Evaluation of MGNREGA: data envelopment analysis approach
16 Jan 2017-International Journal of Social Economics (Emerald Publishing Limited)-Vol. 44, Iss: 2, pp 181-194
TL;DR: In this paper, the authors developed an efficiency evaluation model, the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) implementation efficiency model (MIEM), to evaluate the rural employment guarantee scheme in India.
Abstract: Purpose
How can efficiency of a welfare scheme be measured? The purpose of this paper is to develop an efficiency evaluation model, the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) implementation efficiency model (MIEM), to evaluate the rural employment guarantee scheme in India.
Design/methodology/approach
MIEM employs data envelopment analysis (DEA) to compare relative efficiency of MGNREGA implementing states. It uses policy implementation process as a central “black-box” about which not much can be said, to account for state-wise implementation differences.
Findings
Based on administration, funds, expenditure, employment created, works executed and completed, women beneficiaries and households completing 100 days of employment, the MIEM captures current implementation efficiency and provides suggestions to propel inefficient states toward efficiency.
Practical implications
DEA has operationalized MGNREGA evaluation. As a decision support system, MIEM assists evaluators to develop guidelines from better performing states. It is anticipated that it will facilitate scaling up MGNREGA in inefficient states.
Social implications
The model developed here can be applied to diverse evaluation conditions thus leading to better utilization of scarce resources.
Originality/value
This paper is one of few to use DEA to evaluate MGNREGA, and is one of the first to evaluate all India implementing states on efficiency.
Citations
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31 citations
TL;DR: In this article, the authors analyzed the performance of social enterprises from the efficiency perspective, incorporating both operational (economic) and social performance measures, when considering the dual-role factor.
Abstract: Social enterprise is recognized as an alternative for sustainable development, as it balances social aspects with economic prosperity. Evaluating social enterprises is very important for both the enterprises themselves and the government, since grants from the government or institutions highly depend on their performance. While relatively significant attention is paid to the social value that these enterprises create, there is a lack of interest in assessing the operational performance directly linked to the sustainable operation of social enterprises. Therefore, this research analyzes the performance of social enterprises from the efficiency perspective, incorporating both operational (economic) and social performance measures. To this end, we apply data envelopment analysis to assess the performance of social enterprises when considering the dual-role factor—the grants. To facilitate clarity for readers, a dataset of Korean social enterprises is used. Through this analysis, we show that the grants can be used for performance evaluation in different ways for each enterprise. Furthermore, an industry-specific analysis provides more realistic and feasible benchmarking information to which inefficient social enterprises should refer. We expect that these findings will complement existing methods of social enterprise evaluation.
12 citations
Cites background from "Evaluation of MGNREGA: data envelop..."
...[18] provides a DEA-based efficiency evaluation model that takes into account social economic factors....
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TL;DR: In this article, the authors compare the profitability and labour productivity of social enterprises in the State of Victoria in Australia with that of small- and medium-sized business enterprises (SMEs) in the same state.
Abstract: The social economy – including not-for-profits, cooperatives, mutual organisations and social enterprises – is playing a stronger role than ever in the delivery of public policy. Yet, these organisations are often anecdotally viewed as relatively inefficient providers. The purpose of this paper is to compare the profitability and labour productivity of social enterprises in the State of Victoria in Australia with that of small- and medium-sized business enterprises (SMEs) in the same state. This paper found that, although social enterprises generally generated smaller profits and, therefore, could be less profitable, their relative level of labour productivity (value added and income to labour employed) was comparable or higher than that of SMEs. This paper responds to the need for comparative insights about social enterprise performance and considers the implications of these findings for new public governance.,The social economy – including not-for-profits, cooperatives, mutual organisations and social enterprises – is playing a stronger role than ever in the delivery of public policy. Yet these organisations are often anecdotally viewed as relatively inefficient providers.,This paper found that, although social enterprises generally generated smaller profits and, therefore, could be less profitable, their relative level of labour productivity (value added and income to labour employed) was comparable or higher than that of SMEs. This paper responds to the need for comparative insights about social enterprise performance and considers the implications of these findings for new public governance.,This is the first work that has been done of this sort that has looked specifically at Australia circumstances.
10 citations
TL;DR: In this paper, the authors evaluated the technical efficiency and productivity changes in the integrated steel plants in India over a period of five years and found that private sector steel plants with larger capacity and which have adopted the latest and most modern technologies are more efficient and productive over the study period.
Abstract: Purpose
The purpose of this paper is to evaluate the technical efficiency and productivity changes in the integrated steel plants in India over a period of five years.
Design/methodology/approach
Since this evaluation of integrated steel plants needs consideration of multiple input and output factors, data envelopment analysis (DEA) has been employed including bootstrapping (to account for statistical noise) to evaluate the relative efficiency of the steel manufacturing units. The efficiency and Malmquist productivity indices of a sample of ten integrated steel plants producing around 55 percent of the industry’s output were determined for the period 2008-2013. The results of these changes were further categorized according to the management control, route followed to produce crude steel, size and age of these steel plants, for gaining insights.
Findings
The study finds that private sector steel plants with larger capacity and which have adopted the latest and most modern technologies are more efficient and productive over the study period.
Practical implications
Public sector steel plants should therefore be provided with more autonomy and delegation of power and should be agiler in responding to market requirements as well as increasing their installed capacities to be competitive in technical efficiency and productivity as well as profitability in the long term to ensure sustainable achievements.
