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This paper uses a three-round 4,000-household panel from Andhra Pradesh together with administrative data to explore short and medium-term poverty and welfare effects of the National Rural Employment Guarantee Scheme. Triple difference estimates suggest that participants significantly increase consumption (protein and energy intake) in the short run and accumulate more nonfinancial assets in the medium term. Direct benefits exceed program-related transfers and are most pronounced for scheduled castes and tribes and households supplying casual labor. Asset creation via program-induced land improvements is consistent with a medium-term increase in assets by nonparticipants and increases in wage income in excess of program cost.
This book offers an assessment of the performance, impact, and welfare implications of the world’s largest employment guarantee programme, the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). Launched by the Indian government, the programme covers entire rural area of the country. The book presents various micro-level analyses of the programme and its heterogeneous impacts at different scales, almost a decade after its implementation. While there are some doubts over the future of the scheme as well as its magnitude, nature and content, the central government appears committed to it, as a ‘convergence scheme’ of various other welfare and rural development programmes being implemented at both national and state level. The book discusses the outcomes of the programme and offers critical insights into the lessons learnt, not only in the context of India, but also for similar schemes in countries in South and South-East Asia as well as in Africa, and Latin America. Adopting inter-disciplinary perspectives in analysing these issues, this unique book uses a judicious mix of methods---integrating quantitative and qualitative tools---and will be an invaluable resource for analysts, NGOs, policymakers and academics alike.
The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was enacted in India with the multiple objectives of providing employment in a rights-based framework, addressing rural poverty, checking migration, and building rural infrastructure. As such, every year around 15–20 per cent of households in India overall and 30 per cent in rural India receive some form of employment share under the MGNREGA programme. This volume looks at various aspect of the scheme, its linkage with employment, agricultural wages, livelihood and food security, gender issues, and migration in rural India. It also discusses challenges in implementation, hurdles and the relative successes of the scheme. Based on primary survey data from 16 major states in the country, the findings of the study provide key insights into MGNREGA and assess the implications for other welfare-oriented programmes. Rich in empirical data, this volume will be useful to scholars and researchers of political economy, economics, agriculture, rural development and sociology, as well as policymakers and nongovernmental organisations.
The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was enacted in India with the multiple objectives of providing employment in a rights-based framework, addressing rural poverty, checking migration, and building rural infrastructure. As such, every year around 15–20 per cent of households in India overall and 30 per cent in rural India receive some form of employment share under the MGNREGA programme. This volume looks at various aspect of the scheme, its linkage with employment, agricultural wages, livelihood and food security, gender issues, and migration in rural India. It also discusses challenges in implementation, hurdles and the relative successes of the scheme. Based on primary survey data from 16 major states in the country, the findings of the study provide key insights into MGNREGA and assess the implications for other welfare-oriented programmes. Rich in empirical data, this volume will be useful to scholars and researchers of political economy, economics, agriculture, rural development and sociology, as well as policymakers and nongovernmental organisations.
India's ambitious National Rural Employment Guarantee Act creates a justiciable 'right to work' by promising up to 100 days of employment per year to all rural households whose adult members want unskilled manual work on public works projects at the stipulated minimum wage. Are the conditions stipulated by the Act met in practice, under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)? What impact on poverty do the earnings from the scheme have? Does the scheme meet its potential? How can it do better? Right to Work? Assessing India's Employment Guarantee Scheme in Bihar studies the MGNREGS's impact across India, then focuses on Bihar, the country's third largest and one of its poorest states. It shows that although the scheme has the potential to substantially reduce poverty through extra earnings for poor families, that potential is not realized in practice. Workers are not getting all the work they want, nor are they getting the full wages due. The intended recipients' awareness of how to obtain work is low. In a controlled experiment, a specially designed fictional movie was used to show how knowledge of rights and processes can be enhanced. Although the movie effectively raised awareness and improved public perceptions of the scheme, it had little effect on actions such as seeking employment when needed. Supplyside constraints in responding to demand for work must also be addressed. A number of specific constraints to work provision are identified, including poor implementation capacity, weak financial management, and inadequate monitoring systems. Addressing these constraints would allow this major antipoverty program to come much closer to reaching its potential.
Employment is a critical part of the macro-economy and a key driver of economic development. India’s employment policy over the past three decades provides an important case study for understanding how government attitudes to the labour market contribute to an emerging economy’s growth and development. This study contains important insights on the policy challenges faced by one of the world’s most populous, labour abundant economies in securing employment in a context of structural change. The book considers India’s approach to employment policy from a national and global perspective and whether policy settings promote employment intensive growth. Chapters in the first half of the volume evaluate India’s approach to employment policy within the national and international context. This includes the ILO Decent Work program, the national agenda for inclusive growth, and national regulatory frameworks for labour and education. Chapters in the second half of the volume focus on how employment policy works in practice and its impact on manufacturing workers, the self-employed, women, and rural workers. These chapters draw attention to the contradictions within the current policy regime and the need for new approaches. Employment Policy in Emerging Economies will interest scholars, policy makers and students of the Indian economy and South Asia more generally. It will support undergraduate and postgraduate academic teaching in courses on economic development, global political economy, the Indian economy and global labour.
While government spending on pro-poor community asset creation and income-transfers could have compounding positive effects on poverty reduction, it is important to first study trends in the allocation of funds, particularly as they relate to the susceptibility of the program to political clientelism. This paper uses expenditure data at the local level in Andhra Pradesh from India’s National Rural Employment Guarantee Scheme, a rights-based program distributing both public and private goods, to investigate the relationship between voting outcomes and program intensity in the seven years straddling a major election. By focusing on one state where accountability and transparency mechanisms have been employed and implementation efforts have been applauded, the authors do not find evidence of blatant vote buying before the 2009 election but do find that patronage played a small part in fund distribution after the 2009 election. Indeed most variation in expenditures is explained by the observed needs of potential beneficiaries, as the scheme intended.
Some aspects of violent behavior are linked to economic incentives. In India, domestic violence is used as a bargaining instrument, to extract larger dowries from a wife's family after the marriage has taken place.
Women’s self-help groups (SHGs) have increasingly been used as a vehicle for social, political, and economic empowerment as well as a platform for service delivery. Although a growing body of literature shows evidence of positive impacts of SHGs on various measures of empowerment, our understanding of ways in which SHGs improve awareness and use of public services is limited. To fill this knowledge gap, this paper first examines how SHG membership is associated with political participation, awareness, and use of government entitlement schemes. It further examines the effect of SHG membership on various measures of social networks and mobility. Using data collected in 2015 across five Indian states and matching methods to correct for endogeneity of SHG membership, we find that SHG members are more politically engaged. We also find that SHG members are not only more likely to know of certain public entitlements than non-members, they are significantly more likely to avail of a greater number of public entitlement schemes. Additionally, SHG members have wider social networks and greater mobility as compared to non-members. Our results suggest that SHGs have the potential to increase their members’ ability to hold public entities accountable and demand what is rightfully theirs. An important insight, however, is that the SHGs themselves cannot be expected to increase knowledge of public entitlement schemes in absence of a deliberate effort to do so by an external agency.