Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Monday, 11 May 2020

MGNREGA : Can it morph into UBI ?




UBI = Universal Basic Income



Following are data from MGNREGA website ( for 2020 - 21 ) :


Ø  Active Workers  …………………. 11.66   crore
Ø  Person-days Generated………..10.89  crore
Ø  Households Benefited…………    0.91  crore
Ø  Individual Category works…..    1.32  crore
Ø  DBT Transactions ………………….  2.32  crore
Ø  Assets created till date…………..  4.94 crore 


For most of the States, current daily wage rates under MGNREGA are around Rs 200 / day , after recent upward revision last month 



How do these compare with government mandated MINIMUM WAGES  ?





 What is the Mandate of Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)?


“ The mandate of the MGNREGA is to provide at least 100 days of guaranteed wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work.”






CONTEXT :

Ø  As a result of lockdown, crores of workers ( mostly in cities ) have lost jobs and wages

Ø  Crores of Migrant workers are trying to return to their native villages in UP-Bihar-W Bengal etc


Ø  Those of these 11 crore who return to their villages , will have NO JOBS / NO WAGES in villages

Ø  Those who are “ Semi-Skilled / Skilled / Highly Skilled “, will not qualify for MGNREGA work !

Ø  Delhi Govt giving ( 2nd month in row ) Rs 5000  to “ poor “ people, is not a permanent solution

Ø  Many states are under pressure to follow Delhi’s example


SOLUTION :


Ø  MGNREGA should be re-named, MGNRUGA ( Mahatma Gandhi National Rural Urban Employment Guarantee Act )


Ø  Besides RURAL households, it should cover URBAN households as well


Ø  Besides “ Unskilled Manual Work “, it must also cover “ Semi-skilled / Skilled “ work as well


Ø  The daily wages payable , must be the “ Minimum Wage “ at the start of each Skill level grade and periodically revised upward, depending upon CPI


Ø  Number of “ Guaranteed Days of Work Employment / year “ should be :

#  Rural Areas ………………….. 300 days ( up from current 100 days )


#  Urban Areas :

          Class II towns ………………… 200 days

          Class I Cities……………………  100 days


Ø  On MGNRUGA website , there will be provision for,


#  Jobless persons to register ( providing full personal data / job locations preferred / Skill level /
     prior experience etc )


#  Companies / Establishments to register , providing full details of vacancies


#  Match-making / Allocation etc



Ø  If an Urban establishment provides work to any of the REGISTERED UNEMPLOYED

      referred by MGNRUGA web site, it will not be required to pay wages ( to those  persons ), for
      periods mentioned above.


      For them, the wages will get paid directly by the Ministry subsidizing , at rates prescribed under
      the Act ( DBT ) . Any wages paid in excess , will have to be borne by the establishment concerned


     This “ Wage Subsidy “ will be available ONLY to those establishments, who install in their
     premises, Mobile-based Attendance System , as described at :


          From BAD to MAD                   [ 01 June 2016 ]

                MAD goes to Mandi                  [ 02 Jan 2020  ]

 

HOW WILL THIS HELP ?


Ø  This modification of Scheme will cover jobless persons, all over India – not only Rural India


Ø  The scheme as it stands now, covers “ works “ related only to ,

             #   Soil and Water Conservation

             #   Ground Water Recharge

             #   Irrigation

             #   Drainage

             #   Plantation

             #   Land……. Etc


           My suggestion will extend the scheme to cover urban offices / factories / shops etc , where millions have

          been rendered jobless due to lockdown



Ø  Current rural schemes have to be monitored by govt officers / panchayat office-bearers, who may lack supervision skills and / or lack “ motivation “ to ensure that each MGNREGA worker puts in honest / hard / productive work, at the end of the day !


             As against this, when organized / profit driven establishments ( in Urban setting ) are supervising such

             workers, productivity of “ Asset Generation “, will be very high !


 



Ø  Because of this Wage Subsidy ( better name it CORONA EMPATHY – so as not to run foul of WTO ) , MSME will revive faster , with less worry for Cash Flow . Products will become cheaper


Ø  By providing jobs and enabling people to earn their own living , there will be no need for Delhi-type “ doles “ – which are unsustainable in long run


Ø  This ( scheme ) overcomes the major objections against UBI ( Universal Basic Income ), viz :


#  How to decide whom ( defining “ poor “ is difficult ), to give UBI


#  People will become too dependent on “ Sarkar Maa-Baap “ and become lazy / stop looking for work


Ø  It is better than the Unemployment Allowance of USA ( now for 33 million persons, sitting at home )


Dear Shri Narendrabhai,



It is time to think about a PERMANENT SOLUTION to this problem of UN-EMPLOYMENT { even beyond COVID }


Please consider my suggestion



With regards,

Hemen Parekh



12 May 2020



1 comment:

  1. Nice suggestion. Hope it gets implemented soon. The plight of labourers across the country is really pathetic.

    ReplyDelete