Annexure – I Revamping Delivery Systems & E-Governance

1. Committees and Commissions on Administrative Reforms

Report on Reorganisation of the Machinery of Government (1949) by Shri Gopalaswami Ayyangar recommended that the Central Ministries be bunched into Bureaus. A Committee headed by A.D.Gorawala gave a general report in 1951, on Public Administration. Mr. Paul H. Appleby reports (1953 & 1956) on Indian Administration resulted in the setting up of an Organisation and Methods Division in the Cabinet Secretariat and Indian Institute of Public Administration in 1954 with the aim of initiating and sustaining a concerted effort to improve administrative efficiency in all branches of administration.

1.1 In 1966, the First Administrative Reforms Commission under the chairmanship of Shri Morarji Desai (later Shri K. Hanumanthaiya) undertook a comprehensive task of examining the machinery of Government of India and its procedures. It made 581 recommendations in its 20 reports.

1.2 A Committee on Recruitment Policy and Selection Methods was set up under Dr. D.S.Kothari in1976. The Economic Administration Reforms Commission, set up in 1983 under the chairmanship Shri L.K. Jha, recommended the change in emphasis from regulation to development, thus consciously moving from direct physical controls. It recommended changes in governmental activities and the style of government functioning, the objective being to reduce the load on public administration, minimize harassment to citizens and reduce delays to business and industry. A Committee to review the Scheme of the Civil Services Examination was set up under Shri Satish Chandra in 1989.

1.3 In 1997, the Fifth Pay Commission recommended the abolition of thousands of unfilled posts and significant reduction in the size of bureaucracy. It also advocated the constitution of high-powered Civil Services Boards, both at the centre and in the states. The Expenditure Reforms Commission set up in 2000 under Shri Geethakrishnan examined the continuing relevance of the various Ministries/Departments and the schemes run by them and made some very relevant recommendations. Surendra Nath’s Committee (2003) and Hota Committee (2004) on Civil Services Reforms also made their recommendations.

2. NCRWC Recommendations on Decentralisation & Devolution

The National Commission to Review the Working of the Constitution (NCRWC), set up in 2000 under the chairmanship of Justice Venkatchalliah, submitted its report in 2002. Its report included chapter on “Decentralization and Devolution” Some relevant recommendations of the National Commission to Review the Working of the Constitution (NCRWC) are quoted below.

2.1 While improving the nature and institutional response of administration to the challenges of democracy is imperative, the system can deliver the goods only through devolution, decentralisation and democratisation thereby narrowing the gap between the base of the polity and the super structure. [Para 6.2.8]

2.2 District should be considered as a basic unit of planning for development. Functions, finances, and functionaries relating to the development programmes would have to be placed under the direct supervision and command of elected bodies at the district levels of operation to give content and substance to such programmes of development and public welfare. This would, to a substantial degree, correct the existing distortions and make officials directly answerable to the people to ensure proper implementation of development programmes under the direct scrutiny of people. [Para 6.4.1]

2.3 India should move to a system where the State guarantees the title to land after carrying out extensive land surveys and computerizing the land records. It will take some time but the results would be beneficial for investment in land. This will be a major step forward in revitalizing land administration in the country as it would enable Right to access, Right to use and Right to enforce decisions regarding land. Similar rationalization of records relating to individuals rights in properties other than privately held lands (which are held in common) would improve operational efficiency, which left unattended, foment unrest. A coherent public policy addressed to the modern methods of management would contribute to better use of assets and raise dynamic forces of individual creativity. Run away expansion in bureaucratic apparatus of the State would also get curtailed by new management system. [Para 6.4.2]

2.4 Energetic efforts should be made to establish a pattern of cooperative relationship between the State and associations, NGOs and other voluntary bodies to launch a concerted effort to regenerate the springs of progressive social change. State and civil society are not to be treated antithetical but complementary. [Para 6.5.4] The NCRWC has also made extensive recommendations for energising local bodies, viz. Panchayats, Municipalities etc. and make them into effective and citizen-friendly institutions of democratic governance. These recommendations included amendments to Article 243 and the Seventh Schedule of the Constitution.

