Caste-based census data was released in Bihar amid an atmosphere of celebration among the supporters of RJD and JDU, the two main ruling parties of Bihar. It was projected as if the state government had delivered some huge public welfare scheme. But the reality is that it is the caste politics in Bihar took the state’s economy to the bottom.
Bihar has been considered a poor state for decades now. It is one of the ‘bimaru’ (meaning ill) states. The acronym is obtained by joining the initials of backward states in north India including Bihar, Madhya Pradesh, Rajasthan, and Uttar Pradesh. All the development indices in these states would normally be on the lower side.
Between the 1980s and 2020s, there was a time when the economy of Bihar saw a reverse shift from a slowly growing phase to a declining phase before coming back to a nominal positive track. In the 1980s, Odisha was a state poorer than Bihar. And over these four decades, Odisha has maintained steady growth. Today Odisha has outgrown Bihar on economic indices.
According to a report by Shamika Ravi for ‘The Economic Times’, Bihar has consistently held the unfortunate distinction of being the most impoverished among large states in recent decades. However, it is worth noting that historically, this was not the case. In 1991, Odisha was even more economically deprived than Bihar. Hence, it is fitting to examine and juxtapose the experiences of the two most impoverished states, evaluating what has been gained and lost over the past four decades.
In the report authored by Shamika Ravi – a member of the Economic Advisory Council to the Prime Minister – this period of comparative consideration of the two states is divided into three parts viz. 1980 to 1991 (before the economic crisis), 1992 to 2002 (emergence of caste politics, economic reforms and division of states) and post-2002 (growth and development).
Between 1980 and 1991
The report cites that in 1980, Bihar held the title of the poorest large state, with a per capita GDP (at 2015 prices) of ₹12,553, trailing behind Odisha, which recorded ₹17,256—a gap of nearly 37%. However, despite this initial disparity, Bihar exhibited a robust average annual per capita GDP growth rate of 5.1%, outpacing Odisha’s slower growth rate of 1.4%. Consequently, due to Bihar’s significant economic growth throughout the decade, by 1991, its per capita GDP had exceeded that of Odisha, standing at ₹21,282 compared to Odisha’s ₹20,591.
Between 1992 and 2002
Despite Bihar initially having a higher per capita GDP than Odisha, this era marked a significant shift in the fortunes of the two states. The prevalence of caste politics and lawlessness also known as the Jungle Raj triggered an unprecedented reversal in Bihar’s average annual growth rate, plummeting from +5.1% (1980-1991) to -0.6% (1992-2002). In contrast, Odisha doubled its growth rate from 1.4% (1980-1991) to 3% (1992-2002). This divergence resulted in Bihar’s per capita GDP dropping by almost 33%, declining from ₹21,282 in 1991 to ₹14,209 in 2002.
Conversely, Odisha experienced a 31% increase, growing from ₹20,591 in 1991 to ₹26,881 in 2002. Factors such as caste politics, poor governance, and lawlessness pushed Bihar behind Odisha, widening the per capita GDP gap from +3.4% in 1992 to -47% in 2002.
2002 onwards
Bihar’s economic trajectory underwent a notable shift with a transition from caste politics and lawlessness to a renewed focus on agriculture and women’s well-being. In the post-2002 period, Bihar witnessed a remarkable average annual growth rate of 5.6%, propelling its per capita GDP from ₹14,209 in 2002 to ₹37,050 in 2019—an impressive 161% increase.
Concurrently, Odisha experienced a 4.7% average annual growth rate during the same period, leading to a surge in per capita GDP from ₹26,881 in 2002 to ₹86,287 in 2019—a substantial 221% growth. As of 2019, Odisha’s per capita GDP surpassed Bihar’s by 130%.
Numbers in 2023
The per capita Gross Domestic Product (GDP) of Bihar and Odisha as of 2023 is Rs 49470 and Rs 150676 respectively. Odisha’s per capita GDP is thus thrice that of Bihar.
Where did Bihar lag?
Through a counterfactual analysis of per capita GDP, projections were made based on the average annual growth rates achieved by Bihar and Odisha from 1980 to 1991. If Bihar had sustained its growth at the rate of 5.1%, the projected per capita GDP would have been ₹95,313 in 2019—significantly higher by 257% compared to the actual figure of ₹37,050. This stark contrast highlights the true opportunity cost incurred by Bihar due to regressive caste politics during the 1990s. Had Bihar sustained its economic progress from 1980 to 1991, it would have evolved into a markedly different state economically.
In contrast, if Odisha had maintained an annual growth rate of 1.4% (its average rate from 1980-91), the projected per capita GDP would have been ₹29,782 in 2019. This amount represents only 35% of the actual per capita GDP, which stood at ₹86,287 in 2019. This comparison underscores the potential growth that Odisha forewent by not matching the growth trajectory of the 1980-91 period. If Odisha had persisted in its lacklustre economic performance, it would currently hold the undesirable distinction of being the most impoverished state, surpassing Bihar.
Caste politics is the prime reason of Bihar’s misery
The impact of caste politics and lawlessness on the economy is clear. Bihar’s economic downturn during the 1992-2002 period, characterized by these challenges, led to a significant and lasting decline in prosperity, marked by a substantial drop in per capita GDP. This comparison with Odisha highlights Bihar’s ongoing challenges in fully recovering from the setbacks endured during that tumultuous decade. This decade is when Lalu Prasad Yadav was at the peak of his politics. Rashtriya Janata Dal was bringing together Muslim and Yadav votes to secure power in the state only to turn the democratic administration into a Jungle Raj.
Caste politics is back in Bihar
The recent political shifts in Bihar, veering towards caste politics instead of prioritizing economic growth, stand as a stark reminder of the potential repercussions. Contemplating the 1992-2002 period underscores the enduring costs borne by the weaker sections, women, and socially backward groups. It serves as a poignant reflection on the persisting challenges of caste politics and misgovernance, emphasising that they are enduring problems rather than solutions to economic and social backwardness. Despite numbers suggesting that caste politics has pulled Bihar back for a decade, politicians from Bihar resorted to the caste census in 2023.
Caste census in Bihar
As per data released by the Bihar government, 36.01% of the state’s population is categorised as belonging to the extremely backward class, while 27.12% falls under the backward class. The remaining 15.52% of the population is reported to belong to the unreserved or general category.
It’s important to note that the term ‘Extremely Backward Class’ refers to the EBC community, consisting of 130 castes and sub-castes in Bihar, a categorization that has long been on Nitish Kumar’s agenda. This separate classification aims at mobilizing non-Yadav backward castes, excluding OBC castes like Yadav and Kurmi.
The question arises whether two distinct groups, namely EBC and OBC, will be formed, each with its unique mobilization strategy. The answer to these questions remains uncertain, and only time will provide clarity. However, the possibility of joint fronts comprising various castes emerging against more influential castes within the OBC is a potential outcome, and similar experiments have been conducted in the past, suggesting a potentially accelerated process this time.
If OBC and EBC are amalgamated in Bihar, they collectively constitute 63%. The ‘Caste Census’ report mentions a total of 203 castes, with 196 of them being eligible for reservations.
Conclusion
In summary, Bihar’s economic journey reflects a series of ups and downs, with the state transitioning from being the poorest in the 1980s to a phase of decline in the 1990s marked by caste politics and lawlessness. The post-2002 period saw a revival, focusing on agriculture and women’s well-being. However, recent political shifts back towards caste politics raise concerns about sustained economic growth. The 2023 caste census introduces additional complexities, posing questions about potential social divisions. The future implications remain uncertain, and only time will unveil Bihar’s intricate interplay between caste dynamics, politics, and economic development.
