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An Industry Oriented Dissertation Project On
Poverty Reduction Strategy as Implementation of the Right to
Development in Maharashtra
submitted for the partial fulfillment of the requirement of the degree
of
MASTER OF MANAGEMENT STUDIES OF UNIVERSITY OF MUMBAI
Submitted by
SUSHANT RAJAN CHEULKAR
Roll No. 14
Specialization: Finance
Submitted To
Dr. Rupali More
SASMIRA’S INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH,
SASMIRA MARG, WORLI, MUMBAI. July 2020

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DECLARATION BY THE CANDIDATE
I hereby certify that the work which is being presented in this Industry Oriented Dissertation Project
entitled- “Poverty Reduction Strategy as Implementation of the Right to Development in
Maharashtra “in partial fulfilment of the requirement for the award of the Degree of Master of
Management Studies, University of Mumbai and submitted to the Sasmira’s Institute of
Management Studies and Research, Worli, Mumbai, is an authentic record of my own work carried
out during a period from January till March under the guidance of Dr. Rupali More .
The matter presented in this project report has not been submitted by me for the award of any
other degree of this or any other Institute.
Wherever references have been made to intellectual properties of any individual / Institution /
Government / Private / Public Bodies / Universities, research paper, text books, reference books,
research monographs, archives of newspapers, corporate, individuals, business / Government and
any other source of intellectual properties viz., speeches, quotations, conference proceedings,
extracts from the website, working paper, seminal work et al, they have been clearly indicated,
duly acknowledged and included in the Bibliography.
Name of the Students: Sushant Rajan Cheulkar
Signature of the Student:
Signature of Guide:
Name of Guide: Dr. Rupali More
Signature of co-Guide
Name of co- Guide: DR SATISH ATHWALE

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CERTIFICATE BY THE GUIDE
This is to certify that Mr. / Ms. SUSHANT RAJAN CHEULKAR
of
the two year full-time Master's Degree Programme in Management Studies (MMS),
(Finance / Marketing / Human Resource / Systems / Operations / IT ), Roll No.
has carried out the work on the Industry Oriented Dissertation Project titled Poverty
Reduction Strategy as Implementation of the Right to Development in Maharashtra
under my guidance in partial fulfillment of requirement for the completion of MMS as
prescribed by the University of Mumbai.
This Industry Oriented Dissertation Project Report is the record of authentic work carried
out by him / her during the period from January till March 2020.
Place:
Date:
Signature of Guide:
. Name of Guide: DR RUPALI MORE
Signature of co-Guide
Name of co- Guide: DR SATISH ATHWALE

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MMS PROGRAMME, SEM IV, AY 2020-2021
INDUSTRY ORIENTED DISSERTATION PROJECT SUBMISSION
(FOR OFFICE USE ONLY)
Received two copies of Hard Bound Book and two CDs the Specialization Project Report
and two copies of Summary Sheet from Mr. / Ms. SUSHANT RAJAN CHEULKAR
Roll No. 14 Specialisation: Finance
of the Two Year Full-time Master's Degree Programme in Management Studies
(MMS),University of Mumbai. Project Titled: Poverty Reduction Strategy as
Implementation of the Right to Development in Maharashtra
Name of Guide: Dr. Rupali More
Designation
Place:
Date:
Receiver’s Signature: __
Receivers Name:
Signature of co-Guide
Name of co- Guide: DR SATISH ATHWALE

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ACKNOWLEDGEMENT
This project has been a great learning experience for me. I take this opportunity to thank Dr.
Rupali More, my internal project guides whose valuable guidance & suggestions made this
project possible. I am extremely thankful to her for her support. He has encouraged me and
channelized my enthusiasm effectively. I express my heart-felt gratitude towards parents,
siblings and all those friends who have willingly and with utmost commitment helped me
during the course of my project work.
I also express my profound gratitude to Dr. Kamal Tandon, Director of Sasmira’s Institute of
Management Studies & Research for giving me the opportunity to work on the projects and
broaden my knowledge and experience.
I would like to thank all the professors and the staff of Sasmira Institute especially the
Library staff who were very helpful in providing books and articles I needed for my project.
Last but not the least, I am thankful to all those who indirectly extended their co-operation
and invaluable support to me .

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EXCLUSIVE SUMMARY
This project is about “Poverty Reduction Strategy as Implementation of the Right to
Development in Maharashtra With 301.7 million poor people, constituting 27.5 percent of
the population, poverty reduction in India is clearly far slower than anticipated. Most
chronically poor are landless or nearlandless, have a higher dependency burden and
illiteracy level and depend on wages. The wage dependence of those in chronic poverty
makes recent initiatives under the National Rural Employment Guarantee Scheme (NREGS)
an important milestone in anti-poverty policies since India’s Independence. NREGS
however, has roots in the Maharashtra Employment Guarantee Scheme (MEGS) – a flagship
initiative of the Government of Maharashtra that recognised, for the first time, the right to
work and provided unskilled work on demand. It has been operational for over three
decades. This paper tries to revisit the existing literature on the MEGS to identify and
understand the issues that deserve special attention in the context of employment-induced
poverty reduction in the Indian context. The central argument in the paper is that awareness
generation and empowerment of the poor for the creation and operationalisation of demand
for work are the two most critical preconditions for rights-based programmes such as MEGS
and NREGS to deliver the desired results.
This paper notes that while the NREGS has potential to reduce the intensity of poverty for
the large mass of rural poor, the number of days of work provided and the level of the wage
rate remain critical determinants of whether or not this can provide an escape route out of
poverty for those who are able to work.

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List of Abbreviations
SASMIRA : The Synthetic & Art Silk Mills’ Research Association
WTO : World Trade Organisation

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CONTENTS
Chapter
no
Details Page
No.
Candidate’s Declaration ii
Certificate by the Guide ii
Acknowledgement Iv
Abstract / Executive
Summary
v
List of Abbreviations xii
List of Figures/
Illustrations
xv
List of Tables xvi
List of Charts xviii
1 INTRODUCTION 11-15
1.1 Background 13
1.2 Significance of the Study 14
1.3 Need for the Study 14
1.4 Scope of the Study 14
1.5 Aims and Objectives of
Study
15
Research design 15

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2 LITERATURE
REVIEW
16-29
2.1 Introduction 16
3 RESEARCH
METHODOLOGY
30-31
3.1 Research Design 30
3.2 Data Collection 31
4 DATA DESCRIPTION &
ANALYSIS
33-59
4.1 Introduction 33
5 SUMMARY &
CONCLUSION
60-68
5.1 Findings & Conclusions 60
5.2 Recommendations 66
5.3 Limitations of Study 67
BIBLIOGRAPHY &
REFERENCES
68

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ANNEXURE I-
Questionnaire
Letter to the Company,
Letter to the
Respondents,
INTRODUCTION
Right to Development (RTD) approach visualises economic development
process from a human rights perspective. The United Nations (UN) General
Assembly adopted in 1986 the Declaration on the Right to Development and it

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can now be seen as an internationally accepted human right that is an entitlement
upon the society. The design of a nation’s economic development policies must
take this into account.
The basic concern of the development process started after the world wars was
improvement in level of living of the people. This concern was expressed in
aggregative terms of national income growth and subsequently in distributive
terms as well by looking into gains from the aggregate growth process by various
sections of the people, specially the poor in low-income countries. The
development literature by and large did not take a rights perspective till recently.
The human rights movement, which too saw a take-off after the world wars,
aimed at promoting freedom and dignity of all individuals from civil and
political rights perspective. It is only later that economic, social and cultural
rights were duly recognised to put them on the same footing as civil and political
rights. Right to development refers to the particular development process that
aims at realization of human rights including economic and social rights. Since
the basic objectives of development process and rights movement have several
common elements, Keba M’Baye coined the term ‘right to development’ in 1972
so that both the development and the rights strategies could complement each
other. Or, as Sen (1999) says: “Development can be seen, …, as a process of
expanding real freedoms that people enjoy.” and it “requires the removal of
major sources of unfreedom: poverty as well as tyranny, poor economic
opportunities as well as systematic social deprivation, neglect of public facilities
as well as intolerance or overactivity of repressive states.”
The rights perspective visualises certain minimum claims a person has over the
society with regard to protection against civil and political interference and
economic deprivation. The claim may take the form of freedom to live and
pursue+ one’s business or freedom to speech unless explicitly banned by law.
This involves a guarantee of no hindrance from others. The claim could also take
the form of affirmative support like social security that enables a person a
minimum level of living. Freedom from hunger may be considered as a
prerequisite for survival. Such rights need not cover just the elements needed for
survival but all such elements that are essential to effectively take part in society.
In the context of explaining subsistence wage in the classical literature, for

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example, Adam Smith stated: “By necessaries I understand not only the
commodities that are indispensably necessary for support of life, but whatever
the custom of the country renders it indecent for creditable people, even of the
lowest order, to be without.” Items essential for avoidance of social disgrace thus
might belong to the set of human rights. Similarly, some minimum education and
healthcare necessary to build up basic human capabilities might be considered
basic human rights.
Based on the definition given by the UN High Commissioner for Human Rights,
the rights-based approach to development refers to a process of human
development directed towards achievement of normatively based international
human rights standards as laid down and agreed upon in various international
treaties. Violation of the civil and political rights might constitute obstacles to
development and their elimination could be seen as precondition for
development. RTD provides human rights issues with a positive shift towards
securing and promoting human well-being and dignity of the people and a move
forward from the civil and political rights
As a concept, right to development is broader than either development or human
rights. It goes beyond the various elements of the development process and
development strategies in so far as it looks at it from as a rights issue
(entitlement) from the beneficiaries’ point of view and obligation of state or
other agents in the society to take measures for fulfilment of the rights.
Background
Over much of the period between 2003 and 2018, India experienced one of the
fastest growth rates in the world when the state had implemented a set of
economic reforms that may be labelled as neo-liberal. Though contested in terms

