The Peninsula Foundation

Tag: Bihar

  • Social and Economic Aspects of Caste Survey in Bihar

    Social and Economic Aspects of Caste Survey in Bihar

    The need for caste census today is because after independence we adopted the top-down development model. It was thought that the development benefits would flow from the upper strata to the lower ones. But this hope has been belied with the well-off capturing most of the benefits, leaving little for the marginalized sections who are lagging behind in development.
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    The release of the figures of the caste survey in Bihar has immediately led to the heating up of politics in the entire country. There is a demand for conducting a caste survey in many states, including Uttar Pradesh, Madhya Pradesh, Rajasthan and Maharashtra. In Karnataka, the demand is to make public the data of the caste survey conducted in 2015.

    Poverty and Population Increase

    According to the Bihar survey report, the largest population in the state belongs to the extremely backward class (EBC), constituting about 36 per cent of the total population. While the Report clarifies the situation in Bihar, it does not tell us the situation in the entire country. That would require a national survey. Therefore, now the pressure will increase on the Central Government to conduct and make public the data at the national level. That is the only way the caste composition of the total population can be known. This is required to make policies which can enable equitable shares in employment and education for different sections of the population.

    The increase in the proportion of extremely backward classes in the total population of Bihar should have been expected because of the prevailing poverty among them. Those who are poor have more children due to several reasons, like lack of education and awareness. Most importantly, for their social security in old age. The poor do not have savings; hence children constitute their old-age social security. They have more children to ensure at least one child survives till their old age. Also, more children mean more earning hands in the family. As people become more prosperous, people produce fewer children. The economic condition of the middle class and the well-off are relatively better, so they have fewer children, and their population grows less.

    The question arises: what is the likely consequence? Upper caste people are worried that since extremely backward castes constitute a higher proportion of the population, their demand for reservation will increase.

    Growing Unemployment a Crucial Factor

    I believe that if we had given more importance in employment and education to the extremely backward castes from the beginning, today’s situation would not have arisen. Reservation makes no difference if jobs are available in sufficient numbers. Reservation becomes critical when employment generation is weak. When there is a lack of adequate employment, a dispute arises over reservations as to who will get how much employment. At present, due to large unemployment among the educated youth and few available government jobs, the demand for reservations has increased.

    The problem has been growing because, after independence, we have adopted the top-down and trickle-down policy. The result has been that the upper sections of society have cornered most of the benefits while the marginalized sections have received very little benefits. Disparities have grown, and so have expectations, thereby raising the level of conflict in society. The use of more advanced technology in every sector has displaced labour and contributed to increasing unemployment. The Agriculture sector, which has the most employment (46%) in our country, has seen increased use of tractors, harvester combines, threshers, potato digging machines, etc., thereby reducing the need for employment and displacing workers. This is also true of manufacturing and services, like banking.

    Impact of Government Policies

    The government is also fueling this change by promoting the growth of the capital-intensive organized sector at the expense of the unorganized sector (which employs 94% of the workers). For example, the government reduced the tax rates on the corporate sector and rolled out the PLA scheme while cutting allocations to the National Rural Employment Guarantee Scheme. Allocations to education and health sectors have also been kept low and cut, even though both these sectors generate more employment. Due to these policies, most of the investments are being made in big projects, like railway freight corridors, where human labour is being replaced by big machines.

    The result is rising inequality, frustration, alienation and sharpening social conflict. Therefore, the parties pursuing social justice politics for the lower classes and the people themselves have been demanding greater reservation for the backward castes according to their proportion in the population. With Bihar’s caste survey becoming public, the demand for conducting such surveys in other states and nationally will become more vociferous. The demand will also arise that the maximum limit of reservation, which is fixed at 50 per cent by the Supreme Court, should be increased. But reservations will be only for a few million jobs while the need is for work for tens of millions. So, the real issue is the generation of enough employment and good education for the children of the poor.

