Nagaland in Act East Policy

Charles Chasie  

Background

The tearing down of the Berlin Wall signalled the end of the Cold War world and the collapse of the former USSR drove the final nail in it’s coffin. Or so, it was thought. In any case, it gave rise to euphoria in the capitalist world and globalisation began to spread its wings through multi-national companies and international financial institutions.  

India could not remain unaffected. The economic sanctions by the West and its allies in the aftermath of India’s nuclear tests made it realize the need to look elsewhere for its economic growth and survival. It had witnessed the Tiger Economies of South East Asian countries seemingly enjoying disproportionate economic growth compared to their sizes, the rapid rise in the populations and economies of China and India and their jostling for political and economic leadership of Asia. And then there was Japan, the second biggest state economy. Moreover, there were traditional ties with South East Asia and the geographical contiguity was tempting. All these made India move closer to ASEAN and the East.  

Look/Act East Policy

It was in the coming together of various above events and India’s own circumstances at the time that moved India to launch its Look East Policy in 1992. Once this was decided, it was natural to talk about the resource-rich North East as the launching pad of this policy given its geographical contiguity to East and South East Asia. It became fashionable for people to say, “Look East through North East”! Sadly, apart from talk nothing much happened and the opening up of new markets in ASEAN countries only benefitted those on the mainland, particularly in South India, as admitted by no less than Mani Shankar Aiyar during one of his visits to Nagaland as union minister. People started asking if the NE was just going to be a bridge or corridor for the mainland instead of the launch-pad that was touted about.  

NE dynamics – common destiny with different needs!

NE was a thriving centre of world trade before and at the time of Indian Independence. The per capita income of the region was higher than the rest of India it represented a main foreign exchange earner. “Indian Independence” changed all that! The North East became landlocked, its natural outlets cut off by international boundaries, with only a very narrow strip of land connecting the mainland. The region became neglected. `Insurgencies’ took over the region.  

Because the states in the North East are all so small that often by necessity the region is clubbed together. But in so doing, the dynamics of the NE, and the genius of the peoples who make up the region, are frequently ignored. True, the NE must also find its common destiny. But the unique ethnic “individualities” of the communities of the region must not be sacrificed in the name of an unclear whole.  

What does the Policy mean for NE?

More than 20 years after pronouncing the Look East Policy it has now become Act East Policy once the BJP came into power. Obviously, the intention is to show that the BJP mean business. But still, precious little have happened to give the people confidence that things will happen. For instance, even the study of the infrastructural needs of the region has not been done. Only now the study process is being launched by inviting bids for a study of the infrastructural needs of the region. But there is no guarantee that the best proposal would be accepted. Indeed, there is already indication that quality may be sacrificed on the altar of perceived cost.

  On the other hand, there are doubts due to continuing internal contradictions and confusions.  

(i) Although everybody seems to understand the Look/Act East Policy, the Policy itself still does not seem to be available on paper. This makes it inexact and open to confusion and, therefore, difficult to act. The flip-flops of the Government in the field of foreign policy only make things worse.  

(ii) Undemocratic legislations still on the statute books do not inspire confidence, domestic and foreign. For instance, the whole of the North East has been a disturbed area with legislations like AFSPA in operation. Who will want to come and operate in an area declared “disturbed” by GoI?  

(iii) What development models will be pursued in/for NE? Till now the Gangetic plains model of development has done havoc to the region simply because it is not suited to NE. Also, the conditions prevailing in the plains and hills of NE are different requiring different strategies! Till now, there is no adequate visioning for the region. NE Vision 2020 is not a proper vision at all.  

(iv) The North East Industrial and Investment Promotion Policy (NEIIPP), 2007, which gave a package of fiscal incentives for industrial growth in the North East has been withdrawn. Federation of Industries and Commerce of North East Region (FINER) has filed a case for its retention in Gauhati High Court and it may be taken to the Supreme Court.  

