Employment and Livelihood Security through MGNREGA: A ......MGNREGA – Impact Employment to 47.6...
Transcript of Employment and Livelihood Security through MGNREGA: A ......MGNREGA – Impact Employment to 47.6...
Employment and Livelihood Security
through MGNREGA: A Case of a Right-
based Social Protection Floor in India
ILO, Amman
May 2014
Flow
• India: A Few Basic Facts
• Why Rural Public Works Programmes
• MGNREGA:
– Scope, Coverage & Evolution
– Objectives and Goals
– Processes & Provisions
– Costs and Benefits
– Issues & Challenges
– Way forward
India: A Few Facts
3
• 3/4th of India’s 1,128 million people live in rural areas (2013)
• > 66 % of labour force is in agriculture and allied activities
• Poverty 22 % (269.7 million) – 2011-12
• Rural poverty 25.7% (216.65 million) – 2011-12
• Rural Literacy – 67.8% [Male: 77.2% & Female: 57.9%]
• Rural unemployment rate CDS – 2009-10 [Male: 64, Female:
80, Total:68]
• WPR between 1983-84 and 2009-10 stagnant (Male) or
reduced (Female)
Why Rural Public Works Prog.?
• Livelihood insecurity for millions living in rural areas
• Rural-urban/ male-female divide in: – literacy level
– employment and wages
– WPR either remained constant (male) or declined (female) between 1983-84
and 2009-10
• Minimal participation of poor in devt. programmes
• Heavy dependence on agriculture for livelihood
• Low agriculture productivity
• Low & unequal wage rates between men & women
• Need for investment for job avenues in rural sectors
• Environmental degradation
Mahatma Gandhi National Rural Employment
Guarantee Act, 2005 (MGNREGA)
An Act to provide for
the enhancement
of livelihood security of the
households in rural areas of
the country
by providing at least
100 days of legally
guaranteed wage
employment in
every financial year to every
household
whose adults volunteer to
do unskilled manual work
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Scope & Coverage
• Covered all federal States and sub-state units in 3 phases
(2006 to 2008)
• Total Households (families) : 246.69 million
• 68 per cent (167.82 million) are rural
• 131.4 million (78.3%) rural households have been provided
with job cards
• 44.4 million rural households have been provided with jobs
MGNREGA: Evolution & Transition
HISTORY
The Transition.........
MGNREGA: Transition from “Allocation based
welfare program” to “Rights based, Demand
driven, people centric, bottom-up, self selecting”
strategy
05.09.05: Historic legislation passed
02.02.06: Implemented in 200 districts
01.04.07: Extended to 130 districts
01.04.08: Extended to remaining districts (Currently in 644
districts)
31.12.09: Name of the Act changed w.e.f 02.10.09
MGNREGA: Objectives
Provide not less than 100
days’ work as per demand
resulting in creation of
productive assets of
prescribed quality and
durability;
Strengthen the livelihood
resource base of the poor
Proactively ensure social
inclusion & Strengthen
Panchayati Raj Institutions
(PRIs)
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MGNREGA: Goals
• Enhance livelihood security of the rural poor – supplement wage-employment opportunities
– provide a safety net for rural poor
• Rejuvenate natural resource base of the area – sustainable rural livelihoods
• Create a productive rural asset base to: – enhance productive ways of self-employment
– augment and sustain rural household income.
• Ensure empowerment of women
• Strengthen grassroots democratic processes
• Stimulate the local economy by providing a safety net to rural poor
MGNREGA: Right Based Framework
• The rights-based framework of MGNREGA ensures
workers’ rights through:
– self-selection of jobs,
– time bound guarantee of getting jobs,
– getting jobs in and around the place of habitation
– flexibility in working hours in a given day
– wage payment in a time bound manner and through
financial intermediaries
– compensation for delayed wage payments
– expeditious redressal of grievance through social audit
(audit by the community itself)
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Primary Stakeholders & Roles
1. Central Govt: Provide funds, ensure that the
spirit of the Act is observed
2. Federal Govts: Preparation of Scheme &
Implementation
3. Self-govt. institutions : Planning & Execution
4. Workers: Rights & entitlements
5. Community: Planning & Oversight
Permissible Works • Works categorised into 4 broad areas
– Public works for NRM
• soil and water mgt, afforestation, land devt. etc.
