How Bihar Performs
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This document provides an analysis of the competitiveness and social progress of the state of Bihar in India. It begins with definitions of competitiveness and discusses factors that influence a state's competitiveness according to standard models. It then analyzes various metrics for Bihar related to its economy, demographics, industries and agricultural productivity. Charts are provided comparing Bihar to other states on metrics like per capita GDP and competitiveness scores. The document also examines Bihar's performance on a Social Progress Index that measures basic needs, well-being and opportunities. In summary, the document is a report analyzing the economic and social development of the state of Bihar in India through comparative data and metrics.
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How Bihar Performs
- 2. 2 WHAT IS COMPETITIVENESS ? Source: Michael E. Porter and Institute for Strategy and Competitiveness
- 3. COMPETITION AMONG STATES • The purpose of a sound economic policy is to increase the overall prosperity in the state and for that the states should focus on increasing their competitiveness. • Improvements and productivity and technological advancement are the guiding principles in this regard. • Competitiveness requires a fundamental rethinking of usage of your existing resources. • For government has to fundamentally rethink its role, it should try to foster a spirit of entrepreneurship in the private sector. • The criteria for judging the merits and demerits of an economic policy should be by outcomes and not political philosophy. • The prosperity of India will depend largely on the states and not just the (Center) Delhi.
- 4. Context for Firm Strategy and Rivalry Related and Supporting Industries Demand Conditions • Local rules and incentives that encourage investment and productivity e.g. - salaries, - incentives for capital investments, - intellectual property protection • Vigorous local competition i.e., - Openness to foreign and local competition; - Sophistication of company operations Local availability of suppliers and supporting industries Presence of clusters instead of isolated firms Sophisticated and demanding local customers and needs e.g., - Strict quality, safety, and environmental standards – Consumer protection laws – Government procurement of advanced technology – Early demand for products and Services. Access to high quality business inputs i.e., - Natural endowments, - Human resources, - Capital availability, - Physical infrastructure, - Administrative infrastructure, - Information infrastructure, - Scientific and technological infrastructure Factor Conditions • Many things matter for competitiveness • Successful economic development is a process of improving the business environment to enable increasingly sophisticated ways of competing The Diamond Source: Institute for Strategy and Competitiveness, HBS and Institute for Competitiveness, India
- 6. INDUSTRIES IN BIHAR Sugarcane Textiles/ Sericulture Agro based Industries Manufacturing Petrochemical Tourist center
- 8. NEAR TERM STATE PROSPERITY PERFORMANCE Jammu & Kashmir Himachal Pradesh Punjab Haryana Uttar Pradesh Rajasthan Delhi Uttarakhand Bihar Orissa West Bengal Assam Meghalaya Tripura Mizoram Manipur Nagaland Arunachal Pradesh Sikkim Jharkhand Gujarat Maharashtra Goa Madhya Pradesh Chhattisgarh Andhra Pradesh Karnataka Kerala Tamil Nadu 3 4 5 6 7 8 9 0 20000 40000 60000 80000 100000 120000 140000 Gross Domestic Product per Capita Gross Domestic Product per Capita real growth rate Highly Productive and Prosperity Rising versus India High but declining versus India Low but rising versus India Low and declining versus India
- 9. PROSPERITY AND COMPETITIVENESS Source: Institute for Competitiveness Analysis Andhra Pradesh Arunachal Pradesh Assam Bihar Chattisgarh Delhi Goa Gujarat Haryana Himachal Pradesh Jammu and Kashmir Jharkhand Karnataka Kerala Madhya Pradesh Maharashtra Manipur Meghalaya Mizoram Nagaland Orissa Punjab Rajasthan Sikkim Tamil Nadu Tripura Uttar Pradesh Uttarakhand West Bengal y = 2486.4x - 105523 R² = 0.51721 0 10000 20000 30000 40000 50000 60000 70000 80000 90000 45 50 55 60 65 70 Per capita State Domestic product at constant price Microeconomic Competitiveness Scores
- 10. AGRICULTURAL GSDP PER CAPITA AND COMPETITIVENESS Source: Institute for Competitiveness Analysis Andhra Pradesh Arunachal Pradesh Assam Bihar Chattisgarh Delhi Goa Gujarat Haryana Himachal Pradesh Jammu and Kashmir Jharkhand Karnataka Kerala Madhya Pradesh Maharashtra Manipur Meghalaya Mizoram Nagaland Orissa Punjab Rajasthan Sikkim Tamil Nadu Tripura Uttar Pradesh Uttarakhand West Bengal y = 199.83x - 2794.9 R² = 0.06055 0.00 5000.00 10000.00 15000.00 20000.00 25000.00 45 50 55 60 65 Agricultural GSDP per capita in Rupees /Annum Microeconomic Competitiveness Score
- 11. socialprogress.in index_socialinfo@socialprogress.in WHY SOCIAL PROGRESS INDEX? • Besides economic progress, measuring social progress is equally important for a nation to get a true reflection of its performance. • Till date, predominant focus has been given to measuring economic development through GDP per capita. It has been assumed that social progress will follow. • But this is not always the case. There are regions that perform well on economic front but lag behind in improving quality of lives of their citizens. • Therefore, there is a need to measure social progress directly. 11 Nation’s Performance Economic Progress Social Progress
- 12. INDIA ON THE GLOBAL SOCIAL PROGRESS INDEX 2016 Key Insights § Social Progress Imperative ranks countries on the basis of social and environmental progress. § India moved up to 98th rank in 2016 index. § The key findings of the index about India include: üOn an absolute basis, India performs well on affordability of housing, political rights and gender parity in basic education. üThere is room for improvement when the country is analysed on performance is tolerance and inclusion, pollution and health. ü On a relative basis, India’s scores are well within the range of expected scores. üIt outperforms its economic peers corruption and political rights.
