Published on Sat, Dec 05, 2009 at 16:29 | Source : Moneycontrol.com
Updated at Fri, Jan 08, 2010 at 13:12
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The future of Bihar
An economist from Delhi School of Economics, Singh has been among the country's top bureaucrats and handled assignments of national importance. As a true Bihari, he pens his thoughts about the 'land of riches inhabited mostly by poor people', and what lies ahead for the state.
The economic backwardness of Bihar remains an enigma. Historians recall the great heights of culture, development and the territorial sweep of the erstwhile Maurya and Gupta period, who ruled from Patliputra, the present day capital of Bihar. Those engaged in the reconstruction of Nalanda University recognise the intellectual and educational pre-eminence of that University located in this State from the 3rd century to the 12th century AD.
Lately, however, many have described Bihar as quicksand which draws you in with inevitability. Bihar suggests awkward complexities which have no easy answer. It is true that Bihar remains a land of riches inhabited mostly by poor people. Biharis may be rich but Bihar is poor. Biharis, who migrate out of the city, excel in the profession they persue. But, back home it makes no dent on the backwardness of the State. The large Gangetic plain with its fertile soil, abundant water resources available from a multitude of rivers that flow through the region and the potential of the hardworking people of the state are of no avail.
Soon after Independence, during the 1950s, the administration of Bihar was assessed as one of the best in the country by Paul Appleby. But owing to its prolonged poor governance and stratified social order, the State, now, has come to be referred as the 'prosperous poor'. For last few decades, the State was mentioned in two topics of discussion - politics and poverty. Not, the 'poverty of politics', rather the politics with poverty. In recent years, subjects relating to the development challenges of Bihar had been acrimoniously debated. Bihar was increasingly considered a 'Basket Case', with no prospect of a better future. Recently, there have been concerted efforts to improve the overall climate of development in the State. This has aroused a sense of optimism and ushered a glimmer of hope among Biharis.
Moreover, it is imperative to understand why things have come to such an impasse in Bihar? History can gives us some pointers. Several interrelated issues -- poor agricultural growth, deindustrialization during the colonial period, high population growth and migration - have lead to its long-term decline. These were coupled by poor governance, neglect by the Central Government, unreliable infrastructure, low energy availability and poor agricultural yields over a long period. The result: it has crippled the State, its economy, its society and human development.
Trends in GDP Growth The table below shows the pattern of Bihar and India's long-term growth. There are two distinct growth periods for India and Bihar - Phase I from 1950 to 1980 - Phase II from 1980 to 2005
For India, Phase I is characterised by slow growth in both absolute and per capita terms when compared with growth in Phase II. India grew at an average pace of only 3.6 percent per annum in absolute terms and 1.2 percent in per capita terms in Phase I. However, growth accelerated to 6.0 percent in absolute terms and 4.0 percent in per capita terms in Phase II.
In case of Bihar, the State grew at an average of around 3 per cent in Phase I, but economic growth worsened in Phase II vis-à-vis the national average. Within these two broad phases there are some interesting variations. A look at the table below would indicate how the trend in Bihar has been since the 1950s in comparison to the national average.
Trend of economic growth in India and Bihar (percent per annum)
State/Year
Bihar
India Average
1950-60
---
3.9
1960-70
2.3
3.7
1970-80
3.1
3.1
1980-90
4.8
5.6
1990-2000
3.6
5.7
2000-2003
0.2
6.0
The author, NK Singh is a Member of Rajya Sabha, Government of India.