Monday, October 13, 2014

Sharp letter from 28 leading economists to modi

Sharp letter from 28 leading economists to modi

NEW DELHI:Prime Minister Narendra Modi has received a sharp letter from 28 leading economists who say they fear his government is trying to dilute the rural jobs scheme brought in by the previous UPA government.
"We are writing to express our deep concern about the future of the National Rural Employment Guarantee Act for NREGA," the letter said.
"It is alarming to hear of multiple moves (some of them going back to the preceding government) to dilute or restrict the provisions of the Act. Wages have been frozen in real terms, and long delays in wage payments have further reduced their real value," the economists wrote.
The rural jobs scheme was introduced in 2005 with cross-party support. Arguing that its benefits outweigh its shortcomings, the economists said about 50 million households are getting jobs each year at a relatively small cost, and there have been "wide-ranging social benefits" too.
They said it was worrying that the central government appeared to be considering changing the law to confine the jobs guarantee scheme to the 200 poorest districts of the country. This, the economists warned, runs against the basic principle of the scheme that gainful employment that gives economic security is a human right.
"The message seems to be that the new government is not committed to the NREGA and hopes to restrict it as much as possible," the economists wrote, urging PM Modi to ensure that the programme receives all the support it needs to survive and thrive.
The signatories to the letter include Dilip Abreau of Princeton University, Pranab Bardhan of Berkeley, development economist Jean Dreze, Maitreesh Ghatak of London School of Economics, Ritika Khera of IIT Delhi and Anirban Kar of the Delhi School of Economics.

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