Rural Job Creation As Poverty Reduction Strategy in India

India: Growth, Poverty and Inequality

Measurements of countrys are based on monetary income or

consumption. Since most of the population in India is poor,
encouraging the development of a ground rural-based
businesses, raising the returns to labour and capital can help in
eradicating poverty and improving the overall efficiency of
markets .

Empowering the poor and halting corruption are two closely

interlinked actions that lead to the alleviation of poverty. In
order to eradicate the roots of poverty the prime requirement is
of abolishment of inequality based on caste, creed, sex, religion
etc.
Employment Conditions and Policies

Measurements of countrys are based on monetary income or

consumption. Since most of the population in India is poor,
encouraging the development of a ground rural-based
businesses, raising the returns to labour and capital can help in
eradicating poverty and improving the overall efficiency of
markets .

Empowering the poor and halting corruption are two closely

interlinked actions that lead to the alleviation of poverty. In
order to eradicate the roots of poverty the prime requirement is
of abolishment of inequality based on caste, creed, sex, religion
etc.
 Programs for Rural Poverty Alleviation

Focusing on the job creation as a measure of reducing poverty the

various strategies and programs of the govt. are discussed below:

Integrated Rural Development Program (IRDP)

Employment Assurance Scheme (EAS)

Food for Work Program

Wage Employment Programs

National Rural Employ. Guarantee Act

The 2005 Mahatma Gandhi National Rural Employment

Guarantee Act, guarantees a paid employment of minimum 100
days to rural households during given financial year. This
program functions primarily during the agricultural lean season.
The absence of jobs might also lead poor people to sell valuable
assets in order to secure food, at the cost of undermining their
capacity to sustain living conditions in the future, or/and incur
burdensome debts that might pile on top of prior liabilities. The
act specifies that work must be provided within a 5-kilometer
radius. The act is not a rural development program and does
not focuses building multifaceted development projects.
 Job Card For job security

Rural dwellers can make a submission for the number of days

of work of their choice. To avoid forgery, the act specifies that
the job card must stay with the worker and that the program
administration must keep a copy. 100 percent of
unemployment allowance in case of failure to provide the
requested job.

Empowering the poor and halting corruption are two closely

interlinked actions that lead to the alleviation of poverty. These
programs are of great success in reducing poverty, but the data
also indicate that the effectiveness of the program varies widely.
Performance varies significantly according to the specific feature
under scrutiny and the geographical location.
FIGURE 1.1 THE RURAL EMPLOYMENT ACTS JOB CREATION AND HOUSEHOLD

Source: Employing India- Guaranteeing Jobs for Rural Poor by Eduardo Zepeda and Scott
Mc Donald construction based on Rural Employment Act official data
FIGURE 1.2 THE RURAL EMPLOYMENT ACTS JOB CREATION AND SOCIAL INCLUSION

Source: Employing India- Guaranteeing Jobs for Rural Poor by Eduardo Zepeda and Scott
Mc Donald construction based on Rural Employment Act official data.
Approaches to Accelerate Employment
Generation

There are three wide-ranging approaches that can be adopted to

stimulate greater employment generation are:

1. Expand existing activities

2. Adopt activities prevalent in other countries which have not

yet come to India

3. Promote culturally compatible activities based on Indian

environment
 References

Employing India- Guaranteeing Jobs for Rural Poor : By

Eduardo Zepeda, Scott Mc Donald, Manoj Panda, Ganesh Kumar
and Chandan Sapkota

International Labour Conference, 97th Session, 2008 (Report

IV): Promotion of rural employment for poverty reduction

http://www.mssresearch.org/?q=rural_employment_strategies_
for_india

http://www.nistads.res.in/indiasnt2008/t6rural/t6rur3.htm