Monday, January 28, 2013

Samvardhan is “Economic growth and poverty reduction significantly accelerated in Bihar


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Samvardhan is a six-year partnership programme (2010-2016) between the Government of Bihar and the United Kingdom’s Department for International Development (DFID, UK). The Government of Bihar has initiated the urban reforms programme to enable holistic development of urban areas, that continue to present myriad development challenges including the lack of basic urban services, issues in local governance and high incidence of urban poverty.

In spite of an increasing awareness among local functionaries for improved urban services, a number of institutional and management aspects impede urban economic growth and quality of life. The felt need to strengthen institutional and technical capacities of the State for urban development, guides the design of the Samvardhan.

The goal of Samvardhan is “Economic growth and poverty reduction significantly accelerated in Bihar by 2016.” The programme aims to significantly enhance the ability of identified ULBs to provide urban services and attract private investment in the state. It is based on the premise that effective urban centres play a significant role in economic growth and poverty reduction by providing the nuclei for greater economic activity and services.

The programme will cover 28 urban centres that are expected to become hubs for economic activities and thereby benefit the wider state. The outcome of this programme will directly improve the quality of services received by 6.36 million urban citizens, of which 2.83 million are urban poor.

The programme also expects to benefit a large number of people from nearby rural areas with a strong economic linkage to these towns. Areas of programme focus are as follows:
  • Urban Governance and Planning :
    Strengthen urban policy, institutions and governance
  • Municipal Finance and Procurement :
    Enhance capabilities of ULBs to mobilize resources and to manage them more effectively
  • Municipal Infrastructure :
    Plan, implement and manage city-level infrastructure and services
  • Local Economic Development :
    Increase municipal capacity to attract private investment in urban areas for inclusive growth
  • Social Development, Poverty and Livelihoods :
    Facilitate development of poor communities through sustainable mechanisms for empowerment and livelihoods
Programme Background

Sustainable and substantive development represents the increasing pace of positive change in the state of Bihar. As per a recent report, the state economy registered an annual growth rate of 11.35% over a five-year period from 2004-05 to 2008-09.

Growth that is demonstrable across a number of indicators - the construction of nearly 2,500 km of roads in 2008-09 compared to 415 km in 2005-06; increase of tele-density in the state from 5.34% in 2006 to 22.18% in 2009 and inflow of 3.46 lakh tourists in 2008 compared to 61,000 in 2003.

Though, these and other indicators stand testimony to the commitment of the State to accelerate development, the historical position suggests the need for continued large scale reforms.

As the third most populous state in India, Bihar has more than 40% of its population living below-the-poverty line. The state has one of the lowest values of the Human Development Index with a low per capita income and Gross Domestic Product. The magnitude and complexity of issues is amplified due to the cumulative impact of inadequate state response over the past few decades.

With less than 10% of state’s population residing in urban areas, Bihar is ranked among the least urbanized states in India. Urban centers present myriad development challenges including the lack of basic urban services, issues in local governance and high incidence of urban poverty. A recent study by the National Sample Survey Organisation reports a lower decrease in poverty ratios in urban Bihar in comparison to rural areas.

Urban development is critical for Bihar to achieve and sustain overall development goals. The current status of urbanization, presents a significant opportunity to develop urban centres as engines of economic growth for a pivotal role in the overall development of the state.

Samvardhan aims to initiate and accelerate urban reforms to address challenges for urban development and contribute significantly to the continuum of sustainable development in Bihar.


Goal:       “Economic growth and poverty reduction significantly accelerated in Bihar by 2016.”
Purpose: “Identified ULBs’ ability to provide urban services and attract private investment significantly enhanced.”

Thematic Area
  • URBAN GOVERNANCE AND PLANNING
  • MUNICIPAL FINANCE AND PROCUREMENT
  • MUNICIPAL INFRASTRUCTURE
  • LOCAL ECONOMIC DEVELOPMENT
  • SOCIAL DEVELOPMENT, POVERTY ALLEVIATION AND LIVELIHOODS
The Support Program for Urban Reforms in Bihar (SPUR) is based on the premise that effective urban centers play a significant role in economic growth and poverty reduction by providing the nuclei for greater economic activity and services that can contribute to pro-poor development. SPUR’s goal is “economic growth and poverty reduction significantly accelerated in Bihar by 2016”. Its purpose is “identified ULBs ability to provide urban services and attract private investment significantly enhanced”.

SPUR will cover 28 urban centres; directly improve the quality of services received by 6.36 million urban citizens, of whom 2.83 million are poor. SPUR will also benefit large numbers of people from nearby rural areas who depend on these cities. SPUR will promote state level institutions and improve financial and managerial capacities, as well as accountability, of Urban Local Bodies (ULBs).

Interventions under SPUR are designed across five mutually reinforcing outputs: (i) Effective policies and stronger institutions to promote and manage urban development in place; (ii) State and ULBs mobilize significantly increased resources for urban development and manage them more effectively; (iii) Identified ULBs plan, implement and manage urban infrastructure and services more effectively; (iv) Increased municipal capacity to attract private investment in urban areas; (v) Empowered poor communities and socially excluded groups access increased urban resources and livelihood opportunities.

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Shekhar Suman

IT and e-Governance Coordinator at DFID- SPUR
Patna Area, India
Government Relations 










Source : Samvardhan

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