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of magnitude and spatial spread, this was also a period that witnessed reductions
in absolute poverty, as defined by official poverty lines. Contrary to conventional
assumptions that globalisation under neoliberal growth regimes will undermine
social welfare provisioning, there is growing evidence worldwide to suggest that
the outcomes are more complex. Welfare spending does not necessarily decrease
everywhere, despite other policy shifts that are indicative of neo-liberalisation
(Rudra and Haggard 2005)1 . In fact, Barrientos and Hulme (2009) point to a
quiet revolution unfolding in the poorer countries with the rapid spread of social
protection measures. Importantly, as Ferguson (2015) points out, such protection
involves a set of non-contributory transfers, unbound to employment. Since
2000, India too, despite the neoliberal tilt, has seen a series of policies legislated
by the state, aimed at expanding the domain of welfare, some of which were of a
non-contributory nature (Ruparelia 2013; Mooij 2014). This chapter provides a
critical overview of the drivers, design and implementation of two important
poverty reduction strategies in India, a national public rural employment
guarantee programme, under the Mahatma Gandhi National Rural Employment
Guarantee Act 2005 (MGNREGA), and the public provision of subsidised food
grains through the Public Distribution System (PDS). There are clear overlaps
between the interventions in the domain of income security through public
employment assurances and the domain of food security through public
provisioning of food grains. Among the range of poverty reduction strategies
launched in post-colonial India, these are, arguably, the two most significant in
terms of coverage and impact. The primary responsibilities for their delivery, as
with other social welfare programmes, rest with the sub-national (state)
governments.
The paper is structured as follows. After establishing the historical antecedents of
the two policies, we briefly review the politico-economic context of the
emergence of the two initiatives in India, emphasising the proximate drivers of
the two policies; this includes the political and civil society imperatives that
shaped the design and implementation of the schemes. Based on secondary data,
we then review performance of the two programmes over time, and across sub-
national regions. We offer some explanations for the trends observed based on

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both existing literature and interviews with key informants in the bureaucracy,
with political actors and civil society activists. To understand regional variations
better, we then move onto a discussion of the implementation processes in two
select states, Rajasthan and Tamil Nadu, occupying different locations on the
human development indices spectrum in the country. The final section draws
together the observations made to identify a few critical factors that shape
poverty reduction policies, outcomes and implications for such policy
interventions elsewhere.
SIGNIFICANCE OF THE STUDY
The proposed study provides the much-needed information about the Poverty
Reduction Strategy implemented in Maharashtra. To understand the importance
of Education can give struggling poverty-stricken areas a fighting chance. By
investing in education, the people can be given the chance to solve their own
problems. The food shortage problem is one that has racked these areas.
However, with education comes the ability to understand more. To find out that
the schemes of poverty alleviation are implemented successfully or not and are
they reaching to rural area properly.
Need for the Study
To find out Did the MEGS reduce chronic poverty or enable escape from
poverty.
To find out Did the MEGS reduce poverty, especially for those facing severe and
long duration poverty? Did it prevent starvation? Did it lead to a reduction of risk
and to income stabilisation? Was it targeted at the poorest households?
To find out Did the MEGS lead to increased bargaining power of labour and rise
in wages.
Objectives

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1. to study that weather scheme of empower the poor to improve their access to
livelihood opportunities is working effective or not.
2. To identify the flaws in Poverty Reduction Strategy
3. To find out aim of Poverty Alleviation Programmes
4. To study the strategic management with respect to educational opportunities for
urban poverty alleviation.
1.6 Research Questions
Secondary data analysis remains an under-used research technique in many
fields, including LIS. Given the increasingly availability of previously
collected data to researchers, it is important to further define secondary data
analysis as a systematic research method.
CHAPTER TWO LITERATURE REVIEW
INTRODUCTION TO LITERATURE REVIEWS

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The idea of “literature” usually conjures up images of dusty books that you are
required to read for English, American, or World literature classes. The
“literature” in a literature review, however, refers to all the previous research and
scholarship on a particular topic, no matter what discipline you are studying; the
“review” is your explanation of what the literature says.
A literature review is the synthesis of the available literature regarding your
research topic. This synthesis merges the conclusions of many different sources
to explain the overall understanding of the topic, thus laying a foundation for
both the research question and primary research. Although a literature review
will cite sources and should discuss the credibility of the sources included, it is
more than an annotated bibliography. Your literature review needs to review all
the significant sources on a topic, regardless of whether or not they support the
claims you will eventually be working toward.
Butler & Teagarden (1993)
in their study Strategic Management of Worker Health, Safety, and
Environmental Issues in Mexico's Maquiladora Industry mentioned that the
conflict arising from differences in business practices, standards, values, and
norms guiding behavior are inherent in international business. These conflicts
were evident in Mexico's Maquiladora industry, particularly relating to issues of
worker health, safety, and environment. The study extends a model of conflict
management; illustrates the model's dimensions with case study examples;
discusses strategic human resource management implications of the model's
various outcomes; offers recommendations for managing worker health, safety,
and environment issues; and identifies directions for future research.
Ketchen D. J. and Shook C. L. (1998)
in his study “The application of cluster analysis in strategic management
research: an analysis and critique”, mentioned that Cluster analysis is a statistical

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technique that sorts observations into similar sets or groups. The use of cluster
analysis presents a complex challenge because it requires several methodological
choices that determine the quality of a cluster solution. This paper chronicles the
application of cluster analysis in strategic management research, where the
technique has been used since the late 1970s to investigate issues of central
importance. Analysis of 45 published strategy studies reveals that the
implementation of cluster analysis has been often less than ideal, perhaps
detracting from the ability of studies to generate knowledge. Given these
findings, suggestions are offered for improving the application of cluster analysis
in future inquiry
Hoskisson R. E. et. al. (1999)
mentioned that the development of the field of strategic management within the
last two decades has been dramatic. While its roots have been in a more applied
area, often referred to as business policy, the current field of strategic
management is strongly theory based, with substantial empirical research, and is
eclectic in nature. This review of the development of the field and its current
position examines the field’s early development and the primary theoretical and
methodological bases through its history
Early developments include Chandler’s (1962)
Strategy and Structure and Ansoff’s (1965) Corporate Strategy. These early
works took on a contingency perspective (fit between strategy and structure) and
a resource-based framework emphasizing internal strengths and weaknesses.
Perhaps, one of the more significant contributions to the development of strategic
management came from industrial organization (IO) economics, specifically the
work of Michael Porter. The structureconduct-performance framework and the
notion of strategic groups, as well as providing a foundation for research on
competitive dynamics, are flourishing currently. The IO paradigm also brought
econometric tools to the research on strategic management. Building on the IO
economics framework, the organizational economics perspective contributed
transaction costs economics and agency theory to strategic management. More
recent theoretical contributions focus on the resource-based view of the firm.
While it has its roots in Edith Penrose’s work in the late 1950s, the resource-

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based view was largely introduced to the field of strategic management in the
1980s and became a dominant framework in the 1990s. Based on the resource-
based view or developing concurrently were research on strategic leadership,
strategic decision theory (process research) and knowledge-based view of the
firm. The research methodologies are becoming increasingly sophisticated and
now frequently combine both quantitative and qualitative approaches and unique
and new statistical tools. Finally, this review examines the future directions, both
in terms of theory and methodologies, as the study of strategic management
evolves.
Hulland J. (1999)
mentioned that advances in causal modeling techniques have made it possible
for researchers to simultaneously examine theory and measures. However,
researchers must use these new techniques appropriately. In addition to dealing
with the methodological concerns associated with more traditional methods of
analysis, researchers using causal modeling approaches must understand their
underlying assumptions and limitations. Most researchers are well equipped with
a basic understanding of LISREL-type models. In contrast, current familiarity
with PLS in the strategic management area is low. The study reviews four recent
studies in the strategic management area which use PLS. The review notes that
the technique has been applied inconsistently and at times inappropriately, and
suggests standards for evaluating future PLS applications.
Jenkins P. (2000)
reviewed the approach to urban land management widely supported by
international agencies, and its application in Maputo, the capital of Mozambique.
It described the scale of poverty in Maputo, where more than half the population
is poor, including 30 percent who are destitute. Most of the city’s population gets
land for housing through the informal market. Access to formal ownership, often
through illegal means, serves mainly the economic and political elites. The study
reviewed the limitations of a programme that was meant to improve urban
management; but with an emphasis that was inappropriate in the face of massive
poverty and unrealistic in regard to the institutional and political realities. In
conclusion, the paper argues that urban management improvements have to focus

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on demand-driven social improvements (in this instance improving informal land
access for the majority) as much as on economic ones (for example, improving
formal land access for the minority). It also notes the often under-estimated
difficulties in improving urban management within countries with fragile local
governments, especially where the adverse effects of structural adjustment and
globalization are strong.
Barney (2005)
through his study accepted the challenges posed by Bill Ouchi’s research. As a
strategic management scholar, he willingly accepted Professor Ouchi’s
challenge. He further mentioned that “indeed, beyond any moral obligation that
we might have to benefit the broader society within which we live, I believe that
bringing strategic management theory to bear on social policy debates will
benefit both the quality of many of these debates and the quality of the field of
strategic management”. Barney was also of the view that the quality of many of
these debates will improve because strategic management theory often generates
social policy insights that are different from those derived from more traditional
policy-oriented disciplines—including economics. Engaging in these debates, in
turn, will benefit the field of strategic management by enabling its theories to
become more widely known and examined, by permitting access to new and rich
data, and by securing resources that have historically been closed to it. His study
provides one example of the multiple benefits that could be generated if insights
from strategic management theory were used in social policy analysis.
Covin J. G. and Selvin D. P. (2006)
studied Strategic Management of small firms in hostile and benign environments.
Their study reports the results of a study designed to investigate the effective
strategic responses to environmental hostility among small manufacturing firms.
Data on environmental hostility, organization structure, strategic posture,
competitive tactics, and financial performance were collected from 161 small
manufacturers. Findings indicate that performance among small firms in hostile
environments was positively related to an organic structure, an entrepreneurial
strategic posture, and a competitive profile characterized by a long-term
orientation, high product prices, and a concern for predicting industry trends. In

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benign environments, on the other hand, performance was positively related to a
mechanistic structure, a conservative strategic posture, and a competitive profile
characterized by conservative financial management and a short-term financial
orientation, an emphasis on product refinement, and a willingness to rely heavily
on single customers.
Tallman S. (2007)
in his study developed a resource-based strategic management model of MNE
market entry. Strategic groups of firms in the U.S. foreign auto industry were
derived empirically and tested for their ability to explain structural and
performance results in one industry and one host country under the assumptions
of the model.
Rumelt R. et. al. (2007)
did a study on Strategic Management and Economics. The study examines the
relationship between strategic management and economics. The study notes the
major contribution from economics has been primarily from the industrial
organization literature, with promises of important gains to be made from the
‘new’ economics as it breaks away from the neoclassical theory of the firm.
Contributions from strategic management to economics are noted. Areas for
further research utilizing the relationship between strategic management and
economics are also indicated.
Furrer & Thomas (2008)
analyses 26 years of strategic management research published in Academy of
Management Journal, Academy of Management Review, Administrative Science
Quarterly and Strategic Management Journal. Through a content analysis, it
studies the relationships between the subfields of strategic management. A
multiple correspondence analysis provides a map of keywords and authors, and a
framework to track this literature over the 26-year period. A discussion of future
pathways in the strategic management literature was also provided.
Guo (2009)
in his study on Irrational Strategic Management described that with the
development of economy, original pure rational strategic management could not

