Guarantee Scheme Research Articles

Spatial data analysis of Mahatma Gandhi national rural employment guarantee scheme and its influencing factors

Spatial data analysis of Mahatma Gandhi national rural employment guarantee scheme and its influencing factors

Development Schemes and the Hill District: Studying State–Society Relationship in Manipur

This article emphasizes that in thinking about the state–society relationship in the hills of Manipur, we need to refocus our attention on how development schemes shape the way the villagers perceive and engage with the state. This calls for a fresh enquiry into state institutions such as Village Authority, Autonomous District Councils and District Rural Development Agency within the understanding of decentralization. The article looks into the complex interplay of the institutions of the state and explores the different equations of power within them, giving rise to new elites. It shows how development schemes are distributed and implemented in the villages, the difficulties in getting access to those schemes, and the means people employ to access them. Two flagship development schemes—Mahatma Gandhi National Rural Employment Guarantee Scheme and Pradhan Mantri Awas Yojana—are taken up to analyse the state–society relationship in this context.

Rural Development Schemes in India: With Special Reference to Mahatma Gandhi National Rural Employment Guarantee Scheme

Mahatma Gandhi National Rural Employment Guarantee Scheme has been started from February 2, 2006 in the most backward 200 districts of the country. Development plans in India have been started with the prejudice that the only way to save millions of unemployed in rural areas is by setting up industries in cities and providing them labor opportunities there. But the drought in the middle of the 60s and the sense of national guilt that arose from it forced a change in the direction of the policy. The result of this reconsideration was the Green Revolution of the next two decades, but the wheels of this revolution are now wobbly. Centered on the prosperous farmers of India's alluvial belt, limited to wheat and rice, this revolution deprived the poorest and most backward regions of the country of their income. As a result, the cycle of poverty in such backward areas deepened. Crores of small and marginal farmers had to earn their living by finding work outside their fields. The figures of the National Sample Survey show that 80 percent of the agricultural laborers are those who have to work despite having their own land. Because the potential for employment generation in their farms went extinct with the degradation of the environment. Even after a long period of independence, there was no significant change in the rural life.
 Abstract in Hindi Language:
 महात्मा गांधी राष्ट्रीय ग्रामीण रोजगार गारंटी योजना देश के सबसे पिछड़े 200 जिलों में 2 फरवरी 2006 से आरम्भ की गई हंै। भारत में विकास योजनाओं की शुरूआत ही इस पूर्वाग्रह से हुई है कि ग्रामीण क्षेत्रों के करोड़ो बेरोजगार के उद्धार का एकमात्र तरीका है शहरों में उद्योग स्थापित कर उन्हें वहां श्रम के अवसर प्रदान करना। किंतु 60 के दशक के मध्य में पड़ी सूखे की मार और उससे उत्पन्न राष्ट्रीय ग्लानि की भावना ने नीति की दिशा को बदलने पर मजबूर कर दिया। इस पुनर्विचार का नतीजा था अगले दो दशकांे की हरित क्रांति लेकिन इस क्रांति के पहिए भी अब डगमगाने लगे है। भारत के कछारी इलाके के सम्पन्न किसानों पर केन्द्रित, गेहूं और चावल तक सीमित, इस क्रांति ने देश के सबसे गरीब और पिछड़े क्षेत्रों को अपने आय से दूर रखा। नतीजा ऐसे पिछड़े क्षेत्रों में गरीबी का चक्रव्यूह और भी गहराया। करोड़ो छोटे व सीमांत किसानों को अपने खेत के बाहर काम ढूंढ कर अपना जीवन यापन करना पड़ा। राष्ट्रीय सेम्पल सर्वे के आंकड़े बताते है कि खेतिहर मजदूर में 80 प्रतिशत ऐसे है जिनके पास अपनी जमीन होते हुए भी जिन्हें काम करना पड़ रहा हैं। क्योंकि उनके खेतेंा में रोजगार सृजन की क्षमता पर्यावरण के पतन के साथ विलोपित होती गई। स्वतंत्रता प्राप्ति के एक लम्बे समय के बाद भी ग्रामीण जीवन में कोई विशेष परिवर्तन नहीं आया।
 Keywords: ग्रामीण विकास, मनरेगा, योजनाएं भारत, गरीबी।

Job Loss Guarantee Program Policy as Legal Protection for Terminated Workers Based on Job Creation Law Article 46

