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How can we move financial privation to the museum? Listening to Ground Realities Reetika Khera, Centre for Development Economics, Delhi School of Economics.

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Presentation on theme: "How can we move financial privation to the museum? Listening to Ground Realities Reetika Khera, Centre for Development Economics, Delhi School of Economics."— Presentation transcript:

1 How can we move financial privation to the museum? Listening to Ground Realities Reetika Khera, Centre for Development Economics, Delhi School of Economics

2 “Nutrition Emergency” in India Proportion (%) of children aged under 3 years who are 1998-92005-6 Underweight4746 Stunted4538 Wasted1619 Not fully vaccinated5856 Anaemic7479 Source: Dreze, Khera and Narayanan (2007)

3 The Legal Framework oDirective Principles (Articles 39 and 47): The state shall o“in particular, direct its policy towards securing— o(a) that the citizens, men and women equally, have the right to an adequate means of livelihood;” o“..regard the raising of the level of nutrition and the standard of living of its people and the improvement of public health as among its primary duties”

4 National Rural Employment Guarantee Act (NREGA) A step towards the right to work, as an aspect of the fundamental right to live with dignity. Employment on demand: within 15 days Legal right: entitlement to unemployment allowance Universal entitlement Minimum wages within 15 days of working

5 NREGA: Employment Generation and Expenditure 2007-8 * 2008-9 Total: Employment (crore person-days)144 216 Expenditure (Rs. crores)15,85727,250 Expenditure on wage (% of total) 6867 Expenditure (as % of GDP)< 0.50.7 Employment per rural household employed on NREGA (person-days): 4248 * Data pertains to the 330 districts covered under NREGA at the time.

6 Share (%) of Disadvantaged Groups in NREGA Employment 2007-82008-9  Women:4248  Scheduled Tribes (ST):2925  Scheduled Castes (SC):2729  SC/ST Combined:5654

7 NREGA and “financial privation”  Social security for the able-bodied  Women’s empowerment  Asset creation in rural areas  Financial Inclusion  Distress migration  Revitalizing Panchayati Raj institutions

8 NREGA in the Hindi heartland Findings from a survey in six states (Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Rajasthan, Uttar Pradesh)

9 NREGA workers belong to the most disadvantaged social groups Proportion (%) of sample workers who are: Men Women  SC/ST7175  Illiterate5282  In “kachha” homes8181  Without electricity 7762

10 There is massive demand for NREGA work Proportion (%) of sample workers who want  At least 100 days of NREGA work98  NREGA work throughout the year50

11 Employment Generation: Big jump… Average days of NREGA work per sample household in the past 12 months  All survey states43  Interstate variations Pati (Badwani district)85 Rajasthan71 Bihar23

12 … but way below demand Proportion (%) of sample households that got 100 days of NREGA employment  All survey states14  Interstate variations Pati (Badwani district)47 Rajasthan36 Chhattisgarh 1

13 Women’s participation: Highly uneven Proportion (%) of women among sample workers Rajasthan71 Madhya Pradesh 44 Chhattisgarh 25 Jharkhand 18 Bihar 13 Uttar Pradesh 5 All survey states 32

14 Empowering women Proportion (%) of sample women who:*  Collect their own wages79 (92)  Kept their own wages68 (51)  Had no other source of cash income in the past 3 months70 (44) * In brackets, the corresponding figures for men.

15 Minimum wages: getting there… MenWomen (Rs./day)  Agricultural wages53 47  Other casual labour71 53  NREGA wage* 85 85  Minimum wage*88 88 * Unweighted average of worksite-specific figures.

16 NREGA: Just “playing with mud?” Proportion (%) of worksites where the work being done was considered “useful”:  by the labourers70  by the survey team81 Proportion (%) of worksites where asset being created was considered “useful” by the survey team:87

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21 Financial Inclusion and NREGA  Accounts opened * 8.84 Of which Joint7.84 Banks4.84  Proportion (%) of respondents who preferred accounts to cash payments85 Concerns: “Business correspondent model” Transparency safeguards * In crores. Source: www.nrega.nic.in

22 Awareness levels are still very low Proportion (%) of sample workers who were aware of their entitlement to: 100 days of work52 Minimum wage56 Timely payment of wages 56

23 Wage Payments: Plenty of complaints Proportion (%) of worksites where workers had the following complaints:  Delays in wage payment 57  Non-payment of minimum wage 47  Work is too hard43

24 “NREGA-2”: Politics vs. Labourers concerns Issues  Low levels of awareness  Lack of work  Delayed wage payments  Poor/non-existent grievance redressal Recent amendments to the NREGA  Renaming of the Act  Expansion of list of works Works on private lands Rajiv Gandhi Sewa Kendras

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