Wednesday 23 September 2015

Bihar Elections: Jungle Raj and All That

As the Bihar Assembly elections approach, claims and counter-claims have begun to fly thick and fast.  Chief Minister Nitish Kumar has projected the development work that he has accomplished in Bihar[i] while the BJP has sought to counter this with the report of its think tank which debunks his achievements.[ii] Of course, the BJP has to walk a thin line since it was Nitish Kumar’s JD(U)’s partner till as late as June 2013. Hence, the main force of BJP’s attack is that Bihar has suffered since it split with the JD(U). Arun Jaitley delivered what he thought was a coup de grace when he said “What is there to debate? This debate is over. Gujarat is number 1 and Bihar stands at 21”.[iii] This is almost like the USA telling India “Your per capita income is barely 3% of my per capita income. Debate over”. Such statements, while they grab headlines, are generally devoid of any substance.
There is no doubt that Bihar starts with a massive disadvantage. It has been quite easily one of the worst performing states. The question to be asked is whether the state is showing signs of progress. If there has, in fact, been some progress, it might be good strategy for the BJP to claim some credit since it was in alliance with the ruling JD(U) for much of Nitish Kumar’s tenure. It has been opposed to JD(U) only for the last couple of years. Is it possible that all that the alliance might have achieved over so many years would have unraveled in the last two? If it has, indeed, unraveled in the last two years, then it speaks pretty poorly about the governance structures and institutions that the BJP would have helped put in place. Surely, that cannot redound to the credit of the BJP. But the BJP and, indeed, all political parties in India, work on the principle of voter myopia. It is the belief of political parties that voters will not remember anything that happened in the distant past and would be entirely swayed by claims and counter-claims being bandied about here and now.
In this note I will present some facts about Bihar and compare these to two states: Gujarat and Maharashtra. In many ways, Gujarat and Maharashtra are the best performing of all Indian states. Gujarat is the showpiece state of the BJP, while Maharashtra has had a Congress-led government till the recent change. At first blush, this comparison seems unfair. Even without looking at the facts, most people are likely to conclude that Bihar is bound to perform worse than Gujarat and Maharashtra. But this note will show that sometimes data can spring some surprises. Bihar has been a victim of bad press for decades, some of it fully deserved but, as we will see below, things are changing.
State of the Economy
I first look at the size of Bihar’s economy relative to that of Gujarat and Maharashtra as well as India as a whole. See Table 1.
Table 1: Total Production in Three States and India
                                                                                                (Rs. Billion)

Bihar
Maharashtra
Gujarat
GDP: India
2004-05
1,212.10
3,822.04
1,867.91
29,714.64
2005-06
1,375.39
4,154.80
2,033.73
32,530.73
2006-07
1,343.14
4,709.29
2,337.76
35,643.64
2007-08
1,480.66
5,346.54
2,533.93
38,966.36
2008-09
1,651.51
5,948.32
2,812.73
41,586.76
2009-10
1,775.41
6,101.91
3,003.41
45,160.71
2010-11
1,903.98
6,669.44
3,341.27
49,185.33
2011-12
2,196.62
7,420.42
3,675.81
52,475.30
2012-13
2,370.70
7,777.91
3,957.38
54,821.11
2013-14
2,594.32
8,258.32
4,272.19
57,417.91
Note: Figures for the states are Gross State Domestic Product, the state-level equivalent of GDP
Clearly, Bihar is a much smaller economy as compared to the other states. It seems reasonably clear that Bihar has lagged behind Maharashtra and Gujarat. In 2004-05, Bihar’s GSDP was 32% of Maharashtra’s GSDP (65% of Gujarat’s GSDP) while in 2013-14, it was 31% of Maharashtra’s GSDP (61% of Gujarat’s GSDP). The gap between Bihar and other two states seems to have widened in absolute terms.
Is there hope for Bihar to catch-up with Maharashtra and Gujarat? The convergence hypothesis[iv] states that if a poor economy is to catch up with a relatively richer one, it should, at the very least, grow faster than the richer states. Does Bihar show any sign that this minimum requirement of convergence is being met?