3. The 2nd Administrative Reforms Commission (2nd ARC)

3.1 The Second Administrative Reform Commission (ARC), constituted in 2005 under the chairmanship of Shri Veerappa Moily prepared a detailed blueprint for revamping the public administration system. It has submitted 15 reports on various aspects of governance over 2006-08. These are

1. Right to Information – Master Key to Good Governance

2. Unlocking Human Capital: Entitlements and Governance – a case study

3. Crisis Management

4. Ethics in Governance

5. Public Order

6. Local Governance

7. Capacity Building for Conflict Resolution

8. Combating Terrorism – Protecting by Righteousness

9. Social Capital – A Shared Destiny

10. Refurbishing of Personnel Administration – Scaling New Heights

11. Promoting e-Governance – The Smart Way Forward

12. Citizen Centric Administration

13. Organisational Structure of Government of India

14. Strengthening Financial Management Systems

15. State and District Administration

3.2 The scope of work undertaken by the 2nd ARC covered a slightly different and a much wider agenda compared to that of NCRWC. However, the NCRWC's and the 2nd ARC's recommendations have near-identity of views in respect of Decentralisaton of Governance through Local Democracy, amending Article 243 of the Constitution as well as changes required in Administrative setup and Personnel Management. In fact, the 2nd ARC, which followed NCRWC half a decade later, has made a much deeper study of these issues and recommended reforms some of which are even more far reaching. It may be mentioned here that the Ministry of Personnel, Administrative Reforms and Public Grievance, having “abandoned” the NCRWC Report altogether, has also rejected or looped (a ritual normally followed by the bureaucracy to induce coma into a proposal prior to its informal burial) virtually all the important recommendations of the 2nd ARC on Personnel Administration and most of those on Ethics in Governance. The matter is still under consideration at the political levels. The good intentions seem to be there at the political level but it is to be seen whether the current political executive would be able to pick up the courage to over-ride the powerful status-quoist vested interests of the political and permanent executive who ring-fence the higher political executive from the rest 99.9% of the permanent executive as well as the common man.

3.3 The 2nd ARC has stated its vision of good governance as follows.

“An institutional set-up that ensures good governance usually has the following features:

1. Participation

All men and women should have a voice in decision-making, either directly or through legitimate intermediate institutions that represent their interests. Such broad participation is built on freedom of association and speech, as well as capacities to participate constructively.

2. Rule of Law

Legal frameworks should be fair and enforced impartially, particularly laws on human rights.

3. Transparency

Transparency is built on the free flow of information. Processes, institutions and information are directly accessible to those concerned with them, and enough information is provided to understand and monitor them.

4. Responsiveness

Institutions and processes try to serve all stakeholders.

5. Consensus Orientation

Good governance mediates differing interests to reach a broad consensus on what is in the best interests of the group and where possible, on policies and procedures.

6. Equity

All men and women have opportunities to improve or maintain their well-being.

7. Effectiveness and Efficiency

Processes and institutions produce results that make the best use of resources.

8. Accountability Decision-makers in government, the private sector and civil society organisations are accountable to the public, as well as to the institutional stakeholders. This accountability differs depending on the organisation and whether the decision is internal or external to an organisation.

9. Strategic Vision Leaders and the public have a broad and long-term perspective on good governance and human development, along with a sense of what is needed for such development. There is also an understanding of the historical, cultural and social complexities in which that perspective is grounded.”

4. The 2nd ARC goes on to observe that “Our Constitution provides a clear mandate for democratic decentralisation not only through the Directive Principles of State Policy which exhorts the State to promote Panchayati Raj Institutions but more specifically now through the 73rd and 74th Amendments of the Constitution which seek to create an institutional framework for ushering in grass roots democracy through the medium of genuinely self-governing local bodies in both urban and rural areas of the country. However, despite the constitutional mandate, the growth of self-governing local bodies as the third tier of governance in the country has been uneven, halting and slow.”

and

“Throughout the seventies and eighties, a process of centralisation of even basic municipal functions such as water supply and sanitation into the hands of parastatals such as water boards and authorities has led to a massive decline in the role and status of local bodies which is only now sought to be reversed. Such reversal faces inevitable hurdles from the established institutional structures at the State Government and district levels. “

The 2nd ARC has also chalked out an agenda for reform of local governance in both urban and rural areas. The core principles that underpin this agenda include, inter-alia, democratic decentralisation as the centre-piece of governance reforms in the country; the principle of subsidiarity which means that what can best be done at the lower levels of government should not be centralised at higher levels; a clear delineation of functions entrusted to the local bodies; effective devolution in financial terms and convergence of services for the citizens as well as citizen centric governance structures. The 2nd ARC has further noted that “

An analysis of the empowerment and functioning of local governments in various States leads to the following broad conclusions:

• Despite the mandatory constitutional injunctions, it took years, and in some cases a decade, to even constitute local governments and hold elections.