(v) The Special Category status of the Northeastern States which gave special favourable financing to the states in the region has been withdrawn and not re-instated.  

(vi) The budget allocations for North Eastern Council (NEC) and Department of North Eastern Region (DoNER) have either remained stagnant or actually decreased over the years (media reports of Lok Sabha discussions in April and May, 2016).  

Under these circumstances sceptics think that the Look/Act East Policy is only so much hype and that the North East far from becoming the launch-pad may actually be made the foot mat of the Policy and the region may act only as a corridor for the mainland particularly as two and half decades later no significant things have happened in the NE itself.  

Nagaland : Special Case

Nagaland became a State in 1963 as a consequence of a Political Agreement. The State was placed under the External Affairs Ministry. By statute law, land and its resources were guaranteed as belonging to the people and customary socio-cultural and religious practices took precedence over Common Law enacted by Parliament. Thus, legislative acts of Parliament on these matters are not to take effect unless they are first ratified by the Nagaland Legislative Assembly.  

Due to violent conflicts, Nagaland missed out on the first three Five-Year Plans and deprived of the benefits of development and infrastructure building through focused planning. What was worse was that due to continuous armed conflict, even after Statehood, much of the resources of the State had to be spent on security related matters, leaving little to spend on development. Such development deficits had to be carried forward all the time, accumulating and increasing the burden of backlogs further. The trouble with such a situation is that whenever there was an opportunity for development, these were speeded up without adequate planning. This further made things worse in some cases because they led to lopsided development! As a result of all these, the infrastructure gap for Nagaland had risen to Rs 11,000 Crores by 1996 according to the R P Shukla Commission. This can only have risen higher by now!  

Development & Governance : Naga Style

Despite initial difficulties, Nagaland has achieved commendable progress on several fronts and have even made unique contributions. Two easy examples are : (i) The Village Development Board (VDB). This governance system based on Naga traditions inspired the Indian Panchayati Raj system of de-centralised governance which has now been taken to every nook and corner of the country. It has become a much loved and revered national institution of development and governance.  

(ii) The Nagaland Communitization of Public Institutions and Services Act, 2002, became a major landmark in the history of innovative development concepts. Built on the foundations of Naga traditional social practices, the programme put Nagaland on the world map by getting the UN Award for Public Service from Asia and the Pacific at New York in 2008  

The VDB and Communitization have shown that when a system is carefully built on the foundations of the traditions of the people they succeeded beyond expectations and made immense universal contributions both at home and abroad.  

Now, we have another award to be proud of : “Lifetime Achievement Award in Transformation” given to Nagaland Chief Minister at Bali on April 23, 2016, on the occasion of the 6th Global Leadership Award by the American Leadership Development Association. An “opposition-less” government in a democratic set-up may sound like a contradiction in terms but the unity displayed by Naga leaders was recognized because no one else in the world had achieved this before. Here the leaders of a people had cast aside their differences and come together to solve the problem of their people that has defied solution for so many decades. The Nagas may be small but what they were doing could not be ignored. Their effort had to be recognized because if all leaders in the world did the same, world problems could be reduced to solvable sizes! This writer had already pointed out the Opposition-less Government as a unique achievement in his article titled “Unnoticed achievements in Nagaland” and published in Nagaland Post and Morung Express on 13/7/2015.

Inherent advantages/strengths

The Naga people should consider themselves a very fortunate people in so many ways although the challenges they face are also huge. Let us consider some of these inherent and historical advantages, partly due to their location as well.

