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LATEST NEWS UPDATES | Bihar turning around, says World Bank

Bihar turning around, says World Bank

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published Published on Mar 15, 2010   modified Modified on Mar 15, 2010

‘Improved law and order gave the vital impetus' 

‘State Govt. has ushered in wide-ranging reforms'

‘Development expenditures have increased'

One of India's poorest State Bihar has started turning around based on the all-inclusive reforms initiated by the State Government, including improved law and order and higher public expenditures, the World Bank has said.

“There are visible signs of a turnaround where the Bihar Government has been implementing wide-ranging reforms. State revenues and development expenditures have increased,” the multilateral lending agency said in a statement.

The World Bank said Bihar is home to some of the country's poorest people, but a new reform effort by State Government along with the bank's support, has helped it improve public finance management and better utilisation of proceeds.

It has improved in directing funds to get more children to schools, to immunize its people and to fight corruption.

The government is now able to spend money on hitherto underfunded public services, the World Bank said.

“Reducing poverty and accelerating growth in the State are likely to have national implications,” it said. Until 2007, economic growth in Bihar was much slower and its public services and infrastructure were among the worst in India.

“Pinpointing the roots of economic growth is complex, the faster growth experienced by Bihar after 2004 can be reasonably linked to improvements in the rule of law, more efficient and larger public expenditures, and better infrastructure,” the bank said. The bank cited various indicators across sectors to show the turnaround in Bihar.

“In almost three years time, by October 2008, the number of out-patients visiting a government hospital surged from some 39 per month to almost 4,500 per month,” it said adding the number of babies delivered in healthcare facilities shot up to 7,80,000 by 2008 from some 1,00,000 in 2006.

Further, enrolment in primary and upper primary schools rose, while the number of out-of-school children fell steeply.

The pupil-teacher ratio is expected to reach the national norm of 40:1 when newly hired teachers are placed in schools, it said.

On the anti-corruption front, the government has sought to promote greater transparency through various steps, including setting up of a Special Vigilance Unit to pursue cases against high-level civil servants.

“Two of the State's major governance initiatives under the Right to Information law and service delivery have won national awards,” it said.

Besides, consumer spending has increased indicating improved conditions. The number of tourist arrivals in Bihar increased to 10.5 million in 2009 from 6.9 million in 2005, it said.

The number of motor vehicles in Bihar also rose by 239 per cent in 2007 alone, reflecting better infrastructure and heightened economic activity.

The number of mobile phones also rocketed from only one million in 2004 to 12 million in 2008.

World Bank also said some 1,900 km of National Highways and 3,500 km of district roads have been refurbished in the State.


The Hindu, 15 March, 2010, http://www.hindu.com/2010/03/15/stories/2010031559280300.htm
 

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