It
is always useful - indeed essential - to review the economic and social
performance of governments at central and state level periodically.
Several state governments have encouraged this process by promoting
or even commissioning State Development Reports and State Human Development
Reports. West Bengal had one such exercise - an independently prepared
Human Development Report in 2004 - and has now commissioned the second
such report, which is currently under preparation. In addition, it
has commissioned and promoted several other exercises by independent
scholars: District Human Development Reports, evaluations of particular
programmes and patterns of government expenditure, analyses of trends
that can be affected by state policy.
So the Government of West Bengal is clearly interested in getting
some independent and objective assessments of its own performance,
which can become an important way of formulating new policies and
implementing existing policies more effectively.
But how does one interpret a supposedly ''independent'' exercise in
evaluating the performance of West Bengal, released with much publicity
just before general elections, which turns out to have been funded
by the major opposition party in the state? Especially when the authors
and the organisation responsible for bringing it out are quick to
disclaim any responsibility for the contents? The Report, which is
entitled (Transforming West Bengal: Changing the agenda for an agenda
for change'') by Bibek Debroy and Laveesh Bhandari, and brought out
by Indicus Analytics, contains this important disclaimer: ''The information
contained in this document represents the current views of the author(s)
as of the date of publication. This White Paper is for informational
purposes only. The author(s) and Indicus make no warranties, express,
implied or statutory, as to the information in this document.'' (emphasis
added)
Obviously, most of us would not take the contents of such an exercise
too seriously, since is openly partisan and unwilling to accept responsibility
for the information it provides. But insofar as it contains data and
other information that must be taken note of, and also because it
is receiving wide circulation among various interested parties, it
merits some consideration.
The tone of the Report is rather subjective and makes its own biases
and prejudices very clear, even to the extent of using somewhat abusive
language about the Government of West Bengal. But that need not concern
us. What is of more relevance is to consider the main arguments that
are made in the Report. They may be briefly summarised as follows:
West Bengal in recent years has lagged behind in GDP growth compared
to the rest of India. Its performance in terms of poverty reduction
is also worse than most other states. There are significant regional
variations within the state with some districts much more poor and
backward than others. Employment growth has been slower than India
as a whole. Literacy and education figures are worse than most other
states and the Indian average. Health indicators are also not good
and West Bengal is worse than the Indian average for several health
indicators.
This is a long list of failures, and if they were true, taken together
they would form a considerable indictment. But how true are they?
And what other important information does this analysis conceal?
Let us consider first the evidence on growth, and also the implicit
argument that GDP growth is the most critical variable for the well-being
of citizens. Over the 1990s West Bengal was one of the fastest growing
states in India, and actually showed the second highest rate of aggregate
SDP growth among major states, after Karnataka. Even in this decade,
real GDP in West Bengal has grown at an average rate of around 7 per
cent, which is slightly lower than the national average but still
not exactly slow. As a result, in 2007-08, per capita income in West
Bengal was 97 per cent of the all-India average, which makes it very
much a middle-income state.
But the more important question is whether GDP growth is the best
indicator for judging even the economic performance of the state.
At least three other variables are probably even more important from
the point of view of general well-being: per capita consumption, poverty,
employment and the livelihood of farmers who still constitute the
majority of the work force in almost every state in the country.
On these indicators, the state performs rather better than the Indian
average, although obviously that does not mean that the performance
is good in absolute terms, since the entire country has exhibited
a disjunction between rapid GDP growth and indicators of well-being.
In terms of per capita consumption, West Bengal is actually higher
than the national average, and the inequality in consumption is lower,
according to the National Sample Survey of 2004-05. Food consumption
has emerged as a major concern in India, especially in rural areas,
but per capita calorie consumption in rural West Bengal is higher
than for India as a whole, and also higher than for richer states
like Maharashtra.
