Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 150
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::index() - APP/Controller/ArtileDetailController.php, line 150
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Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
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Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 151
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::index() - APP/Controller/ArtileDetailController.php, line 151
Cake\Controller\Controller::invokeAction() - CORE/src/Controller/Controller.php, line 610
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 97
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Code Context
            if (Configure::read('debug')) {

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        LATEST NEWS UPDATES | Don&#039;t blame MGNREGA by Shubhashis Gangopadhyay    </title>
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Those who see a direct link between wage inflation and the employment guarantee scheme need to think again

Rural wage rates have been rising at quite a fast rate in recent months. Farmers have been complaining about their inability to get..."/>
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Those who see a direct link between wage inflation and the employment guarantee scheme need to think again

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                            <br /><div align="justify">Those who see a direct link between wage inflation and the employment guarantee scheme need to think again<br /><br />Rural wage rates have been rising at quite a fast rate in recent months. Farmers have been complaining about their inability to get cheap labour for their farms. Industry, too, has raised the alarm saying that this is squeezing their margins; higher rural wages mean fewer people are willing to work on construction sites, where a slowdown implies lower output increases in steel, cement and even biscuits that are had by the construction workers during their tea break. What is behind this wage inflation? The accepted wisdom seems to be that the culprit is the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).<br /><br />A major objective of MGNREGA was to help agricultural labourers and marginal farmers during the lean season in agriculture. In rainfed, non-irrigated lands, there is often a gap of three to six months in agricultural activity, depending on the region. During the lean season, rural labour &ndash; more precisely, labour that works in agriculture otherwise &ndash; either has no jobs in the village or gets jobs that do not pay adequate wages for it to survive. So it migrates to the cities to find alternative employment. This, of course, disrupts its family life and has many other adverse social consequences. With the employment guarantee scheme, these labourers could stay back in the village during the lean season and eke out a living without having to temporarily move to the city.<br /><br />Consider areas where there is agricultural activity throughout the year, that is, where there is irrigated land. These areas obtained cheap labour during the time when other areas, which depended on rain-fed agriculture (and no irrigation), had a lull in their activity. With MGNREGA, workers from non-irrigated regions do not find it in their interests to migrate to irrigated areas in the dry season. This raises wages during the dry season in areas where agricultural activity can go on throughout the year. It can also raise wages in the rain-fed areas if those who stayed back in their villages during the local lean season did jobs that paid less than minimum wages. Since the employment guarantee scheme offers minimum wages, labourers would opt for MGNREGA rather than something that paid less. So, the employment guarantee scheme can put an upward pressure on the wages. But observe that in both instances, since the job guarantee scheme pays nothing more than minimum wages, the pressure is built because a wage floor is created by the Act. Note, also, that this is only for 100 days in a 365-day year.<br /><br />With growth, and India claiming that growth will eradicate poverty, it is difficult to understand the criticism against below-minimum wage earnings rising up to the level of the minimum and that too for only 100 days during the year. In other words, one must be able to argue that MGNREGA is raising wages above the minimum level and that too throughout the year. This argument is difficult to make if we believe in the other statement being made by those who oppose the employment guarantee scheme. They claim that it is a highly corrupt activity, and that the poor are either unable to access the rural employment guarantee scheme or never given their full entitlement. This could still lead to wage inflation only if the wages that were being paid to the migrant workers were very, very low to begin with; even when they receive less than their entitlement, or minimum wages, it is more than what they would have obtained without MGNREGA!<br /><br />The next point to consider is how a 100-day minimum wage guarantee can affect the remaining 265-day wage. This can happen only if workers are so non-aspirational that once they get a minimum amount of money for 100 days, they reduce their supply for the remaining 265 days, forcing wages to rise. In other words, they are happy in their poverty and this brings back memories of something we have often heard &mdash; the poor are poor because they do not work.<br /><br />I am not disputing that recent months have seen large increases in wage inflation; I am only questioning those who see a direct relation between MGNREGA and wage inflation. Indeed, I am delighted that wages have been rising faster than food inflation in recent months. After all, we cannot expect growth to get rid of poverty without this happening. I am hoping that no one thought that India would continue on its growth path with real wages in India staying where they were and yet we will be able to argue that growth trickles down to those who are poor. If MGNREGA is affecting this, we should rejoice rather than fret.<br /><br />Suppose we were to think a little differently and, most importantly, consistently. Suppose we said that growth is having an impact &mdash; there is a greater demand for employment in activities that were not available before. These new activities pay more than what farmers were willing to pay earlier and that is why labourers are moving out of agriculture. So, if old agriculture and old industry have to compete with these new activities, they have to pay higher wages or increase productivity. There is nothing more market-driven than our informal-sector labour market and it is silly to expect that we will have market reforms by keeping this market depressed. All that this points to is that both agriculture and industry need to innovate. For a start, they could share more of their revenue with labourers rather than with their managers. How come no one is saying that managerial compensation has increased much more than wages for a long time now?<br /><br />Indeed, if the critics of corrupt practices are right, and those who blame MGNREGA for wage inflation are also right, then reducing corruption in the implementation of the employment guarantee scheme will actually lead to greater, not less, wage inflation!<br /><br />The author is Research Director, India Development Foundation</div>                                                           
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    <br><a href="http://www.business-standard.com/india/news/shubhashis-gangopadhyay-don%5Ct-blame-mgnrega/456692/" class="re" target="_blank">The Business Standard, 26 November, 2011, http://www.business-standard.com/india/news/shubhashis-gangopadhyay-don%5Ct-blame-mgnrega/456692/</a><div class="clear"></div>
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Those who see a direct link between wage inflation and the employment guarantee scheme need to think again

