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