India's rural job schemes are barriers to development: World Bank

16 March 2009

The central government's National Rural Employment Guarantee (NREGA) scheme and other poverty alleviation schemes act as policy barriers to economic development and perpetual alleviation of poverty, according to the World Bank.

The government's watershed programmes and schemes for development of small and medium towns are acting as "policy barriers to internal mobility", the bank said in its 'World Development Report' 2009.

The 'World Development Report 2009: Reshaping Economic Geography' challenges the assumption that economic activities must be spread geographically to benefit the world's most poor and vulnerable.

''Throughout history, mobility has helped people escape the tyranny of poor geography or poor governance,'' said Indermit S Gill, director of WDR and regional chief economist for the World Bank's Europe and Central Asia region at a media briefing on the report.

The report said the schemes negate the economic benefits of migration and in fact, attempts to counter migration.

Arguing in favour of mobility of labour, the report said, it is necessary as "lifting people out of poverty requires shifting populations from villages to cities." (See: Governments must promote mobility of people: World Bank)