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2018 | OriginalPaper | Chapter

13. The Journey of MGNREGA: Changing Approaches and Challenges

Authors : Amita Shah, Aasha Kapur Mehta, P.K. Viswanathan, Nicky Johnson

Published in: Employment Guarantee Programme and Dynamics of Rural Transformation in India

Publisher: Springer Singapore

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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.

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previous chapter Can Employment Guarantee Scheme (EGS) Ensure Inclusive and Resilient Growth in Rainfed Areas: Convergence Lessons Learned and Way Forward
Appendix
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Footnotes
1
Performance of MGNREGA has been far from satisfactory in recent years in terms of the average number of days of employment generated per household, percentage of actual expenditure made against total funds available and the percentage of works completed (Jha and Gaiha 2012). Instances are many where the works undertaken for asset creation remained incomplete along with poor quality of such assets created (GoI 2014; ILO 2014; Drèze and Khera 2009).
 
2
At the all-India level, it was found that the relatively deprived social groups, STs and SCs, have been left out of the growth process and the other social groups (OSGs) perform the best. The finding on increasing disparity between the poorest and richest states was corroborated by the estimates of: (i) coefficient of variation, which increased from 17.59 to 30.78% for mean [per capita consumption expenditure]; and (ii) index of dispersion, which increased from 17.63 to 32.98% for rural mean per capita consumption across major states between 1993–94 and 2011–12 (Suryanarayana and Das).
 
3
Under MGNREGA, employment was provided to 5.62 Crore Households and it also resulted in an average increase in household income by around Rs. 6,000 per year. As part of financial inclusion, 9.29 crore bank/postal accounts are opened and the scheme also resulted in the increase of purchasing power in rural areas (Niti Aayog 2015).
 
4
Based on a study in a Gujarat village (Nana Kotda) in South Gujarat, Hirway et al. (2010) reported that the expenditure on various NREG works had generated multiplier impact on the rural economy, even though the impact was low due to the various leakages in implementation.
 
5
Ministry of Rural Development (2016a).
 
6
Ministry of Rural Development (2016b).
 
7
The NCAER study was quite unique in terms of its coverage and methodology adopted. It surveyed 26,000 rural households that were interviewed twice, once in 2004–05 before MGNREGA’s passage and again in 2011–12, after the programme had been extended nationwide.
 
8
The objective of this skill certification and reward scheme is to enable and mobilise a large number of Indian youth to take up outcome-based skill training and become employable and earn their livelihoods.
 
9
The ‘Make in India’ initiative launched by the Government of India to promote manufacturing in 25 sectors of the economy shall lead to job creation and consequently generate need for skilled manpower.
 
10
The surge in inflation during recent years had curtailed considerably the magnitude of real benefits to be gained from the NREG (Kannan and Jain 2013: 51).
 
11
The MoRD moved a Cabinet note to expand the scope of MGNREGA by extending the number of annual work entitlement days from 100 to 150 in areas to be declared drought-affected by the respective state governments. This comes in the wake of a prospective monsoon failure for a second consecutive year as forecasted by India Meteorological Department (IMD). Expansion of the work entitlement days by 50 stems from the concern that there would be greater demand for wage-related work in drought-affected districts. Further, it will be applicable to only those households which complete 100 days of work.
 
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Metadata
Title
The Journey of MGNREGA: Changing Approaches and Challenges
Authors
Amita Shah
Aasha Kapur Mehta
P.K. Viswanathan
Nicky Johnson
Copyright Year
2018
Publisher
Springer Singapore
Book
Employment Guarantee Programme and Dynamics of Rural Transformation in India

Print ISBN: 978-981-10-6261-2

Electronic ISBN: 978-981-10-6262-9

Copyright Year: 2018

DOI
https://doi.org/10.1007/978-981-10-6262-9_13