Published on 11.29.07 @naxaliterage.com/?p=28
The state of Jharkhand was formed out of the southern part of the northeastern state of Bihar in late 2000. Though the economy is based on its plentiful natural resources: minerals and forestry, its progress has been stubbornly slow. *Troubled History* - It has, since its creation, been victim to some 130 *bandhs*. - This is an average of 20 a year, or 2 a month. - Only 30% are called by and enforced by the Naxalites though the tactic evolved and was streamlined by that insurgency. - Political parties are the primary culprits. - Economic collectives and even businessmen protesting the rampant use of the tactic by others have been forced to rely the tactic. *Economic Implications* - The cost of each day of shutdown is estimated at some Rs. 600 million ($15 million). - This puts the total economic damage figure at Rs. 78 billion ($2 billion) for the past seven years. *The Bandh Tax * Given that Jharkhand's annual GDP hovers around Rs. 320 billion ($8 billion), *3.5 *percent of the state's economic potential is lost every year. This is the bandh tax. As previously established, compounding bandhs can result in the collapse of cities. Jharkhand may prove to be a larger scale example of the same phenomenon. [Non-text portions of this message have been removed]
