Minor Research Project in Social Sciences UGC MINOR PROJECT MRP (H)-0978/13-14/KLCA020/UGC-SWRO IMPACT OF MAHATMA GANDHI NATIONAL RURAL EMPLOYMENT PROGRAMME ON RURAL LIVELIHOOD AND AGRICULTURE SECTOR OF ADAT GRAMA PANCHAYAT Final Report by the Principal Investigator to the UGC (19 th June, 2014 to 18 th December 2015) by DR. RAJESH K PG DEPARTMENT OF ECOOMICS, ST ALOYSIUS COLLEGE, ELTHURUTH, THRISSUR MARCH 2017
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IMPACT OF MAHATMA GANDHI NATIONAL RURAL …€¦ · (Gupt a et al., 2011) was also improved. The rural impact of MGNREGA is crucially depends on the way of implementation by the local
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Minor Research Project in Social Sciences
UGC MINOR PROJECT MRP (H)-0978/13-14/KLCA020/UGC-SWRO
IMPACT OF MAHATMA GANDHINATIONAL RURAL EMPLOYMENT
PROGRAMME ON RURAL LIVELIHOODAND AGRICULTURE SECTOR OF ADAT
GRAMA PANCHAYAT
Final Report by the Principal Investigator to the UGC(19th June, 2014 to 18th December 2015)
by
DR. RAJESH KPG DEPARTMENT OF ECOOMICS,
ST ALOYSIUS COLLEGE, ELTHURUTH,THRISSUR
MARCH 2017
CERTIFICATE
I hereby declare that the UGC Minor Project entitled “Impact of Mahatma Gandhi
National Rural Employment Programme on Rural Livelihood and Agriculture
Sector of Adat Grama Panchayat ” is an authentic record of the research work
carried out by me and that no part of this work has been presented for the award of
any degree in any other University.
THRISSUR, Dr. RAJESH K15 March, 2017 (Principal Investigator),
Assistant ProfessorPG Department of Economics,
St Aloysius College, Elthuruth,Thrissur
i
ACKNOWLEDGEMENTS
I wish to place on record the deep sense of gratitude and heartfelt thanks to Dr. (Fr). Babu
Paul CMI, Principal, St Aloysius College, Elthuruth, Thrissur for the invaluable guidance
and encouragement rendered throughout this work.
I express my deep sense of gratitude to all the teachers of the Department of Economics,
St Aloysius College, Elthuruth, Thrissur for their constant encouragement and for the
facilities extended for the research work.
I am grateful to organizations like Planning Board, CDS Thiruvananathapuram, Central
Library of Calicut and Cochin University for allowing me access to their libraries.
I express sincere thanks to Ms.Ambika, accountant cum data entry operator and other
staffs of Adat Panchayat, for their timely support. Equally I am thankful to Mr.Rajendran,
President of Adat Cooperative Bank and the ward members of the panchayat for their
inputs and their active involvement in the discussions.
Last, but not least, I would like to express my sincere gratitude to my wife Ramya and
daughter Rithika for their prayers and unflinching support for completion of this work.
Dr Rajesh K.