On poverty reduction, contrary to what is claimed in the ''Report'',
West Bengal has actually performed significantly better than India
as a whole and most other states. It is among only a very few states
in India in which the absolute number of poor people has declined
rather than increased. The official estimates of poverty for 2004-05,
made by the central Planning Commission based on National Sample Survey
data, show that 28.6 per cent of the population of rural West Bengal
were under the poverty line compared to 28.4 per cent for India as
a whole. The proportion of urban poor in West Bengal was 14.8 per
cent compared to 25.7 per cent average for India. Indeed, the reduction
in rural poverty in West Bengal was much more rapid than the national
rate in the 1980s and 1990s, while the rate of urban poverty reduction
has been much more rapid in this decade. So this is one area in which
the state has performed much better than the country as a whole, and
also better than some states that have grown faster in per capita
GDP terms, such as Gujarat and Maharashtra.
Employment growth has been a concern in India as well as in West Bengal.
It has often been perceived that the employment in West Bengal is
much worse than for India in general, largely on the basis of the
perceptions of middle class youth who find it difficult to get gainful
employment in the cities and towns of the state. Certainly the rate
of educated unemployment in West Bengal is higher than in India as
a whole. However, even within the relatively dismal aggregate employment
scenario in the country, West Bengal’s rural employment growth rate
has been slightly higher than for India in the recent past, and there
has been a higher rate of employment diversification out of agriculture.
Even so, agriculture continues to account for more than half of the
work force, and the majority of households in the state (as in the
country) still depend upon cultivation for their basic livelihood.
So it matters greatly what happens to agricultural incomes, and in
this respect West Bengal performs significantly better than most of
the country. Over the past decade agricultural incomes in the state
have grown at an annual rate of 2.7 per cent, which is double the
national rate. This comes after an earlier decade in which agricultural
growth in the state was the most rapid of all states in the country,
at more than 3.5 per cent per annum.
Clearly, therefore, the claims made in the report about slow growth
in West Bengal are at best partial and at worst downright misleading.
Of course, there are other indicators that reflect the condition of
the people, and among these health indicators are probably among the
most significant. It is in this area that, perhaps surprisingly, West
Bengal turns out to have shown the most significant achievements in
the recent past. According to data from the Sample Registration System
of the Registrar-General of India, it is now well advanced in demographic
transition, with very impressive advances in terms of reduction in
fertility rate and even faster declines in urban and rural death rates.
In fact, West Bengal now has the lowest death rate among all the major
States, largely because of sharp falls in the rural death rate. Maternal
mortality rates are not only lower than in India as a whole, but have
declined more rapidly.
One of the most basic health indicators is the infant mortality rate,
which is often seen as the essential gauge of the conditions of basic
health infrastructure. In West Bengal the infant mortality rate fell
from 91 in 1981 to 37 in 2007, a faster reduction than for India as
a whole. Only Kerala and Tamil Nadu show better performance, while
fast-growing states like Gujarat and Andhra Pradesh perform significantly
worse in this regard. Similarly, child immunisation rates in West
Bengal are significantly better than the all-India average, and have
also increased more rapidly than in most other states.
One major area of achievement of the West Bengal has been completely
ignored in this ''Report'', and that is with respect to land reforms.
This is important to underline, since the recent media reports about
the Government of West Bengal have focussed more on land alienation
from the peasantry for purposes of industrialisation, rather than
the continuing land distribution. The point is that land reforms are
not just something that happened in the past, but continue to the
present. Indeed, West Bengal is among very few states in India that
is still continuing the process of enforcing land ceiling and redistributing
land. Till date, more than one-fifth of the land distributed in all
of India is in West Bengal and more than half the beneficiaries in
all of India are from West Bengal. Even in the last three years (that
is, 2005-06 to 2007-08) more than 10,000 acres of land was acquired
and nearly 30,000 acres of land has been distributed to beneficiaries.
In recent years, this is by far the best record of any state in India.
It is obviously possible to point to many areas of lack of achievement
in the state, such as inadequate development of infrastructure, insufficient
extension of good quality education to all, and so on. And all these
must indeed be discussed along with many more issues in any truly
objective assessment of the performance of West Bengal. It is a pity
that the authors of this ''report'' have risked their own reputation
by putting their names not to such an assessment, but to what is apparently
a motivated and misleading political exercise.