Wednesday, August 27, 2008

Carry on....

IIPM Ranked No. 1 B-School In Global Exposre - Zee...

NREGA...with loots & siphoning


India’s perennial dependence on Public Distribution System & NREGA (National Rural Employment Guarantee Act) for poverty alleviation continues, the relentless corruption and historical evidence proving their worthlessness notwithstanding. According to the Ministry of Consumer Affairs, Food & Public Distribution, every year, almost 53.3% of wheat & 39% of rice meant for PDS, finds its way into the illegal market. The much hyped about NREGA scheme is also executed on the same lines. A recent survey by Centre for Environment and Food Security (CEFS) reveals that out of Rs.733 crores spent under NREGA in Orissa, more than Rs.500 crores (almost 75%) has been embezzled by government officials. Moreover, only 26% (Rs.500 crores) of allocated funds (Rs.890 crores) were spent. Most of the job cards were fabricated which led to unemployment for a million poor families. Adding to the misery of these unfortunates, more than 205 projects out of 240 projects under the preview of NREGA in Simdega district of Jharkhand are still on hold.

The problem has never been with funds but with the right kind of application of such funds. Even decentralisation and involving the panchayats didn’t yield the results, except that the panchayat members often end up having five storey mansions. Now how about bidding adieu to the trodden lines and trying options like outsourcing the works of rural development to private entities? After all, e-choupal has been a blockbuster


For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).


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