Globalization and New Delhi's new approach to the North East
- The Sangai Express Editorial :: April 21 2015 -

The approach adopted by the Indian State as far as Northeast is concerned before the 1990s is popularly known as Nehruvian model.

This was before India undertook structural adjustment programme in the early part of 1990’s, which was based on two edifices, security and political-economy.

From the security point of view, Northeast was regarded as a strategically important region by virtue of its proximity to many countries such as China, Myanmar, Nepal, Bhutan and Bangladesh.

On the other hand, the political-economy approach dictated that the people of the Northeast need preservation (like engendered species of plants and animals) as they are ‘primitive’ people.

Fallout of this approach was that no financial institutions were allowed to be established or institutionalized because of the apprehension that sudden implosion of modern forces of economy can wipe out the people of the region.

In other words, the understanding was that economic needs should be driven by the culture of the primitive people.

This approach underwent a dramatic transformation when India started its structural adjustment programme, which ultimately paved the path towards globalization, liberalization and privatization.

Cocooned and isolated for a long period under the Nehruvian model of political economy, the North East region was caught napping, quite unprepared as India started pushing vigorously for its Look East Policy, now Act East Policy.

Entrepreneurship skill and the know-how of competitive business sense which are the highlight of any global business were never allowed to grow in the region. Then there are the institutional problems of finance and banking.

The Northeast lacks them, and as such meticulous planning and vigorous execution of appropriate policies are needed to bring the region at par with other parts of the country before exposing the North East to the onslaught of global capital.

After all, the information technology revolution dictates that the world has become a closely knit globe, and thus, globalization is inevitable. One cannot simply escape from the integrating clutch of technology.

So the advice is: mitigate risk and become a partner in the new process.

The unsaid part was/is that globalization is a new force in which liberalization and privatization of economy are the central unchangeable configuration.

In place of the colonial industrial or finance capital, hitherto considered to be exploitative, today stands the global finance capital.

In regions where there is lack of financial and banking institutions, it has tremendous risk factor. It does not stop here.

Virgin lands and their resources remain to be exploited, and when these are exploited the natives do not stand to be benefited. Resisting such a force is a Herculean task, some say even next to impossible.

Oil exploration in Tamenglong, Churachandpur and Jiribam is a case in point.

How much the State of Manipur or its people would benefit from the fossil fuel found underneath its surface remains vague and doubtful. This is just the beginning.

Once the Imphal-Mandalay bus service becomes operational, Manipur and the entire North East region would be bombarded by global finance capital from all directions.

In this age driven by information technology, Manipur cannot afford isolation. In fact, connectivity is crucial for economic development.

Sure enough, Imphal-Mandalay highway would open a thousand opportunities.

But the moot question is, are we prepared to exploit these opportunities.