To provide legal protection for workers who have experienced termination of employment, the government of Indonesia has issued a new policy in the form of Article 46 of Law No. 11 of 2020 concerning the Job Creation Law. This increases the type of protection for social security programs, namely the job loss guarantee program. This paper uses a juridical-normative research method. The results indicate that the legal protection policy for workers affected by termination of employment was not appropriate. Therefore, an amendment was made to Law Number 40 of 2004 concerning the National Social Security System. Specifically, Article 46A of the Job Creation Law states: "Workers or employees who have their activities terminated are entitled to collateral due to loss of profession." Article 46C(2) also states that the Central Authority should pay the professional burnout insurance contributions. In this case, non-professional collateral benefits are not focused on money but on cash, access to actionable market data, and job training. It is not explained in detail what percentage of the total compensation will be obtained by workers affected by termination of employment through this job loss guarantee scheme. This is only stated in Article 46D paragraph (2), "Job loss guarantee will be provided for 6 (six) months of wages."

The Non-Required by Law Measures by Deposit Guarantee Schemes to Protect Bank Accounts: The Case of Italian FITD

This article aims at giving a contribution to the issue of protecting bank accounts and deposits by national deposit guarantee schemes through financial assistance interventions of an optional and voluntary nature, instead of the reimbursement of only legally protected deposits in case of bankruptcy of the depository bank. Firstly, we investigate the EU framework for bank crisis resolutions. Specifically, we briefly analyze the EU rules on both prevention and resolution of banking crises pointing out the economic rationale behind the “bail-in” principle, and then identify the characteristics of the third “pillar” of the Banking Union, the EU Deposit Guarantee Schemes. Subsequently, we examine the operating procedures of the Italian Guarantee Scheme (FITD) focusing on the non-required by law interventions carried out by the latter to protect bank accounts and deposits and at the same time prevent or resolve the crises of Italian banks. Finally, some conclusions on the topic at stake will be drawn.

Financing the retailer capital‐constrained supply chain with consideration of product quality and demand uncertainty

AbstractA two‐echelon supply chain with a capital‐constrained retailer is investigated where uncertain demand and defective products are considered. As an intermediate between the retailer and the bank, the supplier provides a credit guarantee for the retailer. Two credit guarantee schemes are proposed, guarantee for quality and guarantee for both quality and sales (GQS). The partners' optimal decisions under different schemes are derived via Stackelberg game. As a critical influential factor to determine the financing cost, the loan interest rate is carefully examined with respect to its effect on the strategies of both partners. Furthermore, the influence of loss aversion on the participants' decisions is examined. Based on the theoretical analysis and numerical experiments, the following conclusions are drawn. First, the retailer's optimal order quantity is independent of the supplier's decision on the technology level, whereas the supplier's optimal decision is affected by the retailer's order size. Second, financing is not always attractive to the retailer, and is adopted only with a reasonably lower loan interest rate. Third, the GQS scheme is a win–win strategy for the supply chain if the loan interest rate is relatively high. Finally, the loss‐averse strategy is more robust for the retailer when the demand is volatile and unpredictable.

Microfinance Credit and Poverty Alleviation in Nigeria (2008 to 2019)

The study examined the relationship between microfinance credit and alleviation of poverty in Nigeria, Poverty can be regarded as the denial of choices and opportunities, a defiance of human dignity. Despite all the policies and measures, taken to reduce poverty , no noticeable success has been achieved in this direction. The key issue is to find out the relationship between microfinance credit and poverty alleviation in Nigeria. using unemployment rate, fixed capital formation and per capita income as proxy for poverty alleviation, while micro finance credit was used as the independent variable of the study. The study covered a period of eleven years from 2008 to 2019. Ordinary least square regression analysis was used in testing the hypotheses of the study. The regression result found that there is a significant relationship between microfinance bank and unemployment rate in Nigeria, there is a significant relationship between microfinance bank and capital formation in Nigeria and there is a significant relationship between microfinance bank and per capita income in Nigeria. The study therefore concluded that microfinance credit has the ability of reducing rate of poverty in the country. The study therefore recommends that the Central Bank of Nigeria should regulate and monitor the activities of Microfinance and also administer specialized funds set aside to improve microcredit access at affordable cost, especially SME Credit Guarantee Schemes.

