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APPROACH TO THE 10TH PLAN, 2002-‘07

INTRODUCTION :

The 10th Plan of Nagaland was formulated at a period of the State’s history when there is a mood for change and an air of optimism among the people in the State ushered in by the peace process. Within the Government also, a new resolve and will is emerging. The Plan is also being formulated at the commencement of a new century and a millennium dominated by technologies that portend far reaching consequences for the social, economic and the political structures of man. Despite the current decelerating phase of the global economy, the world over, there is an air of expectation and hope. The expectation is especially high among the underdeveloped world as Information Technology makes it seem as if global equalization is possible. At such a juncture, there is a need to induce radical changes in the planning and development processes in the State with the objective of accelerating the development of the State. The State’s Development Plan has to be formulated with an economic strategy and has to depart from the stereotyped approaches of the past.

The changed approach to the planning process has further become a necessity due to emerging global trends. Liberalization and the ascendancy of the market economy have become the primary economic process and all economies have to be in tune with the changed environment. In such a process, it is no more valid to view the planning and development process as the sole responsibility of the Government. The basic themes being privatization and democratization, the methodology for development therefore requires to be centered around  public participation. Thus, the 10th Plan will have to be based on different strategies and approaches as compared to past plans.

THE PLANNING PROCESS : A REVIEW

             Much has been achieved in the State in the 37 years of Statehood as is evident from comparison of basic statistics of Nagaland in 1963 and 2000. But the achievements require to be now consolidated to provide a take off for economic growth commensurate with the demands of the present situation. Infrastructure projects, per se, cannot accelerate economic growth. It is only a means towards achieving growth and not an end in itself. The infrastructure created over the past four decades needs to be optimally utilized and exploited. The approach will also require to be designed to change not only the expectations of the people but also their visions.

             The basic strategy and approach till the 9th Plan had been to provide for the basic infrastructure needs of the people such as roads, water supply, power supply, schools, hospitals etc. We have been largely successful and a large part of the infrastructure is now in place. While the quality of infrastructure such as roads and services such as education, health leaves much to be desired, the building of infrastructure is not sufficient. It is supposed to provide the platform and act as a springboard for economic take off. 

            Up to the 9th Plan the planning process consisted of the Departments drawing up individual Plan documents which were compiled in the Planning Department and submitted to the Planning Commission. There was no overall vision or a clear economic agenda. The Plans were essentially schematic programmes of the Departments which was further based on the concept that the Government was the sole mechanism and provider for all the development needs of the people. Without a clear economic agenda, the Planning process had therefore, become mechanical and of late reduced to a mere exercise of resource management or a fiscal balancing act. The shift in the Planning Commission’s policies of not holding Sectoral Plan discussions had further added to this deterioration.

             In such a backdrop, the plans of the Departments were also mainly bureaucratic oriented. The programmes of the Departments were concentrated in expanding the Departmental activities in the form of opening of more offices, creation of posts, construction of functional and non-functional buildings, purchase of vehicles etc. It has been a process of creating a huge monolithic bureaucracy, whose upkeep and sustenance today absorbs almost all the energies of the Government. The 10th Plan requires to correct this negative process which is not in tune with the requirements of the times or the interests of the people.

GUIDING PRINCIPLES FOR THE 10TH PLAN

In the light of the scenario elaborated above and the resource issues which are discussed in Chapter – III, the following critical areas require to be adopted as guiding principles in our approach to the 10th Plan as also for future Planning perspectives.  

1.      Tangible and sustainable economic growth, leading to productivity and increased income generation that leading to improving the quality of life of the people, shall have to be the focus of the 10th Plan. Schemes and programmes which do not match this objective shall have to be reviewed, recast or even dropped.

2.      Rationalization and rightsizing of Government while simultaneously providing for alternatives to the reduced opportunities of Government employment.

3.      Reduce the scope for expansion of Government or bureaucratic infrastructure and introduce measures of sharing of resources and manpower through a co-ordinated approach, as against the present trends of compartmentalization and duplication of activities.

