MANAGING THE EXODUSGrounding Migration in India
MANAGING THE EXODUSGrounding Migration in India
TITLE                                   Managing the Exodus: Grounding Migration in IndiaAUTHORS &CONTRIBUTORS            ...
Foreword ForewordForewordForewordIndias population is primarily rural, and much of its economic growth is mainly in the ci...
Contents Contents Contents Contents   Preface                                                                5            ...
Preface Preface Preface Preface PrefaceIndias tremendous economic growth in recent years, as well as its renewed efforts a...
Preface Preface Preface Preface Preface   As Brazilian education theorist Paulo Freire said, education is the key tool for...
Chapter 1: Migration in India1.1       IntroductionIndias economic growth in its urban centers has captivated the attentio...
India. The share of rural to rural migration, however, has been on the decline, dropping from the level of 62%       in 19...
Marriage accounts for more than half of the migrants. Though this hold true more in the case of females aswomen migrating ...
Chapter 2: Urbanization & Migration-A birds eye view2.1      UrbanizationUrbanization is the physical growth of rural or n...
uniform criteria by the states in identifying urban centers, therefore resulting in high annual growth rates. Overthe year...
agricultural workforce in identifying urban centers and a more liberal definition of urban agglomeration areresponsible fo...
drinking water facilities in unhygienic conditions, if at least 20 households lived in that area. In 1981 nearly 28       ...
Caste, kinship bonds, and other kinds of village networks do help rural job seekers to arrange urban based jobs. Inthe fac...
Chapter 3: Grounding Migration-Protectionof Migrant Workers3.1       Social & Economic ProtectionThe goal of assuring sust...
because they are dynamic, evolving and their aims are specific to the subject at hand – creating educational,healthcare so...
Development                 Government                     Descriptions                       Government Ministry     Sect...
Gaps: There is scope for greater integration                                                                   Civil socie...
2) Out of 90 infrastructure projects committed for completion before December 2008, 28 projects reported       satisfactor...
never enrolled and drop out children in                                                      Civil society & public partne...
Although the government of India has introduced rigorous structural                    Civil society parallel intervention...
economically useful public assets. Under this scheme the Government of India will pay the prevailing minimumwage rate dire...
of private contractors is strictly prohibited and guaranteeing minimum wage to each household. This scheme hasso far provi...
funds do not have a system of registration, but they do require identity cards to be issued by employers. Thewidespread no...
3.3.5         Legal & Political RecognitionThe Multipurpose National Identity Card (MNIC) waslaunched in 2002 by the Minis...
and the private sector can scale up urban slum mapping to ensure all habitants are accounted for and providedwith ration c...
subhuman conditions of the slums, onpavements, settlement colonies, labor             Civil society, public and private pa...
Managing the Exodus: Mitigating Migration in India
Managing the Exodus: Mitigating Migration in India
Managing the Exodus: Mitigating Migration in India
Managing the Exodus: Mitigating Migration in India
Managing the Exodus: Mitigating Migration in India
Managing the Exodus: Mitigating Migration in India
Managing the Exodus: Mitigating Migration in India
Managing the Exodus: Mitigating Migration in India
Managing the Exodus: Mitigating Migration in India
Managing the Exodus: Mitigating Migration in India
Managing the Exodus: Mitigating Migration in India
Managing the Exodus: Mitigating Migration in India
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Managing the Exodus: Mitigating Migration in India


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India's economic growth in its urban centers has captivated the attention of the world, fuelling the country's consistent GDP growth per annum, attracting a host of multinational corporations and propelling the rise of domestic giants. The country's capability to attract and retain the well educated diaspora and domestic workforce has certainly increased with plenty of jobs to go around. However, current media interest in the economic growth of urban centers is overshadowing progress being made in rural India. As a result, with the prospect of greater and more lucrative job opportunities in urban centers, a significant proportion of the rural population moves to the cities and continue to do so, contributing to the significant jump in city populations and densities, thus putting a strain on inadequate infrastructure and denying migrants access to basic social services

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Managing the Exodus: Mitigating Migration in India

  1. 1. MANAGING THE EXODUSGrounding Migration in India
  2. 2. MANAGING THE EXODUSGrounding Migration in India
  3. 3. TITLE Managing the Exodus: Grounding Migration in IndiaAUTHORS &CONTRIBUTORS Nitin Sukh, Senior Manager, Responsible Banking, YES BANK Limited Rita Soni, Country Head, Responsible Banking, YES BANK Limited Dr. Debolina Kundu, Associate Professor, National Institute of Urban AffairsCOPYRIGHT No part of this publication may be reproduced in any form by photo, photoprint, microfilm or any other means without the written permission of YES BANK Ltd.DISCLAIMER The information and opinions contained in this document have been compiled or arrived at from sources believed to be reliable, but no representation or warranty expressed is made to their accuracy, completeness or correctness. This document is for information purposes only. The information contained in this document is published for the assistance of the recipient but is not to be relied upon as authoritative or taken in substitution for the exercise of judgment by any recipient. This document is not intended to be a substitute for professional, technical or legal advice. All opinions expressed in this document are subject to change without notice Neither YES BANK Ltd., nor other legal entities in the group to which it belongs, accept any liability whatsoever for any direct or consequential loss howsoever arising from any use of this document or its contents or otherwise arising in connection herewith.CONTACT ADDRESS YES BANK Ltd Registered and Head Office Northern Regional Office 9th Floor, Nehru Centre, 48, Nyaya Marg, Chanakyapuri, Dr. Annie Besant Road, Worli, New Delhi 110 021, INDIA Mumbai - 400 018, INDIA Tel: 91 11 66569000 Tel: 91 22 66699000 Fax : 91 11 41680144 Fax: 91 22 24974088 AMERICAN INDIA FOUNDATION (AIF) NATIONAL INSTITUTE OF URBAN AFFAIRS India Office Core 4B, India Habitat Centre, C-17 Green Park Extension Lodhi Road, New Delhi 110 016 New Delhi 110003, India Tel: 91 11 46118888 Tel: 91 11 24643284/24617517 Fax: 91 11 46118890 Fax: 91 11 24617513Girls work with confidence in a school located Cycle rickshaw drivers show off their passports for Members of SwachhDhara, a worker-owneddirectly in their neighborhood of Amagarh, a slum financing their rickshaw. (Centre for Rural enterprise, fulfill a city government contract byarea of Jaipur. (Bodh Shiksha Samiti, Rajasthan) Development, Guwahati, Assam) cleaning with dignity. (Nidan, Patna, Bihar)All report photographs by Prashant Panjiar
  4. 4. Foreword ForewordForewordForewordIndias population is primarily rural, and much of its economic growth is mainly in the cities. Thelimited livelihood options in rural areas and the pull of urban development displaces millions ofindividuals and families in India, uprooting them from social structures. One of the unfortunateconsequences of the migration is the interruption of the education of children who migrate,because it often constrains them to remain within the downward spiral of poverty.This report addresses a paucity of information on the phenomenon of distressed migration, itsspecific relation to the rapid urbanization of India and the growth of slums and the informaleconomy. It gives a comprehensive look at what government, civil society institutions and theprivate sector are currently doing to increase opportunities in rural areas, while mitigating theworst impacts of migration for those who do move to urban India.YES BANK and American India Foundation (AIF) are pleased to collaborate on many of thechallenges faced by people at the margins of the economy. As one of the fastest growingfinancial institutions in the country, YES BANK is committed towards expanding its knowledgebase by forming strategic partnerships for constant innovation and development of financialproducts designed specifically for the upliftment of the urban and rural poor. YES BANK believesthat private sector involvement in Public Private Partnerships (PPPs) can go beyond the realmsof infrastructure project financing. This report identifies tremendous business scope indevelopment project monitoring, technology integration, microfinance, organic farming, skillsdevelopment and training for service sector integration, to name a few areas. The bankingsectors role in the social and economic progression of India will continue to expand as theeconomy grows, opening up avenues for greater public, private and civil society cooperation toproactively address Indias development agenda.AIF has been working on challenges facing communities affected by distress migration since2003. AIFs signature program, LAMP (Learning and Migration Program) has been successful indeveloping models for educating children of migrant workers and has also been influential inshaping the government policy to ensure that these children remain in school. Similarly, in AIFsprograms in livelihoods and public health, migrant workers have been a significant demographicfocus.It gives us great pleasure to present the 2009 Knowledge Report: Managing the Exodus,Grounding Migration in India. This report is a testament to those organizations that are making adifference at the grassroots level, bridging the gaps in government-led programs nationwideand catalyzing Indias overall development. We sincerely believe that along with our partner,the National Institute of Urban Affairs (NIUA), we will create a vibrant dialogue around theseissues and be a part of a transformative journey.RANA KAPOOR SANJAY SINHOFounder/Managing Director & CEO CEOYES BANK Ltd. American India Foundation
