BELLWETHER PROJECT: BIHAR IS MORE THAN JUST CROPS

C O N F I D E N T I A L SECTION 01 OF 06 NEW DELHI 001446 SIPDIS SIPDIS E.O. 12958: DECL: 03/21/2017 TAGS: PGOV PINR PREL PHUM ECON SOCI KDEM KISL IN SUBJECT: BELLWETHER PROJECT: BIHAR IS MORE THAN JUST CROPS AND ROBBERS - PART I REF: 06 CALCUTTA 0556 NEW DELHI 00001446 001.2 OF 006 Classified By: Political Counselor Ted Osius for reasons 1.4 (b and d) ¶1. (SBU) Summary: For the last two decades, Bihar was ruled by a kleptocratic and corrupt government, suffered from discriminatory central government policies, and was mired in caste and class-ridden social divides. Despite its Buddhist sacred sites, bountiful rivers and fertile soil, Bihar has failed to become one of India's most abundant breadbaskets or generate a significant tourism economy. Education and health care are grossly inadequate. Bihar is commonly asserted to be the most backward, least developed and most hopeless Indian state. The third biggest in terms of population, it fares poorly on almost every scale of human development. However, there is a new Janata Dal (United) (JDU) government in place, that is part of the BJP/NDA alliance, and Chief Minister Nitish Kumar has initiated much-needed changes. His administration is fixing the roads and extending railway networks - the most visible symbols of Bihar's efforts to move forward - seeking investment, developing public-private partnerships and working to improve schools and health care. Most critically, development now figures as a key issue in the political discourse. Biharis, for the first time in decades, look to the future with hope. If Kumar's performance in Bihar continues its upward trajectory, it may positively affect the NDA prospects in the 2009 national elections. End Summary. ¶2. (SBU) This another in a series of cables in the bellwether project launched by New Delhi's POL and ECON sections in September 2006 to take the economic and political temperature in states over the next year. Previous reports covered Punjab, West Bengal, Gujarat and UP. Since Bihar is often cited as the worst India has to offer, New Delhi and Kolkata PolOffs and POL FSNs revisited the state to reconcile Bihar's reputation with its reality. During four days of meetings, Missionoffs met with NGOs, government officials, members of the opposition party, senior bureaucrats, university administrators, journalists, businessmen, human rights activists and local Biharis. This three-part cable reflects the collaboration between Delhi and Kolkata. -------------- Bihar: A State of Disrepute -------------- ¶3. (SBU) Despite its worldwide renown for being the region NEW DELHI 00001446 002.2 OF 006 where the Buddha attained Enlightenment, Bihar's unflattering national and international reputation is not entirely undeserved. Regional disparities in India are worrying and the gap between Bihar and other parts of India remains immense in many key areas. Bihar has a per capita income of just 94 USD per year (compared to India's average of 255 USD). Some statistics suggest that only six failed African states that suffer from civil strife and regional instability have worse developmental indexes. Over half of all adults are illiterate and only one third of the women can read and write. Approximately 42.6 percent of Bihar's people live below the official Indian poverty line of less than 2 USD per day. ¶4. (C) For decades, caste and crime went together in Bihar like bacon and eggs. Their tentacles entangled themselves into the morass of Bihari politics and institutions. Violent crime spun out of control and the kidnapping industry exploded. Theft, muggings and murder were commonplace, illustrated by World Vision's comment to PolOffs that "to take a life in Bihar, the victim needs just 32 rupees (approximately 85 cents) in his pocket." Upper-caste gangs like the Ranvir Sena used to roam the countryside at will, looting property, extorting money and fighting wars with rivals. A criminal Mafia, largely a caste-based nexus of landlords, politicians, government administrators, contractors and sectors of the business community, held sway over much of the countryside and urban areas. The Bihari Mafia differs from others in that many Bihari mobsters gained political immunity by holding seats in the Indian Parliament and Bihar State Legislature. Former Chief Minister Laloo Prasad Yadav, widely reputed to be a criminal oligarch and now serving as the Union Railway Minister, ran Bihar into the ground for the past 15 years. As a result of the decline, a large portion of Bihar,s educated elite, including a significant number of well-trained medical professionals, left the state. Many non-Bihari Indians often cast condescending glances at Biharis and talk as if they are children of a lesser God. (Note: Evidencing Bihar's disrepute, prior to leaving for the airport, PolOff was contacted by no less than five concerned New Delhi FSNs warning her to "pack lots of bottled water and anti-bacterial hand sanitizer, bring your own food and do not to eat anything, do not to drink anything, and certainly do not touch ANYTHING." End Note.) -------------- Bihar: The Legacy NEW DELHI 00001446 003.2 OF 006 -------------- ¶5. (U) Current reputation aside, Bihar enjoys an impressive history. Bihar is considered the birthplace of several religions, including Buddhism and Jainism. Bodh Gaya is famous for being where Buddha attained Enlightenment and, for Buddhists, it is the most important of the main four pilgrimages. Guru Gobind Singh, the tenth guru of Sikhism was born in Patna, the capital of Bihar. In ancient times, it was the center of the Mauryan empire which dominated the Indian subcontinent from 325 BC to 185 BC. Bihar remained an important center of power, culture and education during the next thousand years. In ancient India, Bihar boasted the world's best centers of education (which were destroyed by Muslim invaders during the medieval period). It is the home to India's first president, Dr. Rajendra Prasad and several legendary freedom fighters. It was also the source of notable intellectual movements and was at the forefront of India's struggle for independence. After his return from South Africa, Mahatma Gandhi started the freedom movement in