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2018 | Book

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Employment Guarantee Programme and Dynamics of Rural Transformation in India

Challenges and Opportunities

Editors: Dr. Madhusudan Bhattarai, Dr. P.K. Viswanathan, Dr. Rudra N. Mishra, Dr. Cynthia Bantilan

Publisher: Springer Singapore

Book Series : India Studies in Business and Economics

Part of: Springer Professional "Wirtschaft+Technik" , Springer Professional "Wirtschaft"

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About this book

This book offers an assessment of the performance, impact, and welfare implications of the world’s largest employment guarantee programme, the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). Launched by the Indian government, the programme covers entire rural area of the country. The book presents various micro-level analyses of the programme and its heterogeneous impacts at different scales, almost a decade after its implementation. While there are some doubts over the future of the scheme as well as its magnitude, nature and content, the central government appears committed to it, as a ‘convergence scheme’ of various other welfare and rural development programmes being implemented at both national and state level. The book discusses the outcomes of the programme and offers critical insights into the lessons learnt, not only in the context of India, but also for similar schemes in countries in South and South-East Asia as well as in Africa, and Latin America. Adopting inter-disciplinary perspectives in analysing these issues, this unique book uses a judicious mix of methods---integrating quantitative and qualitative tools---and will be an invaluable resource for analysts, NGOs, policymakers and academics alike.

Table of Contents

Frontmatter
Chapter 1. Introduction
Abstract
This Chapter introduces the volume that contains 13 Chapters on different thematic topics of MGNREGA, one of the most celebrated flagship social protection programmes of Government of India in recent years. This programme is being implemented in India since 2006. First, this Chapter provides an overview of important interventions made by the central and state governments of India to reduce poverty through Employment generation related programmes, including a historical perspective on evolution of right-based employment guarantee schemes like MGNREGA. It then describes selected features and makes a critical assessments on specific aspects of implementation of the MGNREGA programme, its implementation status, the major activities covered under MGNREGA programme, its performance and relevance. Then, we discuss growing policy concerns and uncertainties surrounding implementation of the MGNREGA programmes, the delays in payments of wage to labor force participating in the programme, fluctuation of budget allocations over the years. The Chapter then provides a synoptic view of the selected empirical studies on MGNREGA, its implementation, and outcomes across the states in India. Following this overview on MGNREGA, the Chapter presents an overview of the Chapters contained in this volume for the benefit of the readers. The Chapter concludes by highlighting the imperative for recasting the MGNREGA from the future perspective in terms of responding to the emerging challenges in rural India: (a) increasing drought induced distress conditions prevail across the states; (b) the need for making MGNREGA a broad-based programme through incorporating skill based activities and imparting technical skills to the rural workforce through the MGNREGA to ensure ling-term livelihood benefits to the programme participants, and (c) the efficacy of the programme towards sustaining the rural livelihoods.
Madhusudan Bhattarai, P.K. Viswanathan

