Trust your people
In past few years a multiple cracks have surfaced on Indian
socio-economic canvass; especially in terms of governance, capital,
infrastructure, policy, business & investors’ confidence, regulatory
framework etc, leading to plateau in the growth trajectory.
Consequently, the investors no longer seem totally enamored with
the still high growth potential of Indian economy highlighted by the immense
investment opportunities in incapacitating infrastructure deficit, enticing
demographics, burgeoning middle class, low consumption level, scope for rapid
urbanization, etc. It is not uncommon to find people asserting that the growth
seen during 2003-2008 was an exception, in the long term trend of 4-5% growth
rate.
Historically, high fiscal deficit, trade deficits and
infrastructure (especially energy) deficit have been recurrently swaying the
investors’ sentiment. However, recently governance and trust deficits have
attracted more attention.
In our view, the most valuable resource for India is her people.
In not implementing the recommendation of Balwant Rai Mehta committee (1957) on
local self governance, our political system has been unable to develop an
environment of mutual trust and transparency and thus failed the people of
India. Despite, Narasimha Rao government ensuring 73rd
constitutional amendment in 1992, the political establishment has obdurately
refused to share power with the local bodies and common people.
As per NCAER 2008 Devolution of Power Index – only a handful of
States have done meaningful devolution of power to Panchayati Raj Institutions
- Madhya Pradesh, West Bengal, Tamil Nadu and Kerala being the notable one.
A series of irregularities that have come to light in past two
decades suggest that lack of transparency in government functioning and
substantial discretionary powers enjoyed by elected representative in
appointments, procurement, resource allocation etc. are the primary reasons for
governance deficit.
In our view, an overhaul of governance is long overdue and
should be done expeditiously. The following could be a part of agenda that
needs to be implemented in this context:
1.
Minimize the size of government. Devolve powers
to Panchayti Raj Institutions. Trust people.
2.
Enforce fiscal discipline legally and
constitutionally. Violation of FRBM targets without approval of 2/3rd
majority in Parliament and State Assemblies should be prohibited, and FM should
be made personally culpable for any violation.
3.
Make public offices un-remunerative by stripping
most discretion enjoyed by the elected representatives.
4.
Implement electoral reforms, especially state
funding of elections which is widely believed to be at the root of most corrupt
practices.
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