INDIA'S INDUSTRIAL DILEMMAS IN WEST BENGAL

Abstract

Industrial development in the Indian state of West Bengal is of interest from at least three different perspectives that all have important theoretical and policy-oriented implications. The first perspective derives from the fact that this particular state has been ruled for more than 20 years by a political party claiming a Marxist allegiance, the Communist Party of India (Marxist) (CPI [M]). Over the course of these two decades, such parties have become increasingly rare. They are regarded by many as representing a long gone past rather than symbolizing the future as once assumed. Moreover, the party has repeatedly– in 1982, 1987, 1991, and 1996– been reelected to office through open and democratic elections. The CPI (M)’s remarkable political success alone makes it worthwhile to investigate to see what can be learned about the conditions and prospects of the government’s progressive policies in the economic sphere. What’s more, most writings on West Bengal have focused on the government’s reform policies in the rural areas. Extensive debates have been conducted over the government’s past performance and its future prospects in that sphere. In contrast, there has been much less debate over the government’s performance in the industrial sector despite the fact that industrial development would seem to be of critical importance for a Marxist government claiming to represent the interests of the proletariat. A second perspective on industry in West Bengal comes from the debate on the prospects for industrial growth in developing countries, including the discussion on the lessons to be learned from the– until recently– highly successful East Asian countries. A particularly promising theoretical contribu-