Comments on India Development Blog: Changes to NREGA -- Latest from the Budget Speech

Increasing NREGA wages will lead to migration of l...

2011-01-31T00:02:39.355+05:30

Increasing NREGA wages will lead to migration of labourers from farms to unskilled nregs works where they get a higher wage. This will lead to shortage of labourers on farms thereby increasing the burden on farmers ultimately leading to food price inflation

2009-10-20T16:02:50.202+05:30

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I BEING STUDENT AM NOT SO MUCH INTO IT BT I FEE...

2009-10-20T16:02:38.553+05:30

I BEING STUDENT AM NOT SO MUCH INTO IT
BT I FEEL THT DEEPAK SARASWANT IS RITE AS THE WAGES MST BE SET IN SUCH A MANNER THT IT BECOMES QUITE COMFORTABLE FR PEOPLE INORDER TO MEET UP WTH EXPENSES .DUE TO INFLATION IT HAS BECOME DIFFICULT FR FOR PEOPLE TO SURVIVE AND MEET THEI EXPENSES LIKE HEALTH,FOOD CLOTHES,SHELTER ETC...

Doug, I think the larger problem is not that UPA ...

2009-07-08T02:07:17.998+05:30

Doug,

I think the larger problem is not that UPA is reneging on campaign promises, but instead that UPA promised such grandiose and populist plans in the first place. I'd be happy to give UPA the backdoor exit in wiggling out of their commitments.

The extension of NREGA to urban workers and then extending the entitlement to individuals VASTLY expands the budget burden... I mean, we're talking about potentially doubling the size of NREGA had UPA followed through on all three campaign pledges (and that's probably a conservative estimate).

NREGA is a beast with multiple channels through which it improves people's lives. Who is to say that it'll work as effectively in the slums of Mumbai as it will work in the arid plains of Rajasthan? Do we even know what aspects of the current NREGA work best (and which might just be a drain on resources)?

When the Indian government is allocating hundreds of crore rupees... should it not make it's decisions based on sound research, rather than populist promises to garner votes?

While I'll admit to not being thoroughly versed in the literature on NREGA, don't you think it's worth learning (and improving) a bit more from what we have, before expanding on such a large scale?

-Michael

Interesting post and comments. A couples thought ...

2009-07-07T23:54:10.080+05:30

Interesting post and comments. A couples thought on Deepak's comments. NREGA pay should be increased if current wages are not enough to keep up with increasing commodity prices. But, if NREGA wages need to be increased to compete with other jobs, such as the tobacco trading option, this is not as important a reason for wage increases.

If people can get good jobs in the private sector, why should the publicly funded NREGA, which is targeting struggling workers that cannot find good jobs, even try to compete?

Nice post doug. I agree on the part that increasin...

2009-07-07T12:29:56.893+05:30

Nice post doug. I agree on the part that increasing wages may have negative effects but still i have some issues which i got when interacting with people involved in ground level implementation in Andhra Pradesh. First is that, Sarpanch of few villages complained that NREGA wages are not increased and in face of increasing commodity prices, it is difficult to make ends meet. Secondly, wage labour is hired for anything between Rs. 200-300 in agricultural season, so even to achieve some threshold level, so as to compare with agri season, NREGA wages have to be increased. In some villages, people have a tradeoff in going for NREGA or doing some work like tobbacco trading, hence to increase participation even in non agricultural season, increasing wages is a smart political move.