INTRODUCTION
The honorable Prime Minister announced to the Nation in his independence
day address that, “we will replace the Planning Commission with a new
institution having a new design and structure, a new body, a new soul, a new
thinking, a new direction, a new faith towards forging a new direction to lead
the country based on creative thinking, public-private partnership, optimum
utilization of resources, utilization of youth power of the nation, to promote
the aspirations of state governments seeking development, to empower the state
governments and to empower the federal structure. Very shortly, we are about to
move in a direction when this institute would be functioning in place of
Planning Commission.”
The abolition of the Planning Commission
means that there will be no National five year plans, no annual plans related
to it or flowing from it, and no meetings of Chief Ministers in Delhi to
discuss “State Plans.” Correspondingly
there will be no ‘plan allocations’ or financial approvals (by the erstwhile PC
or the new institution). The mandate of the National
Development Council would have to be modified (perhaps) by replacing “Plan”
by “Policies” and “Planning Commission” by BVNS/IDPI). The distinction between
Plan and non-plan expenditures will also dis-appear and needs to be replaced by
the economic (functional) distinction between “consumption” and “investment”
expenditure, with ‘repair and maintenance” of assets, included in the
latter. Its treatment as “revenue”
expenditure in government budgets leads to neglect and deterioration of
physical assets. By definition, “current” expenditures have a ‘short’ and
“investment” a ‘long’ time horizon.
The
Finance Commission, set up under the constitution, with a fresh set of members
every five years, to recommend the division of tax revenues between Center
& States and Grants in Aid from the Center to the States, focusses on
economic & social needs during the five years. Though “Grants in Aid” can
cover “capital” Grants, these are based on demands put forward by States, comments by Center (with inputs from the
Planning Commission), and any expert who wants to depose before the FC or is
requested by the FC to do so. With the
abolition of the PC, inputs based on systematic research and integrated
analysis of long term issues and problems would be reduced or eliminated.
The ministries of government, including
the Finance Ministry, are usually consumed by short term issues with a horizon
of a few years and are looking for quick answers. They do not have the time or
capacity for medium-long thinking or for obtaining an input from a wide variety
of relevant sources on a continuing basis. The new institute is designed to fill this gap
in government operation. Its experts can act
as a bridge between the routinized political or occasional crisis driven,
operation of most government Ministries and Departments, and the new ideas and
thinking across the country and World.[i] Global experience shows that there is little
or no transfer of new knowledge from Universities, research institutions and
scholars to Government decision makers, unless there are experts within the
government who can understand and appreciate new thinking and research and
translate it into practical policy advice and programs.
SCOPE
The new institute
would combine three overlapping elements,
a)
National Think
Tank that does ‘policy oriented’ research on important national issues,
b)
Policy Planning: An organization for
holistically examining Central Government (CG) objective, goals, policies,
institutions and programs, suggesting improvements/changes and doing “operational”
planning to achieve Central Government goals,
with respect to the Central list & part of concurrent list, that
come under the purview of CG ministries and departments.
[ii]
The Ministries would be required to give to IDBI, all data required to fulfill
this role!
c)
Federal Forum
for States to contribute to and gain from analysis of development goals and
problems related to the States (State list and part of concurrent list handled
by States) and solutions thereof.
Unlike
the Planning commission, which formally approved the detailed allocation of
“Plan funds” on an annual basis, the BVNS/IDPI‘s recommendations relating to
Central government ‘investment’ and CG “capital grants” to, and debt market
borrowing limits for, States for their
‘investment’, would be advisory. This
would provide to the PM a considered view independent from the parochial views
of the Central Ministries and Departments. The formal financial allocation
process would be undertaken by the Finance ministry, in the light of Finance
Commission recommendations “Grants in Aid” to States for Investment and the
directions of the PM.
