There is a lot of worry regarding the employment guarantee scheme among people concerned about the future of India. It is vitiating the work atmosphere and making prefer idleness to work. It is also spoiling the finances of the nation.
If we consider labour as a commodity, its rate goes down when there is dumping. Labour like airline seats is a perishable commodity and its price drops when there is no demand. There is dumping when there is no demand. There is usually no demand for labour only in select pockets of the country. These districts are prone to large migration.
A tightening of the disbursement and monitoring will definitely help reduce the cost of MNREGA but it will not reduce it fully.
If the Central Government can identify the districts with the poorest prospects of jobs and improve these districts on a war footing, then this would reduce migration. This could in turn drive rates of labour in other states much higher and make labour rates far above MNREGA rates. In short, it would have a very amplified impact on the labour markets. For example, improving electricity, law and order and creating of Industrial estates in poorest districts of West Bengal, Orissa, Bihar and UP will drive up wage rates all over the country especially in Tamilnadu, Karnataka, Delhi, Punjab and Maharashtra.
This could reduce MNREGA substantial in an elegant manner at least in the richer states.
If we consider labour as a commodity, its rate goes down when there is dumping. Labour like airline seats is a perishable commodity and its price drops when there is no demand. There is dumping when there is no demand. There is usually no demand for labour only in select pockets of the country. These districts are prone to large migration.
A tightening of the disbursement and monitoring will definitely help reduce the cost of MNREGA but it will not reduce it fully.
If the Central Government can identify the districts with the poorest prospects of jobs and improve these districts on a war footing, then this would reduce migration. This could in turn drive rates of labour in other states much higher and make labour rates far above MNREGA rates. In short, it would have a very amplified impact on the labour markets. For example, improving electricity, law and order and creating of Industrial estates in poorest districts of West Bengal, Orissa, Bihar and UP will drive up wage rates all over the country especially in Tamilnadu, Karnataka, Delhi, Punjab and Maharashtra.
This could reduce MNREGA substantial in an elegant manner at least in the richer states.
Who will bell the cat?
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