ii
Contents
Acknowledgements i
Contents ii
List of figures iv
List of Tables v
Chapters
1. Design of the Study
1.1.Introduction 1
1.2.Literature Review 3
1.3.Rationale of the Study 4
1.4.Objectives 5
1.5.Conceptual Framework of the Study 5
1.6.Methodology and Data Base 6
1.7.Scope of the Study 6
1.8.Limitations of the Study 7
1.9.Plan of the Thesis 7
2: An Overview of Mahatma Gandhi National Rural
Employment Programme 8
2.1. Introduction 8
2.2. Origin of MGNREGA 8
2.3. Analysis of MGNREGS in India-A Macro Scenario 13
2.4. MGNREGS in Kerala 20
2.5. MGNREGS in Thrissur 23
2.6. Summary 24
3: Evaluation of MGNREGS in Adat Panchayat 28
3.1. Introduction 28
3.2. Adat Panchayat-Basic Features 28
3.3. Present Status of Agriculture in Adat Panchayat 31
iii
3.4. Implementation of MGNREGS in Adat Panchayat 32
3.5. Evaluation of the Performance of MNREG Programme 33
3.6. Comparing the Performance of MHNREGS of Adat Panchayat with
Puzhakkal Taluk, Thrissur District and Kerala 40
3.7. Summary 42
4: Impact of MGNREGS on the Rural Livelihood of Adat Panchayat 46
4.1. Introduction 46
4.2. Methodology 46
4.3. Analysis of Field Survey Results 47
4.4. Summary 57
5: Summary of Findings and Conclusion 61
5.1. Summary of Findings 61
5.2. Conclusion 71
Appendices 72
References 75
iv
List of Figures and Graphs
No Title Page NoFigure 3.1 Map of Adat Panchayat 30
Figure 3.2 Seasonal variation of employment demand (2011-12 to2015-16)
37
v
List of Tables
No Title Page NoTable 2.1 Fund allocation towards MNREGS in India 14Table. 2.2 Overview of the performance of MGNREGA in India 15Table 2.3 Details of demand employment and worked (2015-16) 17Table.2.4 Wage rate of MNREGS (over the period) 19Table. 2.5 Status of MGNREGA in Kerala 20Table 2.6 District wise performance of MNREGS in Kerala (2015-16) 22Table.2.7 Evaluation of MGNREGS in Thrissur 23
Table 3.1 Basic details of Adat Grama Panchayat 29Table 3.2 Political/Geographical features of Adat 30Table 3.3 Details of the employment details (2011-12 to 2015-16) 34Table 3.4 Details of the provision of 100 days of employment (2011-12
to 2015-16)35
Table 3.5 Employment demand in Adat (2011-12 to 2015-16) 36Table 3.6 SC/ST participation in MGNREG scheme (2011-12 to 2015-
16)37
Table 3.7 Employment status of SC/ST community of Adat (2011-12 to2015-16)
38
Table 3.8 SC Household worked less than 15 days (201-12 to 2015-16) 39Table 3.9 Comparison the efficiency on the basis of selected variables 40Table 4.1 Religion wise classification of the respondents 47Table. 4.2 Caste/gender wise classification workers 48Table 4.3 Education details of the respondents 49Table 4.4 Age wise distribution of MGNREGS workers 49Table 4.5 Number of members in the family 50Table 4.6 Number of earning members 51Table 4.6 Details of Workers Houses 52Table 4.7 Major source of income of the house hold 53Table 4.8 Number of days of employment 53Table 4.9 Changes before and after the implementation of MGNREGS 54Table 4.10 Level of satisfaction of MGNREGS workers 55Table 4. 11 Reasons for opting MNREGS jobs 56
1
Chapter 1
Design of the Study
1.1. Introduction
India is a country with vast majority of the workers depending on the informal
sector for livelihood. Almost 86% of the total workers belong to informal sector (GIDR,
2014). However, their share in national output is only 50% approximately. Most of these
workers are either casual in nature or are self employed. These workers have no security,
no legal contract, no health benefits and other benefits extended to the workers of the
formal sector (Kannan and Breman, as quoted in GIDR). Their vulnerability is extended
by the necessity to remain mobile due to the saturation and lack of demand in the primary
agricultural sector. They generally have to work outside the place of their birth and face
many uncertainties due to unfamiliar conditions, work expectations and job profile
(Kannan and Breman, as quoted in GIDR). Since seventies, the Government of India has
been experimenting special schemes for rural development such as Integrated Rural
Development Programme (IRDP1), National Rural Employment Programme (NREP2),
1 The Integrated Rural Development Programme is a self-employment program intended to raise theincome-generation capacity of target groups among the poor. It started in the year 1979. The target groupconsists largely of small and marginal farmers, agricultural labourers and rural artisans living belowthe poverty line. The scheme has been merged with another scheme named Swarnajayanti GramSwarozgar Yojana (SGSY) since 01.04.1999.
2 The NREP was launched in October 1980 and became a regular plan programme from April 1981. Theprogramme was expected to generate additional gainful employment in the rural areas, to the extent of300-400 million man days per annum, create durable community assets and improve nutritional statusand living standards of the poor.
