More money after bad...

As Omar Abdullah tries to make his first moves as the new Chief Minister of Jammu and Kashmir, change appears to be in the air. A young, articulate leader with some pragmatism and a dash of idealism is perhaps what J&K needs. He is trying to woo major businesses to invest in the state and he is making the right noises about corruption. But, there are disturbing signs that Omar may turn out to be not much different than his predecessors.

J&K does not need quick fixes; in fact, I am pretty sure there are no quick fixes to the state's sad legacy of misgovernance, corruption, politics of patronage, government overreach, stifling of private enterprise, and a population excessively dependent on the government. This is clearly not an exhaustive list. The problems in J&K are many more and there just aren't enough good people to help solve the problems of the state. To reverse the problems that have accumulated over decades will not be solved overnight. That just won't happen and the Chief Minister needs to first understand it himself and then explain that to the people in the state. It is a mindset thing; the people in J&K need to rethink things, change their approach to development, and settle in for a series of reforms that takes years if not decades to accomplish.

But, as I mentioned earlier, the signs aren't that good. I just came across some news items about how there is a proposal to build a cable car over the Dal Lake, Then I heard that the Chief Minister was doing the rounds in Delhi to seek funding for new colleges and that his finance minister is planning to seek more funds from the central government (J&K gets most of its funding from Delhi) after inheriting a deficit of Rs. 13,772 crores ($2.75 billion equivalent) from the previous government. In addition, there are more demands by state employees to increase their salaries by Rs. 1,380 crores ($275 million) per year. What the state's employees have accomplished in the last 4-5 decades is still not clear but we do know that most people would call the government machinery corrupt, inefficient, and a drain on the state's resources that are derived from the poor Indian taxpayer.

My first piece of advice to the new government and those in Delhi is to stop wasting money in J&K. For example, why does the state government have departments for floriculture, horticulture, handicrafts, fisheries, and so many other useless offices? Are they doing some groundbreaking research that we can't live without? Why does the government operate hotels and tourist huts? Where is the report on the profitability of the Gulmarg Gondola project? When resources are tight, tough choices must be made. But, when the Indian taxpayer keeps supplying money without asking for any accountability, it is no surprise that there is so much waste and corruption in J&K.

Take a hard look at what is needed in the short, medium, and long-term and chalk out a plan which has input from international experts on a range of issues including reducing the size of government, improving the climate for private enterprise and investment, reviewing the state's infrastructure needs, putting together a comprehensive strategy for improving health and education indicators, and improving tax policies and administration and other key issues. Real change requires a radical departure from old, discredited ideas and practices. In places like J&K, real change won't be easy. But, it is possible...with the right approach.

Until next time...