professor prahlad k. basu - united...

PROFESSOR PRAHLAD K. BASU

B.A. Economics Honours

with Mathematics. Presidency College, Calcutta, Fist Class Honours

rank

First in University; B.A. Economics, Tripos

(Cantab), M.A,.(Cantab) Awarded the prestigious

Overbrook Fellowship at Yale University,USA,. Ph.D. (Business Administration), CCMgt.l

(London); F.Inst. Pub. Administration (New York), Secretary to the Government of

India, in the

Ministries of Steel, Mines, Programme

Implementation 1982‐1990 and Director General of the

Bureau of Public Enterprises 1979‐82 Minister of State, Government of India, Chairman, The

Strategic Management Group of India (2004 till date), And concurrently Director of Cambridge

Advanced Management Programme

in U.K. from 2004 (Kings), 2005 (Clare), 2006 (Clare), 2007

(Clare), 2008 (Queens), 2009, 2010, 2011 and 2012 (St. Catharine's), UN Advisor, APDAC, Kuala

Lampur, World Bank Advisor, Kampala and UN Adhoc

advisor to Brunei, Brazil, Kenya and

Turkmenistan ; Professor of Management in various Universities in India and U.K. including

Senior Member, High‐Table Kings College, Cambridge; Fellow of Churchill College & Professor

Judge Business School as well as Chairman of the Indian Institute of Management, Calcutta and

Chairman of National Aluminum company & Managing Director of Shipping Corporation of India

besides being Director of Tata Iron & Steel, Tata Tea, Tata Chemicals, Walchand

Nagar Industries

etc. etc.

EXPERIENCES OF USA, UK, FRANCE AND JAPAN‐

SUCCESS STORY

EXPERIENCE OF INDIA‐

UNFINISHED STORY

FROM RED TAPE TO PERFORMANCE & RESULTS : SIX “R”s* Reinventing Integrity * Reintroducing Efficiency‐

From Red Tape to Performance and

Results

* Reviving Decentralisation & Empowerment* Rejuvenating & Reorganisation of the Services* Re‐Engineering the Structure* Reducing the Size

BOTTOM LINE OF ALL MODERNISATION EFFORTS SHOULD BE* Replace PRIVILEGE by PERFORMANCE* Replace HIERARCHY by PARTICIPATION* Replace PROCEDURE by ACHIEVING RESULTS * Replace REGULATION by DEVELOPMENT & E‐GOVERNANCE

EXPERIENCES OF USA, UK, FRANCE AND JAPAN‐

SUCCESS STORY

EXPERIENCE OF INDIA‐

UNFINISHED STORY

FROM RED TAPE TO PERFORMANCE & RESULTS : SIX “R”s* Reinventing Integrity * Reintroducing Efficiency‐

From Red Tape to Performance and

Results* Reviving Decentralisation & Empowerment* Rejuvenating & Reorganisation of the Services* Re‐Engineering the Structure* Reducing the Size

BOTTOM LINE OF ALL MODERNISATION EFFORTS SHOULD BE* Replace PRIVILEGE by PERFORMANCE* Replace HIERARCHY by PARTICIPATION* Replace PROCEDURE by ACHIEVING RESULTS * Replace REGULATION by DEVELOPMENT & E‐GOVERNANCE

Planning Programming Budgeting System

Function –

Activity‐

Indicator Matrix ‐1985

OMB‐

Presidential Office of Management & Budget

National Performance Review Team under Vice President AI

Gore produced “ Report on Creating a Government that Works

better and Costs Less”

1993

1993 US Senate enacts Government Performance and Results

Act. GIPRA, 1993 –To ensure efficiency of the Public Sector &

all Le vels

and Officers of US Government.

