Colonial exploitation, a feudal socio-economic structure and natural and technological factors left Bihar with large-scale poverty and mass deprivation. Plan after plan tried to change that. This page traces what the plans did, what they achieved, and why success was only partial.
Land reform1stTo abolish zamindariBihar was the first state in the country to abolish the zamindari system.
1951–56Rs 16.9First Plan outlayper capita for Bihar, against Rs 25.6 for all States.
Stagnation0.35%Per capita growtha year since the 1960s (1960–85).
2000s54.4→33.7%Poverty ratiofrom 2004-05 to 2011.
Ceiling laws1.53%Land distributedof cultivable land, against 20.51% surplus.
Instability20+Governmentsin Bihar from 1961 to 1990.
Part 1 · Introduction
How did Bihar become so poor, and what did seventy years of planning set out to do about it?
Where the poverty came from
Bihar went through a long period of exploitation under colonial rule. Combined with feudal socio-economic structure as well as natural and technological factors, the colonial rule resulted into large-scale poverty and mass deprivation of Bihar.
After independence government has taken steps in various 5-year Plans but the success is only partially achieved.
How to write this answer
The plan-by-plan steps (Parts 2 and 3) are government steps under five years plans to remove poverty in India which were also applicable in Bihar.
It is not the core demand of question. You can mention few important schemes and program under this heading. The core is the record (Part 4) and the reasons (Parts 5–7).
Poverty ratio, 2011
First Plan outlay per capita (Rs)
Example: Think of the Five-Year Plans as a national syllabus of development. Every state got the same chapters (land reform, industry, rural jobs, food), but how well a state learnt them depended on its own teachers: its administration, politics and society. That is why the same plans worked better in some states than in Bihar.
Part 2 · Government steps · First to Fourth Plan era
Poverty alleviation was one of the major objective of almost all the five year plans in India. The early plans bet on land reform and big industry.
The First Five-year Plan (1951–1956) mainly focused in the development of the primary sector. Emphasis was also given on the social services, rehabilitation of landless farmers.
Example: A land ceiling act fixes the most land one family may own; land above that limit is 'surplus' and is meant to go to the landless.
2nd FYP (1956 – 61), focused on rapid industrialization – heavy & basic industries. While the 3rd FYP (1961 – 66) aimed to make India a 'self-reliant' and 'self-generating' economy.
The rationing system was revived in the wake of an acute food shortage during the 1960s, prior to the Green Revolution.
Green revolution was introduced in 1966, leading to increase in food grain production. But, Bihar was kept out of this because of land fragmentation and lack of irrigation and other infrastructure facilities.
The nationalisation of bank was done in 1969 to boost financial inclusion and the formal credit system.
Part 3 · Government steps · Fifth to Twelfth Plan
From the Fifth Plan onwards, poverty became a direct target: minimum needs, rural self-employment, wage employment, food security and the right to work.
The Fifth Five-Year Plan (1974-79) laid stress on employment, poverty alleviation (Garibi Hatao):
Part 4 · Only partial success
These steps led to poverty reduction in Bihar. However, success was only partially achieved. The numbers tell the story decade by decade.
Example: If the economy grows 2.43% a year but the population grows 2.08%, each person is only about 0.35% better off each year: it would take some 200 years to double average income.
Rural poverty, 1957-58 → 1973-74
Fall in rural poverty, 1977–84
Per capita income growth, 1990s
Poverty ratio, 2004-05 → 2011
Part 5 · Reasons for persisting poverty (1)
Reasons for the persisting poverty and only partial success of the government steps in poverty elimination begin with the largest sector, agriculture.
Example: A 'benami' transfer puts surplus land in the name of a relative, servant or even a fictitious person, so on paper the landlord stays under the ceiling.
Ceiling land till 1990 ('000 ha)
Cultivable land (study)
Rent charged vs legal limit
Part 6 · Reasons for persisting poverty (2)
Industry went south and then went away with Jharkhand; and the schemes meant to reach the poor directly leaked on the way.
The measures taken for direct intervention for poverty removal like PDS, MGNREGA, Old age pension etc. have also produced unsatisfactory results, mainly due to maladministration and corruption.
Example: Leakage: grain issued for a village is sold in the open market on the way. Mis-targeting: a well-off family holds a BPL card while a landless labourer has none.
Example: Giving a family a loan for a buffalo is only step one; if nobody checks a year later whether the buffalo is alive and giving milk, the scheme cannot know whether the family escaped poverty.
The policy of 'freight equalization' was introduced in 1952 and remained in force until 1993. This policy further marginalized Bihar.
Part 7 · Reasons for persisting poverty (3)
Caste, patriarchy, unstable governments, criminalised politics and weak administration all blunted the plans.
Example: If a central scheme gives Bihar Rs 100 but the state spends only Rs 60 by the deadline, the remaining Rs 40 can go to a state that spent its share.
Lack of industrial culture etc.
Natural calamities like earthquake, flood, drought, Heat wave etc.
Thus, the measures related to poverty alleviation have not led to the desired result. Bihar is still the poorest state in India.
Though, under the Nitish Kumar government, the pace of economic development has picked up. But, Bihar has still long way to go to fully realise the constitutional goal of equal, just and prosperous state.
Exam preparation
Every question this page prepares you for, with the parts that answer it.
“Bihar has still long way to go to fully realise the constitutional goal of equal, just and prosperous state.”
Curated for BPSC, UPSC & State PCS Civil Services Aspirants | Bihar Economy Master Module
