Tuesday, August 26, 2014

REALITY OF MNREGA AND REQUIREMENT OF RURAL DEVELOPMENT

By Manohar Manoj
When UPA Government came in power in year 2004, then its leader Ms. Sonia Gandhi was very much influenced with Jhola brand NGOs and political activists. Sonia was strongly of the view that then ruling party NDA's economic reform agenda were avoiding the human face of reform. To her, NDA was running very fast on the new economic policy pitch laid by her party's previous Prime Minister P V Narsimha Rao and  it has lost its human touch and hence this party, despite delivering so many things on various performance criteria, lost the 2004 election and on the contrary, the congress party, which was hopeless of getting power in year 2004, ultimately able to find the hands of the poor.
                After UPA’s coming in power, Sonia formed a national advisory committee which was full of all those members which already had an ideological bond with Sonia. These persons advised Sonia directed UPA government to start issues like; 'Right to Information', 'Employment guarantee scheme' and 'Right to Education' etc.. Roughly these all program ideas were very significant for the social empowerment and development of the country. On Right to information, agitations were going on in the country for last 9 years under the leadership of Aruna Roy. On the employment front, rural manpower were rushing towards big metro and industrial centre of the country and over education, it was thought out that country must enhance its GDP expenditure ratio over this. Therefore, UPA took all these three agenda on its priority which actually had come to the Manmohan led government through Sonia route. But Sonia would have never thought a time will come when this game changer schemes propounded by her proved to be a reason of her defeat in year 2014 Loksabha election.
The reason to say, the purpose of bringing Right to Information was to check corruption from the system. The purpose of employment guarantee act was to create gainful employment opportunities in rural areas and right to education was tried to ensure through levy of education surcharge over the existing taxes imposed over the public. Out of these all 3 measures, barring 'Right to Education' measure, rest 2 measures in way created catastrophe for the Sonia controlled UPA government.
                'Right to information' Act enabled the issue of corruption, to come on the forefront, but in place of controlling corruption, this Act proved to be a tool of blackmailing over the issue of corruption. This RTI Act provided an opportunity to go into the deep of any corruption occurrence, of which activist desired to do; but it was not instrumental enough to convict the culprit. So this law was to be more helpful for the people like Media persons, who reports about corrupt occurrences and this act might have provided them detail information about the occurrences. But in practice, this Act erected such kind of NGO activists who started their activism in targeted way and thus they started to launch their political agendas which ultimately proved to be one of the reasons of defeat of Sonia controlled UPA.
In place of piecemeal initiative like RTI, if UPA government might have started a big campaign over  the issue of corruption comprising legal, institutional and policy measures, the issue which has rooted in our system very from 1960s and  have been flourishing in the system  day by day , it would have much better prospect for the Sonia  led UPA.
                Out of above mentioned 3 measures, the most discussed issue MNREGA is said to be major reason for the country's fiscal and inflationary position. When this scheme was being launched, there were many, particularly the social scientist, who said lot of words in the praise of this scheme. Some said that this scheme would be most revolutionary scheme for the sake of rural transformation. But perhaps these people might have forgotten that the element of corruption which is persisting in every sphere of country's life will ultimately spoil this very buzzing scheme too. The drafters of this scheme were of the view that the legal entitlement of this scheme will ensure its success. Even prior to this scheme there were scheme like National rural employment scheme NREP and IRDP and country has experienced big fiasco of them. Though, there must be no controversy over the volume of funds what MNREGA has been allocated in these years; because we think rural sector deserves more funds, which was not become possible in the country despite the presence of big socialist and communist slogan. The fact was that country never crossed 5 PC growth rate before the NEP period. When country ushered in high growth rate era, it enabled high revenue earning for the government and so higher allocation for the rural area.
                The way, the present finance minister Arun Jaitly says that until unless we become business friendly, we can not have more revenue earning and so enough resource for the poverty alleviation schemes. Actually this statement of Jaitly does not reflect his original idea, rather it was the mantra of congress party while launching of their new economic policy. But Sonia controlled UPA perhaps forgotten this point that the hiked allocation for the rural development can not benefit people until unless they have full proof scheme, where there is no possibility of monkey sharing and collective distribution of fund among the corrupt  officials.
                Despite the MNREGA scheme having legal framing and series of modification in it, initiated by Minister like Jayram Ramesh in between UPA and UPA 2 period, people in general were of the view that MNREGA has become a scheme of shier looting of public money, which is also creating many side effects in the economy. Economists openly said that this scheme is responsible for creating crisis in the country in terms of fiscal deficit and inflation.
This is very simple theory of economics, if the money invested somewhere, does not produce anything in terms of goods and services; it has inflationary effect over the economy. This is the reason during the UPA ruling period price rise had alarming position and administrator like Sheela Dixit have had to say MNREGA is responsible for the price rise.
                On the whole, in absence of a broad vision, administrative reality and foresighted approach,  various  schemes initiated by Sonia were proved to be merely populist one for the electorates of the country and in fact futile for the country's economy. It consequently till the coming of 2014 country was trapped in vicious cycle of fiscal deficit, trade deficit, food inflation and investment drought. The poor people who were earlier dancing with the populist measure, now began to cry over the side effects of these schemes in form of price rise and unemployment.
                In recently concluded parliament session parliamentarians termed this MNREGA scheme an unwarranted scheme for the county. Many MPs termed it digging and filling schemes which avoids asset creation in the village and community site. The minster in charge of rural development, Nitin Gadkari introduced some minor modification in the scheme; he announced little reshuffling in the expenditure ratio of this scheme.
The labor asset proportion which was earlier in 60:40 ratio, has been changed to 51:49 now.
                The question is, the monetary allocation and transfer of resources to the rural areas must be continuously enhanced, but before this it is very necessary to ensure that this money get invested mostly over the infrastructure building in the rural areas. Infrastructure means,, both social infrastructure like school, hospital, sanitation, home for weaker etc. and capital infrastructure means road, electricity, bridges, banks, irrigation; investment over these items will automatically create employment opportunities as well as asset creation in rural area. So we urgently need to club all the capital infrastructure schemes like PMGSY, MNREGA, IRDP, NREP,PMSJGY, RIDF into one Rural capital infrastructure development yojana and clubbing all social schemes like Sarva Shiksha Abhiyan, midday meal, NHRM , Nirmal gram Yojana into one social infrastructure development yojana .
                The money, which UPA government distributed into the pocket of rural unemployed youth, it was better to invest this money over the pension and social security of all weaker section of the society like widow and widower, above 55 aged people, chronic patient and all handicap population of the country, it would have much better option.

                We should not forget this fact that whatever prosperity the rural India is witnessing now days, that is because of remittance economy, Thanks to the mobility of laborers market in the country, which provided opportunity to the million of workforce in both the domestic and international market. The mass out flux of laborers from the supplier market to the demand market enabled huge influx of money in the rural area. One who says that MNREGA has enhanced the living standard of labor population, they are wrong. If each district of the country has a growth center under PURA model, it would have better step. The way we are discussing skill development through the ITIs in the country, in the same manner we need growth centre in each district of county, it would have multiplier effect over the rural economy. For this it is also necessary we make infrastructure development of rural areas as the main base of rural development. Our mantra of rural development must be 1 infrastructure development 2. Human development 3 comprehensive social security scheme along with toilet cum house for all destitute and landless family of the village and 4, to garner as much as employment opportunities out of these all 3 schemes. 

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