UPSC MainsECONOMICS-PAPER-II201920 Marks
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Q26.

What are the core objectives of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)? In what ways has a paradigm shift taken place with the implementation of MGNREGA?

How to Approach

This question requires a two-pronged approach. First, clearly articulate the core objectives of MGNREGS, focusing on its legal basis and intended outcomes. Second, analyze the paradigm shift brought about by its implementation, moving beyond a simple welfare scheme to its impact on rural economies, social dynamics, and governance. Structure the answer by first defining MGNREGS, then detailing its objectives, followed by a discussion of the paradigm shifts, supported by data and examples. Conclude by assessing the scheme’s overall impact and future potential.

Model Answer

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Introduction

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), enacted in 2005, represents a landmark piece of social legislation in India. Born out of the National Rural Employment Programme (NREP) and Employment Assurance Scheme (EAS), it guarantees 100 days of wage employment to rural households whose members are willing to do unskilled manual work. The Act aims to provide a social safety net, enhance livelihood security, and reduce rural-urban migration. Its implementation has not only altered the landscape of rural employment but also triggered a significant paradigm shift in the approach to rural development and governance in India.

Core Objectives of MGNREGA

The MGNREGA is underpinned by several core objectives, legally enshrined in the Act:

  • Guarantee of Livelihood Security: The primary objective is to provide a legal guarantee of 100 days of employment in a financial year to every rural household willing to do unskilled manual work. This ensures a minimum level of wage employment and income security.
  • Rural Asset Creation: MGNREGA emphasizes the creation of durable assets in rural areas, such as water harvesting structures, irrigation facilities, roads, and rural connectivity projects. This aims to boost rural infrastructure and enhance agricultural productivity.
  • Empowerment of Marginalized Sections: The scheme prioritizes employment for the most vulnerable sections of society, including women, Scheduled Castes (SCs), Scheduled Tribes (STs), and other backward classes. It aims to reduce social inequalities and promote inclusive growth.
  • Decentralized Planning and Implementation: MGNREGA promotes decentralized planning and implementation through Gram Panchayats (GPs), fostering local participation and accountability.
  • Strengthening Rural Self-Help Groups (SHGs): The scheme encourages the involvement of SHGs in planning, implementation, and monitoring of works, thereby strengthening local institutions.

Paradigm Shift with the Implementation of MGNREGA

The implementation of MGNREGA has brought about a significant paradigm shift in several areas:

1. From Welfare to Rights-Based Approach

Prior to MGNREGA, rural employment programs were largely viewed as welfare measures, dependent on administrative discretion. MGNREGA, however, established a legal right to employment, shifting the focus from charity to entitlement. This empowered rural citizens to demand work and hold the government accountable.

2. Increased Rural Wage Rates and Bargaining Power

MGNREGA has led to a substantial increase in rural wage rates. The guaranteed employment option has enhanced the bargaining power of rural laborers, forcing employers (including farmers) to offer competitive wages. According to a study by the National Council of Applied Economic Research (NCAER) in 2015, MGNREGA led to a 7-10% increase in agricultural wages in several states.

3. Enhanced Social Inclusion and Women Empowerment

MGNREGA has significantly increased the participation of women in the workforce. Statistically, women constitute over 50% of the total MGNREGA workers. This has not only provided them with economic independence but also enhanced their social status and decision-making power within households. The scheme also promotes the inclusion of SCs and STs, who often face discrimination in the labor market.

4. Strengthening of Panchayati Raj Institutions (PRIs)

MGNREGA has strengthened PRIs by devolving planning and implementation responsibilities to the Gram Panchayats. This has increased local participation in development processes and improved transparency and accountability. However, capacity building of PRIs remains a challenge.

5. Impact on Migration Patterns

While not entirely eliminating rural-urban migration, MGNREGA has helped to reduce distress migration by providing a source of income in rural areas. This has lessened the pressure on urban infrastructure and improved the quality of life for rural families.

6. Focus on Water Conservation and Sustainable Development

A significant portion of MGNREGA funds has been allocated to water conservation projects, such as the construction of farm ponds, check dams, and irrigation canals. This has contributed to improved water availability, enhanced agricultural productivity, and promoted sustainable rural development.

Pre-MGNREGA Post-MGNREGA
Welfare-based approach Rights-based approach
Low rural wage rates Increased rural wage rates
Limited women participation Increased women participation (over 50%)
Weak PRIs Strengthened PRIs with devolved powers

Conclusion

MGNREGA has undeniably transformed the rural landscape in India, moving beyond a mere employment scheme to a powerful tool for social and economic empowerment. While challenges related to implementation, wage delays, and asset quality persist, the scheme’s core objectives remain relevant. Strengthening monitoring mechanisms, enhancing the skills of MGNREGA workers, and integrating it with other rural development programs are crucial for maximizing its impact and ensuring its long-term sustainability. The scheme’s success underscores the importance of rights-based approaches to development and the potential of decentralized governance in addressing rural poverty and inequality.

Answer Length

This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.

Additional Resources

Key Definitions

Wage Employment
Wage employment refers to work for which an individual receives remuneration in the form of wages, typically on an hourly, daily, or weekly basis. It contrasts with self-employment, where individuals generate income through their own enterprise.
Social Audit
Social audit is a process of evaluating a project or policy by involving the intended beneficiaries and other stakeholders. It aims to assess the impact of the intervention and ensure transparency and accountability.

Key Statistics

As of December 2023, over 23.68 crore individuals have been provided employment under MGNREGA since its inception. (Source: Ministry of Rural Development, Government of India)

Source: Ministry of Rural Development, Government of India

In FY 2022-23, the total expenditure on MGNREGA was ₹89,400 crore, providing employment to 11.72 crore individuals. (Source: PRS Legislative Research, based on budget documents)

Source: PRS Legislative Research

Examples

Water Conservation in Rajasthan

In Rajasthan, MGNREGA funds have been extensively used to construct farm ponds (Johads) and check dams, significantly improving water availability for irrigation and drinking purposes, particularly in arid and semi-arid regions.

Frequently Asked Questions

What are the common criticisms of MGNREGA?

Common criticisms include issues of corruption, leakages in funds, poor quality of assets created, wage delays, and the potential for crowding out of private sector employment. Addressing these challenges requires improved monitoring, transparency, and accountability.

Topics Covered

EconomySocial IssuesRural DevelopmentPoverty AlleviationSocial Welfare