{"id":6299,"date":"2018-04-26T10:21:39","date_gmt":"2018-04-26T04:51:39","guid":{"rendered":"http:\/\/calamur.org\/gargi\/?p=6299"},"modified":"2018-04-26T10:21:39","modified_gmt":"2018-04-26T04:51:39","slug":"cnbc-network-18-column-the-problem-with-the-north-south-debate","status":"publish","type":"post","link":"https:\/\/calamur.org\/gargi\/2018\/04\/26\/cnbc-network-18-column-the-problem-with-the-north-south-debate\/","title":{"rendered":"CNBC Network 18 Column : The problem with the North South Debate"},"content":{"rendered":"

I write for CNBC-TV18<\/strong><\/a> on the issues surrounding the 15th finance commission, and argue that the North really needs more funds, not less<\/p>\n

Do a quick Google search for the term\u00a0\u201cNorth-South\u201d divide<\/strong><\/a>, and you will find that India is not the only one where there is a clear income and development gap between the two.<\/p>\n

In some economies and nations, such as the United States and Italy, the North is more prosperous than the South. There are countries like the United Kingdom, and\u00a0Nigeria<\/strong><\/a>, where the South is more prosperous than the North. In\u00a0China, it is a East-West divide<\/strong><\/a>\u00a0\u2013 the western coastal parts are more prosperous than the inland provinces. There are a variety of reasons for this.<\/p>\n

Some are geographic \u2013 one part was more adept at exploiting natural resources, including fertile land. The other more adept at industry. \u00a0But it exists. And, coupled with an economic divide, there is often cultural and historical differences \u2013 all of which make for a complex mix in the 21st<\/sup>\u00a0century.<\/p>\n

 <\/p>\n

The Gap Is Showing<\/strong><\/p>\n

In India too, the North-South divide is pronounced \u2013 in terms of culture, language, cuisine, and development. In the years post-independence, right up to liberalisation, it was neither uncommon, nor anti-national, to read columns on a united south as a utopian entity \u2013 separate but equal to the North. \u00a0In the post liberalisation years, that murmur all but subsided.<\/p>\n

But, in the last year or so, the chatter on this issue is back in full force. And, at the core of it is the terms of reference of the 15th<\/sup>\u00a0Finance Commission\u2019s decision to use the 2011 census instead of the 1971 census for distributing tax revenues among the states. And, the Finance Commission has a point.\u00a0 In 1971,\u00a0the population of India<\/strong><\/a>\u00a0was around 548 million. By 2011, the figure had more than doubled and touched 1.21 billion people.\u00a0 If we look at the central budget being allocated on a per basis , it is more prudent to go with the 2011 figure than the 1971 figure\u00a0(see below)<\/strong>.<\/p>\n

\"\"<\/p>\n

Need More Attention and Allocation<\/strong><\/p>\n

 <\/p>\n

On the other hand, the southern states believe they are being penalised for following policies that have reduced population, increased per capita income, and brought development. And, these are valid concerns that need to be addressed, but not at the cost of depriving the people of Uttar Pradesh and Bihar the allocation of funds.<\/p>\n

However, this demographic divide is something that this and future central and state governments will need to be cognisant about, in the years to come. And, the core is the fact that the people in Uttar Pradesh and Bihar a – 25% of Indian population \u00a0–\u00a0are living on approximately Rs120 and Rs 86 per day<\/strong><\/a>respectively\u00a0(see below)<\/strong>.<\/p>\n

\"\"Source: Government data<\/p>\n

While this may seem like a threatening gap, it is also an opportunity. As the world slows down, and India gears up to be hit by this slowdown, the government of India needs to make lifting people in Uttar Pradesh and Bihar out of poverty. A threefold time jump in the living income of the poorest in India is going to be beneficial for India as a whole. What Uttar Pradesh and Bihar need is not less funds, but more. To jump-start industry, to revitalise agriculture, to create new business, to generate employment.<\/p>\n

To \u00a0achieve this the states need to focus on two things. One is population control, and a lesson is to be learned from how\u00a0Bangladesh used door to door contraceptive delivery<\/strong><\/a>, to empower women with contraception. The second is sectoral growth in key areas. The government needs to look at the states as key industry zones and develop them in tandem with rolling out a massive skilling programme.<\/p>\n

It isn\u2019t that the talent doesn\u2019t exist. What is lacking is a 360-degree policy from the state governments that is focused on one and only one goal \u2013 how do you raise the per day income of the state three-fold in the next ten years. Whether chief ministers Adityanath and Nitish Kumar are up to the challenge is yet to be seen.<\/p>\n

Harini Calamur (@calamur)\u00a0works at the intersection of digital content, technology, and audiences.<\/em><\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

I write for CNBC-TV18 on the issues surrounding the 15th finance commission, and argue that the North really needs more funds, not less Do a quick Google search for the term\u00a0\u201cNorth-South\u201d divide, and you will find that India is not the only…<\/p>\n","protected":false},"author":0,"featured_media":36991,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[10,15,23],"tags":[515,755,1169,1272],"class_list":["post-6299","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles-in-msm","category-economics","category-india","tag-economics","tag-india","tag-north-south-debate","tag-political-economy"],"yoast_head":"\nCNBC Network 18 Column : The problem with the North South Debate - 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