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    <h1 class="cat-box-title">Don&#039;t blame MGNREGA by Shubhashis Gangopadhyay</h1>
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		 Published on</span><span class="text-date"> Nov 25, 2011</span>
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                            <br /><div align="justify">Those who see a direct link between wage inflation and the employment guarantee scheme need to think again<br /><br />Rural wage rates have been rising at quite a fast rate in recent months. Farmers have been complaining about their inability to get cheap labour for their farms. Industry, too, has raised the alarm saying that this is squeezing their margins; higher rural wages mean fewer people are willing to work on construction sites, where a slowdown implies lower output increases in steel, cement and even biscuits that are had by the construction workers during their tea break. What is behind this wage inflation? The accepted wisdom seems to be that the culprit is the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).<br /><br />A major objective of MGNREGA was to help agricultural labourers and marginal farmers during the lean season in agriculture. In rainfed, non-irrigated lands, there is often a gap of three to six months in agricultural activity, depending on the region. During the lean season, rural labour &ndash; more precisely, labour that works in agriculture otherwise &ndash; either has no jobs in the village or gets jobs that do not pay adequate wages for it to survive. So it migrates to the cities to find alternative employment. This, of course, disrupts its family life and has many other adverse social consequences. With the employment guarantee scheme, these labourers could stay back in the village during the lean season and eke out a living without having to temporarily move to the city.<br /><br />Consider areas where there is agricultural activity throughout the year, that is, where there is irrigated land. These areas obtained cheap labour during the time when other areas, which depended on rain-fed agriculture (and no irrigation), had a lull in their activity. With MGNREGA, workers from non-irrigated regions do not find it in their interests to migrate to irrigated areas in the dry season. This raises wages during the dry season in areas where agricultural activity can go on throughout the year. It can also raise wages in the rain-fed areas if those who stayed back in their villages during the local lean season did jobs that paid less than minimum wages. Since the employment guarantee scheme offers minimum wages, labourers would opt for MGNREGA rather than something that paid less. So, the employment guarantee scheme can put an upward pressure on the wages. But observe that in both instances, since the job guarantee scheme pays nothing more than minimum wages, the pressure is built because a wage floor is created by the Act. Note, also, that this is only for 100 days in a 365-day year.<br /><br />With growth, and India claiming that growth will eradicate poverty, it is difficult to understand the criticism against below-minimum wage earnings rising up to the level of the minimum and that too for only 100 days during the year. In other words, one must be able to argue that MGNREGA is raising wages above the minimum level and that too throughout the year. This argument is difficult to make if we believe in the other statement being made by those who oppose the employment guarantee scheme. They claim that it is a highly corrupt activity, and that the poor are either unable to access the rural employment guarantee scheme or never given their full entitlement. This could still lead to wage inflation only if the wages that were being paid to the migrant workers were very, very low to begin with; even when they receive less than their entitlement, or minimum wages, it is more than what they would have obtained without MGNREGA!<br /><br />The next point to consider is how a 100-day minimum wage guarantee can affect the remaining 265-day wage. This can happen only if workers are so non-aspirational that once they get a minimum amount of money for 100 days, they reduce their supply for the remaining 265 days, forcing wages to rise. In other words, they are happy in their poverty and this brings back memories of something we have often heard &mdash; the poor are poor because they do not work.