0% found this document useful (0 votes)
22 views10 pages

MGNREGA: Addressing Rural Poverty in India

The document discusses the widening disparity between the wealthy and the poor in India, exacerbated by mechanization and economic policies, and highlights the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) as a vital program aimed at providing employment and reducing rural poverty. Despite its implementation across the country, MGNREGA faces challenges that hinder its effectiveness, particularly in the Dhanbad district of Jharkhand, where the study aims to evaluate its impact on marginalized groups, especially women. The research emphasizes the need for improved execution of MGNREGA to enhance livelihood security and social protection for rural households.

Uploaded by

tripu223
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
22 views10 pages

MGNREGA: Addressing Rural Poverty in India

The document discusses the widening disparity between the wealthy and the poor in India, exacerbated by mechanization and economic policies, and highlights the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) as a vital program aimed at providing employment and reducing rural poverty. Despite its implementation across the country, MGNREGA faces challenges that hinder its effectiveness, particularly in the Dhanbad district of Jharkhand, where the study aims to evaluate its impact on marginalized groups, especially women. The research emphasizes the need for improved execution of MGNREGA to enhance livelihood security and social protection for rural households.

Uploaded by

tripu223
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

ABSTRACT

The disparity between the "haves and have nots" has widened due to mechanization of
agriculture, exponential population increase, uneven sectoral development of the Indian
economy, and support for liberalization, privatization, and globalization policies. As a result,
the wealthiest members of society continue to get richer, while the poor and disadvantaged
groups in society continue to get poorer. While those who are wealthier have easy access to
the newest information and technology, those who are poorer have severe financial and
technological shortages as well as a conspicuous lack of technical expertise.
The poor used to have easy access to agricultural labour, but since these technologies have
been adopted, there is very little job accessible to them. This is because impoverished
individuals moved to the cities in the research area in quest of work in the urban centres. In
every Indian city, jobless and impoverished workers congregate at specific locations, known
as the urban labour market. As is well known, rural areas of India, where there is a greater
reliance on basic economic activities like agriculture, have the worst and most severe poverty.
However, India's First Five Year Plan (1951–52) states that the ratio of poverty in urban
regions is low, whereas the rural poverty rate was 47.4%. The recorded percentage is 35.5%.
Then, by promoting the expansion of job-intensive industries and implementing special wage
employment programs, the government started to make development more employment-
oriented (Rao and Dheeraja, 2010; Babu et al., 2010).
Broad-based development programs for rural areas are crucial to economic advancement in
nations like India, where the majority of the workforce is employed in agriculture and the
economy is predominantly rural. The creation of additional employment chances, particularly
during lean times, was the main focus of previous programs to create employment
opportunities for daily wage workers over public works (Rajesh, 2018; Ravallion and Datt,
1995; Ro et al., 2011). Prior experiences demonstrate that the NREP, RLEGP, JRY, and
SGRY programs, which are backed by the daily wage engagement schemes, are an effective
technique for reducing poverty in India. In essence, the MGNREGA program offers job
chances to underemployed and unemployed rural residents.
One of the innovative and revolutionary laws passed by the Indian Parliament in 2005 by the
UPA government to ensure employment and livelihood security for every rural household is
the Mahatma Gandhi National Rural Employment Grantee Act (MGNREGA). The Mahatma
Gandhi Rural Employment Guarantee Act (MGNREGA) was its new name in 2007. This
right-based policy initiative's primary objective is to guarantee employment and support
village infrastructure development for the welfare of rural households; it has also been
viewed as an integrated strategy for the eradication of rural poverty and sustainable
development.
Even though MGNREGA is being implemented in all 623 districts nationwide, the program
has not produced the expected or even stated results. The majority of evaluation studies have
demonstrated that the scheme's inadequate execution is preventing it from functioning
effectively at the ground level.
Its implementation is fraught with problems and difficulties. It has been noted that only a
small number of states, like Andhra Pradesh, Rajasthan, and others, are implementing
programs in a sequential manner. The Employment Guarantee Scheme (EGS), which was
first implemented in Maharashtra State, is a cornerstone of the MGNREGA.
EGS was launched by the Maharashtra state government in 1974 and ran throughout the full
year (Mukherjee, 2008; Narjanian, 2008; Parsuramam et al. 2011; Drez, 2014). Currently, the
national government's MGNREGA guidelines have incorporated the former employment
guarantee program (MGNREGA; 2019).
The MGNREGA is intended to greatly improve livelihood stability in rural India as a backup
job source. MGNREGA is a public works program that addresses the issue of a rights-based
approach to development. It gives rural families income protection through guaranteed wage
employment, reduces or checks the migration crisis from rural to urban areas, and creates
sustainable community assets to spur overall development in rural areas. MGNREGA is the
embodiment of the right to employment on demand. Since the Poor Employment Act of 1817
