A blueprint of prosperity

Being at the receiving end of nature’s bounty does not necessarily guarantee prosperity. Assam is a classic case which vindicates this theory. At the same time regions which are deficient in natural wealth may become an epitome of development. Assam is considered to be the gateway to the north eastern part of India. It is the most populous state in the north east. The terrain, dominated mainly by the Brahmaputra valley is an even plain though interspersed with some hilly districts. It is also directly connected by roadways and most importantly railways to the rest of mainland India. It is lavishly endowed with coal, petroleum & forest resources by Mother Nature. But still Assam’s per capita income remains below the national average. This juxtaposition of backwardness amidst plenty is regrettable.

According to the Assam Human Development Report, 2003 published by UNDP Assam’s per capita income was above national average in 1950. But in subsequent years in the post independence period it has always remained below the national average. The gulf has further widened in the post liberalization days. This basic economic indicator speaks volumes about the growing inequality between Assam and the rest of India. It gives us an opportunity to introspect into our past, our present and what we want from our future. The need of the hour is to reflect upon some curative measures to get some succor from this crisis situation. And these undoubtedly have to be economic, because lack of economic self sufficiency is at the very root of the problem.

Assam has traditionally been an agrarian economy. According to the Census 2001 about 53 per cent of the population is dependent on agriculture and allied activities. Therefore agriculture is a sector that demands immediate attention. It has the potential to generate employment for many. Crops which are high on commercial value should be encouraged. The agricultural training infrastructure of the state administration has an immense role to play in this venture. It should sensitize the youth about the more remunerative avenues available in agriculture. Adequate resources need to be allocated for building cold storage facilities throughout the state so that agricultural produce is not wasted. Agricultural credit should be made available at low interest rates. Allied sectors of agriculture like fisheries, sericulture should also be covered under this initiative. Initially there might be some reluctance etc. or apprehensions but as the merits become evident people will lose no time in jumping on to the bandwagon. Empowerment of the rural populace will also contain migration substantially and release the pressure on the urban centers.

At the same time there is a pressing need to cash in on the core competencies which include the indigenous industries like textiles and handicrafts. One way of doing that is to search for new markets where there is a demand for these products. The government should not be complacent at setting up emporiums in the state and other Indian cities and play a proactive role by putting in place an e-commerce portal which will showcase these goods and make it possible for anybody on the planet to order these goods. This will also be instrumental in determining where the markets exist and evolve the required course of action.

Industrial sector in the state has bore the brunt of insurgency. Private players are reluctant to set up industrial units in the state for fear of extortion by the militants. Therefore a sector which could have contributed immensely to the development of the state is in shambles. This vitiated atmosphere has to give away to a more conducive environment if investment in this sector has to follow. Therefore there is an urgent need to arrive at a breakthrough with these disenchanted outfits which is both “acceptable” and “sustainable” and will ensure peace and most importantly stability in this region. In such a dispensation the industrial sector will be invigorated. The location of the industrial units should be chosen so that they can have a multiplier effect on the economy of the adjoining areas. This has often been termed as the “spread effect” of industrialization.

The Panchayati Raj system has to deliver its goods. There is an increasing realization in the government about the efficacy of this institution. This has catapulted the allocation of funds from the central govt. But unfortunately in many cases this has not translated into commensurate development. This necessitates an effective monitoring mechanism which will supervise the flow of funds in a transparent manner and ensure that any financial irregularities do not go unnoticed. In many cases legitimate beneficiaries are deprived of their due share because they are at the mercy of the officials and the elected representatives for inclusion of their names in the list. But the newly introduced UIN (Unique Identification Number) under the aegis of the UIDAI (Unique Identification Authority of India) is expected to contain this problem.

Political will and readiness to work with optimism is what is needed at this juncture. But the resolution of some basic but grave problems as discussed above is fundamental to the viability of this model.

(Published in the Assam Tribune)