  5. 5. Contents Contents Contents Contents Preface 5 Chapter 1: Migration in India 7 1.1 Introduction 7 1.2 Types of Migration 7 1.3 Reasons for Distressed Migration 8 Chapter 2: Urbanization & Migration - A bird’s eye view 10 2.1 Urbanization 10 2.2 Growth of Urban Slums 12 2.3 Rise of the Informal Sector 13 2.4 A Way Forward 14 Chapter 3: Grounding Migration - Protection of Migrant Workers 15 3.1 Social & Economic Protection 15 3.2 Social Protection & Security 17 3.3 Economic Protection & Security 21 3.4 Rural Economic Development 28 Chapter 4: Grounding Migration - The Public Private Partnership Way 32 4.1 Public Private Partnerships 32 4.2 Expanding PPPs for Social Development 32 4.3 Infrastructure Development 33 4.4 Ensuring Access and Service Delivery to the Poor 33 Concluding Remarks 35
  6. 6. Preface Preface Preface Preface PrefaceIndias tremendous economic growth in recent years, as well as its renewed efforts atdevelopment and the broadening of its middle class have rapidly swelled its urban population.Unfortunately, the impact of globalization and the new prosperity have not reached rural Indiain the same magnitude. This success consequently draws the marginalized and rural poor tourban centers where they hope to participate in Indias growth and progress to improve theirlivelihood opportunities, access better healthcare and avail of education options. This distressedurban migration is emerging as one of the key developmental challenges for urban India today.Migrants are disproportionately disadvantaged in the context of urban poverty, urban slums andinformal sector employment1. Additionally, the current infrastructure in Indias tier I & II cities isalready stretched, leaving these cities incapable of supporting the needs of the existingpopulations. By 2021, India will have the largest concentration of mega-cities in the world,with a population exceeding 10 million people. This expansion of the urban population is largelyunplanned and uncontrolled. The marginalized distressed migrants are forced into suboptimalliving conditions where they dont have access to the basic requirements of human existence: ahealthy environment, a sustained livelihood, access to education and healthcare, andparticipation in social and civic life. Figure 1: Making Impossible Choices: The Plight of Distress Migrant CommunitiesNote: Thicker lines indicate more access while thinner lines indicate less access. Civic and social capital refers to socialwebs and civic rights such as voting.The notion of “grounded migration” is to make these basic requirements available to distressedmigrant communities, an important step on the path to empowerment for this marginalizedgroup. It also seeks to offer choices to distressed migrant communities in their source village byhelping develop sustainable and secure livelihoods options so that they are not forced to leavethe civic and social capital which has been built over generations.Programs that uplift and de-marginalize the urban poor through livelihoods assistance andrebuilding civic/social capital are essential to the economic emancipation of Indias urbanmigrants. The insecurities facing rural populations must also be alleviated so that they are notforced to migrate under distress. However, for those migrants who freely choose to migrate,action must be taken to guarantee their basic rights including economic, social, cultural as wellas civil and political rights.1Mitra, Arup, and Mayumi Murayama, "Rural to Urban Migration: A District Level Analysis for India", Institute ofDeveloping Economies, 137 (2008).
  7. 7. Preface Preface Preface Preface Preface As Brazilian education theorist Paulo Freire said, education is the key tool for empowerment. Hence, to help the marginalized retain or regain their political and social capital at either source or destination, improving the education scenario is the only means of halting a downward spiral. For example, civil society is bridging the education gap for the children of distressed seasonal migrants in both rural and urban settings, through a framework that provides educational security at both source and destination for the children of migrants. Financially insecure urban migrants often form the core of the marginalized poor in large urban metropolises. They migrate in hopes of a more secure livelihood, but frequently lose their social and civic capital. For rural migrants, entry into an urban landscape without the assurances of a guaranteed livelihood and residence results in the loss of a broader social identity, and the infringement of their human rights. These poor are marginalized further because of this loss and are thus left wide open to exploitation. It is vital to understand and reduce this marginalization and subsequent exploitation of the urban poor through the development of sustainable livelihood options and providing them access to financial services with which they can develop roots and eventually get assimilated in their new milieu, as productive citizens. This report explores the possibility of further expanding the membership of the Public Private Partnership (PPP) framework to include civil society, namely non-governmental organizations (NGOs) to create a holistic response to the migration phenomenon. For example, the private sector can expand access to financial services, the public sector can promote infrastructure development and welfare programs, while civil society can focus on ensuring delivery and access to all. This framework will uplift and re-arm distressed migrant communities with their social and political rights and responsibilities, to ensure that they have access to services and can make informed choices to guarantee a human existence and an opportunity to attain their fullest productive potential.
  8. 8. Chapter 1: Migration in India1.1 IntroductionIndias economic growth in its urban centers has captivated the attention of the world, fuelling the countrysconsistent GDP growth per annum, attracting a host of multinational corporations and propelling the rise ofdomestic giants. The countrys capability to attract and retain the well educated diaspora and domesticworkforce has certainly increased with plenty of jobs to go around. However, current media interest in theeconomic growth of urban centers is overshadowing progress being made in rural India. As a result, with theprospect of greater and more lucrative job opportunities in urban centers, a significant proportion of the ruralpopulation moves to the cities and continue to do so, contributing to the significant jump in city populations anddensities.Urban poverty and slum growth bring a host of social, civic, environmental and economic challenges to theforefront where the Central Government and society are forced to take reactive measures to tackle the issuesinvolved. Upon this migration, the vast majority of low skilled, illiterate and uninformed segments of the migrantpopulation find themselves unable to assimilate into the organized sector thus forced into working in the informalsector where a vast majority work below the minimum wage level. Without having a true understanding of theirsocial, economic and legal rights, many have been marginalized into residing in the sprawling slums that dotevery Indian citys landscape without the blanket of state sponsored social security to provide some comfort.1.2 Types of Migration Figure 2Migration is defined as the displacement of a person Migrants as per 2001 Censuswho leaves their place of birth or of residence for anotherplace, most often remaining in country. In 2001, 309 30%million persons were migrants based on place of lastresidence, which constitute about 30% of the totalpopulation of the country. This figure indicates anincrease of around 37% from the 1991 census which 70%recorded 226 million migrants. It is estimated that 98 Migrant Population Settled Populationmillion people moved within the country between 1991& 20012.1.2.1 DestinationsThere are four variations of migration depending on where the destination and source are located.1) Rural – Urban: Traditional rural-urban migration exists in India as villagers seek to improve opportunities and lifestyles. This has shown a gradual increase, with its share in total migration rising from 16.5% to 21.1% between 1971 and 2001.2) Urban – Urban: There has been slight increase of urban to urban migration from 13.6% to 14.7% over three decades (1971-2001).3) Rural – Rural: According to the 2001 census data, rural to rural migration has been the most dominant. In 2001, rural to rural migration (during the last decade) has accounted for 54.7% of total migration within2 Study on Internal Migration and regional disparity, 2002. 7
