Bihar’s transformation Can it be a growth model for Nepal?

For the most part of history, Bihar, a state of India, had the privilege to be the centre of India’s civilization.

Economically, too, Bihar was affluent as the Ganges and many other rivers flowing through this state made the agricultural land most fertile, which helped the farmers grow food crops and horticultural products in abundance. Even in the modern times, Mahatma Gandhi started his independence movement from Bihar. The state played the key role in India’s independence movement in 1947.

Bihar which has now the population of over 90

million lost its past glory in the post-independent phase, particularly in the last two or three decades. Gradually, it began to be identified with crimes,

abductions, extortions and lawlessness. Infrastructural facilities such as roads and electricity were in shambles. Education and health institutions suffered major set backs. Prospects for

employment opportunities in the state were the least. This led a large number

of people to migrate to

other states of India for their livelihood.

Being disgusted, most people subsequently had given up their hope of any improvement of the state. Virtually, the state had turned into a Jungle Raj as the corrupt and criminals maneuvered control over the entire affairs of the state.

However, ever since

Nitish Kumar became the Chief Minister of Bihar in 2005, the state not only transformed itself but it took place miraculously. Sizable improvement has been made in the schooling system as the teachers have largely been engaged in teaching. Free meals and dress are given to the school-going children. Once a girl or boy reaches grade 8, s/he becomes

entitled to get a bicycle. The higher education scene has also improved.

Now, the doctors have started discharging their duties at the hospitals.

Engineers have returned to their duty. Government

officials have become regular in their offices. The

police have become dutiful.

Improvement in the law and order situation on the one hand and massive

construction activities particularly in the infrastructural sector such as in road building and power have generated opportunities for domestic and foreign

investment. Even in the

rural areas, each rural household is now assured of 100 days of minimum wage work on demand under the National Rural Employment Guarantee scheme.

A new zeal and hope has returned to the soil of Bihar. It was not that the education, health or government institutions did not exist in the past. They were there. But they did not function

effectively for the welfare of the people due to the

mis-governance. As the work culture resumed, the state exhibited 11.03 per cent economic growth rate, which is faster than the

national average.

On the contrary, just across the border of Bihar in Nepal, extortion, forced

donation, murder and lawlessness have become the order of the day. Criminal gangs operating in the

region have started controlling the state agencies and its power. More than a hundred armed groups have been operating in the Terai region itself and the government has no control over them. There is no security to life and property.

The political parties in Nepal have become almost like profitable commercial ventures. The politicians are not accountable to the

people, but to their clients from whom they benefit. Calls for bandhs from one or the other irresponsible units are most common. Virtually, there is anarchical like situation. Each day, over 600 people have been leaving Nepal for employment in countries other than India.

The agriculture sector is hardest hit because the working group population has mostly left the country. Woefully, there is huge capital flight from the country. Perhaps, Nepal is the only country in South Asia other than Afghanistan where the annual rate of economic growth is as low as 4 per cent. Some of these developments have been taken as features of fragile, if not the failed state. Considering Nepal’s long border with Bihar, any change in Nepal might have its impact on Bihar and vice versa. This is more so as the two regions though separated by international boundary is de facto borderless in light of the traditional bonds of cultural, social, economic and political ties. Ht is time to ponder if Bihar’s higher rate of economic growth could be a blessing in disguise for Nepal. The world class magazine Economist has come out with the report on Bihar. Bill Gates was on visit to this state. Nobel peace laureate Amartay Sen also visited this land. If the world is

interested in Bihar, why not Nepal? Bihar perhaps could be the best model for Nepal to answer many of the

challenges facing this country today such as misgovernance, anarchical like situation and poor rate of economic growth. As Bihar

recovered itself from almost similar situations through which Nepal is passing, Nepal could also transform some of its challenges into opportunities as Bihar did, not only by accelerating the rate of its economic growth but also by promoting economic growth with justice.

Professor Jha is an economist and Executive Director of Centre for Economic and Technical Studies in Nepal