India scores big with NREGA

NEW DELHI: The United Progressive Alliance’s flagship scheme, National Rural Employment Guarantee Act (NREGA), could have saved the day for India when the world fought against rising job losses on account of century’s worst ever recession , says a report by the International Labour Organisation.

“There has been much progress in extending social protection through NREGA, which helped in maintaining levels of consumption and poverty,” the report on Global Employment Trends 2010 said.

The number of jobless worldwide reached nearly 212 million in 2009, an unprecedented increase of 34 million compared to 2007 but India has managed to stand the economic crisis onslaught through its ingenious initiatives such as NREGA.

The report suggests that India withstood the impact on its labour markets because of its large domestic market and high consumption.

ILO Director-General Juan Somavia has now asked for a co-ordinated effort to avert a far greater social and economic catastrophe. “As the World Economic Forum gathers at Davos, it is clear that avoiding a jobless recovery is the political priority of today,” he said.

Mr Somavia stressed that the same policy decisiveness that saved banks, should now be applied to save and create jobs, and livelihoods of people.

“This can be done through strong convergence of public policies and private investment ,” he said.
The South Asia region, comprising of countries such as India, Pakistan, Bangladesh and Sri Lanka has seen the smallest relative reduction in economic growth during the global economic crisis.