THE laudable objective of inclusive growth set for the Eleventh Five Year Plan being currently implemented can be possibly achieved if the major obstacle in the distributive process is well identified and eradicated. It is a well recognised fact that the GDP growth rate in the post-globalised era has significantly enhanced due to the market transformation in terms of size and structure. But the growth dividends are concentrating in fewer hands and are not trickling down to the masses whose acute pains in terms of hunger and starvation can be better felt than quantified.
According to the recent observations of the UN, over 40 per cent Indians live on less than $1.25 (around Rs 60) per day and India now stands third in terms of proportions of extremely poor people in South Asia. The existence of one-third of the world’s hungry population in the second fastest growing nation seems to be highly paradoxical and makes our economic attainments suspect.
Evidently, growth in real terms is confined to a small proportion of the population and instead of flowing down, it is moving to foreign banks, where trillions of dollars are stacked with almost no hope of being brought back. It is a pointer to a poor and weak governing mechanism expressible in terms of inefficiency and ethical failures.
In 2005 former Chief Vigilance Commissioner N. Vittal pointed out that the root cause of poor governance lies in corruption. In fact, there is a reciprocal relationship between the two. In 2009 R. H. Tahilani, Chairman of Transparency International India, rightly observed that tremendous economic growth being witnessed in the country was not reaching the poor due to the single big reason of corruption. These views have been corroborated by Prime Minister Manmohan Singh on different occasions while expressing his concern at corruption in government machinery being the main deterrent in transferring benefits of growth to the masses.
Corruption not only dilutes administrative efficiency but also results in the depletion of scarce national resources. The total loss to the public exchequer due to unethical practices in the form of corruption, scams and fraudulent allotments in 2010 was estimated to be Rs 4 lakh crore. Moreover, corruption in governance with its vertical and horizontal flows is multiplying and vitiating the total atmosphere within the country and destroying its external image. Transparency International’s 2010 survey ranked India at 87 among 178 nations and its Corruption Perception Index score has come down to 3.3 from 3.4 in 2009 and 3.5 in 2007.
Until and unless governance mechanism is freed from this malaise, the realisation of inclusive growth or poverty eradication would not seem to be feasible. UN General Secretary Kofi Annan observed in 2002 that good governance was the single most important factor in eradicating poverty and promoting development. Good policy has a meaning if it is effectively administered. With a weak administration the gains of even excellent policy are lost.
Good governance has two essential ingredients: efficiency and ethics. Efficiency without ethics may yield higher but exclusive growth. For making it participative governance needs to be fair and free from corruption. Unfortunately, a steep decline in our ethical standards with their origin in our governing mechanism is perceptible.
We have forgotten our rich heritage, which is certainly a source of honour and pride. In 1835 Lord Macaulay, while addressing the British Parliament, said: “I have travelled across the length and breadth of India and have not seen one person who is a beggar, who is a thief. Such wealth I have seen in this country, such high moral values, people of such calibre that I do not think we would ever conquer this country, unless we break the very backbone of this nation, which is her spiritual and cultural heritage”.
The downfall of our value system started during the British regime itself. This fact is evident from Winston Churchill’s statement that he made on the eve of Independence, “power will go in to the hands of … freebooters. All Indian leaders will be of low calibre and men of straw who will fight among themselves for power and will be lost in political squabbles”.
In 1947 after the attainment of Independence, the Prevention of Corruption Act was passed with a view to smoothening the task of rehabilitation and economic reconstruction. But despite powerful influence of the philosophical ideas of our great leaders like Mahatma Gandhi, Jawaharlal Nehru and Vallabh Bhai Patel in the minds of the people, the country started coming speedily into the fold of corruption. According to the report of the Santham Committee submitted in 1964, the failure of integrity was not uncommon among the ministers and some of them had enriched themselves illegally. The country is viciously entrapped in the incessant ethical degradation and unfortunately is being considered one of the most corrupt countries of the world.
It is rightly observed by Vice President Hamid Ansari that the general thinking environment has become much polluted and honesty is considered incompatible with survival. In the Approach Paper of the Eleventh Five Year Plan (2007-12) it is clearly mentioned that “corruption is seen to be endemic in all spheres and this problem needs to be addressed immediately”.
There is no denying the fact that ethics in governance is an index of general ethical standards and practices prevailing in the country. There is a common saying that subjects follow the king (government) and if the king is sinful, then subjects will have no hesitation in committing sins. Here unethical practices in the private and public sectors as well as our daily dealings have become a routine. Everyday new scams and scandals, siphoning of funds from sanctioned projects and fictitious billing are destabilizing the economic system of the country. These do not allow growth benefits to be shared by the poor and marginalised sections of society whose status is no better than perishable goods purchased by the crafty leaders through their political managers at the time of elections.
