6/23/2017

Regional Consultation of Task Force on Elimination of Poverty

Bihar’s Perspective

6th May,2016

Samvad Bhawan , Patna

Bihar – An Introduction

• Bihar is India’s third largest state with a population of 10.4 crores,.

• It’s economy has grown at 11% per annum between 2004-05 and 2010-11 with agriculture and related activities growing at 4% p.a.

• Primarily rural and agrarian, with high

levels of landlessness and land fragmentation, high dependency on agriculture and high levels of seasonal migration.

• Three-fourths of the state prone to seasonal flooding.

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Poverty Challenges in Bihar

A) GROWTH vis a vis POVERTY REDUCTION

• Bihar, State has recorded impressive rates of growth > 10% since 2005

• Three estimates of the poverty line has been released by the Planning Commission during this period; based on the NSS data,

• In spite of exemplary growth between financial years 2004-05 and 2009-10, there was hardly any reduction in poverty. But that between 2009-10 & 2011-12, with similar growth rates, poverty declined by 20% .

• Agricultural output declined by 11% in 2009-10 as the state faced a serious drought.

Year Poverty %

2005-06 54.4

2009-10 53.5

2011-12 33.7

Poverty Challenges in Bihar

B) BANKING SERVICES

Bihar has the lowest density of banking among all States in India, with only

one bank branch for every 13 villages which works out to one bank branch every

35 sq km with 23000/ bank branch (national average of 12,000).

Out of 8463 Gram Panchayats in the State, about 5400 (64%) do not have a

single bank branch.

The credit–deposit ratio of scheduled commercial banks was 30% which has

gone up to 39% (national average of 78%)

C) INSTITUTIONAL FACILITIES

Low Literacy rate, Limited resources for skilling programs and absence of

Institutions for training in health and education sectors both in private and public

sectors

D) LIMITED PRIVATE INVESTMENTS AND INFRASTRUCTURE FACILITIES

Poverty Elimination Initiatives

AGRICULTURE SECTOR REFORMS

• Pioneer in constituting an agriculture cabinet with ministers from 17 departments to improve

coordination for implementation of agricultural projects

• Formulation and effective implementation Agriculture Road Map, with a prime focus on productivity and value chain development of small and marginal farmers .

• Enhanced Agriculture sector expenditures

FORMULATION OF MANAV VIKAS MISSION

• To identify, target and monitor social dimensions of development. It identified 20

indicators to capture outcomes required for allowing each individual to develop its fullest human potential

7 NISCHAY FOCUSING ON HDI AND SKILL DEVELOPMENT WERE

EMPHASIZED

DIFFERENT MISSIONS – MAHADALIT VIKAS MISSION, BIHAR STATE

WATER AND SANITATION MISSION & BIHAR GRAMSWARAJ MISSION WERE INITIATED.

Poverty Elimination Initiatives

EFFECTIVELY IMPLEMENTED NATIONAL FOOD SECURITY ACT AND SOCIAL SECURITY PROGRAMS WITH AN UNIVERSAL APPROACH

FOCUS ON WOMEN EMPOWERMENT AND GIRL’S EDUCATION THROUGH VARIOUS INITIATIVES

HOMESTEAD LAND TO LANDLESS POOR

EFFECTIVE IMPLEMENTATION OF HOUSING SCHEME

EFFICIENT IMPLEMENTATION OF MDM

ENACTMENT OF RTPS WHICH ENSURED POOR TO ACCESS THEIR ENTITLEMENTS ON TIME.

JEEVIKA – A Landmark Poverty Elimination Initiatives

ESTABLISHING “ JEEVIKA FRAMEWORK” FOR SOCIAL & ECONOMIC

EMPOWERMENT OF THE RURAL POOR WOMEN

JEEViKA OUTREACH

• Social Inclusion : Mobilized 57 lakh HHs into 5 lakh SHGs . 50% of the

poor still to be mobilized.

• Financial Inclusion : 2.14 lakh SHGs recd. credit linkage amounting to

Rs 1200 cr.