    Political Implications

    Opponents of caste surveys argue that castes with a lower proportion in the population will start competing to increase their population by bypassing family planning policies. But I don’t accept this. Around the world, as family prosperity increases and education levels rise, people have fewer children. The well-off families with less share in the population are already sending their children abroad for education and employment, which may accelerate.

    Bihar’s caste survey data is bound to impact national politics. All political parties would like to use it in their own way, and Mandal-Kamandal politics will intensify in the country. But, the situation for BJP has changed compared to the 1990s since in the last few elections, it has wooed the votes of backward castes. The issue of reservation and demand for an increase in the maximum prescribed reservation limit will intensify. The ruling party will be reluctant, but in view of the electoral arithmetic, it will also not oppose it vociferously. It will hope that the Supreme Court will not agree to increase the limit. Further, it will try to divert the public attention towards issues like Sanatan dharma, terrorism and threats from China-Pakistan.
    The lesson is that when socially correct policies are not implemented in a timely manner, social strife and alienation spread, and the nation is forced to implement sub-optimal policies.

    This is a translation of the article in Hindi published earlier in Amar Ujala.

  • Bihar’s Prohibition is Not Working. Historically it Seldom Does

    Bihar’s Prohibition is Not Working. Historically it Seldom Does

    Many states in India have introduced and then rescinded prohibition after struggling with the aftermath of such an action, including the ravages of death and various instantaneous ailments due to the consumption of illicit liquor.

    The recent illicit liquor tragedy in Bihar has proved, if proof is needed yet again, that banning alcohol has seldom had the desired results. Besides, historically, delusional zeal and overwhelming optimism embedded in false notions of success, by themselves, have never yielded any positive returns as regards the banning of alcoholic drinks.

    The catastrophe in the present case linked to the consumption of hooch (derived from hoochinoo, a word used by the Tlingit, a native ethnic group from Alaska) is not an isolated incident nor is it uncommon in India. Many hooch-related deaths have occurred in quite a widespread way through the length and breadth of India, particularly so in states where sale and, by extension, drinking alcohol, is forbidden by law.

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  • The state of Bihar!?

    The state of Bihar!?

    The Prime Minister in the run up to the Bihar assembly elections announced a Rs.50,000 crores package for the state. Just as he announced a Rs.100,000 crores package for Jammu and Kashmir that July. Bihar has a population of over 103 million and J&K has a population of 12.5 million.

    This is not a new story. Bihar has been systematically exploited by denying it its rightful and deserved share of central funds from the First Plan.

    That Bihar is India’s poorest and most backward state is undeniable. The facts speak for themselves. But what makes its situation truly unique is that Bihar is the only state in India where the incidence of poverty is uniformly at the highest level (46-70%) in all the sub-regions. The annual real per capita income of Bihar of Rs. 3650 is about a third of the national average of Rs.11, 625. Bihar is also the only Indian state where the majority of the population – 52.47% – is illiterate.

    But Bihar has its bright spots also. Its infant mortality rate is 62 per 1000, which is below the national average of 66 per 1000. But what is interesting is that it is better than not just states like UP (83) and Orissa (91), but better than even states like Andhra Pradesh and Haryana (both 66).

    Even in terms of life expectancy, the average Bihari male lives a year longer (63.6 yrs.) than the average Indian male (62.4 yrs) and the state’s performance in increasing life spans has been better than most during the past three years.

    Bihar has 7.04 mn. hectares under agriculture and its yield of 1679 kgs. per hectare, while less than the national average of 1739 kgs. per hectare is better than that of six other states, which include some big agricultural states like Karnataka and Maharashtra.

    Despite this, in overall socio-economic terms, Bihar is quite clearly in a terrible shape.

    As opposed to an All-India per capita developmental expenditure during the last three years of Rs.7935.00, Bihar’s is less than half at Rs.3633.00. While development expenditure depends on a bunch of factors including a state’s contribution to the national exchequer, no logic can explain away the per capita Tenth Plan size, which at Rs. 2533.80 is less than a third of that of states like Gujarat (Rs.9289.10), Karnataka (Rs.8260.00) and Punjab (Rs.7681.20).

