Volume: 9, Issue: 1
INTRODUCTION
The National Rural Employment Guarantee Act 2005, or NREGA, was brought into force by the Union government in February 2006. The Act is far-reaching in its intent and scope. It is the first nation-wide employment scheme that guarantees employment legally to India's rural population. Naturally, it has generated intense speculation and interest. The NREGA is being implemented in 200 socio-economically most backward districts of 27 states in the country. It guarantees 100 days of unskilled jobs per rural household. More importantly, the Act aims at eradication of extreme poverty and at making villages self-sustaining through productive assets creation (such as water tanks and soil conservation works). This is meant to regenerate the rural natural resource base, which in turn will result in sustainable livelihoods for residents. The Act puts Panchayati Raj Institutions (the third tier of government in India i.e the village level) at the helm of affairs, beginning with identifying the eligible households to planning the works to be undertaken. The government has referred to it as an "Act of the people, by the people, and for the people". But is the Act living up to its scope and potential? the NREGA faces a two-pronged challenge: the immediate one of addressing the skyrocketing unemployment crisis in rural areas, and a longer-terr)1 one of contributing to village economy in a sustained manner. Effective implementation of the Act would require planning labour-intensive works for the needy poor on a continuous and sustained basis. These works must build the right kind of assets to promote development of local/regional economy. To ensure that the impact of the Act is sustainable and lasts over the longer term, these assets must be managed well and in an equitable way to generate benefits for the poor, as well as to promote pro-poor economic growth. In this context, the NREGA should be seen more as a livelihood generating programme than a wage-earning scheme. It also offers a unique opportunity to turn around rural development. This Act is an important step towards the realization of the right to work. It is also expected to enhance people's livelihoods on a sustained basis, by developing the economic and social infrastructure in rural areas. The choice of works seeks to address the causes of chronic poverty such as drought, deforestation and soil erosion. Effectively implemented, the employment generated under the Act has the potential of transforming the geography of poverty. NREGA calls for the formulation of a Rural Employment Guarantee Scheme (REGS) by each State Governments within six months of the date of commencement of the Act. The purpose of the Scheme is to give effect to the legal guarantee of work, by providing at least 100 days of guaranteed employment to every rural household whose adult members volunteer to do unskilled manual work subject to the conditions of this Act. Each Rural Employment Guarantee Scheme is required to have the minimum features spe, ified in Schedule I and Schedule II of the Act. Section 4 of the Act also provides that until such a Scheme is notified by the State Government, the Annual or Perspective Plan of the Sampoorna Grameen Rozgar Yojana (SGRY) or the National Food for Work Programme (NFFWP), whichever is in force in that area, shall be deemed to be the action plan for the Scheme for the purposes of the Act.
