Centre for Economic Studies and Policies (CESP)
School of Social Sciences and Policy

(M.A. Economics Programme)

Summer Internship Report

by

Shaily J. Osta

Enrollment No: 1201212004
Session: 2012-14

Central University of Bihar
Camp Office: BIT Campus, P.O. B.V. College
Patna 800 014, Phone/Fax: 0612-2226538

Summer Internship Report

Submitted by Shaily J. Osta

Enrollment No: 1201212004
Session: 2012-14

Submitted to
Chandragupt Institute of Management, Patna

CERTIFICATE

This is to certify that Ms. Shaily J. Osta, student of Central University of Bihar, enrolment no. CUB 1201212004 worked as intern in the study entitled ‘Evaluation of MGNREGA DIWAS in Bihar’ assigned to Chandragupt Institute of Management Patna by Rural Development Department, Government of Bihar. She also worked to prepare report on ‘Inequality in Bihar’. This internship work has been done under my supervision and she significantly contributed in the aforementioned project.

______________________
(Dr. Debabrata Samanta)
Place:
Date:

DECLARATION BY STUDENT

I, Shaily J. Osta, hereby declare that this project report entitled “Economic inequality of Bihar, Evaluation of MGNREGA DIWAS in Bihar” has been prepared by me as an intern under the internship programme of Central University of Bihar during the summer internship at Chandragupt Institute of Management, Patna from 04th June 2013 to 13th July 2013 for academic purposes only. The contents of the internship report have not been submitted before to any institute/university/organization.

___________________________
Signature
Date

ACKNOWLEDGMENT

I acknowledge my profound sense of gratitude and indebtedness to my mentor Mr. Debabrata Samanta Prof. CIMP, Patna for inspiring socialistic guidance constant encouragement, invaluable suggestions, proper direction and keen interest throughout the period of my internship.
I will also give a lot of thanks to the Director Dr. V. Mukunda Das, project coordinator Vijaya Bandyopadhayaya and all staff of CIMP, Patna for their full support in my summer internship.
I am also thankful to Prof. Janak Panday, Vice Chancellor Central University of Bihar, Patna and Prof. Sunil Ray, Head, Center of Economic Study and Policy, School of Social Science and Policy and Mr. Atish Kumar Dash, Asst. Prof. CESP, Central University of Bihar, for their support and who gave me chance to learn something new through internship.
I sincerely thank to my friends for their support and cooperation they provided me during my internship.

PREFACE
I Shaily J Osta student of Central University of Bihar, Patna, worked as summer intern in Chandragupt Institute of Management, Patna from 4th June 2013 to 12th July 2013.In this course of time our internship work has two parts:- Part A:
In the internship period during 1st week of June, 2013 to 2nd week of June, 2013, I had been assigned to develop a write up regarding inequality in Bihar in Economic sector.
The write up is given in this report.
Part: B
In the internship period during 2nd week of June, 2013 to 2nd week of July, 2013, I have worked as researcher in the study ‘Evaluation of MGNREGA Diwas in Bihar’. As intern, the tasks undertaken were to assist Project coordinators in * Review of circulars of Rural Development Department, Bihar regarding MGNREGA Diwas. * Prepared table of important office order regarding MGNREGA Diwas * Preparation of questionnaire for: a. House hold level data b. Focus Group Discussion (FGD) clue for Community level c. Gram Panchayat level data d. Clue for Focus Group Discussion (FGD) with APOs of the sample blocks e. Clue for Focus Group Discussion (FGD) with APOs of the sample blocks * Field visit and testing of household level, GP level as well as block level questionnaires in DalsinghSarai and Bibhutipur blocks in the district of Samastipur * Field visit and testing of household level, GP level as well as block level questionnaires in DalsinghSarai and Bibhutipur blocks in the district of Samastipur
The study is under process, so the final report regarding findings of the study cannot be provided. The district visit reports along with findings are given in this internship report.