2
Rural Landless Employment Guarantee Programme (RLEGP3) and Javahar Rozgar
Yojana (JRY4) , etc. to tackle the problem of unemployment and poverty through
employment generation and asset creation. The initiation of these schemes did produce
steady increases in employment generation though the rate of growth of employment
continued to somewhat lag behind that of the growth of the labour force. National Rural
Employment guarantee Scheme (NREGS5) is, one among them, relatively a recent
novelty embedded within the broad framework of poverty eradication in India. It aims at
enhancing livelihood security of households in rural areas of the country by providing at
least one hundred days of guaranteed wage employment in a financial year to every
household whose adult members volunteer to do unskilled manual work (GOI, 2015)6.
The MGNREGA has become a powerful instrument for inclusive growth in rural India
through its impact on social protection, livelihood security and democratic governance
(Ibid). The World Bank has recently acclaimed this program as the only insurance for
3 Rural Landless Employment Guarantee Programme was introduced on August 15, 1983, with theobjective of (a) improving and expanding employment opportunities for the rural landless with a view toproviding guarantee of employment to at least one member of every landless household up to 100 days ina year and (b) creating durable assets for strengthening the infrastructure so as to meet the growingrequirements of the rural economy.
4 Jawahar Rozgar Yojna was launched on April 1, 1989 by merging National Rural Employment Program(NREP) and Rural Landless Employment Guarantee Programme (RLEGP). The main objective of the yojanawas to generate additional gainful employment for the unemployed and under-employed persons in ruralareas. The other objective was the creation of sustained employment by strengthening rural economicinfrastructure and assets in favour of rural poor for their direct and continuing benefits.
5 Later, in 2009, it has been renamed as Mahatma Gandhi National Rural Employment Guarantee Act(hence forth MGNREGA or MGNREGS). The new name was unveiled on the birth anniversary of MahatmaGandhi, on October 2, 2009, with Prime Minister Manmohan Singh to commemorate the 50th anniversaryof the launch of Panchayati Raj.
6 Mahatma Gandhi National Rural Employment Guarantee Act, 2005-Report to the People, 2nd February2013, Ministry of Rural Development, Department of Rural Development, Government of India.
3
India (The Hindu, 2015) to eradicate rural poverty and unemployment, by way of
generating demand for productive labour force in villages.
1.2. Literature review
The following section explains literature on Mahatma Gandhi Rural Employment
Programme. This analysis is essential for an understanding of MGNREGA. Though there
are numerous field and micro studies are available, very few large scale surveys existing
to understand the precise impact of MGNREGA.
MGNREGA often describe as a mechanism to provide an alternative source of
livelihood through employment generation (Khan and Salluja, 2008: Hirway et al, 2009,
IIT Madras, 2009, Dey and Bedi, 2010) which will have an impact on reducing
migration, agricultural and livelihood vulnerability reduction (Esteves et al., 2013,
Ranaware et al., 2015) alleviating poverty, and making villages self sustaining through
productive assets creation such as road construction, cleaning up of water tanks, soil and
water conservation work, etc (Aggarwal et al., 2012; CSE, 2008). Among the various
activities being promoted under MGNREG Scheme ranges from water harvesting, soil
conservations, environment security and biodiversity and environment conservation
(Tiwari et al., 2011, Sebastian and Azeez, 2014). Corruption in rural employment
programe (Dreze, 2007, Mathur, 2009) and the mismanagement of MGNREGS funds
(Nayak, Behera, and Mishra, 2008) which demanded for an effective monitoring
(Mathur, 2007). Aadhaar-Enabled Payments for NREGA Workers was observed as one
of the method to curb this mismanagement (Bhatti, 2008). Recent research also shows
that corruption levels have steadily declined over time. The effective utilization of funds
4
(Gupta et al., 2011) was also improved. The rural impact of MGNREGA is crucially
depends on the way of implementation by the local bodies (Jacob and Varghese, 2006)
The study regarding the effectiveness of MGNREGA in Kerala context are less in
number. Sustainable rural development of Kerala legitimately demands an in depth study
of its impact on rural economy. The present study is an attempt in this direction. It is
expected to fill the gap in information.
