The extension of the NREGA to the
whole country is
an unprecedented opportunity to build the foundations of a social
security system in rural India, revive village economies, promote
social equity, and empower rural labour.
Ever since its enactment in mid-2005, the National Rural Employment
Guarantee Act (NREGA) has been a target of relentless attacks in the
corporate-sponsored media. Numerous business columnists, most of whom
have never seen an NREGA worksite (except perhaps from an airplane),
have gone out of their way to rubbish this programme. “Expensive gravy
train”, “money guzzler”, “costly joke” and “wonky idea” are the
colourful terms th ey have used to describe it.
It would be surprising if this had nothing to do with the “subversive”
character of the NREGA. Indeed, the Act runs counter to the current
reorientation of economic policy and state intervention in favour of
corporate interests, misleadingly known as “market-oriented reforms.”
As one commentator recently put it, the NREGA is a prime case of
“meddling in markets” (Business Standard, March 13, 2007). It is
another matter that the state freely “meddles with markets” when it
suits business interests, whether it is by forcibly acquiring land on
their behalf, or by creating special economic zones, or by defending
the so-called “intellectual property rights.” The difference is that
the NREGA empowers the working class — there lies the danger.
To avoid misunderstanding, let me clarify that I am not dismissing
every critique of the NREGA as an act of propaganda. The Act has some
major flaws, and there is much scope for reasoned critiques of it as
well as for searching assessments of its implementation on the ground.
What is striking, however, is that informed critiques of the Act have
been few and far between. Instead, a plethora of shallow arguments have
been invoked to deride it.
Outlandish claim
By way of illustration, prominent media attention was given a few
months ago to a so-called “study by the India Development Foundation,”
allegedly showing that the NREGA caused inflation. This is an
outlandish claim, and I leave it to the reader to guess why this
particular item of government expenditure was singled out as being
responsible for inflation, as opposed to, say, the defence budget,
which is almost 10 times as expensive. Further enquiry revealed that
this “study” did not exist; it was just a speculative remark made at a
panel discussion by a member of this Foundation. Nevertheless, this hot
air was promptly pumped into the propaganda balloon.
To put things in perspective, there has also been much “pro-NREGA”
propaganda, mainly from the government. For instance, according to a
recent note from the Press Information Bureau (released on December 28,
2007), the NREGA is nothing short of a “tremendous success.” This
assertion, not backed by any serious evidence, is typical of the
ostrich-like attitude of the Central government to the hurdles that are
holding up the implementation of the NREGA. Government propaganda,
however, is relatively innocuous since the public knows that official
claims have to be taken with a pinch of salt. Corporate propaganda is
more subtle, and thus more insidious.
CAG report
The latest wave of anti-NREGA propaganda in the mainstream media
focussed on a draft report of the Comptroller and Auditor General
(CAG). This report was highlighted in two successive front-page
articles published in one of India’s leading dailies, with headlines
such as: “It’s Official: In Poorest States, Job Funds Don’t Reach the
Poor.” This statement, and variants of it printed in this article and
elsewhere, give a very misleading picture of the CAG report. Indeed,
the report does not present any evidence of massive leakages in the
NREGA, nor was this the objective of the investigation. The main focus
of the report is on the conformity of the programme with the provisions
of the Act as well as with the operational guidelines. The report
points out, quite rightly, that the guidelines are routinely violated.
This applies, in particular, to the transparency safeguards, making the
programme vulnerable to leakages.
There is an important message here, but it is not the same as to say
that NREGA funds “don’t reach the poor.” A large proportion of these
funds does reach, and makes a big difference to the lives of, the rural
poor. This crucial point should not be lost in the din of arguments for
and against the NREGA. Further, recent studies clearly show that it is
possible to enforce the transparency safeguards, and that this can go a
long way in preventing corruption. This view is fully consistent with
the CAG’s analysis.
The key message of the draft CAG report is a constructive one, summed
up in the concluding paragraph: “The MoRD needs to ensure that State
governments take swift and immediate action to remedy these
deficiencies and improve their administrative and technical
infrastructure…, so that the forthcoming expansion of NREGA to cover
all rural districts in the country can be successfully implemented.”
The report presents useful recommendations on how to strengthen the
required support structures, relating for instance to staff
appointments, record-keeping and financial management.
The Central government would do well to heed this constructive message.
The extension of the NREGA to the whole country, just three months from
now, is one of the biggest organisational challenges any government has
ever faced. It is also an unprecedented opportunity to build the
foundations of a social security system in rural India, revive village
economies, promote social equity, and empower rural labourers. As
things stand, however, this bold initiative looks like a political
stunt, shorn of the far-reaching preparations that are required to make
it a success. It is in this context that the draft CAG report needs to
be treated as a useful wake-up call, rather than as another stick to
beat the Act with.
(The author is Visiting Professor at Allahabad University and a member
of the Central Employment Guarantee Council.)
http://www.hindu.com/2008/01/11/stories/2008011159891100.htm
