Governance 2009: A New Deal for India ?
The mandate of Elections 2009 has given India a stable government, with a Political leadership that is talking of bringing some real change to the country. Whilst these claims are to be tested by time and real deliverables, I am very hopeful that this time around, unlike the last term, there will be real transformational changes.
For most part of almost 2 decades of economic reforms in India, the focus has been on the private sector and reforms of the economy. These have worked - with private capital, private sector and entrepreneurship playing an increasing role in making the economy more efficient, creating jobs and wealth.
But as I have written before, the state or the Government has not kept pace with progress in the private sector. The Government or state and its representative institutions like Bureaucracy, Judiciary, and Executive have not kept pace with the progress of the rest of the country. This is where the real reforms need to focus on.
In the 1930s, Franklin D Roosevelt, President of the US, introduced the “New Deal” for the US and its people. The phrase itself originates in FDR’s acceptance speech at the 1932 Democratic convention in Chicago, in which he promised “a new deal for the American people”. The various measures included support for, and reform of, the collapsing banking industry, a new stock market regulatory agency, moves to boost wages and prices, the creation of massive public works projects and – perhaps most important of all – the launch of Social Security, the American equivalent of National Insurance in the UK.
Taken together, they not only constituted a “New Deal” to help ordinary Americans. They also initiated a new era of government activism, in terms of both intervention and regulation of the economy. Many New Deal programmes still exist, part of a safety net that even today’s most laissez-faire right-wingers in the US would not dare touch.
India needs a New Deal and the ideas below could be part of India’s New Deal.
I. Governance Reforms and Public Policy priorities
The last decade or so, the focus has been on Economic reforms. Unfortunately whilst the economy has moved ahead, the government and the government institutions have declined significantly.
The institutions of the government to the most part have been corroded by political interference and influence. Professionalism has given way to political pandering and hence the institutions invariably fail (at high cost to the country and people) to fulfill their duty and role. These Government and state institutions must be made more accountable, responsive, transparent and outcome oriented.
a. Depoliticize, Build and strengthen Institutions
1. National Security, Law and order institutions - Armed forces, Police, Paramilitary, Intelligence and Counter Terrorism agencies, Investigation agencies to be professionalized, upgraded and removed from Political interference and influence of any kind including transfers, appointments, promotions.
2. Economic - Strengthen the Independent regulators (Amend laws to make them stronger), make them accountable only to Parliament and independent from executive/ministries, have them depose to Parliamentary committees which in turn are available for public viewing or transcripts made public, bring in non-bureaucrats into Regulatory cadre.
3. Judicial - Significantly expand Judicial Capacity by hiring 80-100,000 new judges. Bring in a judicial review commission of Judges that will be responsible to address corrupt Judges and have the power to sentence them. Improve technology to make judicial access for citizens easier.
4. Election commission - Strengthening of Election commission and to depoliticize appointments to it.
b. New architecture and approach to Government Spending. Public spending is notoriously leaky and fosters corruption and worst only a small percentage of spending reaching the target. Fundamental reforms in this area are necessary and are long overdue.
1. All spending to be outcome driven. All programs must have clear annual outcomes.
2. New and more effective (less leaky/corrupt) subsidy delivery model - Smart card/ID Card/Common BPL Database oriented etc.
3. Reduction of corruption and leakages in public spending is a key requirement of these reforms in Government spending.
4. Restructure central programs and move most directly to states - add allocations to state budgets and States can administer these programs or other programs as they see fit. These programs must be audited by Independent spending auditors and publish quarterly report cards in the public domain.
5. A new Social security framework that covers unemployment, health and education.
6. New comprehensive policy to address Urban Poor. There is sufficient focus on rural poor today but not enough on Urban Poor.
7. Revamp JNNURM for accelerated redevelopment and rejuvenation of our cities and urban centers. Currently JNNURM has become more of a program to fund individual projects rather than a full city’s development.