2002 US enacts SARBANNES OXLEY Act to ensure efficient

management of the Private Sector

* Hilary Clinton’s “Public Service is about helping people solve

their problems and live their own dreams”

is a wonderful target

for US Bureaucracy. (Washington Post 4/6/2008)

Planning Programming Budgeting System

Function –

Activity‐

Indicator Matrix ‐1985

OMB‐

Presidential Office of Management & Budget

National Performance Review Team under Vice President AI

Gore produced “ Report on Creating a Government that Works

better and Costs Less”

1993

1993 US Senate enacts Government Performance and Results

Act. GIPRA, 1993 –To ensure efficiency of the Public Sector &

all Le vels

and Officers of US Government.

2002 US enacts SARBANNES OXLEY Act to ensure efficient

management of the Private Sector

* Hilary Clinton’s “Public Service is about helping people solve

their problems and live their own dreams”

is a wonderful target

for US Bureaucracy. (Washington Post 4/6/2008)

Fulton Report , 1968* Devolving responsibility* To usher in accountable managementas well as efficient management

Mrs. Thatcher’s leadership from 1979‐

1987 carried out reform in UK

followed by John Major 1987‐1997

* Reign of Terror in White hall ( G.K. Fry)* Efficiency Unit in PMO set up “

Scrutinies”

1979 for inhouse

consultancies under Lord Rayner, CEO, Marks and Spencer

Sir Robbin

Ibbs, Director , ICI

Sir Angus Fraser* Financial management Initiative 1982 – Cash limit system and

Cost and Management Accounting with measurement of results.

Fulton Report , 1968* Devolving responsibility* To usher in accountable managementas well as efficient management

Mrs. Thatcher’s leadership from 1979‐

1987 carried out reform in UK

followed by John Major 1987‐1997

* Reign of Terror in White hall ( G.K. Fry)* Efficiency Unit in PMO set up “

Scrutinies”

1979 for inhouse

consultancies under Lord Rayner, CEO, Marks and Spencer

Sir Robbin

Ibbs, Director , ICISir Angus Fraser

* Financial management Initiative 1982 – Cash limit system and

Cost and Management Accounting with measurement of results.

Next Step Initiative, 1988, Breaking up Departments into smaller

departments with Executive Agencies outside departments

Two White Papers for 1991* The Citizens Charter* Competing for Quality

For improved management and measurement of performance also

improvement in quality of Civil Service‐

providing public service to

consumers and public

White Paper of 1994“The Civil Service Continuity and Change”

White Paper of 1995 “ Taking Forward Continuity and Change”

1997 Delivering unit

White Paper of 1999“ Modernising Government”

Next Step Initiative, 1988, Breaking up Departments into smaller

departments with Executive Agencies outside departments

Two White Papers for 1991* The Citizens Charter* Competing for Quality

For improved management and measurement of performance also

improvement in quality of Civil Service‐

providing public service to

consumers and public

White Paper of 1994“The Civil Service Continuity and Change”

White Paper of 1995 “ Taking Forward Continuity and Change”

1997 Delivering unit

White Paper of 1999“ Modernising Government”

UK Cabinet Secretary Sir Gus O’

Donnell’s Message at the Public

Service Reforms Conference, London

OnCreating A CULTURE OF EXCELLENCE

6th

June 2006

To ensure the Civil Service is admired worldwide for the quality of

its POLICY ADVICE

To Deliver world Class Customer’s Focused services

By using Information Technology better‐

example of DIRECT‐

GOV

Open Cadre‐

WE need twin track approach in developing our own

staff and bringing in from outside those with talents we lack and

with greater diversity of background

We must ensure Departments and their Leaders focus on delivering

OUTCOMES. We should specify OUTCOMES and deliver THEM

Trust and ACCOUNTABILITY are linked

INTERGRITY, OBJECTIVITY, IMPARTIALITY AND HONESTY are

our bedrock

UK Cabinet Secretary Sir Gus O’

