How to Alleviate Urban Poverty

Context :

Govt considering series of measures to boost economy    /   11 Sept 2020

Extract :

Ø  The fourth person said the government is focusing on inclusive economic growth. “A large part of the ₹20 lakh crore stimulus package announced in May was focused on providing relief to the poor.

It has immensely helped the rural poor, especially with their active involvement in

MGNREGS [Mahatma Gandhi National Rural Employment Guarantee Scheme].

    

There is a thinking that a similar employment guarantee scheme could be framed for

the urban poor,” added this person

     

Ø  DK Aggarwal, president at the PHD Chamber of   Commerce and Industry

    (phdcci@phdcci.in ),

     said…..

“ Urban poor have been significantly impacted due to... Covid-19 and therefore require notable policy attention. At this juncture, similar scheme(s) on the lines of MGNREGS would go a long way to provide employment opportunity to the urban poor, sustenance income in their hands along with social safety ”

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Some 4 months ago , I sent following E Mail to Cabinet Ministers / NITI Aayog :

MGNREGA : Can it morph into UBI ?  ………………………………………[ 11 May 2020 ]

Extract :

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

      

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 !

      

 { Read : https://myblogepage.blogspot.com/2017/11/discovering-obvious.html  }

         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 )

           

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Then, 6 weeks later, I found the following news report :

Jharkhand plans NREGA-like scheme for urban poor   /   June  21,  2020,  

   Which made me send following E Mail to Cabinet Ministers :

Urban Poor : Existence Admitted ! ……………………………………………………..[ 21 June 2020 ]

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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

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With regards,

Hemen Parekh / hcp@RecruitGuru.com  /  11 Sept 2020