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adapt to the complex and ever-changing environment. A kind of irrational
strategic management is emerging quietly. His study introduces the development
of irrational strategic management and its function in strategic management, and
discusses the way of irrational factor playing an active role in strategic
management.
Landrum & Edwards (2010)
mentioned in their study that over fourteen years ago, Bill Richardson stated that
modern strategic management is leading to the demise of society with its profit-
maximization focus. Furthermore, there is criticism that strategic management
research is lacking relevance for practitioners. In contrast to this criticism of
academia, practitioners are increasingly engaged in sustainability-related
activities and reporting and are moving beyond the historical focus on profits.
This study examined trends in strategic management academic and practitioner
publications since Richardson’s claim. Since academicians are charged with
educating future managers for the workforce, they sought to determine if
academic strategic management research publications are reflecting the
practitioner sustainability movement incorporating social and environmental
performance alongside financial performance. Suggestions for future research
were also presented
Andrew & Senna (2010)
stated that informed management of urban parks can provide optimal conditions
for tree establishment and growth and thus maximize the ecological and aesthetic
benefits that trees provide. The study assesses the structure, and its implications
for function, of the urban forest in Allan Gardens, a 6.1ha downtown park in the
City of Toronto, Canada, using the Street Tree Resource Analysis Tool for Urban
Forest Managers (STRATUM). The goal was to present a framework for
collection and analysis of baseline data that can inform a management strategy
that would serve to protect and enhance this significant natural asset. They found
that Allan Garden’s tree population, while species rich (43), is dominated by
maple (Acer spp.) (48% of all park trees), making it reliant on very few species
for the majority of its ecological and aesthetic benefits and raising disease and
pest-related concerns. Age profiles (using size as a proxy) showed a dominance

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of older trees with an inadequate number of individuals in the young to early
middle age cohort necessary for short- to medium-term replacement. Because
leaf area represents the single-most important contributor to urban tree benefits
modeling, they calculated it separately for every park tree, using hemispheric
photography, to document current canopy condition. These empirical
measurements were lower than estimates produced by STRATUM, especially
when trees were in decline and lacked full canopies, highlighting the importance
of individual tree condition in determining leaf area and hence overall forest
benefits. Stewardship of natural spaces within cities demands access to accurate
and timely resource-specific data. Their work provides an uncomplicated
approach to the acquisition and interpretation of these data in the context of a
forested urban park.
Clarke & Fuller (2010)
in their study focused on multi-organizational cross-sector social partnerships
(CSSP), an increasingly common means of addressing complex social and
ecological problems that are too extensive to be solved by any one organization.
While there is a growing body of literature on CSSP, there is little focus on
collaborative strategic management, especially where implementation and
outcomes are concerned. This study addresses these gaps by offering a
conceptual model of collaborative strategic management, which is then tested
through the use of two qualitative empirical cases of collaborative regional
sustainable development strategies (CRSDS). The model augments previous
collaboration models by highlighting two levels of implementation (the
collaboration and the organizational levels) and by considering the different
types of outcomes, and the feedback loops.
Patrizia (2010)
in her study, Strategic management plan evaluation of a river basin district
mentioned that strategic planning and management of environmental resources,
traditional multi criteria analysis is usually adopted for evaluating alternative
development scenarios against a set of criteria. However, the modeling of the

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problem is often inadequate for representing the complexity which characterizes
the decision. To overcome this problem, the study aims to suggest the application
of an advanced version of the analytic hierarchy process: the analytic network
process (ANP). The ANP is the first mathematical approach that makes it
possible to systematically deal with all kinds of dependencies and feedback
among elements. It requires the identification of a network of clusters and nodes,
as well as pair-wise comparison to establish relations within the network
elements. The number of comparisons is dependent on the number of
interrelations among the elements. Findings of the study - The method are
applied to the Strategic Management Plan of the River Po Basin in Italy. The
result obtained is a surprising ranking which places major weight on the cultural
heritage and landscape rather than on traditional environmental categories, such
as land and water. This result reflects the recent River Po Basin Authority
strategy to institute an integrated and coordinated policy action in the field. The
proposed approach has improved the integration of the strategic evaluation in the
decision-making process within the management of territorial development
policies, thanks to a better representation of the interrelations among issues
within the decision model
Richard, Harry & Sharon (2011)
conducted a study on Strategic Adaptive Management in freshwater protected
areas and their rivers. The study reveals that aquatic ecosystems are connected
over large spatial scales, have varied drivers, strong and often conflicting societal
interests and interacting management processes. Many of the world’s protected
areas (>100,000, 12% of land) include freshwater ecosystems, some specifically
declared for freshwater protection, but often supplied by rivers outside their
protected boundaries. Such complex socio-ecological systems have considerable
challenges. They report on Strategic Adaptive Management (SAM), a
management framework that should be implemented, irrespective of resourcing,
in protected areas of any river system, ranging from heavily managed or
regulated through to pristine rivers. They briefly outline the four stages of the
SAM process for aquatic protected areas and present three case studies from
South Africa and Australia in different stages of SAM implementation. Progress

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was incremental, reflecting gaps, problems, and socio-ecological dynamism.
Real-world implementation usually means such management is passive although
experimentation with environmental flows remains possible. While maturity in
SAM is incremental over years or decades, it can and should be applied even if
environmental problems are urgent and contentious. The stages of SAM should
produce an agreed vision and/or mission among stakeholders, with an
appropriate hierarchy of objectives that determines indicators to be measured,
allowing ongoing reflection, learning and adaptation. There is no panacea for
achieving aquatic conservation, but Strategic Adaptive Management offers hope
with its interlinked processes for navigating complexity and learning. SAM in
freshwater conservation is progressing because of the imperative for
sustainability, history of interaction between scientists and managers and the
need for trans-disciplinary governance of rivers.
Wegelin (1995)
reviewed the wide range of options available to municipalities in the South
Nairobi to alleviate or reduce poverty. This includes options for employment
creation and improving low income groups’ access to justice and protection from
crime as well as improvements to urban services such as water supply, sanitation,
solid waste management, public transport, health care and education. The paper
also outlines how municipal action must encourage and support the activities of
community based organizations, NGOs and the private sector in contributing to
such improvements and describes how changes in the regulatory framework for
land management, urban agriculture and housing can also contribute to poverty
alleviation.
Amjad and Kemal (1997)
in their study provided a consistent time-series of poverty estimates for the
period 1963-64 to 1992-93 for both the rural as well as the urban areas, examines
the influence of macroeconomic policies on the poverty levels, analyses the
impact of Structural Adjustment Programmes on the levels of poverty, and
suggests a strategy for poverty alleviation in Pakistan. Their study explores in
particular the influence on poverty of such factors as economic growth,
agricultural growth, and terms of trade for the agriculture sector, industrial

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production, rate of inflation, employment, wages, remittances, and the tax
structure. While the paper cautions that on account of the limited number of
observations the results of the study should be interpreted cautiously, the study
does suggest that the growth above a threshold level of about 5 percent, increase
in employment, and remittances are the most important variables explaining the
change in poverty over time. The study also comes to the conclusion that the
policies pursued under the Structural Adjustment Programme have tended to
increase the poverty levels mainly because of decline in growth rates, withdrawal
of subsidies on agricultural inputs and consumption, decline in employment,
increase in indirect taxes, and decline in public expenditure on social services.
The paper also outlines a strategy for poverty eradication and argues that besides
the safety nets, the employment programmes, as well as promotion of informal
sector enterprises, are essential.
Rogerson (1999)
explained in his study that the urban poverty is a policy issue of growing
significance in post-apartheid South Africa. In terms of the new Constitution the
developmental role of local governments is given considerable attention. Against
a background analysis of the best practice of local anti-poverty strategies in the
developing world, this paper reviews the experience of eight case studies of local
economic development (LED) initiatives. The case studies review a cluster of
research findings from South African metropolitan areas (Midrand, Port
Elizabeth, inner-city Durban, Khayelitsha and Winterveld) followed by issues
from secondary cities (Nelspruit, Harrismith) and small towns (Stutterheim). A
key conclusion from the experience of post-apartheid South Africa is that LED
practitioners are currently struggling to find means to integrate their LED
initiatives with the task of poverty alleviation.
Rogerson (1999)
explained in his study that the urban poverty is a policy issue of growing
significance in post-apartheid South Africa. In terms of the new Constitution the
developmental role of local governments is given considerable attention. Against
a background analysis of the best practice of local anti-poverty strategies in the

26. 26
developing world, this paper reviews the experience of eight case studies of local
economic development (LED) initiatives. The case studies review a cluster of
research findings from South African metropolitan areas (Midrand, Port
Elizabeth, inner-city Durban, Khayelitsha and Winterveld) followed by issues
from secondary cities (Nelspruit, Harrismith) and small towns (Stutterheim). A
key conclusion from the experience of post-apartheid South Africa is that LED
practitioners are currently struggling to find means to integrate their LED
initiatives with the task of poverty alleviation.
Gaur (2000)
in his study made an attempt to examine extent of urban poverty in India.
Further, it has been sought to analyze various dimensions, issues, of urban
poverty and also factors responsible for prevalence of poverty in urban areas. An
attempt has also been made to review urban poverty alleviation programmes and
suggest new approaches for its eradication. Mainly secondary sources of data
have been used.
Kumaraswamy (2001)
in his study explained that based on experiences and studies, it is established that
the term poverty is a misnomer as efforts made to alleviate poverty and reduce
poverty gap through funds flow to the socio-economically deprived poor strata of
society are misdirected/diverted to finance middleman activities thus making the
rich richer and the poor poorer leading to widening of poverty gap. In
recognition of this serious problem of deprivation, the village development
schemes successfully implemented by India’s Oriental Bank of Commerce and
the State Bank of India (Village adoption scheme) aimed at village
democratization to attempt to solve this colossal problem of widening poverty
gap are worth emulating by other countries and institutions to provide the
greatest good for the greatest number.
United Nations Centre for Human Settlements (Habitat), Moreno et.al. (2001)
argues that structural adjustment was, after all, a mechanism to promote growth
at a time when it was felt that focusing on growth alone was the best way out of
poverty; while using scarce development resources to promote equity, it was
argued, would slow down economic growth.