and the Poor Law Amendment Act of 1834 in Great Britain (Blog, 1963, 1964) and the New
Deal programs of the 1930s in the United States (Kesselman, 1978, Bernstein, 1970), the
Employment Guarantee Scheme (EGS) policy has been in place. It was regarded as a crucial
component of relief measures during economic downturns and natural disasters (Roy, 2018;
Shah and Mohanty, 2010).
Such programs have recently been formed in developing nations with a variety of goals,
including reducing poverty, enhancing workers' bargaining power, and constructing and
maintaining public infrastructure. Notable instances of such programs, which are primarily
aimed at reducing poverty, include those implemented in Bangladesh (1983), Botswana
(1960), Kenya (1992), India (1978), Pakistan (1992), and Chile (1987). In order to satisfy the
self-selection property (Berg et al. 2018), the EGS is a policy of direct transfer to the poor
through the provision of public works (Drèze 2018; Babu et al. 2011). The extent of these
direct transfer advantages was empirically explored (Ravallion, 1991; Ravallion et al., 1993).
Thus, the current study aims to determine the sociodemographic and economic characteristics
of MGNREFGA employees, the structure of the MGNREGA scheme, the fixed implementing
area and process of the MGNREGA program, the factors that contribute to poor MGNREGA
scheme implementation, the main obstacles and problems in the MGNREGA scheme's
implementation, the role of civil society in good governance with reference to the
MGNREGA scheme, and the effects of social audit and redressal grievances in the
MGNREGA scheme's implementation in the Dhanbad district of Jharkhand.
The MNREGA program is more than just a welfare program. The administration is making
progress in changing the perception of the Indian economy. On the other hand, it is the only
program that lowers poverty in rural areas. This initiative provides rural residents with a
minimum daily income for 100 days in a year. Generally speaking, this program has three
distinct objectives, or 3P program goals (promotional, prevention, and protection).
Nonetheless, the plan prevents the hazards associated with agricultural speculation and the
forced relocation of these marginalized members of rural community.
But since the government's executive agency created and carried out the majority of these
plans, they were flexible enough to be altered or discontinued at the executive's discretion.
Despite all of these efforts to improve the lives of the impoverished by generating jobs in
rural regions and producing long-lasting communal assets, previous initiatives have fallen
short, either because they lacked the necessary legal framework or were insufficient. This
program is the first to be demand-based; previously, programs were allocation-based.
Despite the state's extensive experience with EGS implementation, the current combined
MGNREGA program is not operating effectively at the local level. Numerous problems are
arising during its implementation process, which can be attributed to various variables like
job demand, planning and site selection, a complex administrative structure with less skilled
employees, payment delays, and a shortage of human resources.
The MGNREGA program is one of the programs the government has created to empower
women. The Act's standards and norms are designed to guarantee rural households and
women fair and easy access to jobs, respectable working conditions, equal compensation, and
representation on bodies that make decisions. In light of this, the current research study aims
to compare the impact of MGNREGA in industrial and agricultural regions of Dhanbad
district. It also examines the state of women's employment through MGNREGA in Dhanbad
district of Jharkhand.
Jharkhand has the ability to significantly advance through MGNREGA by facilitating
marginalized people's work, income, and consumption. Despite the program's flaws, the
influence of the MGNREGA program on marginalized people's lives and inclusion is the
main emphasis of this research study. People who are isolated from the mainstream economy
are considered marginalized. The study's theory and conceptualization were based on
inclusive growth and ideas like social protection and livelihood security.
The research study uses time series analysis to look at MGNREGA performance indicators in
Dhanbad district of Jharkhand using primary data gathered from MGNREGA employees in
the districts of Dhanbad. The degree of livelihood security and social protection that
marginalized groups had access to was used to gauge the program's socioeconomic impact on
them. The UNDP's sustainable livelihood framework was used to create the livelihood
vulnerability index for the same.
Over the course of these five years, different Blocks have performed poorly in terms of
giving women jobs under MGNREGA. Through a primary survey of a few Panchayats in the
different blocks of Dhanbad, an assessment of the effects of MGNREGA on women has been
conducted. About 8 villages from the Dhanbad district have been chosen for further
examination and investigation of MGNREGA. 100 households participated in in-person
interviews to gather primary data using a standardized questionnaire.
Additionally, the study analyses the effects on women's life and determines the factors that
influence women's employment through MGNREGA at the village/panchayat level.
Women's participation in MGNREGA is influenced by socioeconomic factors. In addition to
having an impact on women's economies, the research study also found notable shifts in
social factors, such as the transition from joint to nuclear households. Women's increased
involvement in MANREGA projects was also found to be significantly influenced by the low
educational attainment seen in eight village/panchayats. It was demonstrated that there were
significant differences in the village/panchayats' acceptance of labor under MGNREGA.
Women workers' awareness of the various MGNREGA provisions for workers is a crucial
