EFFECTIVE MODERNISATION OF PUBLIC

ADMINISTRATION: THE EXPERIENCE OFINDIA-

SELECT CASES

TEKISURAYYA

The article studies modernisation of Indian public

administration, through select cases. A public administrator
should have marketing attitude to evolve right services for
people. This requires administrator going to people for
consultations in making policies. Implementation of VAT is
an example of modernisation of tax administration.
Janmabhoomi and Joint Forest Management programmes
in which public administration played modern facilitator
role is a successful case of Citizen Participation in modem
public administration. Fiscal component of
decentralisation transfers authority to local governments
empowering them to finance (INR 6075 million) fund
through issues of bonds from public, to provide
infrastructure for people and Kerala Forest Revolving Fund
for teak and pulp wood are cases of effective
modernisation of Administration and decentralisation.
Citizen participation, decentralisation including fiscal
management, .}trategic management approaches, etc. are
fundamental pillars for effective modernisation of public
administration.

WITH THE people's expectation for a rejig in pu~lic administration, the

world has been experiencing significant metamorphosis in this regard
for the past few decades. The world has transitioned from agriculture
and industrial world to information technology world, that is the current
third wave. It obviously necessitated that public administration should
be replaced with pubJic management. A py.blic administrator no longer
is expected to be functioning as a powerful officer of government, rather
he/she should required to be a marketing manager of a business
organisation whose job is to evolve right product/service to the customer
(people) rather than finding right customer for already developed
 EFFECTIVE MODERNISATION OF PUBLIC ADMINISTRATION 133
TEKI SURAYYA

products. It means the public administrator is required to reach out to

people, involve/consult/participate/include them in making policies/
schemes that will affect them directly or indirectly. Rather the paradigm
shift is the public administration participating in the people's programmes.
In fact public administration is a vital tool to deliver the welfare services
of government that were targeted towards common good of the people
at large and particularly poor and weaker sections of the society. For a
long time it has been forgotten that the existence of public administration
was because of people, if people had not been there in the society the
need for public administration would not have arisen. Traditionally public
administration was functioning like custodian of society's wealth and
welfare without giving much regard to the key player of the society i.e.
people at large. Of late it was realised (since last few decades) that the
inclusion of people and decentralisation are sine quo non for
development of the poor people and fighting against evils like poverty,
etc. The required effective modernisation of public administration can
only be possible with an institutionalised system.
One of the significant paradigm shifts in public administration that the
world over has been experiencing for the last two decades or so, is
liberalisation and globalisation that warranted substantial modernisation in
public administration. The results of which was increased global Gross
Domestic Product (GDP) and economic growth, though it has not contributed
much to reduce socio-economic gaps in the society. Therefore the public
administration has to play crucial role in this direction, which in tum
necessitates the modernisation of existing style of functioning, to adopt
participative style of working involving people in public administration.
Converting economic achievement into human development progresses will
entail public policies designed clearly and explicitly at widening the distribution
of benefits derived from economic growth and global assimilating and
enhanced public outlays in rural physical and social infrastructure and
service. It requires committed political leadership and effective and efficient
modernisation of public administration that can provide good governance.
Translating increased financial commitment into improved outcomes will
require a stronger focus on effective delivery and measures to improve the
quality of public services. There is no shortage of innovative models to
draw upon. Some Indian States such as Himachal Pradesh and Tamil Nadu
have sustained rapid progress in education, not just by increasing budget
provision but by modernising, i.e., increasing the accountability of service
providers and creating incentives-such as free school meals, scholarships
and free text books--aimed at increasing the participation of poor households.
Public administration's major aim is for holistic development and betterment
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of the quality of life of the people of the society. The world has been
experiencing a firm faith that a modern public administration with reforms
especially directed towards inclusion of people in policy and decision-making
process and transparency, reinforces the democratic nature of institutions
and the people's confidence in the public administration. It provides the
public administration with egalitarian authority. The available comparative
evidence (Jacob S) from different countries also suggests a strong negative
correlation betw~en the modernised transparency of public administration
and levels of corruption.
In 2003, the State Tax Administration (web.worldbank.org) of Ukraine
approved a strategic plan for the sector development for 10 years. The
Ukrainian programme of reforming the tax system was supported by the
World Bank which approved the decision to allocate $US 40 million for
implementing the State Tax Administration Modernisation Project for
Ukraine. The project supports the State Tax Administration's efforts to
develop and introduce a single system of state registration of taxpayers at
Ukraine's tax bodies, and a system of supervising the calculation and receipt
of payments, as well as reorganisation of the tax service by the functional
principle, which is aimed at better public administration in state tax
administration. In fact tax administration system has been experiencing
modernisation world over. In India implementation of Value Added Tax
(VAT) in some states is a classic example of modernisation of tax
administration which is resulting better management of tax revenue that
will give more and better funds to the exchequer for development of threshold
infrastructure especially in rural areas. The Government of Vietnam has
made great effort (web.worldbank.org) to promote Public Administration
Reform (PAR) to facilitate sustainable economic growth and development,
to make the gove!llment machinery clean and to improve governance
effectiveness and efficiency. However, looking at the demand of the
renovation process and for the socio-economic development, PAR has still
been slow, inefficient and inconsistent. But it reveals the need and impo~ce
of modernisation of public administrative practic~s. The article aims to find
out experience of India in modernisation of public administration through
select cases.