MANDATE
The national mandate of the BVNS/IDPI could include;
Future
Challenges & Opportunities
1. Analysis
of economic, demographic, environmental, social & international trends and
forecasting potential problems and opportunities, which will affect the Nation
or a group of States (over different time Horizons ranging from 4 to 20 years). Working out and disseminating potential
solutions to problems and ways of exploiting new opportunities through
appropriate Policies, institutions. laws or initiatives.
Current goals & problems
2. Definition
of national and States’ goals (development, growth, employment opportunities,
poverty elimination, public health, basic education & skills) in
operational terms, analyzing current national, regional and States’ problems
and searching for approaches/methods that have succeeded in achieving goals
most efficiently (in India or in other countries). The analysis would relate to
policies, institutions or programs and the most effective mix of government,
private and non-profit/non-govt. organizations (including PPPP). Disseminating “best practices” to States and red
flagging methods and approaches that have failed.
Past Review & Learning
3.
Reviewing and analyzing Central and State
Government institutions, policies, programs and projects and analyzing the
reasons for their successes and failures. Drawing lessons for the future and devising
ways to improve current & future programs and projects.
Resources: Optimal Use
4.
Policies and institutional structure for the
optimal use of natural resources (land, minerals, oil, water, energy) and human
resources (job skills & education, public health). Policies and institutional structure to
promote efficient and effective use of capital resources (domestic and foreign,
government, market & NGOs-NPOs). The
institute on Public Private Partnership, “3P India” proposed in the budget,
could be a part of the BVNS/IDPI or an affiliated institute.
State, Federal
5. Interact with States Governments & experts
working on States’ problems, with a view to identifying issues and problems
that they are seeking answers for. Searching for solutions among other States
and globally. Working with States to adapt, operationalize these solutions. For
this purpose it could carry out case studies or pilot projects in States. Seek the active participation of States to
meet national development goals. Devising mechanisms & institutional
structures to stimulate and sustain States active participation on a continuing
basis.
Advisory Bodies/Mission Groups
The Institute would set up a number of
Advisory Boards on complex issues (e.g. climate change) or issues that required
detailed knowledge or expertise (e.g. legal ambiguities in tax laws, PPPs or
supply contracts) or which required continuous interaction (creation employment
opportunities, “Ease of doing business”). The institute could also appoint task
specific advisory committees (e.g. defining the parameters of a “smart city”,
propagating specific policy conclusions).
The new Institute should immediately
set up the following groups for translating the PM’s vision, as suggested in
the BJP manifesto and the subsequent statements of the Government (Presidents’
address to new Parliament, Budget Speech of FM & Independence day address
of PM) into concrete policies, institutional changes and programs.
Digital India Group
This group would
prepare a vision, an integrated Plan and related polices for extending the
broadband network to every corner of the country and using it to provide E-gram,
e-governance solutions, E-education, E-skilling, E-Public health, E-medicine, E
-commerce related to agriculture, etc.
Swach Bharat Group
This group would prepare national
approach to Sewage, Sanitation, Public Toilets, Water pollution and the
creation of a solid waste disposal grid and a waste treatment and disposal
grid. It would prepare a plan for creating a clean India with the participation
of all citizens of India, including issues like public education on health and
cleanliness and using the advertising industry and other private groups to
promote cleanliness.
Smart Cities, 100 Cities Group
New Cities/smart cities to create jobs and
employment opportunities, efficient use of energy and water, land use planning
to minimize transport costs and traffic congestion, integration of public
transport, cycling and walking. Cost efficient ways of using technology in a
lower middle income country with a population of 1.2 billion. It would also
address the issue of why India has slums instead of rental housing for low
income people (as in developed countries) and how to change this.
Ease of Doing Business Group
This group would document
the jungle of controls that hamper business and commercial activity and job
& employment creation. It would develop comprehensive strategies, legal,
regulatory, administrative and political, for cutting oppressive controls and identify detailed action at every level.