MGNREGA: Macro Perspectives and Analysis

Frontmatter
Chapter 2. Employment Generation Under MGNREGA: Spatial and Temporal Performance Across States
Abstract
Annually over 50 million households that account for more than one-third of households living in rural India do claim a stake in employment under the MGNREGA programme. The total volume of employment generated under the programme from 2006–07 to 2015–16 has been around 19 billion person days. The share of the SCs, STs and women in the total employment generated has been 27, 22 and 48%, respectively. On average, beneficiary households have obtained 45 days of employment in a year, as against 100 days of employment per household as promised under the Act of MGNREGA. A total amount of ₹ 3064 billion (i.e. around USD 46 billion) has already been spent on these programmes till mid of 2015. Most of the works undertaken in MGNREGA are of the water management, village level road and environmental protection. In fact, it devised a tool at the micro level to provide adaptation in the hands of the locals to better cope with risks and uncertainty caused by the climate change. The MGNREGA programme has provided some level of livelihood security to the rural households in a crisis situation when getting work elsewhere becomes difficult because of the recurring off-seasons in agriculture and related other shocks in the economy. MGNREGA programme has been successful in providing food security to the households in the villages by providing them extra purchasing power. In order to have smooth availability of employment in the rural economy, the state government agencies can carry out MGNREGA activities more during the agricultural off-season, which will also ensure employment security to rural poor within their vicinity all round the year.
Parmod Kumar
Chapter 3. MGNREGS Implementations and the Dynamics of Rural Labour Markets
Abstract
National economy of India has been growing rapidly in the last two decades; however, growth on employment level has not been commensurate with growth in the national economy. While faster growth of economy is beneficial to various stakeholders, employment growth is more important to reduce poverty in the economy. The experience of welfare programmes in India shows that considerable efforts have been made in terms of effectiveness in their implementations and providing wider coverage to all the needed population. This chapter evaluates differential impact of MGNREGA on the extent of fulfilment of the basic entitlements such as days of employment, wages and earnings and the extent of coverage of social groups like dalits, adivasis and women and vulnerable groups. There is a growing evidence of an increase in agricultural wages across the country over the period between 2006–07 and 2011–12, in which the impact of MGNREGA on the poor community is considerable. This review has also revealed a steep increase in female agriculture wages and a substantive decline in the male–female wage gap over the period. The search for information on the impact of MGNREGA on agricultural labour markets leads to some evidence on labour shortage, changes in wage structures, reduced distress migration, speeding up mechanization process, and peak season adjustment of work or adoption of MGNREGA calendar for its implementation.
D. Narasimha Reddy, A. Amarender Reddy, Madhusudan Bhattarai, N. Nagaraj, Cynthia Bantilan
Chapter 4. Beyond Digging and Filling Holes: Maximizing the Net Positive Impact of MGNREGA
Abstract
When it was launched in 2005, the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was expected to materially alter the working of rural labour markets and create durable assets, both public and private. In 2009–10, and then again in 2010–11, IWMI surveyed the post-MGNREGA rural labour markets and undertook case studies of more than 140 best-performing MGNREGA-constructed water infrastructure (assets). This chapter reviews and synthesizes the evidence from these field studies. The surveys indicate that where implemented well, MGNREGA has significant and positive income effect and improves the bargaining power of labour. Women find MGNREGA particularly attractive and though not eradicated completely, the gap between male and female wages seems to have reduced. However, MGNREGA’s impact on migration is less clear and we found conflicting evidence. Besides being the world’s largest employment programme, MGNREGA is also among the world’s largest water security programmes, investing over US$ 3 billion annually in constructing, repairing, and renovating rural water assets. One concern regarding MGNREGA has been that even when the programme enhances incomes and livelihoods of the poor, the structures it creates or improves may not be productive and durable. The chapter also reviews case studies of best-performing MGNREGA water assets. We find that, on average, the best-performing assets are able to generate gross returns equal to their investment in a little over a year. The chapter teases out eight lessons, which, if incorporated in programme design and administration, can enhance its ‘strike rate’ in delivering productive and durable rural water infrastructure.
Shilp Verma, Tushaar Shah
Chapter 5. Has Profitability of Foodgrain Production Declined After Implementation of MGNREGS in India?
Abstract
Whether national rural employment guarantee scheme (MGNREGS) introduced during 2006 has increased the farm wage rate substantially to the point that has reduced farm profitability due to the programme. This is still an unsettled issue in the literature. Hence, in this paper, an attempt has been made to analyse these issues utilising cost of cultivation survey data published by the Commission for Agricultural Costs and Prices. With the data of different states from 2000–01 to 2010–11, the study has covered five different foodgrain crops namely paddy, wheat, jowar, bengal gram (channa) and pigeon peas (red gram) for the analysis. The study does not seem to support the argument that the profitability of foodgrain crops has declined after the introduction of MGNREGS. This is not only true with high area with high productivity (HAHP) states but also with high area with low productivity (HALP) states. However, this study shows that the real cost incurred on account of human labour has increased considerably in all five crops in both High and low productivity states during the MGNREGS period (2006–07 to 2010–11) as compared to preceding years. In fact, real profitability even after subtracting the cost of imputed value of family labour cost used in the cultivation of the crops (cost C2) has either increased or the losses incurred reduced in all five crops in both HAHP and HALP states. The number of years profit realised by the farmers has also increased in most crops during post-MGNREGS period as compared to pre-MGNREGS period (2000–01 to 2005–06). Increased productivity of most of these crops also might have helped to increase the profitability of farmers across the country, even taking account increase in human labour cost during the same period.
A. Narayanamoorthy, Madhusudan Bhattarai, R. Suresh