27. 27
Berner (2002)
found that Conventional policies of urban poverty alleviation have proven to be
largely ineffective. They have, in particular, failed to defuse the worsening
housing crisis in the large cities of the developing world. Shortcomings in
funding and implementation notwithstanding, the Philippine ‘Community
Mortgage Program’ (CMP) represents a promising paradigm shift. It allows
squatter associations to acquire land by means of state-guaranteed credit which is
to be repaid over a period of 25 years. The resulting installments are well below
the rent for a single room in the same area and are consequently acceptable to
most residents. The CMP is thus effectively addressing one of the crucial
problems of squatters, namely, precarious access to urban land and insecurity of
tenure. The results of our studies in Manila and Cebu City, however, indicate that
the programme always excludes a substantial part of the community members,
among them the dire poor. The unintended consequence is a division of
communities which often turns into violent conflict.
Baker & Schuler (2004)
mentioned that in recent years an extensive body of literature has emerged on
the definition, measurement and analysis of poverty. Much of this literature
focuses on analyzing poverty at the national level, or spatial disaggregation by
general categories of urban or rural areas with adjustments made for regional
price differentials. Yet for an individual city attempting to tackle the problems of
urban poverty, this level of aggregation is not sufficient for answering specific
questions such as where the poor are located in the city, whether there are
differences between poor areas, if access to services varies by subgroup, whether
specific programs are reaching the poorest, and how to design effective poverty
reduction programs and policies. They also stated that answering these questions
is critical, particularly for large, sprawling cities with highly diverse populations
and growing problems of urban poverty. Understanding urban poverty presents a
set of issues distinct from general poverty analysis and thus may require
additional tools and techniques. The study summarizes the main issues in
conducting urban poverty analysis, with a focus on presenting a sample of case
studies from urban areas that were implemented by a number of different

28. 28
agencies using a range of analytical approaches for studying urban poverty.
Specific conclusions regarding design and analysis, data, timing, cost, and
implementation issues were discussed.
Ramanathan and Dey (2006)
showed that there is an urgent need for a new and innovative strategy for urban
poverty reduction. They reviewed and analyzed the urban poverty situations of a
few developing and developed countries as well as the Urban Poverty Reduction
Strategies (UPRS) put forth in each country. Such an analysis of past strategies is
crucial because major social change can occur only when there is a willingness
to recognize and learn from past mistakes, so that they are not repeated.
Rakodi (2006)
found clear evidence from Asia, Africa and Latin America that the urban poor
have suffered disproportionately from the adjustment process. This is through
changes in prices (and reduction in subsidies), in particular increases in food
prices and service charges, restrictions on wage levels and reductions in
employment. This should not necessarily surprise us, as altering the terms of
trade between the urban and rural sectors was one of the main objectives of most
structural adjustment programmes (SAPs). Within sub-Saharan Africa since the
mid-1970s there has been a clear decline in urban wages in real terms combined
with and causing a large increase in poverty and vulnerable groups in urban areas
(Weeks, 1986; Amis, 1989). Similar processes have been documented for Latin
America and the Caribbean (Ghai and Hewitt de Alcantara, 1990). The evidence
from south and south-east Asia (including India) is, as we shall see less clear but
does seem to suggest similar trends (Harriss, 1989).
Bogorogile, Gobusamang (2008)
described the limitations of the housing policy in Botswana when dealing with
poverty alleviation. Botswana is faced with high levels of poverty that does not
conform to the country’s economic success since independence. Very few
opportunities exist for the urban poor to earn a living and work themselves out of
poverty. Efforts to address poverty in the past yielded mixed results and failed
the urban poor more especially that the interventions were biased towards rural

29. 29
areas. Evidence has been provided that housing has a critical role to play in
poverty alleviation. The Government of Botswana has put in place housing
projects (one of which is used for this enquiry) through which poverty can be
addressed alongside other human needs such as shelter. An enabling
environment has to be created for the successful exploitation of housing for
poverty alleviation. It is therefore imperative that the government ensures the
existence of such an environment.
Goyal and Gupta (2009)
in their study; “Sulabh International – social transformation through sanitation”,
mentioned that Much defecation in India still occurs in open spaces. But
pioneering work by Sulabh International, a non-governmental organization
(NGO), has shown that human waste can be disposed of affordably and in a
socially acceptable way. Sulabh’s approach is based on partnerships with local
governments, backed by community participation, and has substantially
improved environmental quality in rural and urban slums inhabited by poor
people. Improved and better sanitation condition is seen as a very important step
in the upliftment of lower socioeconomic class.
Amis (2010) synthesizes his previous work on urban poverty with an emphasis
being placed on the relationship between urban poverty and the labor market.
The themes considered include the distinction between permanent and temporary
poverty and between trends and shocks. A number of distinctive features of
urban poverty are discussed including the informal labor market, female headed
households, and the individualized nature of urban poverty and the greater
exposure of urban residents to environmental risks. A final section considers
policy implications, differentiating between promotive and protective strategies.
Chapter 3
Research Methodology

30. 30
3.1Research Design
Research methodology is the path through which researchers need to conduct
their research. It shows the path through which these researchers formulate their
problem and objective and present their result from the data obtained during the
study period. This research design and methodology chapter also shows how the
research outcome at the end will be obtained in line with meeting the objective of
the study. This chapter hence discusses the research methods that were used
during the research process. It includes the research methodology of the study
from the research strategy to the result dissemination. For emphasis, in this
chapter, the author outlines the research strategy, research design, research
methodology, the study area, data sources such as primary data sources and
secondary data, population consideration and sample size determination such as
questionnaires sample size determination and workplace site exposure
measurement sample determination, data collection methods like primary data
collection methods including workplace site observation data collection and data
collection through desk review, data collection through questionnaires, data
obtained from experts opinion, workplace site exposure measurement, data
collection tools pretest, secondary data collection methods, methods of data
analysis used such as quantitative data analysis and qualitative data analysis, data
analysis software, the reliability and validity analysis of the quantitative data,
reliability of data, reliability analysis, validity, data quality management,
inclusion criteria, ethical consideration and dissemination of result and its
utilization approaches. In order to satisfy the objectives of the study, a qualitative
and quantitative research method is apprehended in general. The study used these
mixed strategies because the data were obtained from all aspects of the data
source during the study time. Therefore, the purpose of this methodology is to
satisfy the research plan and target devised by the researcher. A research designs
is the arrangement of conditions for collection and analysis data in a manner that
aims to combine relevance to the research purpose with economy in procedure.
Research Design is the conceptual structure with in which research in conducted.
It constitutes the blueprint for the collection measurement and analysis of data.
Research Design includes and outline of what the researcher will do form writing

31. 31
the hypothesis and it operational implication to the final analysis of data. A
research design is a framework for the study and is used as guide in collection
and analysing the data. It is a strategy specifying which approach will be used for
gathering and analysing the data. It also includes the time and cost budget since
most studies are done under these two-cost budget since most studies are done
under theses tow constraints.
3.3 Data collection method
Secondary data: It refers to the data collected by someone other than the user i.e.
the data is already available and analysed by someone else. Common sources of
secondary data include various published or unpublished data, books, magazines,
newspaper, trade journals etc
The data those have been collected already and readily available from other
sources are called as secondary data. When compared to primary data, these
secondary data are cheaper and more quickly obtainable. Usually, desk-based
research is used to collect secondary data. After arriving at the secondary data,
the researcher should examine the validity and reliability. Thus, the researcher
should consider the secondary data which is highly valid and well-referenced in
academic articles.
Sources of Data
The study draws upon the data provided by the Department of Planning,
Government of Maharashtra and a number of micro-studies and evaluations
conducted by different institutions and individual researchers. The evaluations
and micro-studies which this study has drawn its data are:
• Joint Evaluation of Employrnent Guarantee Scheme of Maharashtra: Planning
Evaluation Organization, Planning Commission and Directorate of Economics and
Statistics, Government of Maharashtra (1976)

32. 32
• The Maharashtra Employment Guarantee Scheme: A Study of Labour Market
Intervention: Sarathi Acharya for the International Labour Organisation (1990)
• Rural Employment and Employment Guarantee Scheme in Maharashtra:
Madhusudan Sathe (1991)
• Maharashtra Employment Guarantee Scheme, Geographical Distribution of
Employment: Hannan Ezekiel and Johann C. Stuyt (1990)
• Is There a Case for the Employment Guarantee Scheme in India? Some Recent
Evidence: written by Raghav Gaiha (2003).
In addition to these field-level studies, the paper refers to data obtained through
the panel survey of two villages in Maharashtra, Shirapur and Kanzara,
undertaken by International Crops Research Institute for the Semi-Arid Tropics
(ICRISAT). Bhende and others (1990) and Walker and Ryan (1990) have
presented their findings on the EGS on the basis of this panel survey. The paper
has benefited from numerous other studies and published papers.
Most of the studies published on the EGS have been concerned with the
administrative and financial details of the scheme, and its impact on employment
and income. These studies have referred to insurance and stabilization functions
of EGS only cursorily. This paper focuses on these aspects, on the basis of data
from these reports as well as lessons from recent droughts in the state.
Chapter 4
DATA DESCRIPTION& ANALYSIS

33. 33
The MEGS: expenditure and employment generation from 1972-73 to 2004-05
From generating five million person-days of employment in the early 1970s,
employment through the MEGS rose to over 200 million person-days three
decades later. However, employment generated has varied significantly over
time. For instance, while the number of person-days generated through the
MEGS increased rapidly from 48.1 million in 1974–75 to a peak of 205.4 million
in 1979–80, it declined thereafter to 13.33 million in 1987–88 and further to an
all-time low of 7.80 in 1989-90. The sharp downtrend in expenditure in the late
1980s in the absence of significant alleviation of poverty in the state is a cause
for concern. One explanation for the sharp decline in person-days generated
under the MEGS is that for as long as activists have applied pressure (i.e. until
the mid-1980s), the MEGS was implemented effectively (Patel, 2006). There
was a sharp reduction in person-days of employment generated in the late 1980s
following the hike in the wage rate leading to ‘rationing of jobs’ and the poor
bore the brunt of the reduction. While 148 million person-days were generated in
1992–93, the rest of the decade saw a reduction in employment generation with
levels fluctuating around nine crore person-days. However, the turn of the
century saw a rise in employment generation under this scheme from 110 million
in 2000–01 to a provisional estimate of 220 million person-days in 2004-05 (See
Figure 1).
The slowing down of work under the MEGS has also resulted in significant
under- utilisation of the financial re+sources mobilised for the scheme. The

