Time the Compensation

One of the questions I have begun to ask in this assignment in Uttarakhand state is: Is the timing of giving compensation to families who have lost their houses "the right time"? Let us examine the facts. 

Usually after a disaster, immediately there is a hue and cry for compensating the loss. The governments, in order to get a political mileage and to silence the voices, immediately announce a compensation package, and at times it is even revised to increase the earlier package. In the case of Uttarakhand, each family that had lost its house got 200,000 rupees. Indeed, although the disaster had taken place on 16 - 17 June, during my visit to Pithoragarh district closer to the Nepal-Tibetan border with India as early as in the first week of July, I found that the families had been compensated. I was pleasantly surprised at that time the compensation has reached the community and people are happy that they received the money without any delay.

But this is the rainy season. People do not have much work. Most of the affected families are living on the generosity of the government which comes through free or subsidized food and some benefits given by the non-profit organizations. Today, that is about two months from the disaster, how much of that 200,000 is left with the families to reconstruct their houses? In any case with the rains continuing, the house reconstruction cannot start before October. So, how much will be left on the first day when the deprived family needs money? People eat, purchase clothes, pay for medicines, they travel and buy some utensils etc. with the same money.

This takes me to the first question: Is the timing of giving compensation to families who have lost their houses "the right time"? Or, should the "housing compensation be better timed?". One option I would propose is the following (an idea I shared with a few and later I wrote to Eilia J. in Care India yesterday, to share my opinion. 

Hon'ble Chief Minister of Uttarakhand gives compensation 

I would propose that the government gives the money in 3 or 4 installments; and all installments should be paid as advances (unlike in Indira Awaj Yojana where money is retroactively paid). This might have some force on the families too to take responsibility for the money and the house, while at the same time help in standardizing, completing the housing, and improve the the Cash Transfer mechanism as well.

If given in one time advance, it looks like the government has given the compensation, and it has technically washed its hands off! A longer term engagement by splitting the money will also give space for more dialogue on land rights, land usage issues, environmental concerns, risk prevention and management etc. 

May be it is time to rethink some of our compensation policies.

Largesse of the Government

The deaths due to consumption of spurious liquor has crossed 170 and still some are battling against death. The government of West Bengal has announced an ex-gratia of 200,000 rupees for the bereaved families. On 9th Dec 2011 after the major fire in AMRI hospital in Kolkata too the government announced similar grant. I wonder from where does this money come from. I have no problem in giving out the money, but my question is from where is this kind of money being generated? Before we discuss this, the death toll in the hooch tragedy has gone well past the total deaths due to Cyclone Aila in 2009. Only 139 persons died in the aftermath of cyclone Aila; but this tragedy has killed more than 170 people. Should we call it a disaster?

Now, about the money. AMRI is a hospital for the rich, of the rich, and by the rich. I am not sure if some of these families whose loved ones died in the fire really require this 200,000 rupees that comes from the government. The other question is, if people die drinking spurious liquor, and their families get 200,000 rupees, will this event become a tipping point, and the situation escalate that the poor think that they can die drinking spurious liquor, and their families can get the money, and live happily ever after?!!! We are walking on a very fragile paradigm. Secondly, what is the source of money that the government is giving out? If it is money of the general public and that of the tax payers, I am against. it. If AMRI authorities are at fault, the government must realize the compensation from them. Let them take 500,000 rupees per each patient. No issues on that! Let them take over the entire land and the building, and pay for damages. That would be exemplary, honest in every way, and not impinging on the money for development. In the case of the hooch tragedy, the government must attach the properties of all those involved in production, sale and permitting such sale. I might sound harsh. But unless exemplary punishments burn a hole in the pockets of these people, it would not be an example. 

There is something called Law of Torts. This is hardly used in India, although it exists. It is simply the law relating to civil damages. The only civil damage cases we see are some big politician asking for money from media houses for a perceived damage to their supposedly good name. We must take this further. Civil damages must be compensated, but the damager, and not by people's money. For heaven's sake, will someone say this to the Chief Minister, please!