Bihar REGS: Preliminary Findings from the 2009 Baseline Survey and Next Steps Puja Vasudeva Dutta, Soumya Kapoor, Rinku Murgai, Manasa Putman, Martin Ravallion and Dominique van de Walle India’s National Rural Employment Guarantee Scheme NREGS is the largest antipoverty policy in India’s history (and the developing world’s) – Objectives: • Primary: Employment generation + poverty reduction • Secondary: Asset creation • Other: Strengthening grassroots democratic processes India’s National Rural Employment Guarantee Scheme • Phasing in: – Introduced in February 2006 in 200 most backward districts – Expanded to additional 130 districts in 2007 – Now covers all 600+ districts in country • Centre-state financing shares: – Center pays for: (a) wage costs; (b) 75% of material costs; (c) administrative costs (subject to a maximum limit) – States pay for: (a) 25% of material costs; (b) other administrative costs; (c) unemployment allowance NREGS in theory • 100 days of unskilled manual work per year guaranteed on demand to all rural households • Apply to GP for jobcard; apply for work • Wage: state statutory min wage (daily/piece rate) • Wages paid weekly through post office account • Unemployment allowance if work not provided • Machines & contractors not allowed • Projects chosen by gram sabha to reflect village priorities NREGS in theory • Mandated worksite facilities: – Safe drinking water – Shade – First aid kit – Creche (5+ children below age 6) • Gender equity – Equal wages for men & women – No gender discrimination of any kind – Priority for women: 33% should be women The BREGS Study: what is the reality? The BREGS Study “Gender equality”? What’s that? Background • Bihar is one of the poorest states of India • Yet NREGS participation in Bihar is one of the lowest in India • Why? No demand for BREGS? Or unfulfilled demand, and why? • How might coverage be increased in a costeffective way? Data 1. Baseline survey • 3,000 randomly sampled households in 150 villages of rural Bihar surveyed in April-July 2009 • 5,200 adult individuals, one male and one female from each household 2. Trial pilots to improve coverage/performance 3. Follow-up survey: same villages/households in April-July 2010 Preliminary Findings from the Baseline Survey* * These figures are not final and may well change Three groups BREGS Demanders (who want BREGS work): 1. Participants in BREGS 2. Non-participants: those who say they would like to work on BREGS but did not obtain work The rest: 3. Those who do not want to participate in BREGS Participation is low… 1. Participants: • 24% of households worked in BREGS • 15% of adults worked in BREGS – 26% of men – 6% of women • 90% of participants wanted more work …but demand for work is high 2. Non-participating demanders: Many wanted work but did not get it • 41% of households wanted BREGS work but did not participate • 36% of adults (43% of men; 30% of women) 3. The rest : 35% did not want BREGS work Does BREGS guarantee employment? Not yet • Huge excess demand by men and women • Signs of rationing – People not issued job cards – People turned away from worksites – Worksites not opened • Women who want BREGS work are less likely to get it than men – 17% of female demanders actually participated – 39% of male demanders actually participated Are there differences between who gets work and who does not? 80 70 60 50 40 30 20 10 0 %HH by main characteristics 70 43 67 24 26 13 13 Pucca roof 53 41 37 25 22 21 59 11 7 2 Pucca floor Owns land Participants 23 7 Mahadalit 2 SC (other) Non-participant demanders OBC 12 General Rest %HH by main income source 80 70 60 50 40 30 20 10 0 73 51 36 7 16 Ag. self-emp 6 7 16 Non-ag. selfemp 32 27 8 Ag. casual 51 49 40 10 3 8 19 Non-ag. casual Remittances Never migrate for work Are there differences between who gets work and who does not? % Demanders Participants Nonparticipants BPL 44 52 No ration card 15 16 Muslim 3 10 Illiterate head 71 58 Class 8 + 7 19 The rest 29 27 16 42 37 In many respects participants and excess demanders are similar • Targeting of demand for BREGS is good when compared to non-participants: – participants are more likely to be lowest caste, landless, casual laborers, illiterate or poorly educated, poor housing conditions etc. • But in many respects the non-participating demanders are essentially no worse off than participants. NREG awareness seems generally low (less so for participants) % who answered correctly Max no. days? (100/90) When can work be demanded? Men & women? Non-BPL? Unemployment allowance? Wage rate? Contractors allowed? Participants Rest 44 74 Nonparticipating demanders 24 56 63 65 20 50 39 21 35 24 13 40 26 16 16 8 13 13 29 Awareness is very low for women % who answered correctly Max no. days? (100/90) When can work be demanded? Men & women? Non-BPL? Unemployment allowance? Wage? Contractors? Participants Nonparticipating demanders M W 33 13 M 52 W 14 77 64 67 62 59 58 64 56 45 23 42 29 10 31 14 28 23 23 Rest M 33 W 5 46 43 31 52 44 37 19 31 19 13 9 8 33 19 24 5 3 8 Perceptions about BREGS % who answered “yes” Can get BREG work when wanted BREG has increased work opportunities BREG has reduced migration BREG work will be here next year Participants Nonparticipating demanders M W M W 27 18 10 54 34 36 33 Rest M W 13 11 10 23 26 17 15 27 16 22 12 10 13 24 28 18 10 Process: Implementing NREG Planning Registration Work provision Payment of wages • Participatory planning of works • HH issued a “job card” on application • Adult HH member provided work on demand (s.t. 100 day HH max. limit) • Unemployment allowance paid if work not provided • Specified worksite facilities to be provided • Work measurement • Wages paid on piece-rate basis as per Schedule of Rates • Payment in cash through bank or post office accounts Process issues: jobcards % Households Have jobcard Of those without : don’t need did not try tried in process Why did not try? Don’t know how No success as don’t know officials Officials will not give to my family Participants Rest 77 Nonparticipating demanders 28 0 4 22 73 4 11 45 35 62 9 11 11 91 37 73 55 42 58 52 31 29 11 Process issues: wages • Wage type: – 65% daily wages; 31% based on work measurement • Mode of wage payment: – 45% in own post office accounts – Cash from mates (23%) + contractors (11%) • Only about half the time were job card entries & signatures done at time of payment Process issues: worksite characteristics • Facilities available – Drinking water (64%), Shade for rest (33%), Firstaid kit (16%), Child care facility (6%) • Use of machines (37%) • Contractor involved (52%) • Worksites where work disrupted (54%) – Main reasons: Natural causes (59%), stopped by officers (13%), dispute by laborers, farmers, other (25%) Field observations • Critical role of Mukhiya in program; in practice Mukhiya often chooses projects and workers • Pressing need for revisions to the Schedule of Rates – through time and motion studies across regions and groups • Weakness of transparency mechanisms given high levels of illiteracy • Possible sources of leakage • Participation of women often conditional on participation of male HH members Next Steps: Pilots to Test Actions to Improve BREGS Is greater awareness the key to expanding coverage, esp. for women? • Two key findings from baseline survey: large unmet demand + low awareness. – Awareness is a gender issue. => Pilot an “awareness intervention” – Video on NREGA; incl. Govt. videos but adapted to Bihar – Q&A sessions after – All in random subset of the 150 baseline villages Would greater monitoring and auditing help? • NREGA guidelines are not being followed – – – – Unmet demand Low wages Contractors galore! Low participation in project selection => Pilot a “monitoring and auditing” (M&A) intervention – Random sample of GPs get extra M&A – Bihar RD letter sent down announcing M&A Or are both demand and supply side efforts needed? • Overlapping the M&A with the awareness intervention => Three groups 1: Awareness intervention only 2: M&A intervention only 3: Both Photos of film showing during awareness intervention