Institutional Barriers to Development in the State of Nagaland

Abstract

Assessing Nagaland’s economy from the usual economic denominators like Gross State Domestic Product (GSDP), Per Capita Income, Human Development Index (HDI), economic growth rate, etc., gives the misleading picture that the state is doing well. There are other indicators which show the weak side of the state’s economy: there is a preponderance of the service sector, the public administration contributes nearly a fifth of the state’s GSDP, the industrial sector is small, the infrastructure is poor and the state is dependent on the central government. The state’s economy has these ills because of the political problem that it is stuck in, resulting in the existence of many nationalist groups and a consequent weak government. Unless this is solved, Nagaland will continue to have the same economic problems it is having.