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Index

Introduction

Jharkhand State at a Glance

Economy and Infrastructure

Regional desparity in jharkhand

Social Disparity

Expanding Access to Primary and Secondary Education

Income and Property

Resource Transfer from the Centre to the States

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Conclusion

Bibliography

Introduction

A disparity between the standards of living applying within

a nation. It is difficult to quantify the prosperity or poverty

of a region, but there are two basic indicators. The first is

unemployment, which has been used in Britain as a

symptom since the 1920s. Most UK regional policy has

concerned the alleviation of unemployment. The second

indicator is per capita income, which in Britain generally

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falls to the north and west. Other factors indicating

disparity include the type of industry and its growth or

decline, numbers of young people in further education,

housing standards, and the quality of the environment.

Some would assert that economic development brings

about regional inequality

One of the main cause for regionaldisparities in India is

the language. The other being caste, race etc....All parties

have some thing and they act to that time and energy....It

is the people of a region which makes the difference and

hence the disprities will persist unless people of

the region araea developed to become sincere and

hardworker for their prosparity.

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India is a large federal nation and it is well known that

there are widespread disparities in the levels of economic

and of social development between the different regions of

the Indian nation. It is generally recognised that

interregional

economic disparities increase, at least in the initial stages

of national economic development. As a result,

governments everywhere including India used to initiate

deliberate policy measures to reduce these disparities. But

with the reaffirmation of faith in the market mechanism in

the liberalised economic scenario the world over now, there

is a tendency to withdraw such measures under the

implicit assumption that the invisible hand will deliver the

goods in this regard too. India has also witnessed a sea

change in its economic policy in recent years. While there

are some who feel that these changes were initiated in the

early eighties, all agree that there have been very major

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changes in this regard particularly since the early nineties..

From a closed economic set-up having considerable faith in

centralised planning and with commanding heights

reserved for the public sector, India has now become a

highly liberalised and globalised economy with great faith

in the efficacy of the market mechanism. It is hence a

matter of considerable research interest to know the

manner in which inter-regional disparities in the levels of

economic and social development have changed in India

over time in the past two decades. A comparison of Indias

regional development experience over the past two decades

would therefore give at least a broad idea of the impact, if

any, of these changes on the regional aspect of Indias

development.

This is all the more so because economic liberalisation was

brought about in a big way since the 90s in India on the

plea that growth could not trickle down under the earlier

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command and control regime. There was serious concern

then at the fact that some Indian states with large

populations and vast natural and mineral resources were

pockets of poverty. This concern has even greater relevance

to-day because the changes over time in the boundaries

and in the number of states in India have been such as to

make each them more and more linguistically, culturally

and even ethnically homogeneous. On top of it we also have

the phenomenon of regional parties coming up in a big way

the last few years, having a say not only at the concerned

state level but also as members of coalition governments at

the centre. In such a scenario, widespread inter-state

disparities in levels of economic and social development

can have serious economic, social and even political

consequences, this being particularly so if these have

persisted over long periods of time. A detaailed study

examining the nature, extent, possible causes and manner

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of change of inter-state economic and social disparities in

India and drawing broad inferences regarding regional

policy in India would hence be of considerable relevance to

policy-makers and planners in India, particularly since the

period covered by the study includes a decade before the

economic reforms and another afterwards. This is all the

more so because at the time the study was undertaken,

there was a real paucity of studies of this kind. A critical

survey of studies related to Regional Economic

Development in India by Nair (1993a) has clearly shown

the paucity, till 1990, of studies of the type being

attempted here.

Earlier work mainly consisted of examining issues related

to the choice of regions for anlaysis, estimation of

indicators of regional well-being, regional impact studies

and studies testing the validity of growth theories at the

regional level. Barring few exceptions like the study by Nair

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(1982) dealingwith the pre-80 period, these did not link

regional development experience to government policies in

this regard for regional development. The situation has

remained more or less the same since the 90s. There have

of course been a number of meaningful studies about

indicators of regional well being like the ones by

Cassen(2002), Malhotra(1998) and the Planning

Commission (2002). There have also been some attempts to

find out the relationship between economic growth and

poverty at the regional level like the one by Datt and

Ravilion(2002). There were also some efforts at linking

regional development experience to regional policy. One of

these by Nair(1993 b) was a mere exploratory note and that

too concerned with just one stateOrissa. The other was a

much more detailed one by Kurian(2000) and dealt with

the major Indian states, but it focused mostly on the period

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since the 80s. There is no detailed study of inter-state

regional experience in economic and social development in

India examining the nature, extent and possible causes of

disparities, the patterns of regional change and the

interrelationship between economic and social development

at the regional level, linking all this up with changes in

regional policy and covering both the pre and the post-

reform periods.

