Employment and Livelihood Security through MGNREGA: A Case of a Rightbased Social Protection Floor in India. ILO, Amman May 2014

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1 Employment and Livelihood Security through MGNREGA: A Case of a Rightbased Social Protection Floor in India ILO, Amman May 2014

2 Flow India: A Few Basic Facts Why Rural Public Works Programmes MGNREGA: Scope, Coverage & Evolution Objectives and Goals Processes & Provisions Costs and Benefits Issues & Challenges Way forward

3 India: A Few Facts 3/4 th of India s 1,128 million people live in rural areas (2013) > 66 % of labour force is in agriculture and allied activities Poverty 22 % (269.7 million) Rural poverty 25.7% ( million) Rural Literacy 67.8% [Male: 77.2% & Female: 57.9%] Rural unemployment rate CDS [Male: 64, Female: 80, Total:68] WPR between and stagnant (Male) or reduced (Female) 3

4 Why Rural Public Works Prog.? Livelihood insecurity for millions living in rural areas Rural-urban/ male-female divide in: literacy level employment and wages WPR either remained constant (male) or declined (female) between and Minimal participation of poor in devt. programmes Heavy dependence on agriculture for livelihood Low agriculture productivity Low & unequal wage rates between men & women Need for investment for job avenues in rural sectors Environmental degradation

5 Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MGNREGA) An Act to provide for the enhancement of livelihood security of the households in rural areas of the country by providing at least 100 days of legally guaranteed wage employment in every financial year to every household whose adults volunteer to do unskilled manual work 5

6 Scope & Coverage Covered all federal States and sub-state units in 3 phases (2006 to 2008) Total Households (families) : million 68 per cent ( million) are rural million (78.3%) rural households have been provided with job cards 44.4 million rural households have been provided with jobs

7 MGNREGA: Evolution & Transition HISTORY : Historic legislation passed : Implemented in 200 districts : Extended to 130 districts : Extended to remaining districts (Currently in 644 districts) : Name of the Act changed w.e.f The Transition... MGNREGA: Transition from Allocation based welfare program to Rights based, Demand driven, people centric, bottom-up, self selecting strategy

8 MGNREGA: Objectives Provide not less than 100 days work as per demand resulting in creation of productive assets of prescribed quality and durability; Strengthen the livelihood resource base of the poor Proactively ensure social inclusion & Strengthen Panchayati Raj Institutions (PRIs) 8

9 MGNREGA: Goals Enhance livelihood security of the rural poor supplement wage-employment opportunities provide a safety net for rural poor Rejuvenate natural resource base of the area sustainable rural livelihoods Create a productive rural asset base to: enhance productive ways of self-employment augment and sustain rural household income. Ensure empowerment of women Strengthen grassroots democratic processes Stimulate the local economy by providing a safety net to rural poor

10 MGNREGA: Right Based Framework The rights-based framework of MGNREGA ensures workers rights through: self-selection of jobs, time bound guarantee of getting jobs, getting jobs in and around the place of habitation flexibility in working hours in a given day wage payment in a time bound manner and through financial intermediaries compensation for delayed wage payments expeditious redressal of grievance through social audit (audit by the community itself) 10

11 Primary Stakeholders & Roles 1. Central Govt: Provide funds, ensure that the spirit of the Act is observed 2. Federal Govts: Preparation of Scheme & Implementation 3. Self-govt. institutions : Planning & Execution 4. Workers: Rights & entitlements 5. Community: Planning & Oversight

12 Permissible Works Works categorised into 4 broad areas Public works for NRM soil and water mgt, afforestation, land devt. etc. Individual assets for vulnerable groups Land productivity, livelihood promotion, fallow/waste land devt., IAY house, livestock promotion, fisheries promotion Common infrastructure for NRLM compliant SHGs Agri-productivity, common work-sheds Rural Infrastructure Sanitation, connectivity, play field, GP buildings, foodgrain storage, maintenance of assets

13 Category-wise Public Works Taken-up FY FY Any Other Works 10% Water conservation 46% Any Other Works 7% Rural Sanitation 15% Rural Sanitation 28% Water conservation 37% Land development 6% Rural Connectivity 12% Works on individual lands 11% Land development 5% Rural Connectivity 11% Works on individual lands 12%

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17 Financing MGNREGA Central Government: Amount required (100%) for payment of wages for unskilled manual work 75% of the material cost of the scheme including payment of wages to skilled and unskilled workers 6 % administrative cost over and above the wage and material cost State Government Cost of unemployment allowance payable under the scheme 25% of the material cost of the Scheme including payment of wages to skilled and semi-skilled workers

18 Source: Ministry of Rural Development ( Expenditure under MGNREGA (Rs. In Million) Year Wages Materials Total Expenditure Wage: Material Ratio (%) : , , : , , : , , , : , , , : , , , : , , , : , , :26 Total 16, , , :30

19 MGNREGA & Decent Works Variables Productivity Freedom Equity Security Work Hours Human dignity Working Conditions Enabling Provisions Linked to Agricultural productivity (soil and water) Legal sanctity, right to work Equal remuneration, gender neutrality and linked to notified Minimum wages Employment insurance, and broadening of choices 8 hours with an hour of break No compulsion, application for job, choice of works, choice of date from which jobs will be performed Worksite facilities defined in the Act. Provisions are made for hospitalization in case of injury, ex-gratia in case of death and permanent disability, crèche facility for children and grievance redressal systems 19

20 MGNREGA Impact Employment to 47.6 million Households (during ) Reduction in Distress Migration Enhanced Food Security Higher Land Productivity Women Empowerment Equal Wages for Men and Women Higher Bargaining Power for Workers Financial Inclusion: 9.37 Crore accounts in Banks and Post Offices Major Safety Net. Strengthening of Community Level Decentralized Democratic Institutions (Panchayats) 20

21 Issues & Challenges Huge Gap between Labour Projection & Demand at Field Level Accurate and Timely Capture of Demand for Work Inadequate HR at Each Level of Prog. Implementation Delay in Payment of Wages Capacity Building Issues Poor Quality & Productivity of Assets Created under MGNREGA: Social Inclusion of the Marginalized & Vulnerable Groups Transparency & Accountability Issues Grievance Redressal Mechanism Information, Education & Communication (IEC) Convergence & Quality Management

22 Way Ahead Strengthening Decentralised Planning and Preparation of Realistic Labour Projections Facilitating Accurate and Timely Capture of Work Demand Participation of Marginalized & Vulnerable Groups Organizing Workers to Articulate Voice & Demand Interventions for Vulnerable Groups Electronic Fund Management System (e-fms) Payment of Wages at Doorstep: Business Correspondents Encourage 100% Electronic Muster Roll (e-mr) Convergence and Collaboration with other Ministries/Depts. Transparency and Accountability

23 THANKS