SOIL Report 2008 - ACCESS Development Services

Chapter VThe CAG report is not alone in unearthing leakages of funds deployed under NREGA. A host of surveysand studies have for various districts thrown up figures ranging from 5 per cent to 85 per cent forthe proportion of worker’s wages that are siphoned by intermediaries (Rao, 2007). A major study (PACS2007) of NREGA also found in two districts that for technical sanctions for the works planned by thepanchayat a ‘fixed rate’ of commission was prevalent for the block-level officials.The Transparency International India-Centre for Media Studies (TII-CMS) Corruption Study 2007 whichstudied corruption faced by BPL households found that nearly one in 10 households had to pay bribes to availof the NREGS −- an estimated 9.65 lakh households.It would appear that a strong effort has to be made to reverse these negative findings and perceptions.Thus, the key message of the CAG report and the future challenge for NREGA is seen to be the needto promote transparency and efficacy through improvements in the technical and administrative infrastructure.nearly one in10 householdshad to paybribes toavail of theNREGS −-an estimated9.65 lakhhouseholds.NREGAmakesdemocraticprocesses andthe rule of lawfundamentalto the strategyfor removal ofpoverty andunemployment.(iii) Strengthening grassroots level democracy: The way NREGA has been framed and the desiredmode of its implementation amounts to no less than a social and political revolution (Ghosh 2008). Institutionsrepresenting grassroots democracy such as the gram sabhas, the assembly of all the electors ina village panchayat, have been empowered to plan, monitor and audit the projects which are implementedunder the programme. Thus NREGA makes democratic processes and the rule of law fundamental tothe strategy for removal of poverty and unemployment.NREGA has the potential not only to generate more employment directly and indirectly but also totransform rural economic and social relations at many levels Besides, it is argued that its success shouldnot be measured solely by using the parameter of employment generation but include others such asfinancial inclusion – 27.1 million bank accounts have been opened in rural areas for wage paymentsunder NREGA – and social security provisioning of informal sector workers that have been enabled byit. It offers an opportunity for the rural poor to stake claim to the fruits of growth (Himanshu, 2008).This can be further facilitated by an autonomous NREGA agency, independent of the bureaucracy, tomonitor the implementation of the scheme.2.2 Swarnajayanti Gram Swarozgar Yojana (SGSY) 9SGSY is a self-employment programme basically aimed at below poverty line (BPL) families. The objectiveof the programme “…is to bring the assisted poor families (swarozgaris) above the poverty line byensuring appreciable sustained level of income over a period of time. For this purpose, the rural poor areorganised into self-help groups through a process of social mobilisation, training and capacity buildingand provision of income-generating assets.Under SGSY the SHG essentially plays two roles. One is the function of financial intermediation tohelp members build up their own financial capital through pooling of savings. The small credit needsthat the SHG provides helps the member families to smoothen cash flows and systematically graduateto higher levels of credit absorption and risk planning leading to betterment in existing livelihoods.The second, and equally important, role that the SHG plays is to strengthen the values of mutual helpand solidarity. At one level, this enhances the members’ self confidence and prepares them for takingcalculated risks, and also organises them to challenge unequal social arrangements and bargain for rightsand entitlements.8www.livemint.com/corruption2008.htm9Case developed by Ajay Tankha and Santosh Sharma. Dr. Amar Singh of Ministry of Rural Development, Government of India and D. Narendranathof PRADAN provided valuable information and insights on SGSY and other rural development programmes.10Swarnjayanti Gram Swarozgar Yojana Guidelines, GoI, MoRD.112