Is landlockedness the reason for Bihar’s underdevelopment?

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It is predetermination play successful Bihar. While the Opposition often speaks astir the deficiency of improvement and industrialisation successful the State, successful its campaigns, the National Democratic Alliance, which is successful power, argues that a alteration of authorities volition bring backmost the ‘Jungle Raj’ of the earlier decade. What makes Bihar 1 of India’s astir underdeveloped States? Is landlockedness a crushed for its underdevelopment, arsenic immoderate argue? R. Nagaraj and Manindra Nath Thakur sermon the question successful a speech moderated by Saptaparno Ghosh. Edited excerpts:

It is often argued that Bihar is disadvantaged due to the fact that it is simply a landlocked State. Punjab and Telangana are landlocked arsenic well, and they are doing comparatively well. So however is being landlocked a constraint for Bihar?

R. Nagaraj: If you look astatine the occurrence of Telangana, particularly Hyderabad, it is mostly due to the fact that of the tertiary sector; it has thing to bash with geography. If a State has an educated workforce and bully infrastructure, being landlocked volition not beryllium an issue. Punjab, too, has a developed web of railways and roads, and has FCI (Food Corporation of India) godowns crossed the state to assistance with export of crops.

Manindra Nath Thakur: Let america look astatine Bihar’s salient exports: makhana, litchi, and corn. It has been hard for Bihar to transport these items from Patna to West Bengal oregon to immoderate port. These, alongside the vegetables Bihar exports, are perishable. Moreover, important costs are incurred owed to roadworthy transport; clip and region are important factors successful agrarian exports. One mode Bihar is attempting to resoluteness this contented is by launching projects on the Ganga. So, it is not that concerns astir being landlocked are not genuine, but they cannot beryllium cited arsenic a large crushed for the State’s economical backwardness.

Prof. Nagaraj spoke of the tertiary sector; you spoke of agrarian exports. Bihar has been assessed arsenic an agrarian economy. What should beryllium its imperative going forward: industrialisation oregon agriculture?

Manindra Nath Thakur: In the past 10 years, the Chief Minister has tried to prosecute with industrialists. However, industrialists person often raised concerns astir entree to ports, citing the request to walk much connected transportation. Having said that, I bash deliberation that successful this modern capitalist system, nary nine tin deliberation of surviving with conscionable cultivation products. While Bihar should capitalise connected its imaginable successful presumption of cultivation accumulation and processing, it indispensable yet modulation to industry. Without that, determination is nary future.

R. Nagaraj: Before we deliberation of high-technology and/or manufacturing industries, we should see wherever the comparative vantage lies. Four-fifth of Bihar’s labour unit is successful agriculture. But contempt Bihar having fertile onshore and irrigation facilities, cultivation productivity is mostly little than the nationalist average. Why is agriculture not picking up? That is the large question.

In the 1970s oregon 80s, a committee acceptable up nether the cultivation economist, S.R. Sen, was figuring retired however to instrumentality the Green Revolution to the Indo-Gangetic belt. It came up with a program for monolithic State investments successful infrastructure and electrification to guarantee that States person abundant h2o for the cultivation of wheat and rice. Surprisingly, the Green Revolution dispersed to the Malwa portion of Madhya Pradesh alternatively than the Indo-Gangetic belt. We indispensable recognize what went wrong.

I deliberation it volition beryllium some successful Bihar’s involvement and the nationalist involvement to get basal wheat, rice, and sugarcane cultivation going. This way, occidental India volition beryllium burdened less; it tin conserve much h2o and determination to value-added crops.

Manindra Nath Thakur: On the agrarian front, I don’t deliberation Bihar should repetition the mistake that Punjab made during the Green Revolution, which produced a h2o crisis. Although Bihar has abundant water, it whitethorn look the aforesaid consequences arsenic Punjab if h2o is overused. Moreover, expanding cultivation accumulation is linked with the dense usage of fertilizers and pesticides, creating a wellness crisis. Therefore, I don’t enactment the shifting of agriculture to eastbound India. Agriculture is not profitable anyplace successful the satellite unless it is heavy supported by the State.

R. Nagaraj: Madhya Pradesh was besides seen arsenic a backward State. It does not person the aforesaid h2o resources arsenic Bihar, yet the Green Revolution expanded there. Prosperity successful the Malwa portion is amazing. Therefore, I americium sceptical astir the thought that agriculture has nary potential.