<br /><br />I am not disputing that recent months have seen large increases in wage inflation; I am only questioning those who see a direct relation between MGNREGA and wage inflation. Indeed, I am delighted that wages have been rising faster than food inflation in recent months. After all, we cannot expect growth to get rid of poverty without this happening. I am hoping that no one thought that India would continue on its growth path with real wages in India staying where they were and yet we will be able to argue that growth trickles down to those who are poor. If MGNREGA is affecting this, we should rejoice rather than fret.<br /><br />Suppose we were to think a little differently and, most importantly, consistently. Suppose we said that growth is having an impact &mdash; there is a greater demand for employment in activities that were not available before. These new activities pay more than what farmers were willing to pay earlier and that is why labourers are moving out of agriculture. So, if old agriculture and old industry have to compete with these new activities, they have to pay higher wages or increase productivity. There is nothing more market-driven than our informal-sector labour market and it is silly to expect that we will have market reforms by keeping this market depressed. All that this points to is that both agriculture and industry need to innovate. For a start, they could share more of their revenue with labourers rather than with their managers. How come no one is saying that managerial compensation has increased much more than wages for a long time now?<br /><br />Indeed, if the critics of corrupt practices are right, and those who blame MGNREGA for wage inflation are also right, then reducing corruption in the implementation of the employment guarantee scheme will actually lead to greater, not less, wage inflation!<br /><br />The author is Research Director, India Development Foundation</div>                                                           
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    <br><a href="http://www.business-standard.com/india/news/shubhashis-gangopadhyay-don%5Ct-blame-mgnrega/456692/" class="re" target="_blank">The Business Standard, 26 November, 2011, http://www.business-standard.com/india/news/shubhashis-gangopadhyay-don%5Ct-blame-mgnrega/456692/</a><div class="clear"></div>
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    <h1 class="cat-box-title">Don&#039;t blame MGNREGA by Shubhashis Gangopadhyay</h1>
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                            <br /><div align="justify">Those who see a direct link between wage inflation and the employment guarantee scheme need to think again<br /><br />Rural wage rates have been rising at quite a fast rate in recent months. Farmers have been complaining about their inability to get cheap labour for their farms. Industry, too, has raised the alarm saying that this is squeezing their margins; higher rural wages mean fewer people are willing to work on construction sites, where a slowdown implies lower output increases in steel, cement and even biscuits that are had by the construction workers during their tea break. What is behind this wage inflation? The accepted wisdom seems to be that the culprit is the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).<br /><br />A major objective of MGNREGA was to help agricultural labourers and marginal farmers during the lean season in agriculture. In rainfed, non-irrigated lands, there is often a gap of three to six months in agricultural activity, depending on the region. During the lean season, rural labour &ndash; more precisely, labour that works in agriculture otherwise &ndash; either has no jobs in the village or gets jobs that do not pay adequate wages for it to survive. So it migrates to the cities to find alternative employment. This, of course, disrupts its family life and has many other adverse social consequences. With the employment guarantee scheme, these labourers could stay back in the village during the lean season and eke out a living without having to temporarily move to the city.