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| Jaimini Bhagwati: Getting the right people | | With reforms hard to come by, having competent people man discrete projects may be the best option |
| Jaimini Bhagwati / New Delhi Jun 19, 2009, 00:20 IST |
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With reforms hard to come by, having competent people man discrete projects may be the best option, says Jaimini Bhagwati
The recent general election results have provided the continuity and stability needed for India to pursue its development goals. However, niggling doubts have been expressed about our collective will to pursue wide-ranging reforms. Our long agenda for reforms includes improvements in internal security, primary education, infrastructure, public health and real estate, labour, oil & gas plus fertiliser markets. Although Indian decision-makers are probably well aware of the many prescriptive recommendations and the political economy factors which impede development, it is still tempting to make suggestions for improvements. And, often in the public discussion in India the theoretical best becomes the enemy of the feasible good.
Clearly, systemic improvements are needed for far-reaching and sustainable change. However, even as we wait for the difficult-to-achieve labour, judicial reforms and rationalisation of subsidies, we can move forward around existing hurdles. Appointing able technocrats and managers can make a tangible difference provided they are given adequate elbow room. For instance, E Sreedharan had a lot to do with the successful completion of the Delhi Metro project. One of the principal bottlenecks for infrastructure projects is land acquisition. This must have been equally true for the Delhi Metro but it got done reasonably quickly and the Metro is now expanding towards Gurgaon and Noida. In the debate on appropriate solutions for mass urban transport some specialists maintain that Metros are expensive compared to bus rapid transit (BRT) systems. It has to be conceded that even in major cities Metros usually need to be subsidised. However, given the positive externalities associated with Metros, eg less environmental and sound pollution, we should not waste too much time on this debate.
More generally in the infrastructure sector, we have endless discussions about how to get public-private partnership going. Even as we sort out legal and funding constraints, we could appoint technocrat managers to implement specific projects on a build-operate-turnover (BOT) basis. Many would view such a project-specific approach as naïve or surrendering to status-quo forces, and suggest that gains from the occasionally successful projects would not be replicable or sustainable. On the contrary, biographies of decision-makers and historical studies are replete with examples of how many important achievements were based on the efforts of individuals or small groups. Further, the current bout of deep financial sector difficulties and economic slowdown in OECD countries has amply demonstrated that special interests which distort entire economies persist in developed democracies. It follows that while we make every effort towards systemic reforms, it is important that we select the right project managers and empower them.
On a separate note, the other day I was saddened to hear an Australia-based Indian student mention on television that his father had withdrawn all his GPF savings to give him about $30,000 to pursue a "diploma" course in Australia. It is to be expected that some of our brightest students will continue to go abroad for studies and many of them will settle down in developed countries. It is also evident that additional avenues for well-paid employment would open up over time as the economy grows. In the interim, we should be able to provide adequate seats for technical and management studies on a cost-plus basis.
Unfortunately, however, India has been chronically short of quality educational institutions. One way to reduce delays in the delivery of large projects designed to increase capacity in higher education could be to appoint composite project management teams of educationists and specialists. We should be able to find the required land, teachers and administrators if the cause is suitably publicised. A number of non-resident Indians (NRIs) provide policy advice voluntarily and, given the opportunity, they may opt to help get projects off the ground.
In the decades immediately after independence India chalked up several achievements in building infrastructure, steel plants and setting up institutions of higher learning and technical excellence. Some prominent examples are the Damodar Valley Corporation (multi-purpose project which includes irrigation and power generation), Bhakra Nangal and Nagarjuna Sagar dams, Bhabha Atomic Research Centre (BARC), Indian Space Research Organisation (ISRO), Tata Institute of Fundamental Research (TIFR), All India Institute of Medical Sciences (AIIMS) and the IITs. Of course, public opinion is divided about the cost at which these dams and institutions were set up and the continued need to retain them in the public sector. More recently, power projects such as Dabhol and long-established research institutions have been criticised respectively for cost overruns, delays in completion and descent into mediocrity. On balance, my sense is that we are better off for having these dams and institutions of higher learning although their functional and cost efficiency need to be improved. The average Indian should not question the costs involved in setting up future projects, including nuclear power plants, as long as there is sincerity of purpose and transparency. To build a culture of honest implementation as distinct from seeking perfection in policymaking we need to publicly fete and lionise those who implement major projects and not just those who lay the foundation stones. Everyone remembers Homi Bhabha since BARC is named after him but there is much less name recognition of those who implemented major infrastructure or educational projects in India.
To summarise, since it is difficult to get the ideal reform packages through, getting the right people to execute discrete projects may be the next best alternative. The right people could be selected by multi-disciplinary teams including government and private sector representatives. Thereafter, it is crucial to hold the same team or a sub-group accountable for implementation. Obviously, this would not solve our widespread public health or primary education problems. However, any additional infrastructure or capacity in the health/education sectors which does not place a burden on government finances should be welcome. This would be more helpful than yet another set of recommendations on macro-economic reforms or faster liberalisation of the financial sector. For instance, proposals have been made about education and food vouchers for the socially and economically disadvantaged. The next step could be to put projects together in these two areas.
The author is the Ambassador of India to the European Union, Belgium and Luxembourg. Views expressed are personal
j.bhagwati@gmail.com
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