In economic quagmire

SINCE 1979, Assam has been in turmoil; initially because of the movement against foreigners and later because of militancy. The victims of this unrest are the people of Assam. Already, Assam is behind the all-states average in respect of power supply, irrigation, roads, education and health facilities. There has been stagnation in both the industrial and agricultural sectors. The per capita income in Assam is about half of that of Punjab. Assam is rich in natural resources, endowed with an agriculture-friendly climate and favourable population-land ratio. Migration from outside Assam and the political balance of power have changed the demographic pattern, but it cannot be blamed for the ailing economy. The growth of real per capita State Domestic Product (SDP) in Assam in the last two plan periods was virtually zero as against an all-India growth of real per capita SDP of 5.9 and 15.3, respectively. A stagnant economy coupled with a high growth rate of population has resulted in a severe unemployment problem. The total number of registered unemployed exceeds 15 lakh. It is estimated that another 15 lakh people are unemployed but not registered as such with the employment exchanges. That implies that about 12 per cent of the total population of Assam is unemployed or underemployed. This ratio rises sharply if the  unemployed are considered as a proportion of only the adult population of the State.

Various commissions have been set up to examine which higher level of economic activity in the State may be generated. The AGP Government, after resuming office in 1996, appointed an advisory committee on industry under Dr. Jayanta Madhab, a renowned economist. Despite this galaxy of expert advice, there has been little change in the gloomy economic situation. The village economy remains at a subsistence level, with poor access to the country’s rapidly growing market economy. The oil and tea sectors producing primary goods, generate a vast demand for consumer goods including basic commodities such as fish and eggs. For several reasons, including lack of entrepreneurship, these are bought from outside the State. The net result is an outward flow of wealth. At the same time, the perennial problem of floods affecting over 30 per cent of the agricultural land, the wastage of resources like natural gas and an absence of the willingness for self-employment among young and educated Assamese have further compounded the problem.

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