Jharkhand State at a Glance

Jharkhand is popularly known as Vananchal

(meaning land of woods). The state of Jharkhand was

carved out from the state of Bihar on November 15, 2000.

The date is important as it also marks the birth

anniversary of the legendary Bhagwan Birsa Munda.

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The state capital is Ranchi, which is also the industrial city

of the state. Jharkhand shares its border with the states of

Bihar to the north, Uttar Pradesh and Chhattisgarh to the

west, Orissa to the south, and West Bengal to the east.

The state comprises of eighteen districts of the erstwhile

Bihar- Ranchi, Gumha, Lohardanga, East Singbhum, West

Singbhum, Hazaribagh, Giridih, Kodarma, Chatra,

Dhanbad, Bokaro, Palamau, Garhwa, Dumka, Deoghar,

Godda, Pakure and Sahebgunj. With an area of 74,677 sq

km the new state is bordered by Bihar, MP, Orissa and

West Bengal to its north, west, south and east respectively.

35% of the population of former Bihar is in the Jharkhand

region.

Jharkhand is quite popular for its rich cultural heritage.

Known for its unique folk tradition the state is mostly

inhabited by Proto Austroloid and mixed Dravidian

communities from time immemorial. Since the state has

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not been influenced by any foreign culture, it has

maintained its identity and uniqueness. A glimpse of which

can be got through its festivals and languages. Some of the

famous festivals celebrated with great vigor and

enthusiasm in Jharkhand are Sarhul, Bhagta Parab, Rohin

etc. Languages spoken by the locals of the state

include Korku,Mundari, Kurmali,Santhali,

Bhumij, Ho and Kharia.

Economy and Infrastructure

Jharkhand is one the most industrialized regions of the

country today. The region accounts for 35.5% of the

country's known coal reserves, 90% of its cooking coal

deposits, 40% of its copper, 22% of its iron ore, 90% of its

mica and huge deposits of bauxite, quartz and ceramics. It

is home to the largest steel plant in Bokaro, apart from

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Jamshedpur being practically the city of TISCO and

TELCO. Due to its huge reserves of forests and natural

resources, the future seems bright for this predominantly

poverty ridden region. With total revenue of Rs 3,775

crores, Jharkhand may be able to alleviate its poverty. Its

revenues can now be utilized for its own development and

no longer be diverted to the state's coffers of Bihar as has

been the case. Naturally the biggest loser is Bihar. Bihar

will suddenly find its lifeline of revenues shrunk since 63%

of Bihar's total revenue comes from this region. As far as

infrastructure is concerned Jharkhand is on its way to

rapid progress. Jharkhand is marked with a good network

of roads, railways, airways, telecommunication, power and

water system. The State is well connected by roads, the

length of its National High Way is 1600 Km and State High

Way is 2711 Km.With everything in its favor, Jharkhand is

poised to become the Industrial powerhouse of the country,

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that is, if its leaders set the wheel of development rolling.

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Regional desparity in jharkhand

Tribes of Jharkhand

The Scheduled Castes (SCs), also known as theDalit, and

the Scheduled Tribes (STs) are two groupings of

historically disadvantaged people that are given express

recognition in the Constitution of India. During the period

ofBritish rule in the Indian sub-continent they were known

as the Depressed Classes.

The Scheduled Castes and Scheduled Tribes make up

around 15% and 7.5% respectively of the population

ofIndia, or around 24% altogether, according to the 2001

Census.[1]The proportion of Scheduled Castes and

Scheduled Tribes in the country's population has steadily

risen since independence in 1947.

The Constitution (Scheduled Castes) Order, 1950lists

1,108 castes across 25 states in its First Schedule,[2] while

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the Constitution (Scheduled Tribes) Order, 1950lists

744 tribes across 22 states in its First Schedule.[3]

Since Independence, the Scheduled Castes have benefited

by the "Reservation" policy. This policy was made an

integral part of the Constitution by the efforts of

Dr. Bhimrao Ambedkar, regarded as the father of the

Indian constitution, who participated in Round Table

Conferences and fought for the rights of the Depressed

Classes. The Constitution lays down general principles for

the policy of affirmative action for the SCs and STs.

