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This is an archive article published on December 11, 2004

Time to act upon an old promise

Why is there a need for an Employment Guarantee Act? This is because the employment guarantee scheme called Sampoorna Grameen Rozgar Yojana,...

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Why is there a need for an Employment Guarantee Act? This is because the employment guarantee scheme called Sampoorna Grameen Rozgar Yojana, which has been in place for a while now, holds the promise to alleviate poverty if the scheme becomes widespread and is implemented in earnest. Both these objectives can be achieved if work/employment is declared a constitutional right. Once this right gets enshrined, those without work can demand work/minimum wages from the government, and if government fails to meet this, they can approach the courts. This “rights” based approach needs to be put in perspective.

Here the World Development Report 2004 provides a useful framework. Providing social and/or economic security involves three actors: poor/beneficiaries, politicians/ policymakers and service providers (interpret it as the implementing arm of government).

To improve public accountability in providing social and economic security there are two channels. The long channel works by (i) improving the voice of the poor so that they can exert influence on policymakers, and (ii) improving the influence of policymakers on implementers. The short channel, on the other hand, works when beneficiaries directly influence implementers. Improving the voice of the poor, itself a long drawn process, without improving the accountability of the implementers will not work. Simply committing greater public funds will not improve the situation. Therefore, for the long channel to work, both (i) and (ii) must happen simultaneously.

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The effectiveness of the long channel depends on factors such as how well the electoral system functions, whether the poor wield enough political clout, whether the policymakers care about the poor and are able to monitor the implementers. In India, none of these factors at present plays a robust role in building public accountability in extending social/economic security. These factors will not significantly improve in the foreseeable future. Effectiveness of the short channel, on the other hand, depends on harnessing the power of the poor in revealing their choices/preferences as well as in monitoring the providers. This power can be harnessed by improving the participation of the poor in the implementation process.

A move towards genuine decentralisation is expected to strengthen both the long and short channels. The 73rd and 74th constitutional amendments to usher in the decentralisation process were made in 1992. Till date not even a single Indian state has moved far enough to set an example for others. It is against this backdrop that the rights based approach, which in addition to the beneficiaries, policymakers and the implementers involves a fourth actor (the judiciary), assumes significance.

The writer is a senior fellow at Indian Council for Research on International Economic Relations, New Delhi

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