1.3. Rationale of the study
MGNREGA is generally considered as a unique weapon to activate and empower
the rural poor. Many economists consider it as ‘revolutionary’ steps, which not only
provide the employment but also reduce the tendency of migration. It also acts as a major
weapon to empower the rural women. However, in the debate over the costs and benefits
of the Mahatma Gandhi National Rural Employment Guarantee Act, the most
controversial and unsettled issues is its effect on agricultural labour market. Whatever be
there as its social benefits, the National Rural Employment Guarantee Scheme may have
had a negative impact on productivity through rising wages without a commensurate
increase in output, and also shifted jobs from more productive areas like agriculture to
less productive (India Today, 2013). Notwithstanding this scenario, the state has very
little information on the precise impacts of MGNREGA. Sustainable rural development
of Kerala legitimately demands an in depth study of its impact on the local economy. The
present study is an attempt in this direction. It is expected to fill the gap in information
needed for planned and controlled development of rural development in the state.
5
1.4. Objectives
The overall objective of this study is to understand the long term impact of the
MGNREGA in Adat Panchayat of Thrissur district. This study specifically aims to:
a) To find out the economic impact of MGNREGA in terms of income, number
days of employment guaranteed and the changes in the standard of living of
the people.
b) To identify the impact of rural livelihood particularly on agriculture sector.
1.5: Conceptual framework of the study
The term livelihood indicates making a living. According to Chambers and
Conway (1992) a livelihood comprises the capabilities, assets (both material and social
resources) and activities required for a means of living. It encompasses people’s
capabilities, assets, income and activities required to secure the necessities of life. The
household is the basic economic decision making unit in rural society. It is essential to
understand householders’ livelihood strategies in order to make sense of what they are
doing and understand how they perceive opportunities for change. A livelihood is
sustainable when it enables people to cope with and recover from shocks and stresses
(such as natural disasters and economic or social upheavals) and enhance their well-being
and that of future generations without undermining the natural environment or resource
base. Livelihood studies show that increasing numbers of people opt for strategies
characterised by multi-tasking and income diversification. Such diversification is
pervasive and enduring, and is a common feature of both urban and rural livelihoods
(Ellis, as cited in De Haan, 2007). The nature of diversification can vary widely,
according to who undertakes it. For higher-income groups it is often an accumulation
6
strategy aiming at maximising profits by investing across sectors, but for the poor it is
often a survival strategy, a way of minimising risk and stabilising income, and usually
involves low-skilled, low-paid and often temporary employment (Tacoli, 2002). Most
livelihoods strategies rely heavily on agriculture, as many depends agriculture for their
livelihood. Majority of Adat panchayat’s people depend on agriculture and allied works.
Number of casual labours, that too in the informal sector, is also plenty in numbers.
Therefore, impact of MGNREGS on these sectors need to be addressed.
1.6. Methodology and data base
The methodology followed in this study is both descriptive and analytical to find
out the nature of employment guarantee scheme.
Both primary and secondary data was collected for this study to find out the long
term impact of MGNREGA in Adat Panchayat. Primary data have been collected by
interviewing various stakeholders in MGNREGA, such as panchayat officials, farmers
and MGNREGA workers. A structured questionnaire was used to find out the responses
of MGNREGA workers. Respondents were selected on a random basis i.e., twenty from
each villages of the panchayat. The primary survey was conducted during January, 2015
to December, 2015.
The secondary data have been mostly extracted from the official web site of
government (http://www.nrega.nic.in/) and other publications of Government of India
(GOI) and Government of Kerala (GOK).
1.7. Scope of the study
The study is predominantly descriptive in nature, which gives a bird’s eye view of
this sector. The study area is limited to the political limits of Adat panchayat of Thrissur
7
district. The focus of this study is predominantly to trace the economic and social
development and to identify the changes in the standard of living of the poor.
1.8. Limitations of the study
Major limitation of the study was reluctance of the workers in giving proper
responses.