From the 1850s these communities were loosely referred to

as the "Depressed Classes". The early part of the

20th century saw a flurry of activity in the British Raj to

assess the feasibility of responsible self-government for

India. The Morley-Minto Reforms Report, Montagu

Chelmsford Reforms Report, and the Simon

Commission were some of the initiatives that happened in

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this context. One of the hotly contested issues in the

proposed reforms was the topic of reservation of seats for

the "Depressed" Classes in provincial and central

legislatures.

In 1935 the British passed the Government of India Act

1935, designed to give Indian provinces greater self-rule

and set up a national federal structure. Reservation of

seats for the Depressed Classes was incorporated into the

act, which came into force in 1937. The Act brought the

term "Scheduled Castes" into use, and defined the group as

including "such castes, races or tribes or parts of groups

within castes, races or tribes, which appear to His Majesty

in Council to correspond to the classes of persons formerly

known as the 'Depressed Classes', as His Majesty in

Council may prefer". This discretionary definition was

clarified in The Government of India (Scheduled Castes)

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Order, 1936which contained a list, or Schedule, of castes

throughout the British administered provinces.

After independence, the Constituent Assemblycontinued

the prevailing definition of Scheduled Castes and Tribes,

and gave (via articles 341, 342) the President of India and

Governors of states responsibility to compile a full listing of

castes and tribes, and also the power to edit it later as

required. The actual complete listing of castes and tribes

was made via two orders The Constitution (Scheduled

Castes) Order, 1950and The Constitution (Scheduled Tribes)

Order, 1950respectively.

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Social Disparity

Social disparity in health and nutritional indicators is

equally striking.The nutritional status of children from

Scheduled Caste and Scheduled Tribe (SC/ST) groups

was found to be much worse as compared to socially

advantaged, groups Sixty-one percent of

children from ST groups were underweight, compared

with 38 percent from non-SC/ST/backward groups.105

A recent econometric study carried out in the three

newly created states, Jharkhand, Chhattisgarh

and Uttaranchal, indicates the relevance of socioeconomic

characteristics in health care access.106 The

positive association between education of women

and delivery illustrates the importance of social

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development through education for achieving 100

percent institutional deliveries. More importantly, the

state-specific logistic models for Jharkhand showed

that women belonging to SC, ST or lower economic strata

tend to utilize lesser delivery care. Hence,

the RCH program should address the needs of these

women and create a conducive environment for them

to utilize delivery care.

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Expanding Access to Primary and Secondary Education

As with health, the education scenario in Jharkhand

was in an adversely affected condition at the time of

bifurcation. As per the census (2001) figures, the literacy

rate of the state is the second lowest in the country (after

Bihar) at 54.1 percent against the national average of

65.4 percent. With the male literacy rate at 67.9 percent

and female literacy rate at 39.3 percent, the state has the

second highest gender disparity rate in the country after

Rajasthan. In rural areas, one-third of the men and

twothirds of the women cannot read or write. The literacy

rates of the SC and ST population are as low as 37.6

percent and 40.7 percent respectively.

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Another important feature in the education sector

was the high initial spatial disparity. Literacy rates

also varied across districtswith a low of 30 percent in

Pakur district to a high of 69 percent in East Singhbhum

. The task of improving educational outcomes was thus

complicated by the fact that most children

were first-time learners from households with illiterate

parents. Given the low literacy rates, the average duration

of schooling of an adult (aged above 14 years) as per the

NSS 55th round stood at 4.25 years. The latter, although

somewhat close to the all-India average of 4.5 years

showed high differences across districts.

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It comes out clearly from the discussions in the preceding

section that if the past trends, especially those of the recent

past continued for the next two decades or so

Even in rural areas amenities of modern life and

reasonably efficient civic facilities will be available. Almost

all the children of school-going ages will be attending

schooling. There will be hardly any difference between

boys and girls in school. The gender difference in literacy

will have almost disappeared. Population growth might

have come down below replacement level.

Income and Property

The most common indicator of the economic development

of a society is the per capita annual income generated by it.

The level of poverty or the share of population which do not

have minimum income to meet its basic requirements is an

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indicator of the level of economic development as well as

the inequality in the income distribution.

