Why Policy Matters?

The East of India (Bihar, Chhattisgarh, Jharkhand, Odisha, and West Bengal) which was the growth engine on the eve of independence has become a classical example of the ‘Resource Curse’ owing to one major policy blow called the Freight Equalization Policy (1952–1993) that neither made economic sense nor geographical rationality. And then constant refugees and illegal migrant influx worsened the condition having bearing on the socio-economic fabric that still impacts the growth story.

Everything that followed as the consequences of such decisions and events created the environment for the ‘Resource Rich’ region of the nation to become the ‘Labour Hub’ and the political class rather than correcting the course ensured enabling the status quo by running trains for the movement of ‘cheap’ workers and labourers all across India as an easier solution to fix the problem of economic development and lack of employment opportunities. Hope is a good thing but can’t be the policy which seems to be the case for the region right now.

References

Manufacturing Sector in West Bengal [https://mospi.gov.in/sites/default/files/reports_and_publication/NSS_Journals/Manu_Sector_Bengal_Advan_corr_sep12.pdf]

Manufacturing Underdevelopment: India’s Freight Equalization Scheme, and the Long-run Effects of Distortions on the Geography of Production [http://barrett.dyson.cornell.edu/NEUDC/paper_316.pdf]

About the Author

Adv. Abhishek Kumar

Founder and Curator, The Sangyan — Law. Environment. Disability.