EFFECTIVE MODERNISATION OF PUBLIC ADMINISTRATION

Citizen Participation in, and Decentralisation of Public

Administration as strategies for Modernising Public Administration
Due to the advent of information technology the day is not very far, to
seek larger even every households' participation and involvement of the
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TEKI SURAYYA

people in making policies and taking important decisions that will affect the
people through virtual source like internet, presuming every house will have
Internet connected computer. As of now it seems to be having theoretical
existence only. But the day is not far away, that it will be practical way of
making public administration decisions and delivering public administrative
services. There are many effective cases, this article discusses select cases
to substantiate success and fruits of people participation in public
administration.
In India a number of socio-economic development programmes like
Integrated Rural Development Programme (IRDP), Self-employment
schemes etc., have been traditionally evolved and implemented by public
administration to provide welfare, create income generating activities,
addressing the problem of poverty, etc. The efforts of public administration
through these programmes could achieve the expected results only to a
stipulated extent. Due to traditional bureaucratic practices and inherent
weaknesses like unilateral policy-making, non-inclusion of people in the
planning and implementation of public programmes, lack of regards for
endemic resources, skills, and traditional technology, attitudinal differences
between public administration and people, implementation of development
programmes without visualising local environment, culture and socio-
economic factors, etc were hindrances for effective public administration.
Of late governments and administrative planners have realised the fact that
the goals of administration can not be achieved effectively unless the citizens
have a say and put their minds in the micro planning and implementation of
programmes developed to help them. Gradually but with conviction,
governments have begun the process of decentralisation, inclusion of citizens
in decision-making process, etc for better and effective delivery of
administrative servi<;.es. Programmes such as Joint Forest Management
(JFM), Janmabhoomi programmes of Andhra Pradesh are some remarkable
strategic experiences of effective modem public administrative practices
that resulted in percolating the social expenditure benefits down to the poor
citizens.
Janmabhoomi (Mother Land) a Strategic Programme and Vivid
Example of Modernisation of Public Administration: A Case
From various studies (Teki S 2004) empirical evidence substantiates
that a participatory, responsible and receptive management is in better
position to provide able leadership and gamer cooperation and support from
the people in attaining common objectives. Janmabhoomi is a people focused
development programme activated in January 1997. This programme, curved
out from alike programmes/Prajala Vaddaku Palana (administration to
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the doorsteps of the people) and (Sramadanam) (contribution of labour),

largely aims at evolving a better society that incorporates and relishes
philosophy of people participation, transparency, accountability and equity
that will lead towards sustainable socio-economic development and improved
quality of lives for the poor. The core areas of Janmabhoomi includes
(www.narafan.com)
1. Community works
2. Primary education
3. Primary Health and family welfare
4. Environment conservation and;
5. Responsive governance
The programme is one of its kind with main motive of overall
development of poor people, especially in rural areas, based on participation
and team work to improve/develop the local habitat. Under this approach,
people are expected to recognise their felt needs and requirements, contribute
to the cost either in kind or cash, implement common benefit works by Self-
Help Groups (SHGs), self audit and appraisal for their own expenditures
and should own and manage the common benefit of assets built by them.
Public administration plays a modem facilitator role.
Joint Forest Management (JFM) as a Paradigm Shift in Public
Administration
JFM is a paradigm shift in delivering pubic administration, from
centralised management to decentralised management, revenue orientation
to resource orientation, unilaterlism to partidpatory decision-making,
bureaucratisation to peoples' institutionalisation, macro planning to micro
planning, alienation due to policing to developing partnership,
disempowerment to empowerment, conflict to collaboration, exclusion to
inclusion, estrangement to embrace. This was an effective shift in public
administration that is being resulting in achieving several goals such as: (a)
protection and upkeep of swiftly dwindling natural forests in Incija, the global
scenario is no way different from that of India in this regard, (b) providing
livelihoods through employment in forestry operations, increased source of
Non-Wood Forest Products (NWFPs) is one of the major sources of
livelihood to the forest dwelling poor people, and (c) empowering the poor
through their participation in the decision-making, thus providing stimuli to
the poor forest dwellers (FDs), to resist exploitations by the traders,
indigenous moneylenders and landlords in their vicinity. During a field survey
conducted in 2000 as when asked how JFM impacted the empowerment,
the FDs said that they have seen high level forest department public
administrators like Divisional Forest Officers, Conservator of Forest etc.,
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TEKI SURAYYA