India in the Champaran District of Bihar by agitating against British requirements to plant indigo harmful to local soil. -------------- --- Bihar Today: Politics and the Current Government -------------- --- ¶6. (SBU) It is trendy, especially among the Patna elite, to blame the previous Rashtriya Janata Dal (RJD) government - especially Laloo Prasad Yadav - for all that is wrong in Bihar. Political opposition began in response to the almost total absence of the rule of law during the Laloo regime. During this period, the extortion and kidnapping industry thrived and investors were unwilling to set foot in the State. In 2005, disaffection reached a crescendo, and the RJD was voted out of power. Laloo Prasad lost the election to a coalition headed by his previous ally and current rival, Nitish Kumar. Kumar, now beginning his second year in office, heads an NDA government allied to the center right Bharatiya Janata Party (BJP). ¶7. (C) Fifteen months in Indian politics is not a long time. It may be unfair to draw a report card on Kumar's performance so soon, but he appears determined to change the future of Bihar. Virtually 100 percent of our interlocutors (even the opposition party, begrudgingly) acknowledged the positive changes in Bihar. The government is stable and plans to develop infrastructure and industry are ambitious. Hindustan NEW DELHI 00001446 004.2 OF 006 Times Resident Editor Mammen Mathew and Opposition RJD MLA Jagdanand Singh told us that the key to Kumar's initial success was his ability to collect overdue money from the Central government - nearly 20 times more than Bihar received in previous years. And, Mathew added, unlike in previous administrations, the money is being applied to improving Bihar and not resting in party coffers or lining political pockets as usual. ¶8. (SBU) There has been a significant drop in crime and political corruption. Media reports that as many as 75 police complaints were registered against corrupt officials and around 35 were arrested and jailed in 2006. Crime is down as well. For example, there were 411 kidnappings in 2004 and only 150 since Kumar took over. He appointed retired Central Investigation Officers to vacant posts in the Vigilance Department. The police are now more pro-active. Media reports that the courts convicted 5,000 criminals in ¶2006. Several Patna interlocutors mentioned that, with the recent drop in crime, shops are staying open later, shiny and expensive cars are on the streets (formally hidden to prevent kidnapping or carjacking),and people are walking on the streets up till 8:00 pm (formerly restricted to their houses at dusk due to fear.) -------------- Roads To A Brighter Future -------------- ¶9. (SBU) Roads in Bihar could not be worse. Earlier, fears of the Mafia prevented major road construction companies from operating. Now there are plans for over 7,500 km of new road construction in Bihar. To encourage accountability and transparency, Chief Minister Kumar also asked the Road Construction Department to publish details on the roads being constructed and their associated costs. As we drove out of Patna to the Nepal border, we saw several hundred workers - some even wearing hard hats and boots and others wearing dhotis and barefoot - digging road beds, spreading tar and operating bulldozers. Stopping briefly at a local tea stand several hours outside of the capital, we asked locals about their impressions. They enthusiastically pointed to nearby road construction, exclaiming, "This is great! Bihar is changing! Everything is getting better! Come set up industries, we will work for you!" Nitish Kumar has stated he even wants villages with populations under 1,000 to be connected by roads. This was something that was previously unthinkable in Bihar. While it is a tall order, Kumar has NEW DELHI 00001446 005.2 OF 006 already set up the Chief Minister's Village Road Scheme to tackle it. ¶10. (SBU) Nitish Kumar's efforts are paying off. The Central government finally provided funding for an additional 890 km of four-lane national highways on March 5. The exorbitant cost of the package - almost double the estimated cost of Rs. 5.5 crore/km (approximately USD 1.2 million/km) deterred the Cabinet from approving the project last December. Not to be outdone, Laloo announced that he would improve Bihar's rail system. Hindustan Times Resident Editor Mammen Mathew pointed out, "Where Nitish goes with his roads, Laloo follows with his rails. These competitive politics are great for Bihar." Such competition is evident on the India-Nepal border, where people and goods flow freely across an unmarked divide. A broad-gauge railway link from Patna and Madhubani to the Indian border town of Jayanagar is scheduled for completion in 45 days, as is another track that extends into the Nepal heartland. The competitive exchange rate makes purchasing in Bihar a viable option for those living in Nepal border areas. Many Biharis have relatives in these areas, which accounts for some of the unrest in the Nepal Terai. -------------- Comment: Good Governance Goes a Long Way -------------- ¶11. (C) The Nitish Kumar government, just into its second year, enjoys a high level of good will. Nitish Kumar is well aware that he has five years to make his mark. There is still no electricity for the better part of the day in most small towns and villages. Law and order, while improving, still has a long way to go. Today, however, under the new government, there is hope and a sense that the sky is the limit. For the first time in decades, there is no open patronage of criminals and they have been kept out of the State Cabinet. Chief Minister Kumar knows that Biharis want to see a change in attitude and a change in governance. Biharis must resist the temptation to allow traditional caste politics to preclude progress (easier said than done). Change must continue unabated. No one knows more than Nitish Kumar that state elections are less than four years away. And time flies, even in the cow belt. ¶12. (U) Stay tuned. Part II will deal with the economy and investments, education and health. Part II will deal with agriculture and the problem of trafficking in persons, including migrant labor. NEW DELHI 00001446 006.2 OF 006 MULFORD