Nitish Kumar must keep development focus
Following months of high-pitched campaigning, intense politicking, and a drawn-out polling season, now that the new Government in Bihar has been sworn into power, it is hoped that the focus of the State leadership will be on to the bigger task at hand: Delivering good governance and pushing ahead on the path of development and growth. Chief Minister Nitish Kumar, who returns for his third term at the helm in Patna, won his mandate because of his stellar record as an administrator and now he has high expectations to fulfill. Even his staunchest critics acknowledge that under Mr Nitish Kumar's leadership, Bihar has improved its performance across almost social and economic indicators in this past decade. However, without diminishing the value of the progress that has already been made, it is equally important to underline that Bihar still has a long way to go. The State is still home to a disproportionately large number of people living below the poverty line, it has a high rate of unemployment and its annual per capital income is the lowest among all 29 Sates. Economic and social inequality is yet another cause for concern. Against this backdrop, the new Government's priorities are obvious: First, accelerate economic development so as to create more jobs and improve overall standards of living; second, make smart investments in the public sector, particularly through large infrastructure projects, which in turn fuel economic activity, and third, keep the focus on education and health, which hold the key to prosperity in the long term. The seven-point agenda that Mr Nitish Kumar had presented in the run-up to the Assembly election reflected most of these priority areas. However, it is still to be seen how they are implemented and if they will be shorn of populist augmentations. A good example here is the promise to give `1,000 to every unemployed youth every month for nine months so as to help him or her find a job. Mr Nitish Kumar has been touting this proposal as proof of his commitment to youth development but it is difficult to see how such a handout, no matter how well-intentioned, can be good economic policy. Another example is the proposal to set up a venture fund for entrepreneurs. While this is a step in the right direction, the fund has to be part of a larger eco-system that encourages entrepreneurship — this will require institutional, legislative and administrative reforms. Similarly, the plan to impart technical training for the youth, though a good idea in itself, is hardly new and, in fact, has mostly been an empty slogan not just in Bihar but across the country. Mr Nitish Kumar has to go beyond the rhetoric to implement his plans. He has brought in a certain level of development; now, it is to be seen if he can move to the next level.
In this context, Mr Nitish Kumar's biggest challenge will be lalu Prasad and his Rashtriya Janata Dal, which is the single largest party in the State Assembly with 80 seats and 16 Ministers, compared to the 71 seats and 15 Ministers of the Janata Dal (United). As expected, the RJD has secured the Deputy Chief Minister's post and several important portfolios. Only time will tell how the power equation in Patna will affect Bihar's development trajectory but for now, given the RJD's jungle raj legacy, there is little scope for optimism.