The ambitious targets of high growth in quantitative terms are much needed and appreciable. But if the process of growth continues to be directed only towards top 300 millions and the others have to be simply consoled with catchy and innovative slogans that they have been listening since Independence, then the fault certainly lies with the mechanism of development.
It is abundantly clear that growth cannot be shared by all unless our top leadership sincerely and strictly observes certain ethical codes. High standards of honesty and service to the nation are to be set, followed and exhibited and not only to be vociferously pronounced with a view to misleading the hapless masses of the country who probably seem to have reconciled to the state of perpetual sufferings. In order to liberate our leaders from personal greed and long-term interest of their progeny towards whom they are solely committed, there is need for soul searching. This feeling must be rooted in the mind that others too have their share in the national wealth and they do have the right to live with grace and honour.
An autonomous body such as a Central Ethics Commission assisted by committees at the state level needs to be established to deal with the issue of unethical practices in governance so that the loss to the nation in terms of waste of resources and social discontent emerging from economic exclusion may be reduced as far as possible. It should be constantly involved in the ethical scrutiny of the policies at the stage of formulation and implementation. Simultaneously Institutes of Ethics at the central and state levels should be set up to impart training to those joining politics and administration. Central Ethics Commission, Institutes of Ethics and government organisations concerned must work in coordination.
If we genuinely want to lift those who are at the bottom of the pyramid then merely enhanced allocations of funds and motivated publicity are not enough. There is need to ensure that funds are not taken away by unscrupulous policy executors working at different levels. Towards this end, the setting up of a task force under the chairmanship of Nandan Nilkani of Unique Identification Authority of India for evaluating a method for direct transfer of subsidies to the targeted beneficiaries is highly commendable. It will certainly reduce the transaction cost in the distributive system. Bihar is committed to issuing UID numbers to the beneficiaries of various welfare schemes within three years. This is an appreciable step and must be followed by other states. The scale of corruption in governance can be significantly brought down if the product and service delivery mechanism is subjected to decentralisation.
During the execution of various development schemes and construction of infrastructure, potential beneficiaries should be involved for the sake of transparency and excellence. Even fund allocations among different regions in the Union Budget should be based on their respective integrity indices. There is need for a judicious review of the performance not only in terms of productivity but also ethical standards maintained in the utilisation of the funds sanctioned earlier. Some extra grant incentives can be linked with the time-bound and fair delivery of services to the public. For the realisation of the objective of sustainable inclusive growth, the sustainability of ethical values in governance is must
According to the recent observations of the UN, over 40 per cent Indians live on less than $1.25 (around Rs 60) per day and India now stands third in terms of proportions of extremely poor people in South Asia. The existence of one-third of the world’s hungry population in the second fastest growing nation seems to be highly paradoxical and makes our economic attainments suspect.
Evidently, growth in real terms is confined to a small proportion of the population and instead of flowing down, it is moving to foreign banks, where trillions of dollars are stacked with almost no hope of being brought back. It is a pointer to a poor and weak governing mechanism expressible in terms of inefficiency and ethical failures.
In 2005 former Chief Vigilance Commissioner N. Vittal pointed out that the root cause of poor governance lies in corruption. In fact, there is a reciprocal relationship between the two. In 2009 R. H. Tahilani, Chairman of Transparency International India, rightly observed that tremendous economic growth being witnessed in the country was not reaching the poor due to the single big reason of corruption. These views have been corroborated by Prime Minister Manmohan Singh on different occasions while expressing his concern at corruption in government machinery being the main deterrent in transferring benefits of growth to the masses.
Corruption not only dilutes administrative efficiency but also results in the depletion of scarce national resources. The total loss to the public exchequer due to unethical practices in the form of corruption, scams and fraudulent allotments in 2010 was estimated to be Rs 4 lakh crore. Moreover, corruption in governance with its vertical and horizontal flows is multiplying and vitiating the total atmosphere within the country and destroying its external image. Transparency International’s 2010 survey ranked India at 87 among 178 nations and its Corruption Perception Index score has come down to 3.3 from 3.4 in 2009 and 3.5 in 2007.
Until and unless governance mechanism is freed from this malaise, the realisation of inclusive growth or poverty eradication would not seem to be feasible. UN General Secretary Kofi Annan observed in 2002 that good governance was the single most important factor in eradicating poverty and promoting development. Good policy has a meaning if it is effectively administered. With a weak administration the gains of even excellent policy are lost.
Good governance has two essential ingredients: efficiency and ethics. Efficiency without ethics may yield higher but exclusive growth. For making it participative governance needs to be fair and free from corruption. Unfortunately, a steep decline in our ethical standards with their origin in our governing mechanism is perceptible.
