Corner Pub Friday evening; it had been a usual place
for us to meet and unload the weekly updates. Not only did we rant about our
heavy coursework, but also we shared our thoughts and insights on the future
prospects of our region. It was a group of enthusiasts encompassing cross
disciplines at Vanderbilt, yet we had one thing in common-hope for the economic
prosperity in South Asia. Abhishek, Saad, Shafiq, Hemant, Yasser and I barely
missed such opportunity. Our more than one and half billions that has the potential
for largest demographic dividends in the
world, vast reserves of natural resources, rich ancient culture flourishing for
millennia, would provide us hope for the bright future of our region. On the
flip side, the current political situation would darken our optimism. Political
instabilities, massive corruption, inefficiencies, discriminations, and you name
it, would make the regional picture so bleak and disappointing. Despite all
these, we were yet hopeful. With every sip of Blue Moon, our vision would
become clearer; the intense discussion would continue past mid-night.
While I was sharing Abhishek my last blog entry,
‘Economic Development, the Nepali Way,’ he suggested I also address ‘Economic
Development, the Bihari Way’. Bihar, once the epicenter of eastern philosophy
and science, was mired with corruption, extreme political rent seeking and
leakages. It gained notoriety not only in India due to its backwardness and massive
inefficiencies of resource allocation, but also in neighboring Nepal. Lalu’s
more than 15 years of corrupt regime turned Bihar into a ‘jungle raj.’ I still
remember reading in Nepalese news outlets as late as 2005 as well as hearing
elderly people of my community telling stories that one of the reasons for
Nepal being backward was because it bordered with Bihar. Fast forward to 2013,
Bihar has dubbed as the major fastest growing state in India besides Sikkim and
Goa, which are comparatively smaller in size than Bihar. It outperformed every
state including Modi’s miraculous state of Gujarat, Maharashtra and Andhra
Pradesh during the 11th Plan (2007-2012) wits its nominal gross
state domestic product (GSDP) growing at whooping 21.9%(Planning Commission,
India). World Development Indicators report also shows Bihar’s improved
performance in social indicators such as primary enrollment, women empowerment
and reduction in infant and maternal mortality rates. So, what are the
mysteries of Bihari way of economic development?
Bihar closely resembles South Asian economy,
demographics and the political system, which is a multi-party democracy
practiced in all member countries of the region except Bhutan. It is
land-locked yet highly resource endowed with youth dominated population and is
home to one of the richest cultures in the entire sub-continent. The fall of ‘Lalu
Raj’ in 2005 and the rise of Nitish Kumar as the Chief Minister have proven to
be a boon to the people of Bihar. Nitish’s way of economic development can be
explained from standard textbook of Political Economy & the Roles of
Political Institutions in economic growth. As Acemoglu and Robinson explain in
“Why Nations Fail,” strong political institutions are imperative to economic
development. Strong and independent institutions that can act under their own discretions
are key elements in maintaining peace and order in the society. These
institutions can ensure not only personal safety, but also one’s investment. It
creates an aura of business confidence where hardworking entrepreneurs are willing
to take risks for their business ventures that provide both financial and
social returns. It helps enforce business contracts and protects intellectual
property rights, which have multiplier effects in the economy. What Nitish
Kumar has done since coming to the office in 2005 is to maintain law and order
in the society that has boosted the confidence of both public and business
community. His efforts in making state governance transparent through
e-governance have resulted in accountability both from public and the state. He
has invested state resources to close the gender gap in school enrollment. Programs
such as giving bicycles to girls continuing their education at schools have
produced an increased enrollment in schools. Infrastructure investments,
particularly in building roads and highways, power and modernization of
agriculture through improved irrigation, have resulted high returns on
investment. Even tourism has picked up from less than 100K foreign visitors in
2004 to more than 900K in 2012. All these positive economic indicators from
Bihar show that with the visionary leader in office, right mix of policies and
strong institutions in place, fuel the engine of economic growth.
Unfortunately what is happening in Nepal with the
current political leadership both in office and in opposition is just the
opposite of what Nitish has been doing in Bihar. Nepali politicians lack both
social and economic vision on what our society should look like in the next 5
or 10 years. Political bickering for causes that are not worth fighting for and
struggles for power that only fulfill personal interests rather than larger
societal needs have inflicted our society. It doesn’t seem to be cured anytime
soon. I do understand that the ultimate goal of a political party or a leader
is to assume office, but that office should not be used as a way to reap
benefits for personal causes. Politics is an ugly game no matter where you look
in the world, yet there are at least some moral grounds that we all should be
bound to. Missing visions, absence of strong institutions and lack of political
willpower have become impediments of economic development in Nepal despite its
resource endowment and the potential to become a prosperous nation. This is
where the role of youth comes into play to create pressure in building strong
institutions through civic engagement. We cannot close our eyes and ignore the
failed political leadership in our country. We should not only engage in mere
protest or activism, but also participate in healthy political discourse. We,
the Nepali Youths, have a unique opportunity to become a strong driving force
for the economic and social changes in our country. We can make difference in
people’s lives and also do well in our lives should we use our energy and talent
prudently. Let not just focus on personal gain. I am hopeful that our lives will
be better than our parents. Is that all what we are striving for? I think we
can do a lot better than this .LETS MAKE EVERY NEPALI’S LIVE BETTER- JAY NEPAL!
