MGNREGA in the Times of COVID-19 and Beyond: Can India do More with Less?

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MGNREGA in the Times of COVID‑19 and Beyond: Can India do More with Less? Gayathri Vasudevan1 · Shanu Singh1 · Gaurav Gupta2 · C. K. Jalajakshi1

© Indian Society of Labour Economics 2020

Abstract Covid-19 has ushered in a renewed focus on health, sanitisation and, in unexpected ways, on the need for productive employment opportunities in rural India. MGNREGA, the rural employment guarantee programme, has had a mixed track record in terms of providing adequate employment to those who need it the most, the quality of asset creation and adequacy of wages offered. This paper makes a case for reorienting a small portion of MGNREGA spending to create micro-entrepreneurs out of the ‘reverse migrating’ masons, electricians, plumbers and others in rural areas who can directly contribute to augmenting health and sanitization infrastructure in the likely new normal. This will provide relief to those whose livelihoods have been severely impacted and eventually lower dependence on public finances. We propose approval of a new work type for sanitization works without any hard asset creation under MGNREGA and roping in the private sector for its project management skills to quickly skill up the returning migrants as well as to match work with workers on an ongoing basis. Keywords  Job creation · MGNREGA · Migration

* Gaurav Gupta [email protected] Gayathri Vasudevan [email protected] Shanu Singh [email protected] C. K. Jalajakshi [email protected] 1

LabourNet Services India, Bengaluru, India

2

Independent Researcher, Bengaluru, India



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Vol.:(0123456789) ISLE



The Indian Journal of Labour Economics

Fig. 1  Unemployment rate (in %)

1 Introduction In rural areas, major livelihood activities are irregular mainly due to seasonal fluctuations in agriculture and allied activities. This leads to periodic withdrawal from labour force, especially by the marginal labourers, who shift back and forth between what is reported as domestic and gainful work. Many workers migrate to other parts of the country in search of work. Lack of alternate livelihoods and skill development are the primary causes of migration from rural areas. Due to COVID-19 pandemic, India is facing a severe challenge of unemployment and reverse migration (Fig.  1). Migrant workers are heading back to their native places in the hope of sustaining themselves better than they would be able to manage in hostile living conditions in host locations with limited work opportunities. Most migrant workers are daily-wage earners, and absence of work for extended periods makes it difficult to afford high cost of living in urban areas. Added to this is the uncertainty around the timelines for normalization of the current situation. Mahatma Gandhi National Rural Employment Guarantee Act (referred to as MGNREGA1 hereafter) was introduced by Government of India in 2005 to target causes of chronic poverty through the ‘works’ (projects) that are undertaken, and thus ensuring sustainable development for all. MGNREGA is the largest work guarantee pro