Chapter 25: bihar men garibi aur berojagari
1. Chapter Study Notes
1 Topic Notebihar men garibi aur berojagari - Chapter Notes
Chapter 25: Poverty and Unemployment in Bihar
Poverty and unemployment are two major socio-economic challenges faced by Bihar. Poverty reflects inadequate access to income and essential goods and services, while unemployment refers to a situation in which people who are willing and able to work do not obtain suitable employment.
Bihar has made progress in reducing poverty and improving employment opportunities, but low productivity, dependence on agriculture, informal employment, skill gaps, seasonal unemployment and migration remain important issues.
1. Meaning of Poverty
Poverty is a condition in which an individual or household does not have adequate resources to meet basic requirements such as food, clothing, housing, education, healthcare and other necessities of life.
Types of Poverty
- Absolute Poverty: A situation in which people lack the resources required to satisfy basic minimum needs.
- Relative Poverty: Poverty measured in relation to the economic conditions and income levels of the wider population.
- Multidimensional Poverty: Poverty that includes deprivation in several dimensions such as health, education and standard of living, rather than income alone.
2. Multidimensional Poverty in Bihar
The Multidimensional Poverty Index (MPI) considers deprivation across multiple dimensions. The major dimensions include health, education and standard of living.
According to NITI Aayog's Bihar MPI Progress Review 2023, Bihar's multidimensional poverty headcount ratio declined from 51.89% in 2015-16 to 33.76% in 2019-21. The corresponding MPI value declined from 0.265 to 0.160. :contentReference[oaicite:1]{index=1}
| Indicator | Major Areas of Deprivation |
|---|---|
| Health | Nutrition, child and adolescent mortality, maternal health |
| Education | Years of schooling and school attendance |
| Standard of Living | Cooking fuel, sanitation, drinking water, electricity, housing, assets and bank account |
3. Rural and Urban Poverty in Bihar
Poverty in Bihar has traditionally been more pronounced in rural areas because of greater dependence on agriculture, lower productivity, limited non-farm employment and weaker access to some economic opportunities.
NITI Aayog's MPI data for 2019-21 recorded a multidimensional poverty headcount ratio of 36.95% in rural Bihar compared with 16.67% in urban Bihar. This shows a substantial rural-urban difference in multidimensional deprivation. :contentReference[oaicite:2]{index=2}
4. Major Causes of Poverty in Bihar
4.1 Dependence on Agriculture
A large section of the population depends directly or indirectly on agriculture. Low productivity, small landholdings and seasonal agricultural activities can limit household income.
4.2 Low Industrialisation
Historically limited industrialisation has reduced opportunities for stable non-agricultural employment and income generation.
4.3 Unemployment and Underemployment
Lack of adequate employment and the availability of work for fewer hours or below a worker's skill level can reduce household income.
4.4 Low Human Capital
Limited access to quality education, healthcare, skill development and training can restrict productivity and earning opportunities.
4.5 Small and Fragmented Landholdings
Fragmentation of agricultural land can make farming less productive and limit the income-generating capacity of small farmers.
4.6 Inadequate Non-Farm Opportunities
Lack of sufficient rural industries, services and local enterprises can increase dependence on agriculture and migration.
4.7 Natural Disasters
Floods, drought-like conditions and other natural hazards can damage crops, assets and livelihoods, particularly in vulnerable rural areas.
5. Meaning of Unemployment
Unemployment refers to a situation in which a person who is willing and able to work at the prevailing conditions is unable to find suitable employment.
Important Types of Unemployment
- Open Unemployment: A person is willing to work but has no employment.
- Seasonal Unemployment: Employment is available only during certain periods of the year.
- Disguised Unemployment: More people are engaged in an activity than are actually required, so removing some workers does not significantly reduce output.
- Underemployment: A person works below his or her potential, skill level or desired working hours.
- Structural Unemployment: A mismatch occurs between available workers' skills and the skills demanded by the economy.
- Educated Unemployment: Educated people are unable to find suitable employment matching their qualifications.
- Frictional Unemployment: Temporary unemployment occurring while workers move between jobs or search for suitable employment.