• Even when local governments are constituted and elections are held, States often postponed the subsequent elections on some pretext or other. Each time it is an uphill task to ensure compliance in some States, even with the mandatory provisions of the Constitution. There has been no linear development or evolution in respect of democratic decentralisation.

• State Governments, legislators and civil servants are in general reluctant to effectively empower local governments. Only the bare minimum required to implement the strict letter of the Constitution prevails in many States. What is implied by the spirit of the Constitution and principles of democracy is often ignored.

• Even mandatory provisions like the constitution of District Planning Committees and Metropolitan Planning Committees have been ignored in many States.

• Where the Panchayats have been constituted and elections held regularly, they are still left at the mercy of State Legislatures and State Executive. Although local governments have a long tradition of autonomy, the fact that Union and State Governments have an established tradition of centralisation for nearly four decades, means that strong vested interests have developed over time disallowing devolution of power.

• Some legislators at times tend to act as ‘executives’, intervening in transfers and postings, sanctioning of local bodies’ contracts and tenders, crime investigation and prosecution – all of which are therefore often at the mercy of the local legislator. Given the compulsions of survival, the State Government which depends on the goodwill and support of legislators, does not usually intervene except where the Constitution specifically and unambiguously directs it.” The recommendations of the 2nd ARC in its 6th Report on local governance reforms are crucial for deepening of the democratic processes in our country and need to be implemented urgently.

5. Core Principles of e-Governance The 2nd ARC has identified following Core Principle for e-Governance

5.1.1 Clarity of Purpose

There needs to be a clear understanding and appreciation of the purpose and objectives to be achieved through e-Governance. In the past, a large number of projects appear to be based on what technology can achieve rather than what the citizens need. A corollary to this would be a precise definition of the parameters against which any future evaluation would be done. e-Governance should not be taken up merely to demonstrate the capability of an existing technology, but the technology should be adopted to solve an existing problem. Citizen-centricity should be at the heart of all e-Governance initiatives.

5.1.2 Environment Building

There is need to change the mind-set of all the stakeholders involved, i.e. politicians, government officials and civil society at large. This requires a strong will to change among various stakeholders in the governance system. As the task involves redesigning of governmental processes at various levels, implementing e-Governance requires political support at all levels. Government personnel have to be incentivised to change old habits and acquire new skills. Awareness needs to be created in the public so that there is a constant demand for reforms in governance through implementation of e-Governance. In the end, the environment should be such that the perceived threat to entrenched interests is removed and resistance to change is addressed by dealing with actual grievances rather than perceived fears. A positive approach of government personnel towards the needs of citizens would be the necessary elements for creating a conducive environment. Raising public awareness, forming partnerships with academic institutions – public and private, Public-Private Partnerships (PPPs), exchange of best practices including with the private sector and involvement of citizen-groups should form part of this process.

5.1.3 e-Governance as an Integral Part of Reform in Governance

e-Governance cannot be separate from governance as a whole. Further, it cannot be taken as an adjunct of governance. It has to be an integral part of the governance structure and processes. Thus, every government organization or entity, every government programme or policy and every law and regulation would have to integrate e-Governance modules within itself rather than brought-in as an afterthought or introduced as an adjunct. Under e-Governance, the focus is always on ‘governance’ and the range of technological tools is utilized to bring about changes, keeping in mind the needs of the citizens and the organization itself. As governance covers a very wide range of activities in each area, the structures and processes which need to be changed or modified through use of technology have to be identified separately. This task cannot be performed satisfactorily if e- Governance is not made an integral part of the organization which is undertaking to reform itself.

5.1.4 e-preparedness and Step-wise Approach

e-Governance cannot be introduced in the whole country across government organizations at one go. As mentioned above, e-Governance is an integral part of reforms in governance and each organization needs to embed e-Governance systems within the organization in a seamless way. However, different organizations are not, presently, at the same level of e-preparedness. There has to be a step-wise approach to e-Governance so that outcomes are maximized and citizens reap early benefits from e-Governance. Whether it be for providing information and services to the citizens or for streamlining the internal functioning of government organisations, each e-Governance initiative would have to be accompanied by a step-by-step analysis of the governmental processes involved and tested on the anvil of simplicity and desirability. This would lead to redesign of processes using technology. The process would result in, if required, changes in forms, processes, structures and laws and regulations. This exercise would form the backbone of e- Governance initiatives and should centre around the needs of the citizens.