– Individual assets for vulnerable groups
• Land productivity, livelihood promotion, fallow/waste
land devt., IAY house, livestock promotion, fisheries
promotion
– Common infrastructure for NRLM compliant SHGs
• Agri-productivity, common work-sheds
– Rural Infrastructure
• Sanitation, connectivity, play field, GP buildings, food-
grain storage, maintenance of assets
Category-wise Public Works Taken-up
Water conservation
37%
Works on individual
lands 12%
Rural Connectivity
11%
Land development
5%
Rural Sanitation
28%
Any Other Works
7%
Water conservation
46%
Works on individual lands
11%
Rural Connectivity
12%
Land development
6%
Rural Sanitation 15%
Any Other Works
10%
FY 2012-13 FY 2013-14
Financing MGNREGA
• Central Government: – Amount required (100%) for payment of wages for
unskilled manual work
– 75% of the material cost of the scheme including payment
of wages to skilled and unskilled workers
– 6 % administrative cost over and above the wage and
material cost
• State Government – Cost of unemployment allowance payable under the
scheme
– 25% of the material cost of the Scheme including payment
of wages to skilled and semi-skilled workers
Expenditure under MGNREGA 2006-2013 (Rs. In Million)
Year Wages Materials Total
Expenditure
Wage: Material
Ratio (%)
1 2 3 4 5
2006-07 584.2 275.8 882.3 68:32
2007-08 1,073.8 461.7 1,585.6 70:30
2008-09 1,820.0 810.0 2,725.0 69:31
2009-10 2,557.9 1,108.4 3,790.5 70:30
2010-11 2,568.6 1,189.1 3,937.7 68:32
2011-12 2,430.6 1,065.0 3,707.2 70:30
2012-13 2,712.8 1,040.3 3,965.7 72:28
2013-14 2,609.7 915.9 3,746.8 74:26
Total 16,357.8 6,866.5 24,341.1 70:30
Source: Ministry of Rural Development (www.nrega.nic.in)
MGNREGA & Decent Works
Variables Enabling Provisions
Productivity Linked to Agricultural productivity (soil and water)
Freedom Legal sanctity, right to work
Equity Equal remuneration, gender neutrality and linked to notified
Minimum wages
Security Employment insurance, and broadening of choices
Work Hours 8 hours with an hour of break
Human
dignity
No compulsion, application for job, choice of works, choice of
date from which jobs will be performed
Working
Conditions
Worksite facilities defined in the Act. Provisions are made for
hospitalization in case of injury, ex-gratia in case of death
and permanent disability, crèche facility for children and
grievance redressal systems
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MGNREGA – Impact
Employment to 47.6 million
Households (during 2013-14)
Reduction in Distress Migration
Enhanced Food Security
Higher Land Productivity
Women Empowerment
Equal Wages for Men and Women
Higher Bargaining Power for Workers
Financial Inclusion: 9.37 Crore accounts
in Banks and Post Offices
Major Safety Net.
Strengthening of Community Level
Decentralized Democratic Institutions
(Panchayats) 20
Issues & Challenges
• Huge Gap between Labour Projection & Demand at Field Level
• Accurate and Timely Capture of Demand for Work
• Inadequate HR at Each Level of Prog. Implementation
• Delay in Payment of Wages
• Capacity Building Issues
• Poor Quality & Productivity of Assets Created under
MGNREGA:
• Social Inclusion of the Marginalized & Vulnerable Groups
• Transparency & Accountability Issues
• Grievance Redressal Mechanism
• Information, Education & Communication (IEC)
• Convergence & Quality Management
Way Ahead
• Strengthening Decentralised Planning and Preparation of
Realistic Labour Projections
• Facilitating Accurate and Timely Capture of Work Demand
• Participation of Marginalized & Vulnerable Groups
• Organizing Workers to Articulate Voice & Demand
• Interventions for Vulnerable Groups
• Electronic Fund Management System (e-FMS)
• Payment of Wages at Doorstep: Business Correspondents
• Encourage 100% Electronic Muster Roll (e-MR)
• Convergence and Collaboration with other Ministries/Depts.
• Transparency and Accountability
THANKS