world bank document...1 may 20, 2016 bihar is the 3rd most populous state in india. it is home to...
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BiharPoverty, Growth & Inequality
1 May 20, 2016
Bihar is the 3rd most populous state in India. It is home to over 100 million people, 36 million of whom are poor. Bihar is one of the faster growing Low Income States. Since 2005, the pace of poverty reduction in the state has picked up. Despite this, large parts of the state remain very poor. Consumption inequality has remained largely unchanged. Growth is driven mainly by services, but fluctuations in agricultural output put it at risk.
Poverty in Bihar is higher than in most states
GAHPKLPJSKAPDLJKHRUKTNMGRJTRGJMHNLWBKAMZAIUPMPASODBHARMNJHCG
0
10
20
30
40
50
Pockets of very high poverty within Bihar
Population below poverty line, 2012 (%)
District level poverty, 2012
N
0.6-5.25.3-13.213.3-17.217.3-22.622.7-62.8
Patna
N
0.6-5.25.3-13.213.3-17.217.3-22.622.7-62.8
Patna
Population below the poverty line, 2012 (%)
0-1919-3030-3737-4747-72
★ Patna
4037 37
35 34 33 32 3229
22 22 21 20 1917 17
15 1512 12 11 11 11 10 9 9 8 8 8
5
Low Income States are highlighted in orange, AI is All India.
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BiharPoverty, Growth & Inequality
2 May 20, 2016
The pace of poverty reduction picked up in Bihar after 2005
Poverty declined in both rural and urban areas of Bihar more rapidly after 2005
0
10
20
30
40
50
60
70
MZDLNLGAPJJKKLSKTRUKHPHRMGGJRJWBMPAPTNAIUPMHKACGASARODBHJHMN
Population below poverty line, (%)
Population below poverty line, (%)
Rural
Total
Urban
1994 2005 2012
0
10
20
30
50
40
60
70
Low Income States are highlighted in orange, AI is All India.
● 1994 ● 2005 ● 2012
62
45
56
4434
31
61
55
34
BiharPoverty, Growth & Inequality
3 May 20, 2016
2005 2006 2007 2008 2009 2010 2011 2012
2005 2006 2007 2008 2009 2010 2011 2012
-5
0
5
10
15
20
-5
0
5
10
15
20
Bihar’s growth is driven by services, agriculture adds to its volatility
2005 2006 2007 2008 2009 2010 2011 2012
2005 2006 2007 2008 2009 2010 2011 2012
-5
0
5
10
15
20
-5
0
5
10
15
20
Growth in Bihar was faster than in most of India’s Low Income States
AP
AS
BH
GJ
HR HP
KA
KL
MP
MH
OD
PJ
RJ
TN
UP WB
JH
CG
UK
Leading
Lagging
Improving
Weakening
2
3
4
5
6
7
8
9
10
11
12
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000
An
nu
al g
row
th r
ate,
20
05
- 20
12 (%
)
Real GSDP per capita, (2005 Rupees) All India
ImprovingLow income, high growth
LeadingHigh income, high growth
LaggingLow income, low growth
WeakeningHigh income, low growth
Impr
ovem
ent f
rom
200
5 to
201
2
Standard of living, 2005
Interpreting the graph
Annu
al g
row
th ra
te, 2
005
- 201
2 (%
)
Real GSDP per capita, (2005 Rupees)
High poverty, declining slowly
Low poverty, declining fast
-17
-15
-13
-11
-9
-7
-5
-3
-1
0 10 20 30 40 50 60 70 80
An
nu
al d
ecli
ne
in p
over
ty r
ate,
20
05
- 20
12 (%
)
All India
AP
AS
BH
GJ
HR
HP
KA
KL
MP
MH
OD
PJ
RJ
TN
UP
WB
JH CG
UK
Data for 19 large states and All India. Low Income States are highlighted in orange.
Annual growth rate, (%) Components of GSDP growth rate, (%)
■ Bihar GSDP ■ All India GDP
4.7
4.5
3.00.6
1.3
-3.6
6.7
2.5
7.04.8
3.0
-2.3
6.7
2.8
5.0
6.7
-3.8
2.5
5.8
5.4
3.8
6.7
2.90.7
■ Services ■ Industry ■ Agriculture
BiharPoverty, Growth & Inequality
4 May 20, 2016
Bihar’s poverty reduction is faster than some Low Income States
A disproportionate share of India’s poor live in Bihar
Poverty rate, 2005
bubble size: number of poor (millions)
0
5
10
15
20
25
0 5 10 15 20 25
Stat
e sh
are
in In
dia
’s p
oor,
20
12 (%
)
State share in India’s population, 2012 (%)
AP AS
BH
GJ
HR
KA
KL
MP
MH
OD
PJ
RJ
TN
UP
WB JH
CG
UK HP
High poverty, declining slowly
Low poverty, declining fast
-17
-15
-13
-11
-9
-7
-5
-3
-1
0 10 20 30 40 50 60 70 80
An
nu
al d
ecli
ne
in p
over
ty r
ate,
20
05
- 20
12 (%
)
All India
AP
AS
BH
GJ
HR
HP
KA
KL
MP
MH
OD
PJ
RJ
TN
UP
WB
JH CG
UK
Data for 19 large states and All India. Low Income States are highlighted in orange.
Data for 19 large states and All India. Low Income States are highlighted in yellow.
Annu
al d
eclin
e in
pov
erty
rate
, 200
5 - 2
012
(%)
Stat
e sh
are
in In
dia’
s po
or, 2
012
(%)
State share in India’s population, 2012 (%)
Wha
t % o
f Ind
ia’s
poor
live
s in
this
sta
te?
What % of India’s population lives in this state?
Interpreting the graph
Share of poor > share of population
Share of poor < share of populationShare of p
oor = share of p
opulation
BiharPoverty, Growth & Inequality
5 May 20, 2016
UrbanRuralTotal0.0
0.1
0.2
0.3
0.4
Gini coefficient
Consumption inequality has remained stable in Bihar
Consumption inequality in Bihar is lower than in most states
Gini coefficient, 2012
MNMGSKBHNLTRASRJJHJKODMZGJAPUKGAHPPJUPCGMPWBHRAITNARMHKADLKL
0.1
0.2
0.3
0.4
Low Income States are highlighted in orange, AI is All India.
0.22 0.21
0.28
0.22 0.21
0.29
0.210.19
0.32
■ 1994 ■ 2005 ■ 2012