<br /><br />Consider areas where there is agricultural activity throughout the year, that is, where there is irrigated land. These areas obtained cheap labour during the time when other areas, which depended on rain-fed agriculture (and no irrigation), had a lull in their activity. With MGNREGA, workers from non-irrigated regions do not find it in their interests to migrate to irrigated areas in the dry season. This raises wages during the dry season in areas where agricultural activity can go on throughout the year. It can also raise wages in the rain-fed areas if those who stayed back in their villages during the local lean season did jobs that paid less than minimum wages. Since the employment guarantee scheme offers minimum wages, labourers would opt for MGNREGA rather than something that paid less. So, the employment guarantee scheme can put an upward pressure on the wages. But observe that in both instances, since the job guarantee scheme pays nothing more than minimum wages, the pressure is built because a wage floor is created by the Act. Note, also, that this is only for 100 days in a 365-day year.<br /><br />With growth, and India claiming that growth will eradicate poverty, it is difficult to understand the criticism against below-minimum wage earnings rising up to the level of the minimum and that too for only 100 days during the year. In other words, one must be able to argue that MGNREGA is raising wages above the minimum level and that too throughout the year. This argument is difficult to make if we believe in the other statement being made by those who oppose the employment guarantee scheme. They claim that it is a highly corrupt activity, and that the poor are either unable to access the rural employment guarantee scheme or never given their full entitlement. This could still lead to wage inflation only if the wages that were being paid to the migrant workers were very, very low to begin with; even when they receive less than their entitlement, or minimum wages, it is more than what they would have obtained without MGNREGA!<br /><br />The next point to consider is how a 100-day minimum wage guarantee can affect the remaining 265-day wage. This can happen only if workers are so non-aspirational that once they get a minimum amount of money for 100 days, they reduce their supply for the remaining 265 days, forcing wages to rise. In other words, they are happy in their poverty and this brings back memories of something we have often heard &mdash; the poor are poor because they do not work.<br /><br />I am not disputing that recent months have seen large increases in wage inflation; I am only questioning those who see a direct relation between MGNREGA and wage inflation. Indeed, I am delighted that wages have been rising faster than food inflation in recent months. After all, we cannot expect growth to get rid of poverty without this happening. I am hoping that no one thought that India would continue on its growth path with real wages in India staying where they were and yet we will be able to argue that growth trickles down to those who are poor. If MGNREGA is affecting this, we should rejoice rather than fret.<br /><br />Suppose we were to think a little differently and, most importantly, consistently. Suppose we said that growth is having an impact &mdash; there is a greater demand for employment in activities that were not available before. These new activities pay more than what farmers were willing to pay earlier and that is why labourers are moving out of agriculture. So, if old agriculture and old industry have to compete with these new activities, they have to pay higher wages or increase productivity. There is nothing more market-driven than our informal-sector labour market and it is silly to expect that we will have market reforms by keeping this market depressed. All that this points to is that both agriculture and industry need to innovate. For a start, they could share more of their revenue with labourers rather than with their managers. How come no one is saying that managerial compensation has increased much more than wages for a long time now?<br /><br />Indeed, if the critics of corrupt practices are right, and those who blame MGNREGA for wage inflation are also right, then reducing corruption in the implementation of the employment guarantee scheme will actually lead to greater, not less, wage inflation!<br /><br />The author is Research Director, India Development Foundation</div>                                                           
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    <br><a href="http://www.business-standard.com/india/news/shubhashis-gangopadhyay-don%5Ct-blame-mgnrega/456692/" class="re" target="_blank">The Business Standard, 26 November, 2011, http://www.business-standard.com/india/news/shubhashis-gangopadhyay-don%5Ct-blame-mgnrega/456692/</a><div class="clear"></div>
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Don't blame MGNREGA by Shubhashis Gangopadhyay

