Economic Growth and Poverty Reduction in Bihar During 2004-05 to 2011-12: Examining the Contradictions

Abstract

The Indian state of Bihar registered an impressive reduction in poverty ratios between 2004-05 and 2011-12. The reduction was even more pronounced in the rural areas despite the dismal performance of the agricultural sector, leading commentators to call the phenomenon ‘Bihar miracle’. In this paper, we study a set of interrelated parameters of rural well-being, most notably the changes in the structure and sectoral distribution of employment and consumption patterns. Food security and the dynamism of the agriculture sector in terms of production, per capita availability of food grains and yield rate, is also analysed. Juxtaposing employment patterns against the pre-2004-05 period and noting the perverse developments that have unfolded in the domain of consumption reveal patterns that are difficult to reconcile with the poverty reduction rates. Per capita expenditure on food is declining across all classes and the labour force is getting more and more marginalised. All these have serious implications for the well-being of a large portion of its population and leads us to question the definition and methodology of estimating poverty figures.