6. Nature of Unemployment in Bihar
The employment structure of Bihar is strongly influenced by agriculture, informal activities, self-employment and migration. Therefore, unemployment cannot be understood only as complete absence of work.
| Type | Situation in Bihar |
|---|---|
| Seasonal Unemployment | Commonly associated with agricultural activities and seasonal demand for labour. |
| Disguised Unemployment | Particularly relevant where more workers are engaged in agriculture than are required for existing output. |
| Underemployment | Workers may obtain work but for fewer hours or at lower productivity than desired. |
| Educated Unemployment | Some educated youth face difficulty finding suitable formal-sector employment. |
| Structural Unemployment | Skill mismatch can arise when workers' qualifications do not match the requirements of expanding industries and services. |
7. Major Causes of Unemployment in Bihar
- High Population Pressure: A large labour force creates substantial demand for employment.
- Dependence on Agriculture: Agricultural employment is often seasonal and productivity is relatively low.
- Limited Industrialisation: A smaller manufacturing base restricts the availability of industrial jobs.
- Skill Mismatch: The skills possessed by workers may not always correspond to market demand.
- Limited Formal Employment: A large share of workers are engaged in informal or self-employed activities.
- Regional Imbalance: Employment opportunities are concentrated in particular towns and economic centres.
- Inadequate Non-Farm Employment: Rural areas need more manufacturing, services and small-business opportunities.
8. Relationship between Poverty and Unemployment
Poverty and unemployment are closely related. Lack of employment reduces household income, while poverty can restrict access to education, healthcare, nutrition and skill development. These disadvantages can in turn reduce productivity and employment opportunities.
Low Employment тЖТ Low Income тЖТ Poverty тЖТ Low Human Capital тЖТ Lower Productivity тЖТ Fewer Employment Opportunities
9. Effects of Poverty
- Lower standard of living.
- Malnutrition and poor health outcomes.
- Lower educational attainment.
- Limited access to quality housing and sanitation.
- Lower productivity.
- Greater vulnerability to economic shocks.
- Increased dependence on informal sources of income.
10. Effects of Unemployment
- Loss of income.
- Underutilisation of human resources.
- Lower household consumption.
- Increase in economic insecurity.
- Migration in search of employment.
- Loss of skills and work experience when unemployment is prolonged.
- Lower overall productive capacity of the economy.
11. Poverty, Unemployment and Migration
Migration is an important feature of Bihar's labour market. Workers often migrate to other states in search of better employment opportunities and higher wages.
Major Reasons for Migration
- Limited local employment opportunities.
- Seasonal nature of agricultural employment.
- Higher wages available in destination regions.
- Limited industrial and non-farm opportunities in some areas.
- Search for better career and skill-development opportunities.
Migration can provide income to households through remittances, but heavy dependence on migration also indicates the importance of creating productive employment opportunities within Bihar.
12. Government Measures to Reduce Poverty and Unemployment
12.1 Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
MGNREGA provides a legal framework for wage employment in rural areas and aims to strengthen livelihood security by providing employment opportunities to rural households.
12.2 Self Help Groups
Self Help Groups can promote savings, access to credit, entrepreneurship and livelihood activities, particularly among rural households.
12.3 Skill Development
Skill-development programmes aim to improve employability by providing technical, vocational and industry-relevant skills.
12.4 Rural Development Programmes
Rural development programmes focus on employment, housing, sanitation, roads, livelihoods and access to basic services.
12.5 Financial Inclusion
Banking access, digital payments, credit facilities and financial inclusion can help households and small entrepreneurs participate more effectively in the formal economy.
12.6 Promotion of MSMEs
Micro, Small and Medium Enterprises can generate employment with relatively lower capital requirements and can support local entrepreneurship.
13. Measures to Reduce Poverty in Bihar
- Increase agricultural productivity.
- Promote irrigation and modern agricultural practices.
- Develop food processing and agro-based industries.
- Improve education and healthcare.
- Expand skill-development opportunities.
- Strengthen rural infrastructure.
- Promote MSMEs and local entrepreneurship.
- Improve access to institutional credit.
- Strengthen social security programmes.
- Increase women's participation in economic activities.
14. Measures to Reduce Unemployment
- Industrialisation: Promote labour-intensive manufacturing and industrial clusters.