- 13. socialprogress.in index_socialinfo@socialprogress.in COMPONENTS – SOCIAL PROGRESS INDEX 13 Social Progress Index Basic Human Needs Foundations of Wellbeing Opportunity Nutrition and Basic Medical Care Water and Sanitation Shelter Access to Basic Knowledge Access to Information & Communication Health & Wellness Personal Rights Personal Freedom & Choice Inclusion Does a country provide for its people’s most essential needs? Are the building blocks in place for individuals and communities to enhance and sustain wellbeing? Is there opportunity for all individuals to reach their full potential? Dimension Components Personal Safety Environmental Quality Access to Advanced Education
- 14. socialprogress.in index_socialinfo@socialprogress.in SOCIAL PROGRESS PERFORMANCE: OVERALL 14 Basic Human Needs Foundations of Wellbeing Opportunity 0 10 20 30 40 50 60 70 80 90 Social Progress Index Basic Human Needs Nutrition & Basic Medical Care Water & Sanitation Shelter Personal Safety Foundations of wellbeing Access to Knowledge Access to Information & Communication Health & Wellness Environmental Quality Opportunity Personal Rights Personal Freedom & Choice Inclusion Access to Advanced Education
- 15. socialprogress.in index_socialinfo@socialprogress.in SOCIAL PROGRESS INDEX – OVERALL SCORES 15 * Peer Groups are decided on the basis of per capita income of 2013-14 at the current prices. Social Progress Index Peer Groups* States Scores Very High Income States (More than 103820) Goa 63.8 Delhi 57.8 Sikkim 59.0 Haryana 58.2 Maharashtra 59.1 Tamil Nadu 68.0 Gujarat 56.9 High Income States ( Between 77529 and 103820) Kerala 64.7 Uttarakhand 63.7 Punjab 61.7 Himachal Pradesh 63.6 Arunachal Pradesh 51.2 Karnataka 62.5 Andhra Pradesh 58.1 Nagaland 51.1 Middle Income States (Between 58547 and less than 77529) Mizoram 57.9 West Bengal 55.1 Tripura 52.9 Rajasthan 50.9 Meghalaya 46.8 Jammu & Kashmir 50.0 Chhattisgarh 53.3 Low Income States (Less than 58547) Odisha 50.7 Madhya Pradesh 52.9 Jharkhand 47.2 Assam 43.0 Manipur 55.7 Uttar Pradesh 48.2 Bihar 43.6
- 16. socialprogress.in index_socialinfo@socialprogress.in SOCIAL PROGRESS INDEX- DIMENSION LEVEL SCORES 16 States Basic Human Needs Foundations of wellbeing Opportunity Andhra Pradesh 64.4 47.6 62.3 Arunachal Pradesh 53.6 58.3 41.8 Assam 47.0 52.0 30.1 Bihar 48.4 45.9 36.3 Chhattisgarh 56.9 51.7 51.2 Delhi 60.5 69.0 43.8 Goa 77.7 63.0 50.6 Gujarat 68.8 51.3 50.5 Haryana 63.7 52.5 58.4 Himachal Pradesh 60.5 61.2 69.1 Jammu 51.7 48.9 49.4 Jharkhand 51.4 52.6 37.7 Karnataka 63.0 58.2 66.5 Kerala 65.3 63.4 65.5 Madhya Pradesh 55.6 48.3 54.7 Maharashtra 67.7 57.5 52.1 Manipur 68.3 55.0 43.9 Meghalaya 46.4 59.3 34.8 Mizoram 65.1 59.0 49.7 Nagaland 62.8 49.3 41.1 Odisha 49.7 48.1 54.4 Punjab 63.7 58.6 62.9 Rajasthan 52.1 44.7 55.8 Sikkim 65.8 57.3 53.9 Tamil Nadu 74.6 60.4 69.1 Tripura 56.9 52.8 48.9 Uttar Pradesh 47.0 46.3 51.4 Uttarakhand 63.9 62.6 64.7 West Bengal 60.0 55.6 49.9 The overall scores of Bihar are better in Basic Human Needs than the other two dimensions. Implying that when it comes to providing its citizens with basic needs of survival such as water, health facilities Bihar is performing relatively better.
