Monday, July 1, 2013

Mandate 2014 – Bihar: brilliant people caught in political quagmire

In the last phase of our Discover India tour we travelled through 23 of 38 districts of Bihar state spanning across 8 divisions covering over 2300kms. With population of over 100mn people, the state is considered critical for aggregate growth and development of the country.

Traversing through this land of rich heritage, bountiful nature and brilliant people was a rather disappointing experience. Abysmal poverty, poor social and physical infrastructure, completely fractured political establishment, disinclined administration and deeply divided society on caste lines. We saw a little reflection of much acclaimed 10%+ growth beyond a few large and tier two towns.

The key observations of our Bihar states were as follows:

(a)   The state of agriculture in this predominantly agrarian state is pathetic. Frequent floods, lack of labor (major surprise) uneconomical holdings, poor marketing infrastructure, lack of formal credit, social biases, scant food processing industry and high incidence of land related litigation were some major reasons cited for lower agriculture contribution to the state economy.

(b)   Low agri growth and virtually absent private enterprise has resulted in large labor migration from the state in past 3 decades. This is a strong vicious cycle now which the administration is finding difficult to break despite sizable rise in social sector spending and mostly transparent implementation of MNREGA.

(c)   In the current popular political context, it was inevitable to look for comparisons between Bihar and Gujarat. We found many stark similarities between the two competing states. Like Gujarat, a large component of the Bihar growth could also be attributed to the repatriated money by laborers working in other states. The level of indebtedness at household level is high and exploitive. Society is polarized on caste and religious lines. Land and construction is the largest contributor to the wealth creation in past decade or so. The major differences include over-reliance on government’s provisions in case of Bihar and highly fragmented political establishment.

(d)   Power and poor water management are the most regretted infrastructure bottlenecks.

(e)   The state of education beyond large towns and cities is dismal. Most teachers in villages were found unfit to be even high school students.

(f)     Socio-economic disparities have grown substantially in past two decades. Though the current government has been largely successful in restoring the Bihari pride, the effort has not yielded significant socio-economic dividend.

(g)   The incumbent government appeared losing support of influential middle class post breaking of NDA alliance in the state. As the social division on religious line is not found to be very strong in the state, the expected dividend from minority votes may not compensate for the loss. We see  a material losses for ruling party in the next general election.

Read our special series Mandate 2014















Thought for the day

“The beginning of reform is not so much to equalize property as to train the noble sort of natures not to desire more, and to prevent the lower from getting more.”

-  Aristotle (384BC-322BC)

Word of the day

Dilly (n):

Something or someone regarded as remarkable, unusual, etc.

(Source: Dictionary.com)

Shri Nārada Uvāca

Congress support Kanimozhi for her election to Rajya Sabha and Beni Babu’s hint at understanding with Mayawati in next election, make two things clear:
(a)   Corruption will not be an issue in 2014 election.
(b)   All options for alliances are open.

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