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Features >> January 18

Development Experience of Manipur After 50 Years
N. Mohendro Singh

We may look upon "Development" as an act of evolution or a process, rather than an act of "Creation". The past performance provides foundation for present activities on which also the future largely depends. This functional link between past and present; and between present and future is crucial and obliges us to adopt a pragmatic approach. In fact the foundation of present performance owes to the past achievement. As such looking back in historical perspective is, it appears, a safeguard against any superficial view.

Regional Imbalance
The Industrial policy Resolution of 1958 commits itself to address the problem of regional imbalance in the country. The emergence of North-Eastern Council in 1972 could be a step towards this end. The recommendation of National Committee on the Development of Backward Areas. Planning Commission, 1981 made a specific reference to the chronic issue of "Fundamental Backwardness" of the region "Which can be countered only by making significant departure from National Strategy". (Report on the North-Eastern Region p-l). The same concern could be observed in the categorization of North-Eastern Region as "industrially backward" in the Report on Industrial Dispersal by the said Committee.

The Report on "Development Lags in the North-Eastern Region" (National Council of Applied Economic Council, 1988-sponsored by NEC) reiterates, "the region lags about 30 %. behind the rest of the country", (p-130). This means that well after 41 years of independence the "gap" was already 30 %. The requirement of Rs. 26,140 crores at 1986-87 prices to bridge the gap by the turn of the century was indicated. Of late the 9th Five Year of India has also been duly designed to tackle the age-old problem of regional imbalance. The ShukIa Commission, March 1997 identifies four deficits such as: -
* Basic needs deficit
* Infrastructure deficit- (irksome inter-state movement)
* Two-way deficit of understanding with the rest of the Country (p.3).

In other word, the development of North-Eastern region after 50 years of independence and hardly meet even 'basic needs', a grim remainder of slender survival, not to speak of higher tempo of living and development. The policy intentions of various committees have not been duly followed by any concrete plan of action. It remains largely a question of Plan for Plan implementation. The follow-up, it seems is weak. Any development strategy should take note of historical facts of acute deficiencies. Remember globalization begins at home. Globalisation cannot be imported.

Let us now examine: (a) Infrastructural Development, (b) Industrial performance, (c) Agricultural character, (d) Structural behavior, (e) Fiscal burden, (f) Poverty percentage in Manipur.

Infrastructure
The market importance of 'Standard Infrastructure' in the evolution of any economy is not new. The road density per 100 sq. km. of area is only 31.4 in Manipur - very low compared with the All India Average of 62,294.56 of Japan and 451.77 of Belgium. Power shortage remains unabated against the total demand of 90 MW State manages to get about 48 MW only. The per capita power consumption is only 140 KWH as against the All India Average of 330.6 KWH. Population per consumption is 33.1 as against 4.6 in Goa, 5.5 in Himachal Pradesh and all India Average of 13 (1990) (CMIE, 1994).

The availability of safe drinking water is equally discouraging. Out of which total rural population of 13.20 lakhs 36% have been covered by Rural Water Supply Scheme (1994). But 31.2 % are reported to be unaware of safe drinking water 25.6 % do not get drinking water. 41 % report availability of unsafe drinking water (A Report on Evaluation Study on Rural Water Supply Scheme in Manipur, Government of Manipur, 1989).

Although literacy percentage is 60% in 1991, the National Educational Survey identified as many a 528 school less villages. The Program for 'One Teacher One Room' begun in the beginning of the Eighth Plan. The quality concern remains largely unattended to. The level of infrastructure of Manipur, -social and economic- is found fairly low at 70.38 as against the all India Average of 100 while those of Punjab, Kerala and Goa are 219.19, 205.41 and 192.29 respectively. (Tenth Finance Commission, 1995- 2000). The regional disparity is obvious. In other words, the problems of 'market failure*, 'market distortion' and low institutional response* said to be tackled with the aid of efficient infrastructures remain largely unattended to in Manipur. In short, the development agents (Transport and Communication) are not sufficiently developed to play their meaningful roles with the result that the investment climate looks less attractive.

Industrial License (IL)
The Industrial license (IL) is powerful in the sense that the resources can be purposefully directed and direction of development rationalized. Compared with advanced states like Maharastra, Gujarat, Tamil Nadu and Punjab, the states in the North-Eastern Region could manage to get very few Industrial Licenses.

