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Reverse Migration – Stress in the rural economy

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The CoVID19 pandemic has forced the shutdown of all economic activities all over the world. The pandemic has cost many lives and left lakhs of people affected. It also affected the global economy and left many people jobless. This situation has caused reverse migration in the domestic and global level. The Guest workers of India were returning to their home from foreign countries and urban cities of India where they had their livelihoods since the pandemic left them with no income.
Pic source: Economic Times

The situation of the guest workers is very worst since they don’t have much cash in their hands to survive the lockdown whether domestic or globally. The reason for their situation is ignorance of the govt in the first place. When there is a movement of labour from one place to another the two sides of the govt must have some data about the migration without affecting the liberty to free movement. The other important reasons were rumours, emotions of the labour and very importantly starving. The emotion and fear of an individual to reach their family comes when they hear rumours and there is no connectivity. Once the mobile phone balance gets empty there would have been no recharge shops opened and no cash with them even it is opened. That would have forced them to walk the long journey.

Pic Source: Economic Times

Why it’s the govt's mistake? The answer is a govt has handled it very efficiently. Kerala govt has named the migrant workers as guest workers and provided them with food and accommodation with direct cash for their essential needs like mobile recharge etc.[1] So the workers were aware of the situation and had connectivity to their families. This avoided them from reaching their home by walking. Rumours are also an important reason as the workers gathered in Maharashtra due to the rumour.[2]

The situation in rural areas

The reason for migration is the lack of development and ability to provide employment by the underdeveloped rural areas. So returning to the rural areas obviously lead to stress in the rural economy and unemployment. The only option in the rural areas is the farm work and it couldn’t include every individual in the area. Govt has announced additional ₹40,000 crores to the MGNREGS to provide income security to about 2 crore guest workers. Most of the guest workers belong to the states of Uttar Pradesh and Bihar, so the Union extended more assistance to those states compared to the southern states. But obviously, that wouldn’t be enough; it couldn’t solve the income and employment problem compared to the pre-pandemic situation.

There are no potential options to engage the guest workers in rural areas as they would return to the urban areas once the situation gets normal. Establishment of new businesses to engage them is also not possible since they lack capital and market. The reverse migration causes stress not only in the rural economy but also in society. The unemployment and lack of income force them to go for usury interests that would affect them badly. The situation leaves many of them starving. The landlords in the rural areas would exploit them for a low salary and lead them to the jobs that affect the dignity of the poor.

Does reverse migration cripple the rural economy?

The emotions, fear or affection on the family would have forced the guest labours to return to their hometown but poverty is more powerful. No emotions, fear, laws, pandemic, walls or fence can stop people from migrating to developed areas for better living, food and shelter from underdeveloped areas. Poverty is the driving force, only because of unemployment and lack of good salary guest labours have returned to Punjab fields last week[3] and guest labours of Odisha returned to TN[4] even during the pandemic. Once the transport is available they will rush back to work. Even if they stay for a short time they won’t be staying for a long time. Govt should somehow provide monetary assistance to the guest workers so that they don’t starve as the rural areas don’t have the potential to provide them with employment or food.

Increase in FDI, FPI will account for development in businesses and increase in employment but they employ skilled labours mostly. The guest workers belong to unskilled labour mostly working in construction sites, hotels, housekeeping etc. So, liquidity for those small businesses providing employment for guest workers should be ensured. A liberal policy in terms of taxes and speedy project clearances is needed. A responsible model for guest workers needs to be built. They should be provided with a good workplace, accommodation and fair remuneration.

References

  1. https://www.thehindu.com/news/national/kerala/guest-workers-want-to-stay-back-kerala-tells-sc/article31760947.ece
  2. https://www.hindustantimes.com/india-news/maharashtra-orders-probe-into-rumours-that-fuelled-migrants-rush-at-bandra/story-MZDkLeoiGJQrAB8delSOCK.html
  3. https://indianexpress.com/article/india/migrant-workers-return-to-punjabs-barnala-6446440/
  4. https://www.thehindu.com/news/national/other-states/coronavirus-lockdown-low-wages-force-fishermen-of-odishas-ganjam-to-return-to-chennai/article31761205.ece

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