So what bash you deliberation are the factors that contributed to Bihar’s underdevelopment?

Manindra Nath Thakur: Apart from what I person said, determination are besides notions that the Centre is not funny successful Bihar’s growth. The State, I think, is frozen successful its modulation from feudalism to capitalism. One of the reasons for this is the interior colonisation of the State. Earlier, Bihar supplied earthy materials, but owed to policies specified arsenic freight equalisation, it suffered significantly, and industries didn’t make locally, contempt having the vantage of earthy worldly availability. Bihar yet mislaid revenues and its earthy advantage. Now, with a proviso of labour from Bihar, cipher is funny successful processing the State.

R. Nagaraj: A commodity wherever freight equalisation was done and which benefited eastbound India was cement. Steel did not accrue the aforesaid advantage. Cement has dense transport costs compared to alloy truthful the freight equalisation argumentation for it helped eastbound India.

Furthermore, wherefore Biharis are leaving Bihar has nary constituent of capitalist conspiracy. In fact, erstwhile investments successful agriculture were made successful Bihar, migration to Punjab declined. It is wide that if radical person much options astatine home, they volition not determination out.

Literature often suggests that Bihar has a ‘socialist hangover’, and that entrepreneurship does not gully confidence.

R. Nagaraj: The socialist ideology successful Bihar is often equated with caste authorities and caste successful wide — basically, distributing constricted resources crossed assorted castes. If the absorption shifts to productive investment, it volition bash a batch of bully for Bihar. Policy indispensable absorption connected however to augment accumulation alternatively than looking astatine redistributing the constricted resources much equitably oregon successful a mode that helps radical enactment successful power.

Manindra Nath Thakur: Bihar has ne'er truly followed the socialist model. It besides failed to recognize the logic down India’s displacement to capitalism. Bihar is presently astatine a important disadvantage. For immoderate structural change, determination indispensable beryllium a coagulated committedness to reinvestment by the Union government. Unless that is done, the modulation to superior volition not instrumentality place. With respect to migration, if determination are bully moving conditions and a decent income, nary Bihari would similar to migrate. The magnitude of concern required to assistance Bihar determination retired of this ‘frozen transition’ signifier has not been made. It could beryllium linked to wide societal politics. One argument, arsenic Shaibal Gupta utilized to make, relates to the deficiency of a chiseled Bihari identity. Or arsenic Prashant Kishore says, of the conception of Bihari asmita.

Would peculiar presumption beryllium of immoderate assistance to Bihar?

R. Nagaraj: I americium not definite it would help. The bigger question relates to whether it volition beryllium utilised productively oregon not. Bihar lacks the authorities capableness to usage it. Whereas, if you springiness the aforesaid wealth to Andhra Pradesh oregon Tamil Nadu, they volition drawback it and usage it better.

Being among the poorest states, Bihar gets a sizeable magnitude of resources from the Finance Commission connected considerations of its backwardness and to bring greater equality among States. When those are not utilised, the wealth lapses. Many of these grants are performance-based — meaning the State indispensable rise its ain stock of resources to entree the afloat amount. This often doesn’t hap successful Bihar.

Manindra Nath Thakur: If a bully magnitude of wealth is invested, it would surely beryllium beneficial. However, nary alteration volition travel unless we marque definite that the wealth we reinvest is not appropriated by a tiny fig of radical — elites, politicians, and contractors. If the wealth is invested properly, it leads to superior formation. But this besides requires a benignant of societal revolution, 1 that raises nationalist consciousness that these funds are not escaped gifts, but much similar loans. People indispensable recognize that we request to rebuild and fortify our nine successful bid to repay that investment.

About authorities capableness – galore backing packages see a clause requiring the authorities to lend a information of the investment. Now, accidental you springiness maine ₹100 and archer maine that I person adhd to it to utilise the amount. I can’t bash that arsenic I don’t person the money. In a mode that amounts to forcing maine not to usage the money. The peculiar presumption mightiness beryllium of assistance — it mightiness region these conditions and let america to entree the enactment without being held backmost by constricted authorities capacity.

Listen to the conversation

R. Nagaraj, Economist and retired prof from the Indira Gandhi Institute of Development Research, Mumbai; Manindra Nath Thakur, Professor , Centre for Political Studies, JNU, Delhi

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