  9. 9. India. The share of rural to rural migration, however, has been on the decline, dropping from the level of 62% in 1971. Females constitute a significantly higher proportion of rural ward migrants mainly on account of marriage.4) Urban – Rural: It is not that only rural to urban migration is prevalent. Though unnoticed, the last decade the urban to rural migration figure stands as 6.2 million people, i.e. approximately 6% of the population that moved between 1991-2001.1.2.2 DurationsThe duration for how long a migrant stays at his/her destination is subject to personal and economiccircumstances and it falls into three broad categories:1) Temporary/seasonal2) Semi-permanent3) Permanent1.2.3 EconomicsSeasonal migration has long been practiced in the rural areas, particularly among landless laborers and marginalfarmers with limited livelihood options. Often times it begins with male members of the family going out of theirvillages to work, returning when the employment is complete due to seasonal and market related reasons.However with extensive labor brokerage networks which often exploit the migrants especially through unfaircredit terms, families fall into a downward spiral and find more members of the families migrating to make endsmeet. This form of migration is termed as distressed and is required for the survival of the entire family. It is thismigration that requires grounding such that basic needs can be met.1.3 Reasons for Distressed MigrationAlthough the subject of migration is complex, it is vital to understand the triggers in order to effectively addressthe phenomenon. According to the Census in 2001, reasons for migration have been classified into seven broadgroups – work/employment, business, education, marriage, moved at birth, moved with family and others.Migration is influenced both by the pattern of development and social structure.There are a number of factors that cause populations to shift: from individual motivations, local economicdegradation and the alluring pull of better prospects in the urban centers. Moreover, numerous studies show thatthe process of migration is influenced by social, cultural and economic factors and outcomes can be vastlydifferent for men and women, for different groups and different locations.According to the National Commission on Rural Labor, focusing on seasonal migration3, uneven development isthe main cause of seasonal migration. Inter-regional disparity, disparity between different socioeconomic classesand the development policy adopted since independence has accelerated the process of seasonal migration. Intribal regions, intrusion of outsiders, the pattern of settlement, displacement and deforestation, are significant todrive the phenomenon of migration.Landless poor, often migrate from economically backward regions for survival4. Livelihood opportunities, itsdearth in the rural and abundance in the urban areas are therefore responsible for the majority of migration.Media exposure and growth of the metros is another reason that allures people to move from rural to urbanareas.3 NSSO Report 1999-2000: Consumption report on rural labor households4 Study Group on Migrant Labor, 1990.8
  10. 10. Marriage accounts for more than half of the migrants. Though this hold true more in the case of females aswomen migrating to the husbands place on marriage is a predominant social custom. Education also plays a partin migration, albeit a small percentage. Natural calamities, terrorism, displacement due to construction etc. havealso been a reason for internal migration and displacement in India.Migration essentially takes place due to either of the above mentioned factors categorized as the Push (reasonsthat cause people to leave their place of residence or origin) or the Pull (reasons that attract people fromdifferent places) factors.The table below presents a glimpse of the various reasons that were included in the census to gauge the migrantpopulation across the years: Table 1: Reasons of Migration Census 1981 Census 1991 Census 2001 National Sample Survey Employment Employment Work/ Employment In Search of employment Education Business Business In search of better employment Family moved Education Education To take up employment / better employment Marriage Family moved Marriage Transfer of service / contract Others Marriage Moved with Birth Studies Natural calamities Moved with household Proximity to place of work Others Any other reason Housing problem Social / Political problem Acquisition of own house / flat Health Marriage Migration of parent / earning member OthersSource: Census of India 1991 & 2001; National Sample Survey Organization (2001) 9
  11. 11. Chapter 2: Urbanization & Migration-A birds eye view2.1 UrbanizationUrbanization is the physical growth of rural or natural land into urban areas as a result of in-migration wheretrickle down effects include the change in density and pressure on administrative services. Urbanization is furtherdefined by the United Nations as, the movement of people from rural to urban areas with population growthequating to urban migration. The UN projects that half of the world population will live in urban areas by the endof 2008.In India, 73 million people in rural areas have migrated from 1991 – 2001; of which 53 million have moved toother villages and 20 million to urban areas – a majority of them in search of work. These figures do not includetemporary or seasonal migration. Migration and urbanization are seen as the direct manifestation of the processof economic development of any country, more so in the era of globalization. Understanding the causes andconsequences of the urbanisation process in terms of the changes in the spatial and temporal distribution ofpopulation and economic activities, along with the success and failures of the interventions by state and otherdevelopmental organizations may be extremely important for any organization, learning from the pastexperiences, evaluating the available policy options and exploring areas of strategic intervention for futureequitable development.A large part of migration and urbanization in Figure 3the less developed countries has historically Number of Statutory Towns and Census Towns,been linked to stagnation of agriculture and 1981, 1991 and 2001lack of sectoral diversification within agrarian 6000 Statutory Townseconomies. This is applicable for India as well. Census Towns 5161 5000 Total Urban CentresThe growth in agricultural production and 4689income has been low, unstable and unequal 4000 4029 3798across regions over the past several decades, 2996 3000 2758resulting in lack of livelihood opportunities inthe rural areas. Further, a low rate of 2000 1693 1271 1363infrastructural investment in the period of 1000structural adjustment – necessary for keepingbudgetary deficits low – has had adverse 0 1981 1991 2001effects on agriculture, resulting in out- Yearsmigration from several backward rural areas.Most migrants are absorbed within the urban Source: Population Census of India, 1981, 1991 and 2001, Paper-2, Rural-Urban Distribution.informal economy. Designing policy optionswhich enable rural people to avail of urban amenities without having to shift to a town and strengthening rural-urban linkages and commutations would also be important measure in addressing the problem of rapidurbanization.2.1.1 Data InaccuracyThe data on urban indicators available from the population censuses has suffered from definitional problems overthe years. For example, the census of 1951 had overestimated the urban population due to non-application of1 2001 Census – Government of India.2 Kundu. Et al. (2007) A Strategy Paper on Migration and Urbanisation in the Context of Development Dynamics, Governmental.Programmes and EvolvingInstitutional Structure in India: A Paper commissioned by United Nations Population Fund (UNFPA).3 American India Foundation (2006) – Locked Homes, Empty Schools.10
  12. 12. uniform criteria by the states in identifying urban centers, therefore resulting in high annual growth rates. Overthe years attempts have been made to standardize the concept of urban centers by laying down clear criteria fortheir identification. Due to the earlier lack of clarity on urban center definitions, the NIUA declares the highestgrowth of urban population in the 1980s is grossly misrepresented. This lack of clarity on urban centerdefinitions is clearly understood in the revelation that between 1991 and 2001 the number of census towns inIndia declined by 330 (refer to graph above) despite all phenomena linked with urbanization increasing over thepast few decades. From a planning and resource implementation point of view, such discrepancies in data areworrying.The incremental urban population during a decade can be decomposed into four categories as follows:(a) Natural increase,(b) New towns less declassified towns (outside the agglomerations),(c) Merging of towns and jurisdictional changes in agglomerations(d) Rural-urban migrationThe NIUA states that the rate of urban population growth over between 1991-2001 stood at 27%,significantly lower than that of previous decades. This phenomena is derived from the fact that the percentage ofmale lifetime migrants fell from 37.5% to 26% in that period and that the intercensal (those shifting residenceduring the last decade) migrant population fell from 23.8% to 11.5%. NIUA attributes the decline in rate of ruralto urban migration on the immobility of the rural poor, the growing assertion of regional and language identityand the diligent implementation of rural master plans.Even though there has been a significant fall in the rate of migration over the decades, it does not rule out thefact that rural-urban migration continues to increase and does contribute to the overall growth of urbanpopulations, therefore creating pressures on urban infrastructure.2.1.2 Growth of Urban India Figure 4The grow th rate (annualexponential) in urban areas Percentage and Growth Rate of Urban Populationduring 1941-51 was extremely in India since 1951high, 3.5% per annum but that 30 % of urban pop to 27.78has been attributed to migration total pop 25.72 Annual Exponential 25 23.34from East and West Pakistan at 19.91the time of partition of the 20 17.29 17.97country which brought in 15massive inflow from across the 10border, largely into towns and 5cities in India. The growth rate 3.47 2.34 3.21 3.83 3.09 2.73declined significantly during the 0 1941-51 1951-61 1961-71 1971-81 1981-91 1991-2001fifties to 2.3%. This may be Yearsattributed to definitional factors Source: Population Census of India, 1981, 1991 and 2001,as the Census of 1961 brought in Paper-2, Rural-Urban Distribution.rigorous applications ofdemographic criteria in identifying urban centers. The growth rate would therefore be considered to be anunderestimate. A growth rate of 3.2% during 1961-71 can be taken to reflect the real urban dynamism in thecountry since the definitional or other exogenous factors affected the growth rates in the 1960s. An all timehigh growth of 3.8% was noted during the seventies. A less rigorous application of criterion relating to non- 11
