Bihar may get a government but what about governance?

Consider the following:

Accounting for 8 per cent of the country’s population, Bihar has a per capita income of mere Rs 4,448 as compared to the national average of Rs 10,000. Twice the number of people in Bihar live below the poverty line than the national average. Percentage of people below the poverty line in 1990-2000 was 42 per cent against the national average of 26.1 per cent. The state has a literacy rate of just 47 per cent against the national average of 65 per cent. Its gross enrolment ratio for Class I-VIII is 59 per cent compared to the national average of 82 per cent and a drop-out ratio of 74 per cent is much higher than the national average of 54 per cent.

Notwithstanding this, higher and technical education universities outside Bihar have a disproportionate number of applicants from this state, suggesting an absence of credible educational opportunities within Bihar. The state has no institute of technology even though students from Bihar continue to excel in educational institutions outside the state.

The per capita consumption of electricity in India is lower than most developing countries, at just 354.75 KWH, but Bihar’s is much lower than this—just 140.8 KWH. The collapse of the transmission and distribution system does not enable it to even utilise the meagre electricity available.

Absence of a conducive investment climate has resulted in low credit deposit ratio as well as low investment, including from central public utilities.

All this adds up to a depressing picture, but given demographic pressures, mainstreaming Bihar’s economy must receive priority. Any strategy would need to include the following ingredients:

First and foremost, an image improvement. Unless perceptions improve, it would be difficult to harness investment and reverse the unrelenting outflow of managerial talent and capital from Bihar. This requires restoration of confidence over a sustained period.

Second, on development parameters, clearly the focus must be to fully utilise the investment of Rs 1,000 crore per annum under the Special Plan for Bihar. This includes strengthening the sub-transmission systems, which would enable the state to utilise the meagre electricity available; improving agriculture productivity; augmenting irrigation capacity; improving agriculture in drought-prone areas; and improving connectivity within the state through development of state highways. These programmes, implemented by central agencies, can bring tangible results.

Third, emphasis must be placed on harnessing its comparative factor endowments. With the bifurcation of Jharkhand, it must be on improving agricultural productivity and agro-processing industry, and moving up the value-added chain through crop diversification and marketing linkages. Improved road and telecom connectivity is central to this strategy as also improving the shelf life of agro products through cold chain and refrigeration facilities.

Equally, Bihar’s large young population need gainful employment opportunities. Improved human resource development through creation of centres of educational and technical excellence and harmonisation of skill inculcation in consonance with changing market demand must be part of this concerted strategy.

Fourth, the Reserve Bank of India’s figures do not reflect that the finances of Bihar are any worse than some other states. Compared to many other states, its borrowings have been more prudent, overdrafts more limited and fiscal deficit more manageable. The problem, however, is that expenditures against outlays have significantly lagged behind and institutional mechanisms, particularly the civil service, are far too demoralised to take any worthwhile decision. The engineering, medical and other technical services are equally demoralised. While personal rectitude must be the hallmark of any sound administration, bona fide decision-making must be firmly protected. Restoring the confidence of civil and technical services, which are in paranoia of impending scams or discretionary political action, is central to restoring the fabric of civil administration.

It is well recognised that if India is to grow at 7-8 per cent over the next few years, this cannot be sustained if large dense demographic entities like Bihar or UP are not an integral part of the growth process. Apart from economic consequences, this would further exasperate social tensions. It must be said to Laloo’s credit that he has given Bihar a long period of communal amity. What is however needed is speedy implementation of development imperatives which can enable this state to become part of the national mainstream. Both in the previous Cabinet and the present one, Bihar has significant representation but this has not resulted in any tangible good for the state. Excessive politicking resulting in a ‘‘democracy overdose’’ must make room to make up for the huge ‘‘development underdose’’. Whatever be the complexion of the government in Bihar, this endemic neglect must be reversed. Bihar must secure its pride and dignity given its enormous pool of human talent.

write to nksingh@expressindia.com