Peace and its Disorders

Context:  The recent criticism of the continued informal tax regime in the North Eastern States by the Governor of Nagaland requires an in-depth analysis of the dependence of the tax regime in sustaining “peace” in the region. 

Argument against the Informal Tax Regime of Nagaland

• Capture of development funds, face little resistance from a state institution, leading to the collapse of law and order in the state.

• Hindered Development: Expenditure on a huge overloaded governmental structure leaves very little resource for other activities including development.

• Not in consonance with the textbook definition of an ideal-typical state with a monopoly over legitimate taxation powers. 

• Political analysts call it “informal taxation by non-state actors”.

Rationale for the Informal Tax Regime

• Political Endorsement: Presence of substantial influence and legitimacy of the Naga militant organisations has led to political support in the region.

• Interpreted as sustenance: for several Naga rebel organisations like NSCN-IM, NNPG.
• Naga armed groups do not receive government subsidies thus they are bound to collect tax from the people for their survival.

• Political Necessities:

• Since Nagaland was carved out of political necessities, it was not expected to be economically viable for a long period of time.
• Armed groups in Northeast India have been successfully claiming a share of development funds both before and after signing “peace accords”. 

• No tax collection regime whether formal or informal: can be free of coercion. 
• Failed to pacify Nagas: through full statehood status leading to their continued operations.

Conclusion: Since most armed conflicts in the world do not end in victory or defeat or peace but in a draw, it is not unusual for state authorities to be in some form of de facto partnership with armed groups.