34. 34
unspent amount was Rs 5427.8 million at the end of March 2002 (Kulkarni 2006:
17 citing Planning Commission). This, at a prevailing wage rate of Rs 50 per day
could have generated additional employment of 100 million person-days.
Apparently, there is an implicit notion of rationing of work days so as to keep the
expenditure below a certain limit (Kulkarni, 2006:17). Krishnaraj et al., (2004)
see the failure of the MEGS expenditure to keep pace with the receipts as the
most significant leakage in the implementation of the scheme.
Prima facie, there may be three main factors responsible for the slowing down of
work under the MEGS, notwithstanding the unspent money earmarked for the
scheme. First, is growing economic diversification and increasing opportunities
in non-farm activities, especially in urban areas. Second, the scope for
undertaking productive work giving direct benefit to the landed households had
reached near saturation, especially in the heartland of western Maharashtra,
thereby resulting in reduced demand from the dominant agrarian class. Third,
and perhaps the most important reason, is the dilution of the grass root
movements, which played a crucial role in generating demand for work. Since
the scheme had emerged out of social mobilisation, and also allowed multiple
manifestations of movements, dilution of grass root mobilisation during the late
eighties and onwards dissipated the momentum for demanding work.
Did the MEGS reduce chronic poverty or enable escape from poverty?
The distinguishing feature of the MEGS is its commitment to reduce distress of
the poor and rights-based approach as the State guaranteed employment to all
able-bodied adults who articulated a willingness to undertake unskilled manual
work through a simple petition to the tehsildar. If at least 50 persons from the
same village are demanding work, then the work site has to be in the village
itself. It has been described as ’an innovative anti-poverty innovation’ (Gaiha,
2005) and as a ’unique programme for poverty alleviation through the provision
of employment and asset creation‘ (Krishnaraj et al., 2004). There is no
restriction for eligibility except that the person should be an adult. Hence, it
provided an essential safety net for the poorest. There are three important
features that make the MEGS a potentially powerful tool for poverty reduction:1

35. 35
• The self-targeting nature of the work and wages;
• universal applicability to ensure access to marginalised areas and communities
such as women, Scheduled Castes (SCs) and Scheduled Tribes (STs); and
• the creation of productive assets initially focusing on public resources,
(subsequently extended to private resources as well).
Several studies have addressed the issue of the impact of the MEGS on poverty
reduction (Ghaia, 1997; Hirway, 1988; Ravallion, 1997; Dev, 1995, 1996).
Citing Dev and Ranade (2001), Patel (2006) points out that whereas the scheme
has contributed significantly to drought relief and in reducing the severity or
intensity of poverty, its impact on poverty reduction measured through head
count ratio is, at best, limited. However, the gap between the very poor and the
poor narrowed especially in districts where MEGS-works have been
implemented over a long time. While amendments to the Act in 1988 and 1990
led to a decline in its outreach over time, Patel (2006) argues, ‘even where the
MEGS has directly benefited the landed class, it has been able to ward off
starvation deaths and give employment to the landless and small peasants.’
These findings are corroborated by Bhende et al. (1992) who use longitudinal
data for 40 households in two villages, Shirapur and Kanzara, for 1979–80 to
1983–84 to show the selftargeting nature of the MEGS, as wealth (total assets)
was strongly and inversely related to participation in the MEGS. However, they
also find that ‘though the earnings from the MEGS were heavily skewed towards
households below the poverty line, relatively few households were able to cross
the poverty line because of MEGS participation.’ They estimate that the MEGS
was responsible for five out of 41 households crossing the poverty line in 1979,
two out of 46 in 1980, three out of 40 in 1981, three out of 33 in 1982 and nil out
of 35 households crossing the poverty line in 1983 in both villages. While the
scheme was unable to make a significant dent on the prevalence of poverty, it
reduced the severity of poverty by ‘augmenting’ the incomes of the poor.
Among the reasons for families not being able to escape from poverty due to the
MEGS include low level of the wage rate, spells of unemployment between
MEGS-works and the fact that piece-rate payment is not suitable for the
physically weak (Gaiha, 1996). Using the International Crops Research Institute

36. 36
for the Semi-Arid Tropics (ICRISAT) panel data for 1979–1984 for the same
two villages, Gaiha (1996) points out that the dependence of those who
participated in the MEGS was ‘far from negligible’ and even if the MEGS did
not help many of them to ‘cross the poverty threshold, a large subset of those
who participated in it – especially the chronically poor – augmented their
household incomes more than moderately.’ He argues that since MEGS activity
is concentrated in agriculturally slack periods when employment opportunities
are few and far between, the contribution of the MEGS to household income and
welfare ‘would be even more substantial.’
Re-examining the issue through a survey in two villages in Ahmednagar district
in 1999– 2000, Gaiha (2005) argues that the ‘poverty alleviating potential of the
MEGS continues to be high in some of the least-developed regions because the
choices facing the poorest residents (e.g. Scheduled Castes/Scheduled Tribes)
during long slack periods are often grim, involving high search costs and low-
paid employment in distant areas’. He finds that ‘for most participants –
especially the poorest – the MEGS made a significant difference to their
economic well-being, helping them to avoid costly adjustments such as
liquidation of assets or taking loans at exorbitant rates of interest.’2 He suggests
that the high poverty alleviating potential of the MEGS in the two sample
villages could be because of their ‘pervasive poverty’ and since ‘alternative
options were few and far between.’
There are certain inherent components of the design which may constrain the
impact of the scheme on poverty reduction. For instance, the scheme by its very
definition is limited to manual work and excludes the non-working population
such as the old, sick, disabled, specific segments of women, and also the very
poor and weak who may not be able to undertake hard manual work on a
sustained basis.3
Secondly, the scheme was originally envisaged as a mechanism
for drought relief and did not focus on creating new and/or additional assets that
would yield adequate income for most parts of the year. The third and most
important is the criticality of socio-political forces, which operate as an essential

37. 37
precondition for demanding work. Often, the very poor, vulnerable, and those
facing physical remoteness are not able to organise a critical mass or socio-
political constituency to effectively put up the demand for work. Additionally,
there is lack of awareness amongst the potential beneficiaries of the round-the-
year guarantee component provided by the scheme (IGIDR Roundtable). Further,
some especially vulnerable groups, such as nomadic tribes, continued to migrate
despite the MEGS option, as recruiting agents offer advance payments because
the MEGS has no such provision or because they owed debts to the contractors
and the lumpsum advance payments were partially set off against the debt. Other
reasons included the risk of sudden stoppage of MEGS projects (Bagchee, 2005).
While the studies show that some people were able to cross the poverty line, the
impact of the MEGS on enabling the poor to escape from poverty was limited.
This is reflected in the high percentage of people below the poverty line in
Maharashtra, with estimates of poverty remaining above or close to the all-India
average (see Table 2). A similar picture is found while comparing the estimated
poverty gap between Maharashtra and All India. It is observed hat the estimated
poverty gap is higher in Maharasthra during three out of four years for which the
estimates are readily available; the only exception is 1983. Strangely, the
estimates suggest worsening of the relative position of Maharashtra in terms of
the poverty gap after 1983. The poverty gap in the state however, has reduced
from 11.95 in 1983 to 6.4 in 2004–05.
Table 2: Percent population below the poverty line in Maharashtra and All India
Maharashtra All
India
1973–74 53.24 54.88

38. 38
1977–78 55.88 51.32
1983 43.44
(11.95)
44.48
(12.36)
1987–88 40.41 (9.56) 38.86
(9.29)
1993-94 36.86 (9.3) 35.97
(8.5)
1999–2000
(different
method)
25.02 26.1
2004–05 30.7 (6.4) 27.5
(5.8)
Source: Government of India (2007a)
Note: Figures in parentheses are estimates of poverty gap, obtained from Table 1
in Himanshu (2007).
Obviously, the outcomes, particularly in the post-nineties are found to be less
satisfactory if one looks at the impact beyond drought relief (Dev and Ranade,
2001). Besides, there are the usual problems of corruption, the weakening of
political commitment or rationing of funds, and procedural hitches that may limit
the impact of the MEGS as in the case of any other project or scheme. However,
Gaiha (2005) cites Scandizzo et al. to argue that the MEGS provides an income
stabilisation role and reduced the variability of labour earnings. His recent
surveys in the Ahmadnagar district also ‘confirm that the MEGS facilitated
income – smoothing among poor households and prevented them from making
costly adjustments (eg, cuts in food expenditure, sale of livestock and/or loans at
exorbitant rates of interest) during slack months.
Vatsa (2005) argues that while the MEGS unambiguously reduced poverty, its
record on bringing people above the poverty line has been inconclusive. Citing
Acharya and Panwalkar (1988), in which a sample of 100 households with

39. 39
workers on the MEGS was compared with another sample (of 100 households)
from similar socio-economic backgrounds and whose members never
participated in the scheme, he notes that ‘the average annual wage income of the
MEGS household was Rs 32 higher than the wage income of non-MEGS
households. However, the total average income of MEGS households was still
about Rs 3,000 less than the poverty line. Almost the same conclusion was
evident in the study conducted by Datar (1986). Though per-worker income
earned from the MEGS was much higher in Datar’s sample (Rs 820 per annum)
compared to Acharya and Panwalkar’s (Rs 286 per annum), it was still not
sufficient to cross the poverty line’. Vatsa’s explanation for the MEGS not being
able to lift a family out of poverty is that it is only a means of supplementing
income and may not provide employment for more than 200 days a year. He also
mentions the role that the MEGS played in preventing starvation as during the
2003–04 drought, the continuous availability of foodgrains through the MEGS
ensured that there was no mass deprivation or starvation death in the drought-
affected areas.
However, the issue highlighted by Krishnaraj et al. (2004) is whether the MEGS
should continue to be used as a relief operation or be extended to fight poverty?
For if it is to be used to fight poverty, then merely providing a few days or weeks
of employment or evaluating impact in terms of person-days of employment
generated is not enough. In any case, long-term poverty reduction would require
sustained public investment in various aspects of the agriculture sector, skill
upgradation to enable diversification to more remunerative employment outside
agriculture, and strengthening of social safety mechanisms such as a public
distribution system for food and other essentials; access to drinking water and
health services at affordable costs; and of course, protection against crop failure
or market fluctuations (Vaidyanathan, 2006).
What have been the implications of MEGS on gender issues - coverage of
women workers, work conditions, equal wages
Women have been the major beneficiaries of this scheme since its inception as
the scheme guarantees work for all those who demand it. Krishnaraj et al. (2004)
use the Government of Maharashtra’s data for 1995–96 to 1999–2000 to show
that the percentage of female person- days generated under the MEGS varied

