of a class which had vested interest in securing regional market, which could trigger capitalist transformation, both in agriculture as well as in industry. It is not an accident that due to absence of industrial class interest, the policy of 'freight equalisation' in coal and iron ore was allowed, inspite of a powerful Chief Minister like Srikrishna Sinha, immediately after independence. This spelled doom for the industry in Bihar, inspite of the natural advantage of mineral resources in the Jharkhand area. Like industry, the agricultural resurgence was also fettered in the last one decade in Bihar. Even though Bihar has reversed its position from food 'deficit' to food 'surplus' in the last eight years, the development of agro-capitalism got severe setbacks, due to the 'pricing' and 'procurement' policy of the Central Government. Like 'freight equalisation', the agricultural policies of Government of India, favouring few states, indicated lack of clout or hegemony of Bihari ruling elites. Unfortunately, this policy of anti-Bihar agro-capitalism was allowed to be pursued by the Central Government, inspite of political stability in the last one decade. In the absence of full capitalist growth of agriculture in plain or industry in plateau, inspite of favourable objective conditions, united Bihar could never experience economic integration within the state. Thus when Bihar was truncated and Jharkhand was carved out, there was no economic tremor. They fell apart as if they were never together. Essentially, Jharkhand subsidized the Indian industrialization and Bihar provided the captive market for those industrial goods.

Unlike political developments in the mainland Bihar, the tribals never allowed their identity to be obliterated. After the independence, their struggle for a separate state had a traumatic experience. After reaching its pinnacle in the sixties, it started to taper off. Some of its foremost leaders got into the quagmire of power politics, loosing its quintessential identity. In the process of their cooption in the national polity, the preeminence of the tribal cause or the stature of the individual leaders got relegated. Nothing could be more suicidal than this unwarranted collaboration. In the process, the tribal movement got severe setbacks. By the time BJP got involved in the movement, the pan-tribal identity had already been fractured. The dream of mega tribal state, consisting territories from Orissa, West Bengal, Madhya Pradesh and Bihar had already gone sour. Thus, when Jharkhand was finally carved out as a separate entity, it was socially least prepared to undertake the responsibility. Even the middle class outside the tribal rank, who were earlier used to be referred as 'Dikkus' but later became the most important votary for a separate state since eighties, were also equally unprepared for this geographical bonanza. Infact, in recent years, this segment had stolen the thunder of the tribals for separate state. With the political marginalisation of this segment in the mainstream Bihar, they wanted an alternative platform for the state patronage. This could be possible only through creation of Jharkhand, because the tribals tragically were increasingly becoming strangers in their own home land. After having substantial presence through the centuries, their numbers have dwindled to only 27 percent in Jharkhand as per the 2001 Census. If this trend continues, the history of the Red Indians will be repeated here also. In India, tribals were not physically exterminated as was done in the Latin or North American countries. However, the policies in the realm of social or political or economic arena were so tailored, that the tribals experienced continued demographic decline. It is a well known fact that many of the tribals like Sohria Paharia are on the point of extinction. The agenda for the formation of Jharkhand state for the tribal as well as the non-tribal thus converged; but the purpose for the formation was differed for the two segments. Every national or subnational movement is generally multi-class or caste or ethnic, their togetherness based on some consensus. When India got independence, the documents of the Planning Committee of the Congress Party chaired by Subhash Chandra Bose or the Bombay Plan by the Bombay Group of Industrialist or People's Plan by radical communists led by M. N. Roy were Magna Carta of our development strategy. Even though Gandhi was ignored, his thought formed the backdrop in any discussion on the development strategy. In case of Jharkhand, not only there was an absence of consensus, infact even an understanding about the development issues was practically missing. This indicated the limitations of class formation both within the tribals as well as non-tribals. Over and above, Bihar had developed some sort of developmental amnesia in the last one decade.

