DHANALAKSHMI SCHEME, A SOCIAL CHANGE – SOCIAL ISSUES

DHANALAKSHMI SCHEME, A SOCIAL CHANGE – SOCIAL ISSUES

NEWS: A new analysis of the Centre’s Dhanalakshmi scheme of conditional cash transfer (CCT), has found that it helped shift ‘son preference’ norms even several years after the cash transfers stopped.

WHAT’S IN THE NEWS?

Introduction to the Scheme

1. Objective:
• The Dhanalakshmi scheme was launched in March 2008 by the Government of India as a conditional cash transfer (CCT) program.
• Its primary goal was to improve the gender ratio by promoting the value of girl children and reducing societal norms favoring male children.
• It also sought to establish the perception of girls as productive members of the family.
2. Pilot Implementation:
• The scheme was introduced as a pilot project in 11 blocks across 7 states:
• Telangana, Chhattisgarh, Odisha, Jharkhand, Bihar, Uttar Pradesh, and Punjab.
• The Sirhind block of Fatehgarh Sahib district in Punjab was a focus area, chosen for its extremely poor child sex ratio (749 girls per 1,000 boys in 2001).

Financial Incentives and Conditions

1. Cash Transfers:
• At Birth: ₹5,000 for registering the birth of a girl child.
• Education:
• ₹3,500 upon completing primary school.
• ₹3,750 upon completing secondary school up to Grade 8.
• At Adulthood: ₹1 lakh upon proof that the girl remained unmarried at 18 years of age.
2. Implementation Timeline:
• The program enrolled beneficiaries until 2013. While new enrollments stopped, financial commitments to enrolled families continued.

Impact on Gender Ratio

1. Statistical Improvements:
• The scheme increased the probability of a girl’s birth by 5.5 percentage points in the treatment area (Sirhind block).
• Improved the sex ratio significantly without a substantial increase in fertility rates, indicating that families actively opted for daughters instead of sons.
2. Contribution to Girl Births:
• During the program period, approximately 30% of girl births in the treatment area were attributed to Dhanalakshmi.
• The scheme accounted for only 5% of total births during this period, highlighting its focused impact on gender parity.
3. Behavioral Shifts:
• Parents demonstrated a reduced preference for sons, opting for daughters in circumstances where they would traditionally prefer a male child.
• Mothers’ stated preference for a son declined by 5 percentage points during the scheme’s operation.

Long-term Behavioral Changes

1. Sustainability:
• Positive impacts on gender norms persisted even after financial incentives stopped.
• About 50% of the behavioral changes related to ‘son preference’ continued in the treatment areas.
2. Reduction in Fertility Concerns:
• The scheme did not lead to a significant rise in fertility rates. Most additional girl births came from households that would otherwise have chosen a male child.

Comparison with Previous Schemes

1. Haryana’s Devi Rupak Yojana (2002):
• The Devi Rupak Yojana worsened the sex ratio at birth by 1-2% due to restrictive conditions:
• Sterilization of parents was mandatory.
• A family could have a maximum of two children (either one child or two girls) to remain eligible.
• These strict requirements deterred participation and led to adverse outcomes.
2. Improvements in Dhanalakshmi:
• The Dhanalakshmi scheme learned from these failures and avoided restrictive eligibility criteria:
• No sterilization or fertility restrictions.
• Multiple daughters in the same household were eligible for benefits.

Broader Socioeconomic Impacts

1. Health Benefits:
• Immunization rates improved by up to 7.1 percentage points.
• Breastfeeding rates increased by 2.4 percentage points, improving infant health outcomes.
2. Educational Gains:
• Primary school enrollment for girls increased by 4 percentage points.
• Older girls aged 8-14 years increased their completed years of schooling by approximately one-third of a year.
3. Support for Older Girls:
• Payments linked to school attendance encouraged grade completion and reduced dropout rates among older girls.

 Long-term Impact on Gender Norms

1. Change in Son Preference:
• The scheme effectively shifted long-standing societal norms favoring male children.
• Even after financial incentives ended, parents continued to show reduced preference for sons, reflecting a lasting impact on gender attitudes.
2. Community-Level Change:
• The scheme influenced the broader community by demonstrating the tangible benefits of investing in girl children, fostering gradual societal change.

Policy Recommendations and Lessons Learned

1. Key Takeaways:
• Girl-child conditional cash transfers (CCTs) can effectively address male-child preference and promote gender parity.
• However, specific design features are critical to avoid unintended negative effects, such as those seen in earlier programs.
2. Flexibility in Program Design:
• Providing flexibility in family planning decisions (e.g., no restrictions on fertility or sterilization) is essential.
• Allowing families to enroll multiple daughters encourages wider participation and improves outcomes.
3. Integration of Health and Education:
• Linking financial incentives to health (immunization, breastfeeding) and education outcomes ensures comprehensive development for girls.

Conclusion

1. Effectiveness:
• The Dhanalakshmi scheme demonstrated that well-designed CCTs can combat deeply entrenched gender biases and improve the status of girls in society.
2. Sustainability:
• By promoting behavioral changes and shifting societal norms, the scheme achieved long-lasting impacts beyond the immediate financial benefits.
3. Future Policy Direction:
• Policymakers should adopt flexible, inclusive, and less restrictive approaches to achieve sustained progress in gender equity.
• Lessons from Dhanalakshmi can inform newer schemes, ensuring their success in addressing gender imbalance and fostering the empowerment of girl children.

Source: https://www.business-standard.com/india-news/now-defunct-dhanalakshmi-scheme-improved-girl-child-preference-finds-study-124123100441_1.html