MGNREGA: State Level Experiences and Outcomes

Frontmatter
Chapter 6. From EGS to MGNREGS in Maharashtra: Were the Programme Potentials Achieved?
Abstract
Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) implemented since 2006, is considered to be a landmark policy in India, in terms of its socio-economic implications in rural India. The aim of the scheme is to provide safety net to the rural poor and marginalised groups by generating employment and creating durable assets. The state of Maharashtra was the pioneer state to initiate employment guarantee scheme (EGS) for rural poor during the drought years of early 1970s. From 2006, both the schemes of EGS and MGNREGS are being implemented in Maharashtra state simultaneously. This has provided us an opportunity to compare performance of the two schemes on the ground. This chapter analyses employment generated and the assets created under traditional EGS and MGNREGS in Maharashtra. The EGS and MGNREGS have been successful in providing the employment in the state, however, durable and good quality assets have not been created by these schemes to have a dent on agricultural productivity. The extent of employment generated annually under MGNREGS in Maharashtra in the last few years was in fact less than that generated under EGS before 2005–06. There are several practical problems in the implementation of the scheme in Maharashtra. There is a need for locating new and appropriate types of works and innovative ways of implementing the scheme and need for providing timely technical help to the gram panchayats. It would be more desirable if the creation of employment under the schemes also leads to creation of durable assets and efficient management of water and other natural resources locally, thus, ultimately increasing the overall productivity of the agricultural sector as a whole.
Jayanti Kajale, Sangeeta Shroff
Chapter 7. Asset Creation Under MGNREGA and Sustainable Agriculture Growth: Impacts of Convergence Initiatives in Odisha and West Bengal
Abstract
In 2009, the Government of India announced a new set of guidelines for planning of works and preparation of labour budget under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). This guideline made it mandatory for the states to ensure that at least 60% of MGNREGA related works undertaken in a district in terms of costs, is spent for creation of productive assets that are directly linked to agriculture and allied activities. This is very important considering that creation of productive assets is necessary not only for making ecological regeneration but also for ensuring sustainable growth of agriculture sector and creation of livelihood opportunities in a village economy. In this chapter, the authors analyze and document experience towards convergence of the MGNREGA work with other rural developmental schemes in the Odisha and West Bengal states of India. More specifically, the Chapter addresses the following issues: What are the different types of convergence models that have been initiated in Odisha and West Bengal? How have the joint efforts of various line departments contributed to conservation and management of natural resources? Are assets created under convergence initiatives sustainable in the long-run? How have these assets contributed to agriculture sector, particularly in respect of increase in production and yield, changes in cropping pattern, crop diversification, and multiple cropping? Can the existing institutions contribute to management and utilization of the assets created under convergence? If not, what institutional supports are necessary in this regard?
Pulak Mishra, Saswat Kishore Mishra
Chapter 8. MGNREGS: Political Economy, Local Governance and Asset Creation in South India
Abstract
Any governmental policy or programme is envisaged and implemented in a particular institutional context. The specificities of the local-level institutions considerably influence the processes of planning and implementation, even if the programme is conceived beyond the local. This study aims to bring out the interplay between the regional- and local-level institutions and a centrally sponsored national-level programme. The dynamics of local-level institutions on the processes and outcomes is analyzed in this study. Exploring MGNREGS, the premier centrally sponsored rural employment programme, this study focuses on three aspects: the local-level governance capacity, local governance structure and the regional political economy in shaping the programme in South India. Much of the scholarship on MGNREGS has focused on its primary goal of employment creation, while scant attention has been directed to its equally important twin goal, rural asset creation for enhancing rural livelihood. This study, focusing on asset creation under MGNREGS, collected evidences from the four southern states, viz., Andhra Pradesh (erstwhile), Tamil Nadu, Karnataka and Kerala. A comparative analysis of the four states shows that the design of the scheme for asset creation is subject to considerably varied interpretations at the regional and sub-regional levels anchored on the above factors. Further, the type of projects selected and created, extent and nature of expenditure incurred, quality of assets created, and maintenance of assets were considerably affected by the structures of local governance, the interaction between the political class and the local governments, and the local manifestations of class–caste dynamics.
Vinoj Abraham
Chapter 9. MGNREGA and Inclusive Development: A Case Study in Tripura, Northeast India
Abstract
The MGNREGA is a flagship programme of government of India, and since 2009, it is being implemented in all the states and districts of India, with dual objectives of creating jobs and productive assets in rural India. The smaller northeastern state—Tripura—has successfully implemented the MGNREGA programme and has achieved a marked notable success. This chapter assesses impact of the scheme on the participating households in the Dhalai district of Tripura. Besides compiling the secondary data, primary information was collected across XX households using structured schedules. The study illustrates that MGNREGS has impacted positively on livelihood of the participating poor and marginal households. The programme has led to increase in asset base on income assurance. The study also finds more job opportunities for the unreserved categories due to decreasing trend in allotment ratios for the STs in the study area. However, with the recent changes in the operational framework of the programme, the participants are apprehensive about future of the scheme and security of their employment.
Indraneel Bhowmik, Pritam Bose, Samrat Goswami, Pradip Chouhan

