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Development Administration
Development Administration
The two are often equated with each other DA has flourished within the larger corpus of CPA literature The theory of prismatic society has influenced theorising in development administration In many countries, enclave development has been promoted through introduction of micro-institutions to push through development within the framework of underdevelopments
Can bureaucracy be the right instrument for undertaking the development of any country?
Alleged that bureaucracy is status-quo oriented o Development needs change o
Table 1
Bureaucracy has Hierarchy well laid out graded strict subordinate superior relationship
Advantages for development Well-defined division of work Reduces friction between officials by clearly defining sphere of competence Effective coordination through a well laid out machinery
Disadvantages Policy decisions made at the top only Non-participative approach towards people and subordinates. High-handedness of bureaucrats. we know the best ideology
Does not permit people like activists and others on grassroot who have actual experience in leading development programmes to take charge of those programmes Not oriented to the changing conditions at the grassroot Makes the bureaucrats complacent and indifferent
as their job is not at stake Takes away their initiative as there is no reward or punishment
Selznick: Excessive rule orientation may lead to goal displacement Follow rules blindly Takes away the initiative and discretion of the public servant Red-tapism and delay in programme implementation May lead to corruption through speed money Neutrality taken as a cover for bureaucratic apathy Merton: complete anonymity and value neutrality militate against the concept of public service
<complete rationality anyways is not possible Simon> Makes the public servant completely insensitive to the feelings of the citizens
o o o o
Some examples of effective participation of women in development from India and other countries SHG movement in India Kudumbshree in Kerala
State-vs-Market
The debate is not a new one. It has been in continuous existence ever since the publication of The Wealth of Nations by Adam Smith Smith and Ricardo made case for free markets, laissez-faire Communists argued for total control of the market by the state With the emergence of Keynesianism the role of state was enhanced In the 1940s the debate was essentially between Keynes and Hayek The question assumed even more significance with the liberation of a former colonies o They were faced with the question of development and which path to take After the end of the cold war, market became the pre-dominant paradigm. Washington Consensus
Why did the debate emerge? Shift in the stance of public policy since 1980s Thatcherism and Reaganism Emergence of New Right Public Choice theory Emergence of the competition state What is the debate? Roll back of the state resulted in deregulation, privatisation and introduction of marketoriented reforms in public services This has led to a pro-market and anti-state philosophy Milton Friedman contributed to this That market and not the state has to be the central actor in the new political economy Government is less efficient than markets over providing services to individuals What is its objective? Slim the state and liberate the market forces Import market concepts and incentives into the working of the government itself Take measures to reduce the relative size and expanse of public expenditure and also to cut down the range of functions that the government performs Views and counterviews
Table 2
Pro-state Joan Robinson: Invisible hand of the state might work by strangulation
Pro-market Paul Streeten: The state does not optimize anything, neither public welfare nor self-interest.
Sen and Dreze: Success of market is dependent on the nature of state action. The state action is context dependent Bhaduri and Nayar: creative cooperation between the two. State must create physical and social infrastructure. Functional, institutional and strategic interventions should be made. Functional: remedy market failure Institutional: setting rules of the game Strategic: guide the market to attain long term objectives of development The state must not abandon its efforts for development in the name of LPG Socially Responsible Market Economy (SRME) proposed by Indian economists: reorienting role of state through joint sector, strengthen social service, infrastructure development. <how is it any different?> SRME emphasises on self-discipline, peer pressure and adherence to codes of conduct by all economic players What changes did policy bring about? World Bank and the Washington Consensus Structural adjustment programmes Role of the state in a market economy 1. Provide a legal framework and maintain law and order, including the enforcement of contracts, property rights etc 2. Come up with anti-monopolistic and anti-restrictive practices laws 3. Can intervene in the process of price formation, production and finance to make markets function better 4. Human resource development 5. Physical infrastructure like irrigation, roads, electricity and communication
What ways should state institutions change? Become responsive to the needs of people
WDR 2000-01: Attacking Poverty says that Pub Ad should o Implement policies efficiently o Be responsive to the needs of the people o Redistribute resources for activities that benefit the needy WDR 2002: Building Institutions for Market o Weak institutions.... hurt poor people and hinder development WDR 2004: Making services work for poor people o Warns that broad improvements in human welfare will not occur unless poor people receive wider access to affordable, better quality services in health, education, water, sanitation, and electricity. o These services are essentially state provided. Hence the state has a crucial role in development and enhancing human welfare.
Gist of it all The debate is no longer valid o Neither a liberal state nor an interventionist state can ensure development Pro-market reforms are essential for promoting economic growth But this does not negate the role of the state State is needed to transform this growth into development by thwarting the negative consequences of such reforms through suitable interventions. <eg. Social security schemes, education etc> Revitalising public institutions is very important to counteract the negative consequences emanating from LPG A state which pays little attention to the economic suffering and marginalisation of a significant proportion of its population not only discredits itself but also the market process through which such marginalisation occurs. The states role hence is very vital for the success of the market processes. At the same time, today PA has transformed to include three players in governance o State o Market o Civil Society What is needed is not less government, but a better and different type of government
Impact of Liberalisation
What has happened in general due to liberalisation? Public sphere is shrinking Emergence of the corporate state Emergence of regulatory state Osborne and Gaebler Reinventing Government Impact on administration The biggest challenge for administration is to recast the role of the state Need to evolve a new regulatory state with an expended agenda.