determinant of their willingness to engage and obtain just recompense for their labor.
Jharkhand is one of the best states in India in terms of MGNREGA's inclusiveness, as
evidenced by the greater participation of women, SC, and ST in the program. The results
show that by guaranteeing livelihood opportunities, social security, and a platform for
inclusive growth, MGNREGA has significantly altered the economic, social, and political
lives of marginalized people (SC, ST, and women).
Given that the employment and salary options provided by the program might satisfy their
lower level objectives, this study suggests that MGNREGA workers in these locations enjoy a
respectable standard of life. Despite having a weak health component that contributed to its
moderate level of vulnerability, Dhanbad has a higher social protection score.
The improved social protection component scores for all eight village areas demonstrate
MGNREGA's revolutionary potential. It means that although there are geographical
variations in the benefits that are available, the overall result was deemed to be sound and
hopeful. To understand the whole impact at the local level, a panchayath-by-panchayath
evaluation was conducted. The majority of panchayats were found to have superior positions
in both the transformation component of social protection and the overall social protection
index.
It was discovered that the MGNREGA results were more closely aligned with the short-term
economic gain, social participation, and transparency effect. Opportunities for livelihood,
social cohesiveness, empowerment, and inclusivity were all benefits that MGNREGA
workers received. It was discovered that the workers' investments in sanitation and education
yielded little long-term benefit. MGNREGA is a powerful tool for achieving social protection
and livelihood stability, two key tenets of inclusive growth.
Eight Gram Panchayats in the Dhanbad district of Jharkhand were the subject of the study.
The goals of this study are to use the Green Index concept to evaluate the environmental
impact of MGNREGA activities and the Socio-Economic Development Index to look at
societal development. This study demonstrates the importance of MGNREGA for the rural
environment and the socioeconomic advancement of a rural area.
Households in rural areas of the notified districts can gain livelihood security through the
MGNREGA's provision of at least 100 days of guaranteed wage work every fiscal year,
provided that all adult members of the family agree to undertake unskilled manual labour.
establishing permanent resources and strengthening the income foundation of the
impoverished in rural areas. Equal compensation is guaranteed for all employees, regardless
of gender. Discrimination based on gender will not occur. Among other things, MGNREGA
forbids the employment of contractors and machinery that displaces human workers. This
includes just those initiatives that have received Gramme Panchayat approval at the village
level. At the Mandal level, the Mandal Parishad and at the District level, the Zila Parishad
will be handled.
Any adult member whose name is on the employment card can apply for physical work that
does not need any specific abilities. Members of the applicant's immediate family who have
registered with the program are eligible to work up to 100 days per year from the comfort of
their own home.
If a claimant is not offered a job within fifteen days of submitting their application for
employment, or, in the case of an advance application, from the date the job was sought,
whichever is later, they will be eligible for a daily unemployment allowance, subject to the
household's claim. For the first thirty days of the fiscal year, the allowance amount must be at
least one-fourth of the total wage rate. For the following thirty days, it must be at least half of
the wage rate.
To the extent possible, the claimant shall be provided with work opportunities in the village.
If a job offer is made more than five kilometres away from a candidate's existing village of
residence, their current compensation rate should be adjusted by 10% to accommodate higher
living and commuting expenditures.
At least one-third of the wage seekers who have registered under the MGNREGs plan and
sought for unskilled employment are women, because women will be given preference.
Employees have the right to compensation as outlined in the "payment of Wages Act 1976" in
the event that their salaries are not paid within two weeks.
The Equal Remuneration Act of 1976 forbids discrimination on the basis of gender alone and
requires compliance with its requirements.
Workers have a right to basic workplace facilities including safe drinking water, shade during
breaks and during children's playtime, and a first aid kit with necessary materials to handle
minor injuries and other work-related health concerns.
One woman MGNREGA worker will be hired to care for children under the age of six if five
or more women are working at the same place, and she will be paid at the rate of the
MGNREGs.
Employees of mgnrega who are covered by the system and sustain injuries while on the job
are eligible for free medical treatment.
When wounded employees need to be hospitalised on the job, their employers have a
responsibility to provide them with the necessary accommodations, medical treatment, and
medicines. The injured worker will get a daily stipend equal to half of the minimum pay that
would have been provided if the person had been working.
In the event that an employee dies or becomes permanently disabled as a result of an accident
that happens on the job, the deceased's legal heirs will receive an ex-gratia payment from the
Union government, which could be Rs. 25,000 or another amount that is announced.
Injuries sustained by children while in the care of program staff, even if accidental. The
government will decide how much of an ex-gratia payment is due in the case of the parent's
death or handicap, and the child will get free medical treatment.

