The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) - Description and Evaluation of the Rural Employment Policy in India

Abstract

This paper provides a comprehensive analysis of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) in India, tracing its origins from the National Food for Work Programme. The study explores the policy framework, objectives, and implementation of MGNREGA, emphasizing its role in addressing work and food shortages in Indian villages. The paper employs policy analysis and impact assessment methodologies, considering factors such as rural poverty, wealth distribution, and the need for inclusive economic growth. The evaluation covers key features of the policy, including the establishment of a National Employment Guarantee Fund, weekly wage payments, gender equality, and prohibition of contractors and labour-displacing machines. The impact assessment indicates positive outcomes in areas such as income, labour rates, food security, savings, debt clearance, confidence building, and reduced distress migration. The case study of Andhra Pradesh highlights the program's effectiveness, with an average employment of 53 days per household and an additional income of Rs.5100 during the 2010-11 period. The paper underscores MGNREGA's significance in achieving participatory and equitable growth, complementing market-oriented and infrastructure-related policies.