- 17. socialprogress.in index_socialinfo@socialprogress.in States Nutrition & Basic Medical Care Water & Sanitation Shelter Personal Safety Access to Knowledge Access to Information & Communication Health & Wellness Environmental Quality Personal Rights Personal Freedom & Choice Inclusion Access to Advanced Education Andhra Pradesh 41.8 72.7 69.5 73.8 31.0 41.4 54.2 63.9 81.5 80.7 54.3 32.7 Arunachal Pradesh 39.7 64.5 56.8 53.4 62.1 23.6 72.9 74.4 65.7 59.1 19.7 22.7 Assam 20.5 82.8 33.1 51.6 58.0 7.7 70.1 72.1 58.0 17.6 34.5 10.2 Bihar 22.3 74.7 30.1 66.7 39.9 8.9 65.8 69.1 45.2 58.2 33.6 8.2 Chhattisgarh 13.9 89.6 59.2 64.7 73.2 29.0 47.7 57.1 77.4 65.8 44.1 17.6 Delhi 50.1 77.3 78.3 36.3 78.1 79.9 60.5 57.7 25.8 82.2 38.5 29.0 Goa 66.8 88.1 84.7 71.3 88.2 44.4 52.9 66.5 58.1 54.1 37.1 53.2 Gujarat 29.4 90.8 73.3 81.7 38.8 48.0 58.7 59.8 62.8 79.1 27.8 32.5 Haryana 34.9 88.2 71.2 60.3 40.5 44.1 69.7 55.6 70.9 77.8 37.4 47.5 Himachal Pradesh 38.6 44.3 85.1 74.1 65.5 54.9 74.5 49.9 69.5 87.2 50.8 68.9 Jammu 38.8 45.6 54.1 68.1 24.3 31.8 70.5 68.8 68.5 78.9 23.7 26.6 Jharkhand 14.1 81.5 48.8 61.1 47.8 26.8 70.5 65.4 52.0 53.4 37.1 8.3 Karnataka 42.3 70.9 66.4 72.3 67.3 47.9 55.1 62.5 67.8 71.2 64.5 62.3 Kerala 62.9 51.9 74.0 72.3 80.9 58.9 60.2 53.7 72.5 83.6 56.7 49.2 Madhya Pradesh 16.6 81.7 58.1 66.0 38.1 33.4 64.8 57.0 66.8 74.2 39.4 38.2 Maharashtra 49.3 85.9 62.4 73.1 59.1 49.8 57.7 63.5 41.4 78.8 43.1 45.0 Manipur 80.7 61.1 64.3 67.2 62.0 25.4 64.2 68.6 44.0 70.5 22.2 38.8 Meghalaya 35.4 28.3 61.0 61.0 79.8 20.9 73.7 62.7 42.5 64.9 13.4 18.3 Mizoram 52.3 69.5 74.2 64.3 87.6 28.8 64.9 54.6 81.5 81.9 14.1 21.4 Nagaland 59.9 56.3 61.6 73.6 50.5 22.1 62.5 61.9 67.6 64.5 9.3 22.9 Odisha 21.3 72.8 43.5 61.2 48.7 14.1 66.0 63.4 57.0 66.4 44.1 50.0 Punjab 42.8 82.0 60.0 69.9 49.7 59.7 64.5 60.5 82.9 83.2 47.3 38.3 Rajasthan 16.4 68.2 57.4 66.5 16.1 31.2 73.0 58.5 75.7 54.7 40.1 52.7 Sikkim 60.2 45.8 76.0 81.4 72.4 36.4 60.8 59.7 83.2 66.1 33.6 32.6 Tamil Nadu 58.4 92.2 73.3 74.5 72.1 57.9 50.7 60.7 92.2 77.0 58.8 48.6 Tripura 53.5 56.8 54.6 62.6 62.9 25.3 66.8 56.2 52.1 79.7 47.3 16.6 Uttar Pradesh 7.8 92.4 15.7 72.1 36.5 21.4 68.9 58.3 51.8 63.5 62.0 28.4 Uttarakhand 32.1 70.3 78.3 74.9 64.0 52.6 72.2 61.6 80.6 82.6 48.1 47.6 West Bengal 47.5 70.7 46.9 74.7 59.9 24.5 65.8 72.2 51.5 74.0 56.0 18.1 SOCIAL PROGRESS INDEX : COMPONENT LEVEL SCORES
- 18. socialprogress.in index_socialinfo@socialprogress.in SOCIAL PROGRESS PERFORMANCE: BIHAR 18 Basic Human Needs Foundations of Wellbeing Opportunity 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0 Social Progress Index Basic Human Needs Nutrition & Basic Medical Care Water & Sanitation Shelter Personal Safety Foundations of wellbeing Access to Knowledge Access to Information & Communication Health & Wellness Environmental Quality Opportunity Personal Rights Personal Freedom & Choice Inclusion Access to Advanced Education
