2nd ARC Report – Unlocking Human Capital: Entitlements and Governance

The 2nd ARC Report Entitlements and Governance” explores strategies for optimizing human potential through enhanced entitlements and improved governance mechanisms.

Mahatma Gandhi once stated, “The measure of a country’s greatness should be based on how well it cares for its most vulnerable populations.”

• The government’s approach to development is undergoing a shift. Rather than relying solely on overall affluence to improve citizens’ living standards, the focus is on ensuring basic entitlements such as minimum levels of education, health, employment, and nutrition. The state is recognized as playing a crucial role in providing these entitlements to every citizen in need, marking a move towards universalization and entitlements.
• There is an increased emphasis on promoting balanced development, providing all regions with equal opportunities for growth. This equity-promoting role requires allocating greater resources to backward regions to bridge gaps in basic services and human development. Although challenging due to poor governance structures, low organizational capacity, weak infrastructure, and unequal power structures, successful implementation of development programs in these backward regions would mainstream development in the country’s poorest areas.
• A fundamental change is observed in how government programs are funded and executed, with key programs increasingly funded by the Union Government and executed by State Governments. This ensures that entitlement programs are not hindered by resource constraints and allows funds to be consistently available for implementation at the district, block, and Panchayati Raj Institutions levels. This approach aims to achieve program outcomes seamlessly with local participation, ownership, initiative, and supervision.
• In the budget speech for 2006-07, the Union Finance Minister highlighted that the majority of Union Government resources would be allocated to seven flagship programs: Sarva Shiksha Abhiyan, Mid-day Meal Scheme, Drinking Water Mission, Total Sanitation Campaign, National Rural Health Mission, Integrated Child Development Services, and [program name].
• The National Rural Employment Guarantee Scheme received significantly increased funding during the fiscal year 2006-07. These flagship programs mark a shift in the development approach towards universalization and entitlements. Ensuring the reach and outcomes of these programs is a key consideration in their implementation, given the emerging paradigm of Union funding and state execution. The challenge lies in maintaining the smooth and regular flow of funds and ensuring accountability without distortion of incentives due to the dual nature of funding and execution.
• As these flagship programs share the common objective of delivering entitlements on a universal scale, it is crucial that they converge at the grassroots level, with their individual planning systems harmoniously integrated. This integration would establish a common implementation framework for all the schemes.
• The success of these programs depends on adequate and appropriate administrative and institutional arrangements. The design of these programs incorporates a multi-tier structure for implementation and monitoring, specifying roles and responsibilities for the respective ministries of the Union Government, departments of the State Governments, and local governments. The elaborate and complex structure underscores the criticality of various institutional structures working together. Successful program implementation requires both vertical coordination across different tiers of government and horizontal coordination across departments through local government for program execution.
• Among the seven flagship programs, the Rural Employment Guarantee Scheme under the National Rural Employment Guarantee Act (referred to as NREGA or the Act) stands out as the largest in terms of its outlay, coverage, and expected outputs. Establishing suitable administrative and financial management systems is crucial to achieving the NREGA’s objectives, ensuring benefits reach the intended groups, building capacity for decentralized implementation, and creating an effective information system for accountability and transparency.
• Ensuring a guaranteed reach involves defining households as nuclear families, including the head of the family, spouse, minor children, and any person substantially dependent on the family head. Additionally, job cards should be issued separately to each adult physically challenged person.

HOW CAN OUTCOMES BE GUARANTEED?

To ensure the socio-economic impact of the NREGA is assessed comprehensively, an evaluation should be conducted. The evaluation should involve the following activities:

• Identification of parameters for evaluation, focusing on livelihood security. Suggested parameters include:
• The average annual income of households.
• Prevailing market wages for agricultural labor.
• Average number of days families migrate in search of labor.
• Productivity of small and marginal land holdings.
• Quality and contribution of assets.
• Before finalizing the parameters, each should undergo validation through field studies.
• Conducting a baseline survey, to be completed within three months.
• Establishing threshold levels for parameters to indicate successful NREGA implementation.
• Conducting impact evaluations, with the first evaluation occurring after three years of NREGA implementation. This outcome evaluation can be incorporated into the expanded tasks of the National Sample Survey Organisation (NSSO) for district and sub-district level data development.

HOW CAN GOVERNMENT ENSURE CONVERGENCE?

To promote convergence, the following measures should be taken:

• All State Governments should conduct awareness generation programs with publicity and guidance material available in local languages. The effectiveness of these programs should be measured through independent sample surveys.
• Intensive use of All India Radio and Doordarshan in local languages, similar to the approach used for Sarva Siksha Abhiyan and National Rural Health Mission.
• Use of voter’s lists to ascertain the number of eligible households for proper coverage, although not the sole basis for registration. Monitoring the number of registered households against other data sources like Census and BPL surveys is essential for corrective action.
• Deployment of independent monitors in areas with inadequate participation from vulnerable sections to ensure their active involvement and entitlements. Full coverage for all habitations/hamlets should be ensured.
• Development of special norms for various Scheme parameters in difficult areas.

HOW CAN THE SCHEME BE EXPANDED?

• The expansion of NREGA to remaining areas should occur in a phased manner, with the block as the unit of expansion instead of the district. The most backward blocks should be included first. To bring objectivity to the expansion plan, it should be finalized within six months and announced well in advance.

For UPSC Prelims Resources, Click here

For complete UPSC Notes – Here

Join our Telegram Channel – Edukemy for IAS

• 1. Learn through Videos – here
• 2. Be Exam Ready by Practicing Daily MCQs – here
• 3. Daily Newsletter – Get all your Current Affairs Covered – here
• 4. Mains Answer Writing Practice – here

Visit our YouTube Channel – here