  13. 13. agricultural workforce in identifying urban centers and a more liberal definition of urban agglomeration areresponsible for this growth. The annual growth rate (exponential) of urban population in India has gone downsince then. It came down to 3.1% during 1981-91 and further to 2.7% during the 1990s.2.1.3 Regional Patterns & State Growth DynamicsThe pattern of urban growth (or urban-rural growth differential) across states during the first four decades sinceIndependence exhibits a negative relationship with the level of economic development (income or consumptionexpenditure in per capita terms, share of industries in state income, agricultural productivity, etc.). Poor statessuch as Orissa, Bihar, Rajasthan and Madhya Pradesh that experienced rapid demographic growth in urban areaswere also those that reported low productivity and high unemployment in agrarian sectors as well as heavypressure on urban infrastructural facilities, suggesting the presence of push factors behind rural-urban migration.The slowing down of out-migration from poor to developed states until the early 1990s, meant that thedisplaced persons from agrarian system sought absorption into urban centers within the respective state.The interdependencies in the development indicators show different development dynamics in the 1990s. Theurban growth exhibits positive correlation with indicators of infrastructural and economic development both inrural and urban areas, and negative relation with poverty. The states that are experiencing low or no growth infarm and non-farm productivity, high unemployment, severe malnutrition, etc. are reporting sluggishurbanization. In contrast, most of the cities and towns in developed states have experienced rapid demographicgrowth. Understandably, cities in developed states are not getting their migrants driven by natural, social oreconomic calamities but those who have higher levels of skill or economic assets and who find it easier toestablish linkages with the economy of the large cities through socio-cultural channels and avail the“opportunity” offered through migration8.2.2 Growth of Urban SlumsA slum is defined by substandard Figure 5: Percentage of Urban population living in slums by state in 2001housing with insecurity of tenureand the absence of one or moreurban services and infrastructuresuch as sewage treatment,plumbing, clean water, electricityor paved roads etc9. Urban areasnotified as slums by respectivemunicipalities, corporations, localbodies or developmentauthorities were treated asnotified slums. A non-notifiedslum is a compact urban areawith a collection of poorly builttenements, mostly of temporarynature, crowded together usually Source: Census 2001, Government of Indiawith inadequate sanitary and8 Kundu. Et al. (2007) A Strategy Paper on Migration and Urbanisation in the Context of Development Dynamics, Governmental.Programmes and Evolving Institutional Structure in India: A Paper commissioned by United Nations Population Fund (UNFPA).9 Davis M. (2006) – Planet of slums, the monster at our door: The global threat of Avain flu and ecology of fear.12
  14. 14. drinking water facilities in unhygienic conditions, if at least 20 households lived in that area. In 1981 nearly 28 ,million people lived in slums, in 1991 there were 45.7million slum dwellers and as per 2001 Census data, thereare 40.6 million people living in slums. It is suspected that this decline is on account of an underestimation of thenumber of people living in the urban slums.2.2.1 Select 2002 Statistics10• National averages suggested that about 205 households live in each notified slum and 112 in each non- notified slums.• The total number of slums in urban India are approximately 52,000 with 51% of the slums being notified slums.• It is estimated that every seventh person living in the urban areas is a slum dweller.• About 65% of slums are built on public land, owned mostly by local bodies, state government etc.• Maharashtra has the highest number of urban slums in the country totaling 173 – 113 notified and 60 non notified2.2.2 Inadequacies of Urban SlumsNewly arrived migrants lack the luxury of living in a notified slum or a pucca (semi permanent) structures unlessthey have a well established contact or relative living in one. This particular class of migrants faces the indignityof living in kutcha (non-permanent) structures which neither fall in the category of notified nor non-notifiedslums. Due to their lack of recognition as being residents of recognized slums, these migrants are at the mercy ofthe municipal authorities or the private land owners who own the land on which the migrants are squatting.Corruption and bribery allow these migrants to continue their stay, an unnecessary financial burden to those withan uncertain future. Rather than the state and its agencies, it is contractors, middlemen, power brokers andpoliticians who exercise exclusive jurisdiction over migrants. They exercise authority over their living and workingbeing able to hire and fire them at will.Social inadequacies faced by all types of slums:1) Access to education 2) Policing and crime management3) Domestic violence and abuse 4) Healthcare clinics5) Price premium for basic amenities (e.g., food, housing)Infrastructural inadequacies faced by both non-notified and notified slums:1) Lack of approach roads 2) Water supply infrastructure3) Drainage 4) Sewerage5) Food distribution centers 6) Garbage disposalThe lack of basic infrastructure inevitably leads to the emergence of social issues which includes:1) Illiteracy – leaving children susceptible to exploitation 2) Domestic violence3) Alcoholism and drug addiction 4) HIV/STD transmission5) Malnutrition2.3 Rise of the Informal SectorIndias slums operate as micro-economic hubs where small scale production and consumption takes place on adaily basis. A vast majority of migrants who come with the intention of finding employment in the urban areasare faced with the grim reality of a lack of steady paying and dignified jobs in the organized sector, especially ifthe migrants are unskilled. Furthermore, being illiterate makes one susceptible to exploitation in the urbanscenario especially with regards to employment or micro enterprise development, falling prey to illegalcontractors and criminal elements.10 2002 NSSO Report – Condition of Urban slums in India. 13
  15. 15. Caste, kinship bonds, and other kinds of village networks do help rural job seekers to arrange urban based jobs. Inthe face of a high natural growth of population, rural to urban migration aggravates the situation of excesssupplies of labor in the urban areas. In the urban informal sector, this tends to reduce the level of earnings and getmanifested in a high incidence of urban poverty. In essence rural poverty is transformed into urban poverty – aphenomenon described as the urbanization of poverty, thus leaving migrants with little economic choice but toassimilate into the burgeoning populations of the slums.The informal sector, by contract, consists of firms which obtain labour at the free market wage where they arealso characterized by ease of entry. The informal sector is not a passive absorber of labor, but rather a dynamicsector responding successfully to changing demand in the economy and contributing significantly to income andoutput growth.One of the major distinctions between the formal and informal sector is the ability of labor to organize.The growth of the informal sector and the credit markets, i.e. moneylenders and loan sharks, within it pose afinancial risk to the country as the money flowing through these systems is unaccounted, termed as blackmoney which makes it virtually impossible for the state to earn taxes from this form of economic activity. Thecomplete eradication of the informal economy is not a solution to the problem either since that will extinguishthe limited livelihood options available to the bottom of the pyramid migrants.Informal industries which usually provide employment and business opportunities to bottom of the pyramidmigrants and workers include11.1) Construction2) Low-skilled formal manufacturing3) Civic service – Waste collection and sorting4) Transport, storage and facilitation communications (courier services)5) Domestic help, home security and chauffeuring6) Manufacturing, processing, servicing2.4 A Way ForwardIn India, though rural-urban migration has been found to be modest in comparison to rural-rural migration, in thecontext of urban poverty, urban slums, and informal sector employment a great deal has been talked in referenceto rural-urban population mobility.To make a sustainable difference in the lives of migrants around India, a two pronged approach which addressesmultiple problems is proposed, at the source of migration (rural areas) and its destination (urban areas). Theinsecurities facing rural populations must be alleviated so that they are not forced to migrate under distress.Forging public private partnerships for the private sector and civil society to work with the Indian government toaddress the social, environmental and civic impacts of migration will be a positive move towards groundingmigration, where all stakeholders can jointly work towards creating the social and economic infrastructureneeded to facilitate the movement of migrants without them loosing their social and political identity. Ratherthan an ailment, rural to urban migration is a boon to the economy since it brings forth the possibilities of costeffective and productive manpower to fuel industrial and service sector growth, employment, micro enterprisegeneration, cultural and national cohesion. The inclusive growth paradigm paves a way forward for the holisticgrowth and development of India.11 Bhattacharaya P.C. (1996) – The role of the informal sector in structural transformation: Some Indian evidence, Journal ofInternational Development, Vol. 8, No.1.14
