R. No. 141 NREGA Gujarat.pdf - Agro-Economic Research Centre

210 Pages·2015·2.97 MB·English

.141
Research Study No 138
IMPACT OF NREGA ON WAGE RATES,
FOOD SECURITY AND RURAL URBAN MIGRATION
IN GUJARAT
V.D.SHAH
MANISH MAKWANA
AGRO-ECONOMIC RESEARCH CENTRE
SARDAR PATEL UNIVERSITY
VALLABH VIDYANAGAR – 388 120
GUJARAT
MAY – 2011
Foreword
Amidst great hype and hope, Indian parliament passed a revolutionary novel and
unique Act “Mahatma Gandhi National Rural Employment Guarantee
Act (MNREGA)” in 2005. It aims at arresting out-migration and enhancing food and
livelihood security of rural peoples on a sustained basis. It is a major initiative of
Government of India towards poverty reduction and income generation among rural
poor families. MNREGA is a unique welfare programme in the world, as no country
in the world has ever given a legal right of this kind to such a large population.
MNREGA is expected to address the worst kind of poverty in the country, as it
provides a legal guarantee for 100 days of employment in every financial year to the
poor rural households at statutory minimum wages. It also introduced novel features
of unemployment allowance. MNREGA is not a welfare programme dishing out
doles. It is a development initiative chipping at durable productive assets which give
momentum to growth process in rural area by improving the purchasing power.
MNREGA programme was implemented in all the rural districts of the country since
April, 2008. There exist a mix bag of opinions on level of impact and functioning of
MNREGA. At present, degree of impact, implementation, irregularities and corruption
in MNREGA programme has become a hot issue of debate for researchers,
academicians and politicians. The conflicting views on level of corruption, functioning
and degree of impact indicates that clear picture on effectiveness of the Act yet to
emerge. Keeping this controversy and debate in view, the Directorate of Economics
& Statistics, Ministry of Agriculture, Government of India asked Agro-Economic
Research Centre, Vallabh Vidyanagar, Gujarat to undertake study on probing and
quantify the impacts of MNREGA on different parameters and constraints affecting
the effectiveness of the programme in State. The study is intended to assess the
pros and cons of MNREGA programme. The study conducted in 18 States and co-
ordinated by Prof. Pramod Kumar, Institute of Social and Economic Change (ISEC),
Bangalore.
i
The study was conducted in 5 selected districts namely Dahod, Navsari,
Banaskantha, Surendranagar and Jamnagar of Gujarat State. From each
selected district, 2 villages and from each village, 20 participants and 5 non-
participants comprising SC, ST, OBC and others were selected. The field data were
collected by recall from 250 sample households for calendar year 2009.
The study shows that MNREGA holds the key for the development of rural areas,
poverty reduction and income generation among rural poor households. However
low to moderate impact on income level, wage rate of unskilled labour, food security
and livelihood of rural peoples was made by the programme. The people’s
awareness on their legal rights under MNREGA was found below expectation. The
MNREGA not able to generate the kind of employment demand as expected. On the
basis of survey report, policy suggestions have been made to improve the
development, effectiveness of MNREGA. The results of the study suggests that after
implementing corrective measures, MNREGA holds out prospects of not only
transforming livelihoods of the poorest people, but also heralding a revolution in rural
governance of India.
Shri V D Shah, Research Officer of our centre, put in lot of efforts and unquantifiable
work for preparing this enrich and excellent evaluation research report. The special
thank to Shri Manish Makwana, Research Associate of our centre and to entire
project team for providing necessary help and co-operation at all the stages of study
report.
We will feel extremely rewarded if the finding of the study can generate sufficient
interest among academicians, policy makers and those who have keen interest in
agricultural and rural development of country.
Date: 23-05-2011 Dr. R. H. Patel
Place: Vallabh Vidyanagar Director
ii
Preface
The “Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA)”
was enacted in 2005 to provide a minimum guaranteed wage employment of 100
days in every financial year to rural households with unemployed adult members
prepared for unskilled manual work. MNREGA ranks among the most powerful
initiatives ever undertaken for transformation of economy of rural households in
India. It holds out prospect of not only transforming livelihood of poorest people but
also heralding a revolution in rural governance of India. It aims at arresting out-
migration and enhancing food and livelihood security of rural peoples on a sustained
basis. It recognizes employment as a legal right. MNREGA is in implementation in all
the rural districts of the country since April, 2008. At present, degree of impact,
implementation, irregularities and corruption of MNREGA has become a hot issue of
debate for researchers, politicians etc. Keeping controversy and debate in views,
Directorate of Economics and Statistics, Ministry of Agriculture, Government of India
asked to undertake this study. In this study, attempt has been made to assess the
impact of MNREGA on wage rates, food security and rural urban migration in five
selected districts of Gujarat State. The study is based on both, secondary and
primary data. The primary data collected for the reference year 2009 from 200
participant and 50 non-participant households spread over 5 districts namely
Banaskantha, Navsari, Dahod, Surendranagar and Jamnagar of Gujarat State.