4.      Change in the development perspectives of the Departments to share responsibilities and involve the people/private sector in achieving the set goals of the 10th Plan.

5.      Disinvestment and privatization of Government ventures ranging from public undertakings to Government farms.

6.      Privatization and democratization/decentralization of public utilities and services such as Water Supply, Power Supply and Transport Services.

7.      Gradual shift of responsibility from the Government to the people in sectors such as Education and Health also need to form part of the 10th Plan process. The recent concept of Commoditization would be an appropriate approach in this gradual shift of responsibilities to the people.

8.      Projectised approach to schemes and plans of the Departments.

9.      Departments to justify their existence. Their budgets and schemes should be explainable in terms of the contribution to the overall economic growth of the State either in quantified terms or in terms of social cost benefit analysis. The development process has to create a positive sense in the government and the departments will have to be proactive in expanding and building up the Revenue base of the State. 

BASIC APPROACH TO THE TENTH PLAN. 

            We have to approach the 10th plan with an agenda for economic growth. Economic growth has to be measured primarily in terms of productivity in all sectors of activity. In conjunction with the strategy adopted by the Planning Commission, it is intended that the 10th Plan be approached with increase in per capita income as the basic yardstick along with increase in non-Government employment, particularly among the educated sections, thus leading to enhancement in the quantity and quality of output in all sectors.          

The per capita income of Nagaland for the year 2000-2001 is estimated at Rs.13,367/- based on the estimated Gross State Domestic Product ( GSDP ) of Rs.2587.98 crores. We have to work out a strategy by which to double the per capita income in the 10th Plan. 

The approach in very simple terms is to undertake a microscopic review of the Agriculture Sector and pay detailed attention to all aspects of increasing productivity. It is felt that increasing or doubling the per capita income of the State may be possible through the Agriculture Sector for the following reasons. 

1.  The estimated SDP of Nagaland at current price by industry of origin during 2001 comes to Rs.2587.98 crores

2.  The contribution of the primary or Agriculture sector is Rs.703.33 crores or 27.18%.

3.  The secondary or the Industrial Sector stands at Rs.542.79 crores accounting for 20.97 %   of the total

4.  The tertiary sector or the Services Sector contributes Rs.1341.86 crores or 51.85%. 

The fundamental issue is that going by the distribution of main workers in Nagaland, cultivators account for 72.65% of the total main workers of Nagaland.  This seen in the light of the Sectoral contribution to the SDP means that 72.65% workers of Nagaland contribute only 27.18% to the Gross State Domestic Product.  The other 72.82% of the GSDP is generated by 27.35% of the population. This is also comprised to a large extent by salaried State Government employees. The figures as per the 2001 census figures will require to be firmed up but it is anticipated that the percentage of cultivators among the main workers in Nagaland will remain almost unchanged. 

   

Land and agriculture remain the basic resource of the State for the sustenance of the people and the economy since neither trade, commerce or industry seem to be in a position to take off as major economic activities in the near future. It is therefore almost imperative that the Agriculture and Allied Sector form the core of our plan activities. The approach should also be oriented towards production and productivity. It should also be our endeavor that in the current Plan we promote only a few crops for production on an economic scale. 

Forest comprise over 56 % of our surface area. The potentials for utilizing the forest resource in a scientific and sustainable manner without affecting our ecology, environment nor destabilizing the resources for future generation will also have to be one of our focal points of Planning. 

STRATEGIES IN BRIEF:

1)  Promote schemes and activities in identified sectors to stimulate economic activity targeted to raise the level of GSDP and Per Capita income of the people.

2)  Identify and concentrate on generating trade, commerce and exports from and through the State.

3)  Enhance generation of personal income and increase purchasing power to create a situation which induces increased consumption leading to demands and  expansion of domestic market

4)  Increase the revenue base of the State through productivity and a buoyant market economy.

5)  Increase profitability of entrepreneurs to stimulate further investments in production sectors.

6)  Rationalization and involvement of Market Finance for investment in ventures of commercial nature and economic scale production.

