The process of formulating a Vision 2030 document for our state was launched on 5th June. The document which is expected to be ready by end July of this year is expected to chart the future course of our state in the next 14 years. The document will have a 3-year, 7-year and a 15-year focus and would hence be a departure from the traditional annual plans that characterised planning of yore.
In the context of the signing of the Framework Agreement between Government of India and NSCN(I-M) in August 2015, the Vision 2030 document will have an added importance as it will provide a skeletal framework upon which the economic architecture of the state can be built on. Peace is a sine qua non for development and two are strongly inter-dependent.
Economic Growth and Vision 2030
It is the view of this columnist that to sustain economic development there has to be increased economic growth in the state. Without an increase in economic activity that can lead to increased growth the improvements in development outcomes in the form of improved literacy, health and infrastructural changes may not be sustainable.
The main challenge of improving development outcomes in a state like ours is to kick start economic growth. Economic growth is the lubricant that can smooth the path of economic progress and development. It is growth that has the potential of creating opportunities and jobs to our young population and at the same time provide enough resources to the government. If growth is employment-intensive then increased growth will result in more jobs. In a state like ours where the share of the young population is quite high, increasing employment opportunities should be a main focus. Our state has more 72,000 youngsters who are looking for jobs according to the Live Employment Register. Increased jobs will improve productive potential of the economy and also reduce the drain of talent that is evident in the state.
Assuming that tax-buoyancy remains constant, increased economic growth will lead to increased tax- revenues. The latter is very important because as things stand the share of government in the economy is very high. If sustainable growth and with it equitable development has to come about there has to be an increase in own tax-revenues in our state. An increase of internal revenue collection from the present `777 crores in 2016-17(BE), accounting for only 5.5 % of the total revenue receipts of the state is imperative if the development efforts of our state are to be put on a firm pedestal. A bulk of the total revenue receipts of our state still comes in the form of Grants-in-Aid from the central government with the latter accounting for more than 65% of the total revenue receipts of the state in 2015-16(BE). If these percentages can be increased to sustainable levels then the development process of our state can be put on track. The signing of the Framework Agreement has brought us to a critical juncture. It opens up the possibility to tap the goodwill that would be generated as a result of the signing of any future accord. The latter can have positive multiplier effects on the state’s economy. The increased goodwill can also open up increased revenue potential in the economy as willingness to pay tax could increase in the medium to long-term.
Soft Skills and Vision 2030
With the mountainous terrain and the small geographical size of the state any improvement in growth that is predicated on industrial and manufacturing growth of the traditional pre-industrialisation variety may not be effective. The cost of transporting raw-materials and sourcing of a vibrant market for the finished products may result in the vision targets getting awry. As a state our strengths lie in our people and the sense of community. Growth efforts should try to bolster this feeling of community by working on the soft power in our state. One area where we can focus is on higher education. As a state we lose a lot of revenue because we lose a substantial number of students to other states for higher education. Students prefer to study in other states like Maharashtra, Delhi, Uttarakahand, Assam, Meghalaya or Mizoram to studying in Nagaland. This is both a brain drain and a rupee drain.
Government has tried to reduce this drain by setting up of professional colleges- engineering and medical colleges, polytechnics, nursing schoolsetc have been undertaken. However, another important area that we have not focused on is basic science and mathematics education. We have a dearth of good institutions that impart quality science and maths education.
To actualise such a policy we need to start from the high school level improving the facilities for science education in all the government higher secondary schools in the state. Our aim should be to promote the higher secondary schools in our districts as centres of excellence, focussing on providing infrastructure- both human and physical. In a world that has been connected through the internet we should aggressively explore the possibilities of tele-education/education over the internet etc. Partnerships with effective private schools in the districts to pool the teaching potential should also be explored. If we focus on the schooling in the initial 3-5 year period then our focus can shift to professional education institutions and high quality degree colleges in the 5-10 year term.
One key element to ensure that such a vision succeeds is to improve the efficiency and output of the government teaching establishment. The government spends more than 68% of its non-Plan expenditure on salaries and pensions. With such a massive presence of government in the economy any plan that side-steps improving efficiency of this sector will have wide-spread ramifications on the whole state economy. One of the key aspects of improving the performance of the government servants is to increase the sense of ownership that the employees have. If this increases then there will be an automatic improvement in government sector’s performance. Another option that can be explored is to look at engaging pensioned teachers at no extra cost to the government for activities like census, elections etc thereby reducing the workload on the current teaching establishment.
Growth and Governance as foci
For the success of Vision 2030 we should have a plan to improve governance across sectors. In the paragraph above, I focused on the higher education sector. A similar analysis could be undertaken for any sector. Government is a major player in the state’s economy, hence there should be a focus on governance and incentivising good performance of government servants.
(The author is an IAS Officer of Nagaland cadre and can be reached at vyasan_r@yahoo.com)
