INDIAN EXPRESS | Sonalde Desai | NOVEMBER 12 2015
One, how well does the self-targeting mechanism work? The MGNREGA is a self-targeting programme that assumes that only those who can’t find better-paying, less-strenuous work will participate in the hard manual labour offered under the act. A recently published report (of which I am principal author) by researchers from the National Council of Applied Economic Research (NCAER) and the University of Maryland, based on the India Human Development Survey (IHDS) of over 28,000 households before and after the implementation of the MGNREGA, shows that the programme is moderately effective in this. Thirty per cent of poor and 21 per cent of non-poor households participate; and 30 per cent of illiterate households versus 13 per cent of households with college graduates participate. However, it also offers work to a variety of middle-income rural households, such as moderately prosperous farmers who can’t find work during non-harvest periods. Since programmes solely directed at the poor rarely enjoy wide political support, this broad participation may be one reason for its popularity.
Two, does it really reduce poverty? The IHDS shows that among the 24.4 per cent of MGNREGA-participating households, the median number of days worked is 40 and…continue reading