Child Support Policy across High-Income Countries: Similar Problems, Different Approaches

We provide an overview of child support policy in high-income countries, highlighting differences in institutional arrangements, the amount of child support due, and the amount of child support received. We show that the United States expects high levels of child support from nonresident parents when compared to other countries, that noncompliance is a problem across countries, and that most European countries deal with nonpayment of child support by providing guarantees of public support for children and resident parents. The guarantee schemes vary in terms of eligibility and generosity. Throughout, we find that child support policy approaches differ across countries. A key policy implication from this review is that the United States may be expecting too much child support from nonresident parents and that it could consider guaranteeing a modest amount of public support to single-parent households.

Aggregate Effects from Public Works: Evidence from India

Abstract This paper explores the aggregate economic effects from India's National Rural Employment Guarantee Scheme (NREGS), which provides up to 100 days of labor to rural laborers at the mandated minimum wage. We examine the within-district change to nighttime lights, a proxy for economic development, and banking deposits using the staggered program rollout for identification. We find consistent and robust evidence that NREGS increased aggregate economic output by 1% to 2% per capita measured by nighttime lights. This effect, however, is not equal across districts. We observe no positive effect of the program in poorer districts, illuminating an important source of heterogeneity.

Contribution of National Rural Employment Guarantee Program on Rejuvenation and Restoration of Community Forests in India

Sustainable development is one of the ubiquitous paradigms of this century. Poverty, biodiversity loss and climate change are some of the obstacles to achieving sustainable development. To mitigate these encumbrances, countries have painstakingly adopted various policies and interventions. Public work programs, one of the initiatives targeting the construction of strong social safety nets through redistribution of wealth and generation of meaningful employment are increasingly being launched in developing countries. This paper is an attempt to examine the effects of phased implementation of Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) on the rejuvenation and restoration of community forests in India. Searches performed in multidisciplinary electronic databases (Web of Science, Scopus, Science Direct, PubMed, Emerald Insight, Google Scholar, Taylor and Francis Online, Wiley Online Library, and Springer Link) indicated that MGREGS is one of the largest labor guarantee schemes ever recorded in India and globally, and has holistically contributed to reforestation and afforestation through its land development themes to reduce vulnerability of rural communities to recurrent droughts, floods and improve soil moisture and fertility. It is evident that MGNREGS in synergy with the government forest development programs have the potential to promote social afforestation, reforestation and biodiversity conservation as witnessed in the Sundarbans. These have the potential to empower local people through creation of income generating activities and provision of local forest goods and services. However, the creation of forests as rural assets necessitates that emphasis should be laid on their maintenance so as to ensure that they are given their due importance for sustainable and long-term benefit of the poor rural households. This study highlights the need to perform a comprehensive assessment of forest assets that has been established through MNREGS across states in India.

Breakthrough Path of Low-Level Equilibrium of China's Policy-Oriented Financing Guarantee Market.

Policy-oriented financing guarantee schemes are widely adopted in the world to alleviate the financing difficulties of small and medium-sized enterprises. However, the development level of policy-oriented financing guarantee market in China has not reached the desired high-level equilibrium target, even though governments have issued a series of guiding policies. Accordingly, based on the evolutionary game theory, this study establishes and analyzes the game model between local governments, guarantee institutions, and banks. Then, the breakthrough effects of different paths on the low-level equilibrium of the guarantee market are simulated. The results show that strengthening superior government's performance appraisal intensity can only partially delay the “window period” of the low-level equilibrium, while adjusting local governments' compensation coefficients or increasing banks' risk sharing ratio have further synergistic effects on the realization of the high-level equilibrium. Additionally, dynamic reward and penalty mechanism of the local governments can effectively restrain the unbalanced state of financing guarantee market caused by banks' excess compensation risk, and finally impel the stabilization of the high-level equilibrium state.

Reset Required: The Euro-area Crisis Management and Deposit Insurance Framework

Abstract The crisis management and deposit insurance (CMDI) framework in the euro area requires a reset. This article explains why and proposes a new framework. This could start as early as 1 January 2024 when significant institutions in the euro area will have met requirements to have enough subordinated obligations outstanding to recapitalize the bank if it were to fail. The proposed framework has four components: a single lender of last resort (the European Central Bank); a single presumptive path for resolution (exit via the use of bail-in to facilitate orderly liquidation of the failed bank by the Single Resolution Board under a solvent wind-down strategy); an investor of last resort in a bank’s gone-concern capital (its national deposit guarantee scheme); and a Single Deposit Guarantee Scheme (the Single Resolution Fund with a backstop from the European Stability Mechanism). Together, these measures would limit forbearance, assure bail-in did not touch deposits, promote competition, limit recourse to taxpayer money, standardize resolution procedures for all banks, complete Banking Union and guarantee that a euro of covered deposits would remain a euro, all without forcing national deposit guarantee schemes to reinsure one another. Last but not least the proposed framework would promote financial stability.

