India Today

Breaking the Shackles of the Past

Why is Jharkhand such a paradox, so resource-rich and yet stuck in a poverty rut? The India Today State of the State report looks at the big picture and presents a roadmap for how the state can stage a turnaround

- By Dr Surjit S. Bhalla and Ajit Kumar Jha

Majestic hills, wild waterfalls, verdant valleys, steeped in rich history and a rich, diverse tribal culture, the eastern state of Jharkhand is a paradox. It’s rich in natural resources, including forests, minerals, rivers, with abundant rainfall and fertile soil, yet the majority of its people live in abject poverty. Jharkhand has 40 per cent of India’s total mineral reserves but accounts for only 10 per cent of the country’s total mineral production in terms of value.

A second paradox is that the state (then part of Bihar) started industrial­ising and urbanising as early as 1907 when the Tatas set up a steel plant in Jamshedpur, and Dhanbad developed as the country’s coal capital (over a century ago). Yet, 110 years later, Jharkhand has one of the largest rural population­s in the country. The urban population of 24 per cent (2011 census) is much below the national average (31 per cent).

The state presents a third paradox though it began as a mining and manufactur­ing hub, recent data shows that the biggest decline is in the manufactur­ing sector. The state does surprising­ly better in services. The increase in the share of services has been at the expense of its share in manufactur­ing, the latter dropping from 34 per cent in 2004-05 to only 20 per cent in 2013-14. The share of services increased by 12 percentage points while the share of manufactur­ing declined by 14 percentage points.

A fourth paradox lies in Jharkhand being the country’s capital for coal, a mining hub for several minerals (mica, manganese and bauxite) and iron ore, with two of India’s largest steel plants—Tata Steel, the first private steel plant in Jamshedpur, and the largest public sector steel plant in Bokaro and yet languishin­g near the bottom among the 29 states on most Human Developmen­t Indices (HDI).

Why is Jharkhand such a paradox? Is there a way out of this

low-level equilibriu­m trap the state seems stuck in? To answer this conundrum, india today began the State of the State intelligen­ce report. State of the State (SOTS) report With a firm belief that the future of India lies in its 29 states, india today’s annual State of the States survey has since 2003 emerged as the gold standard for analysing the performanc­e of the provinces. The State of the State (SOTS) survey was the next logical step. We prepare an X-ray view of each state, a SWOT analysis, a microanaly­sis at the district level.

Cut to Jharkhand: 24 districts, 16 years, 9 categories of human developmen­t, each composed of a few key parameters. The SOTS report comprehens­ively tracks historical change and economic, social and human developmen­t in Jharkhand. Taking an out-of-the-box view of the state, the report analyses the state’s key categories based on continuous time-series comparativ­e and reliable data available. (Consistent time-series data are available for 18 of the 24 states).

The SOTS Jharkhand report concludes with a big picture, a road map for the future of the state and a vision model laying out the top priorities that can turn around the state’s economy and provide it good governance by replicatin­g some of its core strengths. These are what the SOTS investigat­ion reveals and also some best practices from outside.

The findings are astonishin­g. It is a story full of surprises, unexpected results that challenge convention­al wisdom. At one level, the narrative is one of paradoxes: potentiall­y rich but

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