PART: A

Economic inequality of Bihar

Introduction
Economy of Bihar is an integral part of the government of Bihar. Bihar is largely service oriented economy, but it also has a significant agricultural base.The state also has a small industrial sector. As of 2008, agriculture accounts for 35%, industry 9% and service 55% of the economy of the state. Bihar was rated as the second best manufacturing state in India in 2008. Bihar is home to several public sector projects like Oil refinery of Indian Oil Corporation, Pyrites, Phosphates and Chemicals Ltd (PPCL) etc. The recent data on state income shows that the economy of Bihar has grown steadily during the Eleventh Plan period (2007-12). Bihar has the lowest GSDP per capita in India. The GSDP stands at 112,424 Crore Rupees ($21 billion nominal GDP). In actual terms, as of 2008, Bihar state GSDP is ranked 14 out of 28 states. Since November 2005, a new government led by Nitish Kumar has implemented a number of economic reforms. After that a positive improvement in the economy of the Bihar and also of Patna has taken place. For example, in June 2009, the World Bank reported that Patna was the second best city in India to start a business after Delhi.January 2010, the Indian government's Central Statistics Organisation reported that in the five-year period between 2004–05 and 2008–09, Bihar's GSDP grew by 11.03%, which made Bihar the second fastest growing economy in India during those 5 year period, just behind Gujarat’s growth of 11.05%.
The Bihar Times on 20th feb.2013 states that Bihar had recorded a staggering growth rate of 11.95 per cent annually at constant prices during 11th Five Year Plan. This figure is highest among states. The Economic Survey 2012-13 in the state Assembly he said per capita income (NSDP at current price) of Bihar is Rs 25,653 as against Rs 60,972 for all India in 2011-12.The state witnessed impressive growth in all sectors. For example, the production of cereals in 2011-12 was 17.2 million tonnes compared to 10.4 million tonnes in 2010-11. Production of rice increased to a new high of 8.2 million tonnes in 2011-12 against 3.1 million tonnes in 2010-11.

Economic indicators:
Gross State Domestic Product
Per Capita Income
Agricultural Development
Industrial Development
Infrastructure Development
Power Sector Reform
Foreign Direct Investment
Transport development
Telecommunication Development

Disparities in Economic Indicators
Gross State Domestic Product

State | GSDP in billion$(2011) | GSDP Per Capita in billion$(2011) | Maharashtra | 190.310 | 1,568 | Uttar Pradesh | 109.770 | 488 | Andhra Pradesh | 100.350 | 1,077 | Tamil Nadu | 97.650 | 1,350 | Gujarat | 90.650 | 1,350 | Bihar | 35.660 | 3,40 |
Source: rbi.org.in * The GSDP of Bihar has $35.660 billion in 2011.Bihar state GSDP is ranked 14 out of 28 states.In January 2010, The Indian Government Central Statics Organisation Reported that in five year between 2004-05 and 2008-09, Bihar’s GSDP grew by 11.03%.

Per Capita Income State | Per capita income in Rs. (2011-2012) | Maharashtra | 1,01,314 | Andhra Pradesh | 68,970 | Bihar | 23,435 | Source: indiastat.com * Bihar per capita income is very low as compared to Maharashtra.It shows unequal distribution of income in Bihar.

Agricultural Production

State | Agriculture growth rate(2001-01 to 2009-10) | Gujarat | 10.97% | Maharashtra | 10.50% | Chhattisgarh | 6% | Andhra Pradesh | 5.2% | Bihar | 4% |
Source: Planning commission
Bihar was 4% of agriculture growth rate in 2001- 2010, this state was low productivity in comparison to other state, but in 2011-2012 financial year Bihar has highest growth rate of 17.16% in agriculture. This is a good sign for economy of Bihar.The state produces 166 lakh metric tonnes (MT) of food grain which is highest in the country.
Rice production in the state increased 2.5 times in 2011-2012 compared to previous financial year, whereas 31.02 lakh MT was produced in 2010-2011.the production went up to 83.05 lakh MT in 2011-2012.The average total growth rate during the last five year was 11%.The Government of Bihar has a largest to achieve an average growth rate of 13% in the next five year.
The state having huge potential in Paddy, Wheat, Maize, Pulses and Oilseeds production.Use of fertilizer is very huge in Bihar but Consumption is low in comparison to other state like Punjab, Andhra Pradesh, and Maharashtra.If fertilizers are made available to the farmers in time, it will increase the production and productivity.

Industrial Development
Type of Industries * Agriculture base industry * Forest base industry * Cottage base industry * Miscellaneous industry * Silk industry

* Bihar possesses a rich sugarcane belt.The districts with heaviest concentration of population are Champaran and Saran. * Bihar has only three jute mills which employ 7,404 people in all (2003). * Bihar is rich in forest goods like Timber, lac, Bamboo, Sabi grass, Silk worms etc.There are 300 saw mills and are almost uniformly distributed. * Cottage industry almost invariably mean rural industry, most of them are in the Domestic stage. * The most important is the Hand loom industry; in 1960s 10 lakh people employed in 2 lakh Handloom industry. * The paper mills at Samastipur and Dharbhanga,Bata shoe factory at Digha and Mokamaghat.Bihar is one of the most important producers of Non Mulbery Silk.Bihar contribution to India's total tasar silk production amount to about 40%. * There is a silk institute at Bhagalpur and Sitapur. * The Central Bihar Industrial Area Development Authority has promoted number of industrial estates at Muzzaffarpur, Hajipur, Ara, Nalanda and Aurangabad.