MGNREGA: Micro Level Case Studies

Frontmatter
Chapter 10. Inter-sectoral Linkages and Multipliers of MGNREGA in a Rainfed Village in Karnataka: Applications of Social Accounting Matrix (SAM)
Abstract
This chapter examines inter-sectoral linkages of Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) interventions in a village economy of Karnataka state. This is done using framework of social analysis matrix (SAM) in Markabbinahalli village, a predominantly a rainfed village, of Bijapur District in northern Karnataka. An in-depth survey was done in 2013, SAM of 82 × 82 column and rows (activities) was constructed to analyze direct, indirect and inter-sectoral linkages of village level activities for year of 2012–13, in relation to MGNREGA interventions. The SAM analysis suggests that additional investment of Rs. 1 million by MGNREGA in the studied village increased 1.1% of total income of the village, provided a full employment to 18 households at the rate of 340 days of work per person per household annually at a wage rate of Rs. 300 per day. Major share of the MGNREGA investment went to indirect impact (84%), also known as multiplier effects of the investment. The net impact of MGNREGA on labour income in the studied village was weak due to expenditure to several activities that were produced outside of villages such as machinery uses in construction, skilled labour uses, etc. We suggest that making the programme more demand driven, taking more labour intensive work activities under MGNREGA would also ensure more circulation of MGNREGA expenditures within the local economy, which would produces more employment and income locally due to increased feedback and inter-sectoral linkage (or multiplier) effects.
Gourav Kumar Vani, P. S. Srikantha Murthy, Madhusudan Bhattarai
Chapter 11. Economic Impacts of MGNREGA in Dryland Region of India: A Meso and Micro Study in Selected States
Abstract
This chapter assesses impacts of MGNREGA in selected six states and selected sample households in four districts of Karnataka, covering both macro level and micro scale analysis. We analyze data on whether MGNREGA programme has been successful in providing 100 days of employment per annum to rural poor households, and to what extent the MGNREGA has offered social protection to the rural poor. Likewise, whether increase in agricultural labour wage rate in recent years is due to introduction of MGNREGS. The results indicate that at the macro level, the performance of MGNREGA is not even across the six dryland states selected here, even after a decade of its implementation. Only 7–12% of the households could receive 100 days of employment from MGNREGA in the six states studied. In Karnataka, over 60% of households were provided employment for less than 60 days. It was observed that the benefits obtained are largely at the community level through asset creation that includes desiltation of irrigation tanks, rural connectivity and construction of school buildings. Though MGNREGA works were able to assure sustainable development through improved Natural Resource Management in some regions, it failed in providing social protection where the leadership of implementing agencies was weak and lack of dynamism. Stringent rules and regulations resulted in inordinate delays in executing works and making timely payment of wages to workers. Addressing these issues in the implementation of MGNREGS would enhance its multi-dimensional impacts on rural poor across the India, and ensuring for sustainable development in rural India.
N. Nagaraj, P.S. Srikantha Murthy, M. G. Chandrakanth, Madhusudan Bhattarai, Namrata Singha Roy