• Livelihoods promotion: Around 6.2 Lakh HHs adopted new

technologies for productivity enhancement , out of which 1.2 lakh HHs

produced were aggregated and linked with market for better price

realization.

• Challenge : NRLM has cut down the budget to almost 50% resulting in

decrease in Community Investment fund from Rs 60,000 to Rs 15,000.

SCALING UP JEEVIKA

• Scale-up the Jeevika SHG-bank linkage model which has worked well in under-banked areas and encouraged rural branches of banks which were making losses.

Its linkage with women SHGs, enabled them both access to credit regarded as “unbankable”, while also restoring the profitability of these banks .

Members of SHGs helped banking to understand and overcome many elements of market failure in the credit market by providing unimaginable credit intelligence to banks, as also recording near 100% rates of repayment based.

GOB has an ambitious target of forming 10 lakh SHGs in the state covering nearly 1.5 crore households, nearly 60% of the the rural HHs.

Several key livelihood initiatives could be implemented through this wide base of SHG membership.

Bihar’s Recommendations to NITI AAYOG

A. MEASUREMENT OF POVERTY

– Niti Ayog should develop national standards of basic needs of

individuals (Individual Entitlements) with focus to bridge, in a time

bound manner, the gap in those states that are below national average.

– Independent Commission for identification for poor

B. AGRICULTURE & ALLIED SECTOR Growth– Key to poverty reduction

C. CREATION OF OPPORTUNITIES FOR RURAL NON-FARM EMPLOYMENT

– strengthening rural infrastructure in terms of both roads and power,

– prioritize food and agro-processing sector

– major thrust to skill and entrepreneurship development

– capitalize on its strengths of sturdy labour force, alluvial soils, plentiful water and its

emerging livestock, fruits and vegetables sector.

Bihar’s Recommendations to NITI AAYOG

D. SPECIAL REGULATORY AND FISCAL MEASURES IN THE SHAPE OF SPECIAL TAX

CONCESSIONS would be needed to break the cycle of low industrialization and low

investment

E. DEDICATED MARKETING ORGANIZATIONS AND TIE-UPS WITH E-RETAILING

ORGANIZATIONS could revive traditional crafts which is driving fresh entrants in to the

sea of poor; specially in urban centers’.

D. BIHAR HEADQUARTERED COMMERCIAL BANK WILL MAKE A DIFFERENCE

E. SPECIALLY DESIGNED PROJECTS TO PROVIDE MINIMUM REQUIREMENTS OF

SHELTER (ALBEIT TRANSITORY) AND BASIC HUMAN EXISTENCE would be

necessary for ultra-poor who are forced to move to the city due to rural distress or loss of

their traditional occupations

Bihar’s Recommendations to NITI AAYOG

H. CASH TRANSFERS SHOULD BE ACCOMPANIED BY ANTI POVERTY PROGRAMS which,

empower the poor and creating concomitant conditions that allow them to translate their aspirations into tangible outcomes,

promote sustainable livelihood options with robust forward and backward linkages

enhance bargaining power in the market

strengthen quality of service provision

I. COMMISSION INDEPENDENT STUDIES for all anti poverty programs

J. ANTI-POVERTY PROGRAMS should factor in and MAKE PROVISIONS FOR SUPPORTING INFRASTRUCTURE (IT) necessary for effective delivery.

K. STRENGTHENING CAPACITY OF BLOCKS AND PANCHAYAT LEVELS FUNCTIONARIES

Bihar’s Recommendations to NITI AAYOG

L. ESTABLISHMENT OF NATIONAL INSTITUTIONS IN STATE to create

ground for better implementation of programs and projects.

M. DEDICATED CELL SHOULD BE CREATED IN NITI AYOG to monitor and

work with eastern states on elimination of poverty

N. ANTI POVERTY PROGRAMS IN STATE LIKE BIHAR SHOULD BE

ADEQUATELY FUNDED

O. MOBILIZATION & CAPACITY BUILDING OF POOR WOMEN INTO SHGS

AND THEIR FEDERATIONS for collective action to ensure their rights

and entitlements and enhanced bargaining power.

THANKS