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 Talking with Architect of NREGA: Dr Jean Dreze at Ranchi

*Dr Jean Dreze born in Belgium in 1959, has lived in India since 1979 and
became an Indian citizen in 2002. He studied Mathematical Economics at the
University of Essex and did his PhD (Economics) at the Indian Statistical
Institute, New Delhi. He has taught at the London School of Economics and
the Delhi School of Economics, and is currently Visiting Professor at the
G.B. Pant Social Science Institute, Allahabad.*

According to a recent article in Business Standard, the National Rural
Employment Guarantee Act (NREGA) has attracted more criticism than any other
development programme. What is your view?

This statement reflects the outlook of the business media, which has been
very hostile to NREGA from the beginning. If one were, instead, to ask rural
workers what they feel about NREGA, one would get a very different response.
For instance, in a survey of 1,000 NREGA workers conducted in May-June in
six states of North India (including Jharkhand), we found that 68 %
considered the programme as "very important" for them. This is not to deny
that there are many flaws in the programme, including widespread corruption.
Nevertheless, NREGA represents a new hope for the rural poor. Instead of
shrill rhetoric for or against the programme, what is required is serious
discussion of how to make it work.

Can you tell us more about the main findings of this survey of NREGA?

The survey was conducted in May-June 2008 in six states of the
Hindi-speaking region: Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh,
Rajasthan and Uttar Pradesh. It involved unannounced visits to 100
randomly-selected worksites, and detailed interviews with 1,000 workers
employed at these worksites. The survey shows that, where NREGA work is
available, the programme serves many useful purposes: protecting people from
hunger, reducing distress migration, empowering women, creating useful
assets, among others. Unfortunately, this potential is being wasted due to
widespread corruption. In most of these states, a substantial proportion of
NREGA funds is being siphoned off, and as a result, employment generation is
much lower than it ought to be. However, some states - particularly
Rajasthan - have also shown that it is possible to prevent corruption in the
programme.

How has this been achieved?

The main point is to enforce the transparency safeguards, such as payment of
wages in public, availability of Muster Rolls at the worksite, maintenance
of Job Cards, regular social audits, and close monitoring of the
implementing agencies. Rajasthan has gone a long way in implementing these
safeguards. For instance, in Rajasthan we found that Muster Rolls were
available at 86 per cent of the sample worksites, compared with only 11 per
cent in other states. Similarly, Job Cards were usually well maintained in
Rajasthan, but this was rarely the case elsewhere.

Can this be done in Jharkhand also?

I think it can be done, but this involves confronting the nexus of corrupt
contractors, bureaucrats and politicians who are attempting to make money
from NREGA. In Jharkhand, this nexus is very strong, and also violent, as
the recent murders of Lalit Mehta, Kameshwar Yadav and others illustrate.
When those who are supposed to enforce the transparency safeguards are part
of this nexus of corruption and violence, it is very difficult to restore
accountability. This requires putting in place a strong system of grievance
redressal, which ensures that anyone found guilty of corruption is swiftly
punished. It also requires a political decision to combat corruption and
protect workers' entitlements. In a state ridden with corruption and
violence, such as Jharkhand, these are big political challenges.

Does this mean that the success of NREGA depends on the good will of the
political leadership?

Not really. The required change in political priorities can be accelerated
through grassroots mobilization. There are vast possibilities of
organizational work around NREGA. We also found evidence of this in our
survey. For instance, in Badwani District of Madhya Pradesh, Jagrut Adivasi
Dalit Sangathan has organized NREGA workers and helped them to fight for
their rights: employment on demand, minimum wages, timely payment, and
worksite facilities, among others. The results are remarkable. People's
awareness of their rights is very high and so is their confidence in their
collective strength. Many of them are able to secure a full 100 days of
NREGA work over the year - the maximum guaranteed under the Act. The
Sangathan has even been able to persuade the state government to pay the
unemployment allowance to hundreds of persons who had been denied work. It
is also activating vigilance committees, to prevent corruption. These are
very significant political developments, not restricted to Badwani, with
enormous scope for wider expansion across India.

You have been a member of the Central Employment Guarantee Council for the
last three years. What is your assessment of the Council's work?

The Council has done very little work so far. Under the Act, the Council has
wide-ranging powers and it is expected to play a very important role as an
independent monitoring body. However, the Council is under the full control
of the Ministry of Rural Development, which is treating it as an advisory
body - accepting the recommendations that suit the Ministry and ignoring the
rest. This defeats the purpose.

What about the State Employment Guarantee Council in Jharkhand?

I hear that the State Council in Jharkhand is more or less non-functional.
This is an important lacuna in the support structures that are required to
make NREGA work.

You have already mentioned some of the reasons why NREGA is in bad shape in
Jharkhand. Are there any other important hurdles?

The absence of elected Gram Panchayats in rural areas is a major problem. In
the absence of Gram Panchayats (the chief "implementing agency" under the
Act), the implementation of NREGA in Jharkhand is effectively under the
control of private contractors, or quasi-contractors such as the so-called
"labhuk samitis". But private contractors work for profit, and the only way
to make profit from NREGA is to cheat. Therefore, corruption is built into
the system.

What about the Naxal problem?

I doubt that this is a major problem as far as the implementation of NREGA
is concerned. I am not aware that Naxalite organizations obstruct the
programme in any way, on a major scale. During our surveys and social
audits, we have moved freely in areas under Naxalite influence, without any
interference. A government official who does his duty under the Act, in an
honest manner, is unlikely to become a target of harassment.

What is true is that, in many areas, the Naxal presence has become a
convenient excuse for government officials to avoid going to the villages.
But the answer is not to launch repressive operations against Naxal outfits
that invariably lead to gross human rights and further escalation of
violence. The appropriate response is to insist that all government
officials fulfill their responsibilities under the Act.

I would go further and say that NREGA is a good opportunity to create a new
rapport between the state and the people in these areas, based on
constructive work. The face of the state in rural Jharkhand is very
repressive, especially from the point of view of poor people. They live in
fear of harassment from the police, the forest guard, the courts, and other
arms of the state. This experience of state repression is one reason why
many of them support Naxalite organisations. If the state machinery applies
itself to the effective implementation of NREGA, it may be seen in a more
positive light by rural people.

At the end of the survey, your team submitted to the state government
evidence of specific irregularities in the implementation of NREGA in
various Gram Panchayats of Palamau and Koderma Districts. What has been the
response of the government?

In some cases, such as Khendra Khurd and Chiru in Palamau, action has been
taken. But this has usually taken the form of clamping down on the small fry
while more influential and powerful people, who control the system of
corruption, escape punishment. And in many other cases, there has been no
action at all. Even the official enquiries are often designed to protect the
culprits rather than to take necessary action.




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