Monday, September 29, 2008

Villagers who demanded employment got it

NREGS is one scheme in Independent India, which is beneficial to the poor. If economists and experts are to be believed, then hunger can be eradicated completely if this scheme is implemented honestly. Initially, the scheme was implemented in 200 villages across India in the first phase, and another 130 villages were added in the second phase. The scheme was to be applicable across the country in five years.

But, in 2008, it was decided that all the 593 districts would be brought under the scheme. This was done due to pressure from the Congress in the wake of the forthcoming general elections the next year. As per the scheme, every family of unskilled labourers would be given guaranteed employment for 100 days a year. But the Rural Development Ministry accepts that the goal is tough to achieve. As per its report for 2006-07, 2,11,88,894 families demanded employment, but only 2,10,16,099 families managed to get it. The real catch is that the government could provide 100 days of assured employment to only 21,42,718 families, which is 10% of the total.

The reality is worse. The representative of the Society for Participatory Research in Asia, Rajesh Sinha, says, “After our research on NREGS, we found that only 6% of those who demanded employment got it.” It is evident that there are flaws in implementation. Economist Alok Puranik says, “The scheme is good, but the problem lies in implementation and accountability. Private sector should be involved to make it more effective.” In terms of Budget, around Rs.18,000 crore is expected to be allotted and approved by the government this fiscal.

But one should ensure that the scheme doesn’t fall prey to discrimination and corruption. Being the main party within the UPA government, the Congress is trying to take away all the political profits. Other partners too are claiming credit. Former IAS and National Vice President of the Republican Party of India, R. S. Darapuri, explains, “In states, where opposition parties have formed the government, the CMs neglect the scheme thinking that it’s a Congress initiative. The Uttar Pradesh CM, Mayawati, recently said that she would dissolve the scheme if she becomes the PM. But the reality is that the scheme can help remove hunger from the country.”

So, while the rural employment scheme can ensure the upliftment of the poor in the long run, its implementation needs to be closely monitored by the Centre and state governments. Or else, it will never become an election issue.

The Snapshot

NREGS was launched in 2006; initially, 200 villages were covered, and this was expanded by another 130 villages in the second phase

In 2008, it was decided to extend the scheme to all the 593 districts in the country

Nearly Rs 18,000 crore is likely to be allocated and spent on the scheme in the coming fiscal (2008-09); it works well in areas where the locals or the civil society take an avid interest to ensure employment.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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