GOVERNANCE, GROWTH & US

By Dr. Swatantra Kumar

Why governance is such a huge issue Rarely has the need for the

effective governance been greater than now – and rarely has the ability to produce it been more constrained. – Diana Farrell, Director, McKinsey (She is the global leader and co-founder of Mckinsey center for government)

Governments are huge As per Mckinsey (center of governance),

on an average government is 40% of GDP.

How it functions makes a huge difference

Efficiency matters MNREGA scheme – employment guarantee

to rural people 2013-14 outlay – Rs. 33,000 Crore Another Rs. 1000 crore will be added to that

for 2014-15 As per an estimate only 15% of the money is

reaching intended beneficiaries (Rs. 495 crore)

Rest 85 % (Rs. 32,505) ????? It is 3.6% of our GDP

International Finance Corporation and World Bank study report 2014 On ease of doing business in a country

Singapore is No. 1US is No. 4Georgia is No. 8Sri Lanka is No. 85China is No. 96Pakistan is No. 110Bangladesh is No. 130, and

India is No. 134

India report card

The huge paradox We are among the most inefficient

governance systems in the world Still we are growing at a healthy rate.

Why & How?????

Probably We have a great deal of

potential as a nation It shows by the positive

differential (GDP growth rates)

Good and efficient governance can take us a long way.

What we need to do to move

up the ladder

Things to do Bring Transparency Make provisions for

Accountability Invite public Participation in

governance Have a Long term vision Bring Execution excellence in

the system

Few casesPlease refer

Brazil 2009 – 70% of global companies

responding said they viewed corruption as a major constraint to doing business in Brazil

As per a survey by federation of the industries found in 2008 alone corruption cost the country some $ 40 billion (2.3% of GDP) – equivalent to half its education budget.

The response Brazil’s office of

comptroller General created an open access web portal with data on federal expenditures.

Initially it documented only federal money transfers to state or municipalities.

Now It have details of

Elected officials charges on govt. issued credit cards

Federal agency expenditure on travelStaff salaries, office supplies, equipment, and

contractor servicesTax revenuesGrants to non governmental organizationsSocial welfare paymentsList of companies and individuals blacklisted for

committing fraud through public controls

Recently They have added How states are using

money allocated to them for 2014 world cup, and 2016 Olympic games.

The amount of govt. money tracked on portal is now almost $ 4.8 trillion.

Provisions No exceptions to any ministry Data updated daily/monthly 32000 visits/month – 1st year 3,45,000 visits – 2012 Campaign “Right to know” on media Public spending observatory (Created in

2008) looks for suspicious patterns. A govt. minister had to refund $30,000 for

inappropriate charging personal expenses including vacation travel.

How it compares to RTI act Proactive Vs. reactive Limited coverage Vs. Comprehensive

coverage Incremental Vs. Radical

Estonia – E-Governance

About Estonia is a small country 75% people on internet 90% of people have e-ID cards One can apply for unemployment benefits File for leave Pay taxes (94% tax collection online) Register new companies Vote online (2011 – 25% votes online)

E-ID Vs. UID Population base is an issue. UID to be made more powerful It can be made e-UID 56 Crore enrolled in UID is an

achievement.

Indonesia – LAPOR (Public Participation Information System)

How it works Any body can send problems to the

portal. These problems are tracked and solved AAP party started the similar initiative in

N.Delhi. Brings accountability in the system

Georgia – One stop shop

How it works All problems solved at one place 250 different govt. services under one

roof Passport in 10 days ($ 59) Passport in one hour ($ 120) Earlier, the broker used to charge $150

for 3 day delivery of passport.

achievement Georgia now ranks 8th out of 183

countries in ease of starting a business and second in registering property.

Take 3 days to start a business 2006 – 52 days & 15 documents to

import a container. Today – 10 days and 4 documents

Yes, we can do it Create More

Jobs

Create better infrastructure

Be entrepreneur

s friendly

Make education

more meaningful

Better governance = Growth & Prosperity

Thanks For the opportunity