EXECUTIVE SUMMARY

I Main Findings

A Positive Aspects

    1. According to the estimates of the Planning Commission, there has been a decline in the number of rural population Below the Poverty Line (BPL) in India from 261 million in 1973-74 to 244 million in 1993-94. The ratio of poverty also declined from 56.4 per cent in 1973-74 to 37.3 per cent in 1993-94 (Table 1.1).

    2. Available indications from the selected districts across the states indicate that various policy initiatives as well as development programmes undertaken by the central and state governments have not only arrested but also decreased the number of BPL households. In fact, in the selected districts, wherever comparable data were available, the decline in BPL households was to the extent of 4049 per year during the period 1992 to 1997 (Table 2.1).

    3. Qualitative aspects having direct bearing on the lives of the people were observed from the availability of facilities of formal education in primary, secondary and higher secondary schools in all the selected districts. Adequate other infrastructural facilities, in terms of rural electrification, and availability of banking, communication and health facilities were also available in the selected districts (Tables 2.2 a, b and c).

    4. Multifarious developmental tasks were performed under the panchayat structure in most selected districts. It was important to observe that most Zilla Parishads had elected representatives with the potential to undertake policy decisions and direct the developmental tasks (Table 2.3)

    5. In large number of the selected districts, monitoring of Jawahar Rozgar Yojana (JRY) was undertaken in view of the fact that there were only nine districts where monitoring of JRY was not undertaken (Table 2.4).

    6. Available funds of JRY are maintained mostly in the nationalized banks and other commercial banks. In Kerala, the preference was for post offices in maintaining funds of JRY (Table 2.6)

    7. Available data for the period 1996-97 to 1998-99 revealed that the coverage of villages under the programme was highest in Uttar Pradesh and Madhya Pradesh. Across the states, the concentration of the beneficiaries was in Uttar Pradesh, Bihar, Madhya Pradesh, Karnataka, and Orissa (Table 2.9).

    8. In selected districts, allocated funds under JRY provided wage employment to the extent of 185.33 lakh mandays in 1996-97, 195.21 lakh mandays in 1997-98, and 181.42 lakh mandays in 1998-99. Thus wage employment was equally distributed over the three year period. Among the states which provided employment for more than 10 lakh mandays in all three years under review were in the selected districts of Bihar, Karnataka, Maharashtra, Orissa, Tamil Nadu and Uttar Pradesh. Further, scheduled castes and scheduled tribes were the major beneficiaries of the programme to the extent of 53.6 per cent and others 46.4 per cent. Among the different categories, landless were provided wage employment to the extent of 50.4 per cent, women to the extent of 33 per cent, and freed bonded labourers to the extent of 1 per cent [Tables 2.10 (a) and (b)].

    9. During the three year period under review, at the district level, norms under the JRY guidelines were nearly observed in maintaining the ratio of wages and materials. The composition of wages was to the extent of 58.07 per cent and materials to the extent of 41.93 per cent in the selected districts (Table 2.11).

    10. Bihar, Madhya Pradesh, and Uttar Pradesh were prominent in creation of works/assets at the district level. Survey data revealed that 20 types of works/assets were created which could be classified in the following categories: i) rural roads, ii) water supply and irrigation, iii) construction of school and other building, iv) social and farm forestry and v) land development, [Tables 2.12 (a) and (b)].

    11. In the selected districts funds received for JRY during the period 1996-97 to 1998-99 were Rs. 1377.69 crore and disbursements were to the extent of Rs.1477.48 crore. In other words, the utilization of funds was to the extent of 107.25 per cent (Table 2.13).

    12. At the block level, there was prominence of households of other castes over scheduled castes and scheduled tribes among BPL households. Households belonging to scheduled castes comprised of 25.46 per cent of the total BPL households. In Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, and the union territory of Daman and Diu, scheduled tribes dominated in the total number of BPL households (Table 3.1).

    13. Of the total 433 blocks surveyed, most blocks had elected representatives in the panchayats. Further the staff strength in the surveyed blocks was adequate to undertake and implement JRY works (Table 3.2).

