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MGNREGS Reduced Poverty and Inequality: Study

The study observed that households which participated in the scheme saw improvements in several welfare indicators as compared to households that didn't.

A research study by Klaus Deininger of the World Bank and Yanyan Liu of the International Food Policy Research Institute (IFPRI) has reportedly found that the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) scheme has improved the conditions of households, especially for poor, scheduled castes (SCs) and scheduled tribes (STs) households.

MGNREGS was launched by the Manmohan Singh government in 2006 to provide 100 days guaranteed employment to adults in rural India.

Deininger and Liu studied the effects of the scheme on households in five districts of Andhra Pradesh. The study, titled ‘Heterogeneous welfare impacts of National Rural Employment Guarantee Scheme: Evidence from Andhra Pradesh, India‘ and published in the World Development Journal, observed that households which participated in the scheme saw improvements in several welfare indicators as compared to households that did not, reported Livemint.

The protein intake of participating households improved within a year, and after a two-year exposure, the households accumulated more assets and livestock, the study reportedly found.

The authors argue that MGNREGS was effective in reducing poverty and inequality in areas where the scheme was effectively implemented and was adequately monitored and audited.

Also Read: Minimum Income Guarantee Proposed by Rahul Gandhi Could Be a Game Changer: Prashant Bhushan

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