1. Our background is full of assurance of our people’s resilience and ability to survive in any circumstances. North East and Nagaland were part of the Alternative Silk Route to China and the region was already a world centre of trade by around 2nd century AD.
2. The smallness of the size of Nagaland and its population has, far from being a hindrance, often proved to be advantageous. For instance, apart from the fact that it was built on Naga traditional social foundations, the application of the Communitization Programme was possible because of the smallness of the size of Nagaland State. In the process, Nagaland became a world `laboratory’ on Governance! Similarly, the Village Development Board (VDB) which model was picked up and applied all over India as Panchayati Raj!
3. Our social capital and community spirit, with well developed institutions at village level, are such great assets. If every Naga tribe decided to give its best to make the most contribution for the good of all Nagas “tribalism” would become a positive asset! Further, there is widespread use of English which, as an international language, is important for trade and commerce. Contiguity to South East Asia, and Mongoloid origins, can only be added bonuses.
4. Forest and land based products, both natural and produced by human hands, are the greatest strengths of Nagaland. Every development effort is based on forests, agriculture, horticulture or minerals and oil. Nagaland has a wealth of biodiversity and bio resources. For instance, it is estimated that Nagaland possesses 81,000 species of fauna and 47,000 species of flora (Nagaland State Human Development Report, 2004). And in many instances, our people’s knowledge of conservation and agriculture are far superior to those of other peoples. And despite the hilly terrain, various altitudes and the State’s remote location, good climatic conditions prevail for diversified cropping, using traditional methods of agriculture which are organic by default.
5. North East India, along with South East Asia, are said to be the original home of the world’s flowering plants. (Ref. “Flowering Plants : Origin and Dispersal” by Armen Takhtajan, Translated by C. Jeffrey, Bishen Singh Mahendra Pal Singh and Otto Koeltz Science Publishers, 1981). Nagaland, as part of NE inherits this rich heritage. Without too much study, we already have the tallest Rice plant, the tallest Rhododendron and the hottest chilli. Rice and tea also came out of this region and Nagaland has as good a claim as anyone in the region. Sadly, selective mono-culturistic development, as prioritized by the Government, has been leading to loss of so many species.

  Visioning Nagaland

In 2001-2002 an attempt at visioning Nagaland was made under the theme “Enduring Peace and Sustainable Prosperity”. It was a first attempt to rise above the general atmosphere of gloom and doom that has pervaded Naga society as a regular feature and imagining a future for our people. It was a commendable effort. But habits die hard and the implementing machinery slowly slid back to the old ways of seeing and doing things! Now the Chief Minister wants to prepare a new vision for Nagaland. He deserves support. However, we must be wary about depending too much on the North East Vision 2020 as it is an inadequate vision for the region and even more so for its individual parts.  

Nagaland ought to prepare its own independent vision document based on its needs. The period too should be of longer duration and with a more distant horizon because 2020 is just round the corner. Further, Nagaland’s needs are different. In the proposal for study of infrastructural needs for North East under the Techno-Economic Development Fund (TEDF), Nagaland took first initiative and the other States followed. Perhaps, Nagaland ought to take first initiative again and carry out its own individual vision, say, “Vision 2030”? Why not? Getting clubbed together with other States in NE is the easier route but not necessarily the best or ideal solution. This is because the needs of the hills and plains are different, and each state has its own unique strengths, challenges and needs.  

Approach to Visioning

Despite some scepticism with which many in the region are bound to hold the Act East Policy because of the inaction till now, there is no doubt that we should try and make the most of whatever opportunity presents itself to us through this Policy.  

It is also clear that trade with foreign countries or no, Nagaland must do what is best for the Naga people. And as shown by above examples, initiatives that grew out of Naga values and societal lives do work and find relevance nationally and internationally. So, we ought to seek the core solutions from within our society even in the area of trade and commerce. Our illiterate forefathers could carry on trade with people from far off places. Now, with education and exposure, present generations ought to be able to do much better!  

Trade and commerce is primarily about buying and selling. So, the first question to ask is, “What have we got to sell?” If we do not have things to sell, we are only retailers and middlemen keeping shop for others and providing them service. We become full participants in trade and commerce when we also have our own things to sell. Here we must even differentiate between whether a product is indigenous or not. Some time back Citronella was cultivated as a cash crop. Likewise, we are still cultivating coffee, rubber, coconut etc. But these are crops are indigenous to other people and they have a competitive edge over us.  

