Bloomberg News

No Jobs for Bureaucrats as India’s Bihar Bids to Curb Poverty

September 14, 2011

Sept. 15 (Bloomberg) -- Bihar’s chief minister, Nitish Kumar, who runs India’s poorest and one of its most corrupt regions, announced a novel bid to tackle endemic poverty: taking the state’s bureaucrats out of governing.

His administration placed advertisements in newspapers this week, seeking a team of professionals to manage a $1.3 billion annual budget for programs involving job creation, housing, infrastructure and microfinance. In Bihar, a state of 103 million people in eastern India at the heart of a nationwide battle with Maoist guerrillas who draw support from impoverished peasants, a third of the population live in poverty, the World Bank says.

“We are in the process of creating a new Bihar, and we are looking for people who want a challenge,” Santhosh Mathew, 50, the government official in charge of setting up the program, said in an interview yesterday. “There will be no back-seat driving” from government officials.

The state government will aim to set up the agency by December, recruiting about 32 people with a background in economic development. Bihar is hoping to lure talent from international bodies like the World Bank and the United Nations, according to Mathew.

Since Kumar was elected in 2005, Bihar’s fortunes have improved. The economy expanded 14.15 percent in the year to March 2011, the fastest among India’s states, according to government figures. Rates of robbery, kidnapping and murder have fallen, removing a stigma of lawlessness. In a state where caste and class allegiances had for more than a decade determined voting patterns, his government was returned to power in November by prioritizing development.

‘Alarming’ Corruption

“Theoretically this is not a bad idea, taking certain schemes outside the government structure and outsourcing it to private hands,” said Shaibal Gupta, secretary of the Patna, Bihar-based Asian Development Research Institute. It’s no guarantee of success though, he said

In India, government-run programs seeking to alleviate poverty are ridden by corruption. About two-thirds of the subsidized food intended for the poor fails to reach its target, according a report by the World Bank in May. Bihar has the lowest annual per-capita income of India’s 32 states and territories at 16,000 rupees ($340), according to a parliamentary reply in February.

Bihar was among the Indian states where people faced an “alarming level” of corruption in accessing government services, according to a 2008 study by Transparency International India and the New Delhi-based Centre for Media Studies.

--Editors: Mark Williams, Sam Nagarajan

To contact the reporters on this story: Bibhudatta Pradhan in New Delhi at bpradhan@bloomberg.net; Andrew Macaskill in New Delhi at amacaskill@bloomberg.net

To contact the editor responsible for this story: Hari Govind at hgovind@bloomberg.net; Peter Hirschberg at phirschberg@bloomberg.net


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