The Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) was adopted in 2005 and first became operational in 200 of the poorest districts in India in February 2006. Within two and a half years it was extended to the rest of the country in April 2008.
Why did MNREGA fail?
Work needed to be provided to a person who registers for it within fifteen days of the date of demand. If work is not provided within 15 days of applying, the state is expected to pay an unemployment allowance which is one- fourth of the wage rate.
Therefore, the Act acted as a social safety net, provided employment to the poorest and aimed at inclusive growth and strengthening of the rural economy. This looks somewhat like the unemployment allowance system being followed in some of the developed nations, except that the government forgot-
Why did MNREGA fail?
Work needed to be provided to a person who registers for it within fifteen days of the date of demand. If work is not provided within 15 days of applying, the state is expected to pay an unemployment allowance which is one- fourth of the wage rate.
Therefore, the Act acted as a social safety net, provided employment to the poorest and aimed at inclusive growth and strengthening of the rural economy. This looks somewhat like the unemployment allowance system being followed in some of the developed nations, except that the government forgot-
- India has a huge population(read unskilled labour force) and comparatively lesser demand for work (rampant corruption and mismanagement worsen the situation). This means the situation is inevitable where many would not get the job and will receive the unemployment-allowance.
- The Planning Commission had pointed out that payments to the workers were delayed as there was a late measurement of work. There were constant delays in payments and workers often waited for months to receive their wages. Delayed wages warranted compensation under the Payment of Wages Act. However, due to an ineffective grievance mechanism the problem was not being addressed.
- There were not enough administrative and technical officials. The lack of administrative power in running the scheme in a proper decentralised manner to accomplish the building of blocks and capacity is simply a blunder.
Among other reasons, these were the ones that made MNREGA a terrible failure.
There are many reasons for its failure but almost all of them can easily be traced back to 2 factors:
1. Corruption
2. Mismanagement
1. Corruption
2. Mismanagement
It was an extremely promising scheme which was implemented in the worst possible way leading to the failure.
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