The Bihar Dilemma

Bihar is one of the least performing states on several socio-economic indicators of development. More than one-third of families have a monthly income of less than Rs 6,000 which makes up 34.13 % of the 13 crore population, according to the caste-based survey 2023. This points to a dismal  state of affairs. Over the years, the precarious livelihood conditions have unleashed a wave of migration among people placed in the lower to middle-income groups to growing urban areas of India. There were 7.5 million migrants from Bihar in different parts of the country, according to the 2011 Census. People leave their families in search for better prospects for work, business, or  education. Bihar is widely known for supplying skilled and casual workers to rapidly industrialising southern and western parts of the country. Much has been said and written about the persistent lack of development in the state. There are unanswered questions and problems that beset Bihar. This article will delve deeper into exploring the existing socio-economic and political factors that holds Bihar back from attaining its latent potential. We ask why a state with a glorious and rich history and culture fared poorly on a number of developmental parameters, and how can we place Bihar on the track of socioeconomic progress? 

Locating Bihar 

Bihar has the third-largest population in India after Uttar Pradesh and Maharashtra. It comprises 3 per cent of India's landmass and 9 per cent of its population. It was carved out as a separate province from the then Bengal presidency on 22nd March, 1912. At that time, its landscapes were dotted with persistent poverty and underdevelopment, even though Bihar is abundantly endowed with natural resources and young demographics. The Ganga river flows through the state and provides fertile conditions for farming-related activities. It is situated in the eastern part of the country and mainly has a plain topography, which makes it favourable for infrastructural and industrial establishments. Bihar has the highest percentage of youths in India, 58 per cent of them are under the age of 25. 

Bihar is a glaring example of a survival society that is marked by hierarchy and indifference towards people positioned at the so-called lower orders, which manifests itself subtly in the everyday life of Bihar, thereby resulting in inadequate or poor administration. A substantial majority of its population struggles for decent survival and relies on the bare minimum provided by the state government, whether it is a public distribution system or the livelihood schemes of the government. Its economy is highly dependent on subsistence agriculture, the service sector, and migrant remittances. 

Then and Now 

Colonial masters, through their exploitative zamindari system and forced indigo farming, reduced the enterprising capacity of Bihar's people. The British succeeded in retaining a surplus of agricultural produce. It could not industrialise sufficiently on par with other eastern states. The zamindari system rendered landholdings iniquitous to the detriment of  large and poor masses. Post-independence, India did not pay heed to the economic conditions of Bihar. Excessive centralisation was not able to establish major industries in Bihar despite being a mineral-rich state; then Jharkhand was a part of Bihar. Moreover, sugar mills that were 33 in number before independence have been declining. Now, it has 10 functional mills. The freight equalisation policy of the central government was attributed to not developing the industrial base in Bihar. Under this regime, factories could be set up in any part of the country, and the transportation of minerals would be subsidised by the Government of India. 

Caste-based politics has been a currency to acquire and maintain power since the onset of independence. For decades after independence until 1990, upper castes dominated the political system of Bihar. According to political scientist Sanjay Kumar, they deliberately subverted ‘land reforms’ in Bihar that could have helped backward castes and the scheduled castes. 82.9 per cent of total landholdings belong to marginal farmers, those who own up to 1 hectare of land. And 9.6 per cent of landholdings are owned by small farmers, those who have 1-2 hectares of land. This suggests how a small, dominant section of society uses their power to retain a large piece of land. 

Bihar has been at the centre of the social justice movement in north India long before the implementation of the Mandal Commission. In 1978, then Chief Minister Karpuri Thakur introduced legislation for providing 26 percent of reservation in government jobs for the underprivileged class. So caste has been a trump card, which over the years has taken a stronghold in Bihar's Other Backward Class (OBC) politics. Caste consciousness in political life beyond the idea of development has become a drag on social progress. In the 1990s, politics around the issue of lower caste representation was socially imperative so as to make social and political life equitably accessible to all. It ought to have been a substantial push for major socio-economic transformation in Bihar. However, this hearty hope remains far from true. 

Even after the adoption of liberalisation and privatisation policies by India, Bihar remained laggard in bringing in much-needed investment, and the state could not play prudently with market forces. Consequently, it came to be clubbed under the BIMARU (Bihar, Madhya Pradesh, Rajasthan, and Uttar Pradesh) states category. The systemic leakage and absence of robust rule of law in the last decade of the 20th century prevented the growth of numerous independent private businesses that could improve the economic life of the state. The serious breakdown of law and order machinery and the scenario of murders, rapes, kidnappings, tensions, and violence brought a bad name to Bihar in the 1990s during the Lalu Yadav rule, prompting people to remark that the 'state has withered away’, discouraging the industries to establish their factories or the businesses to consider the state as their market. As a result, Bihar's per capita income is one-third of the national average, which casts a skewed picture of income distribution. A large part of Bihar is bereft of needed infrastructure that acts as a hindrance to further advancement for people inhabiting those regions. Therefore, migration to other states for work becomes an escape from existing conditions and means for providing for their families. Bihar has the highest number of informal workers in India that make up 94 per cent of its workforce. These economically vulnerable groups lack social safety protections to live a life beyond the bare minimum. Dependent population makes up 67.1 per cent, which  means more than two-thirds of them rely on the remaining one-third. 89 per cent of its population lives in rural settings, which derives their sustenance from the agricultural sector directly or indirectly. This data gives us a sense of the gravity of the situation. It is the most densely populated state, which  puts enormous pressure on existing physical infrastructure such as primary hospitals, local schools, and the law and order system. It bears out the implications that follow in the form of a high cost of education, expensive healthcare, a concentration of criminal activities, et cetera. All these factors cumulatively resulted in a low standard of living, thereby contributing to an unwelcoming  stereotypical perception in popular national discourse. 

According to a study by the World Bank, the challenge of development in Bihar is enormous due to persistent poverty, complex social stratification, unsatisfactory infrastructure, and weak governance. Besides, the people of Bihar struggle with image problems that deeply damage Bihar's growth prospects. It gets reflected in low investment. A ‘poverty trap’ follows when there is low investment that results in low growth and deficient economic opportunities for households to improve their standard of living. 

Ways Ahead 

Bihar has to come together, cutting across caste, class, and region to form a society-wide political coalition that raises developmental issues for all. It should reinforce subnational Bihari identity as that of Marathi or Tamil. This would allow them to speak for all, irrespective of multiple dividing lines. Developmental politics is the only way to  ameliorate the grim economic situation prevailing in Bihar. Building an investment-friendly environment and improving human development indicators would enable Bihar to realise its potential, according to the World Bank. In that direction, the state has to play a proactive role by becoming economically more competitive. For that, the state government has to boost its public investment so as to provide essential public services to all sections of society in a seamless way. Bringing systemic reforms to do away with corruption and correcting institutional failure are important factors in attracting economic opportunities. It has to transition from an overly socialist economic model to a private-led system through urbanisation and industrialisation  on a war footing. 

Political administration bears a greater responsibility to create the necessary conditions to facilitate the upward socioeconomic mobility of its people so that they fulfil their aspirations and lead a life of dignity. All important stakeholders, whether political parties, policy-makers, civil society, or citizens, have to be assertive in putting people's needs above vested interests. A firm leadership with visions at all levels is the need of the hour. It should strengthen governance and plug in the infrastructural deficit to attract capital and technology. Bihar must set forth a constitutionally mandated and morally imperative project of emancipating a massive population from the quagmire of economic insecurity and putting them on the path of prosperity. And henceforth, fostering an egalitarian and progressive social order.