II. Constitutional amendments and reforms
The constitution as framed and amended at various times in our history has not factored for two modern phenomenon - Coalition politics and the Modern opportunistic politician. The constitution founding fathers had assumed that we would always have one party in rule and that there would be good, capable people being elected to power to steer the country. Unfortunately both those dreams and wishes have proved to be just that - dreams.
a. Constitutional, Legal amendments and Reforms
1. Fixed term for Legislature
2. To prevent repeated elections and political volatility a fixed term for legislature is required. If governments fall, same legislature is forced to form another government and if that fails, Presidents/Governors rule will continue till the term is over or legislators form a new government.
3. Concurrent state and Central elections - Following from above, to reduce costs and to ensure that elections don’t come in the way of governance as they do today, elections to be held once in 5 years.
4. Recall Elections - to recall Elected representatives if they are found to be non-performing or violating the trust of the electorate in forms of impropriety, conduct etc.
5. Amend constitution to make Labor as a state subject.
6. Make Inducements for religious conversions a criminal offence.
b. Devolve more powers to the State.
Currently for many issues there are two separate and distinct government overheads/ superstructures/bureaucracies at work, adding costs and impacting effectiveness and efficiency. There’s no logic for many of the central ministries except to give un-gainful employment to ministers and bureaucrats.
1. The constitution can be amended to move some of the concurrent subjects to State list - like Labor, Health, Education, Road etc.,
III. Economic Reforms
a. All sectors of economy (except those of strategic nature to be listed) to be subjected to intense competition. Sustained consumer benefit and economic efficiency will only arise from this.
b. Review the SEZ framework. To frame guidelines for acquisition of National land.
c. Launch a significant nationwide Infrastructure building program (Using a combination of Private and Public Capital)
d. Reform financial sector with the objective of increasing competition, deepening and widening the debt and equity markets, and at the same time ensuring good regulation of markets and market participants.
e. Focus on FDI and increase strategic capital flows into our Economy in all sectors.
IV. National security and integrity
a. Ensure a National Security Advisor, who is a security professional (preferably from Military).
b. Appoint a retired General as Head of a new Department of Veteran and ex-servicemen affairs.
c. National ID card for all citizens.
d. Create a clear policy towards illegal immigration and migrants.
e. Stronger Anti-terror laws, Fast track Anti-terror Courts and audit/review commissions to oversee application and use of these laws.
f. A new Counter Terrorism Agency.
g. Align all security forces and agencies to our principle threat of Terrorism and evolve a new structure that ensures full, seamless co-ordination.
h. Ensure Armed forces and ex-servicemen, Paramilitary forces and men and their many outstanding demands on welfare, resettlement are addressed
These are some of the ideas that can go into India’s New Deal. This kind of a New Deal will change the face of India and lives of Indians for coming generations. Given the overwhelming majority in Parliament and the feelers of consensus politics from the Opposition, this New Deal can be a reality.
However in all this triumphalism and celebrations, let’s remember that this kind of euphoria and increased expectations are not a new phenomenon. We saw and experienced this in 2004 after the ‘Dream team’ came into Government. They disappointed then and I hope they don’t again. This time around, this is a mandate for a Government with no excuses!
19 Responses to “Governance 2009: A New Deal for India ?”
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Srilatha on May 23rd, 2009
We need to strengthen the system of checks and balances in India so that no branch of Government or individuals within the branch can abuse the system. Your proposals on term limits and recall elections are critical for this. This reform at the foundation is needed so that all other planned implementations like anti-poverty initiatives, devolving powers to states, reform of defense and security can be successful. Learning from the present economic disaster in the United States, I would suggest that the economic plan places greater encouragement for locating and sustaining labor-intensive manufacturing industries in India. Not all Indians are in call centers and tech. I like your idea on National Database and Smart Cards - but concerned about possibility of privacy violations and Big Brother policing. Reform of national security is absolutely necessary. The recent tragedy in Mumbai taught the world how vulnerable we truly were in today’s world where war can be small, localized, and sudden. I’m absolutely thrilled that in the land of sycophantic politics, there’s some one like you in the Rajya Sabha. Wish you all the best for implementing this vision.
nitinbhai on May 24th, 2009
Three arms of the Government viz. Legislature,Executive and Judiciary are inter-related. The Govt. should take a wholesome approach to remove the inefficiencies in all these three arms. Piecemeal or Ad hoc approach will not work and will do more harm than good.