During 1980-1994, Maharashtra got 1318 ILs, -perhaps, the highest in the country followed by Gujarat with 845, Tamil Nadu with 786 and Punjab with 518. Assam got 67. But Manipur has to remain contended with only 3. Too low. Similarly, Meghalaya also got 3.

In the same fashion, Manipur could get distributive share of assets of Central Undertakings only of the order of Rs. 146 crores as against Rs.50, 483 of Maharashtra. Perhaps the justification for having 3 licenses issued in favor of Manipur could be low level of infrastructure and lack of conductive policy environment. But these problems could have been taken care of in the sixties and seventies. The whole process is marked by web of deprivation - one deprivation leading to and reinforcing the other.

In the absence of a sound policy planning, policy vision and policy coordination in the State, theIndustrial Undertakings under the Government suffer annual negative rate of growth 13.6% during 1990- 91 to 1995-96(RBI: Report on Currency and Finance, 1995-96 Vol-l). The negative Rate on Return (ROR) increased from 0.29% in 1988-89 to 34.38% in 1992- 93 with a total loss of Rs.323.77 lakhs, the whole trend looks discouraging with dismal future if all manifestations.

It is with this dismal picture being kept in mind that one must examine the effects of new economic policy of liberalization of 1991 on the economic of Manipur. The result at the moment is discouraging. While Maharashtra got 889 cases of Foreign Direct investment (FDI) with Rs. 14,744.93 crores and 542 of Foreign Technical Collaboration (FTC), from 1991 to 1997. Tamil Nadu got 580 cases of FDI and 274 of FTV. But Manipur and Mizoram have yet to open their accounts. Assam managed to get 4 cases of FDI with Rs. 1.50 crores. On the whole, the new economic policy, it appears, does not help the North-Eastern Region much.

Agriculture
The performance of Agriculture Sector in Manipur is not that bad. The yield per Hectare increases from 2153.38 kg. in 1988-89 to 2513.22 kgs in 1993-94. But the yield in the hill areas remains fairly low at 1670.88 kgs/ha in 1992-93. What is, perhaps, required is the institutional and technological strength. But the crop intensity remains more or less stagnant at 125 in 1992-97, i.e. during the period of the 8th Five-Year Plan. In other words, the multiple cropping is confined to 25% of the agricultural land only. Besides the State remains 'marginally deficit'-not being able to meet the annual requirement of 4 to 5 lakhs MTs.

Structural Stagnation
With high sartorial participation of agriculture, the structure of state economy remains more or less stagnant. The value of agriculture and allied activities accounts for 42.94% of the State Domestic Product of Manipur in 1993-94 while the secondary sector for only 8.29%. Much depends on service sector, which accounts for 48.77%, but the future of service depends largely upon the industrial development. The domination of primary sector remains more or less unchanged or marginally changed.

Fiscal Burden.
Because of weak economic foundation, the State economy cannot perform well except in primary sector whose surplus is limited and which remains beyond tax net. The own-tax revenue (Rs.l2.50crores) accounts for only 1.3% of the Net State. Domestic product and Non-tax revenue (Rs.21, 83 crores) for 2.27%.
Thus the State depends largely on the Loans and Advances from the Central Government which account for 34.6% of the total liability of Rs.845 crores (B.E.1998).

Poverty percentage
In spite of best possible attempt, the poverty percentage cannot be reduced. In Manipur in 1987-88, population below the poverty line was 5.29 lakhs accounting for 31.35% of the total population. Curiously, in 1993-94 the population increased to 6.80 lakhs accounting for 33.78%.

Concluding Remarks
Even after fifty years of Independence, the state economy of Manipur remains largely plagued with structural stagnation, deficiency in food production, industrial deceleration, heavy burden of debt, alarming unemployment and low tempo of living. Both Central and State initiatives, it appears are less realistic in the absence of Long Term Perspective Planning. The five-year and annual plans should be prepared within the guiding frameworks of the Long-Term Planning - to avoid the mess of immature future.

Now Manipur needs of a Plan of its own based essentially upon its own Strength. Weakness. Opportunities and Threats. Manipur does need: -
* its own Development Strategy.
* its own Institutional Development
* its own Human Resource Development.

Projectization, Professionalization and Participatory Principle should be the needs of the hour. Improve database, change the strategy, simply because, the structural imperatives have acquired a new dimension.