Other than in the Hindi Heartland, there had never been absence of vision for development, either at national or at the state level. Most of the regional and subnational formations displayed vision of development. Even some of the princely states didn't lag behind. The reorganization of the states in India, initiated in the fifties, was the result of massive regional movements. Infact, most of the regional movements were by-product of national freedom movement, where two levels of nationalism operated simultaneously - national and sub-national. These two nationalisms were not at all in contradiction with each other - a Tamil or Telegu or Marathi or Bengali, inspite of strong subnational identity, was equally committed to Indian nationalism. This subnationalism got further financial sustenance with the clamor to reserve the regional market for the provincial entrepreneur. They were not only the beneficiaries of the regional capitalist transformation, but they were also ideologues of the development strategy. While the Swadheshi Movement in Bengal in the early part of the twentieth century created an ideological ferment for indigenous enterprise and industry in India, the anti-Brahmin movement in former presidencies of Madras and Bombay triggered several industrial ventures. The Sugar Cooperatives in Maharastra, which have emerged as the most important financial power centres, were direct result of this movement. The transformation of the Kammas/Reddys in the coastal belt of Andhra, from agro-capitalism to tobacco, film and knowledge-entrepreneur is part of the developmental folklore of India. Thus in most of the subnational formation, the developmental vision was subsumed with class predilection. In Jharkhand, there was an absence of both 'vision' as well as 'class', which could lead it to developmental 'Eldorado' at the time of its formation.

The establishment of Jharkhand a year ago was essentially due to the prevailing politics in the state, arising out of the assembly election of 2000. On the other hand, the politics that is unfolding in Jharkhand now is a result of the vivisection of the state. In Bihar, politics determined the geographical divide; on the contrary, geography is now determining the politics in Jharkhand. In economics, for supply to create its own demand, the products have to be extremely appealing. When the new state was supplied to the polity of Jharkhand a year back, its response was overwhelming because Jharkhand had all the appeal of a irresistible product, specially with the 40 percent of the mineral resources of the country and a sound base for developing human resources, with numerous institutions located within its jurisdiction. But soon the social forces that could catapult Jharkhand to high track of development started faultering and is still groping in the dark in the absence of proper strategy. For any strategy of Jharkhand, the history of the struggle of its people cannot be ignored. For any authentic strategy which can see light of the day, the native wisdom of the society should be internalized, then attempt should be made to modernized it. Then only value can be added to the native wisdom. If the traditional steel smelting can ensure good quality product and be cost effective, it could be adopted as an appropriate technology avoiding massive steel plants. But in case of Bihar, the success of contemporary strategy depends on the developmental vision that it could unfold. Bihar's tryst with history will not provide developmental insight. Again in the case of Bihar and Jharkhand, in dealing with its two principal products, foodgrain and mineral resources, which are the fundamental base of development strategy, it will need two contrasting strategy. In case of foodgrain, its disposal and utilization will need immediate strategy. Already there is glut in the food grain production. In the absence of a proper marketing and storage strategy, the new green revolution in Bihar will go totally waste. In contrast, the exploitation of mineral resources will need a visionary effort. Otherwise states with lesser ferrous content in iron ore will continue to export, while better quality mineral of Jharkhand will remain unsold. While Bihar failed to develop its economic linkages with Calcutta at its own peril, Jharkhand cannot afford to do so. Calcutta port, for landlocked states like Bihar and Jharkhand, is a gateway to the world of sea route. Without development of Calcutta metropolitan center, the states in its economic catchment area cannot develop. Shatabdi Express from Ranchi and Patna is a belated step towards economic integration with eastern metropolitan center. Bihar and Jharkhand should now give up its political acrimony and work for an economic union. In case this arrangement works out, this union should be extended to all the eastern states. While Jharkhand has announced its Industrial and Tax policies, Bihar is still working out its broad contour. Let there be compatibility rather than competition in this field. There cannot be more lethal combination than the coal and iron of plateau and the foodgrains of plains. A visionary social fabricator with a development mission can economically unite the two states, with the toil and tear of the subaltern with the coal and iron sutured with foodgrains.

