Tuesday, April 25, 2006

Policiy of Subsidy, Corruption and Development (or the lack of it)

Now for some serious conversation. My current project on the efficacy of the 6th Schedule of the Indian constitution has enlightened me on several aspects of the misuse of this provision. For starters, what really strikes me is the very blatant diversion of funds that take place. To put it plainly, its nothing short of a loot. An astronomical amount of money is being pumped into this region in the name of Counter-Insurgency measures( most of which is unaccounted for) and Development. But the reality is that this money seldom percolates down to the grassroots. So, inevitably there is a huge market for this floating money ---- greasing several palms for work to get done, as corruption has become institutionalized in these parts....bottlenecks that one has to encounter everyday.

Also in opposition to the Development that should have taken place at the grassroots, what one gets to see is the manifestation of easy money in the form of a sprawling urban concrete jungle...all the trappings of easy and unaccountable money. It is rather well known that apart from the insurgents operating in the region, there is an emergent class of noveau riche- the surrendered insurgents. They are no less than the mafia operating in other parts of the country, notably Mumbai. It is through sheer gun and muscle power that they boss around town....controlling several markets in the city and beyond. They invest heavily in some of the most lucrative businesses in the region, namely coal, tea and timber and ofcourse the latest trend is to invest heavily in real estate.

The skyline of Guwahati has undergone a massive transformation in the last couple of years....there are malls, restaurants and lounge bars (thats the latest to hit the city). Fine, people can argue that its all for the better, people here have an option to go out and have fun...but the moot question really is, what is the source of these huge investments? G is fast emerging as a fledgling metropolis. So there are hundreds of high rise apartment blocks dotting the landscape without sparing a thought to the receding water table and the fact that G falls within the Seismic Zone and is prone to earthquakes....caution thrown to the wind...all that one gets to see are towering concrete jungles amidst the green spaces. The rampant corruption that one witnesses everyday is claustrophobic.

Coming back to the problem of the 6th Schedule. One thing i have realized is that the policy of allocating out subsidies is just killing the entire process. The need of the hour is the formulation of policies that can deliver goods rather than placating public sentiments by giving them more subsidies. Every now and then huge monetary packages are announced by the Centre. But is there any mechanism in place which carries out an evaluation of the utilization of the funds ? That is the most important thing, you can't just give and give ...thinking that that will solve the problem. That surely won't. What is required is some transparency in not just the devolution of finances but also the implementation of the policies and monitoring of the supposed utilization.

Whenever i think of these issues , I am left with more questions than answers . Working at the grassroots has made me realize that for all the cosmetic changes that may have taken place , there are huge gaping holes that need to be filled below, before any genuine Development can emerge!!

****** Since i live in Guwahati and since Guwahati is the hub of the Northeast, my discussion is confined to this city and based on my field experiences.

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