Resource Transfer from the Centre to the States

There is an in-built imbalance between the expenditure

responsibilities and the revenue sources of the State

governments. The founding fathers of the Indian

Constitution were aware of this fact and ensured a

comprehensive scheme of devolution of Central Tax

revenues through the mechanism of Finance Commissions.

The sharing of Personal Income Tax and Excise duties

collected by the Centre with the States is periodically

reviewed by the Finance Commission appointed every five

years.8 The Commission also decides the principles and

the formula by which the allocable funds are to be

distributed among the States.

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An important aspect of the devolution of Central tax

revenues under Finance Commission dispensation is that it

has an in-built bias in favour of fiscally weak States.

Population and per capita income of the State get high

weight-age in the distribution formula.9 A State with larger

population and lower per capita income gets a higher share

in the Central tax revenues. The gap between revenue

receipts (other than the Central tax revenues) and revenue

expenditure is another parameter, which decides the level

of a States share. As a result the Central tax share

constitutes a major revenue source for the backward

States. While it constitutes about one-third of the total tax

revenues of all the States taken together; it accounts for

more than 50 per cent of the total tax revenues of less

developed States like Bihar and Orissa; but its share is less

than 15 per cent of the total tax revenues of more

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developed States like Gujarat, Haryana, Maharashtra and

Punjab.

A second channel of resources flow from the Centre to the

States is Planning Commission, which provides Central

Assistance for State Plans. The State plans are financed

partly by States own resources and the balance by Central

Assistance. Central assistance is provided as a block

assistance of which 30 per cent is grant and the remaining

70 per cent is a long term loan. The rationale for this

grant-loan proportion is imbedded in the fact that about 30

per cent of the plan expenditure was of revenue nature and

70 per cent was of capital nature when this proportion was

decided in the late Sixties. Since plan expenditure of

revenue nature is not expected to yield any financial

returns for servicing the loan, this share was provided as

grant by the Centre.

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The distribution of Plan assistance to the States has been

governed by Gadgil Formula since the Fourth Five Year

Plan (1969-74). As in the case of Finance Commission

devolution, Gadgil Formula which is administered by the

Planning Commission also has its built in bias in favour of

backward States. Population and per capita income

together account for 85 per cent of the weight in the

formula. The remaining 15 per cent weight-age is equally

divided between State performance in the achievement of

certain priority national objectives and the special

problems of the States. Central assistance constituted

about 45 per cent of the State Plans when all States are

taken together. While the share of Central assistance

constitutes less than 25 per cent of the Plan finances of the

more developed States, it accounted for the major share of

Plan finances of the backward States. Indeed, the Plans of

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the most backward States, especially the Special Category

States, have been fully financed by Central Assistance.

In the wake of the foreign exchange crisis in the early

nineties, the Centre has been encouraging States to seek

and absorb more and more external aid for development

projects. The external aid to the States is routed through

Central budget and devolved as additional Central

Assistance for State plan on the same terms and conditions

as the normal Central assistance to the State Plans. From

the early Nineties, there has been a substantial increase in

aid flows to the States. However, the major share of such

flows have been absorbed by a few developed States. As a

result, during the nineties, there has been an apparent

increase in the Central assistance to the more developed

States. While Gadgil Formula based normal Central

assistance continued to be positively discriminating

towards backward States, additional Central assistance for

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externally aided projects was skewed towards better off

States. Indeed, external aid accounted for 40 to 60 per

cent of Central Plan assistance to some of the developed

States, while such assistance contributed less than 10 per

cent of the Central Plan assistance to most of the backward

States.

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Conclusion

A disparity between the standards of living applying within

a nation. It is difficult to quantify the prosperity or poverty

of a region, but there are two basic indicators.

The implications of these divergent demographic trends on

population density, employment opportunities, social

sector investments and the overall development can be

extremely grave. One of the major objectives of

development planning initiated immediately after

Independence has been, among others, reduction of

regional disparities in social and economic development.

Direct investment by the Central Government and

Centrally directed investment of the private sector have

been two powerful instruments to achieve this objective.

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Bibliography

Books

Shivangan publication, Jharkhand ki Ruprekha, Dr. Ram

Kumar Tiwari, 2010

Shivangan publication, Jharkhand kaun, kya, kahan, Dr.

Md. Shah Nawaz.2010

Website

www.jharnet.in

www.regionaldisparity.nic

http://www.jharnet.in/http://www.regionaldisparity.nic/http://www.regionaldisparity.nic/http://www.jharnet.in/