Development in 3D: density,distance and division

The report says that preferential industrial licensing regulations extended to lagging areas only leads to temporary success. In the beginning a few back ward areas took off but with the withdrawal of policy support they slipped back into the same state. The report calls for providing basic social infrastructure across a country’s landscape while developing few islands of economic prosperity that act as magnets. In addition,it calls for providing connective infrastructure such as rail,roads etc for the migration to be made possible.

Citing the example of Mumbai,the report says that Mumbai’s population has more than doubled since the 1980s from 7.5 million as it served as a centre for economic growth. The report states that “globally as well as nationally people move in order to improve their prospects in life. In India,in the second half of the 1990s ,about 3 million people moved from lagging states of Bihar and Uttar Pradesh to leading states like Maharashtra and Punjab.” A case in point is Tokyo as well,which is the world’s largest city housing a quarter of Japan’s population.

In fact,these islands of economic activity also help to bridge consumption standards across regions. In developed countries consumption in prosperous areas is just about 25 per cent higher than households in lagging areas against 75 per cent higher consumption in prosperous areas of developing countries.

The challenge for governments is to allow unbalanced yet inclusive development,according to the WDR. This can be done by reducing the economic distance between lagging and leading areas through development of better infrastructure and transport facilities. This can be done by supporting migration and not opposing it. The government should intervene to clear slums,provide fiscal incentives to manufacturing in leading areas and allow preferential trade access to poor countries.