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April 5, 2007
Nitish Kumar for Meaningful Centre-State Dialogue on Development

Patna
Bihar Chief Minister Nitish Kumar Thursday called for creation of new institutions for meaningful centre-state dialogue on development issues.

"Centre-State relations need more purposive mechanism," he said while inaugurating a two-day 'mirror conference' here on Bihar's development organised by Stanford University of the US.

Nitish Kumar questioned the functioning of the existing structure for centre-state relations in the context of development.

"I do know that the present structure is unsatisfactory. Many important decisions affecting the states are taken without adequate consultations," he said.

Experts from around the world are participating in the conference whose focus is on development of Bihar.

Nitish Kumar endorsed the views expressed in a paper by T.N. Srinivasan, an internationally reputed economist who is associated with Standford University, for meaningful centre-state relations.

"I share the view that the functioning of the National Development Council has ceased to serve its original purpose. His (Srinivasan) suggestions for converting the Planning Commission into a Development Bank and creating a fiscal council needs wider debate," Nitish Kumar said.

He said Srinivasan has raised many important issues of institutional restructuring in the context of Centre-State relations.

Nitish Kumar said that in the last one year "far-reaching policy changes have taken place in almost every segment of our activity. The governance has improved and a number of important measures towards administrative reforms undertaken".

"Infrastructure has been given high priority as there is a massive road building programme under implementation," he said.

Nitish Kumar said energy reforms are underway and investments in human resource development are a priority. Similar steps were taken in health and agriculture.

He said important laws like the Single Window Act, Infrastructure Act and repeal of the Agriculture Produce Marketing Act have been enacted that are more modern, relevant and congenial to the climate for investment and governance.

"The World Bank and the Asian Development Bank (ADB) are in dialogue with us for a massive development programme loan as well as structural loans for key sector in infrastructure and social services," Nitish Kumar said.

Last year the chief minister had invited Stanford University to hold the conference here.

"The conference will prove immensely beneficial for the process of development in Bihar," said N.K. Singh, state planning board vice-chairman.

Singh, a former member of the Planning Commission, said the conference would also serve as a prelude to the eighth annual conference of Indian Economic Reforms at Stanford in June 2007.

The Stanford Centre for International Development has been fostering a policy dialogue with the Indian government over the years. It started mirror conferences four years ago to involve the state governments in pursuance of new generation policy reforms.

Experts like Srinivasan, Nicholas Hope, Anjini Kochar, Ward Hanson and Jessica Wallack will present papers on Bihar's economic strategy.

Standford University has held similar state-level dialogues in West Bengal, Rajasthan, Karnataka, Maharashtra, Punjab and Kerala. 

IANS | April 5, 2007

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