Infrastructure Development
In 1991 were initiated Electricity, Roads, Ports and Telecommunication were reserved for the Public Sector.Now, The Infrastructure development is open to private investments.The Government of Bihar given priorities in building infrastructure to attract the investors and has taken various steps to increase its efficiency.

Power sector Reform
The Electric Power Sector is a core component of BIHAR Infrastructure. Its expansion in needed for the success of Bihar Economic Growth.At present BIHAR needs 900 MWs but produces only 100 MWs and buys 800 MWs from NTCP.THE State Electricity Board in Bihar is facing financial breakdown.Every Day SEB losses approximately Rs.2 crore.
Loss of Electricity

Sector | Percentage | Industrial | 32.30 | Household | 22.67 | Agriculture | 24.70 | Commerce | 6.35 | Etc. | 6.35 | * Source: 51 Electrical Distribution Report
Inspite of these SEB has taken various steps to increases the Electricity Production.

Foreign Direct Investment
Maharashtra has occupied the first rank in attracting FDI approvals worth Rs.4, 74,913.79 million during August 1991 to December 2007, which comprised 17.36 per cent of the total FDI approved in the country during this time.Delhi occupied the Second place in FDI approvals with a share of 13.10 per cent.Whereas Bihar is at Sixteenth position.This is because FDI depends on Socio-Economic variable; Bihar is poor in these aspects.They are: Electricity, Consumption, Large area, Population.

Transport Development * ROAD * For Economic Growth BIHAR has to develop proper networking of Road. * Government of Bihar with the help of centre has given direction to various project they are:
(1) Pradhanmantri GramSadakYojana. (2) New Road Tax
(3) Road Project * Almost in every district four lane roads is being constructed.

Spending on Selected Development Aspects in
2000-2001(in crores) State | Roads and Bridges | Roads and Bridges (Per capita income in Rs.) | Andhra Pradesh | 1210.0 | 159.8 | Assam | 387.1 | 145.3 | Gujarat | 901.5 | 178.3 | Bihar | 369.4 | 44.6 |
Source: RBI and census of India 2001. * BIHAR per capita spending on Road is Rs.44.60,this is 38% of the national average * Railway: * Railway Ministry has agreed to spend Rs.566 crores 34 lakh to start three project in Bihar for the development of North Bihar. * A new railway bridge on Ganga is being constructed to boost the economic development of Bihar. * * National Highway and Bihar * There are 23 National Highway, whose length is 3,384 kilometre out of them 668 Km is being constructed under pradhanmantariSadakYojana.

Telecommunications Development

* The development of the Telecommunication Sector is a key to growing international competitiveness of Bihar.Bihar registered the maximum increase in annual Telecom subscribers, 51 per cent in 2006-07, and 88.2 per cent in 2007-08.Bihar also has the largest growing mobile phone market in India.The total number of mobile phone in Bihar increase from 57, 73,370 in 2006-07 to 108, 69,459 in 2007-08.

References: 1) Kumar S., The Social, political process and the Economic Development of Bihar, MAYANK publication pvt.ltd, (2009) 2) Dayal P., Bihar Resource and Planning, janki prakashan, (2002) 3) India- A Pocket Book OF Data Series, EPW Research Foundation,(2012) 4) www.samaylive.com 5) www.brandbihar.com 6) www.rbi.org.com

PART: B

EVALUATION OF MGNREGA DIWAS IN BIHAR

SECTION 1:
Introduction
The Mahatma Gandhi National Employment Guarantee Act (MGNREGA) is an Indian job guarantee scheme, enacted by legislation on August 2005.The scheme provides a legal guarantee for one hundred days of employment in every financial year to adult members of any household. Around one third of the stipulated work force is women.
For the first time, right to work has been made a legal compulsion and entitlement for unemployment allowances, in case of non-allotment of employment; it is assured through this act. The other key attributes of this scheme are time bound guarantee, labour-intensive work, decentralized participatory planning, women empowerment, work site facilities, and above all transparency and accountability through the provision of social audits and right to information. NREGA is a unique effort in strengthening grass-root democracy in India. For the first time, the Indian state has legally mandated the implementation of a mechanism to strengthen transparency and accountability at every step of the delivery chain, by creating a platform for citizens to articulate their voice and directly engage with the state.

