MGNREGA and Poverty Alleviation: A Beacon of Hope for Rural India and POVERTY

Introduction:

In the vast tapestry of India's rural landscape, where poverty often casts its long shadow, the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) emerges as a beacon of hope. This transformative program, enacted in 2005, has played a pivotal role in not just providing employment but also in addressing and mitigating the deep-rooted issue of poverty. In this exploration, we delve into the intricate relationship between MGNREGA and poverty alleviation.

Based on the consumption expenditure numbers of national statistical office (nso) report, rural poverty in india went up by 4 percentage between 2011-12 and 2017-18 to 30 percent. In the case of urban poverty, there was a drop seen of 9 percentage at the same time. Although the urban poverty drop is sharper than the increase in rural poverty, overall, the weight of rural area is much greater and hence it increased the overall poverty rate to 23 percent in the year 2017-18. The data and graph can be found below:

India's Poverty Rate in Last few Decades :

Table :1

Estimates till 2011-12 are as reported by a 2013 Planning Commission note on poverty rates. Estimates for 2017-18 are derived estimates from the buried consumption survey report prepared by the NSO, using the inflation- adjusted state-wise poverty lines drawn by the Planning Commission in 2013 based on the Tendulkar committee methodology of estimating poverty.

India's Poverty Rate in Last few Decades :

Figure : 1

Although one may be inclined to think that the slight increase in poverty rate is insignificant, but it is important in many ways. This slight increase deftly masks important inter-state disparities which an analyst must pay attention to. It is evident from the data presented in table 4 that many states in the east and north-east have observed a sharp rise in poverty in last few years. Some of the southern states, except Karnataka, managed to push down the poverty rates.

Change in Poverty Ratio :

Table : 2

Table : 2.1

If we compare the large states, it was Bihar which saw the sharpest rise in poverty between 2011-12 and 2017-18. In this state, the poverty rate went up by 17 percentage to 50.47 percent. After Bihar, Jharkhand saw rise of poverty rate by 8.6 percentage and Odisha saw the rise of poverty rate by 8.1 percentage. More than 40 percent of both Jharkhand and Odisha fall below the poverty line. Among the states which performed fairly well, West Bengal saw poverty rate fall of 6 percentage and Gujarat and Tamil Nadu saw poverty rate fall of 5 percentage each in the period between 2011-12 and 2017-18. Among the well-off states.

Maharashtra saw the biggest increase in poverty over the same period :

MGNREGA reduced poverty by up to 32 per cent and prevented 14 million people from falling into poverty, a study by the National Council of Applied Economic Research (NCAER) and University of Maryland using data from 26,000 rural households through two rounds of survey conducted in 2004-5 and 2011-12 found.

Conclusion:

In the grand narrative of poverty alleviation, MGNREGA stands out as a chapter of progress, empowerment, and transformation. By providing not just jobs but a pathway to economic dignity, the program has kindled a ray of hope in the lives of millions in rural India. As MGNREGA continues to evolve, it remains a testament to the idea that, given the right opportunities, communities can break free from the clutches of poverty and script their own journey towards prosperity.