1.9. Plan of the thesis
This thesis is presented in five chapters including this introductory chapter, i.e.,
design of the study. This chapter introduced the concepts of literature review, the
rationale of the study, objectives, methodology and data base, scope of the study and
limitations of the study. The plan of the thesis is also furnished in this chapter.
Chapter two presents the development of MGNREGS in India, Kerala and
Thrissur. Chapter three provides the assessment of the performance of MGNREGS in
Adat. Chapter four summarizes the impact of MGNREGS on the Rural Livelihood of
Adat Panchayat. Chapter five gives the summary of findings of the various chapters and
the conclusions.
8
Chapter 2
An Overview of Mahatma Gandhi National RuralEmployment Programme
2.1. Introduction
The National Rural Employment Guarantee Act (NREGA) is the most significant
act in the history of Indian polity in many ways like grass-root level participation of
every citizen and beneficiary through democratic process, multi-layered social audit and
transparency mechanism by involvement of civil society, comprehensive planning at
village level towards sustainable and equitable development etc. The objective of this
chapter is to provide an overview of MGNREGS in India. This chapter begins with an
introduction of MGNREGS, its mandate, objectives and the salient features of this act. It
is followed by an evaluation of the MGNRGS programme in India and Kerala.
Subsequently district wise performance of MGNREGS is also given. The last section
provides the summary of this chapter.
2.2. Origin of MGNREGA
As it explained in the previous chapter, the government has been experimenting
with various programmes in the country to uplift the living and employment standards of
the poor. It was on the basis of these programmes that the government enacted the
National Rural Employment Guarantee Act (NREGA) to reinforce the commitment
towards livelihood security in rural areas. NREGA marks a paradigm shift from the
previous Wage Employment Programmes (WEPs) and the Act was enacted by legislation
on 25 August 2005, which was later renamed as Mahatma Gandhi Rural Employment
Guarantee Act (MGNREGA). This act was brought about by the UPA coalition
9
government supported by the left parties. Dr. Jean Drèze, a Belgian born economist, at
the Delhi School of Economics, has been a major influence on this project.
The Act was implemented in phased manner. The Act was notified in 200 rural
districts in its first phase of implementation (with effect from 2 February 2006). In FY
2007–08, it was extended to an additional 130 rural districts. The remaining districts were
notified under MGNREGA with effect from 1 April 2008. Since 2008, MGNREGA has
covered the entire country with the exception of districts that have a hundred per cent
urban population (MRD, 2012). The scheme provides a legal guarantee for at least one
hundred days of employment in every financial year to adult members of any rural
household willing to do public work-related unskilled manual work at the statutory
minimum wage of 120 (US$2.20) per day in 2009 prices. If they fail to do so the
Government has to pay the salary at their homes. With its spread to over 625 districts
across the country, the flagship program of the UPA Government has the potential to
increase the purchasing power of rural poor, reduce distress migration and to create
useful assets in rural India. Also, it can foster social and gender equality as 23% workers
under the scheme are Scheduled Castes, 17% Scheduled Tribes and 50% women.
2.2.1. Mandate and Objectives
The mandate of the Act is to provide 100 days of guaranteed wage employment in
a financial year (FY) to every rural household1 whose adult members volunteer to do
unskilled manual work (MRD, 2012)
1 A household is defined as members of a family related to each other by blood, marriage or adoption,and normally residing together and sharing meals.
10
The objectives of the programme include (Ibid)
• Ensuring social protection for the most vulnerable people living in rural India
through providing employment opportunities,
• Ensuring livelihood security for the poor through creation of durable assets,
improved water security, soil conservation and higher land productivity
Strengthening drought-proofing and flood management in rural India,
• Aiding in the empowerment of the marginalized communities, especially
women, Scheduled Castes (SCs) and Scheduled Tribes (STs), through the
processes of a rights-based legislation,
• Strengthening decentralised, participatory planning through convergence of
various anti-poverty and livelihoods initiatives,
• Deepening democracy at the grass-roots by strengthening the Panchayati Raj
Institutions (PRIs)2
• Effecting greater transparency and accountability in governance.
