Wednesday, December 9, 2015

HOW TO MAKE BENGAL RICH

FROM THE TELEGRAPH OF 31 DECEMBER 2005


Looking around and looking forward


Non-Bengali and non-communist intellectuals long ago wrote off Bengal. The conventional wisdom is that the communists came to power and scared off capitalists. The aggressive bad manners of their trade unions made life in West Bengal unpleasant, and not only for employers. Once industry and services moved away south and west, the distance was too great for them to come back to West Bengal.
The communists have come to the same conclusion. The chief minister of West Bengal tirelessly courts capitalists, tries to sell the virtues of the state, and offers them favours such as prize land. Jyoti Basu had also started doing this in his old age; but then he used to spoil it by saying that the communists had no other choice since they lived in a capitalist country. Buddhadev apparently recognizes that old-style communism plays havoc with human initiative and creativity, and that communism has to change if it is to compete with capitalism. West Bengal is not only located in a capitalist country, but it has to compete for investment with Gujarat, Maharashtra, Tamil Nadu, Karnataka and Andhra Pradesh. To compete, communists have to do better; and as China has shown, if they are prepared to change, they can beat anybody. Umbrage, for long the hallmark of Indian communists, is being contaminated with ambition and envy. The resulting ferment holds promise; it may lead the communists to ask the question: what can West Bengal do differently?
What it should first do is to look around. India’s successful capitalist states are too far away from West Bengal; it should ask itself how it can find synergy in growth from its surroundings. Bangladesh may be poor; but it is much larger than West Bengal in terms of population and total income. It has insatiable hunger for goods from India; and most of them pass through Petrapole. Unfortunately, the facilities in Petrapole are execrable; and they are made even worse by two wings of the Indian government, customs and BSF. West Bengal should invest in the infrastructure around Petrapole – widen roads, set up truck parks, construct overnight facilities, plant trees and make the place more hospitable. More important, it should attack the corruption and dilatoriness of customs and BSF. It should set up pickets of aggressive party members to ensure that the two forces do not collect bribes or obstruct traffic. Now that the CPM is a partner of the central government, it should pressure the latter to discipline customs and BSF, which are both under central command.
West Bengal should not only maximize trade with Bangladesh and thereby gain all the transit services, but it should also capture as much of the trade as possible. It should satisfy Bangladesh’s hunger for Indian goods. India is Bangladesh’s principal supplier of yarn for its textile industry. There is no reason why this yarn should come from far-away Gujarat and Punjab. It is perfectly possible to set up spinning mills in West Bengal. And if mills are set up, cotton will come to be produced in the neighbourhood – in Bihar, Orissa and UP.
Conversely, West Bengal should buy everything it needs from Bangladesh – hilsa, jute, rice – whatever it finds cheaper. It should make Bangladesh as dependent on itself as possible. For it needs the leverage the interdependence would provide.
Interdependence is necessary to change the self-destructive political system of Bangladesh. Having qualified as a least developed country, Bangladesh has received enormous foreign aid. All that foreign aid ends up with NGOs run by wives of civil servants and politicians. Bangladesh also had privileged access to the textile markets of rich countries till the end of 2004. It provided a home to the Taiwanese and the Koreans to set up textile mills and garment factories, and to jump the trade barriers of rich countries. These rackets made it independent of India, so its elite could cock a snook at India. This was the economic basis of anti-Indianism in Bangladesh; it must be destroyed if Bangladesh is to develop natural, healthy, friendly relations with India. And one key to such a relationship is trade – the more the better.
The other key is people. Other Indians may treat West Bengal as a poor cousin; but Bangladeshis love it. They like to come to Calcutta for treatment; they enjoy themselves in its dens of vice. But above all, they come to work in West Bengal. Arun Shourie may be a manic depressive Muslim-hater, but he is right – there has been massive migration from Bangladesh into the neighbouring states of India, including West Bengal. It is beyond the capacity of the great Indian government, let alone West Bengal, to stop it. Bangladesh is terribly crowded, and its people have nowhere to go except to India and into the sea – and they prefer India. It is in West Bengal’s interest that they should pass on into the rest of India. Now that its leaders have leverage on Delhi, they should use it to legitimize immigration from Bangladesh, and to back it up with a proper work visa system. It would also thereby stop the hooligans of the BJP and Shiv Sena from branding Muslims in urban areas as Bangladeshis and hounding them.
Growth of trade and economic relations with Bangladesh could keep up growth in West Bengal for years, if not decades. If it continues, it will at some point give West Bengal leverage for the next step: to make Bangladesh allow transit for goods and people traveling to north-eastern India and Burma. Bangladesh has been avoiding this issue by asking for transit to Pakistan; and there is no reason to deny it. Delhi’s paranoia and cussedness have led to an impasse on this question. West Bengal should use its considerable influence in Delhi to overcome its inertia and open the doors. That would allow West Bengal to extend its economic relations with a vast region that was once its hinterland and which was cut off from it by partition.
Finally, Bengalis love holidays, and for holiday they go everywhere except to their own state. A quarter of a million Indians went up to Kashmir last summer; the bulk of these intrepid fools were Bengalis or Gujaratis. There was a time, before I was put off by the processions, slogan-shouting and the general bad temper of Calcutta, when I used to go quite often to West Bengal; and what I remember is, how beautiful its landscape can be. That was before I went to Kerala, which too stunned me with its picturesque hills and valleys. Those were the days of militancy in Kerala as well; I was hounded out and left before long. But then I went back recently and was surprised by the transformation. Now Kerala has beautiful hotels, and Malayali staff are perfectly hospitable and helpful. They have given up lungis and started wearing trousers; and horror of horrors, their daughters have started wearing Punjabi dresses.
Maybe Bengalis should try their hand at shocking others. They should turn their charm on, and make foreigners feel at home. They should clean up their numerous waterbodies and build airconditioned huts around them. They should surpass the Britons and the Japanese and become the world’s best gardeners. They will then stop living in high dudgeon. They will make their country proud, and enjoy the pleasure of being admired. That is when Bengal will become Sonar Bangla.