I hope that those who are sitting on the top understand and for once, stop being greedy, look beyond their personal interest and look at the welfare of our country and it’s people.
Gautam Nandi on May 24th, 2009
Good ideas and changes cannot be achieved without constant public engagement. The system is too corrupt and rotten to be left in the hands of the limited few (like you) to make an impact to change/improve matters.
Devise some innovative lines of communication with the citizen at large in supporting him to remain interested in what needs to be done and what is getting done.
Effective and robust non-partisan pressure groups have to be built to ensure that the opportunity presented by the current mandate can be converted into action that we expect.
bhat nvgk on May 25th, 2009
waste and leakages to be plugged in electric power, distribution in perishable commondities, idle burning of petrol and diesel due to traffic congestion, water storage and distribution. also privitise all loss making public sectors and defence production units. give powers to lokayukta to punish the corrupt
TJ on May 26th, 2009
This sounds like a good manifesto for a new party.
I am in.
Bsk777 on May 26th, 2009
Oh, please.
When did any government in India ever keep its side of the “deal” with its people? It is not the deal that matters in our country, it is who is going to honour it. Nobody in the government machinery has any incentive to perform, and plenty of incentive to not perform. Only bribery can get a government official moving on anything at high speed and efficiency.
We can bring reforms on paper, but unlike the private sector, which people are directly accountable for all sort of progress or lack of it, the government sector can sit with that “duh” expression and watch, without doing anything constructive ever. Look at the profile of the average government employee and compare it with the profile of the average private sector employee. That is the reform that is most needed.
How do we take the millions of (cl)asses that work for the government and make them run like horses? Look at the quality of people that join any government institution to start with. Without a question of a doubt, the private sector attracts the best and the brightest the land produces. Even the dumb ones that fall through the cracks into the private sector employment net have to pick up and perform at some level.
If you work for the government, you are a job security seeker, not a competitive performer. So, let’s really worry about how to scare the average government employee into actually working, instead of occupying a chair and wasting taxpayer rupees. Just walk into a government office and try to do the simplest thing, and you will know what I am ranting about.
Reforms are good, and by no means are any of your ideas lacking in legit concern or validity. But these will remain just ideas and thoughts as long as we have the same government employee mentality that infests all government institutions today.
From cloud nine, with the euphoria of the Congress getting the “no excuses now” mandate in the elections, it might appear as if real change is on the way, and we are well on our way to making progress. That is all good for talk shows and public speeches, but on the ground, what is the incentive to change the Indian government employees’ attitudes towards work?
If we solve this fundamental problem, all our issues will vanish overnight. Most of them, for sure. I for one, am willing to pay any price to make this happen.
Nandakumar on May 26th, 2009
Good thoughts and ideas. High time that our politicians realsie the importance of sacred institutions that have been built over the years - Judiciary, Research, Educational and Medical institutions, etc. I like your observation that we need to reform the government in the way it works, rather than ask the private sector to reform. We shoulc really change the “face” of the government as it were. Look at how decadent the government hospitals, schools, and offices have become. We should really have a transformation and it is possible with a brand new mind.
Chandra on May 26th, 2009
A great list.
However, one thing that’s left out is reform of the education system. If you look at ASER surveys, some 40 to 50 % of the kids enrolled in government schools are still illiterate even after spending 5 years in schools.
Education reform at very low level and education reform to privatize universities and to allow universities to come up with courses and curriculum without approval from the UGC is needed.
Again, many thanks for sharing such a list of priorities for India.
williamsmith.jk on May 27th, 2009
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shastri.medhatithi@gmail.com on May 27th, 2009
We need to reform the Governance itself, both central and state.
The political class is so bad that untill and unless we reform them we cannot refom our governance.Old out dated politiaians should be shown the door.There must be a performance check for them .