    14. Survey data revealed that 82 per cent of the selected blocks had maintained separate accounts for the implementation for JRY. The accounts, were maintained in the nationalized banks, regional rural banks, and cooperative banks (Table 3.3).

    15. Monitoring and vigilance committees were functioning in 73 per cent of the selected blocks (Table 3.4).

    16. At the selected block level, about 35 lakh mandays of employment was generated in 1996-97, about 38 lakh mandays of employment in 1997-98 and about 43 lakh mandays of employment in 1998-99. The share in the employment generated of scheduled castes was 31.4 per cent, of scheduled tribes 29.2 per cent and of other castes 39.4 per cent. Employment was provided to the extent of 28 per cent to the landless, 18.8 per cent to women, and 1.4 per cent to free bonded labourers (Table 3.7).

    17. In the selected blocks, 3228 works/assets were created during the period 1996-97 to 1998-99. However, the pattern followed in the creation of the works/assets was the same as observed at the district level. Construction of rural roads was provided highest priority. The highest number of works/assets was undertaken in Uttar Pradesh [Table 3.10 (a)].

    18. During the period under reference, works/assets created in the selected blocks covered drinking water facilities, irrigation facilities, water harvesting, land development, rural roads, construction of school and other buildings, forestry, and miscellaneous works [Table 3.10 (b)].

    19. During the period in the review, a sum of rupees 159.37 crore was received in the selected blocks and a sum of rupees 152.31 crore was disbursed (Table 3.11).

    20. In the selected gram panchayats, in 1997 there were 6.30 lakh households belonging to the BPL category. Although the largest number of BPL households was in Bihar, the highest proportion to total households was in Assam (96 per cent) (Table 4.1).

    21. In terms of infrastructural facilities, rail facilities were available in 6 per cent of the selected gram panchayats. But lack of rail facilities was compensated by the availability of road transport. More than 70 per cent of the selected gram panchayats had post offices, and 60 per cent had telephone connections. Availability of education facilities could be assessed from the fact that ninety four per cent of the selected panchayats had facilities of primary education. To facilitate the work of the elected representatives, panchayat buildings were available in 83 per cent of the selected gram panchayats. Electric supply was available in about 75 per cent of the selected gram panchayats. Similarly primary health centres were available in 37 per cent of the selected gram panchayats. Inadequacy of primary health care centres was compensated by the availability of other medical services. At the village level, marketing facilities for the primary products were available in 23 per cent of the selected gram panchayats. Thus selected gram panchayats had adequate infrastructural facilities (Table 4.2)

    22. Of the gram panchayats surveyed, 80 per cent had elected representatives. The average number of membership of the elected gram panchayats was 12.49, comprising 3.06 of scheduled castes, 2.16 of scheduled tribes and 7.27 of other castes (Table 4.3).

    23. Interestingly, 95 per cent of the surveyed gram panchayats had facilities of a full-time or part-time secretary (Table 4.4).

    24. For the execution of the JRY, 80 per cent of the selected gram panchayats themselves were the executive authority. Wherever elected representatives were not available, officials of districts, blocks and panchayats were responsible for the implementation of the programme (Table 4.5).

    25. Most of the selected gram panchayats maintained accounts of JRY and preferred nationalized banks, regional rural banks and cooperative banks to deposit the available JRY funds (Table 4.6).

    26. In the selected gram panchayats, 83 per cent maintained muster rolls and 59 per cent displayed works undertaken on notice boards (Table 4.7).

    27. Action plan for the developmental activities was prepared in the 76 per cent of the surveyed gram panchayats. Similarly, 68 per cent of the gram sabha in the gram panchayats were responsible for preparation of the action plan. Block officials were also active in preparation of the action plan (Table 4.8).

