ahead with the flawed food security Bill. Given that the government has
already put in motion the programme on cash transfers, it makes little sense to duplicate the
effort via this inferior instrument, especially since it will be almost impossible to reverse it in the
future. Minimally, the Bill should be modified to offer the beneficiary the option to choose
between subsidised grain and equivalent subsidy in cash.
Finally, the government needs to take a fresh look at the land acquisition Bill before bringing it
to a vote on the floor of the Parliament. The Bill needs to be clearer on the definition of public
use of the land acquired under eminent-domain provisions and to leave land acquisition for
private projects to entrepreneurs at genuine market prices.
AFTERTHOUGHT
If you put two economists in a room, you get
two opinions, unless one
of them is Lord Keynes,
in which case you get
three opinions.
Winston Churchill,
British statesman
ARVIND PANAGARIYA
PROFESSOR, COLUMBIA UNIVERSITY
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