40. 40
between 38 percent in 1995-96 to 73 percent in 1998–99. Estimates were around
or above 50 percent in four out of the five years for which they collected data.
Table 3: Region-wise percentage of female person-days generated under the
MEGS in
Maharashtra, 1995–96 to 1999–2000
Division 1995-96 1996-97 1997-98 1998-99 1999-2000
Konkan 41.1 58.99 49 73 60
Nashik 26.85 59 49 73 60
Pune 35.8 59 49 72.99 64.12
Aurangabad 49.74 59 49 73 52.1
Amravati 20.52 59 49 73 60
Nagpur 33.17 59 49 73 60
Total for State 37.94 53.54 49.00 73.00 57.89
Source: Krishnaraj et al. (2004) based on Planning Department (MEGS),
Government of Maharashtra
Krishnaraj et al. (2004) strike a note of caution for although employment and
income opportunities under the MEGS represent important economic gains for
women, these do not automatically lead to increased access to money as the
methods of measuring work payment do not ensure precision or transparency.
Since work is done by a group of both men and women, the calculation of the
individual share of wages, especially of women is somewhat subjective and
depends on the team leader who is usually male, as well as the other coworkers
The record of employment available with the Implementing Agencies and later
on submitted for consolidation to the Collector’s Office is in the form of
male/female person-days generated fortnightly on site. This unit of measurement
of employment, namely, person-days, does not tell us the number of men/women
who worked on site and the number of days they worked. For example, the
figure, ‘90 female person-days’, fails to tell us whether 15 women worked for six
days or whether six women worked for 15 days. Further, they were able to
collect data only by going to worksites while the project was in progress. Muster
rolls were almost impossible to trace after the period of 15 days required for the
payment of wages

41. 41
They also point out that certain features of the MEGS, such as the availability of
work close to the village, are important for women as are special MEGS
provisions such as shelter, drinking water and crèches. However, many of these
are not provided. Similarly, maternity benefits have never reached women as
eligibility for this benefit requires proving 75 days work. ‘With insecure
employment, shifting work sites and inadequate records a woman has no way of
showing the stipulated days of work. Had she been given an ID card and work
registration of which she could have a copy, she would have proof of days
worked.’
Was there spatial concentration of MEGS-works? Did the scheme
benefit poorer areas?
It is argued that the major benefits of the MEGS have been limited to certain
geographical pockets. The backward regions and tribal belts in particular have
not benefited much from the MEGS (IGIDR Roundtable). According to Dev and
Ranade (2001:298), during 1989–90, as large as 66 percent of the person-days of
employment generated were concentrated in about 10–11 districts located mainly
in western Maharashtra (See Table 4). Viewed in light of the central focus on
drought relief at the time of formulating the scheme, the spatial concentration in
drought-prone districts in the western region stands justified. Also, this region
has larger proportion of agriculture labourers to the total workforce as compared
to other regions (Dev and Ranade, 2001).
Table 4: MEGS employment share of top 11 districts
Year Percent Year Percent
1984–85 73.33 1991–92 64.82
1985–86 75.88 1992–93 70.27
1986–87 76.01 1993–94 71.37
1987–88 72.94 1994–95 73.09
1988–89 72.80 1995–96 74.86
1989–90 65.07 1996–97 73.37
1990–91 61.51 – –

42. 42
Source: Dev and Ranade (2001). Computed from the data from Planning
Department, Government of Maharashtra.
Estimates in Table 5 based on data in Datar (2006) show that the largest share of
MEGS expenditure was in Aurangabad. Within the region of Aurangabad,
MEGS-works were concentrated in the districts of Osmanabad, Beed,
Aurangabad and Jalna.
Table 5: Regional share of MEGS expenditure (percent)
2000–01 2003–04
Konkan 11.73 5.20
Nasik 19.35 15.18
Pune 9.12 27.72
Amaravati 11.82 5.59
Nagpur 13.62 11.46
Aurangabad 34.36 34.86
Total 100.00 100.00
Source: Estimated based on Datar (2006).
Using the information provided by Ezekiel and Stuyt (1990), Dev and Ranade
(2001) and Government of Maharashtra (2003–04), Vatsa (2005) identifies six
districts as high MEGSemployment districts. The six districts common to all the
lists and where demand for MEGS employment is consistently high are: Solapur,
Ahmednagar, Osmanabad, Beed, Aurangabad and Nashik. He uses a map to
show that a large part of these districts fall in the rain shadow area of the state.
Figure 2: Map showing drought-prone blocks or rainshadow area in Maharashtra

43. 43
Source: Vatsa (2005) based on Maharashtra Remote Sensing Applications Center
(MRSAC), Nagpur.
According to Vatsa (2005), ‘the districts in the Konkan division (Raigad,
Ratnagiri, and Sindhudurg) and in Kolhapur in Western Maharashtra receive
high average rainfall, and the demand for MEGS employment is never high in
these districts. Thane, being part of the urban agglomeration of Mumbai is
highly industrialised, with reduced demand for employment under the MEGS.
Most of the MEGS employment is concentrated in two blocks of the district
(Jawhar and Mokhada), which are predominantly tribal (Dev and Ranade, 2001).
Pune, Satara, and Nashik districts contain a transition zone in the western parts
of these districts that receive between 1000–2500mm of annual rainfall.
Increases in irrigable lands and industrial employment in these districts have also
dampened the attendance under the MEGS. However, the eastern parts of these
districts lie in the rain shadow area, and when rains fail, the demand for MEGS
employment in these parts goes up.
The Sangli and Dhule districts are in an anomalous situation. Despite being a
drought-prone district in Western Maharashtra, the MEGS attendance in Sangli

44. 44
has never been high, largely due to its prosperity on account of sugar mills, dairy
and horticulture plantations. The situation changed in 2003 when successive
droughts brought a dramatic increase in the number of people employed on
MEGS-works in the Sangli district. Dhule, in Northern Maharashtra, which has
an average annual rainfall of only 674 mm, forms part of the drought-prone
group of districts. Since 1975, the growth of the MEGS in Dhule has been rapid,
but it declined in the 1990s, largely due to consistently ample rains in the district.
To the extent that the low employment generation in other parts of the state is a
result of the limited requirement for MEGS employment, the spatial
concentration could be treated as effective geographical targeting of the scheme.
The evidence in a number of studies supports this phenomenon by highlighting
the negative association between rainfall, land productivity and MEGS
employment across districts in the state. In a sense, this reinforces the focus on
drought-relief, which was of course the initial trigger for envisaging the scheme.
Later on, the scheme assumed a more broad-based applicability, cutting across
all the districts in the state. In this sense, the self-targeting in drought-prone areas
may have missed out some of the poorer areas, especially those in sub-
humid/humid regions and areas with a higher concentration of tribal population
in the state (Shah, 2006). This does not completely rule out fact that the scheme
has bypassed many of the rural poor as it did not provide employment
opportunities at the time and place required for ameliorating chronic poverty.
Krishnaraj et al. (2004) argue that no predefined criteria are used for inter-district
allocation of MEGS funds. Allocations seem to be based on the previous year’s
allocation and the prevalent agro-climatic conditions. In this sense, low coverage
in some of the tribal dominated districts with high incidence of poverty, such as
in Nandurbar and Amarawati, is worth noting. The relatively low coverage of the
MEGS in this region may be explained by the fact that the region consists of
large tracts of forest land under the ownership and control of the Forest
Department in the state (Vatsa, 2005). This issue has been addressed during the
recent modification in the provisions of the Act.

45. 45
Il. The Employment Guarantee Scheme: Its Evolution and Entitlements
The EGS in Maharashtra grew out of pilot experiments conducted in Tasgaon
block of
Sangli district in 1965. Initially known as Page scheme, named after V.S. Page,
the Gandhian leader and Chairman of State Legislative Council, it was expanded
to cover I l districts of the state in November 1970. The scheme was finally
launched for the entire state on May l, 1972. Soon after its statewide adoption,
the EGS was suspended during the peak drought period of late 1972 to early
1974. During this period, EGS was superseded by central government programs,
particularly the Crash Scheme for Rural Employment. The EGS was resumed
two years later, when the state leadership felt the need to set up a permanent
scheme for protecting vulnerable groups and creating assets that would reduce
the effects of future droughts (Dev, 1995a).
The Government undertook to provide statutory support to the EGS through the
enactment of the Maharashtra Employment Guarantee Act, 1977, which came
into force on January 26, 1979. 8
The EGS follows a right-based approach for
providing rural employment on demand as expressed through the slogan, "magel
tyala kam" ("whoever desires work will get it"). It is considered to be probably
the most successful example of public works program in developing countries,
sustaining itself as both a social safety net and a poverty reduction program for
almost three decades.
The EGS provides manual employment to all able-bodied adults of villages and
'C' class municipal towns of Maharashtra who are willing to work on public
works within a radius of 8 kilometers. If the work site falls beyond this distance,
then the EGS act provides camp arrangements and travel expenses. The
guarantee to provide work has been restricted to unskilled manual work. The
fundamental objective of the scheme is that on completion of the works
undertaken, some durable community assets should be generated and that the
wages paid to the workers should be linked with the quantity ofwork done.
The EGS gives priority to those works which contribute to drought mitigation in
the State. Most of the EGS works therefore relate to water conservation projects
(irrigation projects, percolation and stoiage tanks, and underground bandharas) ,
soil conservation and land development works, and afforestation and social

46. 46
forestry, though rural road building is also undertaken extensively through the
EGS. The works which have unskilled component of more than 60 percent of the
total cost are permitted under the EGS, though these norms have been relaxed for
internal roads and percolation tanks from 60•.40 to 51:49.
The works are implemented through various government departments and
agencies, like Agnculture, Irrigation, Public Works, Forest and Zilla Parishads
(District Councils). These departments maintain muster rolls for engaging labor
on their works. The EGS workers are, however, not paid on the basis of their
daily attendance; rather, it is linked to the quantity of work done. Wages are set
in the form of piece rates, stipulating rates of pay for a large number of specific
tasks, such as digging, breaking rocks, shifting earth, and transplanting. These
piece rates are fixed in such a way that an average person working diligently for
seven hours a day should earn equal to the minimum wage prescribed for
agriculture labor under the minimum wages act.
The Performance of EGS in Maharashtra
Due to statutory support and a strong implementation structure, the EGS has
become a very important intervention for poverty alleviation and drought
mitigation in the state. Approximately Rs. 10,000 crores (100 billion) has been
spent on the program since its inception. The program generated 3700 million
man-days of employment since its beginning, making it one of the largest public
works program anywhere in the world.
The wage ratio in the entire expenditure under the EGS has been above 75
percent till 1983-84. It declined thereafter till 1995-96, and the importance of
skilled components increased. 13
As it went against the program's objectives of
providing manual employment, the trend has been corrected. Since 1996-97, the
proportion of wages in the total expenditure has increased consistently, from 70
Percent to 80 percent.
In Konkan region, known for its crop of Alfonso mangoes, the minimum area is
0.1 hectares.