Statement of the Problem


This research investigates the defined function of social security in decreasing poverty in
Dhanbad, Jharkhand, with "The Mahatma Gandhi National Rural Employment Guarantee
Act" as its major starting point. This study set out to answer the question, "How much has the
MGNREGA's implementation improved livelihood security in a rural region of Dhanbad?"
by collecting data from that area. But we must also resolve the many implementation-related
problems to halt or capture the whole picture if we are to really understand the MGNREGA's
many benefits. If we want to know how the MGNREGA is supposed to make a positive
difference, we need to look at the history of the program and the circumstances that led to its
necessity in the study area. This was considered when formulating the many aims, research
questions, and hypotheses of the study. The previous employment-generation initiative in
India has been credited with varying degrees of success and failure. In this context, the
Government of India introduced the MGNREGA initiative to have a direct impact on rural
households by increasing their chances of daily wage employment on the one hand and
creating livelihood assets in both the farm and non-farm sectors on the other. However, the
MGNREGS's first six years of implementation suggest a variety of abilities, including the
program's success and failure at the local, state, and national levels. While Jharkhand, Uttar
Pradesh, and Bihar have not made enough progress, states like Rajasthan, Andhra Pradesh,
and Tamil Nadu have made very satisfying improvement. In Karnataka, the performance is
also inconsistent. Since there is a close relationship between the MGNREGA scheme's impact
and its implementation, variations in execution have implications for outcomes. uncertainty, it
is only partially implemented, and its main goals could be readily overshadowed. For
example, the determination of livelihood security would not be attended if a household does
not supply at least 100 days of employment at the stipulated salaries. The MGNREGA has
undoubtedly discussed many of the shortcomings of the earlier plans, including the rights-
based framework, time-bound access to the fulfilment guarantee, incentive and disincentive
structures, accountability, demand-based resource availability, and similar topics.
Nonetheless, there are some critical issues that remain stationary and require our attention.
First, while public awareness and active participation are key to the scheme's success, it also
signals that executing agent, such as sarpanches, village members, block development
officers, and other government administrators, should be aware of the Act's essential
requirements and actions. Therefore, it is crucial to gauge how aware various shareholders are
of the program and the ways in which knowledge spreads. Thus, the current study aims to
examine the governance concerns, difficulties, and implementation of MGNREGA in
Jharkhand's Dhanbad district.

