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Why NREGS is not a solution

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    His foundation has done more to battle poverty and disease in a decade than most of our state governments have done in 60 years. For a moment in the rarefied air of Davos I thought how easy it would be to solve India’s problems if we looked for the right solutions. But the two-hour drive into Mumbai city reminded me of the enormity of our problems and how far we are from finding the right solutions.

    On the drive I occupied myself by glancing through the newspapers of the past few days and found myself riveted by an article that defended Sonia Gandhi’s favourite economic idea, the National Rural Employment Guarantee Scheme. Some of the jholawala economists who devised the scheme in the first place took it upon themselves to defend it against the Comptroller & Auditor General’s criticism that it is not achieving its purpose.

    This newspaper recently carried extracts of the CAG report that showed that less than three per cent of registered beneficiaries got the promised hundred days of employment a year. The jholawala economists accept that much needs to be done to make the scheme more effective but want the scheme extended to every district in India by the middle of this year. This will surely happen since the scheme has the blessings of Sonia and Rahul Gandhi but if it is, can someone up there please alter it to include skills training? It would make all the difference.

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    In Davos I interviewed Sunil Mittal for a special series of television programmes I am doing on economic reform and he said that the most important reform that we could make now was to train semi-literate Indians in skills. Not just India but the whole world is desperately short of masons, carpenters, electricians, plumbers and other workers of similar kind. If we use the employment guarantee scheme to teach these skills as part of its mission we create a work force that would find employment 365 days a year. The beneficiaries will lift themselves out of poverty and no longer need the sort of charity that the employment guarantee scheme provides.

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    BULLBy: yash | 01-Dec-2008 Reply | Forward This article is mostly bullshit. The government is generally inefficient in most things it does, and despite that, the NREGS has had a phenomenal impact. It has significantly addressed the distress that was leading to massive migration. Now one is seeing a return to villages. It's difficult to find workers in cities! Of course it can be improved, but NREGS is a very important scheme which provides social security that is somewhat similar to the unemployment allowance given in several developed countries.
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