Setting the agenda

The Prime Minister's commitment to reforms is beyond question, but there have been concerns raised about his ability to keep the process moving in the current political scenario.

Not that the government has been idle. While some obvious reformist measures like aligning the interest rate on provident funds with the market were passed by, others like increasing the FDI limits in airports and telecom, and allowing private airlines to fly abroad, have been initiated.

Dr Singh's decision to lay out a specific agenda for each ministry over a six-month timeframe is, therefore, a significant effort to bring some structure and, more importantly, accountability to the process, and deserves praise.

The "Thrust Areas" document, extracts from which were published in this newspaper yesterday, lays out a whole range of actions to be taken by every ministry.

Apart from a comprehensive taxation agenda, which emphasises streamlining and administrative efficiency, critical constraints that threaten to retard growth are squarely in Dr Singh's sights.

The reform of labour laws to bring in flexibility, accompanied by a functional social security system, has been made priority for the labour ministry.

Ironing out the remaining wrinkles in power sector legislation and policy is emphasised, while the initiatives relating to water conservation and completion of irrigation projects announced in the Budget are high up on the water resources ministry's list.

The Planning Commission has been entrusted with the task of developing viable public-private partnership for the delivery of public services.

As impressive an agenda as this is, it remains a wish list until it is implemented. It is important to start out with clear directions and priorities from the top, and that has been accomplished.

Now the onus is on the ministries concerned to take the proposed actions, and also on the Prime Minister to monitor their progress and hold them accountable.

This requires a reward-and-punishment system that provides attractive incentives to performing ministries and holds out credible threats to the laggards.

The central government has, in recent years, been making transfers to states conditional on certain milestones being achieved. Something like this needs to be done with the central ministries as well.

A second critical problem is with the ministers themselves. Ever since the reform process started, the country has seen positive developments in ministries looked after by people who believed in reforms and were able to carry their bureaucrats along.

In many cases, a change in minister meant a slowdown in momentum, if not a reversal. To give his agenda some real thrust, Dr Singh must be able to allot key portfolios to people who can make impact, rather than on the basis of simply having to accommodate people in the cabinet.

Whether the political milieu will give him the space and the strength to do these two things is, of course, the big question, but if you look at the agenda for the railways, education reform, power demands and so on, the solution suggests itself.