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ALCOHOL PROHIBITION IN BIHAR: A POLICY D...

Philip Zerrillo, R...

Case

ALCOHOL PROHIBITION IN BIHAR: A POLICY DILEMMA

Philip Zerrillo; Rajshree Shukla

ISB314 | Published May 26, 2022 | 12 pages Case

Collection: Indian School of Business

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It is January 2020. The chief advisor to the chief minister (CM) of Bihar is particularly unhappy after a long meeting with the cabinet members. Four years after the prohibition on the sale and consumption of alcohol in Bihar, it is time to review the full impact of the ban on the state’s socioeconomic fabric in light of upcoming elections. As multiple growth and development avenues emerge, the state is embarking on a vibrant journey to realize dreams of a better future. To achieve its goal, the state is focusing on gender mainstreaming and development through various government initiatives. In response to a perceived increasing women’s voice against alcohol consumption, the Bihar government introduced a prohibition on alcohol in 2016. However, the stringent policy with a hefty fine and non- negotiable jail term had its downsides. It hindered the much-needed economic growth because of massive losses in sectors such as tourism, food and beverage (F&B), and hospitality. It also hit the state’s economic development plans because of massive shortfalls to the state exchequer. The CM stood by his decision undeterred. Yet, in a state plagued with a lack of economic development, many serious gender gaps impacting human development, and a historical lack of capacity for law enforcement, should this be the approach of choice? The chief advisor is grappling with the nagging issues of law and order, budget shortfalls, and the ability to continue the current policy while weighing the social cost of this ban on the public.

This case is relevant in the present-day context of radical policymaking and its implementation with several competing interests at play, enabling the students to: • understand the complexity of policymaking with quantifiable economic costs at stake along with incalculable social impact, • exemplify the nuances of stakeholder management when a single policy affects multiple parties, and • explore the plausability of reevaluating impact and the importance of course correction measures.