47. 47
12 Increasing expenditure on skilled components showed greater use of machines in
earthwork and road construction, and engagement of contractors through
backdoor.
Table 1: Total Expenditure, Wage Expenditure and Person Days Generated under
EGS 1972-2001
Table 1: Total Expenditure, Wage Expenditure and Person Days Generated under
EGS 1972-2001

48. 48
Year Budget
Provision
Million)
Total
Expenditure
Million)
Expenditure on wages Person
Days
Generated
(Million) Cost per Person Day
Av
Wage/Person Day
RS
Million
As Per
Cent of
Total Exp
Current
Prices
1993-94
Prices
Current
Prices
1960-61
Prices
(Rs.)
1972-73
1973-74
1974-75
1975-76
1976-77
1977-78
1978-79
1979-80
1980-81
1981-82
1982-83
1983-84
1984-85
1985-86
1986-87
1987-88
1988-89
989_90
1990-91
1991-92
1992-93
1993-94
1994-95
1995_96
1996-97
1997-98
1998-99
1999-2000
2000-01*
2001-02*
2002-03
2003-04
22.30
37.10
150.00
304.90
500.00
550.00
706.30
1004.00
1 109.00
1 160.00
1256.60
1573.40
1557.40
2465.50
2260.80
2652.40
2500.00
2315.40
2369.70
3109.50
4532.30
3136.20
413 1.50
4500.00
4182.50
3600.00
4890.00
4952.60
6670.30
6691.00
8500.00
1050.00
18.80
18.90
137.20
346.10
51 1.00
515.40
741.70
1092.30
1221.20
1261.70
1309.30
1849.80
2320.40
2722.00
2434.30
2883.10
2542.30
2392.80
2389.20
3199.20
4527.20
3473.40
3840.90
4437.50
3667.50
3530.00
4566.60
4939.70
5780.00
9 146.50
8890.00
1051.52
314.80
383.50
381,30
590.30
894.50
926.90
980.90
997.80
1393.70
1477.70
1819.90
1543.70'•
1533.60
1262.60
1234.00
1348.20
2020.00
2730.00
1830.00
2685.50
2695.60
2567.30
2576.90
3242.30
3704.80
4392.80
7317.30
5509.00
930.21
90.95
75.04
73.98
79.58
81.89
75.90
76.20
75.34
63.68
66.85
63.47
53.19
50.00
53.30
57.37
63.14
60.30
52.69
69.92
63.00
70.00
73.00
71.00
75.00
76.00
80.00
80.00
88.00
5
5
48
110
137
117
164
205
172
156
128
165
178
190
188
133
81
78
90
1 19
148
98
94
97
90
90
92
95
111
162
154
169
4.18
3.71
2.85
3.16
3.74
4.39
4.54
5.32
7.12
8.09
10.23
1 1.24
13.04
14.37
12.98
21.63
31.27
30.68
26.61
26.79
30.59
35.30
40.77
45.75
40.70
39.22
49.69
52.05
52.55
56.56
57.54
62.18
23.84
18.31
12.1 1
13.35
14.87
16.70
16.52
17.1 1
19.94
20.99
25.72
26.19
28.64
29.39
25.05
37.85
50.19
45,91
35.95
31.96
33.70
35.30
36.31
37.44
31.48
28.72
34.45
34.28
2.81
3.25
3.61
4.36
5.40
6.28
7.80
8.41
8.30
9.60
8.23
9.1 1
15.02
15.53
15.02
16.91
18.45
18.60
28.51
28.82
28.49
28.63
35.28
39.04
39.50
45.28
47.00
0.91
1.01
1.16
1.24
1.41
1.36
1.74
1.68
1.61
1.79
1.44
2.21
2.07
1.97
1.71
I .60
1.80
2.29
1.93
1.90
1.88
2.09
2.23

49. 49
Source: Human Development Report Maharashtra, 2002 and Department of
Planning, GOM, 2003
Wages under the EGS too have shown steady increase over the years. In 1975-
76, the average wage per person was about Rs. 3, which has increased to an
amount between Rs. 46 and Rs. 51 presently (around US$I) in line with inflation.
4
Real wages (at 1960-61 prices), however, did not increase until 1988, when the
piece rates were doubled following a doubling in statutory minimum wage rates
(Ravallion and others, 1993). Since then the EGS rates has followed the statutory
minimum wages in the state.
Table 2: Year-wise Maximum, Minimum, Per Day Labour Attendance and Person
Day Labour Generation under Employment Guarantee Scheme
Sr. No. Year Labour Attendance Peron Day Labour
(In Lakhs) Generation
(1 Lakh= .1 million) (In Crore)
(1 Crore= 10 m.)
4 1975-76 5.33 1.9 3.31 10.95
5 1976-77 7.16 2.94 4.56 13.65
6 1977-78 6.2 2.32 3.91 11.73
7 1978-79 8.94 3.55 5.45 16.35
8 1979-80 9.56 4.43 6.85 20.54
9 1980-81 9.2 2.96 5.7 17.15
10 1981-82 9.06 2.91 5.2 15.6
1 1 1982-83 7.28 3.51 4.68 12.8
12 1983-84 8.14 2.82 5.52 16.45
13 1984-85 7.58 4.73 5.98 17.8
14 1985-86 7.86 4.75 6.32 18.95
15 1986-87 10.61 3.74 6.26 18.76
16 1987-88 8.24 1.93 4.55 13.33
17 1988-89 6.1 1 2.71 8.13
18 1989_90 5.82 1.17 2.75 7.8
19 1990-91 3.46 0.82 1.82 8.98
20 1991-92 5.35 1.04 2.6 11.94
21 1992-93 9,01 1.24 3.8 14.8
22 1993_94 3.91 1.01 2.19 9.84
23 1994_95 2.93 1.04 1.89 9.42
24 1995-96 3.5 0.89 1.9 9.7
25 1996_97 1.86 0.49 1.02 9.01
4
Wages under the EGS are linked to piece rates. Wages varied in proportion to the work actually done.

50. 50
26 1997_98 1.43 0.53 0.96 9
27 1998_99 2.48 0.42 1.2 9.19
28 1999-2000 1.97 0.57 1.19 9.49
29 2000-2001 4.35 0.67 1.7 11.12
30 2001-2002 5.85 1.69 3.02 16.17
31 2002-2003 5.33 I .03 2.61 15.45
32 2003-2004 9.39 3.1 1 5.76 16.91
Starting with 5 million person-days in the first two years, the EGS started
providing employrnent on a large-scale from late 1970s. In 1985-86, it reached a
peak of 190 million person-days, but employment under the EGS started
declining thereafter. Ravallion and others (1993) suggest that increase in the
EGS wages rates in 1988 brought some rationing in employment. The workers'
attendance increased again during 1991-92 and 1992-93, but since then it
averaged between 90 and 100 million person-days till 2000. As the state faced a
severe drought from 2000-01 onwards, the total employment created under the
EGS consistently exceeded 100 million person-days. EGS has been one of the
most important sources of employment for the rural non-agricultural casual labor
which are among the poorest segments in the state (Acharya 1990).
Till March 2003, altogether 430,201 projects of different types were started
under the EGS. Out of these works, 408, 140 works have been completed. The
sectoral composition of these works, which has been given in the following table,
shows that the EGS has targeted agriculture-based works and assets which
enhance the productivity and improves rural infrastructure.

51. 51
Table 3: Statement showing works started and completed
since the Beginning of EGS to March 2002
1 Irrigation 51,760 48.208
2 Soil Conservation
& Land
Development
267,818 260,732
3 Forestry 33,518 30,599
4 Roads 61,367 53,021
5 Other works 15,738 15,580
Total 430,201 408,140
.
Source: Department of Planning, GOM, 2003
The sectoral composition of EGS changed considerably over the years. In 1974-75, the main
objective of EGS was drought-proofing, with 78 percent of expenditure committed to irrigation, 12
percent to soil conservation and land development, and about 3 percent to afforestation. Thus
nearly 93 percent of total expenditure was directly related to droughtproofing. In 1980s, roads
emerged as the most significant EGS works, claiming 40 percent of the total expenditure under the
scheme, a steep increase from 6 percent of the total in 1974-75. In 1987-88, a government order
brought the percentage of expenditure on road at less than 25 percent (Dev, 1995b). In 1990s,
while schemes in irrigation, agriculture and forestry sectors broadly supported soil and water
conservation programs, the most significant change has been increasing commitment of EGS
allocations to individual asset-building such as wells and plantations in 1990s (see the table
below). The percentage share of these individual asset-building schemes in total EGS expenditure
has been on an average about 25 percent in the last 10 years, which suggests a major shift in the
program strategy of the EGS.
Table 4: Percentage of Sectoral Distribution of EGS Expenditure since 1990-91
Sr. Type of Work Works started since the
No. beginning of EGS (Temporary)
Work started work complete

52. 52
100%
1990_91
14.7 13.4 16.5 19.3 22.6 13.5 (238.92)
100%
1991-92 14.9 15.6 15.5 19.6 1 1.5 22.9 (319.92)
100%
1992-93 18.8 20.7 11.4 21.6 10 17.5 (452.72)
100%
1993-94 18.1 19.3 1 1.5 19.4 6.4 25.3 (347.64)
100%
1994-95 14.3 23.2 8.8 15.2 17.2 21.3 (384.09)
I00%
1995-96 13.1 26.8 7.1 1 1.6 17.7 23.7 (443.75)
100%
1996-97 14.9 14.2 8.3 14.3 8.5 39.8 (366.75)
100%
1997-98 17.1 8.6 11 16.6 12 34.7 (353.00)
100%
1998-99 16.7 6.8 1 1.6 23.4 7.8 33.7 (456.66)
100%
1999-2000 11.9 6.7 1 1.6 27.2 13.8 28.8 (493.97)
100%
2000-2001 9.1 13.8 12.9 28.2 9.5 26.5 (578.00)
100%
2001-2002 21.5 13.6 1 1.2 32 4.8 16.9 (914.65)
100%
Irrigation Agriculture Forestry Roads Other
Salary
Allowances
Labour
Horticulture,
Jawahar Wells
Total