Fortunately, we do have a lot of crops that are indigenous to Nagaland. We must build our USPs with products that are indigenous and where we have a decidedly competitive edge over others, particularly given our remoteness and lack of proper infrastructure. Nagaland is a rich source of all kinds of foods, many of them still in the wild. Just look at our wild berries, fruits, vegetables, wild flowers and medicinal and herbal plants. Some of these products can be “domesticated” and cultivated. How can others compete with us on products only we have?! They must become our foundations and build our name.   Basically, we must build on the inherent strengths that we have. So, the basic and logical approach to visioning ought to be on the following lines:-

1. Identify the indigenous products for sale (including industries to build on).
2. Build infrastructure according to needs identified as per (i) above. Infrastructure must follow and fulfil the needs of the people and State. We have a Special Economic Zone (SEZ) built at great cost in a remote area which is hardly used. Such practise must stop.

  Some Challenges/Needs We must remember that Nagaland is in a remote, isolated and neglected region with very poor infrastructure, assailed with disturbances over s very long period and with little political clout in Delhi. In order to take advantage of the Act East Policy, Nagaland needs to intelligently build on its inherent strengths and work out the challenges facing it. Some of them are listed below.

1. The first challenge is to overcome the general tribal mentality of subsistence economic production and transform into a market oriented one. There is as yet little concept of market forces and much learning is required. A few Border Haats and Land Customs Stations (LCS), where the trade is largely on barter, will not bring prosperity.
2. Nagaland is a net importer of goods and services. Most businessmen in Nagaland are basically retailers. Even in food, Nagaland is not self-sufficient. This picture has to be overturned and Nagaland become a net exporter. Nagaland has good potential in agriculture and horticulture fields. If volume is an issue, it can be overcome through cooperative farming and/or zoning for production according to suitability of soil, climate, knowledge and practice etc. But usually production is not a problem; the failure comes at the post-harvesting stage.
3. The State is characterized by high artificial inflation caused by absence of infrastructure, corruption at various levels, illegal taxes, absence of coordinated official planning and concerted action, general indifferent attitude of the people etc. What is often true is that the same goods brought from mainland India are sold cheaper in Imphal than in Kohima!
4. A key issue that needs to be addressed is the non-availability of land mainly due to the tiny size of the State and the landownership pattern where the people own the land as opposed to the Government. This is where the State Government may have to plan more on areas which do not heavily depend on land. Perhaps, Nagaland could strategize and make the international trade centres on the Myanmarese border as part of the State’s supply centres, bringing benefits to Nagas across the border as well?
5. Trained and skilled man-power desperately required. The shortfall in skilled man-power in the region as a whole is very high and Nagaland may be near or at the top end.
6. Perhaps, an adjunct of 3 above, but specialized personnel in all areas of marketing – from production to sales and after sales – will be required for the State to have a well-oiled commerce machine. Market infrastructure and marketing network, including effective and latest information, are vital urgent needs. Clear strategies required to produce and market goods while retaining and protecting the “niche” advantages of the State.
7. Prioritized infrastructure requirements. For instance, a few arterial all weather roads, world class telephony and internet services, adequate power to provide urban amenities to rural areas, overall good health facilities etc. Social infrastructures must not be neglected. R & D and IPR are ignored and neglected areas but vital in the long run.
8. Security and safety must be made a priority issue. Law and order machinery must be fine-tuned. Legislations too, including those that will arrest sub-standard products and unethical practices. After decades of conflict the biggest question now is, “How to prepare Naga society for life in peace?!” Overcoming impacts of prolonged violence and conflict and rebuilding and re-construction particularly in the area of societal institutions are imperative.
9. Traditional knowledge systems of our tribes are very rich, many of them with universal applications. We must create a system of recognizing and rewarding knowledge keepers and idea givers in society. This will help Naga society to remain vibrant and relevant all the time.
10. Comprehensive and long term strategic planning and faithful pursuit of policies whether in agriculture and allied sectors, industry, tourism, forests etc. are needed. Every department and segment must have clear-cut objectives and system of functioning. And, of course, Government must be willing to hand hold and give adequate support to any area in need.