  16. 16. Chapter 3: Grounding Migration-Protectionof Migrant Workers3.1 Social & Economic ProtectionThe goal of assuring sustainable livelihoods plays an active role in the social and economic protection policy ofIndia. A comprehensive social and economic protection policy contains 3 broad categories:1) Promotional measures that aim at improving endowments, exchange entitlements, real incomes and social consumption2) Preventative measures that seek to avert deprivation3) Protective measures to provide relief from deprivationAlthough the role of the state in providing social security has been diminishing, it is still the most importantinstitutional mechanism to deliver social protection. The growing role of the markets in the provision of certainminimum needs cannot be brushed aside. However, besides the state and the markets there is a thirdinstitutional mechanism that is playing a major role in delivering social protection, civil society – comprising ofindividuals, social networks, non-governmental and member based organizations. Figure 6: Social Protection for workers in the informal economy Insecurities Sources of Insecurities Social Protection CORE NEEDS BASIC NEEDS ECONOMIC NEEDS STRUCTURAL STRUCTURAL FOOD EMPLOYMENT AGE SHELTER ACCESS TO CAPITAL CASTE HEALTH NEW MARKETS GENDER EDUCATION LEGAL RECOGNITION BASIC INSECURITIES BASIC INSECURITIES ACTIVITY STATUS VOICE REPRESENTATION FOOD EDUCATION LEVEL SHELTER INCOME / ASSET DIST. HEALTH LOCATION EDUCATION INSTRUMENTS INCOME BASIC ECONOMIC LIFE CYCLE PDS-FOOD RURAL WORKS PROG. INSURANCE EMPLOYMENT BENEFITS ECONOMIC INSECURITIES ECONOMIC INSECURITIES SCHOLARSHIPCREDIT EMPLOYMENT SHOCKS PENSION ORGANIZATION CAPITAL ECONOMIC NATURAL TRADING CORPORATION DEMAND LOSS OF JOB DROUGHT LEGISLATION SKILL DEMAND CROP FAILURE LEGAL RECOGNITION PRICE RISE CYCLONE SOCIAL EXP. EARTHQUAKE DEATH INSTITUTIONAL MECHANISMS INSTITUTIONAL MECHANISMS CIVIL SOCIETY / SOCIAL NETWORKS MEMBER -BASED ORGANIZATIONS MARKETS GOVERNMENTSource: Unni et al, 200312Before forging public private partnerships to tackle the issues of migration, urbanization and poverty it is essentialto understand the governments positions and the centers policy provisions aimed at tackling these issues. Thefollowing sub section will look into the programs initiated by the government and how the work of NGOs eitherfill in the gaps of these programs or work with the government to ensure efficient delivery and effectiveness intarget areas.The Government of India has launched a gamut of programs aimed at tackling the issues of urban and ruralpoverty, livelihood development, and education; therefore those highlighted in this report have been mentioned12 Unni J. & Rani U (2003) – Social Protection for Informal Workers in India: Insecurities, Instruments and Institutional Mechanisms,Volume 34. 15
  17. 17. because they are dynamic, evolving and their aims are specific to the subject at hand – creating educational,healthcare social and economic capital equally in rural and urban India. Table 2 : List of Government Program & Acts working towards social and economic security for the urban and rural poor Development Government Descriptions Government Ministry Sectors Programs and Acts & Department Social Protection & Security Food Public Distribution A national rationing Ministry of Food and System (PDS) mechanism, entitling Consumer Affairs households to essential commodities at subsidized prices. Anganwadis The nodal food distribution Ministry of Women and centers in rural and urban Child Development India for lactating mothers and infants. Shelter & State Slum Provides funding and Ministry of Housing Infrastructure Development Boards upgradation of old housing and Urban Poverty stock. Alleviation Jawaharlal Nehru A government led PPP to Ministry of Housing National Urban address poor infrastructure and Urban Poverty Renewal Mission and lack of basic services for Alleviation (JNNURM) the urban poor. (implemented by Ministry of Urban Affairs) Health Public Health Centers Healthcare facilities open to Ministry of Health (PHC) and socio economic groups Government Hospitals nationwide. Education Sarva Shiksha Abhiyan Government flagship program Ministry of Human (SSA) to achieve the Resources universalization of primary Development - education. Department of Education Economic Protection & Security National Rural Swarna Jayanti A wholesome poverty Ministry of Housing Employment Shahari Rozgar Yojana alleviation scheme covering and Urban Poverty Guarantee Scheme (SJSRY) skills development, business Alleviation (NREGS) advisory, microfinance, self help group development and employment in urban public works. National Rural Minimum wage and Ministry of Labor Employment employment guarantee in for Guarantee Act rural public works.16
  18. 18. Development Government Descriptions Government Ministry Sectors Programs and Acts & Department Minimum Wages Minimum Wages Act A government act to fix Ministry of Labor of 1948 minimum wages annually. Welfare Unorganized sector Providing old age pension, Ministry of Labor workers’ Social Security personal accident insurance Scheme - Employees and medical insurance to the Provident fund unorganised worker’s sector. organization Legal and Political Multi Purpose National Mission to universalize Ministry of Home Recognition Identity Card national identity for every Affairs citizen of India. Ration Cards Critical identity documents Ministry of Food and that allow the urban and rural Consumer Affairs poor to claim commodities from PDCs at subsidized rates. Technical & Industrial Training Vocational and industrial Ministry of Labor Vocational Training Institutes training for those who have passed 10th board exams. Jan Shikshan Sansthan Vocational training for Ministry of Human migrants and the urban/rural Resource Development poor living in slums.3.2 Social Protection & Security3.2.1 FoodThe Public Distribution System (PDS) of the Ministry of Food and Consumer Affairs under the Departmentof Food and Public Distribution is a rationing mechanism that entitles households to specific quantities ofcommodities at subsidized prices. In most parts of the country, PDS is universal and all households, rural andurban, are entitled to rations. According to the budget 2008-2009, the Indian Central Government sanctionedRs. 320,000 million for the Public Distribution System. Overall food security in India is quite high, in spite oframpant poverty. This is true whether one views food security from the macro country level or micro householdlevel. Anganwadis (Ministry of Women and Child Development) are the nodal food distribution centers in 13rural and urban India for lactating mothers and infants. There are an estimated 650,000 anganwadi centersemploying 1.8 million mostly-female workers and helpers across the country. They provide outreach services topoor families in need of immunization, healthy food, clean water, clean toilets and a learning environment forinfants, toddlers and pre-schoolers. They also provide similar services for expectant and nursing mothers.According to government figures, anganwadis reach about 33 million children and 6 million pregnant or lactatingwomen.13 Unni J. & Rani U (2003) – Social Protection for Informal Workers in India: Insecurities, Instruments and Institutional Mechanisms,Volume 34. 17
  19. 19. Gaps: There is scope for greater integration Civil society parallel intervention: Master Choa Kokbetween the Ministry of Food and Consumer Sui Foundation – Ek Muthi AnaajAffairs and the Ministry of Women and ChildDevelopment for the effective allocation of grain Ek Mutthi Anaaj appeals to households to make aand essential food items to anganwadi networks. contribution of just a handful of rice daily. The grain isAlso, the entire distribution system lacks effective deposited in a bucket placed in the homes of the donorsmonitoring processes, leaving gaps for and after a months time, the grain thus collected is sentmalpractice and wastage. Inclusion of innovative to the various hostels where the Feeding Program isfood processing technologies that minimize food being implemented. Through this, EMA seeksprocessing costs and create livelihood options contributions from donors in the form of grain. Thewould also meet the program objectives. Here donors are based in various parts of Delhi. Besidesprivate sector involvement in managing and households, educational institutes and establishmentsstreamlining food supply chains will prove useful have expressed their enthusiasm to start the initiative inand help reduce food wastage, thus keeping their respective establishments. The initiative is inspiredessential commodity prices stable. and motivated by the age-old values of giving and helping. The intent is to ask for minimum possible3.2.2 Shelter & Infrastructure contributions so that we can do whatever we can, to minimize the debilitating effect of hunger on children,The State Housing Board and State Slum who are the most vulnerable.Development Boards under the Ministry ofHousing and Urban Poverty alleviation providefunding and other support for both new housing and the upgrading of the old housing stock among the poor.Jawaharlal Nehru National Urban Renewal Mission (JNNURM) under the Ministry of Housing and UrbanPoverty Alleviation and the Ministry of Urban Development (implementing agency) was launched inDecember 2005, responding to the problems of poor infrastructure and lack of basic services for the urban poor.The initiative has two specific sub missions:1) Addressing urban infrastructure and governance2) Providing basic services for the urban poor The integrated development to rehabilitate slums Civil society & public partnership - Parivartan is achieved by providing pucca shelter, water supply, sewerage, drains and storm water drains, Parivartan is a slum networking project funded by the solid waste management, community World Bank, a collaborative effort between SEWA, toilets/baths, street lighting, community halls Ahmedabad Municipal Corporation and the slum and child care centers for the urban poor. The dwellers. The program serves as a model for the program also supports projects to build affordable Government of Gujarat to develop a state slum policy houses for the urban poor and people living on low with inputs from local NGOs, slum dwellers and incomes. Approximately Rs. 300 billion has been concerned citizens sanctioned for the mission spread over the course of seven years14.Within three years the mission has achieved the following:1) One or more projects sanctioned in 54 cities out of 63 mission cities (over 26 states out of 32 states).14 Ministry of Urban Development website, Government of India.18