    Simple but sound economic logic tells us that when a region is falling behind, not just behind but well behind, it calls for a greater degree of investment in its progress and development. It is analogous to giving a weak or sick child in the family better nutrition and greater attention. Only in the animal kingdom do we see survival of the fittest with the weak and infirm neglected, deprived and even killed.

    But instead of this we see that Bihar is being systematically denied, let alone the additional assistance its economic and social condition deserves, but also what is its rightful due.

    From the pitiful per capita investment in Bihar, it is obvious that the Central Government has been systematically starving Bihar out of funds. Quite obviously Bihar has also paid the price for being politically out of sync with the central government for long periods. The last one was for a dozen years from 1992 to 2004. For the last one year Bihar had a government in New Delhi that was supposed to be favorably disposed to the regime in Patna.

    Quite clearly states that are in political sync do much better in terms of central assistance. Lets take a look at how Andhra Pradesh, a state that has stayed largely in political sync with New Delhi, has fared in the past few years. In terms of grants from the Central Government (2000 to 2005), Bihar fared poorly receiving only Rs. 10833.00 crores while AP got Rs. 15542.00 crores.

    Bihar has also been neglected as far as net loans from the center are concerned. It received just Rs.2849.60 as against Rs.6902.20 received by AP from 2000-02. It’s only in terms of per capita share of central taxes do we see Bihar getting its due. This gross neglect by the central government is reflected in the low per capita central assistance (additional assistance, grants and net loans from the center) received by Bihar in 2001. While AP received Rs.625.60 per capita, Bihar got a paltry Rs.276.70.

    The results of the economic strangulation of Bihar can be seen in the abysmally low investments possible in the state government’s four major development thrusts. Bihar’s per capita spending on Roads is Rs.44.60, which is just 38% of the national average, which is Rs.117.80. Similarly for Irrigation and Flood Control Bihar spends just Rs.104.40 on a per capita basis as opposed to the national average of Rs.199.20.

    Now the question of how much did Bihar “forego”? If Bihar got just the All-India per capita average, it would have got Rs. 48,216.66 crores for the 10th Five Year Plan instead of the Rs.21,000.00 crores it has been allocated.

    This trend was established in the very first five-year plan and the cumulative shortfall now would be in excess of Rs. 80,000.00 crores. That’s a huge handicap now to surmount. Then it would have got Rs. 44,830 crores as credit from banks instead of the Rs. 5635.76 crores it actually got, if it were to get the benefit of the prevalent national credit/deposit ratio.

    Similarly Bihar received a pittance from the financial institutions, a mere Rs.551.60 per capita, as opposed to the national average of Rs.4828.80 per capita. This could presumably be explained away by the fact that Bihar now witnesses hardly any industrial activity. But no excuses can be made for the low investment by NABARD. On a cumulative per capita basis (2000 to 2002) Bihar received just Rs.119.00 from NABARD as against Rs.164.80 by AP and Rs.306.30 by Punjab. It can be nobody’s argument that there is no farming in Bihar.

    If the financial institutions were to invest in Bihar at the national per capita average, the state would have got Rs.40, 020.51 crores as investment instead of just Rs.4571.59 crores that it actually received.

    Quite clearly Bihar is not only being denied its due share, but there is a flight of capital from Bihar, India’s poorest and most backward state. This is a cruel paradox indeed. The cycle then becomes vicious. This capital finances economic activity in other regions, leading to a higher cycle of taxation and consequent injection of greater central government assistance there. If one used harsher language one can even say that Bihar is being systematically exploited, and destroyed by denying it its rightful share of central funds.

    To even make a dent on the abysmal state that Bihar is now in, Bihar will need at least twice what it gets from the Centre, as of yesterday.

     

    Mohan Guruswamy is a prolific commentator on politics, economics, development and governance. He is a trustee of TPF. The views expressed are the author’s own.