MGNREGA has become a powerful instrument for inclusive growth in rural India
through its impact on social protection, livelihood security and democratic governance.
(Ibid)
2.2.2. Salient Features of the Act
The salient features of the act have been given by the UNDP (2015) as follows.
Registration: Adult members of a rural household willing to do unskilled manual work
may apply for registration either in writing, or orally to the local Gram Panchayat (hence
forth GP). The unit for registration is a household. Under the Act, each household is
2 Panchayati Raj Institutions (PRIs) are systems of local governance in rural India at three levels ofadministration: village, block and district.
11
entitled to a 100 days of employment every year. FRA beneficiaries3 are entitled to 150
days of employment (PIB, 2014). In states like Rajasthan, communities like the Sahriyas
have been given an entitlement of 200 days.
Job Card: After due verification of place of residence and age of the member/s (only
adult members are eligible for employment), the registered household is issued a Job
Card (JC). A JC is to be issued within 15 days of registration. Each JC has a unique
identification number. The demand for employment in the GP, or at block level has to be
made against the JC number. Job Cards are also supposed to be updated with days of
work and payment made to the beneficiary as and when the work is undertaken.
Application for Work: A written application seeking work is to be made to the GP or
Block Office, stating the time and duration for which work is sought. The GP will issue a
dated receipt of the written application for employment, against which the guarantee of
providing employment within 15 days operates.
Unemployment allowance: In case employment is not provided within 15 days, the state
(as per the Act) will pay an unemployment allowance to the beneficiary.
Provision of Work: While allocating work, the below mentioned considerations are
followed: Work is provided within 5 kilometres (kms) radius of the village. In case, work
is provide beyond 5 kms, extra wages of 10 per cent are payable to meet additional
transportation and living expenses. Priority is awarded to women, such that at least one-
3 Tribal people who have become rightful owners of forest land under the Forest Right Act (2006). Themove will benefit about eight lakh people in the states like Jharkhand, Odisha, Chhattisgarh and AndhraPradesh; the additional 50 days of employment beyond the stipulated 100 days under the MahatmaGandhi National Rural Employment Guarantee Act (MGNREGA) will be applicable to those individuals whogot pattas under Forest Rights Act, FRA (2006). Approximately, 14 lakh individual and community titleshave been distributed under FRA 2006. Of these around 8 lakh individual titles have been given in AndhraPradesh, Chhattisgarh, Jharkhand and Orissa. It is these individuals who will be able to claim the benefit of150 days (PIB, 19th January, 2014)
12
third of the beneficiaries under the Scheme are women. At least 50 per cent of works, in
terms of cost, are to be executed by the GPs.
Wages: Wages are to be paid as per the State-wise Government of India (GOI) notified
MGNREGA wages. Payment of wages has to be done on a weekly basis and not beyond
a fortnight in any case. Payment of wages is mandatorily done through the
b) Size of the house and the type of roof and floor
Area (house) Floor RoofUp to 500sq ft
500-1000sq ft
Tile Cement Concrete Others
9. Major source of family
MGNREGS only Agriculture MGNREGS +casual labour
Others (plsspecify)
10. Number of employment days under MGNREG scheme
Below 15 days 15-50 days 50 and above 100 days
11. Changes before and after the involvement in MGNREGS
Variables Before AfterHouse construction/modificationElectricityDrinking water/wellEducation of their Children’sGoldBank accountTelevisionCable connectionRefrigeratorElectric iron boxFanTelephone/MobileVehicle(two/ three wheeler)Saving behaviour
74
12. Level of satisfaction of the MGNREGS workers
Variables Highlysatisfied
Moderatelysatisfied
Satisfied Lesssatisfied
Leastsatisfied
About MGNREGSRemunerationWorking conditionsBehaviour of officials
Overall changeBetter living conditionsFinancial condition of thefamilyImproved educationalfacilityAcceptance in the societyPersonality development
13. Reasons for opting MGNREGS jobs (mark the major preferences)
Reasons 1 2Easy to getGovernment JobsLack of technical knowledgeLack of other employmentPoor Health conditionsNear to homeOwn house construction
75
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