Rajiv Gandhi Foundation Study Report

Gujarat The State No.1
From Our Correspondent

While detractors of BJP, and more so of its dynamic Chief Minister Shri Narendra Modi were busy just in raising the bogey of so-called 'communalism', Shri Modi has been concentrating on ushering in overall development of the State with good governance. This fact has been acknowledged by many leading agencies in India and abroad to the discomfiture of his critics. Recently, the Gujarat Government received accolades from a quarter unexpected -- the Rajeev Gandhi Foundation which happens to be presided over by none other than Smt Sonia Gandhi. The Foundation has adjudged the Gujarat Government headed by Shri Narendra Modi as the Number one state in economic freedom index.

A study carried out by the Rajeev Gandhi Institute for Contemporary Studies on "Economic Freedom for States of India" has arrived at this conclusion after analysing "economic freedom" available in various States of the country.

Defining economic freedom as "absence of government coercion or constraint in the production, distribution or consumption of goods and services beyond the extent necessary for citizen to protect and maintain liberty by itself" the study has praised Gujarat as it grades state governments on its political decision-making the extent to which justice is served, levels of corruption and the extent of regulation in the labour market.

The study clearly underlines the fact that in terms of size of government, security of property rights and regulation of credit Gujarat is way ahead of other states and it maintains a good rank in almost all categories. Gujarat holds the first position in keeping the size of the Government, ministers and bureaucrats included, in control. Here the Government does not play the role of a subsidizer but that of a facilitator. Power subsidies are among the lowest in the country.

The study projects "safety of life as an essential component of economic freedom. Gujarat, Andhra Pradesh, Tamil Nadu, Haryana, and Madhya Pradesh have a very small share of the total crimes being accounted for by violent crimes. This share is much higher in Jammu and Kashmir, Uttar Pradesh, Jharkhand, Bihar, and Assam, where rape, murder, kidnapping, abduction, riots, arson and dowry deaths are more rampant.

It further says that in BJP ruled states like Gujarat, Chhattisgarh, Rajasthan, Madhya Pradesh, a large share of the cases that are taken up by the police complete investigation is ensured, unlike in West Bengal. Punjab, Bihar, and Assam.

Commenting on labour market in Gujarat, the Study explains, "In Gujarat, least number of workdays are lost as a result of strikes and lockout as a ratio of total industrial worker."

Gujarat liberal licence regime has also been received well by the Study. "Constrains on trade imposed market and licence fees were also included in economic freedom. Corruption is also seen to be relatively low in Gujarat." The Study adds, corruption is measured in terms of cases pending investigation as a ratio of total cases registered under Prevention of Corruption and related acts. In Gujarat, Andhra Pradesh, Maharashtra, a smaller share of the total cases registered are pending investigation. The situation, however, is bleak in West Bengal, Jammu and Kashmir, Himachal Pradesh and Bihar."