The economics and politics of cash transfers

The Mukhyamantri Mahila Rojgar Yojana was widely seen as a key factor behind the National Democratic Alliance’s (NDA’s) thumping victory in Bihar this month.

- RAJESH KUMAR

Under the scheme, eligible women were given %10,000 to start a business, with the possibility of another%200,000 worth of assistance. Chief Minister Nitish Kumar deserves credit for taking several steps to empower women over the years, and it would be unfair to conclude that a single scheme, announced at the last minute, tilted the balance in NDA’s favour. In fact, according to one analysis, three of the five Assembly seats with the highest women voter turnout were won by the All India Majlis-e-Ittehadul Muslimeen, which was not part of either of the two major competing alliances. There is often a combination of factors that determines election outcomes, and it is difficult to gauge the extent to which each one influences voter choice, particularly in a large state like Bihar.