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    Global Experts Urge Indian Government to Protect MGNREGA in Open Letter

    1 month ago

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    A group of internationally respected economists, policymakers, legal experts and civil society leaders has written an open letter to the Government of India, expressing deep concern over the possible dismantling of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). The signatories have appealed for a renewed commitment to the programme, calling it one of the most important employment rights initiatives ever implemented worldwide.

    The authors describe MGNREGA as a rare example of a demand-driven law that guarantees the right to work, rather than treating employment as a welfare benefit. They note that the Act was passed with unanimous support in Parliament and has historically risen above partisan politics. At its core, the law recognises economic security and dignity as fundamental rights of citizens.

    According to the letter, MGNREGA provides employment to nearly 50 million rural households each year, generating over two billion person-days of work annually. The programme has played a significant role in promoting social equity, with women accounting for more than half of the workforce and nearly 40% of workers belonging to Scheduled Castes and Scheduled Tribes. The early years of the scheme also coincided with strong rural wage growth, and multiple studies have shown that it contributed positively to productivity and local economic output.

    However, the signatories warn that the programme’s effectiveness has steadily eroded due to inadequate funding and persistent delays in wage payments. They argue that the government’s recent move to shift greater financial responsibility to state governments—without providing adequate central support—poses a serious threat to the scheme’s survival. Since states lack the fiscal capacity of the Union government, this change could force poorer states to reduce or stop approving projects, directly limiting employment opportunities.

    The letter highlights a structural contradiction created by the new funding arrangement: while states remain legally responsible for providing employment, central funding is being reduced. States that earlier bore only a quarter of material costs are now expected to shoulder between 40% and 100% of total expenses. This, the authors argue, makes meaningful implementation nearly impossible.

    Concerns are also raised over increased discretionary powers that allow the programme to be suspended without clear justification. The prolonged suspension of MGNREGA funds in West Bengal over the past three years is cited as an example of how political considerations can undermine a legally guaranteed right. The new framework, they warn, normalises such risks and imposes unfunded obligations on states without consultation.

    Beyond wages, the letter stresses that MGNREGA plays a crucial role in creating long-term rural assets such as roads, ponds and irrigation facilities, which stimulate local economies and support environmental sustainability. Weakening the programme, they argue, will eliminate these broader economic benefits.

    The signatories conclude by stating that MGNREGA has earned global recognition for its innovative design and proven impact on poverty reduction and social justice. Dismantling it now, they warn, would be a historic mistake. They call for assured central funding, prompt wage payments and a clear return to the Act’s original promise of a guaranteed right to employment.

     

    The letter has been signed by prominent global figures, including Nobel laureate Joseph E. Stiglitz, economist Thomas Piketty, UN Special Rapporteur Olivier De Schutter, and several leading academics from the United States, Europe, and South Africa.

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