Home arrow Archives arrow Economic Highlights arrow Economic Highlights 2010 arrow New Bihar Syndrome:FRESH ECONOMIC TWIST, by Shivaji Sarkar,26 November 2010
 
Home
News and Features
INFA Digest
Parliament Spotlight
Dossiers
Publications
Journalism Awards
Archives
RSS
 
 
 
 
 
 
New Bihar Syndrome:FRESH ECONOMIC TWIST, by Shivaji Sarkar,26 November 2010 Print E-mail

Economic Highlights

New Delhi, 26 November 2010


New Bihar Syndrome

FRESH ECONOMIC TWIST

By Shivaji Sarkar

 

The astounding results of the one-sided Bihar elections has established that if someone governs, stokes hopes and improves upon the socio-politico-economic quotient he or the group he leads gets a massive dividend.


It needs to be noted that the victory of Nitish Kumar was not based on majoritiranism, fundamentalism or extreme populism. The election revolved around an iconic image and the mandate was an acceptance that he was rebuilding Bihar, socially and economically, and people wanted him to continue.

 

This is what Nitish Kumar has achieved for the State, which till recently symbolised the worst developmental paradigm. Importantly, the dividend is just not for his political alliance --- NDA--- but for the people of the State, whose aspirations certainly has grown manifold as the State has achieved the highest --- higher than the national --- GDP growth of over 11 per cent during the last two years.

 

The 2010 Bihar elections prove that political forces are crucial to economic growth. This governance syndrome certainly does not require an economist to suggest what the people want. The politician rooted to the ground has only to give vent to the aspirations. Nitish Kumar since his coming to power in 2005 apparently started giving a turn to the affairs after a state of morass had started in 1990.

 

Is Bihar setting a new development benchmark? The Nitish syndrome may set the tone for national aspirations and might change the dynamics of national politics. The Mandalised social engineering was based on exclusion of many social (may read caste) groups. It also led to vengeance, vandalisation and poor law and order situation.

 

Nitish Kumar reversed this by an inclusive system and taking care of the most deprived, who he called Mahadalit, the less empowered among the Dalits, that represent Ram Vilas Paswan, and Pasmanda, the most backward Muslim groups. Wherein, even the JD(U)’s ally BJP got votes in Muslim-dominated constituencies. The campaign against his Mahadalit Commission backfired on his opponents, the RJD-LJP and Congress.

 

The people’s aspirations brought the Bihari pride back. Many Bihari workers have left their work places outside the State and come back. Peace and aspiration are seen as the greatest gift. Women have voiced that. Ten per cent more women turned out to vote. Symbolising the functioning of the State structure, which benefits women even more than men. This ensures better security and also better facilities for health and school enrolment.

 

Significantly, the women were religion neutral. Is the authority of the man dwindling? Particularly, as a large number of women turned out to vote in districts with high Muslim concentrations. The highest turn out of women at the hustings were 45.66 per cent in 1985 and 44.49 per cent in 2005. It touched 54.85 per cent in 2010, much more than the men’s 50.77 per cent.

 

This has not happened just like that. The State has given opportunities to grow with a larger road network, from 415 km in 2005 to 2417 km in 2010, reduced infant mortality rate from 61 per 1000 to 56, maternal mortality from 371 to 312 per 1000, higher health expenses from Rs 607.47 crore to Rs 1662.8 crore, education outlay that is 114.79 per cent more, at Rs 8344 crore.

 

This is not all. The State has also seen a phenomenal rise in Plan expenditure from a mere R 4466 crore in 2005-06 to Rs 12511 crore in 2010-11. In crude economic terms many of these, all State expenditure, would be considered as subsidies though in real terms these are investments without which no society can grow.

 

Is Bihar giving a new twist to economics? What Bihar is doing is symbolised by UN’s Development Programme concepts rather than the World Bank-IMF corporate economics. Whereby, the State’s dynamics have increased corporate confidence. Industries which have been moving out of the State for decades now see a gleam of hope for revival.

 

The Confederation of Indian Industry Director General Chandrajeet Banerjee says that the CII is expecting closer ties with the Nitish Government. The Assocham President Swati Piramal avers that so far only 0.5 per cent of corporate investment has gone to Bihar. It might increase if the Nitish Government improves power generation.

 

Some of this has already been witnessed. Investments in hotels and restaurants have grown by 17.71 per cent in 2008-09. This is an indicator that investors have at least started visiting and exploring Bihar.

 

Clearly, the Nitish Government has many challenges and has to meet higher expectations. The next five years would be very crucial for many sectors --- agriculture, power, ensuring food to the deprived, building a chain of cold storages and many more.

 

The Government would have to build heavily on agriculture given that the State has fertile land. It has the capacity to produce and become India’s bread basket. Bihar requires an agricultural policy that could break away from the feudal set up that has consolidated since the British introduced permanent settlement. It is not an easy task. It would hurt interests and the social pride of many groups. It would require treading cautiously.

 

Undoubtedly, the Chief Minister’s efforts would be seen more critically now. In his second term, the State structure has to be strengthened further. From having become functional, it has to become more pro-active. Social sector development along-with economic and industrial growth has to be woven into the State policy.

 

Not only that. With growing activities he also has to keep a check on the unscrupulous corrupt elements. The benchmark of the State has to be increased. Nitish needs to take steps towards continuing at least 10 per cent growth annually to meet the people’s aspirations.

 

It is a daunting task. That is the expectation of the enhanced political capital the people have bestowed on Nitish Kumar. Undeniably, the progress of Bihar might tell on some other States which thrived on cheap Bihari labour. Be it Punjab, Haryana or even national Capital Delhi. Bihar’s changing social dynamics is certain to help the labour force getting better treatment and wages elsewhere.

 

Thus, the Bihar election results need to re-focus on labour policies at the Central level particularly by those who are demanding relaxation in labour laws. The Bihar syndrome might call for stringent implementation of whatever rudimentary labour welfare laws there are. ---- INFA

 

(Copyright, India News and Feature Alliance)

 

 

< Previous   Next >
 
   
     
 
 
  Mambo powered by Best-IT