Tuesday, August 07, 2018

Why is Bengal poor when Kerala is affluent?

"If you draw an imaginary line through India's middle, most of the high-affluence districts will lie to the left of that line, while most of the poor districts will lie to the right of that line," wrote T Kundu and P Bhattacharya. Data come from "the National Family Health Survey (NFHS) which surveyed more than 600,000 households in 2015-16". "Households having at least six of the following eight assets or amenities -- pucca house, electricity connection, phone (landline/mobile), television, AC/cooler, refrigerator, washing machine, and motorized vehicle (car/motorcycle/tractor/truck) -- have been classified as affluent. Households having at most one of these assets have been classified as poor. The rest have been classified as middle-income households." Which means that any household having electricity connection, a phone and a refrigerator, which every citizen should have, is considered middle-income. "The east remains an area of darkness, with a high share of poor households." Kerala with the highest literacy rate in India is justifiably rich but Haryana and Punjab are richer than West Bengal with a lower literacy ratio. On the other hand, Delhi and Kerala, two of the most affluent states, come one and two in rates of crimes. Communism has flourished in only two major states in India, Kerala and West Bengal. While the Left Front led by the communists was thrown out in Bengal in 2011, a communist government is still in power in Kerala. However, Kerala is one of the richest states while Bengal is one of the poorest. The reason is that successive governments in Bengal have resorted to a mix of populism, which has raised its debt to very high levels, and extreme violence, where reprisal killings have become commonplace. Naturally, jobs are scarce as few would like to invest in a state with so much violence. Extortion has thus become the most profitable business in the state as goons belonging to political parties control commodities, especially in real estate. Builders are forced to buy low quality materials for construction from 'syndicates' at high prices. Recent panchayat elections saw extreme violence because Bengal follows the 1973 Panchayat Act whereas the rest of India follows the 73rd Amendment of 1992. This means that all subsidies are routed through panchayats which give them enormous power and the ability to divert funds for personal enrichment. A local BJP leader said, "I am a very bad person. Good people don't win elections." Chief Minister Mamata Banerjee is unhappy with the suggestions of police reforms by the Supreme Court. She is not the only one. Police are under control of state governments allowing politicians to get away with crimes. Kerala is affluent with a high crime rate but Bengal is poor. Strange.

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