Understanding the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). A Scheme Supporting Economic Development: On Economic Development in Rural India

Academic Paper from the year 2018 in the subject Politics - Topic: Development Politics, language: English, abstract: This paper investigates how the employment generating scheme MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) is different from other employment generating scheme and finds how MGNREGA is supporting economic development by creating community/productive assets at the level of villages. Since 2000, India has experienced rapid economic growth and a sharp decline in poverty. But employment has grown more slowly. Government intervened in the economy through the National Rural Employment Guarantee Act, which provides employment to unskilled workers in rural areas besides creating community/productive assets at the level of village such as wells, tanks, ponds, roads etc. This programme is designed to provide income protection against poverty in rural area. The choice of works under MGNREGA seeks to address the causes of chronic poverty such as drought, deforestation and soil erosion. MGNREGA is different from other employment and poverty alleviation programme in the sense that it is a legal framework and right to work based programme. This is a paradigm shift from its earlier programmes for it is a bottom-up, demand driven structure with built-in social audits.