Is landlockedness the reason for Bihar’s underdevelopment?, Pg11

Key Highlights:

• The debate surrounds Bihar's underdevelopment, with arguments focusing on landlockedness, lack of industrialization, and governance issues.
• Bihar's prominent exports include makhana, litchi, and corn, facing transportation challenges to other states and ports.
• Despite fertile land and irrigation, Bihar's agricultural productivity remains below the national average.
• Experts suggest freight equalization policies historically disadvantaged Bihar by hindering local industrial development.
• The discussion includes whether special status would benefit Bihar, considering the state's capacity to utilize funds effectively.

Detailed Insights:

• Landlockedness is debated as a constraint, with examples like Punjab and Telangana showing that educated workforce and infrastructure can overcome this limitation.
• Industrialists express concerns about access to ports and increased transportation costs, hindering industrialization efforts in Bihar.
• Green Revolution strategies that benefited regions like Malwa in Madhya Pradesh bypassed the Indo-Gangetic belt, raising questions about agricultural development in Bihar.
• Migration from Bihar is linked to a lack of local opportunities, suggesting that investments in agriculture could reduce outward migration.
• Socialist ideology in Bihar is sometimes associated with caste politics, diverting focus from productive investments and economic growth.
• Internal colonization and historical policies like freight equalization are cited as factors that hindered industrial development in Bihar.
• State capacity and the ability to co-contribute to funding packages are challenges that limit Bihar's access to financial support.

Key Concepts Involved:

• Freight Equalization: A policy that makes the price of a commodity uniform throughout a country, regardless of transportation costs.
• Green Revolution: A period of significant increase in agricultural production due to the introduction of high-yielding varieties and modern techniques.
• State Capacity: The ability of a state to effectively plan, implement, and enforce policies and provide public goods.