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DIGGING DIRT
NREGS has the potential to revive India’s rural economy
MARCH 25, 2008: Some call it a ditch-digging scheme and a fountainhead of corruption; others say it is the best thing to have happened in rural development. The truth is the national rural employment guarantee scheme (NREGS) is both. Two years since it was implemented in 200 districts across India, NREGS offers a mixed bag of results. There are villages where the scheme has provided employment to a large number of people leading to the creation of public assets whereas in some parts corrupt politicians and public officials have siphoned off the funds. However, the government has decided to extend the NREG Act to the entire country from April this year. This could increase the number of intended beneficiaries from three million to nearly 10 million. The Act guarantees 15 days of employment, subject to a limit of 100 days in a year, to one member of a rural household.
But is NREGS merely institutionalising a dole disbursal mechanism? Intelligent planning by civic officials and public action could make use of NREGS funds to create public assets. Rural infrastructure schemes like renovation of water sources and roads could be carried out under NREGS. Such innovations are being implemented in many villages and could be replicated elsewhere. The government should now think in terms of providing technical and institutional support systems to back these.
Assured employment, even if for a short period, at minimum wages for rural labour has brought in more money into the local economy. Real wages have gone up in most places, which translate into demand for goods in the local market. A vibrant rural economy will take the pressure off our cities. There is indication that distress migration has declined in districts covered under NREGS. If backed by government and followed by public action, NREGS could change the face of rural India. (Times of India)
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The
implications of NREGS are staggering. The Act calls for massive
spending of public money and there is scope for corruption. However,
experience from districts where NREGS has been implemented with some
success reveals that it is possible to curtail corruption and use
the funds to transform local economy. Social audits and judicious
use of the Right to Information Act by civil society groups and
activists have exposed misuse of funds. Muster roll verification
exercises conducted by trained student volunteers in various states
indicated corruption in NREGS. Interestingly, these surveys revealed
that corruption is much less when compared to food-for-work
programmes of the past. There is more public scrutiny of development
works. The standards of accountability set by NREGS have started to
influence implementation of other public works as well.