{"id":34384,"date":"2018-10-30T17:19:52","date_gmt":"2018-10-30T11:49:52","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=34384"},"modified":"2018-10-30T17:19:52","modified_gmt":"2018-10-30T11:49:52","slug":"long-run-trends-in-rural-wages","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/long-run-trends-in-rural-wages\/","title":{"rendered":"Long-run trends in rural wages:\u00a0"},"content":{"rendered":"<p><a href=\"http:\/\/www.livemint.com\/Opinion\/pXMVVIXts66Np5fw1AIyHO\/Longrun-trends-in-rural-wages.html\"><span style=\"font-weight: 400;\">Long-run trends in rural wages<\/span><\/a><span style=\"font-weight: 400;\">:\u00a0<\/span><\/p>\n<p><b>Context:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Rural wages in India over the past few years seem to have been ignored.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">This collapse and stagnation deserves a closer look than it has received thus far.<\/span><\/li>\n<\/ul>\n<p><b>Rural economy in India: An overview:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">India is known as an agricultural country, as most of the population of villages depends on agriculture. Agriculture forms the backbone of the country\u2019s economy.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The agricul\u00adtural sector contributes most to the overall economic development of the country.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">But the Indian agricultural sector is heavily prone to the<\/span><b> vagaries of the monsoon<\/b><span style=\"font-weight: 400;\"> and hence, excessive drought or rainfall are the order of the day.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>This leads to failure of crop leading to poverty, instability \u00a0and farmers distress in a large number.<\/b><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The small and borderline \u00a0farmers,hence, have to look for other sources of income and form a large part of the manual labour in nearby cities.<\/span><\/li>\n<\/ul>\n<p><b>Commercialization of Agriculture:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">In the present days, a large part of rural economy has been opened up, which has made commercialization of agricul\u00adture possible.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">This has also made the average farmer <\/span><b>more prone \u00a0to the price fluctuations in the commodities market.<\/b><\/li>\n<li style=\"font-weight: 400;\"><b>Excessive reliance on wheat and rice <\/b><span style=\"font-weight: 400;\">and the successful implementation of the MSP\u2019s only for these two, have also added to the vows of the farmers.<\/span><\/li>\n<\/ul>\n<p><b>Rural Society and \u00a0Urbanism:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Many industries have been flourished in rural areas, depriving the farmers of the agricultural land. This problem is aggravated when the farmers are not adequately compensated for the loss of land due to<\/span><b> lack of effective land acquisition laws.<\/b><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Urbanism also brought development of rural roads and transport and communication.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Contacts with the urban areas have created awareness among the rural masses about consumer goods.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Also, due to green revo\u00adlution, the income levels of the rural people have increased, which encourages such consumption of goods possible.<\/span><\/li>\n<\/ul>\n<p><b>Government initiatives:<\/b><\/p>\n<p><b>Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA):<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">MGNREGA attempts to address two of the key concerns related to poverty in India: unemployment and a flagging agriculture sector.<\/span><\/li>\n<\/ul>\n<p><strong>The present policy frame of MGNREGA is based on three-pronged accomplishment to alleviate and reduce poverty in the country which constitutes:<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Stepping up of economic growth<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Direct strike on poverty through employment, income-generating programmes and assets creation for the poor and<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Human and social development policies for the poor and the needy.<\/span><\/li>\n<\/ul>\n<p><b>Deen Dayal Upadhyaya Grameen Kaushalya Yojana<\/b><strong> or DDU-GKY:<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> It is Government of India youth employment scheme.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">It aims to target youth, under the age group of 15\u201335 years. DDU-GKY is a part of the National Rural Livelihood Mission (NRLM), tasked with the dual objectives of adding diversity to the incomes of rural poor families and cater to the career aspirations of rural youth.<\/span><\/li>\n<\/ul>\n<p><b>Prime Minister\u2019s Employment Generation Programme (PMEGP)<\/b><span style=\"font-weight: 400;\">: <\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Jobs created by the Prime Minister\u2019s Employment Generation Programme (PMEGP), generates employment in rural and urban areas by initiating new micro enterprises and small projects.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Startup India: <\/b><span style=\"font-weight: 400;\">Under this programme, the government encouraged banks to provide finance to young entrepreneurs to start their own business ventures.<\/span><\/li>\n<\/ul>\n<p><b>What are the problems of rural wages?<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Lower income of the people in rural areas is because of the<\/span><b> low prices of agricultural products<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Most <\/span><b>new jobs in the rural are for unskilled workers<\/b><span style=\"font-weight: 400;\">, so the wages and nature of the work are unattractive.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">There is a <\/span><b>strong gender disparity<\/b><span style=\"font-weight: 400;\">, where the female worker is paid only 70% of what the male worker earns.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">With the advent of Green Revolution, money wage rates started increasing, <\/span><b>but with the raise of prices, real wage rates did not increase<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Increase in wages, unaccompanied by productivity increases, could lead to a wage-price spiral<\/b><span style=\"font-weight: 400;\">, thereby offsetting the positive impact of initial increase in real wages on welfare. <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">If increase in wages in one sector leads to subsequent increase in wages across the economy, the <\/span><b>competitiveness of the economy could be negatively impacted.<\/b><\/li>\n<\/ul>\n<p><b>What are the drawbacks of rural wages programmes in India?<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Objectives of one program conflict with those of others, and there is no institutional mechanism for reconciling them.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Poor norms of fixation, enforcement, implementation and coverage in various parts of the country are other important drawbacks.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Different wages are fixed for the same work in different sectors. Thus there is no justification of labour cost.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The funds which are allotted for a particular wage program is not supervised. Hence, it is not used with honesty.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">There is ardent insufficiency of manpower, training and efficiency to run these rural wages programmes. \u00a0<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Long-run trends in rural wages:\u00a0 Context: Rural wages in India over the past few years seem to have been ignored. This collapse and stagnation deserves a closer look than it has received thus far. Rural economy in India: An overview: India is known as an agricultural country, as most of the population of villages depends&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/long-run-trends-in-rural-wages\/\">Continue reading <span class=\"screen-reader-text\">Long-run trends in rural wages:\u00a0<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-34384","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":17,"cached_at":""},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/34384","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=34384"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/34384\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=34384"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=34384"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=34384"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}