Realizing The Growth Potential of North-East
Realizing The Growth Potential of North-East
Realizing The Growth Potential of North-East
Amit Yadav
Kapil Khandelwal Priti Rani
pgp28263@iiml.ac.in
pgp28274@iiml.ac.in pgp28273@iiml.ac.in
8953470291
8009947511 7897773953
IIM Lucknow
IIM Lucknow IIM Lucknow
Supriya Sharan
pgp28264@iiml.ac.in
8127416275
IIM Lucknow
Problem Statement
Proposed solution
Challenges
Development Indicators
Road length, access to healthcare, and power consumption in the region are below the national average Generates less than 8 per cent of its 63,257 MW of hydroelectric pwer generation potential Per capita power consumption of power at 110 Kwh. is almost a fourth of the national average (411 Kwh.) Process of Development Top-down development planning strategy has not involved people in designing and implementing the strategy Relationship between public spending and service delivery outcomes has been tenuous. Lack of peoples involvement has robbed the system of a sense of belonging and led to inefficient and wasteful resource allocation Lack of social accountability Weak and unresponsive institutions of governance and market
Economic Factors
The standard of living of the people in the region, as measured by per capita Gross State Domestic Product (GSDP), has lagged significantly behind the rest of the country. At Rs. 18,027 in 2004-05, GSDP was less than the all-State average of Rs. 25,968 by 31 per cent
Problem Statement
Proposed solution
Challenges
8-Fold Solution
Structural Transformation Harnessing Resources
Building capacity in people and institutions Self-governance
Poverty Eradication
Poverty Eradication
Problem Statement
Proposed solution
Challenges
Self-governance
Devolution of power to villages for participatory governance and economic progress Panchayati Raj institutions need to be strengthened Active participation of people in the political processes and in grassroots planning Security of life and property Village development councils to undertake grassroots planning
Problem Statement
Proposed solution
Challenges
4
Harnessing Resources
Participatory development in agriculture - adopt a different approach in hills and plains Progression from settled cultivation through proper extension services Enhance land productivity by increasing crop intensity- better use of water resource Manufacturing sector based on these resources to create productive employment opportunities Comparative advantage for private sector participation in manufacturing activity - tap mineral resources and hydroelectric power potential
5
Building capacity in people and institutions
Human Development
Raise the quality of and access to health and education Development strategy based on the resources of the region - enhancement of the skill levels
Institutional Development
Create district planning agencies and developing capacity in them to coordinate d implement plans right from the village level Government intervention is necessary to nurse market institutions Promotion of markets and institutions to disseminate information on prices and products is extremely important
Problem Statement
Proposed solution
Challenges
Opening up trade routes will expand economic opportunities for the region and accelerate its growth process Region can regain its place as a centre of flourishing trade with East and Southeast Asia
8 Effective Governance
Peace and harmony, and absence of insurgency are keys to progress Remove Insurgency - Insurgency has taken a heavy toll on economic progress
Problem Statement
Proposed solution
Challenges
Implementation
Problem Statement
Proposed solution
Challenges
Implementation
Development Strategy
Empowering People
Empowerment of people by maximising self-governance and participatory development through grass-roots planning Creation of development opportunities for a majority of the people living in villages Rural development initiatives Developing sectors with comparative advantage so as to utilise the resources of the region productively for the benefit and welfare of the people
Investment in rural areas, in rural infrastructure and agriculture Increased credit availability, particularly to farmers and others, and offering them remunerative prices for their crops Increased rural employment, including the provision of a unique social safety net in the shape of the National Rural Employment Guarantee Programme; Increased public spending on education and health care
Problem Statement
Proposed solution
Challenges
Developing Sectors Focus on manufacturing services based on the regions resource endowments Cold storages and processing support for horticultural crops Expand food-processing, handlooms and handicrafts Expansion of sericulture Tourism has high potential for generating income and employment. Financial sector including banking, insurance, the information technology Creation of education and training facilities for the youth of the region in Information Technology (IT)
Capacity Building
Manufacturing Sector
Provide access and incentives for the education of women and tribal populations Expanding the educational infrastructure, particularly in technical areas Human development such as raising health status and nutrition is equally important for capacity development
Create institutions of self-governance right from the village level and activating them to ensure maximum participation Planning will require capacity building at all levels beginning with villages and municipalities, at the block, district and state
Service Sector
Problem Statement
Proposed solution
Challenges
Disparities
Vast disparities among geographies and various tribes in terms of needs and priorities Population comprises of more than 550 tribes including scheduled tribes and sub-tribes ; each with its own language and culture Limited availability of arable land with 52 % forest cover used for providing global public goods In states like Mizoram and Tripura two third area is hilly terrain and hence difficulty to use it for agriculture Harnessing resources may lead to environmental problems and projects may not get environmental clearance Facilitating trade with neighboring countries may cause security issue Insurgency problem in several parts of North East
Land Issues
Disparities Land Issues Environmental Clearances
Environmental Clearances
3 4
Financial Requirements
Security Concerns
Security Concerns
Thank You
References
http://www.mdoner.gov.in/sites/default/files/silo2_content/ner_vision/Vision_2020.pdf http://mdoner.gov.in/sites/default/files/North%20East%20Report%20-%20Index%202.pdf http://www.pwc.in/en_IN/in/assets/pdfs/publications/2013/north-east_summit-2013.pdf