This paper investigates how the employment generating scheme MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) is different from other employment generating scheme and finds how MGNREGA is supporting economic development by creating community/productive assets at the level of villages.
Since 2000, India has experienced rapid economic growth and a sharp decline in poverty. But employment has grown more slowly. Government intervened in the economy through the National Rural Employment Guarantee Act, which provides employment to unskilled workers in rural areas besides creating community/productive assets at the level of village such as wells, tanks, ponds, roads etc. This programme is designed to provide income protection against poverty in rural area. The choice of works under MGNREGA seeks to address the causes of chronic poverty such as drought, deforestation and soil erosion.
MGNREGA is different from other employment and poverty alleviation programme in the sense that it is a legal framework and right to work based programme. This is a paradigm shift from its earlier programmes for it is a bottom-up, demand driven structure with built-in social audits.
Table of Contents
Context
Why MGNREGA?
History of Wage Employment Programme
Table 1: Workfare Programmes in India
Objectives of MGNREGA
Salient Features of MGNREGA
Funding of MGNREGA
Why NREGA is so popular?
What is wrong in MGNREGA?
How Long MGNREGA?
Employment Schemes across the World
Discussion and Suggestions
Conclusion
Research Objectives and Themes
This paper investigates the role of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) as a catalyst for economic development in rural India. It examines how this demand-driven, legal framework distinguishes itself from earlier poverty alleviation programs by guaranteeing employment and creating community assets to address the structural causes of chronic poverty.
- The paradigm shift from allocation-based to demand-driven employment schemes.
- The creation of durable community and productive assets (wells, roads, water conservation) to foster local economic development.
- The role of MGNREGA in providing a legal right to work and enhancing livelihood security for unskilled rural workers.
- A comparative analysis of wage employment programs in India and international employment initiatives.
Excerpt from the Book
Why MGNREGA?
Since 2000 India has experienced rapid economic growth and a sharp decline in poverty. But employment has grown more slowly. And although agriculture contributes 18 per cent to the Indian economy, it continues to employ 47 per cent of the workers. The difference between 47 per cent of workers in agriculture and their contribution is only 18 per cent to the Indian economy reflect disguised unemployment (i.e., crowding of workers in agriculture sectors) in agriculture particularly women. During 2005, Indian economy was growing at the rate of 7 – 8 per cent but income disparity was widening. Labour class were not getting the benefit of market reforms, growth and globalisation. In this context, government intervention was required. Thus, government intervened in the economy through National Rural Employment Guarantee Act to provide employment to unskilled workers in rural areas. This programme is designed to provide income protection against poverty in rural area. A majority of the poor in rural areas of the country depend mainly on the wages they earn through unskilled, casual, manual labour. They are often on threshold levels of subsistence, and are vulnerable to the possibility of sinking from transient to chronic poverty. Inadequate labour demand or unpredictable crises that may be general in nature, like natural disaster or personal like ill-health, all adversely impact their employment opportunities. The choice of works under NREGA seeks to address the causes of chronic poverty such as drought, deforestation and soil erosion. In order to attack on causes of chronic poverty and bringing excluded people into the mainstream of economic development, the Government of India is focusing on rural development through agriculture development under MGNREGA.
Summary of Chapters
Context: Defines the motivation behind the enactment of the National Rural Employment Guarantee Act as a rights-based framework for social security.
Why MGNREGA?: Explores the necessity of government intervention to address unemployment and income disparity in the context of India's economic growth.
History of Wage Employment Programme: Traces the evolution of famine relief and public works programs in India from ancient times to modern state-sponsored schemes.
Table 1: Workfare Programmes in India: Provides a chronological overview of various employment schemes implemented in India between 1960 and 2005.
Objectives of MGNREGA: Outlines the primary goal of guaranteeing 100 days of wage employment and creating sustainable assets to address chronic poverty.
Salient Features of MGNREGA: Details the operational mechanics of the Act, including the roles of Gram Panchayats and the process of wage disbursement.
Funding of MGNREGA: Describes the financial structure and cost-sharing responsibilities between the Central and State governments.
Why NREGA is so popular?: Analyzes the widespread political and social support for the scheme across different segments of society.
What is wrong in MGNREGA?: Discusses potential drawbacks, such as the risk that easy availability of work might discourage labor mobility to more productive sectors.
How Long MGNREGA?: Examines the long-term sustainability of the scheme in the context of broader economic development and market reforms.
Employment Schemes across the World: Compares India's approach with similar initiatives in China, Argentina, Bangladesh, and Indonesia.
Discussion and Suggestions: Offers policy recommendations for fostering inclusive growth and strengthening human capabilities alongside the employment guarantee.
Conclusion: Summarizes the importance of integrating employment-growth strategies to reduce long-term poverty and inequality.
Keywords
MGNREGA, employment, rural development, poverty reduction, community assets, demand-driven, right to work, social audit, wage employment, economic growth, subsistence, public works, livelihood security, inclusive growth, labor policy.
Frequently Asked Questions
What is the core focus of this research paper?
The paper focuses on understanding the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) as a key social policy and its impact on supporting economic development in rural India.
What are the primary themes discussed in the study?
Key themes include the shift toward a rights-based employment framework, the creation of community assets, social safety nets, and the comparative analysis of employment schemes globally.
What is the main research objective of the author?
The objective is to examine how MGNREGA differs from past programs by focusing on a demand-driven approach and its potential to act as a catalyst for sustainable rural transformation.
Which scientific methodology does the paper employ?
The paper utilizes a descriptive and analytical approach, drawing on historical policy data, economic reports, and existing literature to evaluate the impact and structure of the scheme.
What topics are covered in the main body of the work?
The main body covers the historical context of wage employment, detailed features and funding of MGNREGA, criticisms of the act, and lessons learned from similar programs worldwide.
Which keywords characterize this research?
The paper is characterized by terms such as MGNREGA, poverty reduction, demand-driven structures, community assets, and livelihood security.
How does the author define the "demand-driven" structure of MGNREGA?
The author defines it as a paradigm shift where the government is legally accountable to provide employment to those who demand it, contrasting it with previous top-down, allocation-based programs.
What is the role of the "Gram Panchayat" under the Act?
The Gram Panchayat serves as the primary implementation unit, responsible for registering households, issuing job cards, and planning work projects based on local needs.
What specific economic challenges does the Act attempt to mitigate?
It aims to mitigate chronic poverty, disguised unemployment in the agricultural sector, and the vulnerability of rural households to natural disasters and economic shocks.
How does the author view the sustainability of the assets created by the scheme?
The author notes that while the scheme creates assets, their maintenance is often neglected due to administrative delays and lack of funding, which the author suggests needs improvement.
- Citation du texte
- Rajesh Pal (Auteur), 2018, Understanding the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). A Scheme Supporting Economic Development, Munich, GRIN Verlag, https://www.grin.com/document/452018