Some of the laws are british made still we are using it.They are made to exploit us.They are to be repealed and replaced with new ones.
Balaji Muniraju on May 28th, 2009
1. Reform the Governance both central and state wise.
2. The political view of general people is bad, and Educated people are afraid of knowing what is Politics just because of bad view about politics, Show clear pictures about what is Government, who should be IN and Who should be made to stand OUT.
3. Every citizen should have a “Review of Work” in their area.
4. Every citizen should have a gang of their local peoples to Sit and discuss of needs and unwanted for their area Development projects from Government.
5. Every citizen should be given the right for Encourage/Discourage of unwanted project works from government for their respected locality.
6. Every Minister should perform their “Performance check” Quarterly and the same should be made available to common man and feedbacks must have respect.
7. Some of the laws are British made and still we are using it.
They are made to exploit us and keep the poor as poor and Rich as Rich, They are to be refurbished and replaced with new ones.
8. Human rights Commission should know which acts of Human are to supported and which are to be punished immediately, Support POLICE, GOVERNMENT not CRIMINALS and TERROISTS.
9. Every state should go with Central Government.
10. Opposition parties are made to find the mistakes of ruling parties and discourage them then & there itself, and they should not forget to encourage when ruling parties does good work.
Ruling parties should take the words of oppositions when valid.
EVery citizen should know their rights, rules and laws, first you stop giving bribes, dowry then go for protest.
Take Advices but always make your own Decision…Bali
Peter Morris on May 29th, 2009
The comments of BSK 777 drive home the point. He has hit the bull’s eye. My Medical Insurance policy from a nationalized insurance company is due for renewal next month. My personal visit to the office of the said insurance company is a nightmare. The office is supposed to open at 10:00. There is no sign of anyone other than the substaff till about 11:00. The branch manager himself stroll in after 11:15. Well Rajiv, as a member of Parliament, why dont you make a surprise visit to one of these offices to see for yourself (I will be glad to lead you). This is in Bangalore, the consituency that you represent in Bangalore.
OJAS on May 30th, 2009
I read your blog and found it very informative. The event blogs are striking enough to have a feel of the event, so, I would like to have a little chit-chat on your blogging interests. And even we are coming up with an event on startups on June 6th in Bangalore. So, can I have your contact details? Looking forward to hear from you.
Link for the Event: http://www.siliconindia.com/startupcity_09/index.php
Contact me: ojas@siliconindia.com
vijayvir on May 30th, 2009
It was refreshing to come across this blog of yours as it comes from someone active in the political arena.
I have been on and off following your activities through the media and was glad on your having taken a plunge in politics a couple of years back. The Indian political arena desperately needs people like you. The recent elections and the rise and the acceptance of the members of the Rahul brigade is testimony of the fact that people with freshness of ideas are welcome by the voters. Having said this, entry into electoral politics is not easy. It is so only for the sons and daughters of the political bosses at various levels of any political party. The current council of ministers is enough proof of that. The list of the junior ministers (MoS) is full of sons/daughters of senior politicians.
You having reached a stage where you are today and given that you are seemingly intersted in good governance of the country, you ought to be taking active part in the Indian polity which gets limited not being associated with any major political party. I would have actually been happy to see you having joined either of the two mainstream parties before the last general elections and actually having fought for a LS seat. You certainly would not have been handicapped not being the son of any former politician. The Indian political system that it is today will definitely reward people like you. How else would you describe the advent of Shashi Tharoor, Meenakshi Natrajan to name a few.
Wish you all the luck !
K.VITTAL SHETTY on May 30th, 2009
If the Indian National Congress implements its election manifesto in all its sincerity, it will do lot of good to the country.
Many of the points said above are incorporated in the manifesto.
1.In the name of reforms we should not bring capitalism which has ruined not only US & Europe but brought misery to the rest of the country.
2.Private sector must be given a free hand and they must be allowed to enter in any field without any restrictions from the government.
