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Abstract:
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The present paper attempts to analyze the potential of Northeast in the context of economic liberalization and transnational co-operation. The paper argues that the need for a holistic and inclusive policy towards NER should focus on 3 aspects: Political, Economic, Transnational. Political approach should focus on approaching security and ethnicity related issues beyond law and order dimension; creation of viable conflict management system based on consensus among civil society, government ethnic groups and tribal; transparency and efficiency in administration giving representation to local people, strengthening participatory institutions like panchayati Raj etc. Economic dimension include creation of a sound investment climate through various incentive measure, increased public investment in physical and social infrastructure, cluster development for small scale industries, development of SEZs, training and assistance for local entrepreneurs, insurance policy for investors, promotion of tourism, credit delivery, alternative livelihood options and efficient management of natural resources. Transnational dimension include confidence building measures with neighboring countries on trade and national security related issues, water and power sharing agreements, export and import promotion initiatives, initiatives towards southeast Asia-South Asia free trade zone, building road networks between selected neighbors to promote trade and accessibility to market.
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