Economic Impacts of MGNREGA in Dryland Region of India: A Meso and Micro Study in Selected States

Abstract

This chapter assesses impacts of MGNREGA in selected six states and selected sample households in four districts of Karnataka, covering both macro level and micro scale analysis. We analyze data on whether MGNREGA programme has been successful in providing 100 days of employment per annum to rural poor households, and to what extent the MGNREGA has offered social protection to the rural poor. Likewise, whether increase in agricultural labour wage rate in recent years is due to introduction of MGNREGS. The results indicate that at the macro level, the performance of MGNREGA is not even across the six dryland states selected here, even after a decade of its implementation. Only 7–12% of the households could receive 100 days of employment from MGNREGA in the six states studied. In Karnataka, over 60% of households were provided employment for less than 60 days. It was observed that the benefits obtained are largely at the community level through asset creation that includes desiltation of irrigation tanks, rural connectivity and construction of school buildings. Though MGNREGA works were able to assure sustainable development through improved Natural Resource Management in some regions, it failed in providing social protection where the leadership of implementing agencies was weak and lack of dynamism. Stringent rules and regulations resulted in inordinate delays in executing works and making timely payment of wages to workers. Addressing these issues in the implementation of MGNREGS would enhance its multi-dimensional impacts on rural poor across the India, and ensuring for sustainable development in rural India.