- 19. BIHARPeer Group: Low Income Social Progress Index score: 43.6 BASIC HUMAN NEEDS 48.4 FOUNDATIONS OF WELLBEING 45.9 OPPORTUNITY 36.3 Nutrition and Basic Medical Care 22.3 Access to Basic Knowledge 39.9 Personal Rights 45.2 Infant Mortality Rate 43 Net enrolment ratio (primary) 93.8 Access to Judiciary 32.5 Maternal Mortality Rate 22.8 Gross enrolment ratio (secondary) 69.1 Property Rights 14.2 Prevalence of Anaemia 63.5 Drop out rates 2.1 Child Labour 0.0 Children under the age of 5 years who are underweight 43.9 Literacy Rate 66 Girls to Boys Enrolment 0.8 Water and Sanitation 74.7 Access to Information and Communications 8.9 Personal Freedom & Choice 58.2 Rural Sanitation Coverage 23.6 Internet subscribers 17.7 Human Trafficking 0.4 Fully covered habitations 58.8 Television access 14.50 Corruption 0.3 Rural access to improved source of water 97.6 Phone subscribers 69.3 Early Marriages 39.1 Typhoid Cases 2.6 Newspaper circulations 0.1 Contraception 24.1 Diarrheal Cases 5.3 Shelter 30.1 Health and Wellness 65.8 Inclusion 33.6 Housing Shortages 6.3 Suicides due to Illness 0.0 Insurance 8.6 Share of HH in pucca houses 36.1 Obesity Rate 12.2 Financial Inclusion 30.2 Access to electricity 16.4 Life Expectancy at 60 17.2 Sex Ratio 935 Power Deficit -0.40 HIV Prevalence 0.3 Women in PRIs 51.6 Leprosy Prevalence 1.1 Percentage of SC Enrolment 13.5 Personal Safety 66.7 Environmental Quality 69.1 Access to Advanced Education 8.2 Rate of murder Crimes 3.1 Change in forest cover 6.5 Gross Enrolment Ratio (Higher Education) 12.9 Rate of violent crimes 34.7 Renewable energy 0.1 Female Graduates 1.8 Crimes against women 2.1 Water withdrawals 44.00 Number of ITI 8.4 Deaths due to road accident 49.2 Acute respiratory infection 14.3 Number of UGC Colleges 0.001 Land degradation 36.1 Municipal Solid waste treatment 25.2
- 20. OVERALL PERFORMANCE : BIHAR
- 21. socialprogress.in index_socialinfo@socialprogress.in SOCIAL PROGRESS AND ECONOMIC DEVELOPMENT 21 Key Findings: •There exists a positive and strong relationship between GDP per capita and Social Progress Index. For instance, Bihar with a GDP per capita of 31,199 scores 43.6 on Social Progress Index. On the other hand, Goa with a GDP per capita of 224138 has a social progress score of 63.8. •The relationship between social progress and GDP (economic development) is not linear. At lower levels of income, a small change in GDP leads to large advancements in social progress scores. However, as income levels rise, the rate of change slows. •Third, despite the correlation among GDP per capita and social progress index, considerable amount of variability in social progress is observed among states with comparable levels of GDP per capita. Economic development alone is not sufficient to explain social progress outcomes.