Every e-Governance initiative would require its own technological solution. However, there would be commonalities across Union, State and local government levels. Further, there would be need for sharing of information and establishing connectivity across organizations at different levels. This would require standardization of basic requirements, adoption of interoperable platforms and creation of data storage and retrieval systems. In the end, the technological solution would have to be modified according to the specific needs of the organization with the help of field experts. The technological solution should be able to provide a simple interface to the citizens, be cost-effective, promote efficiency, be sustainable and reliable and lend itself to scalability.

5.1.5 Disciplined Way of Working

e-Governance requires a disciplined and systematic way of working in organizations. Most technologies pre-suppose a set of rational behaviour on the part of users. This element needs to be emphasized during the capacity building as well as in the life cycle of the project.

5.1.6 Monitoring and Evaluation

Close monitoring of e-Governance projects is necessary in both the pilot phase as well as during the actual working of the up-scaled project. This helps in early detection of problems and hence facilitates prompt corrective action. However, apart from periodic monitoring of e-Governance initiatives in the post-implementation stage, there would also be need for evaluation of the impact of such initiatives through independent agencies against parameters which would determine whether the objectives have been achieved or not.

5.1.7 Developing Secure, Fail-safe Systems and Disaster Recovery Systems

Given the scale of potential e-Governance applications in the country and the prospective mammoth flow of data involved, the technological architecture on which such applications are mounted would need to be made not only secure but also fail-safe. Mechanisms would have to be incorporated which would put the systems in the ‘safe mode’ in times of crisis. Further, depositories and ‘mirrors’ would need to be created with sound disaster recovery modules with adequate security features to prevent loss of data and collapse of the system. Unless security features are properly implemented, electronic transactions are more prone to fraud and abuse than traditional paper-based transactions. As governments move toward providing the full range of government services online with the capability to conduct sensitive transactions, it needs to be ensured that these transactions are secure and the privacy of citizens is not compromised. Over and above, these systems would also need to be insulated from the possibility of cyber-attacks, hacking etc.

5.1.8 Sustainability In the end, e-Governance initiatives need to be sustainable.

Once it has been established that any particular initiative is the better way of providing services or information to the people or conducting the business of government, it should not be allowed to relapse on grounds of expediency. Reforms are always harder to implement and sustain, but once they take root, they deliver the best results. Sustainability could be addressed in many ways – some initiatives may require designing in a way that they are financially sustainable. Others may be driven by administrative objectives or simplicity of use. Saving of time and money may be the driving force in case of some projects. All these are objectives, which on their own merit, justify the continuance of any particular initiative. If projects have been able to achieve any of these objectives, their sustainability should not be allowed to be jeopardized on some other grounds.

5.1.9 Allowing for Horizontal Applicability

A coordinating mechanism is needed to prevent cases of re-inventing the wheel. Different States across India face similar types of challenges. Past experience has shown that a number of States have undertaken e-Governance projects to address similar concerns. Successes need to be adopted across States and organizations thereby minimizing costly repetitions, adapting user friendly interfaces and in many cases, avoiding failures. As India is a multilingual society, e-Governance initiatives also need to provide citizen interfaces in the respective local language.

5.1.10 e-Governance – a Continuing Process

e-Governance represents a paradigm shift in the field of governance reforms. Bringing it about would have to be a continuing process which would require many adjustments. e- Governance is a journey and not a destination.

5.2 Building a congenial environment for e-Governance

Making governance reforms rather than technology tools the key focus for e-Governance projects, a step-by-step approach to maximise outcomes and benefits, complete reengineering of government systems and procedures, constant monitoring and evaluation and ensuring citizen-friendly interface including local languages is key to any successful e-Governance initiative. Building a congenial environment for successful implementation of e-Governance initiatives requires

i. Creating and displaying a will to change within the government

ii. Providing political support at the highest level. A clear mandate from State Governments for governance reforms must precede the e-Governance initiatives. This would involve, if necessary, changing procedures and even structures and statutes. Therefore as a first step, these issues need to be analysed, decision points identified and political approvals taken.

iii. Incentivising e-Governance and overcoming the resistance to change within government

iv. Creating awareness in the public with a view to generating a demand for change and obtaining their active participation in process simplification and designing of user friendly interfaces.

v. Allowing and encouraging outsourced user terminals, in the manner of STD booths two decades earlier and PAN card application centers more recently. These may also need to be subsidized in case of rural locations.

vi. Finally, appointing an eminent technocrat from outside the government, to head the e- Governance project, in the manner done in case of the Unique Identification Database project (UID) project.

October - December, 2009