Published on Nov 25, 2011   Modified on Nov 25, 2011

Those who see a direct link between wage inflation and the employment guarantee scheme need to think again Rural wage rates have been rising at quite a fast rate in recent months. Farmers have been complaining about their inability to get cheap labour for their farms. Industry, too, has raised the alarm saying that this is squeezing their margins; higher rural wages mean fewer people are willing to work on construction sites, where a slowdown implies lower output increases in steel, cement and even biscuits that are had by the construction workers during their tea break. What is behind this wage inflation? The accepted wisdom seems to be that the culprit is the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). A major objective of MGNREGA was to help agricultural labourers and marginal farmers during the lean season in agriculture. In rainfed, non-irrigated lands, there is often a gap of three to six months in agricultural activity, depending on the region. During the lean season, rural labour – more precisely, labour that works in agriculture otherwise – either has no jobs in the village or gets jobs that do not pay adequate wages for it to survive. So it migrates to the cities to find alternative employment. This, of course, disrupts its family life and has many other adverse social consequences. With the employment guarantee scheme, these labourers could stay back in the village during the lean season and eke out a living without having to temporarily move to the city. Consider areas where there is agricultural activity throughout the year, that is, where there is irrigated land. These areas obtained cheap labour during the time when other areas, which depended on rain-fed agriculture (and no irrigation), had a lull in their activity. With MGNREGA, workers from non-irrigated regions do not find it in their interests to migrate to irrigated areas in the dry season. This raises wages during the dry season in areas where agricultural activity can go on throughout the year. It can also raise wages in the rain-fed areas if those who stayed back in their villages during the local lean season did jobs that paid less than minimum wages. Since the employment guarantee scheme offers minimum wages, labourers would opt for MGNREGA rather than something that paid less. So, the employment guarantee scheme can put an upward pressure on the wages. But observe that in both instances, since the job guarantee scheme pays nothing more than minimum wages, the pressure is built because a wage floor is created by the Act. Note, also, that this is only for 100 days in a 365-day year. With growth, and India claiming that growth will eradicate poverty, it is difficult to understand the criticism against below-minimum wage earnings rising up to the level of the minimum and that too for only 100 days during the year. In other words, one must be able to argue that MGNREGA is raising wages above the minimum level and that too throughout the year. This argument is difficult to make if we believe in the other statement being made by those who oppose the employment guarantee scheme. They claim that it is a highly corrupt activity, and that the poor are either unable to access the rural employment guarantee scheme or never given their full entitlement. This could still lead to wage inflation only if the wages that were being paid to the migrant workers were very, very low to begin with; even when they receive less than their entitlement, or minimum wages, it is more than what they would have obtained without MGNREGA! The next point to consider is how a 100-day minimum wage guarantee can affect the remaining 265-day wage. This can happen only if workers are so non-aspirational that once they get a minimum amount of money for 100 days, they reduce their supply for the remaining 265 days, forcing wages to rise. In other words, they are happy in their poverty and this brings back memories of something we have often heard — the poor are poor because they do not work. I am not disputing that recent months have seen large increases in wage inflation; I am only questioning those who see a direct relation between MGNREGA and wage inflation. Indeed, I am delighted that wages have been rising faster than food inflation in recent months. After all, we cannot expect growth to get rid of poverty without this happening. I am hoping that no one thought that India would continue on its growth path with real wages in India staying where they were and yet we will be able to argue that growth trickles down to those who are poor. If MGNREGA is affecting this, we should rejoice rather than fret. Suppose we were to think a little differently and, most importantly, consistently. Suppose we said that growth is having an impact — there is a greater demand for employment in activities that were not available before. These new activities pay more than what farmers were willing to pay earlier and that is why labourers are moving out of agriculture. So, if old agriculture and old industry have to compete with these new activities, they have to pay higher wages or increase productivity. There is nothing more market-driven than our informal-sector labour market and it is silly to expect that we will have market reforms by keeping this market depressed. All that this points to is that both agriculture and industry need to innovate. For a start, they could share more of their revenue with labourers rather than with their managers. How come no one is saying that managerial compensation has increased much more than wages for a long time now? Indeed, if the critics of corrupt practices are right, and those who blame MGNREGA for wage inflation are also right, then reducing corruption in the implementation of the employment guarantee scheme will actually lead to greater, not less, wage inflation! The author is Research Director, India Development Foundation

The Business Standard, 26 November, 2011, http://www.business-standard.com/india/news/shubhashis-gangopadhyay-don%5Ct-blame-mgnrega/456692/

Tagged with: NREGS

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• MGNREGA as Distribution of Dole -Govind Bhattacharjee
• A mango plantation in Jharkhand shows how MGNREGA can really empower rural families -Inayat Sabhikhi

 

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