WB report blames geographical isolation R Dutta Choudhury GUWAHATI, July 19 – Insurgency and geographical isolation from the rest of India are two of the major causes for underdevelopment of the North East region of India despite the fact that the region has abundance of natural resources, said a report of the World Bank. The report of the World Bank said that insurgency is responsible for low level of business confidence and created a difficult investment climate as according to a report, about 70 militant groups are active in the region.
The report said that high degree of isolation caused by its separation from the rest of the country, severe limitations of cross border trade, poor internal infrastructure, etc are some of the other reasons for underdevelopment of the North East, which covers around eight percent of India’s total geographical area and accounts for around four percent of the country’s population.
The economy of the North east is still predominantly agrarian and more than 80 percent of the people depend on agriculture, which is much higher than the national average.
The report revealed that the region is known for its rich and abundance of natural resources and is a part of the Indo-Burma hotspot, which ranks 6th among the 25 biodiversity hotspots of the world. The hydropower potential of the region is estimated to the tune of 60,000 MW and the region is also known for rich cultural heritage and ethnic diversity. The human development indicators of the region are also favourable as it has relatively well educated population and the female literacy rate is above the national average. The infant mortality rates in the North East states except Assam is well below the national average.
Unfortunately, the region has not been able to build on its strengths and the per capita income is much lower than the national average and 35 percent of the population of the region live below the poverty line compared to the national average of 26 percent. With growth below the national average and no apparent signs of picking up, the region and its people seem to be increasingly excluded from India’s current economic success, the report said.
The World Bank report said that in order to deal with the constrains faced by the region, the Government of India has been providing support for infrastructure development as well as incentives for private sector investment. As per a special development package, all the Ministries earmark 10 percent of its funds for the region, while, all the states of the region have been given the status of special category states and receive assistance from the Government of India as 90 percent grant. The Government also tried to strengthen institutional framework for development of the region with the creation of the Department for Development of the North Eastern Region (DONER), while, the role and responsibilities of the North Eastern Council (NEC) have been upgraded.
Despite the efforts, the NE states continue to rank at the bottom of the state-wide rankings as far as infrastructure development is concerned and the fiscal self reliance of the states is below the national average. Widespread corruption, as reported frequently in the media, is believed to be one of the reasons for the present state of affairs, said the World Bank report.