This act was introduced with an aim of improving the purchasing power of the rural people, primarily semi or unskilled work to people living below poverty line in rural India.
Section 3.3 of the operational guidelines of ‘Mahatma Gandhi National Rural Employment Guarantee Day or RojgarDiwas.It is a unique and praiseworthy initiative by Rural Development Department of government of Bihar to hold MGNREGA Diwas in a particular Gram Panchayat of all blocks, on every Wednesday in all Districts. At this day a team from district level under leadership of Senior Deputy Collector visit the concerned Gram Panchayat and conduct inspection and social audit.The team visits Gram Panchayats andcheck different documents, verify quality of implementation physically, check different components of effective implementation, usefulness of assets created, wage material ratio, record keeping, job card, pass book of beneficiaries, etc., and make people aware about their right. The basic objective of MGNREGA DIWAS is to improve quality, effectiveness and transparency in MGNREGA implementation through adequate and effective monitoring.

SECTION 2:

Objectives of the study:
The present study aims to analyse the impact of MGNREGA Diwas and to improve the quality, effectiveness and transparency in MGNREGA implementation through adequate and effective monitoring. The main objectives of the study are to: 1. Assess current status of holding MGNREGA DIWAS in each district including I. Assessing the institutional set-up : its roles & responsibilities II. Assessing implementation mechanism of MGNREGA DIWAS III. Assessing the existing learning process through holding the event IV. Assessing the information flow and their effectiveness on MGNREGA DIWAS 2. Assess the impact of holding MGNREGA DIWAS on I. Awareness of people regarding MGNREGA II. Implementation of schemes as per provision III. Issue and possession of job cards & pass book IV. Allotment of work and work site benefits V. Employment generation VI. Proactive Disclosure VII. Payment of wages VIII. Unemployment Allowance IX. Quality and usefulness of created assets X. Record keeping XI. Complaint and Grievances

3. Provide inputs and suggestions for improving the current procedures for effective implementation of the MGNREGA DIWAS.

SECTION 3:
METHODOLOGY AND SAMPLING DESIGN

Method of Data Collection
Data collection shall be done both through field visits and other means including focus group discussions. Data collection shall be done through focus group discussion and questionnaires devised for each particular group of stakeholders. The template shall cover both quantitative/objective and qualitative/subjective aspects to capture status of holding MGNREGA DIWAS and assess the process and procedures of holding MGNREGA DIWAS.

Tools designed for the study
The key issues pertaining to all objectives of the study are identified and survey instruments designed accordingly. Following tools have been designed for carrying out the study:
Annexure 1: Questionnaire for the Household Level
Annexure 2: FGD Clue for Community Level
Annexure 3: GP Level Questionnaire for PRS
Annexure 4:GP Level Questionnaire for Mukhiya Interview
Annexure 5: FGD Clue for PO at Block Level
Annexure 6: Block Level Data Collection Sheet
Annexure 7: District Level Data Collection Sheet
Annexure 8: Questionnaire for Interview with DDC/DRDA/DM
Annexure 9: Clue for District Level FGD

My Contribution
In the study I have reviewed orders and guidelines related to MGNREGA and MGNREGA Diwas. I have also assisted in preparation of draft questionnaires for the study. To test the questionnaire, I assisted in two pilot visits undertaken in Samastipur and Nalanda district.
Brief reports of the two filed visit are given below. Field visit for Questionnaire Testing