  20. 20. 2) Out of 90 infrastructure projects committed for completion before December 2008, 28 projects reported satisfactory utilization of funds.3) Public transport (especially Bus Rapid Transport System) is attracting the private sector due to evolving revenue models and user change regimes.The JNNURM mission regularly floats tenders and invites private companies to participate in the development ofcity projects. Seeing that the mission is well funded, there is tremendous scope for greater private sectorparticipation from construction, architecture and infrastructure firms to expedite projects and also invest in theholistic development of such projects through a stronger PPP model. Furthermore, there are opportunities foraccounting firms acting as third party auditors to ensure the legitimate and ethical utilization of funds allocatedfor JNNURM.Gaps: There is a lack of private sector financial tools to assist low income home owners and slum dwellers forhome ownership or improvement, thus leaving the economically weaker sections no choice but to seek help fromthe government. Furthermore, there are efficiency gaps in distributing state funds effectively amongst targetgroups for home development, leaving space for corruption to thrive3.2.3 EducationThe Government of India has made a number of attempts to reduce the costs of schooling to promote educationby offering a variety of incentives: non-formal education system in collaboration with NGOs, scholarships, free orsubsidized education for girls, free textbooks, free uniforms, midday meals and dry rations. High rates of povertyand a poor schooling system/teaching standard have resulted in low literacy rates especially amongst childlaborers. As an innovative and to promote education within this group, the government has started eveningclasses for illiterate children from nine to fourteen years of age.Sarva Shiksha Abhiyan (SSA) is the Government of Indias flagship programs for achievement of theuniversalization of elementary education (UEE). This was mandated by the 86th amendment to the constitutionof India, making free and compulsory education to children of 6-14 years age group a fundamental right. In the2008-2009 budget, the Government of India sanctioned Rs. 80,000 crores for the further development of thisprogram. SSA is open to collaborating with NGOs to deliver quality education to the urban and rural poor.The following education programs are currently running under the SSA:Kasturba Gandhi Balika Vidyalays – Theseinstitutions have been set up in the rural and urbansettings to address the issue of equity in theeducation of girls belonging to the minority andmarginalized communities. So far 1754vidyalayas are running nationwide. TheGovernment of India allocated Rs. 80 crore to setup and upgrade existing hostels attached to theschools.Pahal – Launched in 2007, is an initiative of SSA Children of brick kiln workers stay in residential hostels to continue their educationUttrakhand for providing school education to while their parents migrate. (Lokadristi, Nuapada, Orissa)15 Cezayirili G. & Basu K. (2008) – Report on Two Years of JNNURM, Asian Development Bank. 19
  21. 21. never enrolled and drop out children in Civil society & public partnership – LAMPthe age group of 6-14 years who belongto vulnerable sections of society, e.g. rag AIFs Learning And Migration Program (LAMP) partners in Orissa,pickers, scavengers, snake charmer, Maharashtra, Gujarat, and recently Andhra Pradesh, directlybeggars and orphans living in urban educate 30,000 children every year, Concerted advocacy effortsslums. Pahal has since been expanded to have moved the government to support and scale up theseJharkhand, Rajasthan and Delhi. The models of education. The model promotes: residential hostels forscheme was conceived in view of the children of distressed seasonal migrants to continue theirshortage of government schools within education in their village while their parents migrate; site schools,the range of 1 km of urban slums and where children receive education at the migration destination; andnon-acceptance of the Education bridge courses, where children can catch up on courses that wereGuarantee Scheme and Alternative and interrupted by migration. This program has resulted in a significantInnovative Education schemes by the increase in the number of migrant children receiving education.children’s parents. It can be said that thePahal program is a valid expansion of the SSA has notified all states to identify and include children whoseEGS/AIE programs. The Pahal program is education is affected due to migration. The governments ofa more inclusive approach to education Gujarat, Maharashtra and Orissa have committed to supportingusing the PPP model for effective and replicating seasonal hostels pioneered by AIF. In the 2008-delivery, by working with Government 09 school year, they are investing $12.5 million to educaterecognized private schools in the vicinity 145,000 children affected by migration. Also this year, the Andhraof urban slums. The scheme provides Rs. Pradesh government partnered with AIF and six NGOs in3000 per annum, per child in Hyderabad (and Greater Hyderabad) to provide education toinstallments directly to the accredited 23,000 children of construction workers. AP-SSA is providingschools. The payment of installments is 90% of funds necessary to run this program; AIF covers thedirectly linked to the attendance and remaining components with the ultimate goal of enrolling theseachievement level of the enrolled children into mainstream government schools.children.Gaps: Despite a significant amount being allocated annually for programupgrading and maintenance, there is a lack of quality educational infrastructure,i.e. electricity, desks, computers, textbooks and latrines especially for the femalestudent. Further, there is a severe lack of quality teachers working in governmentschools and there continues to be issues of over crowding and teacherabsenteeism.3.2.4 HealthGovernment Hospitals and Primary Health Centers (PHCs) run by the Ministry ofHealth & Family Welfare are provisions made by the Government of India. 17%of all households throughout India did not have access to public health facilities –26% in the rural areas and 7% in the urban areas. In urban areas, 23% ofhouseholds do not use the PHCs either because the treatment was not availableor the facility was too far away. However, this can also be attributed to the fact Schools at migration work sites allowthat the target populations perceptions of their health, illness and casual factors children to receive an education while their parents work. (Janarth, Maharashtra)are largely based on socio-economic, cultural and environmental factors.16 Unni J. & Rani U (2003) – Social Protection for Informal Workers in India: Insecurities, Instruments and Institutional Mechanisms,Volume 34.20
  22. 22. Although the government of India has introduced rigorous structural Civil society parallel intervention:and adjustment programs to sharply reduce their expenditure on Self Employed Womens Associationpublic health services, high user charges raise barriers for many (SEWA)people with low health status and income constraints. Those who arefortunate enough to be provided medical benefits from their In 1992 SEWA introduced a uniqueemployers do have access to medical and health facilities; however integrated insurance plan for its members where each member paysinformal sector workers are neither covered by state nor private Rs. 65 annual premium. The womenmedical benefits. are covered for health, maternityGaps: The severe deterioration of healthcare being provided by Public benefits, asset insurance, and lifeHealth Centers and Government hospitals is highly visible, especially insurance. In 2000, SEWA reported that 30,000 women were enrolled inthe inability to handle the increase in admissions. Further to this there the plan of which 50% are in urbanis a lack of private sector intervention in providing micro health at low premiums for those below the poverty line.3.3 Economic Protection & Security3.3.1 Capital SecurityIn 1997, Swarna Jayanti Shahari Rozgar Yojana (SJSRY)17 was launched by the Government of India torationalized poverty alleviation scheme, replacing three earlier schemes that were running parallel to each other.The SJSRY aims to provide gainful employment to the urban poor (living below the poverty line) whereunemployed or under-employed, through the setting up of self-employment ventures or provision of wageemployment. In conjunction with the Urban Local Bodies scheme, Community Development Societies (CDS)were set up to operate two special schemes:The Urban Self-Employment Program (USEP) provides assistance to individual urban poor beneficiaries forsetting up gainful self employment ventures. This component involves micro -credit from public sector banks.The scheme also provides basic business skills training and other skills development as a compulsory step beforedisseminating micro-credit to the micro-entrepreneurs.Development of Women and Children in Urban areas (DWCU) aims at helping groups of urban poor women intaking up self-employment ventures where groups of at least 10 women are provided a subsidy of Rs. 1.25 lakhor 50% of the cost of the project (whichever is less). The groups have to set themselves up as thrift and creditsocieties, where the society will be eligible for an additional grant of Rs. 25,000 as a revolving fund. The fund ismeant for purchases of raw materials, marketing, infrastructure support, one-time expenses on child careactivity, and payment of insurance premium for self/spouse/child by maintaining savings for different periods oftime.The Urban Wage Employment Program (UWEP) seeks to provide wage employment to prospective workersliving below the poverty line within the jurisdiction of urban local bodies by for the construction of socially and17 Ministry of Housing and Urban Poverty Alleviation website, Government of India. 21
