State's economic management and blockade : A brief glimpse

Paominlen Haokip *

Introduction

Professor Harold Koontz defined management as designing and maintaining an environment where individuals work together to efficiently accomplish their selected aims. The aim of management is "creating surplus'; it is concerned with productivity which implies effectiveness and efficiency. In economic management, financial resources are managed so as to create economic surplus, often reflected in the growth of Gross Domestic Product (GDP). This article intends to highlight economic management of the State and ongoing blockade; and critically analyse in brief from economic perspective, addressing to the State's policy makers and the blockade supporters.

State's Economy

This year, the Government of Manipur announced its budget allocation for 2010-11; the amount being raised to Rs 5965.24 crore. In comparison to the annual plan outlay of 2008-09, which was Rs 1660 crore, there has been a significant growth in plan allocation for the State; which is an increase of more than three times in a period of two years. Surprisingly, often, incremental growth of income occurs only with circumstances leading to an exponential rise in expenses and shooting-up of prices of essential commodities beyond measure.

Even at the national level, the current pressing concern has been the rise of inflation, the rate of which came down to 10.55 per cent at the end of June this year. In Manipur, during the recent economic blockade, prices of commodities like petrol and diesel increased by more than 100 per cent; this happens nowhere else in India. Hence, the State Government needs to take pain in managing its allocated budget for equitable and holistic development amidst inflation and rising prices.

Even the execution of development programmes under the current Special Plan Assistance (SPA) allocation for 2010-11 fiscal is still pending. This is because the complete utilisation certificate as well as progress report have not been furnished to the Planning commission for the 2009-10 fiscal. As per the report, out of a total of Rs. 128.89 crores utilised so far. utilisation certificate and progress report for only Rs.53.25 crores have been furnished for the 2009-10 fiscal.

In view of the situation, the policy makers' role in designing and maintaining the economic environment is truly a challenging one.

Bug Passing

Often, the media blames the State and the Central Governments on issues pertaining to economic impoverishment of the State. This is credible to a certain extent. Yet, very often, underdevelopment of the State is a collective responsibility of the entire citizenry. For what does a Government consist of It only houses repre sentatives of the people of the State and the Departments under Secretaries who are reckoned to be experienced bureaucrats.

Now, these representatives or politicians are either themselves policy makers or mostly depend upon the recommendations of the bureaucrats to advise them in the formulation of the policies, be it economic, infrastructure building or human resource development etc. Thus, if there be an economic problem, it arises largely from defective policy formulating machineries at the higher echelons, corruptions emanating from diverse directions and positions of power, and hindering the participation of people at the grass root levels. To a great extent, I personally believe, knowledge-based society will be capable of arresting this problem.

No surplus creation

Are there surplus benefits at all in the State of Manipur ? To be precise, in the subject of economy, despite its notified progress in the GK. book, there exist numerous managerial lacunas remaining un-bridged. In spite of the introduction of numerous Central schemes like NREGS etc, due to ineffectiveness and inefficiencies of implementation, the benefits hardly trickle down to the needy masses. Development is often disparate, not holistic.

In addition, many politicians and bureaucrats are hand-in-glove with the extortionists' sprouting out from various separatists and anti-developmental organisations within the State. These extortionists—in various guises—siphon off huge percentages of the State's funds. Manipur thereby fails to set a brilliant example in the sphere of economy. When I recently asked an IAS officer about planning in Manipur, he silenced me by his sarcastic remark. "Is there planning at all here?" He may not be wholly right, but, in view of the adverse economic environment, the managerial role of the State and effective planning is highly imperative and should be accorded an overwhelming priority.

The Sate Government has to create economic surplus amid the continual prevalence of disruptive tendencies evolving from several insurgent groups, students' unrest, strikes and bandhs, kidnappings and killings, and endless political upheavals. In this scenario, it is observed that the State miserably fails to fulfill its aim of creating economic surplus or formation of human capital.