- Agro-Processing: Create employment by processing agricultural products within the state.
- MSME Development: Encourage small businesses, startups and local enterprises.
- Skill Development: Align training programmes with actual industry requirements.
- Rural Non-Farm Employment: Promote rural services, manufacturing and entrepreneurship.
- Infrastructure Development: Improve roads, electricity, logistics and digital connectivity.
- Women Employment: Increase women's access to education, skills, finance and employment.
- Entrepreneurship: Improve access to finance, markets, technology and business support.
15. Role of Human Capital in Reducing Poverty and Unemployment
Education, health, nutrition and skills improve the productivity of workers. Better human capital increases employability and earning capacity and can therefore contribute to long-term poverty reduction.
Better Education + Better Health + Skills тЖТ Higher Productivity тЖТ Better Employment тЖТ Higher Income тЖТ Lower Poverty
16. Current Perspective
Poverty reduction in Bihar should be understood through both income and non-income indicators. NITI Aayog's multidimensional poverty data shows substantial improvement between 2015-16 and 2019-21, but significant deprivation remained, particularly in rural areas. :contentReference[oaicite:3]{index=3}
Therefore, future policy needs to combine employment generation with improvements in education, health, nutrition, housing, sanitation, financial inclusion and basic infrastructure.
17. Major Challenges
- Large labour force and continuing demand for employment.
- High dependence on agriculture.
- Seasonal and disguised unemployment.
- Limited availability of high-productivity jobs.
- Skill mismatch among workers.
- Large informal employment sector.
- Rural-urban differences in economic opportunities.
- Migration due to lack of adequate local employment.
- Need for greater industrial and service-sector expansion.
- Need to improve the quality of human capital.
18. Way Forward
- Promote labour-intensive industries.
- Develop agriculture-based industries and food processing.
- Strengthen MSMEs and local entrepreneurship.
- Improve the quality of education and vocational training.
- Expand irrigation and agricultural productivity.
- Create more rural non-farm employment.
- Improve access to finance and markets.
- Increase women's participation in the workforce.
- Strengthen social protection for vulnerable households.
- Develop infrastructure that supports productive employment.
19. Important Points for BPSC Examination
Remember:
- Poverty is broader than lack of income when measured through a multidimensional approach.
- MPI considers health, education and standard-of-living dimensions.
- Bihar's multidimensional poverty headcount ratio declined from 51.89% in 2015-16 to 33.76% in 2019-21 according to NITI Aayog.
- Rural multidimensional poverty remained higher than urban multidimensional poverty in 2019-21.
- Agriculture remains important in understanding Bihar's employment structure.
- Seasonal and disguised unemployment are particularly relevant to an agriculture-dependent economy.
- Educated unemployment is associated with difficulties in obtaining suitable jobs matching educational qualifications.
- Skill development is important for reducing structural unemployment.
- Industrialisation and MSME development can create non-farm employment.
- MGNREGA is an important rural wage-employment programme.
- Poverty reduction requires improvements in both income and non-income dimensions of welfare.
20. Quick Revision Table
| Topic | Key Point |
|---|---|
| Poverty | Inadequate resources to meet basic needs |
| Multidimensional Poverty | Deprivation in health, education and standard of living |
| MPI | MPI = Headcount Ratio ├Ч Intensity of Poverty |
| Major Cause of Rural Poverty | Agricultural dependence, low productivity and limited non-farm opportunities |
| Open Unemployment | Willing and able to work but unable to find employment |
| Seasonal Unemployment | Employment available only during particular seasons |
| Disguised Unemployment | More workers employed than actually required |
| Educated Unemployment | Educated persons unable to find suitable employment |
| Major Employment Challenge | Creating productive and stable non-farm employment |
| Important Rural Employment Programme | MGNREGA |
| Long-Term Solution | Human capital + industrialisation + MSMEs + productive agriculture |
Questions from this chapter may focus on the meaning and measurement of poverty, multidimensional poverty, causes of poverty in Bihar, types of unemployment, agricultural and disguised unemployment, educated unemployment, migration, poverty-unemployment relationship, government employment programmes, skill development, MSMEs and strategies for reducing poverty and unemployment in Bihar.
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