Ruhee Neog
Senior Research Officer, NSP, IPCS
In interviews conducted post his appointment as the
head for the Ministry for the Development of the
Northeastern Region (DoNER), General (Retd) VK Singh
identified certain areas for the “overall development” of
the Northeast. This article will seek to discuss and give
substance to two of these areas, which have thus far
been mentioned preliminarily, and suggest a third.
The very first priority, which is probably already in the
works, must of course be a review of the performance of
the ministry - whether it has been able to fulfil its remit,
and most crucially, where it might have gone wrong.
This is primarily because the goals of the ministry are
going to roughly be the same as before, and the
changes will most likely be in the processes employed –
not the ‘what’ but the ‘how’. An assessment therefore
will be of immense help in identifying how past mistakes
can be avoided and in structuring the list of priorities.
Connectivity and Economic Growth
Connectivity is essential for trade, and trade for
economic growth. For this, comprehensive backward
and forward links with the rest of India and across the
region’s massive international borders are essential.
Currently, connectivity on all three counts - between the
Northeast states, with the rest of India, and abroad – is
dismal.
General Singh also holds the portfolio of Minister of
State of External Affairs, which is very interesting
because the development of the Northeast necessitates
to a large part the proper implementation of India’s
Look East Policy (LEP). There have long been
complaints about how, in the enthusiasm for the LEP’s
success, the Northeast would merely be a spectator of
the development that would pass through it without
necessarily doing any good to the region itself. The dual
role that General Singh has taken on is therefore a
welcome move, and it is hoped that this would lead to
the DoNER and the Ministry for External Affairs (MEA)
working complementarily where required.
In terms of cross-border trade, the trade conducted at
Moreh in Manipur and Tamu in Myanmar is instructive.
It is noted that while the essential institutions are in
existence, their performance leaves a lot to be desired.
For instance, Moreh has both Land Customs and
Currency Exchange Centres, but they are under-staffed
and do not function well. Additionally, despite there
being a Double Taxation Avoidance Agreement between
Myanmar and India, which is meant to ensure that
taxation occurs only in a company’s country of
permanent residence, tax irregularities continue to
persist. Business is therefore sought to be conducted
through seaports in Kolkata, Mumbai and Singapore,
even though a land access point with (theoretically)
hugely reduced transport costs is available.
Another major problem is air connectivity. Proposals for
Greenfield airports in the Northeast have been bandied
about but come to naught, with the exception of the
airport at Pakyong, Sikkim, and the future of an Open
Skies Policy as introduced by the ASEAN-India Aviation
Cooperation Framework, which could be a trade
multiplier, is uncertain.
Infrastructure Facilitation and Investment Promotion
The problem here is not of insufficient funds but that of
funds not funnelling through to their targeted
beneficiaries.
The most practicable investment model for the
Northeast is the Public Private Partnership (PPP) model.
However, it is difficult to chart a clear trajectory in the
advancements that have apparently been made, and
political imperatives often mean that these projects
extend indefinitely beyond their deadline or come to a
halt altogether with declarations of being revived at
some point in the future. The lethargic implementations
of ambitious plans and inter-state politicking have held
these projects back.
Image Management and Accountability
The popular perception of DoNER in the Northeast is
more negative than positive. It is seen as a region-
specific ministry whose perspective is unfortunately
informed more by the Centre, from which it emerges,
rather than the region whose interests it seeks to
represent. Added to this is its lacklustre performance
and apparent inaction, which has much to do with the
lack of public dissemination of information.
The deficiency in public knowledge of the DoNER’s
activities becomes especially important in light of the
reactions to DoNER’s new avatar. In particular, much
has been said about the appointment of a former Army
man, General (Retd) VK Singh, as the Minister in charge
of this portfolio. Many have expressed their concerns
about the practice of looking at the Northeast through a
‘combative’, military lens. To quell such misgivings, it
becomes imperative for the ministry to corroborate its
work to safeguard the interests of the region through
active and regular dissemination of information.
Controlled transparency would allow accountability,
which in turn would help inspire regional confidence in
DoNER’s workings.
What can be most unambiguously said about this
change of guard is that above all else, DONER needed
an injection of fresh blood. Whether this will be to the
detriment of the region or its gain cannot be deduced in
the first few days of the new ministry’s existence.
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