National Water Grid
This would cover
issues of connectivity of rivers,
depletion of underground aquifers, spatial agricultural policies for optimal
use and conservation of water, supply of clean drinking water to all citizens. Use
of flood plains of monsoon fed and seasonal rivers to store and supply drinking
water. Supply and pricing of water for
commercial and industrial use. Use of waterways
for internal transport. Cross border transport and to transit across
neighboring countries.
Sagar Mala Project Group
Use of major and
minor ports to promote, international and national trade and commerce, to
reduce transport costs and energy used in transport. Policy and institutional changes needed for
achieving objectives(eg in Port Trusts Act and the structure and management of
Port Trusts). Promotion of economic
integration of all coastal areas as well as the coast with the hinterland
through integrated road-rail-river connectivity.
Public Security Group
Reexamine all
aspects related to public safety security of citizens, particularly that of
Women and Children in a changing social context of greater mobility(from
ancestoral village to other rural & urban areas) , the move from joint
families to nuclear ones, girls studying at distances from home or in other
village/city, greater number of women working outside the home, young men disconnected
from family and childhood support structures. Work out legal, judicial, police
and other reforms. Develop ideas for community social, sports and activities
and community structures and institutions to support them.
Institutional Structure
A radically different
structure can be envisaged in which there would not be one, but two
separate institutions.
I.
A Development Policy Institute combining the
role of a policy oriented think tank and the role of the Economic Advisory
council to PM. Thus the PMEAC could become the Governing Board of the Think
Tank and its chairperson the primary economic advisor to PM. This would cover
all national issues and problems that the Central Government has to address and
decide on.
II.
An Inter-States Forum which is a re-designed
‘Inter State Council’ with its own research Staff and research departments,
dealing with issues on the States list of the Constitution and parts of the
Concurrent list that are under States’. This body would have much greater
representation from the States, Staff with experience in States and Experts on
State level issues.
Appendix: Conventional Structure?
If a conventional approach is adopted, the institutional structure could be as follows: The Institute would be
managed by a Deputy Chairman/Managing Director/CEO and overseen by a governing
board, with PM as Chairmen and the DC/MD/CEO as ex-officio member-secretary.
Members heading the three to five overarching
departments of the BVNS/IDPI(below) would also be ex-officio members of the
board of governors.
The governing board
would have representation of Chief Ministers/State Ministers and Central
ministers (current of former). A dynamic former CM/State minister could head
the Department dealing with States’ issues. It could also have a couple of
active business persons, familiar with the difficulties of investment,
job/employment creation and production as members. The rest would be
macro-economic, sector, industry or other experts, who head the departments of
the institute.
The organization below the board
level, managed by the DC/MD/CEO could have either of the following structures:
A.
Three major departments, headed by Board
Member/Directors, corresponding to the three broad objectives outlined under
the “Scope” section: (a) A department corresponding to a high quality “think
tank”, (b) A policy planning department for analyzing & suggesting Central
Govt.
policies, institutions and
resource allocations and assisting Central Govt Ministries in “operational
planning”
[iii]
(c) A department dealing with Issues of interest to the State, particularly
those on the States list and parts of the Concurrent list.
Each of these could have a number of
divisions dealing with different subjects/issues/goals (eg Transport, Energy,
Sanitation & Cleanliness).
This may
require a seven person governing board.
B.
Five departments headed by Board
Member-directors corresponding to the five mandates: (1) Future challenges and opportunities, (2)
Present objectives and problems, (3) Evaluation of Past experiences, successes
and failures, and lessons thereof. (4) Optimal use of the Nation’s natural and
human resources, and (5) Strengthening the Federal Structure and greater
participation of States in development.
This may require a nine or ten person governing board.
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A version of this article appeared
under the banner, “What the Modi Government’s Mandate for the New Think Tank
May Include,” on 23
rd August 2014 at
http://ow.ly/ADChr
.
[i] It
is assumed that the Economic Advisory Council to PM (PMEAC) will be folded into
the new Institution, while the “Inter State Council” would continue, perhaps in
a modified form!
[iii]
Virmani (2007) op cit.