  23. 23. economically useful public assets. Under this scheme the Government of India will pay the prevailing minimumwage rate directly to the beneficiaries.Up until 2006-2007, the SJSRY program has received Rs. 1480 crores funding from the Central government:1) 858,742 people have been given skills development training2) 155,978 thrift/credit societies have been formed3) 659,446 people have been assisted to set up individual micro enterprises4) 473,404 women have been assisted to set up micro enterprises5) 588,760 man days (1613 man years) of work have been generatedGaps: There is urgent need to link microfinance and skills developmentmodules with private sector companies specializing in the spaces. Further,SJSRY programs can incorporate stronger business advisory services withprivate sector help.National Rural Employment Guarantee Scheme (NREGS) states thatone adult per house who is willing to do unskilled manual work at theminimum wage is entitled to 100 days of employment on local public As owner of a cycle rickshaw, Kasim Ali proudlyworks within 15 days of applying. If employment is not provided within 15 decorates his rickshaw to attract more passengers.days, the applicant is entitled to unemployment allowance up to 100 (CRD, Guwahati, Assam)days.The focus of the scheme shall be on the Civil sector & private intervention – Rickshaw Sanghfollowing works in their order of priority- AIFs Rickshaw Sangh initiative addresses underlying causes of• Water conservation and water poverty and promotes micro entrepreneurship among urban harvesting poor and rural migrants. Operational in 3 states – Uttar Pradesh,• Drought proofing (including a Bihar and Assam – the program enhances the quality of life of forestation and tree plantation rickshaw drivers by enabling them to get loans from banks to buy• Irrigation canals including micro and their own rickshaws and bringing them under the purview of minor irrigation works formal banking services. For banks in search of new clients,• Provision of irrigation facility to land Indias 8 million rickshaw drivers present a $20 million business. owned by the SCs / STs However, on their own, these drivers lacked the credit-• Renovation of traditional water worthiness to get a loan to buy their rickshaw. By standing bodies guarantor for them, AIF has succeeded in drawing them into the• Land development financial system. For cash-strapped rickshaw drivers, this means• Flood control and protection the realization of forgotten dreams and legitimization of their works including drainage in water occupation.And banks such as the Punjab National Bank, AIF’s logged areas lead partner in this initiative, have added a whole new set of• Rural connectivity to provide all- clients. The Rickshaw Sangh was conceptualized by Guwahati- weather access based NGO, Center for Rural Development (CRD), which was• Any other work notified by Central AIF’s first partner on the project. The Indian Institute of or State Government Technology (IIT), Guwahati designed a new model rickshaw which is sturdier and lighter with increased luggage and legThe scheme ensures that the state is space. AIF now works with CRD and NGO partners in Varanasi,directly employing the workers. The use Allahabad, and Lucknow.22
  24. 24. of private contractors is strictly prohibited and guaranteeing minimum wage to each household. This scheme hasso far provided employment to 34.7 million rural households that fall in the categories of:• Scheduled Caste (30.81%)• Scheduled Tribes (24.06%)• Households headed by women (48.88%)• Others (45.13%)Gaps: There is urgent need to link microfinance and skills development modules with private sector companiesspecializing in these spaces. SJSRY programs can incorporate stronger business advisory services with privatesector, thus ensuring strategic micro enterprise growth. NREGS could include a focus on micro-enterprisedevelopment which will also create opportunities for skilled labor in the private sector.3.3.2 Minimum WagesThe Minimum Wages Act of 1948 of the Ministry of Labor & Employment18 requires the government to fixminimum wage rates in respect of employment specified to in the schedule and to review and revise it atintervals of no more than five years. Unfortunately, even though the act is in place, a vast majority of workers donot receive the minimum wage. In September 2007, the National Minimum Floor Level Wage was increased toRs. 80 per day for all scheduled employments from Rs. 66 in 2004 (Ministry of Labor 2007).3.3.3 Organizing – Trade Union DevelopmentIn India, the organization of workers in the informal sector is achieved through three avenues:1) Radical political movements engage in agrarian class struggles. These are mainly extreme left groups, i.e. the Naxalite movement, where they have has some success in achieving economic gains for the poor laboring class.2) Trade unions of political parties, using a similar approach used by trade unions in the organized sector tend to organize according to their occupation. We are see excellent trade union formation of unorganized workers in Kerala under the Communist government.3) Empowerment groups created by NGOs often organize around micro-credit programs for women, adult literacy, healthcare services, relief assistance in times of crisis, etc. There are over 2000 NGOs working on labor related issues in India.19Gaps: Creating centre led national unions for the informal sectors will provide a sense of security for workers inthe space. The model currently implemented by the state of Kerala can be used as a framework for nationwideimplementation. There is also scope for NGOs to become advocacy and special interest groups providing activerepresentation services for informal sector unions, also mediating between government and private sectorinteractions.3.3.4 Welfare FundsThe Ministry of Labor and Employment has set up welfare funds for informal workers in six sectors – mines,bidis, cine, docks, building and construction. Kerala has set up twenty welfare funds where a similar trend hasbeen followed in Gujarat, Maharashtra, Karnataka, Punjab and Assam for a specific group of worker. The welfare18 Ministry of Labor website, Government of India.19 Unni J. & Rani U (2003) – Social Protection for Informal Workers in India: Insecurities, Instruments and Institutional Mechanisms.Volume 34. 23
  25. 25. funds do not have a system of registration, but they do require identity cards to be issued by employers. Thewidespread non-implementation of this requirement leads to a large number of workers not receiving thebenefits due to them.These funds mainly provide medical Civil society parallel intervention – SwachhDharacare, assistance for education, housing,water supply and recreation facilities. SwachhDhara (Clean Earth) is a comprehensive worker-owned,However, the coverage under all the waste management enterprise organized by AIFs partner NGO inabove programs is little more than 10 Patna, Nidan. With AIFs support, Nidan initiated SwachhDhara tomillion out of an estimated 370 create secure livelihoods and a dignified work environment formillion workers in the unorganized thousands of waste workers and sweepers in Patna city.sector. SwachhDhara collects and segregates waste from individualThe Unorganized Sector Workers households, restaurants and institutions. Organic waste is used inSocial Security Scheme was launched a vermi-compost unit and waste paper is recycled in a paper-in 2004. The scheme envisaged to manufacturing unit, both of which are self-sustaining enterprisesprovide three basic necessities to the through their revenues. Additionally, SwachhDhara receivesworkers in the unorganized sector: contracts from the Patna municipality to manage waste in various1) Old age pension parts of the city.2) Personal accidental insurance Labor organization and minimum wage guarantee:3) Medical insurance Members attain livelihood security from contracts and guaranteed minimum wages. They have fixed hours with scheduled breaks,The scheme is available for the workers receive uniforms and safety training equipment, creating a betterdrawing pay/wages/income not more dignified work environment. Further, 1,500 of the citysthan Rs. 6,500 per month. To avail wasteworkers are organized into 125 self-help groups enablingbenefits under this scheme, the workerwill make a single contribution of Rs. access to small business loans.50 per month where the worker will be Pride in their work:in the age group of 18-35 years, and By issuing identity cards, uniforms (caps, masks, gloves, andRs. 100 per month from the workers in boots), cycle-operated waste collection vans, a regular salary andthe age group of 36-50 years. The social security, Nidans intervention ensures the dignity ofgovernments contribution is at sanitation workers is maintained. As legitimate competitors in the1.16% of the monthly wages of the mainstream economy, SwachhDhara members can negotiateworkers. The scheme is being with the government for their rights and entitlements. Uniformsimplemented through the Employees and identity cards, in particular, change the perceptionProvident Fund Organization (EPFO). SwachhDhara members have of themselves and the publicsIn 2006-2007 the EPFO had 5.1 perception of waste workers. As SwachhDharas relationship withmillion claims where Rs. 12,106.68 the communities it services formalizes, its members commonlycrores was paid out in claims21. report a reduction in the vulnerability associated with theirGaps: By collaborating with the private profession and an increase in respect showed toward them. Thesesector, EPFO offices can scale up their efforts provide visibility to wastepickers, ensuring their presence invisibility nationwide by increasing their public consciousness while paving the way for access to otheroffices and staff numbers. entitlements.20 Ministry of Labor website, Government of India.21 Employees Provident Fund Organization website, Government of India.24
