*NREGA: ship without rudder?*

http://www.hindu.com/2008/07/19/stories/2008071954741100.htm*
*
Jean Drèze * The tremendous potential of the scheme is in danger of being
wasted in some States. *

Recent events in Jharkhand highlight various issues that need to be urgently
addressed if the National Rural Employment Guarantee Act (NREGA) is to
survive and thrive. These events include the murders of two NREGA activists
(Lalit Mehta and Kameshwar Yadav), a survey of NREGA initiated by the G.B.
Pant Social Science Institute in Palamau and Koderma districts, and public
hearings held there on May 26 and June 18 respectively. The latest incident
is the tragic death of Tapas Soren, who immolated himself in Hazaribagh on
July 2 to protest against official harassment in the context of NREGA work.

By way of background, a glimpse of the survey findings may be useful. Even
in Jharkhand, one of the worst performing States as far as NREGA is
concerned, there is some good news. For instance, the transition to a
rights-based framework has led to a major decline in labour exploitation on
rural public works. Wages are higher than they used to be, delays in wage
payments are shorter, productivity norms more reasonable, and complaints of
worksite harassment rare. NREGA is a valuable and valued opportunity for the
rural poor, and particularly for women, to earn a living wage in a dignified
manner.

Most of the respondents in a random sample of about 200 NREGA workers in
Palamau and Koderma districts were highly appreciative of the programme. For
instance, they felt that NREGA helped them to avoid hunger and distress
migration. Also, a large majority of the respondents felt that the assets
being created under NREGA were "useful" or "very useful." This was also the
assessment of field investigators. Far from being a case of "playing with
mud," as one grumpy commentator recently put it, NREGA is a productive
scheme — and it could be even more productive with a small dose of technical
and scientific support.
 Massive corruption

In Jharkhand, unfortunately, the tremendous potential of NREGA is in danger
of being wasted due to massive corruption. Judging from the survey findings
in Koderma and Palamau, transparency safeguards are routinely violated and
funds are being siphoned off with abandon. A similar picture emerges from
surveys in Bihar and Uttar Pradesh, though there are also heartening
examples of transparent implementation of NREGA, notably in Rajasthan (where
we found very little evidence of embezzlement of wage funds) and Andhra
Pradesh (where post office payments and institutionalised social audits
appear to have a similar impact).

Coming back to recent events in Jharkhand, there is much scope for
introspection. To start with, these events have exposed the repressive if
not criminal character of the Indian state in large parts of the country. It
is bad enough that brazen embezzlement of NREGA funds in Jharkhand, with the
complicity of many government officials, has deprived millions of people of
employment and wages, and thereby, of their constitutional right to life.
For good measure, State authorities often scuttle any attempt to expose this
nexus of corruption and crime. Our own survey team had a taste of this
bitter medicine in Palamau: instead of acting on the complaints we brought
to its attention, the District Administration turned against the team and
sent a malicious and defamatory "report" to the Ministry of Rural
Development, even insinuating that some of us might have had a hand in Lalit
Mehta's murder. Defenceless grassroots workers are not so lucky as to get
away with insults: they literally risk their lives every time they stand up
against state-sponsored corruption and exploitation.

Second, the counterpart of this repressive apparatus is the utter
helplessness of working people. This helplessness begins with a thick cloud
of ignorance: we were amazed to discover how little people knew about NREGA
in the survey areas, more than two years after the Act came into force. To
illustrate, among 200 persons currently working on NREGA worksites in
Palamau and Koderma, less than 30 per cent knew that they were entitled to
100 days of employment per year under the Act. The concept of "work on
demand", for its part, had not sunk in at all. The vulnerability of the
programme to corruption and abuse begins with this lack of awareness of
their rights among NREGA workers.

Third, this powerlessness is also due to the absence of any effective
grievance redressal system for NREGA. Gross violations of the Act can be
perpetrated with virtual impunity, and most people do not know what to do
and where to go when they have complaints. Even when there is conclusive
evidence of fraud, and with the full backing of the Central Employment
Guarantee Council, we have found it extremely hard to secure any remedial or
punitive action. This state of affairs opens the door to further
deterioration of the standards of implementation of NREGA, as the message is
rapidly spreading that "anything goes" and that those responsible for fraud
and embezzlement are "safe."

Fourth, while this situation is not unique to Jharkhand, it has been
amplified there by the absence of Gram Panchayats in rural areas. Jharkhand
is the only state where Gram Panchayat elections have not been held since
the 73rd and 74th amendments of the Constitution (known as "Panchayati Raj
amendments"). This is not only a flagrant violation of the law, but also an
infringement of people's fundamental rights, since it is impossible to
provide effective public services in rural areas without functional
institutions of local governance. NREGA itself is a casualty of this state
of affairs. 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" (beneficiary committees). But private
contractors work for profit, and the only way to make profit from NREGA is
to cheat. In Jharkhand, therefore, corruption is built into the system.

Fifth, this impending anarchy also reflects the casual attitude of the
Central government towards its own money. Given that about 90 per cent of
the NREGA funds come from the Centre, the Central government has a right and
a duty to enforce high standards of transparency and accountability in the
programme. The Act gives it wide powers to do so, whether it is through
framing rules, conducting investigations, designing an effective Monitoring
and Information System (MIS), or taking action where there is evidence of
fraud. Instead of seizing these opportunities, the Ministry of Rural
Development largely expects the State governments to comply with its
Operational Guidelines. These guidelines are indeed very good, but their
legal status is unclear, and many State governments are treating them
lightly — applying what suits them and ignoring the rest. Thus, NREGA is
being implemented in a dangerous vacuum, with few mandatory norms except for
the general provisions of the Act. Even basic safeguards, such as the
maintenance of job cards and the transparency of muster rolls, are
effectively left to the discretion of the State governments. This state of
affairs makes NREGA quite vulnerable to corruption and other irregularities.
As political parties are about to launch their respective election
campaigns, there is a frightening possibility that many of them will try to
"dip" into NREGA funds to fill their coffers. A wake-up call is badly
needed.

Finally, the powerlessness of NREGA workers is also a reflection of the
timidity of grassroots organisational work on this issue. Somehow, political
organisations and social movements are yet to seize the vast potential for
collective action around NREGA, whether it is through joint work
applications, struggles for minimum wages, participatory planning, or
building workers' unions. One rarely sees crowds of people blocking the road
to demand NREGA work, or staging a dharna against delayed wage payments. The
fact that a large majority of the rural population is still in the dark
about the basic features of the Act, almost three years after it was passed,
is another symptom of this organisational gap.
 The way forward

On a more constructive note, these observations point to the way forward. As
far as government policy is concerned, urgent priorities include framing
strong rules for NREGA, putting in place grievance redressal procedures,
enforcing the transparency safeguards, and taking swift action whenever
there is evidence of fraud. As far as public action is concerned, the need
of the hour is to make better use of NREGA as a tool of organisational work
and enable NREGA workers to defend their rights. Counting on the kindness of
the state would be futile.

(*The author is Visiting Professor at Allahabad University and member of the
Central Employment Guarantee Council.*)


*~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
"Ours is a battle not for wealth or for power.
It is a battle for freedom. It is a battle for the reclamation of human
personality."
- Dr BR Ambedkar
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