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(Bihar Times): For sometime now, I had been going through the distribution of central academic and research institutions and the emerging pattern in setting up of upcoming institutions. It has got interesting story to tell on the mindset of the federal policymakers. Recently, a slew of institutions related to academics and research has been announced. Going by the public pronouncements one would have expected that most of these institutions would be going to the states hitherto deprived of such institutions. Federal government, in keeping with its own findings as stated on various occasions and also reproduced by federal authorities in various forums, should have been busy setting up such institutes in places like Bihar, Eastern UP, Jharkhand and Chhatishgarh. Unfortunately that is not the case. Even now West Bengal gets most of the institutions meant for eastern regions, even when it is much better than all its surrounding states. Be it IIT, IIM, IIT equivalent IISET (Shibpur Engineering College), IISER or even the just announced one "Abdul Gani Khan Chaudhari Central Engineering Institute at Malda, West Bengal has got them all. Is n't this kind of policy going to fuel out migration from Bihar even further?
It is sad that policy frameworks in regard to enduring economic development invariably overlook the interest of eastern states, especially, Bihar. It is difficult to say whether the same is on account of ineptitude of political leadership of these states, or is some systemic skew which has got built in over a prolonged period. Situation is so grave now that the prime cause in form of such culprit policies, by virtue of being in operation for over a prolonged period is now quite difficult to segregate from the symptoms. It is still more difficult to understand how these aberrations were allowed to take shape in the first place. Perhaps, some indication of the same can be found even in the recent policies and programs of central dispensation.
Let us take some of the proposed and ongoing policies to find out how skillfully they are crafted to marginalize the underdeveloped regions of the country even further. One of the critical policies, which is being pushed through at this hour and may have significant bearing on the eastern states, is a plan for "Western Industrial Corridor (WIC)". Those who have architected this will definitely argue in support of this visionary initiative. Nothing wrong with that. However, it is difficult to overlook the fact that these very people never thought of exploring something like this for eastern provinces in question. One such option could have been to create an "Eastern Economic Corridor (EEC)" originating from Paradip and moving up to Kathmandu, ultimately linking up with the Tibet Highways & Proposed Tibet Kathmandu railway. It is obvious that nobody wants to waste time thinking of such ideas for eastern region. Does not matter even when state plan of Bihar is direct responsibility of Dy Chairman of Planning Commission. on paper. I'm sure that EEC would have been as much economically attractive for investing this country's precious resources. I say this because it has three fold potential of giving rise to unprecedented growth- in form of industrial activity, in international trade & commerce as also in terms of tourism. How such a common place thought can escape mind of all policy makers?
Next, let us take up the recently concluded "Farm Loan Waiver" scheme. Why the scheme was implemented in such a way that the most underdeveloped state in the country Bihar got benefited only by about Rs 2450 crores as against Rs 7729 Crores in case of Maharashtra (source: state advertisement released to media)? Other major beneficiaries of this scheme were all better of states like Andhra Pradesh and the other developed states from South India. Also scarcely discussed is the fact that these very states were given a Rs 16000 crore special package for their 31 agrarian crisis hit districts. Certainly, there could have been other ways of implementing these schemes without hurting the interest of those states which deserved better attention. For example, central government could have allocated the total loan waiver amount of Rs 70,000 crores between various states based on the 1971 population figures or as per 12th finance commission which recommended devolution formula for central revenues. In case of any shortfall, the states should have been asked to make up for the shortfall from their own exchequer. Does not the loan waiver in its present form hoodwink the recommendations of 12th finance commission, a supreme constitutional authority in this matter?
To be concluded ...
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*A Financial Sector Consultant and Research Analyst
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