Originality/value
Productivity changes over time, both with respect to technological and efficiency changes, for the Indian integrated steel plants producing comparable products using DEA.
7 citations
TL;DR: In this paper , the authors analyzed livelihood security funding and opportunities for ecosystem restoration, drawing on India's Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), the world's largest livelihood security program.
Abstract: Earth faces an unprecedented ecological crisis: the destruction of its ecosystems. Despite increasing interest in restoration, including through the UN Decade on Ecosystem Restoration (Decade), lack of financing and resources mean efforts to reverse degradation have advanced slowly. Restoration efforts require new approaches to ensure the needs of different stakeholders are met. However, analyses of policies and opportunities that help to finance restoration while improving socioecological outcomes, are lacking. This paper analyzes livelihood security funding and opportunities for ecosystem restoration, drawing on India's Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), the world's largest livelihood security program. The paper analyzes MGNREGA's performance between financial years 2013–2021, focusing on the financing of ecosystem restoration-related works, community mobilization and policy implementation in the early part of the COVID-19 pandemic. Then, the paper reflects on the benefits and shortcomings of MGNREGA and considers wider lessons for the Decade. MGNREGA generated significant funding flows and numbers of projects nationally, which can contribute to ecosystem restoration. Policy design enabled the continuation and increase of works even during the first year of the COVID-19 pandemic. Our findings demonstrate the potential of linking ecosystem restoration with development policies to unlock funds, on a national scale. To maximize contributions to ecosystem restoration nevertheless requires capacity building, inclusion of environmental indicators and integration of best ecosystem restoration practices.
6 citations
References
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TL;DR: A nonlinear (nonconvex) programming model provides a new definition of efficiency for use in evaluating activities of not-for-profit entities participating in public programs and methods for objectively determining weights by reference to the observational data for the multiple outputs and multiple inputs that characterize such programs.
25,433 citations
TL;DR: The CCR ratio form introduced by Charnes, Cooper and Rhodes, as part of their Data Envelopment Analysis approach, comprehends both technical and scale inefficiencies via the optimal value of the ratio form, as obtained directly from the data without requiring a priori specification of weights and/or explicit delineation of assumed functional forms of relations between inputs and outputs as mentioned in this paper.
Abstract: In management contexts, mathematical programming is usually used to evaluate a collection of possible alternative courses of action en route to selecting one which is best. In this capacity, mathematical programming serves as a planning aid to management. Data Envelopment Analysis reverses this role and employs mathematical programming to obtain ex post facto evaluations of the relative efficiency of management accomplishments, however they may have been planned or executed. Mathematical programming is thereby extended for use as a tool for control and evaluation of past accomplishments as well as a tool to aid in planning future activities. The CCR ratio form introduced by Charnes, Cooper and Rhodes, as part of their Data Envelopment Analysis approach, comprehends both technical and scale inefficiencies via the optimal value of the ratio form, as obtained directly from the data without requiring a priori specification of weights and/or explicit delineation of assumed functional forms of relations between inputs and outputs. A separation into technical and scale efficiencies is accomplished by the methods developed in this paper without altering the latter conditions for use of DEA directly on observational data. Technical inefficiencies are identified with failures to achieve best possible output levels and/or usage of excessive amounts of inputs. Methods for identifying and correcting the magnitudes of these inefficiencies, as supplied in prior work, are illustrated. In the present paper, a new separate variable is introduced which makes it possible to determine whether operations were conducted in regions of increasing, constant or decreasing returns to scale in multiple input and multiple output situations. The results are discussed and related not only to classical single output economics but also to more modern versions of economics which are identified with "contestable market theories."
14,941 citations
Book•
16 Jan 1991TL;DR: The article presents a review of the book “Collaborating: Finding Common Ground for Multiparty Problems,” by Barbara Gray.
Abstract: The article presents a review of the book “Collaborating: Finding Common Ground for Multiparty Problems,” by Barbara Gray.
1,894 citations
Book•
19 May 2005
TL;DR: In this paper, the authors combine rigorous theory with practical examples to create a useful, practical, one-stop resource covering topics such as: the principles of the theory of collaborative advantage managing aims membership structures and dynamics issues of identity using the theory.
Abstract: Collaboration between organizations on different continents can raise issues of economic development, health, the environment, risk sharing, supply chain efficiency and human resource management. It is an activity that can touch upon almost every aspect of business and social life. In this notable text, the authors combine rigorous theory with practical examples to create a useful, practical, one-stop resource covering topics such as: the principles of the theory of collaborative advantage managing aims membership structures and dynamics issues of identity using the theory. The key features of the book include rich theory, drawn directly from practice, explained in simple language, and a coherently developed understanding of the challenges of collaboration, based on careful research. This significant text will be an invaluable reference for all students, academics and managers studying or working in collaboration.
1,309 citations
TL;DR: A systematic application procedure of the DEA methodology in its various stages is suggested, focused on the selection of 'decision making units' (DMUs) to enter the analysis as well as the choice and screening of factors.
Abstract: Data Envelopment Analysis (DEA) has become an accepted approach for assessing efficiency in a wide range of cases. The present paper suggests a systematic application procedure of the DEA methodology in its various stages. Attention is focused on the selection of ‘decision making units’ (DMUs) to enter the analysis as well as the choice and screening of factors. The application of several DEA models (in different versions and formulations) is demonstrated, in the process of determining relative efficiencies within the compared DMUs.
1,280 citations