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LATEST NEWS UPDATES | Livelihood Mission to fine-tune delivery of government's social schemes by Devika Banerji

Livelihood Mission to fine-tune delivery of government's social schemes by Devika Banerji

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published Published on Jun 16, 2011   modified Modified on Jun 16, 2011

Recently launched National Rural Livelihood Mission might help the government in getting desired results from its social benefit schemes. Seen as the next big rural project after the National Rural Employment Guarantee Scheme, NRLM will provide a platform for formation of village groups that will then assist in fine-tuning existing government schemes.

The government's expectations from NRLM stems from the instances of success in some states that have been able to use village community groups to further government entitlements to the poor. For example, in Bihar, self-help groups in Sekhwara and Purnia had applied for licences and took over the running of Public Distribution System (PDS) in the respective villages.

The Planning Commission has 11 cases of village self-help groups taking over the PDS system and implementing it much more efficiently than the state government. Most of these villages are in Andhra Pradesh, Kerala, Bihar, and Rajasthan. "We have seen that the PDS is being run efficiently by village groups.
If NRLM is successful then possibly we can multiply such cases and improve the distribution channels for other rights-based schemes as well," a Planning Commission official said. Villages with self-help groups have been able to reduce leakages in PDS by average 5- 10% over the last 2-3 years.

Moreover, community groups in states have got roads built under Pradhan Mantri Gram Sadak Yojna, housing benefits under Indira Awaz Yojna, marked out irregularities in NREGA and got drainage systems built, among other things. The World Bank, which has been supporting state level livelihood programs in several states also believes that the scheme has the potential to enhance delivery system of the government.

"There are two reasons why the government is supporting the new schemes. First, it is looking for the next big rural success after NREGA and second, it hopes the scheme can improve delivery systems through action in the demand side," said Parmesh Shah, lead rural development specialist, rural development department from South Asia at the World Bank.

The World Bank has invested Rs 2,946 crore in livelihood missions in India so far and is going to invest about Rs 5,000 crore for scaling up the scheme in 12 states. The government has committed to spend Rs 22,500 crore for the scheme over the next Plan period and is willing to increase the corpus if the initial attempt shows favorable results. However, officials understand the limitations of the approach.

"Currently we have 35.5 lakh village groups, but not all are strong enough to sustain themselves. For them to carry these services, we need very strong self-governed and financially sound community groups. This will need time and lot of effort from the government in the first place," the Planning Commission official said.


The Economic Times, 16 June, 2011, http://articles.economictimes.indiatimes.com/2011-06-16/news/29665537_1_new-schemes-rural-development-nrega


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