    28. The involvement of members of the gram panchayats in preparation of the action plan could be observed from the fact that the discussions were held in 95 per cent of the gram panchayats while on the basis of suggestions, modifications were effected in 83 per cent of the selected gram panchayats (Table 4.9)

    29. Data revealed that 51 per cent of the selected gram panchayats constituted vigilance committees to assess the work of programme, 58 per cent opined favourably on timely receipt of funds, and 81 per cent reported having received technical assistance from district and block officials (Table 4.10).

    30. In terms of availability of manpower for JRY works, 79 per cent of the workforce was secured from village itself and to the extent of 99.7 per cent from the parent district (Table 4.11).

    31. As many as 43 per cent heads of the selected gram panchayats were fully satisfied in terms of creation of assets as well as on account of benefits received from the assets [Table 4.12 (a)]

    32. For the reference period 1996-97 to 1998-99, on an average, 5.22 works/assets were created per gram panchayat. In 83 of the selected gram panchayats, the gram panchayats themselves maintained works/assets. The role of beneficiaries in maintenance of works/assets was quite marked in Gujarat where 13 per cent of the created works/assets were maintained by the beneficiaries as against 2 per cent at the all India level. Of the total works/assets created, about 80 per cent were of durable nature (Table 4.14).

    33. During the reference period 1996-97 and 1998-99, wage employment at gram panchayat level was generated to the extent of 66.20 lakh mandays. Further, on an average, during the reference period, each selected gram panchayat was able to generate 3038 mandays of employment [Table 4.17 (a)].

    34. Of the employment generated in the JRY works, scheduled castes and scheduled tribes had major share to the extent of 62 per cent during the period under reference [Table 4.17 (b)].

    35. For the reference period, 6.38 assets per gram panchayat were created which included: creation of irrigation facilities, soil development and conservation, construction of rural roads, drinking water facilities, construction of buildings, development of forestry, and other miscellaneous works,. However, highest priority was accorded to construction of rural roads [Tables 4.19 (a) and (b)].

    36. Consolidated receipts of the selected gram panchayat for JRY works during the reference period 1996-97 to 1998-99 were Rs. 82.44 crore. Among different states, two states of Uttar Pradesh and Bihar were the major beneficiaries (Table 4.20).

    37. Demographic characteristics of the sample beneficiaries revealed the following features:

      1. The average family size was 5.66 members, and small families of upto three members formed 14 per cent of the total beneficiaries (Tables 5.1 and 5.2).

      2. Among economically active members in the age group of 15-60 years, per household males constituted 1.74 and females 1.53 members (Table 5.1).

      3. Scheduled castes dominated the caste composition of the beneficiaries followed by scheduled tribes, other backward communities and minorities (Table 5.4).

      4. Special efforts were made to provide employment opportunities to special categories of persons such as, freed bonded labourers, physically handicapped, victims of atrocities, widow/widower, and poor and marginal farmers (Table 5.5).

      5. Although males constituted 86 per cent of the sample beneficiaries, in the small states of north-eastern region and union territories, the participation of females in the economic activity was substantial in the union territories of Dadra and Nagar Haveli, Daman and Diu, and Pondicherry (Table 5.6).

      6. Although 55 per cent of the beneficiaries were literate, literacy level was 60 per cent or more in 12 states and 3 union territories (Table 5.7).

    38. The awareness about the minimum wages of the sample beneficiaries was high to the extent of 52 per cent (Table 5.10).

    39. Significantly, 98 per cent of the sample beneficiaries received wages in cash. Weekly payments made to them were quite prominent and most of the beneficiaries received payment on site (Table 5.11).

    40. Specifically during the period January – March 2000, wage employment was available to the extent of 16.67 mandays per beneficiary. Month-wise employment from JRY works was to the extent of 7.31 mandays in January, 5.16 mandays in February, and 5.12 mandays in March (Table 5.14).

    41. It was revealing that 71 per cent of the beneficiaries received wage employment for JRY works on the recommendations of village officials. Involvement of elected representatives in recommending for wage employment on JRY works was minimal (Table 5.15).

