Ranchi, June 12, 2007: A new World Bank report that says Jharkhand’s phenomenal growth potential can be un-locked by strengthening institutional capacity, improving infrastructural facilities, and providing rural opportunities to the people of the state. The report was launched by the Deputy Chief Minister of Jharkhand, Shri Stephen Marandi in the presence of Mr. Fayez Omar, Senior Manager, World Bank and key officials at a function in Ranchi today. Recommended Policy Options for Reform:
• Improving the Investment Climate to Promote Broad Based Growth
• Improving Access to Quality Infrastructure
• Addressing Issues in the Mining Sector
• Improving Governance and Service Delivery
• Fiscal and Public Expenditure Management
• Strengthening Human Development Strategies |
The Report, Jharkhand: Addressing the Challenges of Inclusive Development, identifies weak institutional capacity, poor infrastructural development and lack of rural opportunities as the binding -constraints to growth and development in Jharkhand. Despite this, the state has shown a decline in poverty by an impressive two percentage points a year between 1994 and 2002, improvement in access to primary education and some key health indicators in the last few years. Challenges ahead include putting its fiscal house in order; addressing administrative constraints and effectively managing the state’s large endowment of forests and mines. Speaking on the occasion, Mr. Fayez Omar, Senior Manager, World Bank, India said, “Jharkhand has an immense potential to tap its mineral and forest wealth in a people and environment friendly manner, and embark upon an accelerated and inclusive growth strategy that ushers in a new development decade for Jharkhand. The World Bank would be happy to partner with the state in this endeavor.” The report weighs on the strengths and weaknesses of an agricultural-based versus a mining-based growth strategy and suggests that the solution for a state like Jharkhand lies in an approach to development that is aimed at reducing risks associated with growth, especially in an economy with high levels of poverty and inequality. The report, through an in-depth analysis of various sectors including health, education, irrigation, power and mining, aims to come up with a development path for the state on the basis of across the board generic reforms as well as sector-specific reforms. Signs of Hope: A Balance-Sheet of
Change in Recent Years
• Poverty has declined by an impressive average of 2 percentage points a year between 1994 and 2002
• An impressive improvement in access to primary education, especially in the 6-14 age-groups
• Equally impressive progress has been made in some key health indicators, especially in the area of child vaccination and prevention of major diseases |
While sharing the contents of the report and the book its lead authors and Senior Economist, Ms. Rajni Khanna, and Mr. Binayak Sen said, “Political commitment at the highest level is needed to make development happen. It is time that the state uses its” new state status” as an opportunity to put the right institutional systems in place for sustained and inclusive development. To achieve this, the first step is to build broad consensus amongst all constituencies.” The report suggests several short to medium term measures to improve the investment climate to promote broad based growth in the state. Improving the quality of infrastructure and addressing issues in the mining sector can help the state to bring in the much required investment from the private sector. This coupled with expanding rural opportunities like access to favorable market arrangements can help the disadvantaged poor in rural areas. Access to rural infrastructure such as irrigation, power, roads and credit and attainment of secondary and post-secondary education can change the entire rural livelihood dynamics in Jharkhand. For more information on the World Bank in India, please visit
www.worldbank.org.in |
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