Manthan Sunrise States: Realizing the growth potential of North-East

Submitted by: Victorious Secret

Team Members Arati Email id pgp28096@iiml.ac.in Mobile 8127416716 College IIM Lucknow

Amit Yadav
Kapil Khandelwal Priti Rani

pgp28263@iiml.ac.in
pgp28274@iiml.ac.in pgp28273@iiml.ac.in

8953470291
8009947511 7897773953

IIM Lucknow
IIM Lucknow IIM Lucknow

Supriya Sharan

pgp28264@iiml.ac.in

8127416275

IIM Lucknow

Problem Statement

Proposed solution

Implementation of the solution

Challenges

Areas of Growth Potential

Basic needs Infrastructure Resource Understanding with the rest of the country. Governance

Development Indicators
Road length, access to healthcare, and power consumption in the region are below the national average Generates less than 8 per cent of its 63,257 MW of hydroelectric pwer generation potential Per capita power consumption of power at 110 Kwh. is almost a fourth of the national average (411 Kwh.) Process of Development Top-down development planning strategy has not involved people in designing and implementing the strategy Relationship between public spending and service delivery outcomes has been tenuous. Lack of peoples involvement has robbed the system of a sense of belonging and led to inefficient and wasteful resource allocation Lack of social accountability Weak and unresponsive institutions of governance and market

Economic Factors
The standard of living of the people in the region, as measured by per capita Gross State Domestic Product (GSDP), has lagged significantly behind the rest of the country. At Rs. 18,027 in 2004-05, GSDP was less than the all-State average of Rs. 25,968 by 31 per cent

Problem Statement

Proposed solution

Implementation of the solution

Challenges

8-Fold Solution
Structural Transformation Harnessing Resources
Building capacity in people and institutions Self-governance

Poverty Eradication

Remove Infrastructure Deficit

Center for trade and commerce

Poverty Eradication

Problem Statement

Proposed solution

Implementation of the solution

Challenges

1 Structural Transformation 2 Poverty Eradication 3

Structural change from government-dominated economies to private sector participation Inclusive and sustainable programmes Substantial capacity building of Panchayati Raj and other institutions of local self-government Changes in the structure of the economies of the various States in the region Acceleration in economic growth from agriculture, manufacturing & non-government sectors. Significant changes in the development strategy followed so far Creation of an enabling environment for private investment in productive sectors.

Self-governance

Devolution of power to villages for participatory governance and economic progress Panchayati Raj institutions need to be strengthened Active participation of people in the political processes and in grassroots planning Security of life and property Village development councils to undertake grassroots planning

Problem Statement

Proposed solution

Implementation of the solution

Challenges

4
Harnessing Resources

Participatory development in agriculture - adopt a different approach in hills and plains Progression from settled cultivation through proper extension services Enhance land productivity by increasing crop intensity- better use of water resource Manufacturing sector based on these resources to create productive employment opportunities Comparative advantage for private sector participation in manufacturing activity - tap mineral resources and hydroelectric power potential

5
Building capacity in people and institutions
Human Development
Raise the quality of and access to health and education Development strategy based on the resources of the region - enhancement of the skill levels

Institutional Development
Create district planning agencies and developing capacity in them to coordinate d implement plans right from the village level Government intervention is necessary to nurse market institutions Promotion of markets and institutions to disseminate information on prices and products is extremely important

Problem Statement

Proposed solution

Implementation of the solution

Challenges

6 Remove Infrastructure Deficit

Improve rail and road density Make functional the traditional transportation routes through Bangladesh Air hub at Kolkata -Key reason for poor air connectivity. Locate the hub at Guwahati Improve border infrastructure Facilitate trade facilitation with neighboring countries, particularly China and Bangladesh. Diplomatic initiatives and an extension of the rail network to Chittagong Diplomatic initiatives -open up access through inland waterways with neighbors

Center for trade and commerce

Opening up trade routes will expand economic opportunities for the region and accelerate its growth process Region can regain its place as a centre of flourishing trade with East and Southeast Asia

8 Effective Governance
Peace and harmony, and absence of insurgency are keys to progress Remove Insurgency - Insurgency has taken a heavy toll on economic progress

Problem Statement

Proposed solution

Implementation of the solution

Challenges

Implementation

Components of the Development Strategy

Empowering people through inclusive governance

Developing sectors with comparative advantage

Capacity building of people and institutions

Problem Statement

Proposed solution

Implementation of the solution

Challenges

Implementation

Development Strategy

Empowering People

Empowerment of people by maximising self-governance and participatory development through grass-roots planning Creation of development opportunities for a majority of the people living in villages Rural development initiatives Developing sectors with comparative advantage so as to utilise the resources of the region productively for the benefit and welfare of the people

Investment in rural areas, in rural infrastructure and agriculture Increased credit availability, particularly to farmers and others, and offering them remunerative prices for their crops Increased rural employment, including the provision of a unique social safety net in the shape of the National Rural Employment Guarantee Programme; Increased public spending on education and health care

Problem Statement

Proposed solution

Implementation of the solution

Challenges

Developing Sectors Focus on manufacturing services based on the regions resource endowments Cold storages and processing support for horticultural crops Expand food-processing, handlooms and handicrafts Expansion of sericulture Tourism has high potential for generating income and employment. Financial sector including banking, insurance, the information technology Creation of education and training facilities for the youth of the region in Information Technology (IT)

Capacity Building

Manufacturing Sector

Human & Man Power Development

Provide access and incentives for the education of women and tribal populations Expanding the educational infrastructure, particularly in technical areas Human development such as raising health status and nutrition is equally important for capacity development
Create institutions of self-governance right from the village level and activating them to ensure maximum participation Planning will require capacity building at all levels beginning with villages and municipalities, at the block, district and state

Service Sector

Building Capacity in Institutions

Problem Statement

Proposed solution

Implementation of the solution

Challenges

Disparities

Vast disparities among geographies and various tribes in terms of needs and priorities Population comprises of more than 550 tribes including scheduled tribes and sub-tribes ; each with its own language and culture Limited availability of arable land with 52 % forest cover used for providing global public goods In states like Mizoram and Tripura two third area is hilly terrain and hence difficulty to use it for agriculture Harnessing resources may lead to environmental problems and projects may not get environmental clearance Facilitating trade with neighboring countries may cause security issue Insurgency problem in several parts of North East

Land Issues
Disparities Land Issues Environmental Clearances

Environmental Clearances

3 4

Financial Requirements

Security Concerns

Security Concerns

Thank You

References
http://www.mdoner.gov.in/sites/default/files/silo2_content/ner_vision/Vision_2020.pdf http://mdoner.gov.in/sites/default/files/North%20East%20Report%20-%20Index%202.pdf http://www.pwc.in/en_IN/in/assets/pdfs/publications/2013/north-east_summit-2013.pdf