1 Introduction
MGNREGA is recognized as an ecological act that creates sustainable development
through regeneration of the natural resources. The National Rural Employment
Guarantee Programme (NREGP) in India has completed over nine years of implementation. In October 2009, the programme was renamed as Mahatma Gandhi
National Rural Employment Guarantee Programme (MGNREGP), on 140 birth
anniversary of Mahatma Gandhi. The Act for rural India was passed by the government in 2005 and implemented initially in 200 backward districts in 2006. The
Act guarantees 100 days of work to rural households who undertake unskilled
manual work, with 33 % of all workdays reserved for women workers. The
objectives of the programme as stated in the guidelines are to enhance livelihood
security while producing durable assets, empowering women, reducing distress
migration and promoting social equity. The programme has certainly created additional work—in the financial year 2008–2009, 45.1 million households were provided employment under this programme and 2163 million person days of work was
created. Women’s participation in this programme has been generally high on the
average and increasing, though there are state level variations. This large participation by women is important in itself, and different in magnitude from previous
public works programmes in India. The MGNREGA was motivated by the fact that
India’s recent economic growth had not reached large sections of the rural population and that this urban-based growth was deepening divisions in the economy and
society. The 90s were termed as a period of ‘job-less growth’ as high GDP growth
rates failed to generate adequate employment opportunities. In fact, during the mid to
late 90s (1993–1994 to 1999–2000) when annual GDP growth rates increased and
stood at over 7 % per annum, employment growth rate declined and was only a little
over 3 % per annum. While the share of the agricultural sector in total employment is
reducing, albeit at a low pace, over half of the entire labour force is still engaged in
agriculture. But agriculture contributes to less than a quarter of GDP, and is characterized by low productivity and low earnings leading to significant working
poverty in rural areas. In 2004–2005, the numbers of poor workers in rural India was
estimated to be over 74 million (NCUES 2007). A large share of women workers,
especially, works in the agriculture sector. Distress migration from rural to urban
areas has been a major phenomenon. But it has failed to create growth and enhance
productivity in all sectors as expected in a Lewis kind of model and instead contributed to large informal sectors in urban areas and urban working poverty.
Inequality as measured by consumption/expenditure distribution, has risen during
1993–1994 to 2004–2005, and this has widened disparities between the urban and
rural areas as well as within urban and rural. It is therefore important to understand
and analyze if and to what extent participation in MGNREGP benefits women
workers and reduces labour market inequalities between women and men (Dasgupta
& Sudersan, 2011). Financial inclusion, with a focus on rural areas, has been one of
the Reserve Bank of India’s (RBI’s) main priorities since 2005. The RBI’s plan
includes provision of banking services to habitations with a population of 2000 and
316
S. Gawai and V. Sen
MGNREGA is recognized as an ecological act that creates sustainable development
through regeneration of the natural resources. The National Rural Employment
Guarantee Programme (NREGP) in India has completed over nine years of implementation. In October 2009, the programme was renamed as Mahatma Gandhi
National Rural Employment Guarantee Programme (MGNREGP), on 140 birth
anniversary of Mahatma Gandhi. The Act for rural India was passed by the government in 2005 and implemented initially in 200 backward districts in 2006. The
Act guarantees 100 days of work to rural households who undertake unskilled
manual work, with 33 % of all workdays reserved for women workers. The
objectives of the programme as stated in the guidelines are to enhance livelihood
security while producing durable assets, empowering women, reducing distress
migration and promoting social equity. The programme has certainly created additional work—in the financial year 2008–2009, 45.1 million households were provided employment under this programme and 2163 million person days of work was
created. Women’s participation in this programme has been generally high on the
average and increasing, though there are state level variations. This large participation by women is important in itself, and different in magnitude from previous
public works programmes in India. The MGNREGA was motivated by the fact that
India’s recent economic growth had not reached large sections of the rural population and that this urban-based growth was deepening divisions in the economy and
society. The 90s were termed as a period of ‘job-less growth’ as high GDP growth
rates failed to generate adequate employment opportunities. In fact, during the mid to
late 90s (1993–1994 to 1999–2000) when annual GDP growth rates increased and
stood at over 7 % per annum, employment growth rate declined and was only a little
over 3 % per annum. While the share of the agricultural sector in total employment is
reducing, albeit at a low pace, over half of the entire labour force is still engaged in
agriculture. But agriculture contributes to less than a quarter of GDP, and is characterized by low productivity and low earnings leading to significant working
poverty in rural areas. In 2004–2005, the numbers of poor workers in rural India was
estimated to be over 74 million (NCUES 2007). A large share of women workers,
especially, works in the agriculture sector. Distress migration from rural to urban
areas has been a major phenomenon. But it has failed to create growth and enhance
productivity in all sectors as expected in a Lewis kind of model and instead contributed to large informal sectors in urban areas and urban working poverty.
Inequality as measured by consumption/expenditure distribution, has risen during
1993–1994 to 2004–2005, and this has widened disparities between the urban and
rural areas as well as within urban and rural. It is therefore important to understand
and analyze if and to what extent participation in MGNREGP benefits women
workers and reduces labour market inequalities between women and men (Dasgupta
& Sudersan, 2011). Financial inclusion, with a focus on rural areas, has been one of
the Reserve Bank of India’s (RBI’s) main priorities since 2005. The RBI’s plan
includes provision of banking services to habitations with a population of 2000 and
316
S. Gawai and V. Sen