 A
vibrant city with a distinct socio-political culture, Kolkata is noted
for its revolutionary history, ranging from the Indian struggle for
independence to the leftist and trade union and movements.
Over the 1960s and 1970s, severe power shortages, strikes and a violent
Marxist-Maoist movement - the Naxalites - damaged much of the city's
infrastructure, leading to an economic stagnation.
In 1971, war between India and Pakistan led to the mass influx of
thousands of refugees into Kolkata resulting in a massive strain on
its infrastructure.
Kolkata has been a strong base of Indian communism as West Bengal
has been ruled by the CPI (M) dominated Left Front for three decades
now - the world's longest-running democratically-elected Communist
government.
Once India's leading city and Capital, Kolkata experienced a steady
economic decline in the years following India's independence due to
the prevalent instable political conditions and rise in trade unionism
supported by left-wing parties. Between the 1960s to the mid 1990s,
flight of capital was enormous as many large factories were closed
or downsized and businesses relocated. The lack of capital and resources
coupled with a worldwide glut in demand in the city's traditional
industries (e.g. jute) added to the depressed state of the city's
economy.
The liberalization of the Indian economy in the 1990s along with the
election of a new reformist Chief Minister Buddadeb Bhattacharya,
have resulted in the improvement of the city's fortunes.
Political stability is an area in which West Bengal has excelled compared
to other States. At a general level the Left Front today finds itself
in an impregnable position. In fact, the uninterrupted reign of the
Left Front over the past 27 years is a feat in the political annals
of India since 1947--the result of effective and purposive governance
by a cohesive coalition that provided political stability and adhered
to the principle of secularism.
Decentralization of power was one of its major achievements. It devolved
powers to the local bodies in a three-tier panchayat system. It amended
the laws in order to ensure the involvement of rural people in the
decision-making process and in the implementation of plans and projects.
About half of the annual budget of the government is spent through
the panchayats. The money is used to create rural employment and to
finance local development. The panchayat system as practiced in West
Bengal brought about a major change in the theory and practice of
public administration in India.
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