Table 2: Rates of growth of GSDP
                                                                        (%)

Bihar
Maharashtra
Gujarat
2004-05
0.08
7.70
13.78
2005-06
12.64
8.35
8.50
2006-07
-2.37
12.53
13.93
2007-08
9.75
12.69
8.06
2008-09
10.92
10.67
10.44
2009-10
7.23
2.55
6.56
2010-11
6.99
8.89
10.66
2011-12
14.30
10.67
9.54
2012-13
7.63
4.71
7.38
2013-14
9.01
5.99
7.65
Since 2007-08, Bihar has been growing, atleast, as fast as Maharashtra and/or Gujarat (with the exception of 2010-11). In fact, Bihar had the highest rate of growth among all states of India in 2013-14. The rates of growth for Bihar since 2007-08 are truly impressive even if one allows for the small base from where the state is starting off. Of course, it still has a very long way to go before it can catch up with the other two states. But, in the meantime, the government of Bihar can take some credit for the performance of the state’s economy.
In per capita terms as well, Bihar has been performing well. See Table 3.

Table 3: Rate of growth of per capita GSDP
                                                                   (%)
Bihar
Maharashtra
Gujarat
2004-05
-1.03
6.59
12.67
2005-06
11.53
7.24
7.40
2006-07
-3.48
11.42
12.83
2007-08
8.64
11.59
6.95
2008-09
9.81
9.56
9.33
2009-10
6.13
1.44
5.45
2010-11
5.89
7.79
9.55
2011-12
10.33
8.56
6.72
2012-13
-1.53
0.69
1.36
2013-14
7.91
4.89
6.55
Since 2007-08, Bihar has performed commendably in all years except 2012-13. But, to be fair, even Maharashtra and Gujarat performed poorly on 2012-13. Once again, much credit is due to the government for pushing the state out of its low-level equilibrium trap in which it had found itself for many, many years.
Jungle Raj?
Prime Minister Modi, while campaigning in Bihar, called for the end of ‘jungle raj’ that has thrived under the Nitish Kumar government.[v] Bihar had, indeed, become synonymous with violence and corruption at the time that Nitish Kumar took office in 2005. See Rohan Mukherjee’s article for a good description of the steps taken by Nitish Kumar to tackle this problem.[vi] Mukherjee describes the success that was achieved over the period 2005-09 as a result of the measures taken. BJP’s Policy Research Centre, however, points out that Bihar suffered after the JD(U) split with the BJP in 2013.[vii] It is claimed that Bihar’s rate of growth fell in 2013-14 and that crime increased.[viii] Tables 2 and 3 above show no evidence of a decline in performance of the state after the BJP parted with Nitish Kumar. Let us see if there is any evidence of increase in crime.
I first consider all cognizable crimes. Table 4 presents rate of cognizable crime.[ix]
Table 4: Number of Cognizable Crimes per 100,000 Population
1995
2004
2014
Bihar
121.8
122.4
174.2
Gujarat
276.9
197.3
213.3
Maharashtra
273.3
173.3
212.3
All States
181.9
165.8
220.5
Quite surprisingly, for each of the three years for which data have been presented, only Bihar has a rate below the all states average. There has been a disturbing rise in the rate from 2004 to 2014, but this is true for Gujarat and Maharashtra as well.
Focusing on all cognizable crime can be misleading since it includes violent as well as non-violent crime such as cheating, criminal breach of trust and counterfeiting. It makes sense, therefore, to focus on violent crime. In the next few tables, I present information in specific violent crimes.
Table 5: Number of Murders per 100,000 population
1995
2004
2014
Bihar
5.32
4.47
3.34
Gujarat
3.21
2.08
1.82
Maharashtra
3.38
2.65
2.27
All States
4.09
3.10
2.73
Clearly, Bihar does worse than the other two states as well as the all states average. But is the rate of murder in Bihar the worst in India? Not at all and numerous states do worse than Bihar in 2014: Chhattisgarh (3.9), Haryana (4.1), Jharkhand (5.0), Odisha (3.5) and Telangana (3.6).
Table 6: Number of Attempted Murders per 100,000 population
1995
2004
2014
Bihar
4.84
3.39
4.30
Gujarat
1.72
0.88
1.23
Maharashtra
1.56
1.44
2.22
All States
3.21
2.56
3.36
Once again Bihar does worse than Gujarat and Maharashtra and, barring Odisha (5.6), it is the worst performer in this category in 2014. 
Table 7: Number of Rapes per 100,000 population
1995
2004
2014
Bihar
1.38
1.57
1.11
Gujarat
0.69
0.63
1.37
Maharashtra
1.59
1.36
2.92
All States
1.48
1.65
2.83
There has been a persistent decline in rate of rapes in Bihar while the trend has been in the opposite direction for Gujarat and Maharashtra, both of which show a poorer record than Bihar. There are many states with a worse record than Bihar in 2014: Andhra Pradesh (1.9), Chhattisgarh (5.7), Goa (5.0), Haryana (4.4), Himachal Pradesh (4.0), Madhya Pradesh (6.7) and Rajasthan (5.3).
Table 8: Number of Kidnappings per 100,000 population
1995
2004
2014
Bihar
2.18
3.86
6.44
Gujarat
2.51
2.12
4.42
Maharashtra
1.35
1.03
3.22
All States
2.12
2.06
5.73