The decision to create smaller states is always welcome. Even after the division of the Hindi Heartland states, their sizes are still very massive. The creation of Uttarakhand from Uttar Pradesh appears to be small speck from a giant state. In case of Jharkhand, in terms of area it is bigger than Bihar. Even then both are very big states. Madhya Pradesh even after the creation of Chattisgarh appears to be uncharted. Smaller states are always good from the point of manageability and logistics. Laloo Prasad may not be remembering all the names of the District Magistrates of the former united Bihar. On the other hand, Babulal Marandi may not have that difficulty now with less number of districts. Even the visits and travels become easier for government functionaries, who would like frequent inspections. In the smaller states, it is expected that the composition of the government is also more representative. In India, new states which were created before independence did not display high growth track. The states which were created from the Bengal Presidency like Bihar, Orissa or Assam remained economically stunted, whereas states created from the former Madras and Bombay Presidencies, like Andhra Pradesh or Gujrat, has not only developed significantly, but it is also a must destination for most investors or industrialist.

In the wake of the policy of downsizing, the professed policy of the central government, one has also to reflect how economically prudent it is to establish new states. This is specially so, when the states are not provided with separate financial support for this venture from the centre. With the financial deficits reaching alarming stage and with increasing global uncertainty, the centre cannot be saddled with further financial burden. At the same time, the financial conditions of the states are precarious. The financial condition of Jharkhand appears to be better now, because the full burden of the salary bill has not yet fallen on it. On the other hand, the track record of the tax collection is not better now. Over and above, the need for massive asset creation, like building a new capital, will further increase the financial burden of the state. Thus the financial solvency of Jharkhand may appear to be a mirage.

The developmental strategy now will need new grammar of economics. In the ideological foundation as enshrined in the freedom movement and the development strategy as enumerated in the post-independent India, the role of the state was envisaged as preeminent. Now that policy is being abandoned. With the globalisation and the overriding writ of WTO, the market will play more important role. With the lowering of tariffs across the board, the protected industry is crying for level playing field. Any development strategy, that too for a nascent state, will need a lot of imagination and boldness. In India, any development strategy will have to compete with democratic populism. The task here thus becomes much more challenging.

When the state was supposed to act as commanding height of the economy, the government recruitment center, like Public Service Commission, can make and break electoral fortune of a party in power. So it was not an accident that the person on the saddle of those organizations will be either from the caste of the Chief Minister or his or her trusted aid. This policy was more or less followed from the first Chief Minister of Bihar, Srikrishna Sinha to the present Chief Minister. This policy did help in recruitment of a large number of persons from the respective caste in the government employment structure. This also ensured empowerment. This gave identity to those who came from the most deprived social segment. But with the increasing role of the market and the reduced role of the government, the foot soldiers of the state will soon find themselves redundant. When Kamraj Nadar became Chief Minister of Tamilnadu in early fifties, he exhorted his fellow Nadar castemen, basically toddy tappers, to go for entrepreneurship, instead of government employment, even in the rain shadow district of Shivkasi, from where he came. He then solicited help of Japanese experts for identifying suitable entrepreneurial venture in the district and they suggested setting up of Cracker and Matchbox factories, apart from Printing Press. The experts felt that Shivkasi with only ten days' rainfall will be ideal for any industry which would like to avoid moisture. Within few years, that backward district emerged as a flourishing center of Nadar entrepreneurship, one of the most backward and marginal castes of Tamilnadu. If Srkrishna Sinha or Laloo Prasad had replicated this role in Bihar, then this state would have been in the different trajectory of development. Where Srikrishna Sinha failed, let us hope that Babulal Marandi will succeed. After all, in the business of market, it is the addition of value and generation of revenue that are standard indices of success. This role can only be played by an entrepreneur. In future, with the possibility of the knowledge based economy playing decisive role, a backward society can skip certain stages. After all, China has shown how the market can play a role, even without dismantling its Communist structure. It will not be out of place to quote Comrade Deng, the architect of the post Maoist China, 'to be rich is glorious - it little matters whether cat is black or white, till it catches mice'.

Dr. Shaibal Gupta*
Member Secretary,
Asian Development Research Institute (ADRI)
Patna
E-mail : shaibalgupta@yahoo.co.uk