Donnell’s Message at the Public

Service Reforms Conference, LondonOn

Creating A CULTURE OF EXCELLENCE6th

June 2006

To ensure the Civil Service is admired worldwide for the quality of

its POLICY ADVICE

To Deliver world Class Customer’s Focused services

By using Information Technology better‐

example of DIRECT‐

GOV

Open Cadre‐

WE need twin track approach in developing our own

staff and bringing in from outside those with talents we lack and

with greater diversity of background

We must ensure Departments and their Leaders focus on delivering

OUTCOMES. We should specify OUTCOMES and deliver THEM

Trust and ACCOUNTABILITY are linked

INTERGRITY, OBJECTIVITY, IMPARTIALITY AND HONESTY are

our bedrock

We need PRIDE, PASSION, PACE and PROFESSIONALISMProud of what we do

Passionate about providing high quality public service

We need to act with pace to achieve rapid response and right

solutions

We need professionalism in the way we formulate policy and

deliver services DESPITE THESE CLAIMS –

SIR CHRISTOPHER FOSTER AND HIS

GROUP ASK “WHY ARE WE SO BADLY GOVERNED ?”

AND THEY ASK

“DEVOLVE, DECENTRALIZE AND DECONCENTRATE”. IN 2012 THE NEW CABINET SECRETARTY SIR JEREMY

HEYWOOD’S TWO INITIATIVES (1) SET UP CABINET OFFICE BOARD WITH NON‐EXECUTIVES LIKE LORD BROWNE AND IAN DAVIS AND (2) SEPARATING OVERSEEING HOME CIVIL SERVICE ARE KEY POINTERS TO MODERNIZATION.

We need PRIDE, PASSION, PACE and PROFESSIONALISMProud of what we do

Passionate about providing high quality public service

We need to act with pace to achieve rapid response and right

solutions

We need professionalism in the way we formulate policy and

deliver servicesDESPITE THESE CLAIMS –

SIR CHRISTOPHER FOSTER AND HIS

GROUP ASK “WHY ARE WE SO BADLY GOVERNED ?”

AND THEY ASK

“DEVOLVE, DECENTRALIZE AND DECONCENTRATE”. IN 2012 THE NEW CABINET SECRETARTY SIR JEREMY

HEYWOOD’S TWO INITIATIVES (1) SET UP CABINET OFFICE BOARD WITH NON‐EXECUTIVES LIKE LORD BROWNE AND IAN DAVIS AND (2) SEPARATING OVERSEEING HOME CIVIL SERVICE ARE KEY POINTERS TO MODERNIZATION.

Ecole

National d’

Administration( ENA)

set up ‐1946

(Open competition to Men and Women between the

age of 24 and 45 )

100 recruitment per year through Competitive

Examination. Thus, there are about 6000 Enarquis

in France including several Presidents like DeGaul,

POMPIDOU, MITTERAND, BALLADOUR, CHIRAC, JOSPIN, ATTALIE AND NOW HOLLANDE.

Three entry points to ENA

* Civil Service* Private Sector* University

Ecole

National d’

Administration( ENA)

set up ‐1946

(Open competition to Men and Women between the

age of 24 and 45 )

100 recruitment per year through Competitive

Examination. Thus, there are about 6000 Enarquis

in France including several Presidents like DeGaul,

POMPIDOU, MITTERAND, BALLADOUR, CHIRAC, JOSPIN, ATTALIE AND NOW HOLLANDE.

Three entry points to ENA

* Civil Service* Private Sector* University

Streams in Open/Unified structure of * Grand Corps* Conseil

d’

Etat

* Cours

de Comptes* Inspection de Finance * Corps Diplomatique* Interior Ministry * Ministries of Education, Agriculture, Health etc.

New Socialist President Hollande

elected in May, 2012 is an

Alumni of ENA, which shows France’s Continuity with Change and the State’s undiminished responsibility

Streams in Open/Unified structure of * Grand Corps* Conseil

d’

Etat

* Cours

de Comptes* Inspection de Finance * Corps Diplomatique* Interior Ministry * Ministries of Education, Agriculture, Health etc.