3.Public sector undertakings must not be privatised and it must hold minimum of 51% stake.100% stake holding private enterprises must be allowed to disinvest upto 49%. If all public sector undertakings are allowed to run professionally the dividend declared by these undertakings will be enough to bridge the dificit financing.
4.Theres must be a cap of executive salary as proposed by Barrack Obama in US and this should be capped at Rs.2.5 crore per annum and all those who draw more than this must be taxed at 50% as was done in UK in the recent budget.
5.Labour reforms must be undertakan and all restrictions on bonus like maximum must be scrapped. Bonus must be declared as deferred wages.As suggested by NR Naryan Murthy there must be a percentage variation between the top executive and the lowest paid.
6.TDS on interest on bank deposits should be raised to Rs.1 lakh from present Rs.10000 to encourge savings and to protect senior citizens who live out of interest income only.TDS on dividend above Rs.1 lakh must be reintroduced.
7.UPA must understand that the victory to the Congres and its allies was mainly due to inclusive growth by taking all sectons of the people along.NAREGA, Farm loan waiver, minimum suppport price are the reasons for its victory who are not demanding and vocal unlike big inustrialists who want all the concessions from the government and do not pass it on to the consumers.
8.Election Reforms:Those who are already members of any of the state legislature or parliament must resign befor contesting the elections. Similary to avoid defections, persons who change their party must not be allowed to contest in the elections in different symbols or party for at least another 6 yeras and must not hold any office of profit, if he changes his party.
Banking Reforms:Private/foreign banks must be allowed to open branches in rural areas withoug any restrictions and there should be competetion with public sector banks to reach out to the remotest corners of the country.There should be at least another one lakh banks branches so that there will be one branch for every 1 km to enhance the incluseive growth and every citizen must have a bank account.This branches must be fully computerised and with CBS and transactions by mappings for rural illeterates.
9.Heath care for all: All private hospitals, charitable institutions, Employees state Insurance hospitals, army hospitals must provide free medical facilities to senior citizens, BPL familiies and unorganised labour.All these sections must be covered under free insurance by all private and public insurance companies with premium share with government.
10.All concessions and subsidies must be scrapped and income tax slab to be increased to Rs.5 lakhs including agricultural income.
This 10 point programme will ensure that GDP growth of 9% is cornered only by the affluent sections of the society where few grow richer and richer and poor becomes poorer.
SILENT AAM AADMI BROUGHT VICTORY TO UPA AND NOT THE VOCAL SECTIONS WHO DEMANDED MORE AND GAVE NOTHING
10
sushilguptajaipur@gmail.com on June 4th, 2009
Presidential address are always well articulated, infact the Govt should come out of the detailed statistical facts as how we have progressed in last five years against other countries as well as against previous five years ( 1999-2004). Moreover the using words secular again and again unnecessary emphasizes policy of appeasement. The so called unsecular parties would have also understood the winning mantra from now on will be ” development and development only”. The outcome of this election jutifies this fact upto certain extent with results of UP, Bihar, Karnataka, Andhra Prdesh, where people have voted for development and no-development only. Even the cast base politics has been successful only in Rajasthan state upto certain extent. Infact time has come that we should look for equal oppotunity for all. Furits of reservation should be tested by only those who need it. Calling son of District Collector as backward or reserved is mcokery of reservation system. Education for minorities should be free for every level and even some incentives may be given them for getting education, else we may head towards Talibaization of Indian Madarsa System in near future and this should not be considered as policy of appeasement. Free Land should be provided to Retd Defense Personnel along the border villages for effective control of insurgency. If Combing operations are undertaken in suspected areas without the apprehension of losing votes, part of the problems of terrorism may be solved. Income Tax limits should be moved upwards upto 3.0 Lacs per Annum, Persons giving IT should be removed from reservation system. More Control is necessary on Monetary Sector rather than giving relief on as and when basis. This will inculcate weekness in our economy. We stood firm in this era of recession because of our good fundamentals and not because of some pity efforts by Govt.