    42. The executive agency for the implementation of JRY was primarily the village panchayats (Table 5.16).

    43. There were only 11 per cent of the beneficiaries who reported to have faced problems in getting the benefits from JRY works. The cumbersome procedure followed in the selection of the beneficiaries was the most important problem (Tables 5.16 and 5.17).

    44. The level of satisfaction among the beneficiaries of community works undertaken under JRY was to the extent of 76 per cent. About 81 per cent of the beneficiaries were satisfied with the role of the village officials. Presumably on account high level of satisfaction among the sample beneficiaries, about 41 per cent of the beneficiaries received benefits on continuous basis for three years or more (Tables 5.18 to 5.20).

    45. Significantly, a large number of beneficiaries (77 per cent ) reported that JRY had resulted in increasing their income in varying ranges and 30 per cent of the sample beneficiaries reported to have increased income of Rs. 750 per year from JRY works (Table 5.21).

    46. Importantly as many as 75 per cent of the sample beneficiaries reported contribution of JRY works to family income, 22 per cent to family savings, 33 per cent to family health, 28 per cent to availability of safe drinking water, 20 per cent to improved sanitation, 27 per cent to improvements in family nutrition, 41 per cent to increased economic status of the family and 33 per cent to improvements in social status of the family (Table 5.22).

    47. The responses of the sample non-beneficiaries of JRY suggest that most of them belonged to scheduled castes and scheduled tribes and the special category of free bonded labourers. However, most of them were receiving benefits under other developmental programmes sponsored by central and state governments (Table 5.23).

    48. Various parameters were identified and examined in the planning and implementation process of JRY at district, block, gram panchayat, and beneficiary level to evolve a guideline to evaluate the performance of JRY. At the district level, performance was best in the union territory of Dadra and Nagar Haveli followed by Madhya Pradesh, while at the block level it was once again the union territory of Dadra and Nagar Haveli followed by Nagaland and Andhra Pradesh. At gram panchayat level, the best performance was reported by Nagaland followed by Himachal Pradesh. At the beneficiary level, it was in Arunachal Pradesh followed by Meghalaya (Tables 6.3 to 6.7).

    49. State-wise index was constructed on the average rank of district, block, gram panchayat, and beneficiaries as well as on the basis of weights assigned to them. In general, the performance of small north eastern states was most satisfactory and that of Nagaland was best (Table 6.3 to 6.7).

B. Areas of Concern:

    1. To understand income inequalities at the household level, reliance was placed on the surveys undertaken by the state governments in 1992 and 1997. However, in 1997 there were eight states, where the number of BPL households was more than one lakh per district. Mention must be made of Andhra Pradesh where BPL households were the largest.

    2. Technical institutes to provide skills were inadequate in many states. This might prove a handicap in providing technical education to the potential rural youth.

    3. For the reference period 1996-97 to 1998-99, the wage material ratio was 52.81:47.19 of the selected blocks. Thus the norms of the wage material ratio of 60:40 as provided in JRY guidelines were not followed at the block level.

    4. It is a fact that the efficacy of elected representatives as well as other officials depends largely on the availability of requisite staff strength. However, data revealed that only 79 Zilla Parishads of the 125 surveyed districts were having sufficient strength for the implementation of JRY. Thus many of the Zilla Parishads were not having requisite staff strength to undertake works under JRY.

    5. Engineering staff to monitor the implementation of JRY was available only in 23 selected districts. Zilla Parishad officials and supervisory staff monitored the technical aspects of implementation of JRY works in most districts.

    6. Separate accounts for JRY funds were not maintained in Gujarat, Karnataka, Kerala, Manipur, Orissa, Rajasthan, Uttar Pradesh, and West Bengal. Such a situation might create problems in the flow of funds and maintenance of appropriate records specifically for the scheme.

    7. Minimum wages in the selected districts for skilled and unskilled workers varied significantly. Also there was no parity in the wages of skilled males and females. This situation might be responsible for out migration of economically active males and females from the villages.

