Success of MGNREGA

♤ While there are mixed outcomes in terms of implementation across the states, due to use of banking/postal network, this program is still considered to be one of the most successful program compared to other social development programs in the country.

♤ Some statistics suggest that the scheme have raised the number of rural account holders to an enormous 8.6 crore. This aspect of financial inclusion initiated by such bank accounts has increased savings as well as access to better credit to the rural poor.

♤ The program also helped in improving equity across the communities. Out of those employed, an astounding 81 per cent reside in kachha houses, around 61 per cent are illiterate and about 72 per cent have no access to electricity in their households.

♤ The MGNREGA also appears to have helped women enormously. Latest information suggests that over 53 per cent of the total employment provided in the past eight years has been undertaken by women. This could have improved the social and economic status of women to some extent in the rural areas.

♤ The recent initiatives such as Aadhar based transfers as well as improving the banking network (through both formal banking as well as by making India Post as core banking compliant) will only further improve the efficiency of the program and improve livelihood among the poor in the rural areas.

The Program has been termed as ‘the stellar example for rural development’ by the World Bank. It is termed as automatic stabilizer of the economy and acts as a counter cyclical measure.