  26. 26. 3.3.5 Legal & Political RecognitionThe Multipurpose National Identity Card (MNIC) waslaunched in 2002 by the Ministry of Home Affairs andis still in the pilot phase across 13 states in specificdistricts amongst 2 million people. MNICs mission is tocreate a national identity for every Indian citizen withthe objective of increasing national security, managingcitizen identity and facilitating e-governance. Althoughthe project is still a long way away from completeintegration into the system, it displays positive stepsbeing taken by the government to address the issue of Safai Mitra (friends of hygiene) sweep the streets of Patna in full uniform, asuniform national identity using technology. members of SwachhDhara, a wasteworker-owned enterprise. (Nidan, Patna, Bihar)Although Ration Cards have been an important part of the Public Distribution System (PDS) in India, they alsoact as crucial identity documents. Application for the ration card can be obtained from circle offices where thehead of the family is attested by a municipal councilor and proof of residence is required. For newly arrivedmigrants or those living in urban slums who cannot provide any proof of residence, an office will conduct on spotinquiries by recording the statements of two independent witnesses in the neighborhood. It usually takes 15days for the preparation and dissemination of ration cards. When applying for additional documents like thedomicile certificates, or to be included in the electoral roles, it is essential to have a ration card to prove onesidentity. Hence the importance of attaining the ration card not only allows migrants, the urban and rural poor topurchase essential commodities at subsidized prices, but also paves the way for them to be included in thepolitical processes of the country.This form of legal recognition andidentity is also vital for entrepreneurs and Civil society & public partnership – Nidan Legal Clinicworkers in the informal sector. This is toavoid the reality of exploitation by local Nidan initiated a Legal Clinic in Patna to provide services toofficials and criminals who charge legal informal workers, women and children. Users pay a nominaland illegal fees where in return they offer registration fee for assistance with livelihood and personalsome breathing space for the vulnerable issues. The clinic furnishes information regarding the rights ofto continue their trade. Hence, once informal workers, assists in intervention and mediation, attainslegal status is achieved, migrants can be support from the police and court, and organizes collectiveled in the right direction for them to pressure. Workers organized by Nidan report a decrease in policeunderstand their legal rights obligations abuse, nonpayment of wages and bribe payments. They furtherto attain all local government clearances report an increased awareness in their legal rights and greater willingness to act upon these through collective strength. InGaps: The stronger enforcement of law 2006, Nidan mobilized migrant street vendors in Delhi tocan work towards ensuring every citizen protest, lobby with public representatives, and to participate inof India must have identification. The the legal proceedings of the Supreme Court. The effortMNIC project can be scaled up resulted in the Municipal Corporation of Delhi inviting licensesubstantially by contracting ID card applications from Delhi street vendors in September andproduction to a private partner. Urban October 2007.Local bodies together with civil society22 Ministry of Home Affairs website, Government of India.23 Bharat Express, Government of India Information portal, website. 25
  27. 27. and the private sector can scale up urban slum mapping to ensure all habitants are accounted for and providedwith ration cards.3.3.6 Technical and Vocational TrainingMainstreaming and assimilating the migrant workforce into the organized sector requires a phenomenalinvestment of time, capital and knowledge to ensure effectiveness of the various vocational training andapprenticeship programs running simultaneously.The Government of India is currently running the Industrial Technical Institutions (ITIs) under the Ministry ofLabor and the Jan Shikshan Sansthans under the National Literacy Mission of the Ministry of Human ResourceDevelopment. Both the programs have a unique operational structure based on partnerships with the privatesector and civil society thus enabling effective teaching methods and ensured absorption of the trainedworkforce into the private sector.Those who have passed the 10th standard or 8th standard, i.e. 10th boards are eligible to apply for courses at theITIs. Private sector association with the ITIs goes only as far as providing placement opportunities to ITIgraduates, The ITCs (Industrial Training Centers) which are privately run and publicly monitored are more efficientin delivering curriculum and excellent industry tie ups to provide employment and placement options for ITIgraduates. Upon successful completion of the industrial courses, graduates from the ITIs and ITCs are presented 24with National Trade Certificates issued by the National Council for Vocational Training. In total there are 5114ITIs,1896 are government run and 3218 are private. They are widely spread in urban and rural India where 25approximately 20% of the Indian workforce received formal education from the ITIs.However, the entry eligibility marginalizes the vast majority of the migrant population that has not studied untilthe 10th standard. There needs to be provisions made for the less educated sections of society. Furthermore, theILO highlights in its detailed assessment on ITIs that several changes are necessary in the structure of theinstitutions where greater provision has to be made for accepting workers who have learnt their trade throughinformal apprenticeships. Also, the ILO raises the specific issue of high drop out rates because some students areunable to complete the entire course due to personal reasons and limited learning capabilities. Some of thesuggestions include:• Introducing smaller, dynamic modules which can be easily completed where the student receives a certificate of merit upon completion of each module.• Introducing short courses for educated school leavers (8th Grade and above) in non-industrial trades that correspond to the fast growing sectors such as commerce, insurance, personal care, agriculture-related, forestry and paper, tourism, IT enabled services, and paramedical professionals.Jan Shikshan Sansthan (Institute of Peoples Education IPE)is a vocational training program is aimed particularly at Kiran Vaghela became the first of his family to access salaried employment at this studio through a vocational training program.migrants and deprived communities who normally live in the (Saath, Ahmedabad, Gujarat)24 Ministry of Labor and Employment website, Government of India.25 2003 – ILO Report: Industrial Training Institutes of India, the efficiency study report, Government of India.26
  28. 28. subhuman conditions of the slums, onpavements, settlement colonies, labor Civil society, public and private partnership: CAP Foundationcolonies etc. Many are first generationmigrants exposed to the grim and In 2004, AIF invested in a market-led vocational trainingstark realities of complex urban life program for disadvantaged urban youth developed by Dr.and the industrial milieu. JSS, formerly Reddys Foundation in Hyderabad in partnership with theknown and launched as the Shramik Andhra Pradesh government and the UK Department forVidyapeeths in 1967, emerged as an International Development. The program was designed toinstitute for conducting skill up prepare them for employment in high-growth local industriesgradation in the areas of programs of that faced shortages of skilled workers. The program trainednon-formal, adult and continuing over 20,000 youth in nine cities of Andhra Pradesh and had aeducation. It provides an academic job placement rate in excess of 90 percent.and technical resource support to ZillaSaksharata Samitis in both urban and In 2006, AIF partnered with the CAP Foundation to providerural areas. The methodology focuses necessary technical assistance for Saath, an Ahmedabad-on theory, practicals and field workexperience. The JSS program falls based NGO, to adapt the model. With guidance from AIF, localunder the umbrella of the National industries and the Ahmedabad Municipal Corporation, three-Literacy Mission, a government month training modules were designed in areas such astaskforce that aims to impart customer relations and sales, information technology enabledfunctional literacy to non-literates in services, BPO, hospitality, bedside patient assistance, andthe 15-35 age group. The NLM is electronic repair. Corporations like Big Bazaar, Westside, Cafébeing enlarged to provide a non Coffee Day, and ICICI Bank Ltd as well as numerous call centersformal education program, ensuring and hospitals began to recruit Saath trainees. Over 4,600that the benefits of TLCs are made young people trained under the project are now gainfullyavailable to out of school children as employed. The government of Gujarat saw the immensewell.26 potential of this project and through the Gujarat UrbanThe JSS curriculum is structured into Development Mission matched AIFs investment 3:1. With thisshort course modules, ranging from influx, Saath is on track to train and employ 25,000 urban3-6 months depending on the youth in 8 cities of Gujarat by 2010 in partnership with localcomplexity of the subject being organizations. Over the past year, AIF has expanded thetaught. Students can attend as many program into Jharkhand, Chattisgarh and Tamil Nadu with morecourses as they want and attain states in the pipeline and a target of 100,000 youth job placedcompletion cer tificates as by 2010.qualifications from the program. TheJSS is working towards getting thecertificates accredited from the NCVT. NGOs like the Smile foundation actively participate in marketing theprogram to the immediate locality and also help in operationally managing the program jointly with the Ministryof HRD and a nucleus of professional staff. There is still scope to develop courses that cater to rag pickers as it hasbeen noticed that garbage collection and sorting is a rapidly growing industry in the unorganized sector. Also,teaming up with institutes focused on entrepreneurial development to impart vital business skills that will allow avocationally qualified person from the JSS to start and operate a business successfully. This is determined to bethe true path towards poverty alleviation.26 Ministry of Human Resource Development website, Department of Education, National Literacy Mission. 27