The Hindu Business Line : Roadmap for efficient service delivery

The World Bank's Development Policy Report, titled "Inclusive Growth and Service Delivery: Building on India's success" highlights the weaknesses in the country's system of service delivery in areas vital to human development, such as health, water supply and education. It also points to the possible directions of reform in such services. There is need to make a conscious effort to improve the administrative system of the country as a whole.

The World Bank's Development Policy Report, titled "Inclusive Growth and Service Delivery: Building on India's success" and released in May, has been the subject of much public attention. It has highlighted the problems of service delivery in the country, pointing out how, in spite of its vaunted successes, India is still to achieve the goal of delivering quality education, good health services, reliable water supply, and so on, to the people, especially to those below the poverty line.

The Report cites certain inter-country surveys to show that the quality of clinical attention in India's Primary Health Centres is even below that offered in Tanzania and Indonesia. It is true that there is a considerable sense of dissatisfaction, even in the country, at thelevel and quality of services in the social sectors.

The World Bank has done a signal service by highlighting the weaknesses in our system of service delivery in areas vital to human development, such as health, water supply and education.

Meriting special attention are the Bank's reflections on the role of Panchayati Raj Institutions in the delivery of services.

It is singularly appropriate to consider the issue at this time, which coincides with Rajiv Gandhi's birth anniversary. He did more than anybody else in India's history to bring about a change of mindset amongst India's ruling elite on the need to bring about democratic decentralisation.

Aided by dedicated associates such as Mr Mani Shankar Aiyar, he led the country through a series of active interactions with concerned politicos, bureaucrats and technologists in emphasising the need for political change in this direction.

This has culminated in Constitutional amendments, passed much after his demise. Suffice it to say that the reflections of the World Bank on the role of Panchayati Raj Institutions (PRIs) in India's service delivery system are timely and apposite and need to be considered seriously by the present State and Central leaderships.

The World Bank Report says there is an obvious disconnect between availability of funds and the functions delegated to the PRIs. It also points out, appropriately, that much of the funding is in the nature of "tied" grants, which are decided at the top and leave little scope for local innovation and decision.

Centrally-sponsored schemes of different kinds dominate the social service sector. The Bank report emphasises that the success of the Panchayati Raj Institutions depends on the adequacy of funds, functions and functionaries.

Empowering PRIs

The report points out that even though the Finance Commissions have recommended substantial devolutions to PRIs, they still fall short of what is needed.

There is a problem in that PRIs get grants, which add to the States' revenue deficit. This militates against the provisions of the FRBM Act. Further, PRIs critically lack the revenue-raising powers that they need to be able discharge their functions. Even if they have such powers, it is not clear whether they are politically capable of raising adequate resources.

So far as the "functions" are concerned, the report observes that mere devolution of responsibility to PRIs for managing education and health centres will not help improve the quality of service delivery. It must be ensured that the PRIs have the capability and the administrative support needed to frame budgets and manage administrative requirements.

A substantial training effort is called for to involve local Panchayati Raj functionaries in the details of budget-making and financial management. Whether or not politically elected, Panchayati Raj executives can be expected to acquire these skills, and they should at least be given adequate support — clerical and executive — to handle these responsibilities. This is not being taken care of adequately at present. As constituted, Panchayati Raj Institutions are in danger of being "captured" by the local political `elite', who may belong to the dominant castes or richer sections. It is clearly part of the current political discourse about PRIs that as they are at present set up, they tend to make biased allocations of service to favoured castes and communities. This has to be prevented only by an appropriate and active civil society, which again requires adequate information to be shared with the general public regarding the quality and distribution of services provided.

Better administration

There is need to make a conscious effort to improve the administrative system of the country as a whole — not only of PRIs — to equip it to discharge the responsibilities cast on it by the people's increasing expectations. While Dr Manmohan Singh has repeatedly emphasised the need for such administrative reforms, in actual practice, not much progress has been made.

While the report does not make too many specific suggestions on how the administrative system can be improved, it refers to the need for better training and continuity of tenure of those in service who are successful managers.

The challenge of administrative reform is immense and the success of the reform process may well lie in successfully adapting the administrative system to the needs of the changing society.

One of the important observations in the report is that although India is ideologically oriented towards dominance of the public sector, social service delivery has seen the increasing domination of the private sector, largely because of the perceived and relative failure of the public sector. People, in general, seem to be voting with their feet, moving to private providers of education, although they pay more.

Similarly, there is increasing resort by the public to private sector medical facilities because of the failure of public sector institutions to provide adequate health care.

The World Bank Report does not hold out much of a prospect for improvement in these areas. But it says that there is scope for replicating certain successful experiments in some of the States, that have led to a better quality of service delivery. The suggestions in the report, which incorporate the results of these successful initiatives, deserve to be considered by the Central and State Governments.

The World Bank Report has done a workmanlike job in assembling various experiences inside the country and abroad pointing to the possible directions of such reform in regard to the delivery of services. It would be wise not to dismiss the report as yet another prejudiced critique but to view it as a constructive attempt at helping India fulfil its promises in the 21st century.

Especially given that Dr Manmohan Singh, in his address to the nation in 2004 emphasised the importance of not making fresh promises, but trying to keep the promises made.

There is a great deal that India has to learn from a careful study of the document, which can help it achieve the goals of a more equal and inclusive society and a better quality of life for all.