By Suresh Kr Pramar
At a workshop on Skills Development a few months ago at Ranchi the Chief Minister Arjun Munda made a strong appeal to business houses to use their CSR budgets to provide the much needed relief for the urban and rural populations, particularly tribals, of the state. Arjun Mundaa stressed on the need for business to use their resources and skills to help eliminate poverty and want and to provide sustainable livelihoods for the people.
The Importance of Holistic Compensation
The Jharkhand Chief Minister said those who were deprived of their land for the establishment of industries and other development projects expect more than just cash compensation for their sacrifice.
Sustainable Employment for Displaced Persons
Displaced persons expect companies to provide them alternative avenues of employment and a means to live a dignified life. It is not enough that the people are employed as peons and guards. He said even these positions were handed out to people brought in from outside the state. Companies, he said, need to adopt a manpower policy which will train the locals in skills required by the company.
Addressing Resentment and Extremism
Arjun Munda highlighted the fact that lack of opportunities was feeding resentment in the people against business and the established law and order authority. This resentment and frustration were providing cannon fodder for extremist groups. Extremist groups were fanning the resentment among the people to swell their ranks and strengthen their policies and programmes.
Long-term Interest of Business in Community Well-being
The Chief Minister pointed out that it was in the long term interest of business to ensure that the people in their operational area are happy and contented. A well-disposed community would ensure that the unit is able to function without undue hindrance.
Exploitation of Natural Resources and Anger of Extremists
He said it was evident that the anger of the extremists was directed towards the exploitation of natural resources of the state by business with almost nil benefit for the people of the state. The Chief Minister expressed the hope that industrial units in the state will tailor their CSR Agenda to create opportunities urgently required by the population.
Challenges Faced by New States Promoting Industrial Development
Arjun Munda raised an issue that is being faced by all the new states which are promoting industrial development in the tribal belts of their states. Conditions are the same in the tribal belts of Orissa, Jharkhand, Chattisgarh, Madhya Pradesh, Maharashtra, and others.
Displacement of Tribal Groups and the Price of Development
Large tribal groups have been displaced to facilitate the setting up of industries, mining activities, and the construction of dams and other large projects, which provide them very few benefits. Since independence, the tribals are the only people who are still expected to bear the costs of development projects.
Resource-rich Tribal Areas and Historical Exploitation
The pay the highest price of national development because their regions are resource rich. Ninety percent of all coal and around 50 percent of the remaining minerals are in their regions. Resource-rich tribal areas came to be treated only as suppliers of raw materials whose benefits are denied to them but reach the urban middle class and the rural upper classes.
Industrialization, Tribals, and Naxalite Movements
Most surveys have indicated that industrialization has worsened the condition of the tribal population. Austrian anthropologist Haimendorf who did a study of the tribals has pointed out that they have suffered because of increased economic development.
Naxalism and the Present Model of Development
People embrace Naxalism due to the present model of development. It gains popularity by focusing on the attainment of tribal self-determination and control over local resources. Naxalites have attacked both private companies and government institutions.
Plight of Tribals in Jharkhand
Tribals, according to the 2001 census, in Jharkhand constituted only 26.3 percent of the population. The past decades have been a story of eviction and marginalization of the tribal population. They have borne the brunt of predatory industrialization and mining.
Challenges in the Globalization Era
This process has continued with Damodar Valley Corporation, Heavy Engineering Corporation in Ranchi, numerous power projects and mines coming up in the state over the past six decades. In the globalization period, the state has signed 74 MoUs with different companies, which include mining and steel plants by ArcelorMittal, Bhushan Power & Steel, Jindal Steel, and thermal power plant and dam by ECSC.
Human Development Challenges in Jharkhand
Despite massive investment, the human development indicators in Jharkhand are abysmally low. According to Planning Commission data, 40.3 percent of the population is living under the poverty line and the figure is almost twice that of all-India figures.
The Need for Inclusive Development
Large-scale industrialization does not necessarily result in sustainable, inclusive development. There is little to show links between industrial expansion and people welfare. The poorly educated people, particularly the tribals, have remained excluded from the process of industrialization.
Corporate Social Responsibility as a Long-term Investment
Industrial units flocking to the state to take advantage of its rich mineral resources and the liberal tax concessions offered by the state have a responsibility towards the people, particularly the tribal population.
Addressing Extremism and Fostering Community Involvement
Increased CSR spend in the state is a long-term investment for industrial units that aspire to continue operations for a long time into the future. The state is already facing severe problems because of the increasing extremist activities. The state government’s industrial policy and the influx of out-of-state investment into the mineral-rich tribal areas are causing further resentment among the people.
The Business Case for Increased Community Involvement
There is a fear that the frustrated tribal youth would drift away from society and join the ranks of the extremists. Business needs to heed to the call of the Chief Minister for their own good. There is a strong business case for businesses to increase their community involvement in the state.
Suresh Kr Pramar,Trainer, Writer, CSR Consultant and the Executive Director, Centre for Training & Research in Responsible Business is a veteran journalist presently actively involved in promoting CSR through his publication CRBiz and by conducting workshop on Corporate Social Responsibility.
Disclaimer: The views expressed by the author in this feature are entirely his own and do not necessarily reflect the views of INDIACSR
