Political Economy of Development in the Indian State of Nagaland: Issues and Challenges

The state of Nagaland came into existence in 1963, with the union government granting special status to the state under Article 371A of the Indian constitution. These special provisions safeguard the indigenous social and customary practices and economic resources from the interventions and policies of the union government sans state legislature’s concurring resolution on the same. The special status while protecting the aforementioned rights of the Nagas creates a contrasting duality of sorts—in that modern market based democratic and economic institutions coexist with the traditional institutions. This blending of the old and the new often creates contestations and contradictions within the state’s political, social and economic spheres. In understanding these issues besieging Nagaland, neoliberal narratives of development economics and policy prescriptions thereof may be ill-disposed. The present article attempts to unravel the factors arresting economic development in the state by analysing various macroeconomic indicators. It is suggested that at the core lies the conflict between an attempt to establish a modern market-based economy with private ownership and that of a tribal-community based economic rights with customary laws and practices. The imperative role of the state government is emphasised to provide a mechanism for resolving the economic questions and ushering in development while preserving the rights of the indigenous people.