This report is a product of support, help and contribution from many individuals and
organisations. I commend all of them for their valuable contribution.
I would like to place on record my sincere thanks to Dr. R.H.Patel, Director of our
centre, Dr.Mahesh Pathak, Hon. Advisor of centre and Dr. R.A.Dutta, Deputy
Director of centre for providing valuable guidance and infrastructural support as and
when needed.
Special thanks are due to Shri H.N.Chibber, Additional Commissioner (MNREGA),
Commissionerate of Rural Development, Government of Gujarat and all MNREGA
officials at study districts / talukas for providing necessary help and support at all
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stages of the study. I would like to thank Sarpanch / Talati of selected villages,
sample households and all others who have directly or indirectly provided valuable
help and support in field work and preparing this valuable report. I am equally
grateful to Dr.M.N.Swain, Research Officer for helping in Logit analysis.
I register my special thank to Shri Manish Makwana, Research Associate at centre
and entire project team for their help, support and contribution in making this study
so enrich.
I am also thankful to Prof. Pramod Kumar, Institute for Social and Economic Change,
Bangalore, who as a co-ordinator of the study provided valuable guidance and all
kind of support as and when needed.
I am equally grateful to Mr. Utpal Ghosh, Economic & Statistical Advisor, Directorate
of Economics and Statistics; Mr.B.S.Bhandari, Advisor, Ministry of Agriculture, GoI;
Mr. V.P. Ahuja, Additional Economic Advisor, Ministry of Agriculture, GoI and
Mr.B. Naik, Economic Officer, Ministry of Agriculture, GoI for providing their help as
and when needed.
I am sure the findings and recommendations of the study will be useful for
administrators, policy makers and those who have interest in rural development of
the country.
Date: 23-05-2011 V.D.Shah
Place: Vallabh Vidyanagar Project Leader
iv
Project Team
Sr.
Activities Name Designation
No.
1
Project Leader Shri V. D.Shah Research Officer
2
Project Assistant Shri Manish Makwana Research Associate
3 Field work Team
Shri Manish Makwana Research Associate
Shri C. M. Patel Field Supervisor (CCS)
Shri J. S. Raj Agriculture Assistant (CCS)
Shri Hitesh Makwana Agriculture Assistant (CCS)
Shri J. N. Singh Computer (CCS)
4 Tabulation /
Shri Manish Makwana Research Associate
Data Processing
5 Data /
Shri J. B. Kahar Data Entry Operator
Draft Entry
Shri Himanshu Parmar Research Fellow
Shri Hemal Padhiyar Research Fellow
Ms. Kalpana kapadia Research Associate
6 Secondary
Shri Shreekant Sharma Research Associate
Data Tabulation
7 Miscellaneous Shri Vinod Parmar P.A. to Director
v
Contents
Chapter No. Title Page No.
