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Saturday, July 22, 2017

Civil Services Reforms and India Inc

Recently, Government of India has directed the DoPT (Department of Personnel and Training) to prepare a proposal over lateral entry in energy and infrastructure related departments of government at mid to senior level decision making. This step of government will not only has bearings upon the civil service personnel, but to a larger scale on the economy and industries also. This is because, still the critical public goods and infrastructure are provided by government only. And lateral entry will directly impact this decision making
Lateral entry is the entry of domain experts from private and social sector into specific government role, will improve the collective knowledge and understanding of decision making group. This will reduce the time taken in decision making by government authorities, bring advance practices into government machinery and more synergy between public and private space. For India Inc, this speed in decision making will save time, money and interests on borrowed money. Energy and Infrastructure sector which has been marred by coal scam and poor decision making (regarding risk allocation in PPP infra projects) respectively, will definitely be benefited by this arrangement.
Also, with entry of private counterparts, civil servants can’t afford to be lethargic and will be performance oriented (given senior level posts are open to both public and private individuals). This will improve the situations in other fields like contract enforcement, getting electricity connection and registering land titles etc. All these will have direct bearing on India Inc, and in positive way. But, this reform has many lacunae and issues that need to be sorted out first.
One of the major issues with lateral entry is whether it will be contractual or instill individuals permanently. If contractual, what are the limitations on further employment of individuals after end of contractual period? Are they allowed to be hired by private enterprises as lobbyists, or affect decision making of government (since he/she would be an insider) like that of Tony Blair hired by consulting firm and PE firm as adviser? And given India’s lack luster Judiciary, it will be very tough to enforce discipline amongst contractual entrants.
If permanent, will it not be a deterrent for already serving civil service personnel? Will it not de-motivate the serving civil servants? Also, given the varieties of post created with no distinct division of power, how effectively will be the decision being taken by inducted lateral entrants? For example, construction of road requires coordination with land department, utilities department like CPWD and other, in absence of trust how only one infrastructure department can bring change with lateral entrants?
Including this, there is also the major concern of nepotism and favoritism by political bosses. Questions are many, but solutions are also out there in form of case studies and practices in advanced nations.
Strong regulatory institutions, upright professionals into regulatory bodies, responsive judiciary are few need of the time for making this initiative successful. Together they will enforce discipline and with clear guidelines, they will enforce transparency in selection of late entrants. In the past, we have few such initiatives and it has provided us with stalwarts like Manmohan Singh, Montek Singh Ahluwalia, Viay Kelkar and others; and if continued with right intentions, it will create wonders.
**Political reforms however is the prerequisite to large scale civil services reforms