Need for holistic Approach : Economic, Policy

As referred to earlier, the policy makers of the State need to focus on holistic development encompassing all dimensions of activities: in other words, it should be inclusive. The common people should be given opportunity to participate in the State's integrative role of restructuring and building itself with the available financial resources. In the sphere of exploiting rich natural resources of the State, the Government has a great role to play towards industrialisation of the whole State of Manipur. However, these aspirations will materialise only when corruption and inefficiencies are eradicated and shunned at all levels of the Government departments.

Failure of-Electricity Department and Roads : Mismanagement

In this regard, mention may be made of the electricity department, which must wake up out of its slumber. The failure of the department reflects mismanagement of power, an important aspect of economy. Though the need for electrical energy is increasing by leaps and bounds, the ministry of power and the department fail to deliver. Alas! Despite the State's requirement of energy increasing year after year, the supply is highly insufficient and adversely affecting everyone and everything.

Modernisation came through industrialisation which is impossible without infrastructures like electricity and power. For a small State like Manipur, energy from Loktak Hydro electricity should be sufficient if there exists efficient allocation mechanism. Here, students bear the brunt; and many of them are diverted towards unsanctified politics and involved themselves in endless strikes. Life without electricity is 'darkness' in every dimension.

Failure of roads

Next, consider the horrible conditions of our State's roads and national highways like NH-39 and NH-53. There are full of potholes and mud; often unleveled and ill-managed evident at times from captioned pictures by newspapers like The Sangai Express. The State has done so little about their construction, improvement and maintenance. When will Manipur beat States like Tripura, Meghalaya and Mizoram with regard to the management and standardization of roads and National Highways? Most of the roads are still unfit even for bullock carts to travel; unbecoming of a motorway.

Economic Blockade in Manipur: Its redundancy

Coming to economic blockade, as though the earlier imposition of economic blockade for over 68 days was insufficient, the Naga bodies headed by UNC re-imposed a 20-day economic blockade on the National Highways of the State beginning from 2nd August early this month to press their demand for investigation into the "Mao killings and their reiteration of their stand against the concluded ADC elections". To justify their activity and fit themselves and their demands into a legal framework, the blockade supporters continue to highlight Human Right issues unmindful of the basic rights of their fellow citizens to life-food and essential commodities.

A vicious habit

They follow the vicious habit of Israeli blockading the Gaza strip-allegedly run by Hamas-resulting in international resentment against Israel. However, one significant difference is that in Manipur, economic blockade is bound to affect the blockade supporters themselves; the imposition will be eventually self­defeating and at its worst- suicidal.

Eyeing the ongoing economic blockades with economic lens, any observant citizen will notice that the State is being facilitated in its course towards the brink of economic impoverishment. It is my observation that both the State and the citizens of Manipur are treading a regressive path together; travelling anywhere and everywhere but developmental. Crores of rupees have been drained away during these blockades.

In addition to the State's indifference towards economic advancement, should the people of Manipur-Nagas in particular- by resorting to economic blockades, add fuel to the fire? Surely, the State provided 'wild fire' burning up huge percentage of resources and mindlessly diverting them through its lack of efficient management leading to inequitable distribution of the State's wealth. It would be wise if the UNC and ANSAM pursue their demands through other means.

The idea of Blockade is extremely capitalistic and anti-social. It was the dream of Jawaharlal Nehru who firmly believed that the first role of independent India was feeding the hungry millions. Indeed, there must be a way to open up the eyes of the State Government to meet the economic needs of the citizens; yet, certainly not through the instrument of economic blockade. The blockade was largely responsible for the recent sky­rocketing of prices of essential commodities. Sadly, this blockade has political and communal overtones; and economic repercussion snowballing like a vicious cycle. And who suffers at the end? It is we, the common people.

Conclusion

Now, it is high time that the policy makers of the State should concentrate on these pressing issues without losing their focus on economic development. On the other side, blockade supporters should rethink the rationale behind their imposition of the blockade which has been choking the life-line of the State; and they should cease to delight in infamously hitting the headlines of several news networks across the globe.