Foreword i
Preface iii
Project Team v
List of Tables ix
CHAPTER 1: Introduction 1 - 20
1.1 Background
1.2 Workfare Programmes in India
1.3 Mahatma Gandhi National Rural Employment Guarantee Act
1.4 Review of Literature On MNREGA
1.5 Need of the Study
1.6 Objectives of the Study
1.7 Sampling Design
1.8 Reference Year
1.9 Data Collection
1.10 Limitation
1.11 Organization of Study Report
CHAPTER 2: Agricultural Profile, Functioning and Socio-Economic 21 - 74
Characteristics of MNREGA in Selected Districts and State
Section –I Demography Details of Selected Districts and State
2.1.1 Population
2.1.2 Agriculture Profile of Selected Districts
Section – II Functioning, Employment and Socio-Economic Characteristics
of MNREGA
2.2.1 Implementation and Administrative Setup in Gujarat
2.2.2 Job Cards Issued and Employment Generation by Sex and Castes
2.2.3 Works Undertaken under MNREGA during 2008-09 to 2010-11
2.2.4 Expenditure on Works Undertaken under MNREGA
2.2.5 Social Auditing and Inspection of MNREGA works
2.2.6 Unemployment Allowance
2.2.7 Wage Payment through Banks/Post Offices
vi
2.2.8 Work projection under MNREGA for 2010-11
Summary
CHAPTER 3: Characteristics, Income and Consumption Pattern of 75 - 95
Sample Households
3.1 Demographic Profiles of the Sample Households
3.2 Per Household Occupation (Activity) wise Mandays-2009
3.3 Source-wise Per Household Annual Net Income-2009
3.4 Item-wise Food Consumption (Per Capita / Month)-2009
3.5 Per Capita Monthly Consumption Expenditure of Sample Households –
2009
3.6 Inequality (variability) in Income and Consumption of Sample HHs. -2009
3.7 Factors Impacting Participation in MNREGA-Logit Regression Analysis
Summary
CHAPTER 4: Work Profile, Wage Differential and Migration under 96 - 113
MNREGA
4.1 Work Profile under MNREGA of Sample HHs.-2009
4.2 Activity-wise Employment under MNREGA-2009
4.3 The Out-Migration Incidents – 2009
4.4 Wage Differentials between MNREGA and Non-MNREGA works
Summary
CHAPTER 5: The Qualitative Aspects of the Functioning of MNREGA 114-144
5.1 Assets Holding (Rs. /HHs.)
5.2 Borrowings by Sample Households – 2009
5.3 Borrowing Sources in Sample Villages and Investment in Assets by
Sample HHs.-2009
5.4 Some Qualitative Aspects of Functioning of MNREGA
5.5 Quantitative Information with Reason on Functioning of MNREGA
5.6 Beneficiaries Perception on Potential Benefits of MNREGA
5.7 Perception of Beneficiaries on Food Security and Related Aspects with
Suggestions to Improve MNREGA Functioning
Summary
vii
CHAPTER 6: MNREGA impact on village economy 145-157
6.1 Infrastructure Availability within Study Village-2009
6.2 Changes in Occupational Pattern-2009
6.3 Effects of MNREGA on Wage Rates in Study Villages
6.4 Effects of MNREGA on Labour Charges for Agricultural Operations
6.5 Some Questions about Functioning of MNREGA
Summary
CHAPTER 7: Concluding Remarks And Policy Recommendations 158-177
A. Concluding Remarks
B. Policy Recommendations
Bibliography 178-179
Appendix- 1 to 2 180-197
Comments from the Co-ordinator 198
Action taken on the comments 199
viii
List of Tables
Table No. Title Page No.
1.1 Performance of NREP in the sixth and seventh five year plan 2
1.2 Performance of RLEGP in the Seventh Plan 3
1.3 Employment Generated By SGRY and NFFWP-2002-03 to 2005-06 4
1.4 Total Employment Generated and Expenditure under MNREGA in
11
India -2006-07 to 2009-10
1.5 Details of Selected Sample Districts and Sample Villages 17
2.1 Demography Details of selected District and State 23
2.2 Agricultural Statistics at a Glance for Selected Districts 25
2.3 (i) Fund Availability and Utilization for MNREGA in Gujarat State
29
–2008-2009
2.3(ii) Fund Availability and Utilization for MNREGA in Gujarat State
30
- 2009-2010
2.4 (i) Employment generated through MNREGA and its socio-economic
38
characteristics in Gujarat-2008-09
2.4 (ii) Employment generated through MNREGA and its socio-economic
39
characteristics in Gujarat-2009-10
2.4(iii) Employment generated through MNREGA and its socio-economic
40
characteristics in Gujarat-2010-11 (Till Aug.’2010)
2.5 (i) District wise number of works completed/progress under MNREGA -
45
2008-09
2.5(ii) District wise number of works completed/progress under MNREGA-
46
2009-10
2.5(iii) District wise number of works completed/progress under MNREGA -
47
2010-2011 (Till Aug -2010)
2.6 (i) District wise amount spent on works completed/progress under
49
MNREGA-2008-09
2.6 (ii) District wise amount spent on works completed/progress under
50
MNREGA-2009-10
2.6 (iii) District wise amount spent on works completed/progress under
51
MNREGA-2010-11 (Till Aug 2010)
2.7 (i) District-wise social auditing and inspection of MNREGA works in
54
Gujarat-2008-09
2.7 (ii) District-wise social auditing and inspection of MNREGA works in
55
Gujarat-2009-10
2.7 (iii) District-wise social auditing and inspection of MNREGA works in
56
Gujarat-2010-11(Till Aug 2010)
2.8 Unemployment Allowance Paid (2010-11)-Gujarat 59
2.9(i) District-wise wage payment through banks/post offices in Gujarat -
61
2008-09
2.9(ii) District-wise wage payment through banks/post offices in Gujarat -
62
2009-10
2.9(iii) District-wise wage payment through banks/post offices in Gujarat -
63
2010-11(Till Aug 2010)
2.10 Work projection under MNREGA for 2010-11-Gujarat State 65
2.10(i) Work projection under MNREGA for 2010-11-Banaskantha District 67
2.10(ii) Work projection under MNREGA for 2010-11-Dahod District 68
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