What is pulling down Orissa?

(Published in The New Indian Express on 21 July 2010 in Letter to Editor Column)
Bikash Choudhury


Why Odisha is considered still a poor State? Ruling party and its leadership have managed to cut many a corner; but, findings of survey after survey have confirmed Odisha one among four poor States in the country in spite of, best of policies, fiscal prudence, emphasis on governance, decent execution capabilities of State Govt. and over 9% growth in GSDP, that is over and above the National average. What are the factors that are making the growth story of Odisha surreal? To my mind, there are two factors that pull down the growth of Odisha year after year. First, poor development of KBK region despite of huge central allocation; Second, over thirty percent SC & ST population whose Per-Capita income is much below the average Per-Capita income of the State for years. What is the way forward? We need to diagnose, where & why KBK Development Authority could not make much an impact? KBK Development authority has invested huge sum of money in the region for last nine years; however, the results are not forthcoming. Governmental program though intended for the development of the capacity of the beneficiary but due to the ‘dole’ mindset does not create interest among beneficiary to create durable productive asset for their family instead most of the sum most of the time goes for current consumption. Further, since the stake of beneficiary is not locked in with the specific programs for their development; that is treated as grants by the Govt. in rural areas, courtesy their ballots. And, therefore, fail to start a collaborative effort for value creation. For faster economic development of KBK region; Govt. should deploy a chunk of financial resources through District Co-operative Banks in the region. Off late, it has been observed that a few District Co-operative Banks under dynamic leadership have devised innovative programs for Irrigation, Horticulture, Fishery and general capacity building in collaboration with farmers and other rural folks, which has shown substantial return on investment and also development of confidence among people in a collaborative and participative business model. District Co-operative Banks with their branches and co-operative societies have substantial presence in deep inside rural pockets and have intimate knowledge about the drivers of economy in their respective areas; which can be leveraged by State Govt. in KBK region; and that would reflect a decent growth story of Odisha than otherwise. What is needed is, apart from fund allocation; Govt. should also take keen interest in selection of dynamic leaders in co-operative sector with consistent past achievement for the District Central Co-operative Banks of Kalahandi, Bolangir and Koraput.