Could Federalism Be The Real Solution Of NE India's Problem Of Insurgency
(Special Reference to the study of Naga's peace Talk)
- Part 4 -

Dr. Dhanabir Laishram *

A Map of North East India

NDC and Planning Commission: The National Development Council has to be developed as an effective instrument for Centre-State co-ordination and should be given, through an appropriate amendment, a constitutional status as was suggested in the Srinagar conclave. The meetings of the NDC should be more frequent, at least one in every quarter, and its functioning should not be one of hastily imposing a pre-conceived view of the centre as a consensus on the states; as is no often practiced. Instead each issue should be discussed seriously with written notes from the centre and the states, and decisions should be taken democratically and implemented expeditiously.

The Planning Commission should act as an executive wing of the NDC. Unlike the present composition of the Planning Board, where members and experts are all nominated by the centre, there should be adequate representation of the states-both for members as well as experts with at least one from region with periodic rotation among the states in a region. The restricted planning commission must not act primarily as a representative of the centre as it is now but should also represent fairly the interests of states.

Finance Commission: A basic problem with the Finance Commission is the view expressed by the state are sever taken into account seriously, while determining the terms of reference of the commission. All the members of the Finance Commission are nominated by the centre and representatives of the states are never included. These practices need to be changed. In determining the terms of reference the views of the states should be taken into account seriously and if there is any difference of views on the terms of reference, the same should be settled in the Inter-State Council. In the choice of members of the commission unlike the present practice, there should be adequate representation of the state governments.

RBI and Public Institutions: The states should be involved in the functioning of the Reserve Bank of India as well as national level public finance institutions such as NABARD, IDBI etc. States should have a share in the policies of credit disbursement particularly to ensure proper collection of priority sector lending and inter-state balance in loan bursement. Representatives from the states should be included in the boards, one from each region on a periodically rotational basis. Representation of state in the commodity boards like Tea Board, Coffee Board etc. should also be ensured.

Shrinking Fiscal Space: Despite the well laid down contours of fiscal federalism in India, the space available to the states has been shrinking in recent times. The governing centralisation of financial powers might well be unintended consequences of the changing dynamics in public finance. For instance, a major reform of the indirect taxes, through the value added tax(VAT), require a careful reworking of the centre-state financial relations including the question of compensating the states for possible revenue loss adjustments of an even greater magnitude would obviously be required if the goods and services tax(GST) is introduced, as announced in the budget, on April1, 2010.

The switch over to the GST is a bold move to increase the share of the states tax revenue by bringing into their net the fast growing services segment. However, a great deal of preparatory work needs to be carried out, and this includes amending the constitution, before the change could take effect. For the states, consumption taxes are the major sources of revenue. The fact that they will be subsumed under the new tax demanded that the rate structure of the dual GST should be worked out in a way that the states do not lose in the long run. No account should the existing vertical fiscal imbalances be accentuated further.

Another significant development impinging on the fiscal autonomy of the states relates to the changing composition and nature of central government expenditure. In recent years, the union budgets have tended to step up outlays on centrally sponsored social sector schemes. Forinstance, this years budget has considerably enhanced outlays on schemes such as the National Rural Employment Guarantee scheme, the Sarva Shiksha Abhiyan and the National Rural Health Mission. They are set to get Rs. 40,791 crore more than the Rs. 54, 476 crore budgeted for in 2008-09. Since in some cases the states will have to make matching grants, their funds are tied to the central schemes.

More invidiously, the pattern of central expenditure goes against the grain of decentralization and federalism. In a recession year, tax revenues of both the centre and states are expected drop sharply. The state will therefore have to reckon with a shortfall in revenue arising out of lower central tax devolution as well as a fall in their own revenues. In the circumstances, the recent enhancement of the borrowing limits of the state governments to four percent of GDP might not be sufficient to finance the additional expenditures they may have to bear.

CONCLUSION:

Thus in our federal structure there is more inclusive authority model and more centralize in character. Though these are compel to do in the early days of framing constitution because of having internal disturbance and unavoidable circumstances, still that will be flourishing far from redesigning. In case of the small states and periphery from the centre like the states of NE are more and more merginalised and not develop at all. That is the result that maximum number of armed opposition groups demanded autonomy including Assam and Nagaland. But it should not be the fruitful solution of the prevailing situation, until or unless the centre checks the basic problems of the existing system of federalism. There will be no progressive changes in the administrative and financial relationship in between centre and state relationship though some of the contentions as special federal relationship are addressed in their peace talk. That means we have to see some of the drawbacks of the ongoing peace talk of NSCN and ULFA pro-talk group.

The Centre has claimed to have made tangible progress during the peace talk with both NSCN (IM) and pro-talks faction of the ULFA led by Arbinda Rajkhowa, the outfit's political head. Both the leaders of outfits described the talks as very satisfactory and their discussions were held on a charter of demands presented by both the outfits, which includes a Constitutional amendment to grant a special federal relationship. For Assam, they wanted to have a special status on the lines of Jammu &Kashmir in accordance with Article 370 of the Constitution.