Buyer guarantee and bailout in supplier finance with bankruptcy cost

In this paper, we analyze an endogenous determination of a credit guarantee provided by a downstream buyer to a capital-constrained supplier to help the latter access a bank loan. Specifically, the capital-constrained supplier, who relies on bank loans to finance its production, sells a product to the buyer during a single selling season. When offering a purchase contract to the supplier, the buyer has the option to decide how much to guarantee in the supplier's loan payments. Although buyer-provided credit guarantee secures a required supply quantity and reduces the purchase price paid to the supplier (by lowering the supplier's financing costs), it results in financial losses for the buyer when the supplier's realized revenue is not sufficient for repaying the loan. Hence, there exists a tradeoff between the value and cost in designing an appropriate credit guarantee scheme. We explicitly characterize the optimal credit guarantee policy and identify the conditions under which full guarantee is optimal. Furthermore, we show that bankruptcy cost plays a critical role in the impact of the supplier's wealth on the buyer's profit. The buyer is better off working with a less wealthy supplier if there is no bankruptcy cost, but this may not be the case when the bankruptcy cost is high. With buyer-provided guarantee, the existence of bankruptcy cost may incentivize the buyer to provide (ex post) bailout to rescue a supplier that is prone to bankruptcy. We show that the bailout option improves the buyer's profit, although it does not affect the optimality of implementing a full guarantee policy (ex ante).

Managing the job guarantee public policy schemes: a strategic approach

PurposeTo run a job guarantee public policy scheme, it is important to know the aspiration level or the reference point of labor, and accordingly, the labor hour and the wage sequence are to be prepared. The existing job guarantee schemes consider the same wage rates for all types of jobs. As a result, it is to identify the reference point. The present work aims to propose a job guarantee scheme where different types of jobs have different wage rates. The paper explains the choice problem between labor and leisure at different wage rates and proposes complete computational tools to be incorporated into the job guarantee schemes. The paper also gives a mechanism to prepare the list of jobs and corresponding wage rates by maintaining a balance between labor and leisure, where productive activities measure labor hours and labor welfare measures leisure hours. Lastly, the paper provides the analytical tools to interpret the ex-post data of the job guarantee public policy schemes.Design/methodology/approachThe paper has been written based on the Coordination Game and its Welfare Implications in the job guarantee public policy schemes.FindingsThe present paper gives an initial work to measure the choice between labor and leisure for the different wage rates practically. This will help in getting the equilibrium strategies, namely, the combination of the labor hour and the wage rate between the policymaker and the labor. This method will help to implement the job guarantee schemes. For example, to run successfully the Basic Income policy, the basic income calculation should give due care; otherwise, there will be a downward trend in the basic income and the welfare of labor will be reduced, because the labor would have to supply excess labor to meet the target income.Originality/valueThis paper derives theories and explains how the equilibrium in this coordination game can be achieved. The paper explains how the policy of the job guarantee schemes can be practiced practically. In the MGNREGA scheme, the public institution declares different categories of jobs with different wage rates. The categories have been classified with respect to the hours required to complete the job. Therefore, the public institution declares different lists or a sequence of pairs of labor hours and wage rates. Moreover, the list is stochastic, because the list can be changed by the inclusion of an offer from the market as well. The labor has to select from the list. The challenge on the part of the public institution is to prepare the list in such a way so that the inclusion of the market offers will not distort the equilibrium of the coordination game. An important method has been proposed here to analyze the ex-post data of job offers so that the preparation of the future sequence of the job offers can be prepared with due care. One objective of the policymaker here is to make a list of job offers in such a way so that the labor supply will be converging to a point and that will not deviate if the wage rate increases further. This objective will make a balance of the distribution of funds between the existing registered labor and the new entrants into the job guarantee schemes.

MGNREGS Performance (2006–21): An Inter-State Analysis

With its several innovative features, the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) is considered to be a game changer for rural India. Assessing the first 15 years of its implementation, this article mainly presents collated key data on its performance in various Indian states and then seeks to explain why some indicators may look less successful in different states. Many factors contribute to variations in MGNREGS performance, but what effects were observed in economically backward states to protect impoverished rural Indians from sinking into distress scenarios? Based on the official figures, the article explores answers for the period of 2006–21.

