If one sets up a regulatory structure, fraudulent ones will be eliminated and informal networks (family, caste, community, contractors) become large and formalised, ensuring economies of scale and scope in information processing, dissemination and intermediation. The labour ministry’s website mentions a list of 800 such private agencies. As mentioned earlier, these are accused of being city-centric. On June 6, 2004, M.K. Pandhe wrote in People’s Democracy: “However, they collect data only for the organised sector while the vast area of unorganised sector is out of the purview of these exchanges. Moreover, these employment exchanges are only operating in the urban areas and have no centres in the rural areas.” An audit report for People’s Democracy’s favourite state said, “Computerisation of 40 employment exchanges in the state was taken up along with network connectivity and the work was entrusted to the ET & TDC on turn-key basis. However, even after spending Rs 6.52 crore, the computerised system installed in the employment exchanges has been lying inoperative for last 30 to 46 months.”

Contrast this with privately-triggered job melas (or livelihood melas) that have now been happening in several states, Rajasthan being a recent instance. These aren’t city-centric and, as far as one can make out, the government didn’t spend any money. Now that Rajasthan has decided to hand over tourist spots to private management, employment exchanges should follow. Since “R” has gone out of BIMARU, perhaps Rajasthan will teach the remaining ones how to exit too.

The writer is a noted economist

... contd.