Research Gap
Increases in employment opportunities linked to various daily wage employment schemes,
restrictions on forced migration, increases in minimum wages, and the completion of
numerous projects related to soil and water conservation, plantations, afforestation, road
construction, and other projects have all been signs of the MGNREGA's implementation over
the past few years, which has increased productivity in a number of states. The district of
Dhanbad in Jharkhand was chosen for this study because it offers a variety of social, cultural,
demographic, political, and economic contexts. With a highly stratified and sinful socio-
cultural and demographic structure, Dhanbad district represented a somewhat socio-
economically impoverished area, while its rural sections represented pockets of destitution.
Numerous state-level studies on MGNREGA's effects, governance problems, and obstacles
have been conducted since it was put into effect. However, there are very few systematic or
universal studies that link district performance using household-level data from before and
after MGNREGA, especially states with many similarities in the sociocultural, economic, and
political systems. According to earlier research, a study on the governance problems,
difficulties, and execution of the MGNREGA program in the Dhanbad district of Jharkhand is
necessary. Nonetheless, the study's main objectives are to evaluate specific schemes,
comprehend their shortcomings and strengths, and identify the factors that led to both good
performance and favourable results as well as those that caused performance disparities
within and between districts. MGNREGA's prospects and obstacles can be comprehended by
taking the appropriate steps that can be prepared to help the program understand its goals.
Both policymakers and implementers can benefit greatly from all of these guidelines for the
scheme's active execution. Numerous academics, organizations, and others have led a number
of studies that focus on the governance difficulties and obstacles related to the creation of
jobs and the procedures used in the MGNREGA implementation. As a result, the current
study looks into how income, consumption patterns, health and education spending, and the
value of assets developed under the MGNREGA program affect the livelihoods of rural poor
households.
Aims and Objectives of the Proposed Study
The major objectives of the present research are enumerated below:
1. To find out the socio-demographic and economic characteristics of MGNREFGA workers
in Dhanbad district of Jharkhand.
2. To identify the MGNREGA scheme’s structure in the district.
3. To analyse the process and implementation area of MGNREGA scheme in the study area.
4. To examine the factors regarding poor implementation of MGNREGA in the district.
5. To find out issues and challenges in the implementation of MGNREGA scheme in the
district.
6. To identify the put fourth role of civil society in good governance under the reference of
MGNREGA scheme in the study area.
7. To analyse the impact of social audit and redressal grievances in implementation of
MGNREGA scheme in the Dhanbad district.
8. To investigate the impact of the scheme of MGNREGA on economic status through
economic variables like Income Generation, Employment Generation , Financial Inclusion,
Consumption , Savings, Debt and Standard of Living.
9. To make a comparison of impact of MGNREGA on economic status in the Industrial and
Agricultural regions of Dhanbad District.
[Link] identify the causes of differences in “economic impact of MGNREGA” in Industrial
and Agricultural areas of Dhanbad District.
11. To identify the challenges faced by Women in MGNREGA work place.
[Link] investigate problems faced in the implementation of MGNREGA.
[Link] study the differences in economic impact of MGNREGA on MGNREGA Beneficiaries
and Non-MGNREGA beneficiaries
[Link] study the statistical significance of differences occurred on MGNREGA and Non-
MGNREGA beneficiaries
15. To study demographic differences between Beneficiaries and Non- Beneficiaries of
MGNREGA
Major Research Questions
Ordinarily, a hypothesis simply means assumptions or some supposition to be proved or
disproved. For present research, the following questions will be tested.
1. What is the structure of MGNREGA scheme in the Dhanbad district of Jharkhand?
2. How MGNREGA is different from other poverty Alleviation Schemes?
3. What are the problems faced by the women workers of MGNREGA?
4. What are the problems that occur during implementation of MGNREGA?
5. What are the Demographic differences between Beneficiaries and Non- Beneficiaries
of MGNREGA?
6. What is the status of financial inclusion due to MGNREGA?