for the first time only after the JFM interventions. They were conscious of
rise in self-esteem on not only seeing the senior officer but also· sitting
along with them in village JFM meeting.
The Fiscal Component of Decentralisation: Case of Urban Local
Bodies (ULBs)
The fiscal component of decentralisation deals with the transfer of
authority from the Central/state government to local level governments like
panchayats and municipalities. In this direction some municipalities (Urban
Local Bodies (ULBs) in India, have already made a head way in mobilising
financial resources on their own for development of necessary infrastructure
without depending on national and state level governments for funds.
A total ofINR 6075 millions fund has been mobilised through issue of
municipal bonds for public, by all select eight UBLs, which is a vivid example
of effective decentralisation that enabled the UBL to source funds from
public to provide necessary physical and social infrastructure to the people
at large. The ULBs have also evolved innovative instrument for repaying
the debts through effective instruments like (through shadow pricing),
imposing CESS on local taxes and rates (octroi, property taxes, water,
sewerage, profession taxes, town planning charges), and scrutinising/
escrowing of taxes to enhance the credit basis.
Strategic Management approach by Modern Public Administration
for delivering Social services: An emerging experience of
Government of Andhra Pradesh
The former Chief Minister of A.P, Mr. N. Chandrababu Naidu should
be attributed as strategic reformer of public administration. After recognising
the importance of strategic management approach in public administration
that was required for achieving socio-economic objectives of the government
through public admirustration, he brought significant reforming modernisation
in public administration to adopt strategic approach. He could change the
perception and mindset of b~reaucracy that they are there to participate in.
the peoples' programmes and planning rather people participating in public
administration. He emphasised on effective and efficient delivery of social
expenditure for rural poor to reduce the poverty. He stressed that the public
administration should adopt a vibrant strategic management approach in
which people's participation should be a vital component. This approach
emphasises on participatory and inclusion of multi-stakeholders in planning
rather than unilateral planning by public administration alone. Participatory
planning is_ a process by which a community undertakes to reach a given
socio-economic goal by consciously diagnosing its problems and charting a
course of action to resolve those problems. Experts and public administration
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are needed, but only as facilitators. Moreover, no one likes to participate in

something, which is not of his/her own creation. Plans prepared by outside
experts, irrespective of their technical soundness, cannot inspire the people
to participate in their implementation. The AP Government has evolved a
performance management system (Fig. 1) that equips the leaders, public
administrator, and people at various levels with a set of management
technology to cautiously plan and control the delivery performance and
bench-marking big strides to improve the performance gradually.
Under this system the planning process starts with well defined strategic
intent, vision and mission. The basic difference between this modem
approach and earlier approaches of public administration delivery
management is that, the strategic approach involves the community
participation in setting objectives, evolving strategies to achieve the desired
objectives. The system develops performance indicators, translates
objectives into measurable targets and continuously monitors performance,
finding deviation between actual and standard performance and revisiting
the objective when and as required unlike in traditional approach controlling
at only specific time intervals. The strategic management approach
integrates objective, plans, policies, budgets, projects and action plans towards
attaining the eventual goals. Experience of the countries, which have adopted
this approach reveals that it takes decades to institute a sound system. All
good things materialise only after continuous toils and strive by all concerned.
India is still in nascent stage to institute the system for effective and efficient
delivery of the social expenditure.
However, all governments without any exception must endeavour and
toil to evolve and embrace this strategic management approach for better
public (administration) management and delivery of social expenditure to
achieve developmental goals of the effective modem public administration.
The Kerala Forest Revolving Fund for Teak and Pulp Wood (1999)
:an effective Paradigm in the Public Financial Administration
In India, the Central and state governments collect revenues under
various heads like taxes, income from state owned enterprises, etc. The
revenues so collected will be directly remitted to the Central or state
consolidated fund (total in flow of funds) for allocation the fund through
annual budget (out flow of funds) after passing the budgets in the Parliament
or ih state assembly as the case may be. The forests in India come under
the purview of state level governments, the revenue collected through sale
of timber and other source of income is remitted to the concerned state
consolidated fund. The revenues are collected throughout the year and
remitted to consolidated fund as and when realised. But the budget for the
financial year is generally passed some time in the month of March/April
 EFFECTIVE MODERNISATION OF PUBLIC ADMINISTRATION 139
TEKI SURAYYA

