We have two very widely discussed news about Bihar in the first month of New Year 2010:
News1: Bihar’s GDP grew by an astounding 11.03% in the five-year period between 2004-05 and 2008-09, much more than the national average of 8.49%, and ranked second only to Gujarat.
News2: Nitish Kumar was decorated with “Business Reformer of the Year Award” from Economic Times.
These news items will surely make all Biharis proud. But as usual, Bihar’s GDP growth and Nitish Kumar’s award, both have received criticisms from various quarters especially Bihar’s opposition parties RJD, LJP and Congress. The very data supplied by Bihar Govt to Central Statistical Organisation (CSO) have been questioned. It is also said that Bihar’s GDP grew because of money pumped to Bihar by the UPA Govt at the Centre and Nitish Govt should not be given any credit for it. It has also been argued that there has not been any new business investment in Bihar and therefore there is no case for any award for business reforms or accepting projected high growth rate.
In a recent interview with a TV-channel, Arjun Sengupta, former member of PM’s Economic Advisory Panel and currently Member of Parliament says that the reason why one can feel that there must be something wrong in these data is a sudden jump. For example, in the case of agriculture, growth of 7.5% over the five years is substantially higher than most other places. In industry, it jumped from negative to about 22% and in case of construction it is 45%. It’s a very large number. He, however, says he would love to believe the data because these indicate that we are moving into a new era of development.
However, N K Singh, former member of Planning Commission and currently Rajya Sabha Member from Janta Dal (U) says that improved governance factors, improved security scenario and improved overall climate fostering gainful economic activity have triggered the growth, but it has surpassed his expectation of 8-9%.
Economist Nawal Kishore Chaudhury wonders how the state has recorded double digit growth when last year’s growth rate was just 5%. Bihar had recorded negative growth in the farm sector and per capita social spending was just $32, one of the lowest in the country.
Social scientist Shaibal Gupta says that since Bihar’s development base is abysmally low, even a small investment here results in impressive growth in percentage terms.
Whatever be the comments and from whatsoever sources they come, the two news items cited above have in fact rocketed the popularity index of Nitish Kumar and shaken every major political party. Everyone is trying to register their presence among the masses. RJD bundh call for Jan 28 is supported by LJP. Plans are afoot to fill jails in protest against people’s burning issues. Political leaders are moving to the colonies of the downtrodden and are trying to identify themselves as their messiah. Congress has started campaigns to re-
establish their lost base in Bihar.
The basic point is that the ultimate beneficiary is the common man when all political parties have same agenda of growth and development. So, special thanks to Nitish Kumar for opening the eyes of all political parties.
Dr P R Prasad, Patna