Incentives and disincentives in the Indian family welfare program
Satia, J.K.; Maru, R.M.
Studies in Family Planning 17(3): 136-145
1986
ISSN/ISBN: 0039-3665 PMID: 3726902 DOI: 10.2307/1967031Document Number: 344252
This article examines evidence on the impact of incentives on family planning services in India. The government of India currently spends 10% of its total expenditure for Family Welfare Programs to provide compensation for lost wages and expenditures such as drugs and transportation to acceptors of sterilization and the IUD. Several incentive and disincentive programs used since the 1960's are reviewed. Incentives offered most often have been individual, positive, monetary, immediate, non-graduated incentive for acceptance of contraception. Currently, sterilization acceptors receive Rs. 100 (US$9.00) and IUD acceptors, Rs. 9 (US$1.00). Many states have also offered non-monetary incentives to acceptors as well as motivators. Acceptor incentives are effective in raising acceptance levels and do not seem to have any direct adverse effect on quality of services or quality of acceptors; also, differences in size of incentives offered do not seem to influence preferences for various methods, a more important factor being the priority attached to a method by the program. Limited experience with a disincentive program (1976-1977) indicates that their punitive effect on public servants tends to result in coercive behavior toward potential acceptors, and eventually led to rioting and political backlash. Most effective incentives are those that have a direct positive impact on quality of life of acceptors.