7)  Projectisation and investment based approach to Departmental schemes categorized into

a)  Viable

b)  Partly viable

c)  Non-viable infrastructure and social ventures

8)  Make optimum use of the Planning Commission Project Preparation facility and attempt to obtain as much Externally Assisted Projects for the State

9)  Restructure, maintain and consolidate the existing infrastructure and assets to facilitate optimum utilization of such facilities for value added services and production.

10)Communitise, democratize and privatize projects and services to effect better management of the assets of the State as also reduce the burden of the Government.

11)Invest Plan funds for reduction of Government expenditure and rightsizing of Government.

12)Reduce dependence on the Central Government for the State’s development programmes and administrative requirements through increase in revenue and reduction of Government overhead expenditure. 

OTHER DIMENSIONS AND STRATEGIES FOR PLANNING AND DEVELOPMENT 

1. IMAGINE NAGALAND :  The “Imagine Nagaland” exercise sponsored by the UNICEF has opened up a very wide scope of thinking in Nagaland. Not only has it enlarged the vision of the people within the Government but it has also shown the opportunities available to expand the scope of development activities in Nagaland. Many development concepts on a projectised approach have emerged through this exercise. It should be the endeavor of all Departments to fit this into the scope of the 10th Plan. 

2. COMMUNITISATION :  The process of privatization is yet to take shape in the State. An abrupt shift of institutions from the Government sector to the private may not be possible or desirable. What is, however, important is to ensure public involvement in the schemes and programmes of the Government. The community cannot be by-standers in the process of development. The management of Government institutions and services of Education and  Health care have been Communitized. The  process of communitisation of Water Supply, Electricity are in the Final Stage of Completion

3. STREAMLINING CENTRALLY SPONSORED SCHEMES : There are numerous Centrally Sponsored schemes being implemented in the State. Some of the schemes have not only lost their relevance to the State and therefore the economic viability in terms of any impact on the state economy but some have also become a burden for implementation. We need to scrutinize all the CSS in operation in the State and consider shelving such CSS schemes which are redundant. We also have to be selective and implement only those programmes which are economically relevant in our present context. We should also preferably implement only such schemes which are funded 100 % by the Centre. All the expenditures on establishment and salaries of the employees appointed against CSS should be transferred to the CSS programmes that are being continued. The Government may also allow creation of posts sanctioned by the Centre against specific CSS but fill the posts by re-deployment from the existing staff and no fresh recruitment be allowed. The post so created should also be made co-terminus with the projects/programmes. 

4. QUANTIFICATION OF TOTAL PLAN INVESTMENTS : In view of the envisaged constricted Aggregate Plan resources of the Tenth Plan, it is necessary to strictly adhere to the directives and guidelines of the Planning Commission in regard to quantification of resource investment. The present practice is that the various sources of funding, such as NCDP, CSS, Direct funding from NGOs, Tribal development funds etc. are treated by the Departments as a kind of subsidy and considered a separate entity not related at all to the Plan activities or the economic development of the State. On the contrary, the Central Government computes all the funds coming to the State, irrespective of the source, as the total sum of fund invested in development programmes. It may be of interest to note that the quantum of funds likely to be released to Nagaland by different Central Ministries against various CSS during the current Annual Plan, 2001 – ’02 is estimated at Rs.160 crore. This amount Quantified, in terms of five years of the 10th Plan, works out to over Rs.700 crore. Henceforth all different sources of funding should be quantified and taken as the sum total of investment of the concerned Departments. The Departments should remedy of the incorrect notion that the State’s Normal Plan fund is the only fund available with them.       

5. NON-LAPSABLE POOL OF CENTRAL RESOURCES : The NLPCR is another significant source of development funding. The present practice has been to collect schemes from the Departments and forward them as and when they are furnished to the Government. This should be changed. The funds under this pool should be dovetailed into the Plan thinking and only such schemes that are intrinsic to the set priorities and goals set by the State should be forwarded for consideration by the Centre. The Centre should also be appraised to include officers from the State Government while selecting the schemes under the pool.

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