- 22. SOCIAL PROGRESS INDEX AND GDP: COMPONENT LEVEL RELATIONSHIP Quick Wins § This includes components that show rapid improvements with GDP per capita. But the relationship is leveled off at moderate income levels. § Shelter and Access to Information & Communication show drastic improvements at relatively lower levels of income. § This group of components should be central to the agenda for development in the country as economic development will lead to improvements in these aspects of social development. Access to Information & Communication
- 23. SOCIAL PROGRESS INDEX AND GDP: COMPONENT LEVEL RELATIONSHIP Steady Improvers § Those components that show improvements with GDP per capita that does not levels off until a very high income level are clubbed under steady improvers. § Nutrition and Basic Medical Care also shows strong correlation with per capita GDP but the improvements are not as rapid as in the case of Quick Wins. The states need to make systematic investments overtime in health facilities to enhance the wellbeing. Nutrition & Basic Medical Care
- 24. socialprogress.in index_socialinfo@socialprogress.in 24 Mild correlation exists between social progress and state competitiveness. SOCIAL PROGRESS AND STATE COMPETITIVENESS Size of the bubble represents population of the state.
- 25. Source: Michael. E. Porter, http://www.hbs.edu/faculty/Publication%20Files/20130321%20-- %20AllWorld%20and%20TEF%20CSV%20Presentation%20-- -%20FINAL%20FINAL_04158e95--88e5-- 48ab--8582--4e5a2142492c.pdf Institute for Strategy and Competitiveness (ISC) Inbound Logistics (e.g. Incoming Material Storage, Data Collection, Service, Customer Access) Outbound Logistics (e.g. Order Processing, Warehousing, Report Preparation) After-Sales Service (e.g. Installation, Customer Support, Complaint Resolution, Repair) M a r g i n Primary Activities Firm Infrastructure (e.g. Financing, Planning, Investor Relations) Procurement (e.g. Components, Machinery, Advertising, Services)` Human Resource Management (e.g. Recruiting, Training, Compensation System) Value What buyers are willing to pay • Relationship with universities (-) • Ethical Research Practices (-) • Product Safety (+/-) • Conservation of Raw Materials (-) • Recycling (+/-) • Financial Reporting Practices (+/-) • Governance Practices (+/-) • Transparency(-) • Use of Lobbying (-) • Education and Job Training (+/-) • Safe Working Conditions (-) • Diversity and Discrimination (+/-) • Healthcare and Other Benefits (+/-) • Compensation Policies (-) • Procurement Practices (e.g., Bribery, child labour,) (+/-) • Use of Particular Inputs (+) • Utilization of Natural Resources (+/-) • Transportation impacts (e.g., emissions, congestions) (+/-) • Emissions and waste (-) • Biodiversity and ecological impacts (-) Energy and water use (+/-) • Worker safety and labor relations (+/-) • Hazardous Materials (+/-) • Packaging use and Disposal (+/-) • Marketing and advertising (e.g., truthful advertising) (+/-) • Pricing Practices (+/-) • Consumer Information (+/-) • Privacy (+) • Disposal of Obsolete Products (+/-) • Handling of Consumabl es (-) • Consumer Privacy (+/-) Support Activities Technology Development (e.g. Product Design, Testing, Process Design, Material Research, Market Research) This is where most patent producing multinationals focus Operations (e.g. Assembly, Component Fabrication, Branch Operations) Marketing & Sales (e.g. Sales Force, Promotion, Advertising, Proposal Writing, Web site) This is where most Indian Generic Manufacturers focus Value chain of a generic player and Impact on Society
- 26. 26 DOES LACK OF TRUST UNDERMINE COMPETITIVENESS? Source: Institute for Competitiveness Analysis
- 27. ROLE OF PRIVATE SECTOR IN ECONOMIC DEVELOPMENT Increasingly Business Models are emerging which are solving societal needs at the same time making money for the Organisation. Examples include HUL Shakti Amma and Aravind Eye care Vaatsalya Hospitals Vision Spring Social Objectives Economic Objectives
- 28. CREATING A STATE ECONOMIC STRATEGY State Value Proposition Achieving and Maintaining parity with peers Developing Unique Strengths What are the main strengths, positive attributes, location advantage etc of the particular state in question. • How can the state leverage on its unique capabilities and create new ones? • Which businesses/ clusters can be made stronger? • What are the key weaknesses which need to be taken care of while forming maintaining parity with peers? State economic strategy requires setting clear priorities and measuring against predefined criteria.