Wg Cdr (Retd) kuber kemkar on August 17th, 2009
Governance starts with government and that originates from politics. I think the entire political system needs an overhauling.
Firstly Political Parties.
A political party registered anywhere in India should be based on ideology which does not take in caste, creed, or religion.A visit to TamilNadu will reveal how many parties are there pandering to specific castes and communities and thereby being divisive in nature.
Definition of national party which can contest Lok Sabha elections needs a total change.
Giving a future date all parties not polling a certain mininmum percenatge across India needs to be derecognised as national parties. Otherwise you have regional parties like DMK ,RJD and a host of such parties which are visible in only one or two states calling the shots in the parliment, Government (in case part of ruling coalition) which are detrimental to overall national interest. There has to be a state interest and a national interest clearly defined with the latter having overriding interests.
Limitation of number of parties in each state and also at the national level. Democracy does not mean anybody and everybody can form a party and keep calling the shot in todays coalition politics.
The entire list of concurrent lists and issues between states and centre needs to revisited. For example cities like Mumbai, Bangalore are national in character and not just state capitals. So problem in law and order which is a state subject as of now needs change because many a time enough damage is done before the centre intervenes in crisis situations.(A no of examples are there standing to it)
Secondly Police Reforms.
This has been on for so long but no changes have taken place because politicians do not want give thier control over the masses once in power The case is same whether it is the CBI or the CID of state police. One visit to police station in the backward regions of india anywhere will show how much police has been politicised and the role of the Local MLA whose role as people’s rep is totally inconsistent with principles of natural justise. Cases to be filed or not filed is decided by the MLA calling the shots. In such a scenario what justice can a common man expect.
Thirdly Criminal Justice system.
How can a witness turn hostile at a later stage of trial for whatso ever reasons. Revamp of the system will include repealing of archaic laws, procedures, limits to time, work in two/ three shifts for all governmental offices.
Government Employment needs certain corrections. Review of performance (measurable) needs to be put in because the present system is just a formality of filling in data sheets for employess at Group D C, B levels.
Fourthly Reservations.
The constitution provided for reservations with some purpose. But today a 1960’s SC & ST employee has his son Admitted through reservation and probably his son too would do. Still people will refer to him or her by his caste (Surnames)What has reservation done > Nothing except made the guy work less harder because he knows he will get sdmission or promotion faster.
Kuber
saitkuber2002@yahoo.co.in
ashish on August 27th, 2009
Nice to see your blog … Its seem
“Still there is hope”.
The list you created is covers all aspects and factors that require not just to make India developed country but the country where we
live with faith and happiness.
coming back to the solution’s side of these aspects.
How to drive the masses to make it happen?
There could be many way.
Its my personal believe that whole nation will go with your words
but where is the real challenge?
Why we do not have such governance in place?
I not traveled too much across the word but which ever developed country i traveled one thing was common Corruption and again one more thing was common media which exposes the corruption and people of these countries are convinced that media is the only thing with really acts as guardian against Corrupt system.
Coming back to solution through technology.
How this media become such power full?
Answer is due to technology advancement.
So answer to the big question is clear.
Put technology in place in every process of the governance and give the transparency to the system through acts like RTI and lokpal bill.
But How this can be possible?
My view on this problem is - A LEADER Like you.
i have a hypothetical approach.
Why can’t we make a group of people who analyze the current governance process (Lets say starting from judiciary to revenue etc) and make a plan to automate the processes, bound the government machinery for their accountability through technology driven transparency.
For example as you also written about the judiciary which is so corrupt that if one want to get the copy of any legal document he or she need to pay bribe to get it. At least we can stop these kind of through technology. Let Technology transfer the right to information to the common people.
I mean to say replace the public interaction with technology.
we can form a NGO which study the processes one by one and recommend the technological solution that provide the transparency to the individual and Leader like you will take the responsibility to make the consensus in the parliament.
I have strong believe that whole nation is with your words and your will and believe.
Vipra Sehgal on January 16th, 2010
nyc 1….n vryy true….
govt really need 2 set up its priorities…