A BRIEF NOTE ON THE VISIT TO SAMASTIPUR ON 3rd JULY 2013 BY CIMP PROJECT TEAM MEMBERS AND CUB STUDENTS.
The team met Mrs. Neelamkumari Devi, mukhiya, gram panchayat raj Malpurpurwaripatti, Programme Officer (PO) of Dalsingsarai block was communicated through Pradhan. PO reported that he did not receive any communication regarding our visit as well he told he was at the district headquarter. The team also met PO of Bibhutipur block, who came to Dalsingsarai block to upload data related MGNREGA implementation. The team had a discussion with PO of Bibhutipur along with other block level officials and PTA.
Summary of discussion is as follows: * MGNREGA Diwas is under process in one of the GP under his block. * Regarding venue of holding MGNREGA Diwas, the PO informed generally they get information either Tuesday night or Wednesday morning, which they immediately pass through to the concerned GP.
The findings of the visit can be summarised as follows: * Holding of MGNREGA Diwas is in process. * Block and GP et information at the last hour of the event and there are instances that the block or GP has not been contacted. The district only uploads the schedule in the website and block has to take necessary action accordingly. * Neither block nor GP has been trained specifically for holding MGNREGA Diwas. * GP receives no instruction for canvassing to invite people to participate in the MGNREGA Diwas inspection. * People found have no knowledge about MGNREGA Diwas or Budhwar ki Zanch. They told one team has came and asked them some question related to MGNREGA but no miking or canvassing or any other invitation was made. * Holding of MGNREGA Diwas has improved the record keeping. * Data collection planning

Data Collection Template

Field Visit for data collection/ monitoring

Pre-testing of Data Collection templates / questionnaires.

Data Validation and Approval

Interview with district level key officials, personnel involved in implementation

Physical observation of Holding MGNREGA DIWAS in some sample GP
Checking of related documents of the sample GP and interview with Mukhiya and PRS
FGD with APOs

Regular physical and numerical verification of collected data.

Periodic check for Accuracy and Consistency

Data Collection Methodology
Due to the fear of get caught or found guilty pace of implementation got slowed down.

A BRIEF NOTE ON THE VISIT TO Nalanda ON 9th July 2013 BY CIMP PROJECT TEAM MEMBERS AND CUB STUDENT
The purpose of the visit was to pilot testing of draft questionnaire prepared for the study ‘Evaluation of MGNREGA Diwas in Bihar’. We met with Mr. Kundan Kumar, DM Nalanda, Sri Jiut Singh, Director, DRDA, Nalanda and Office-in-charge, district development branch, Sri Murli Prasad Singh. * The team had a discussion with the two along with the DM. Our team came to know that:-
MGNREGA Diwas has been held in 149 GPs out of total 249 GPs. The process is still going on and the district has sufficient teams. The MGNREGA Diwas team keeps a check list with themselves to check the following documents: Scheme Record, Passbook Register, Muster Roll, Photographs of work site, Estimate Register, Measurement Book, etc.
District officials are informed on Tuesday evening and the district officials in its turn inform the concerned Block on Wednesday morning. Director, DRDA uploads visit report time to time on Google docs. No case found where unemployment allowance is given.GP does not keep any complaint register. * Mukhiya and PRS are not allowed to be there at the time of inspection, to keep the inspection out of influence. That process of selecting team member is random. Likewise selection of GP/Block is also random. Lack of manpower and increasing responsibilities are the problem in the team selection.

The findings of the visit can be summarized as follows:
Positive impact is that Holding of MGNREGA Diwas has improved the record keeping. The negative impact is that generation of employment have decreased; speed of work has also decreased.

SECTION 4:
Finding of the Study
The study carried on to evaluate MGNREGA Diwas implementation in Bihar, which is a typical initiative by Government of Bihar to improve quality, effectiveness and transparency in MGNREGA implementation through adequate and effective monitoring. After field visit of two sample districts it has been found that Holding of MGNREGA Diwas has improved the record keeping but generation of employment and speed of work have decreased. People have no knowledge about MGNREGA Diwas or Budhwar ki Zanch. Data collection planning

Data Collection Template

Field Visit for data collection/ monitoring

Pre-testing of Data Collection templates / questionnaires.

Data Validation and Approval

Interview with district level key officials, personnel involved in implementation

Physical observation of Holding MGNREGA DIWAS in some sample GP
Checking of related documents of the sample GP and interview with Mukhiya and PRS
FGD with APOs

Regular physical and numerical verification of collected data.

Periodic check for Accuracy and Consistency

Data Collection Methodology
Due to the fear of get caught or found guilty pace of implementation got slowed down. The process is still going on and the district has sufficient teams.

References: 1. Dutta P., Murgai R., Ravallion M., Walle D. Van de, (2012) Does India’s Employment Guarantee Scheme Guarantee Employment?; Economic and Political Weekly; April 21, 2012 vol 57, No 16. 2. Khan A. U. & Saluja M.R., Impact of the NREGP on Rural Livelihoods, 3. Pankaj A.K., (year) Demand and Delivery Gap, A Case for Strengthening Grass-roots Institutions in Bihar and Jharkhand. 4. www.rdd.bih.nic.in 5. Circulars regarding MGNREGA Diwas