Historical opportunity missed
Even as the 25th anniversary of the economic reforms is
being observed, two unrelated developments at the Centre and the States,
respectively, draw attention to the functioning of the machinery of government.
Following the recommendation of the Seventh Pay Commission, the Cabinet has
approved a 23.5 per cent hike in the salary of Central government employees. In
Kerala government is considering constituting an administrative reforms
commission to be headed by former Chief Minister V.S. Achuthanandan. The Kerala
government has also shown itself to be concerned over the constitutional
propriety of its plan in that it has sought advice on whether the proposal
would run afoul of the principle of ‘office of profit’, as Mr. Achuthanandan is
a sitting MLA. Both announcements have implications for us as citizens.
Unlike in the States, some of which have a legacy of administrations
instituted by Indian princes, the protocols of the Central civil service have
been borrowed lock, stock and barrel from the East India Company. The
bureaucracy was both the instrument for extracting India’s wealth and
repressing the native population so that the former activity could proceed
unhindered. It is no coincidence that the Collector had combined tax collection
with the maintenance of law and order. Unfortunately, not only did we not
pension off the Indian Civil Service in 1947 but we actually continued with its
privileges. Only this month has the Madras High Court ruled that the
investigation of the conduct of public servants no longer requires a nod from
the government.
It is noteworthy that we have witnessed two major changes in
the economic policy regime, first in the 1950s and then in 1991, but there has
been no serious administrative reform. When these reforms do materialise they
should be focussed on establishing the principle of accountability of the
bureaucracy to the citizen. It is not surprising that there is no such
provision currently. The legendary concern within the Government of India for
procedure when it comes to matters financial is all of a piece with this. The
East India Company was a profit-making concern. Its business model, so to
speak, had been extraction and it aimed to achieve this via what political
scientist Sunil Khilnani has termed “cheap governance”. The financial oversight
had not stemmed from a commitment to probity as much as commercial
consideration. In this governance model there had been no room for sensitivity
to the aspirations of India’s populace. In fact the ‘steel frame’ and the
Indian Police had been designed to thwart them.
The consequences for India of retaining the protocols of a
colonial bureaucracy are obvious. The system is imbued with ‘procedural
rationality’ where the focus is not on the outcome but on adherence to
procedure. The waste of resources that can accompany such a practice is
overlooked, for outcomes are of no concern; procedure is. It is only when we
extend our vision beyond the secretariats, of both the Centre and the States,
that we even begin to contemplate the magnitude of the resulting waste and
hardship to the people of this country. Once we see the public sector as
extending to all spheres of government from the top echelons of the bureaucracy
to the local government apparatus we would find that economic reforms without
overhauling the administration can only have limited impact.
Three areas in which increased public spending is not having
the intended impact, namely irrigation, education and provision for
mother-and-child care. This stems from the inability to enforce appropriate
behaviour in the bureaucracy. When a nation’s ability to expand the production
of food or advance human development is hobbled by ineffective governance,
purveying further liberalisation of the economic policy regime is tantamount to
evading the real issue. The central role of administration in economic progress
has been recognised in the characterisation of East Asian governments as
bureaucratic authoritarian industrialising regimes (BAIR). While this is no
case for turning authoritarian it does suggest that the Indian bureaucracy too
could have been a force for progress were it effectively governed by the
political leadership.
We often hear of the potential of information technology
(IT) to alter the state of affairs with regard to governance. Such a view
appears to underpin the Digital India initiative currently on. It should be
given a chance to succeed, but the limitations of a purely technological
approach in the context may be borne in mind. Kentaro Toyama, formerly of
Microsoft Research India, has shown how IT intervention has limited impact on
developmental outcomes when the political will is absent. This is because technology
can only be the ‘force multiplier’, it is not the force itself. The positive
intent must originate in politics and motivate the bureaucracy to deliver on
its mandate.
Most evaluations of the Cabinet’s decision to raise the
salary of the Central civil service miss the point. They have focussed on the
quantum of the increase and declare it reasonable as 10 years have passed since
the last Central Pay Commission award. This fails to take into account that in
a global comparison of average salary in relation to the country’s per capita
income, India’s Central civil service has historically been far ahead of its
counterparts in Asia, Europe and the United States. By bequeathing a salary
hike without stipulating superior performance, the Government of India has
foregone an opportunity for administrative reforms.



