OdishaPlus Bureau
The latest report by the World Bank on Odisha will undoubtedly cheer up the government and the leadership. The bank sees a remarkable turnaround in the last 20 years and the state has performed at par with best-performing States in the country.
The bank in its ‘Odisha Rapid State Diagnostic Report’ has pointed out that the pace of poverty reduction was fastest in the country after 2005. While the State Administration has come a very long way in bringing its finances back on track, it has made substantial improvements in Human Development Indicators (HDI).
Junaid Kamal Ahmad, World Bank’s Country Director for India in his report, has said that Odisha has been a leading reformer in urban and agriculture sectors. This is evident from the number of steps taken in the past few years. Odisha has brought in the necessary urban reforms and investment while making them inclusive. When it comes to sustainable urban services, the state is also the best performer particularly in the area of effective implementation of the AMRUT scheme.
According to the WB report, Odisha stands second in the country as far as bringing in reforms are concerned. The World Bank has said that the average monthly income of agricultural household has nearly doubled in the State. Compound Annual Growth Rate (CAGR) of Odisha was 11.6 percent in 2016-17, and CAGR of India was 8.6 percent during the same fiscal year.
Thus, any criticism of agriculture being neglected by the state falls flat in the backdrop of this report. While lauding the state for its overall performance, the Bank has pointed out the risks and challenges that lie ahead. According to the report, the State’s economy is concentrated in primary sectors which are vulnerable to external shocks. The State is continuously facing them and the economy is battered every time there is a cyclone, storm, drought or flood hits the State. High exposure to disaster risk poses a massive problem for the State, says the report.
It is common knowledge that in Odisha agriculture and allied activities have been facing the wrath of nature and consequently there are variations in steady growth. The report has pointed out that more than half of the workforce of the State is still dependent on agriculture. However, what is worrisome is a growing deficit of jobs and particularly for women. Also, poverty remains high and concentrated amongst a few places and groups and HDI needs improvement. The report points out that social protection and human capital investments are fragmented and have limited coverage.
In this scenario, the World Bank’s recommendations are meaningful. It has advised taking the state to the next level for which expediting economic transformation is necessary along with strengthening the capabilities to eliminate poverty. It has also suggested going for more investment in human capital.
The Government needs to forge ahead towards a sustainable and resilient future. The unfinished reforms have to be taken their logical conclusion. It has also advised buttressing the resilience to natural disasters. The report offers Naveen and his team enough reason to cheer about and carry forward the momentum of growth and development.