Impact of COVID-19 on Supply Chains: A Hybrid Trade Credit Policy

The COVID-19 pandemic has affected all sectors of the world’s economy and society. Firms need to have disaster recovery and business sustainability plans and to be able to generate profits in order to develop. Trade credit may be a good way for firms to free up cash flow and finance short-term growth. Extensions of payment will provide firms with low-cost loans under the COVID-19 credit guarantee scheme. Implementation of hybrid trade credit activities has been shown to improve the financial crisis of many firms, and the effects are particularly evident within two-echelon supply chains. An economic order quantity (EOQ) model is derived under conditions of deteriorating items, an upstream full trade credit or cash discount, and downstream partial trade credit in a supply chain. A computer program is developed to provide a numerical solution and a numerical example is used to show the solution’s form and verify that the solution gives the minimum total cost per unit time.

Financial Performance of Mahatma Gandhi National Rural Guarantee Scheme in Tamilnadu

Mahatma Gandhi National Rural Employment Guarantee Scheme is one of the national scheme implemented for the people who lives under poverty line. Through this plan many people are benefited especially women benefited lot. The present study shows the performance level in Tamilnadu on fund allotment, actual expenditure, job card issue, physical progress regarding financial and physical progress has been analyzed. The study also suggest by increasing the fund the number of working days for the workers can be increased and participation of the workers will also be increased through this many people under the poverty line will be benefited. We initiate that the experiences of participating in MGNREGA varied depending on how MGNREGA wages compared to market wages in the region, as well as local performance of the program. Although MGNREGA offered some basic employment for marginalized groups, it did not provide extensive help to the most susceptible. However, there was some data of small but important shifts in labour relations. Higher wages, more opportunities for work, improved performance and a greater recognition of the care giving responsibilities of women will be required for this policy to fully meet its goals.

Determinants of Participation in MGNREGS: Evidence from Haryana

The aim of the study was to identify various factors determining the probability of participation in the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) at both the household and individual worker levels. The study was based on the primary data collected through a primary survey from the selected district of Haryana. The logistic regression model was applied to analyse the data. The results revealed that there was a significant and negative effect of land ownership and the age of the head of the family on the likelihood of participation in the MGNREG scheme at the household level. In the case of individual worker level analysis, it was found that the probability of participation in the scheme significantly declined with the increasing education level of the individual worker. Further, it was also evident from the analysis that the MGNREG scheme favoured female participants as they had a higher probability of participation in the scheme than males.

European banking sector and bank lending amid COVID-19

The unprecedented economic impact of the COVID-19 pandemic might also have a negative impact on banks. Banks in the euro area play an important role as the main source of external financing for the private sector. Hence, the negative impact of COVID-19 could translate into both deeper economic contraction and hinder banks’ ability to finance the post-pandemic economic recovery. Therefore, this study provides a review of the bank lending and banking sector situation in the first year of the pandemic. It presents changes in bank lending and conducts a descriptive analysis on the following main potential determinants of bank lending growth during the pandemic: bank lending supply and demand, public sector lending guarantee schemes and monetary policy easing. It also describes how the overall situation of the banking sector was influenced and the perspectives for the medium term. The descriptive analysis is complemented with a simple econometric analysis on the determinants of bank lending across the euro area countries.

COVID-19 and regional solutions for mitigating the risk of SME finance in selected ASEAN member states

The main objective of this paper is to identify the determining factors of the optimal credit guarantee ratio in four members of the Association of Southeast Asian Nations (ASEAN), namely Indonesia, Singapore, the Philippines, and Malaysia, by employing statistical techniques and the Vector Autoregressive (VAR) approach. The empirical findings prove that the loan default ratio is the optimal credit guarantee ratio’s main determining factor. The empirical findings confirm that the credit guarantee ratio needs to be increased in the ASEAN region to help SMEs survive in the wake of the COVID-19 pandemic and for the post-COVID-19 economic recovery. The results show that the credit guarantee ratio should vary for different countries based on the macroeconomic climate and for each bank or, in other words, for groups of banks with similar financial soundness. The practical policy recommendations are establishing a regional credit guarantee scheme (RCGS) and evaluating banks’ soundness for setting the optimal credit guarantee ratio.