Kidnapping is certainly a major issue in Bihar and its rate is well above that of Gujarat and Maharashtra. But it is worth pondering over why the rate has doubled in Gujarat between 2004 and 2014 and tripled in Maharashtra over the same time period. There are states which perform worse than Bihar 2014: Chhattisgarh (7.9), Goa (7.9), Haryana (11.5), Madhya Pradesh (10.3), Odisha (7.3) and West Bengal (6.6).
What can one conclude after looking at the data on crime in Bihar and comparing this with other states? The proverb “give the dog a bad name and hang him” comes to mind. Bihar has acquired a reputation as a lawless state and, even though the situation is changing, and even though other states have been performing worse than Bihar on some indicators, jaundiced views are difficult to overcome. Hence, there is hardly a murmur of protest when the pejorative “jungle raj” is hurled at Bihar. With such high rates of rapes and kidnappings, why is the epithet “jungle raj” not applied to Madhya Pradesh or Haryana or Odisha?
Conclusion
The main conclusion that I draw at the end of this note is that entrenched prejudices do not die easily. Certainly, Bihar had a well-justified reputation as a basket case in terms of economic performance and crime and it is still not a state that is performing well consistently. However, it is important to recognize the efforts that have been made in the last decade to improve the situation.
Separately, I am uncomfortable with Union cabinet ministers jumping into the fray and making strongly partisan statements directed at elections in Bihar. When the Indian Finance Minister gloats that Bihar is ranked number 21 in terms of ease of doing business, it is a bit disturbing. Should it not be his responsibility, as Finance Minister of the entire nation, to work along with the government of Bihar (whichever may be the ruling party in the state) to improve the situation? It is a similar situation when the BJP fields Narendra Modi as its star campaigner. I realise that BJP needs to do all it can to win elections and Modi is its best bet. We saw what happened when Modi stayed away from campaigning during the Delhi elections. So, when Modi labels Bihar as jungle raj, is it not his responsibility, as Prime Minister of the country, to help improve the situation, given that the state is a significant part of the nation he rules over? Is it too much to expect Union ministers to rise above partisan politics?
In some ways the recent complaint by the Congress to the Election Commission about the Prime Minister’s radio show “Mann ki baat[x] captures the point I have raised above. Of course, the Congress was more concerned with muting the oratory of Narendra Modi against which the party was quite helpless. The Congress had absolutely nothing in common with the issue that I am concerned about. The Election Commission allowed the radio show to go on with the proviso “…nothing is said [in the radio show] that may be construed as inducement to voters or having an impact on poll-bound Bihar where model code of conduct is in force till November 12”.[xi] In effect, the Election Commission was reminding Narendra Modi that only his persona as Prime Minister was to be revealed during the radio show and not his persona as BJP’s election campaigner. When Narendra Modi addresses an election rally in Bihar, exactly the opposite situation should prevail: only the persona of BJP’s star campaigner should be revealed while that of Prime Minister should remain hidden. Does this happen? Does anyone believe the fiction that a mere BJP functionary is addressing the rally and not the Prime Minister? How does a voter distinguish the two personas of the same individual, Modi as Prime Minister and Modi as BJP campaigner? At the very least, the security that surrounds Narendra Modi would remind the audience that the Prime Minister is present at the rally. The Election Commission’s diktat about keeping the two personas separate just does not work at an election rally and the audience listens to and reacts to the Prime Minister’s criticism and diatribes directed at Nitish Kumar and JD(U). This, as I have stated above, I find deeply disturbing. Is it possible to imagine a law that prohibits a Union minister, including the Prime Minister, from campaigning in assembly elections?





[iii] http://www.ndtv.com/bihar/debate-settled-gujarat-is-1-bihar-21-arun-jaitley-tells-nitish-kumar-1218747
[iv] http://www.ssc.wisc.edu/econ/archive/wp2003-06.pdf
[ix] All data in this section are from the National Crime Records Bureau (http://ncrb.gov.in/).  
[x] http://www.ndtv.com/india-news/ban-pm-modis-mann-ki-baat-till-bihar-polls-are-over-congress-to-ask-1218111
[xi] http://www.newindianexpress.com/nation/Election-Commission-Approves-Airing-Modi%E2%80%99s-Mann-Ki-Baat-During-Bihar-Elections/2015/09/18/article3034850.ece