New Socialist President Hollande

elected in May, 2012 is an

Alumni of ENA, which shows France’s Continuity with Change and the State’s undiminished responsibility

The success of Competitive Communism in Japan‐

author Doug las

Kenrick

Moore ‘s book published by Charles Tuttle ISBN 0‐8048‐1671‐9 with the

heading “WHERE COMMUNISM WORKS”

published 2002

While pursuit of profit is clearly evident competition in JAPAN is mitigated by

powerful communalistic forces –

including State planning to achieve national

goals, the fundamental controlling mechanism of Socialism

Economic Planning Agency of Japan (EPA) is integrated in the Prime Minister

Noshihiko

Noda’s office along with Management Coordination Agency (MCA)

Pre‐Second World War period saw the growth of Public Enterprises in the

Meiji and Post‐

Meiji era when Japanese Civil Service included all managerial

posts in all the national enterprises covering the public sector

One of the largest civil services in the world employing over 5 million persons

with unique features of (i) remarkably unified structure, (ii) Salary by and

large equated with private sector, (iii) where many Civil Servants opt for

permanent service in the public enterprises on early retirement under the

system of AMAKADURAI‐

which ensures “PARTNERSHIP”

relation between

Government and Public Sector.

National Personnel Authority ensures closed carrier system with life time

tenures

The success of Competitive Communism in Japan‐

author Doug las

Kenrick

Moore ‘s book published by Charles Tuttle ISBN 0‐8048‐1671‐9 with the

heading “WHERE COMMUNISM WORKS”

published 2002

While pursuit of profit is clearly evident competition in JAPAN is mitigated by

powerful communalistic forces –

including State planning to achieve national

goals, the fundamental controlling mechanism of Socialism

Economic Planning Agency of Japan (EPA) is integrated in the Prime Minister

Noshihiko

Noda’s office along with Management Coordination Agency (MCA)

Pre‐Second World War period saw the growth of Public Enterprises in the

Meiji and Post‐

Meiji era when Japanese Civil Service included all managerial

posts in all the national enterprises covering the public sector

One of the largest civil services in the world employing over 5 million persons

with unique features of (i) remarkably unified structure, (ii) Salary by and

large equated with private sector, (iii) where many Civil Servants opt for

permanent service in the public enterprises on early retirement under the

system of AMAKADURAI‐

which ensures “PARTNERSHIP”

relation between

Government and Public Sector.

National Personnel Authority ensures closed carrier system with life time

tenures

A remarkably early start of 1853, long before competitive examination was introduced

in UK 1870

Today with 9 million permanent civil servants and 20 million public sector workers in

public enterprises and State Governments, India has the largest bureaucracy spread

over federal government at New Delhi and 28 state Capitals of 28

States.

How to modernise this bureaucracy so that it could emerge as * Clean * Efficient and * Responsive

is an extremely urgent issue.

Urgent reforms are needed on the following 1. Permanency must go in stages 2. creation of Executive Agencies for DGTD, CBDT and CBEC and

several other parts of the Government

3. with substitution of Permanency by 4/5 years renewable contract, the

rule that an ass must become a horse by sheer efflux of time will go away.

4. What has been done is RTI‐

an excellent first step in 2009

A remarkably early start of 1853, long before competitive examination was introduced

in UK 1870

Today with 9 million permanent civil servants and 20 million public sector workers in

public enterprises and State Governments, India has the largest bureaucracy spread

over federal government at New Delhi and 28 state Capitals of 28

States.

How to modernise this bureaucracy so that it could emerge as * Clean * Efficient and * Responsive

is an extremely urgent issue.

Urgent reforms are needed on the following 1. Permanency must go in stages 2. creation of Executive Agencies for DGTD, CBDT and CBEC and

several other parts of the Government3. with substitution of Permanency by 4/5 years renewable contract, the

rule that an ass must become a horse by sheer efflux of time will go away.