    8. Several problems were reported by the block officials in planning and implementation of JRY. Important among them were: i) insufficient and irregular funds, ii) non-availability of technical assistance, iii) non-cooperation from elected representatives, iv) indifference of district level agencies, and v) social rivalries.

    9. Among 145 sample blocks, adequate staff strength was not available for planning and implementation of JRY works.

    10. For the monitoring of JRY works, either there were no separate committees or that meetings of monitoring and vigilance committees were not held regularly in a large number of sample blocks.

    11. Non-availability of technical staff might be a major impediment in the implementation of JRY works at block level.

    12. Women still are not provided employment opportunities at the block level to the extent of 30 per cent. In as many as ten states employment to women at block level was less than 10 per cent.

    13. Postal facilities were not available in 30 per cent of the selected gram panchayats and 40 per cent of the selected gram panchayats did not have telephone connections.

    14. It appears that rural industrialization has not picked up in the selected gram panchayats despite the fact that rural electrification has progressed at a faster rate.

    15. Many of the selected gram panchayats did not have elected representatives and the important states which could be identified on this aspect were Andhra Pradesh, Arunachal Pradesh, Assam, Gujarat, Bihar, Manipur, Meghalaya, and Andman and Nicobar Islands.

    16. Although the institution of Panchayat has come to stay, there are a large number of gram panchayats which do not have facilities of full time paid secretaries. Also the paid staff was not adequate to implement various developmental programmes.

    17. In the implementation of JRY works, it is imperative to maintain muster rolls for the record of attendance of beneficiaries. However many states, did not provide for muster rolls. Similarly, about 36 per cent of the selected gram panchayats did not have a copy of JRY manual, which might adversely affect the use of appropriate norms in the implementation of the programme. One of the important aspects of development programmes is to create awareness among the village communities on the ongoing developmental programmes. However, about 41 per cent of the selected gram panchayats did not display the works undertaken by them.

    18. Gram panchayat officials reported that they did not receive funds in time to undertake the implementation of the programme; in many cases funds were inadequate. Such a phenomenon was particularly important in 14 states and 5 union territories.

    19. Heads of the selected gram panchayats revealed that delay in the execution of works was primarily on account of shortage of funds. However, shortages of raw materials, lack of coordination, constraints of rainy season and non-cooperation from the panchayat members also were responsible for the delay in varying degrees.

    20. Creation of non-durable works/assets was on account of inferior quality of the material used, no follow-up of the structural details as per norms, lack of proper maintenance, and unsuitable locations.

    21. While assessing the status of the beneficiaries according to the norms of Below the poverty Line, it was quite revealing that 29 per cent of the selected beneficiaries did not satisfy one or more criteria of the norms which suggests that substantial part of JRY funds was not utilized for the targeted population.

    22. Large Number of sample beneficiaries were not aware of the minimum wages. Such a distressing situation was most prominent in eleven states.

    23. In many states, payment to beneficiaries was made mostly on weekly basis but there are sufficient instances where monthly payment were also made. Similarly, 45 per cent or more beneficiaries were paid wages at "off site" in 10 states, and two union territories. For wage payment, the institution of contractor has been banned from functioning according to JRY guidelines. However, contractors still remained active and there were ten states where 19 per cent or more of the beneficiaries received payment through contractors. Importantly the highest number of beneficiaries receiving payment through contractors were in Orissa (63 per cent) followed by Bihar (56 per cent).

    24. The grim situation of payment for selection as beneficiaries on JRY works was found in all states. Particularly in two states of Goa and Rajasthan, where 50 per cent or more beneficiaries were required to pay in cash or kind to receive the benefits under JRY.

    25. There was also dissatisfaction on the procedure for selection as a beneficiary, utility of benefits and community works undertaken under JRY works. The sample beneficiaries had also dissatisfaction on the role-play by district and block officials.

    26. Most sample non-beneficiaries of JRY programme were not aware of the benefits. Also a significant proportion of the non-beneficiaries reported that the procedure for selection was cumbersome, benefits were not attractive, and wages were quite low.

