Capitalism and its need for Bihar

By Paras Nath Chaudhary

Capitalism, the system that triggers creative destruction, destroys old things and old arrangements and gives rise to the new ones. Forces of development are unleashed and values that promote change and growth are fostered. The market works wonders as it ensures the best possible allocation of available resources and takes care of other things as well. For example, it propels people into adopting modern norms of life such as discipline, punctuality, hard work, individual initiative and rational thinking. It is in this atmosphere that a lively civil society comes into existence that upholds freedom, human rights, individualism and other similar values.

It bears repeating that in the past, however, in a feudal criminalized atmosphere neither intervention nor the free market economy could really work in Bihar. Indeed, there obtained a complete cessation of all conceivable economic activities and if at all there was an economy in the state it derived from abductions and crimes. It is against this backdrop that unconventional solutions are called for. One of the few options available would be to allow the private capital to play its unimpeded role. However, once the economy has revived and things have got moving, the compulsive local political ideologues may resume their intellectual spat over the pros and cons of the political economy.

Given the present state of fast deteriorating socio-economic conditions in Bihar, it appears that only a strong dose of capitalism can save the state from degenerating into a barbaric stone age society.

While many states in India have leapfrogged to a comparatively better stage of development, conditions in Bihar have stagnated and have in fact started emitting stanching stink.

Look at some sample statistics: The number of people living below poverty line still, after decades of planning, continues to hover around 60% –a figure double the national figure of 30%; Per capita growth in gross state domestic product has counted about 1%, the lowest in the country, whereas Bihar’s population has increased by about 5% – a figure that is frightening. Educational system at all levels has been in a shambles. Infra-structure in general, has been non-existent and roads in particular have been in appalling disrepair. In sum, Bihar has become an acronym for an all-encompassing backwardness.

It is now generally recognized that the 15 long years that Lalloo Yadav was at the helm of affairs, the state as a political entity disappeared and administrative machinery not only lost the direction but was deliberately rendered dysfunctional. A parallel political culture fostered by criminals of all sorts, the political and caste mafia dons ensured that the simple and hardworking people of Bihar lost interest in democratic institutions and civil society norms.

Confronted with such a depressing scenario, the present Nitish regime is encountering all sorts of problems and hurdles. No wonder, his government has not been able to inspire confidence in its ability to govern and nothing worth mentioning has so far been achieved. People continue to remain disillusioned and insecure.

Conditions have come to such a sorry pass that knowledgeable people in Bihar now want some high voltage shock therapy administered to the body politic. For this the political decision makers will need to get out of the outdated mindset and look at available models of socio-economic development, which are both dynamic and less time consuming in terms of results.

One need also consider the merits of the evolving new model of “welfare capitalism,” or capitalism with a human face, which seems to be the dominant ideology of the early 21st century.

Technology-driven, the new face of capitalism relies on merit and a high level of efficient productivity. The vast natural resources that Bihar is endowed with, need to be exploited to the hilt within a time-bound framework to generate both employment opportunities as well as wealth for distribution among the masses. The problem of resources crunch can only be addressed through greater role for the corporate, both Indian and foreign. But to inspire a confidence in them a modicum of order and commitment to norms of a civil society is called for.

Globalization and knowledge economy are hard facts of the present day world and Bihar can not shy away from them. Armed with abundant human resource trained in mathematics and natural sciences. It can be an important hub of software development and a large number of Biharis can get absorbed in Information Technology sector. It will therefore be worthwhile to encourage this industry in state not only to greatly ease the unemployment situation but also to keep pace with times.

However, to sustain the capitalist way of development, Bihar will have to re-examine its attitude towards the English language. Communications skill in English is regarded an important input for development and Biharis have been notoriously short on this skill. It is noteworthy that the British tongue links people with the richest global heritage of knowledge and information and enables them to progress in life. Lack of it has hindered Bihar. The new government will therefore do well to promote the linguistic ability among the Biharis by establishing a network of institutions that offer special courses in English. It needs to be underlined that abolishment of poverty.