4. What has been done is RTI‐

an excellent first step in 2009

Agenda for reform In INDIA should consist of

Reinventing integrity Battle against Corruption

Reintroducing Efficiency

Reviving Decentralisaion

Re‐engineering the structure

Re‐

Organisation of the Civil Service & E‐

Governance

Reducing the Size of Bureaucracy

Agenda for reform In INDIA should consist of

Reinventing integrity Battle against Corruption


Reviving Decentralisaion

Re‐engineering the structure

Re‐

Organisation of the Civil Service & E‐

Governance

Reducing the Size of Bureaucracy

Re‐inventing INTEGRITY

1988 Prevention of Corruption Act

2003 Central Vigilance Commission ActHas this made any difference??

Permanency of the Civil Service is ensured throughArticle 311 of the Constitution

& Article 226 protects against gross abuse of fundamental

right.

Re‐inventing INTEGRITY

1988 Prevention of Corruption Act

2003 Central Vigilance Commission ActHas this made any difference??

Permanency of the Civil Service is ensured throughArticle 311 of the Constitution

& Article 226 protects against gross abuse of fundamental

right.

Causes of Corruption(i) Low Emoluments (ii) Licence – permit raj

Both reversed after 1985 Fourth Pay Commission and after 1991 Liberalisation brought about by IMF

Causes of Corruption(i) Low Emoluments (ii) Licence – permit raj

Both reversed after 1985 Fourth Pay Commission and after 1991 Liberalisation brought about by IMF

Recommendation:

1. Permanency of Civil service must be replaced by renewable contract for 4‐5 years.

2.

Appointments to sensitive posts must be brought

within special selection procedure 3.

Lateral talent should be inducted and institutionalized –

example Prime Minister Manmohan

Singh, who joined as lateral entrant Civil Servant.

Recommendation:

1. Permanency of Civil service must be replaced by renewable contract for 4‐5 years.

2.

Appointments to sensitive posts must be brought within special selection procedure

3.

Lateral talent should be inducted and institutionalized – example Prime Minister Manmohan

Singh, who joined as

lateral entrant Civil Servant.


Management Paradigm of Performance, Output and Results must replace the administrative paradigm of Promises, Policy

Making and Non‐accountability. AAP‐

Annual Action Plan system introduced in 1985 by Professor

Basu

as Permanent Secretary, Ministry of Programme Implementation – must be revived with vengeance.

MBO‐

Management By ObjectivePRP‐

Performance Related Pay

Renewable Contracts to replace long time scaleOpening up of the Civil Service to Industry and Academia


Management Paradigm of Performance, Output and Results must replace the administrative paradigm of Promises, Policy

Making and Non‐accountability.AAP‐

Annual Action Plan system introduced in 1985 by Professor

Basu

as Permanent Secretary, Ministry of Programme Implementation – must be revived with vengeance.

MBO‐

Management By ObjectivePRP‐

Performance Related Pay

Renewable Contracts to replace long time scaleOpening up of the Civil Service to Industry and Academia

Reorganizing DecentralisationReducing Vertical Structure – to make it Effective

1992‐73rd

Amendment to the ConstitutionStrengthening of the Panchayati

Raj

Centre

State

Division

District

Sub‐Division

Block

Panchayat

(Village)

Reorganizing DecentralisationReducing Vertical Structure – to make it Effective

1992‐73rd

Amendment to the ConstitutionStrengthening of the Panchayati

Raj

Centre

State

Division

District

Sub‐Division

Block

Panchayat

(Village)

Re‐

organising the Structure

Horizontal Structure

Vertical Structure

Clear demarcation of Accountability for Results

Re‐

organising the Structure

Horizontal Structure

Vertical Structure

Clear demarcation of Accountability for Results

Reorganising of the Civil Services

Unification

Opening up

Competition

Senior Management Pool for the top posts in Central

and State Government – like Commerce Finance Pool of the ICS and later Nehruvian

Industrial

Management Pool should be revived.

Reorganising of the Civil Services

Unification

Opening up

Competition

Senior Management Pool for the top posts in Central

and State Government – like Commerce Finance Pool of the ICS and later Nehruvian

Industrial

Management Pool should be revived.

Reducing the Size

Result of all these initiatives

Reducing the Size

Result of all these initiatives

professor prahlad k. basu - united...

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