  Some Potentials and suggestions Nagaland has great potentials. The following are some :

1. Build and properly maintain National Highway 29 and the ‘X’ Roads proposal, suggested in the Nagaland Human Development Report (NHDR) 2004, in collaboration with UNDP and Planning Commission, linking the food producing areas of Nagaland with the mineral and oil producing areas and international trade centres as well as rail and air services and neighbouring states and Myanmar/Burma. Without these two all-weather arterial roads and improvement of feeder roads Nagaland’s hope of an economic boom may not happen. But with proper transport and communication infrastructure, Nagaland could aspire to become the main transport base and transit route for goods from the mainland going to Myanmar and beyond to other SE Asian countries.
2. Care should be taken to intelligently use our mineral resources. These are finite products. They should also not destroy our people. Nigeria is an example of where their oil resources seem to have caused more problems than bringing benefits to the people. This should not happen to us. Creation of wealth and beneficial use must be properly studied.
3. The forest wealth of the State is disproportionately in favour of our people but so far we have not done much in this area. The opportunities are immense. Given its rich natural wealth, Nagaland could go for biotech-industries, including setting up of Biodiversity institute and seed/gene banks. This is still a sunshine sector. Floriculture, medicines and pharmaceutical products, aromatic plants etc. could all be covered.
4. Culture and food are two very popular areas with great potentials. In recent years, Naga restaurants are sprouting out in various parts of India and they are proving to be very popular, not least because they are healthy. And our different tribes and colourful dresses etc. have always fascinated people. Traditional handloom and handicrafts, arts, cane and bamboo based products etc. could all be brought in.
5. Protect our niche products particularly in the agricultural and horticultural fields and provide adequate support. We are still not doing any planned promotion of our products which have been recognized by the Guinness Book of World Records. More studies could be done to uncover rare and endangered species available. Lateral thinking, overall, is much required.
6. Naga history too is an important USP of the Naga people. Take Battle of Kohima for instance. More and more people are coming to Nagaland in connection with this particularly after the Battle of Kohima-Imphal was voted the most significant battle in the history of Britain. Likewise, we can fine-tune other histories of our people.
7. It goes without saying that tourism will play a key role. And many of the above suggestions will tie themselves to the apron strings of Tourism in the State. Our signature event, the Hornbill Festival, brings the world to us every year and must go on. But the government has been complaining that the income have not been commensurate with the investment. This shows the need for better planning. But the benefits should not be calculated only in monetary terms. Also, how do we connect tourism with trade? For instance, Princess Sirindhorn of Thailand visited us a couple of years back. She visited only Bodh Gaya and Nagaland from reports. Did anyone follow up her visit? We must learn to make use of every available opportunity.

  Conclusion The end-objective of economic development is the development and growth of the human being. Therefore, any talk of trade and commerce and better livelihood options etc. are for the improvement of life of the people and increasing their happiness factor.

  If this is so, then we need to see the various parameters of Human Development and see if our trade and commerce objectives will fulfil these and whether they will further the UN Millennium goals!   Nagaland, like any other state or community, naturally, will require to plan adequately and to strategize its thought-through and well defined objectives.  

  (The author is State Representative on the Study on the Infrastructures based on the Act East Policy for the Northeastern States under the Techno-Economic Development Fund (TEDF) of GoI, administered by the NEDFI. The present piece is in response to the Chief Minister’s May 5 invitation (media reports) to share ideas and make suggestions for a new Vision document for Nagaland).