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<b>Bimal Jalan:</b> Administrative reforms - A minimal agenda

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Bimal Jalan
Last Updated : Jan 20 2013 | 1:18 AM IST

The first priority in administrative reforms must be to re-define the respective responsibilities of the Centre and states to implement programmes

Over the past few weeks, there has been a visible sense of despair among columnists, experts and other observers of the Indian scene about the government’s inability to “do anything at all” or deliver even the most ordinary public services to the people. Thus, on September 4, The Economist, which a few weeks ago had hailed India as the emerging power of the 21st century, carried a cover story with the caption “Good Growth, Bad Government”. A couple of weeks earlier, on August 23, India Today, reported the findings of its latest poll on the mood of the nation. An overwhelming proportion of people expressed their dissatisfaction with the government’s performance and “inertia” in the administrative system.

There is nothing new about the disappointment of citizens and columnists with the indifferent performance of ministers, bureaucratic inefficiency and widespread corruption. What is new is that, cutting across different sections of media and policy preferences of editors and columnists, there is an emerging consensus that government has become largely non-functional.

Discontent with government and its leadership has been so vociferous that, on September 5, the prime minister decided to engage in a rare interaction with a group of editors to dispel the impression that the United Progressive Alliance-II was drifting and there was a disconnect between government and party. During the meeting, he dealt with a host of issues, including reports of Chinese belligerence, unrest in Kashmir, Naxalism, Ayodhya, rotting foodgrain, rising disparities between India’s rich and the poor, environmental disputes and the mess surrounding the Commonwealth games. He also outlined the government’s resolve to improve governance and ensure that cabinet and party operate with cohesion.

If the government is serious about restoring credibility, the least that should be done is to initiate some simple administrative and institutional reforms to improve delivery of public services, reduce scope for corruption and increase ministerial accountability. At present, India has by far the largest number of administrative ministries and departments among democratic countries. Multiple ministries — as many as 10 or 12 — are likely to be involved in implementation at the Centre and states, with little co-ordination.

The first priority in administrative reforms must be to re-define the respective responsibilities of the Centre and states to implement programmes. Central ministries’ primary role should be to announce policy parameters for the delivery of public services and rules for reimbursing states for providing such services. The modalities of implementation must be left to the states. Thus, for example, the centre may decide that it will reimburse a minimum wage of “x” rupees per day for jobs provided under the rural employment guarantee programme. However, states should be left free to decide what kind of work can be undertaken under this scheme. If they wish to pay a higher wage because of prevailing market conditions in their states, they should be free to do so at their own cost.

In most schemes, including rural employment, the procedure for releasing funds to states/districts is most cumbersome and arduous. In future, reimbursement by the centre should be “automatic” and sent directly to states as certified by them.

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A second administrative priority is to reduce the discretionary power of ministers in allocating public resources. Why should a minister decide who should be allotted telecom spectrum or mining rights for iron ore or copper or merger of public sector enterprises? Let the minister concerned and cabinet collectively decide only on policy for allocations. The question of which entity should be given allocations should be left to an autonomous agency with adequate powers.

India has some distinguished public institutions, such as the Election Commission, Central Information Commission, and Union Public Service Commission, that have rendered excellent service to the country. Appointments to these institutions are made by government. However, once appointed, members have full authority to carry out the tasks assigned to them without any interference or approval by the ministries concerned. Similar autonomous institutions should be created for allocating all valuable national resources, including oil and gas.

Third, except in selected areas, such as security and defence, it is desirable to cut through elaborate red-tape and rely on “self-certification” by chief executives of registered companies and organisations. Such simplification, which automatically reduces demand and supply of corruption, has already been introduced in some areas with perceptible success (for example, foreign exchange regulations). There is simply no reason India cannot have a rule-based system of administration, which is not dependent on ministerial discretion.

Finally, the depoliticisation of bureaucracy is an important priority. It is necessary to confer greater authority on the civil services for self-regulation, particularly transfers and postings, and empower them to take administrative decisions based on announced policies. Greater empowerment of the civil service must, of course, go hand in hand with greater accountability.

There is, of course, a lot more to be done. But let us begin with the above minimum programme of administrative reforms to improve delivery, reduce corruption, and restore public confidence.

Bimal Jalan is former RBI Governor and author of The Future of India — Politics, Economics and Governance

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Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

First Published: Sep 25 2010 | 12:28 AM IST

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