We have forgotten our rich heritage, which is certainly a source of honour and pride. In 1835 Lord Macaulay, while addressing the British Parliament, said: “I have travelled across the length and breadth of India and have not seen one person who is a beggar, who is a thief. Such wealth I have seen in this country, such high moral values, people of such calibre that I do not think we would ever conquer this country, unless we break the very backbone of this nation, which is her spiritual and cultural heritage”.
The downfall of our value system started during the British regime itself. This fact is evident from Winston Churchill’s statement that he made on the eve of Independence, “power will go in to the hands of … freebooters. All Indian leaders will be of low calibre and men of straw who will fight among themselves for power and will be lost in political squabbles”.
In 1947 after the attainment of Independence, the Prevention of Corruption Act was passed with a view to smoothening the task of rehabilitation and economic reconstruction. But despite powerful influence of the philosophical ideas of our great leaders like Mahatma Gandhi, Jawaharlal Nehru and Vallabh Bhai Patel in the minds of the people, the country started coming speedily into the fold of corruption. According to the report of the Santham Committee submitted in 1964, the failure of integrity was not uncommon among the ministers and some of them had enriched themselves illegally. The country is viciously entrapped in the incessant ethical degradation and unfortunately is being considered one of the most corrupt countries of the world.
It is rightly observed by Vice President Hamid Ansari that the general thinking environment has become much polluted and honesty is considered incompatible with survival. In the Approach Paper of the Eleventh Five Year Plan (2007-12) it is clearly mentioned that “corruption is seen to be endemic in all spheres and this problem needs to be addressed immediately”.
There is no denying the fact that ethics in governance is an index of general ethical standards and practices prevailing in the country. There is a common saying that subjects follow the king (government) and if the king is sinful, then subjects will have no hesitation in committing sins. Here unethical practices in the private and public sectors as well as our daily dealings have become a routine. Everyday new scams and scandals, siphoning of funds from sanctioned projects and fictitious billing are destabilizing the economic system of the country. These do not allow growth benefits to be shared by the poor and marginalised sections of society whose status is no better than perishable goods purchased by the crafty leaders through their political managers at the time of elections.
The ambitious targets of high growth in quantitative terms are much needed and appreciable. But if the process of growth continues to be directed only towards top 300 millions and the others have to be simply consoled with catchy and innovative slogans that they have been listening since Independence, then the fault certainly lies with the mechanism of development.
Perpetual poverty in India despite an appreciable growth rate is due to a weak governing mechanism suffering from ethical failures India’s score on Transparency International’s corruption perception index, which was 3.5 in 2007, came down to3.3 in 2010. The total loss to the country’s public exchequer due to unethical practices in 2010 has been estimated to be Rs 4 lakh crore Scams, scandals, siphoning of public funds and fictitious billing have become routine affairs that hamper the trickle down of growth benefits to the poor. Need to set up Central Ethics Commission assisted by ethics committees in states and an Institute of Ethics to impart ethical training to those joining politics and administration. Fund allocations in Central and state budgets should be based on economic performance as well as the practice of ethical standards in the use of previous funds |
An autonomous body such as a Central Ethics Commission assisted by committees at the state level needs to be established to deal with the issue of unethical practices in governance so that the loss to the nation in terms of waste of resources and social discontent emerging from economic exclusion may be reduced as far as possible. It should be constantly involved in the ethical scrutiny of the policies at the stage of formulation and implementation. Simultaneously Institutes of Ethics at the central and state levels should be set up to impart training to those joining politics and administration. Central Ethics Commission, Institutes of Ethics and government organisations concerned must work in coordination.
If we genuinely want to lift those who are at the bottom of the pyramid then merely enhanced allocations of funds and motivated publicity are not enough. There is need to ensure that funds are not taken away by unscrupulous policy executors working at different levels. Towards this end, the setting up of a task force under the chairmanship of Nandan Nilkani of Unique Identification Authority of India for evaluating a method for direct transfer of subsidies to the targeted beneficiaries is highly commendable. It will certainly reduce the transaction cost in the distributive system. Bihar is committed to issuing UID numbers to the beneficiaries of various welfare schemes within three years. This is an appreciable step and must be followed by other states. The scale of corruption in governance can be significantly brought down if the product and service delivery mechanism is subjected to decentralisation.
During the execution of various development schemes and construction of infrastructure, potential beneficiaries should be involved for the sake of transparency and excellence. Even fund allocations among different regions in the Union Budget should be based on their respective integrity indices. There is need for a judicious review of the performance not only in terms of productivity but also ethical standards maintained in the utilisation of the funds sanctioned earlier. Some extra grant incentives can be linked with the time-bound and fair delivery of services to the public. For the realisation of the objective of sustainable inclusive growth, the sustainability of ethical values in governance is must