MGNREGA: Governance Challenges and It’s Future Perspectives

Frontmatter
Chapter 12. Can Employment Guarantee Scheme (EGS) Ensure Inclusive and Resilient Growth in Rainfed Areas: Convergence Lessons Learned and Way Forward
Abstract
Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MGNREGA or MGNREGS) emphasises on drought proofing, soil conservation, land productivity and water security as the principle areas for taking up works under the sub-head of natural resources development. Converging MGNREGS with other programmes to contribute to agriculture growth has been a major policy concern. This paper lays out a case for making MGNREGS more effective in strengthening agriculture, livestock and fisheries in rainfed areas. It builds on the field experiences of WASSAN and Revitalising Rainfed Agriculture Network in engaging with MGNREGS and agriculture in rainfed areas across several states. From this study, we found that MGNREGS is uniquely positioned to make a substantial contribution to drive sustainability, resilience and growth in rainfed agriculture, livestock and fish production systems. Its strength lies in its universal presence, focus on labour, well laid out systems of payments, social audit and intensive coverage of rainfed geography. The chapter also suggests that some boundary conditions for not compromising the constitutional mandate of MGNREGA. Such expansion of scope of the Scheme without compromising its own objectives can potentially have a multiplier effect of its investments in achieving resilience and growth of rainfed agriculture.
Ravindra Adusumilli, Ashima Chaudhary
Chapter 13. The Journey of MGNREGA: Changing Approaches and Challenges
Abstract
Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS or MGNREGA) remains the most important and unique strategy for creating rural employment in India. Thereby, assessing the programme taking into the emerging context of rural India in 2015–16 as done in this chapter provides us valuable information for addressing alarming level of inequity and poverty situation in rural India. Unfortunately, lack of a rigorous analysis of the interrelationships between employment, poverty alleviation and fostering equitable development amongst the varied social groups, over time and space, has thus made it difficult to understand the developmental dynamics of MGNREGA. In this regard, this paper addresses some of the gaps observed in implementation of MGNREGS in India. The empirical analysis is based on data from the official websites of ministry of rural development, MGNREGA implementing authority, from 2006–07 to 2014–15. While the MGNREGA implemented in 2006 is a significant modification over the Employment Guarantee Programme (EGS) implemented in Maharashtra (i.e. MEGS) since early 1970s, we have also compared impacts and outcomes of the MGNREGS with that of MEGS, and provided the results in a comparative perspective. MGNREGA in its present format, though had significantly contributed towards improving the status of the rural households, the continuity of the programme in future may face several challenges. While the very nature and content of the programme had undergone significant modifications and adaptations over the past one decade of its existence, the future potential of the programme may also depend upon how its implementation process would be adapted as per the changing dynamics of rural economies, the socio-economic and demographic characteristics of the rural households.
Amita Shah, Aasha Kapur Mehta, P.K. Viswanathan, Nicky Johnson
Backmatter
Metadata
Title
Employment Guarantee Programme and Dynamics of Rural Transformation in India
Editors
Dr. Madhusudan Bhattarai
Dr. P.K. Viswanathan
Dr. Rudra N. Mishra
Dr. Cynthia Bantilan
Copyright Year
2018
Publisher
Springer Singapore
Electronic ISBN
978-981-10-6262-9
Print ISBN
978-981-10-6261-2
DOI
https://doi.org/10.1007/978-981-10-6262-9