Hypothesis

1. There is no significant difference in income generation due to MGNREGA.


2. There is no significant difference in employment generation due to
MGNREGA.
3. There is no significant difference in Savings due to MGNREGA.
4. There is no difference in standard of living due to MGNREGA.
5. There is no significant difference in income generation due to MGNREGA in
Industrial and Agricultural Regions of Dhanbad District.
6. There is no significant difference in employment generation due to
MGNREGA in Industrial and Agricultural Regions of Dhanbad District.
7. There is no significant difference in Savings due to MGNREGA in Industrial
and Agricultural Regions of Dhanbad District.
8. There is no significant difference in standard of living due to MGNREGA in
Industrial and Agricultural Regions of Dhanbad District.

Data Base and Research Methodology


As previously stated, the MGNREGA plan, governance concerns, and difficulties in the
Dhanbad District of Jharkhand are the focus of the current study. There will be an effort to
view the issue holistically with the reality on the ground. Both primary and secondary sources
of data served as the foundation for the current study. Using thorough questionnaires, a
general survey or household survey was used to gather the primary data. Blocks in the
Dhanbad district was chosen for an investigation of the current study project. The rural parts
of the blocks will be included in this investigation in order to evaluate the block-wise spatial
variances. The primary focus of the study is the micro-level analysis of Dhanbad district.
Significance of the Study
The goal of the current study is to examine the scope of the MGNREGA program, the main
problems and obstacles in its regulation and execution, the causes of its subpar execution, and
the sociodemographic and economic traits of MGNREGA employees in the Dhanbad district
of Jharkhand. This empirical and analytical examination is important because it helps
planners understand the true needs and pulse of the issue so that practical models may be
developed for the rest of the globe.
Limitations of the Study
The Indian census only covers the most important facets of the population; the specifics it
collects only pertain to the demographic and socioeconomic characteristics of the total
population. As a result, it lacks a column in the schedule for the characteristics, status, causes,
and issues of a number of indifferent and backward groups of society, including MGNREGA
workers, pavement dwellers, beggars, daily wage labourers, etc., and their related issues that
are crucial to assess from various dimensions. As a result, the temporal analysis of
MGNREGA workers could not be explored due to a lack of records and statistics, which
could be useful in determining whether the number of workers is growing or declining over
time. The information obtained using this method does not appear to be very reliable because
the majority of respondents were illiterate and unaware of the importance of the survey,
which made them reluctant to provide accurate information about their housing, household
infrastructure facilities, and amenities. Additionally, the unit of data collection was individual
households at their place of employment rather than their actual households located at their
place of residence. Furthermore, out of fear of income taxes, the majority of them conceal
facts about their true monthly income, household income, and money from other sources.
Since they attempted to hide them, information about MGNREGA employees who had
moved to the city from distant areas and commuters who had been commuting could not be
gathered about their migration and commute times, respectively.
Organization of the work
With the exception of the introduction, conclusion, and recommendations, the current study is
divided into eight chapters. The problem statement, research gap, and study arrangement
comprise the opening section.
Chapter 1 covers the conceptual framework, which includes the MGNREGA concept,
definition, goals, coverage, key aspects of the act, paradigm shift, MGNREGA performances,
and MGNREGA concerns and challenges.
Chapter 2: Describe the literature review on MGNREGA implementation, governance
concerns, and difficulties.
The study design in this chapter is covered in Chapter 3. It comprises the study's goals,
research questions, database and methodology, sample size and design, statistical methods,
fieldwork and survey experience, study relevance, and study limits.
The key characteristics of the research area, including general, physical, social, and
demographic attributes, are described in Chapter 4. The historical context, geographical
location, and administrative divisions of the Dhanbad district in Jharkhand comprise the
general setting. Geological structure, hydrological profile, climate, soils, native plants, and
resources are all examples of the physical context. Population growth, density, sex ratio,
literacy rate, religion, and MGNREGA performance in the studied region are examples of
demographic parameters.
The sociodemographic and economic traits of MGNREGA worker households in the research
region are covered in Chapter 4.
The MGNREGA program, governance concerns, and study area obstacles are evaluated in
Chapter 5.
Finally, a synopsis of the entire research project is presented, followed by recommendations
and ideas to enhance the current MGNREGA implementation, governance concerns, and
difficulties in the research region.

You might also like