Resource Curse

By Sugato Hazra

Development economists call it resource curse. The idea of minerals bringing in more curse than pleasure may seem odd but certainly not to those who lose their habitat due to mining of resources. One likes it or not the fact that the mineral rich forest lands of Jharkhand, Chhattisgarh, Orissa are also the hotbed for Maoist presence illustrates the resource curse. The link between extremism and rampant exploitation of their habitat for mineral resources is too glaring to wink at. Unless business pays attention to sustainable development the socio-economic scenario eventually will lead to trouble and turmoil. Unfortunately private capital has a single point agenda of return on investment. Predictably business interest works against any investment in sustainable development. Thankfully the two government-owned national mineral companies – Coal India and NMDC – have dared to be different. Both the companies have been working towards a long term sustainable development model in their respective areas. Coal India has shown how to restore land back to the forest once mining is complete. NMDC has been in advance stages of introducing underground mining in the fragile eco-systems of the Western Ghats. This will ensure extraction of rich iron ore with least disturbance to the forest and its flora and fauna. A technological solution to the environmental question haunting the legal system, assures NMDC chief.

Two issues come to the fore from the actions of CIL and NMDC. First and certainly the foremost conclusion is that if there is a will there always is a way. When two senior government employees can think of investing in sustainable development certainly the nation’s top business honchos who rub shoulders with the global greats flying across in their executive jets could also do their bit. If in the end Partha Bhattacharya or Rana Som have made an effort where the rich and the famous stayed aloof the reason could be traced to the absence of will in them. The second and no less critical is the fact that exploration of mineral resources, if left to the care of the national companies, end up meeting the nation’s long term economic objective. In other words in the hands of companies like CIL and NMDC the resource curse takes a backseat, development of all comes to the fore. Howsoever much the private capital cry hoarse of their corporate social responsibility the same remains showcased in the luxurious lecture halls of Davos or Delhi and barely reach those who get displaced as a result. This sounds pessimistic or queer like the phrase resource curse but honestly one cannot but accept this as an incontrovertible truth. Thanks to the unsung PSUs of India there are some efforts different from the usual accepted ones benefiting for a change the inhabitants living on the edge. John Steinbeck in his haunting story ‘The Pearl’ narrated the destruction suffered by Kino, a poor Mexican fisherman, who found a priceless natural resource. In every corner of the world there are many such Kinos who suffer endlessly due to exploration of natural resources. The same can stop if the steps initiated by CIL and NMDC in India are emulated by all.