    27. Non-beneficiaries were also not allowed to avail the benefits under JRY on account of non-appeasement of middlemen or officials involved in providing wage employment.

II Recommendations

    1. Since rural development programmes undertaken by the government have been able to not only arrest the increase in the number of households Below the Poverty Line (BPL) but also reduce the number over the years, it is imperative that such programmes must continue with greater thrust. However, preferential treatment in terms of higher budgetary allocations may be provided to the states where the numbers of BPL households per district currently are more than one lakh.

    2. With a view to developing technical skills among the potential rural youth, the increase in establishment of technical institutes will prove to be of immense help. Therefore, governmental efforts in this direction must be supplemented by the increased involvement of corporate sector and non governmental organisations (NGOs). Although some private and public sector manufacturing companies have already taken initiative in the above direction, government can certainly persuade corporate sector manufacturing units to spread their operations in providing technical skills to the rural youth in the villages.

    3. For effective implementation of JRY, it is imperative for the panchayats to have requisite strength of the trained staff. Therefore, efforts must be made for the requisition of sufficient professionalized staff either from other departments or through new recruitment. For this purpose, coordinated efforts must be made with the assistance of various other departments such as, public works departments, irrigation department, agriculture department etc. at the district headquarters to requisite the services of technical staff in these departments for implementation and monitoring the performances of programme.

    4. For monitoring the performance of JRY, there is also the urgent need to activate the role-play of monitoring and vigilance committees. This would ensure greater sensitivity among programme implementing agencies.

    5. Various guidelines issued by the government of India clearly mention the need for maintaining separate accounts for JRY funds. Once again, there is urgent need to sensitize state governments to maintain separate account of JRY funds at different levels. This would certainly ensure timely and appropriate scheme wise utilization of available funds.

    6. At district, block and gram panchayat levels, it seems necessary to involve elected representatives in the decision making process while undertaking JRY works. Greater participation of elected representatives in the decision making process at all levels will be of advantage to programme implementing agencies in both short run and long run to identify needs at the village level as well as devise new futuristic strategies.

    7. In view of the fact that minimum wages prevailing in different states vary significantly for both skilled and unskilled workers, it is time to undertake a revision. It is also important to have parity in all states for skilled workers belonging to male and female categories. This would increase the participation of both males and females in the economically active age groups of the village itself to avail the benefits of the programme.

    8. To empower women in the panchayat structure, it is imperative to cover at least 30 per cent women while providing wage employment. For this purpose, special programmes under JRY based on the skills of the women in the village should be formulated and implemented. In this context, there is a need to offer short duration skill development programmes for women.

    9. Receipts and disbursements of JRY funds are not maintained in a manner, which required clear assessments of the items of expenditures as well as monthly closing balance of the amount. In this regard, short duration training programme on management of developmental finance should be organized so that accounts are maintained in a professionalized manner at all India level. All districts have been supported by providing computer facilities from the funds of the Ministry of Rural Development, Planning of short-term executive development programmes on finance and greater use of computer facilities will immensely help in maintaining appropriate records and quick flow of information at different levels.

    10. Development programmes in India have become major focus of providing wage employment, particularly to persons Below the Poverty Line. Available data on coverage of villages, scheme-wise number of beneficiaries, and mandays of employment generated show inconsistencies of reporting. Therefore there is a need for developing data management and information system. The information system should be so developed that village officials can also effectively and efficiently make use of it to provide detailed information on the inflow and outflow of funds, selection of beneficiaries, mandays of employment provided, other procedural aspects of planning and implementation of schemes, creation of assets, and status of assets created over the years, etc.

    11. There is also a need for specialized training programme on the developmental programmes for the JRY implementing agencies. The special training module should be so developed and structured as to provide ample opportunities to the implementing agencies to utilize their skills in formulating need-based programmes to provide wage employment and creation of assets.

    12. While planning and implementing programmes of wage employment, it is felt necessary that availability of skills among the local people and natural resources should be the guiding principle. This will be a step forward in the sustainable development of human skills and available natural resources.