53. 53
2002-2003 12.3 26.3 9.7 28.3 8.1 15.3 (889.00)
Ill. Impact of EGS on Employment and Income at the State and
Household-level
Different studies suggest a very positive impact of EGS on rural employment in
Maharashtra. According to the World Development Report 1990, the EGS
provided 180 million person-days of employment, representing 3 percent of total
rural employment. Osmani (1991) concludes that the EGS was able to eliminate
about one-third of underemployment in the state. Acharya (1990) suggests that
between 1977-78 and 1983, there is a definite rise in the proportion of work /
days in this category from 2.97 to 5.37 percent. Part of this can be attributed to
the EGS since, over this period, employrnent under the EGS had increased from
an average of 319,000 persons per day to 552,000 per day (Acharya, 1990: p.
29). Dev estimated that in the absence of EGS, unemployment among rural
workers would have been up by 2.5 percent. The impact of EGS is reflected in
the fact that the incidence of unemployment declined much quicker in
Maharashtra than in India as a whole. The decline was particularly significant
between 1983 and 1987/88 (Dev, 1995b, p. 119).
Table 5: Person-day Unemployment Rates for Rural Areas: Maharashtra
and all India
Years
Maharashtra
Rural Male Rural Female Rural Male
India
Rural Female
1972-73
1977-78
1983
1987-88
1993-94
1999-00
7.7
5.9
6.3
2.9
4.6
6.3
11.7
9.3
7.2
3.5
4.0
6.9
6.8
7.1
7.5
4.6
5.6
7.2
11.2
9.2
9.0
6.7
5.6
7.0
Note: Unemployment rate is defined as the ratio of unemployment days to labor
force person days. Source: Economic Survey of Maharashtra, 2001-02 (GOM,
2002)
At the micro-level, various studies find the provision of person-day employment
in a year varying from 25 in GOI (1980) to 160 in Dandekar (1983). A study on
ICRISAT villages-- Shirpur and Kanzara-- shows that the EGS provided about

54. 54
20 percent of the total employment in Shirpur and 10 percent in Kanzara in the
five-year period from 197980 to 1983-84 (Bhende, et.al.). In another study, Datar
(1987) reported that EGS contributed 50 percent of the total employment in the
survey villages. Similarly, Gaiha (2003) found that most of the respondents in
two survey villages in Ahmednagar district participated in the EGS. Important
reasons for participation in the EGS are lack of other employment opportunities
in these villages, long slack period, travel costs involved in searching jobs in
neighboring villages and lower net earnings. Since EGS offered wages on the
basis of piece rates, the villages also expect to earn more on the basis of the
quantity and quality of work. EGS was preferable for female participants too
since it allowed them to work with their husbands.
Datt and Ravallion (1992) also confirm the positive impact of EGS on both
employment and transfer benefits. Using the same data set of two ICRISAT
villages mentioned above, they conclude that the opportunity cost of EGS is low.
5
For Shirapur, the main activity displaced for employment under the EGS is
unemployment for males and leisure / domestic work for females. The pattern is
rather different in Kanzara, where nearly a third came out of other wage labor
time, and a quarter was from own farm activities. Foregone incomes are
estimated at 21 percent of gross wage earnings from public works in Shirapur,
and 32 percent in Kanzara. Net transfer benefits from public works generated on
average (for participating household-years) a 10 percent increase in pre-transfer
earnings in Shirapur, and a 7 per cent increase in Kanzara (p. 21).
Table 6: The Percentage of Below Poverty Line Families: Maharashtra and all
India
Year Maharashtra All
India
1973-74
1993-94
1999-00
57.71
37.93
23.72
56.44
37.27
27.09
Source: Economic survey of Maharashtra, 2001-02 (GOM, 2002)
5
It refers to foregone income that workers could be getting from other sources of employment.

55. 55
The Impact of EGS on Vulnerable Groups
A number of studies have pointed out that the EGS has been successful at
targeting vulnerable groups. According to a field study conducted by Dandekar
and Sathe (1980), 90 percent of workers in their 1978-79 survey of 1,544 EGS
participants spread over 56 projects were living below the poverty line. About 45
percent of them were landless laborers. The remaining included 42 percent who
had less than 5 acres of unirrigated land. Only 3.5 percent had more than 10
acres of land, which too could produce little because of uncertain rains and
irrigation conditions. In the studies conducted by Acharya and Panwalkar (1988)
and Datar (1987), the percentage of landless laborers among the EGS
participants is 34 and 35 percent respectively, while the category of small and
marginal farmers constitutes 46 and 47 percent.
Bhende and others (1990) also confirm the targeting performance of the EGS
using household-level data over five years, 1979-83, for two Maharashtra
villages, Shirapur and Kanzara. Wealth in the form of total assets was strongly
and inversely related to participation. The size of that relationship was
particularly large for women: as wealth increased, women's participation fell off
more sharply than men's in both Shirapur and Kanzara. The efficiency of self-
targeting was greater for women than for men within each village.
Under the EGS, the non-target group workers constitute between 20-30 percent
of the total workers (Acharya, 1990). Such participation actually serves the
scheme's objective. The EGS provides employment not on the basis of poverty,
but on the basis of employment needs which could be created by poor crops or
any other adverse condition. Since the wages are low, only those who genuinely
need the EGS employment join it. It thus becomes a self-targeting scheme.
Right from the beginning, the EGS attracted large-scale participation of women,
and it is known as a program of women. In 1979 and 1980, the official figures
showed that female workers constituted 43 and 41 percent of the total attendance
under the EGS, though the field observations showed that the number of female
workers predominated in most works (Dandekar, 1983). The ISS study (1979)
too states that the site figures reveal a higher percentage of female participation
(varying from 50 to 72 percent) than the official state level figures. The PEO

56. 56
study (1976) shows women's participation to be 57 percent, while Datar's study
(1987) reported female participation as varying between 45 and 64 percent.
There are several reasons which encourage women's participation in the EGS.
First, the EGS provides work close to the village, where women can work
alongside the family. Second, the EGS does not require special skills, and
women are predominantly casual unskilled workers. Third, the EGS offers
women employment on equal wage conditions with men, and there is no
discrimination in recruitment. Finally, certain facilities such as provision of
shelter, drinking water and créches for children are provided in the EGS, which
make it easier for women (Krishnaraj, et.al., 2004; Engkvist, 1995). Further,
women have positively gained from the EGS. Dandekar reports that participating
women's income from the EGS represents on average 73 percent of total income,
and as much as 31 percent of total family income, while Datar concludes that
EGS contributes to 60 percent of participant women's real income (Dandekar,
1983, cited in Engkvist, 1995; Datar, 1987). Availability of EGS employment
also enables women to avoid seasonal migration (Ranade, 1998).
The EGS's record in providing employment to tribals has been mixed. While the
EGS has been able to provide employment to tribals on a large scale in the
predominantly tribal Talukas of Jawhar and Mokhada of Thane district
(Deshpande, 1982), it has not been very successful in Melghat areas of Amravati
district or Nandurbar district. One of the likely reasons for low employment is
that most of the lands in tribal areas are owned by forests which make it difficult
to start works under the EGS.
3.4 Did the MEGS lead to increased bargaining power of labour and rise in wages?
Wage rate is one of the tricky issues influencing the poverty reducing impact of
the MEGS. The wages, based on a piece-rate formula, worked out to be lower
than the minimum wage rate prevailing during the initial phase6
. The low wage
rate/earnings per day worked as a double-edged weapon; on one hand, it helped

57. 57
the scheme to retain its self-targeting character. On the other hand, it resulted
into poor outcomes with respect to poverty reduction. Subsequently, the wages
were brought on par with minimum wages for agriculture workers. This resulted
in almost doubling of the wage rate during 1988–89 (see Table 6).
Table 6: Average wages per person per day
Year Average wage/ Day Rs Average labour days/year
(in lakh)
1976–77 2.81 4.56
1987–88 8.23 4.55
1988–89 15.02 2.71
1993–94 18.60 2.19
1994–95 28.51 1.89
1998–99 35.28 1.2
1999–2000 39.04 1.19
Analyses in the past have clearly indicated low wages having led to limited
impact on poverty reduction, notwithstanding the significant welfare enhancing
impact of the scheme. According to Ravallion (1997), given the limited budget,
low wage rate has resulted in an almost insignificant impact on poverty
reduction. Theoretically, this makes a strong case for limited coverage, if the aim
is to target the very poor segment of the population. But this kind of targeting is
inconsistent with a scheme, which is demand-driven and broad-based.
However, over time, the scheme has resulted in boosting agricultural wages. In
turn, it may have significant impact on poverty reduction. According to Gaiha
(1997), EGS had resulted in a 18 percent increase in agriculture wage rate in the
long term. This has been realised through three important routes: 1) increased
demand for labour, owing to an increased productivity of land; 2) higher
reservation wage rate due to the availability of off-season work; and 3) enhanced
bargaining power because of collective strength.7
A recent study observed that
the outcomes, with respect to increased bargaining power among rural workers,

58. 58
depended essentially on village level dynamics, awareness about rights, and
support from grassroot organisations/social movements (Savale, 2006).
4.2 Major outcomes
The intervention resulted in concrete actions. Each person who demanded work
was given a card. A work plan was prepared, ensuring that the specific needs of
all persons demanding work were taken into account in terms of the duration of
work, nature of work and amenities required at the work site. The application
form made a clear mention about unemployment allowance in case the
authorities failed to provide work for all those demanding it, within a stipulated
period of time.
The organised intervention made a special impact on the local authority, who
noted that it is for the first time that a group of literate and informed individuals
had approached them with a demand for work. The result was that work was
provided for all those demanding it during the time of distress, when cash
income was needed for meeting basic needs.
This resulted in nearly full utilisation of the scope for employment generation
under the work plan, which consisted of the construction of new roads, widening
of the old roads, farm ponds, and a minor irrigation dam. Figure 4 presents a
comparative picture of the capacity utilisation over four years
Figure 4: Utilisation of employment capacity of the works
0
20
40
60
80
100
2000 2001 2002 2003
Period
Igatpuri Traimbakeshwar

59. 59
An important feature of the process of community mobilisation was the
involvement of a member of the Panchayat Samiti who had an earlier association
with Shramjivee Sangathan. The fact that an elected member had presented a
specific demand for work and was closely involved in the entire process of
preparation of the application, monitoring of work, and timely payment etc.
provided immense strength.
His participation in the capacity-building workshop organised by VACHAN may
have worked as an important catalyst for his proactive initiative in the process.
Access to the right kind of information may also have played an important role in
the effective involvement of the local community.