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)
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