and it takes further three to four months (July/August) to reach the local
level for operational purpose. One of the major operations of forest
department is planting seedlings in degraded and harvested forest areas
before rainy season starts (May/June). But the preparation of seedlings at
the nursery should start somewhere in April/May, otherwise the plants
mortality rate is less if the seedlings are planted after rainy season. The
major problem of forest department was delay in receiving the funds from
the state government. To solve the problem Kerala forest department
brought very significant public financial administration shift by way of
creating a revolving fund, that is aimed at retaining five per cent of teak
timber sold and 50 per cent pulpwood sold in that particular forest division
area can be retained without remitting to the state consolidated fund, and
depositing that amount in saving bank account that is operated by the
divisional forest officer. And the necessary provision to this effect will be
made in the state subsequent budget. This was indeed a landmark transition
in the public administration that is working very effectively to get necessary
fund in time to grow seedlings at nurseries and plants at appropriate time.

CONCLUSION

People need effective, transparent, efficient, and accountable and

service orientation in public administration and effective modernisation of
public administration is inevitable for it. It necessitated replacement of public
administration with public management. Public administrator now is expected
to be like a marketing manager of an organisation whose job is to evolve
right service to the people. Hence, administrator is required to reach out to
the people, consult/include people in making public policies. Liberalisation
and globalisation warranted effective modernisation in public administration,
which increased global GDP and economic growth, but could reduce socio-
economic gaps in the society to a limited extent. Hence, the public
administration has to play a crucial role that necessitated modernisation of·
existing style of functioning, to adopt participative style of working involving
people in public administration. The world has faith that an effective
modernisation of public administration gains confidence of the people and it
provides egalitarian authority to administration. Strategic approach of modem
administration includes people in decision-making and measures performance
continuously through indicators. Strategic management approach to modem
public administration integrates objective, plans, policies, budgets, projects
and action plans towards attaining the eventual goals that makes the public
administration accountable for outputs and outcomes of the public
administration policies. Citizen participation, decentralisation including fiscal
140 I INDIAN JOURNAL OF PUBLIC ADMINISTRATION
VOL. LIV. NO. J, JANUARY-MARCH, 2008

management, strategic management approaches etc. are fundamental pillars

for effective modernisation of public administration.

A SELECT READING

The UNDP. 2005. Human Development Report 2005, Oxford University Press, New
Delhi, pp. 31.
Jacob Soderman, Transparency for Better Governance (Cited on 24 December 2005)
available from <URL http://www.iiasiisa.be/iias/aiconf/monterrey/
aimont_papers.htm>.
World Bank, (online) (cited on 24 December 2005) available from ,URL http://
web . worldbank.org/WBSITE/EXTERNAL/COUNTRIES/ECAEXT/
UKRAINEEXTN /con tentMD K: 2020067 2-menuPK: 463 349-page
PK: 1497618-piPK:217854 -theSitePK:328533,00.html>.
World Bank, PUBLIC ADMINISTRATION REFORM PARTNERSHIP (Partnership
Note, June 2004) (Cited on 24 December 2005) available from <URL http://
web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/EASTASIAPACIFICEXT/
VIE TNAMEXTN/O,,contentMDK:20249727 -page PK:141137-piPK:141127"
theSitePK:387565,00.html>.
Narafans Programmes, Janmabhoomi (online) (cited on 20th October 2004) available from
URL <http://www.narafans.com/janma.asp?subpro=prg>.
Teki Surayya, 2004, Role of Public Administration and Microfinance in Alleviating the
Poverty thorough Participation and Empowerment of People: w.r.t. Forest dwellers -
case studies from India , presented at The Role of Public Administration in Alleviating
Poverty and Improving Governance Launching Conference of NAPSIPAG Kuala
Lumpur, Malaysia, 6-8 December 2004.
R. Annamalai, Joint forest management in Tamil Nadu past, present and future" cited on
20lh October 2004, on line available from URL<http://www.iifm.org/databank/ifm/
tnjfm.html(l 7104) Forest information system project of IIFM, Chinmaya S. Rathore,
S.K.S. Rathore, Seema Jain.
Manju Ghodke (2004) Accessing Capital markets by urban local bodies in India: Assessment
of Municipal bonds, India infrastructute report 2004, Oxford University Press, New
Delhi pp. 144.
K. P.Mukundan, Training module on participatory planning and management (on line)
cited on 15lh October 2004 available from URL <http://www.fao.org/documents/>.
P.K. Mohanty, Andhra Pradesh Improving Governance through Performance Managemept.