Economic Turnaround in Orissa?

seraph

Am interested to hear what people think about the assertions made in the linked article:

Orissa’s industrial plans are drawing activist flak. Activists are missing the point

"Policies like freight equalisation — which subsidised transport costs — neutralised these states’ natural advantage for attracting investment in those sectors, that is, steel, power, aluminium and the like. Instead, those investments were artificially incentivised to go to more politically convenient destinations, rather than to where economic logic dictated. These poor states were forcibly made to subsidise the industrialisation of those with more clout."

AND

"The rise of regional parties has led to the blossoming of the underlying federal character of our Constitution. And that has led to a far more level playing field for many states. For a decade now, the leaders and representatives of these states have been increasingly vocal and assertive about their rights. ...

Orissa took the lead in revamping its industrial policy and implemented the principle of value addition in minerals, that is, linking the grant of mining leases to downstream investments in the state for the processing of those minerals. This simple step has turned the tables completely. From being a non-starter in the investments race, it has surged to the country’s top spot in a few short years. Yes, this frantic scramble to invest in Orissa has been helped by buoyant international markets, but it has also been made possible by dramatic improvements in the state’s governance. No one today seriously questions the fact that Orissa has seen a transformation in its functioning, that its administration is much more transparent, and that a ‘case by case’ culture has given way to a ‘same rules for all’ approach."

vmehra24

Poor Indian States are those where magic and witchcraft are widely belived in and practised. This is the most basic reason for their backwardness.

seraph

Are you saying that this "turnaround" is thanks to witchcraft?

blackbird

It's an interesting article, and certainly Orissa is booming, in Bhubaneswar at least. However, I don't share the author's optimism that the displaced villagers will really be adequately compensated, because from what I've heard from people who live there, Orissa is still riddled with corruption.

Mostly though I would take issue with his view that the economic development will automatically improve the lives of the poor. In one village of settled Khutia I visited recently, the general feeling was that they are very happy with their life. Although, like just about everyone, they wouldn't say no to a little extra money, they don't want their way of life to change. I just hope their lands don't lie on any mineral reserves, or they will no doubt be forced to "progress" at some point.

yatrayatra

The economic turnaround is here to stay. Activists unhappy with government policies are here to stay. Choose which side of the bread you want to join.

Bihar is coming out with a policy on land acquisition for industrial projects - now that promises to be revolutionary stuff ; what with Nitish Kumar hell bent on replicating the best in Indian governance that Bihar saw in the good old days !

blackbird

It will take more than a new chief minister to sort Bihar out.

paharganj21

more so since the "good old days" of bihar go back some 2000 years, to king ashoka's time.

SANJAY_DEL

Governments in Orissa, Bihar and West Bengal have laid out plans for development in collaboration with big name corporations from abroad. But the local farmers are refusing to part with their land for these projects. Local youth are skeptical about their own prospects for employment in these high profile projects.

bijapuri

That article gave only one stat to support its assertion- a growth rate nearly equal the national rate. It also went on to attack a strawman- the idea that those opposed to unregulated growth are "partorial idealists." The real purpose of that article, it seems to me, is to smash the idea that corporstions should be regulated in any way.

Just two comments: Orissa's economy is based on extraction and heavy industries, which not only have a terrible record accross time and nations of being overall bad for the local population over the long run, but is out of step with the massive technology and intellectual engines driving the national economy.
In other words, when the ore gives out, the city slickers from outside will pack up and move to the next gold rush, and the state will be left with ruined land and no human resources.

But, hey, I'm no economist, I don't know sh!t . . .

__________________
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yatrayatra

Here is a recent interview for perusal http://www.thehindubusinessline.com/...0800440800.htm

My Government has so far received more than 100 proposals for setting up various industrial units in the State and 61 of them have been cleared. But we need to gear up our infrastructure, particularly power and communication. — Mr Nitish Kumar, Chief Minister of Bihar

The Bihar Chief Minister, Mr Nitish Kumar, completed one year in office recently — an achievement in itself considering the multitude of problems the State faces. While there has been no dramatic turnaround in Bihar's economy in past year, the Chief Minister is hopeful, not only about the State's future but that of the eastern region. In a recent interview to Business Line in his office in Patna, Mr Kumar discussed various issues confronting his government.