It is quit good to some extend. But the first question that strikes to the people of Manipur and Assam is whether this peace process will really bring durability to the peace being attempted. In the demands of the NSCN (IM) maximum autonomy of Nagaland as federal unit of India is commendable but the demands of supra state body or administrative and financial relationship with the centre directly to Naga inhabited areas of Assam, Manipur and Arunachal Pradesh would be highly inflammable. Even in case of Manipur it will be four districts in hill areas out of five districts in number. Moreover to integrate these areas to Nagaland is their long dream. So from the very beginning, civil societies started to react against them. Subir Bhoumik, Editor of 'Seven Sisters' rightly remarks in his editorial column that India still followed Chanakya's principles reconciliation, divide, money and force to deal with the vexed problem of insurgency in the NE. It should not be applied to the NE. The fighting between NSCN and security forces might be stop but the fresh enmity among the communities will be germinated because balkanization of their states' boundaries is not compromised by them.

For that, people have already sacrificed their lives (recall the incident of June 18th 2001 in Manipur). People didn't react without solution and opposed any measures for the welfare and development programmes of them, but the question of state viability is being raised again and again in case of small state like Manipur. So it is not a wise step for India to give chance for conceiving Sovereignty is the political issue and India is the problem by the Manipuris, who protected the sovereignty of Manipur more than 2000 years before annexed to India in 1949. For Assam enough is enough, what the centre wanted to balkanize after four states of NE separated from Assam.

Here it is better to note in the minds of the outfits leaders mainly Naga that besides maximum autonomy of Nagaland the aspiration of other Nagas who are inhibiting in different areas of three states could be accommodated by providing bi-cameral legislation in each of the states' assembly. To have joint sitting of the houses means sharing of policy making and to being members of legislative and executive also means to implement the policies. Even it can be accommodated the political aspiration of micro minorities of tribal people. The same thing could be applied by the Nagaland also for the eastern Nagas, who wanted to separate from Nagaland. For that State Legislative Council no one should fight such malevolent election of today but they will get the same status of MLA. It could avoid exploitation within the tribal by tribal also. Such proposition should be accepted by the outfit's leaders who understand how to resolve the conflict situation. In this process each of the groups should sacrifice their own interest in order to bring compromised line, otherwise conflict should be spiral and more compounded.

In comparison with Nagaland, pro talk group of ULFA is wobbly in position. For, the military boss of the outfit, self-styled commander-in-chief Paresh Baruah, is still elusive, remains intransigent as far as Assam's 'sovereignty' is concerned, has made it categorical that his and his associates' fight against the 'Indian occupation' of Assam will continue until his goal of an 'independent' Assam is attained, has evolved into an eminent illegal arms dealer operating along the Myanmar-China border and reportedly set up excellent links in China of late, is interested in establishing camaraderie with the CPI-Maoist that has already ramified into Assam, and has absolute command over the ULFA's resources, both military and financial.

Here one could see the editorial views of 'The Sentinel' (12 April 2012) with the logical conclusion that were Baruah to continue to be outside the peace process under way and preside over acts of terrorism, would peace really happen? Would rather disorder not be durable in that case?

Another pertinent question is that could special federal relationship be the solution of the problems of Assam and Nagaland. Both the states are not transforming their government into governance and to good one. It could not be beyond the question since last two decades. Look at the rate of unemployment in the states of NE. It is not just a question of unemployment; the larger question is that of unemployability – a formula for a greater disaster if the problem is not tackled by way of revamping the education system in vogue so that we have a skilled workforce coming out of schools and colleges, and so that they enjoy an employability proportion.

From above tribulations, when one looks at solution for that why not the role of government should be counted. To tackle the problem, the government must also have the vision to set up the right kind of infrastructure and help make the right kind of investment climate. This is yet to happen, and, unfortunately, there are no signs as yet that things in that direction will happen soon.

Special federal relationship could not change the mindset of ruling elites of NE India. Maximum states of NE are not free from corruption. Unless the government shows the will and beckon guts to take on corruption head-on and eliminate it – peace in Assam and Nagaland are impossible, since it is corruption that is chiefly responsible for lack of development and it is lack of development that makes different aspiration among the different communities. Even it stirs up the various movements, such movements are training ground of people's war.

Concluded...

REFERENCES

- Gourachandra, Political Development in Manipur (1984-2002), Unpublished Thesis, Submitted to M.U.
- Patrick Hoenig is Visiting Professor at the Academy of International Studies, Jamia Millia Islamia, New Delhi. He is currently working on a project on federalism and identity in India, with a special emphasis on Jammu and Kashmir and Northeast India.
- Dhanabir Laishram, The Stitch, Akansha Publishing House, New Delhi, 2009.
- Dhanabir Laishram, The Middle Space, Akansha Publishing House, New Delhi, 2011.
- Jain S.N., Allocation of Taxing Power Between the Centre and the State, N.Sanajaoba(Ed) Basic Issues on Centre-State relation, Omson Publications, Gauhati, 1985.
- Approach Paper on Restricting of Centre-State Relation – A dopted by the Central Committee of the CPI(M) at its meeting held at Kolkata from October 12-14-2008.
- State Finance, Reserve Bank of India, Nov,2006; Handbook of Statistics on India Economy and Report of the 11th Finance Commission, June 2000.
- The Gist of Status of Discussions and Negociations on Various Issues Submitted By NSCN(IM) 2011.
- The Hindu, August 10,2009.
- The Sentinel, April 12, 2012.
- The Sangai Express
- The Seven Sister' Post.