Reforming Public Services in India: Drawing Lessons from

Success

Vikram K. ChandThe World Bank

May 9, 2006

Objectives of the Report The report documents 25 cases of success in

improving public services across sectors/states. Cases were chosen on the basis of three criteria:

(a) Substantial institutional reforms introduced, (b) Documented success in improving outcomes through user surveys, objective indicators, and external recognition, and (c) initiatives in existence for at least two years.

The main objective was to draw lessons on how to improve public service delivery across sectors.

Success in a Difficult Environment These reforms took hold, despite serious

systemic obstacles to improving public delivery systems.

These systemic obstacles include: Overstaffing. Frequent transfers of public servants. Weak anti-corruption enforcement mechanisms. The need for electoral financing reform.

Decentralization was only one element in a complex mix of instruments to improve delivery

The Enabling Environment

The Role of Political Leadership Vision Counts: The political leadership

influenced the kinds of reforms pursued in several states, like AP, MP, and Karnataka.

Bipartisan consensus across party lines facilitated reforms to improve program delivery in Tamil Nadu.

Electoral incentives motivated political leaders to support change in Tamil Nadu and Madhya Pradesh.

An Empowered Civil Service Stability of tenure crucial to empowering

civil servants spearheading reform initiatives.

Managerial autonomy for decision-making. Political support and signaling.

Civil Servants when empowered by political leaders can be an effective instrument for innovation in service delivery.

Activating Civic Pressures for Change The Importance of Institutional Design

Access to information laws work best when appeals processes are simple and pressure from below encourage their use.

BATF institutionalized citizen participation in urban governance. Public Interest Litigation

NGO’s appeal to one part of the state (the judiciary) to hold another accountable (the executive).

Creating Stakes for Participation: The Political Economy of Hospital Autonomy in MP

Using the Media for Effect: Anti-corruption Institutions need to focus more on corruption in

service delivery; the media can be an important ally when prosecution is difficult.

BATF and the Surat Municipal Corporation use the media as an ally.

INSTRUMENTS FOR REFORMING PUBLIC SERVICE DELIVERY

Promoting Competition: Cases and LessonsCases: Telecom Reform in India, 1980-2004. Opening up Rural Marketing in MP.Lessons: Conventional wisdom borne out: Competition benefited

consumers in telecom and farmers in MP. Rent-seeking by vested interests curbed. Strong action at highest-levels needed to push reform

PMO push reform in the Telecom case. MP government amend Mandi laws to allow for

greater private participation.

Simplifying Transactions: Cases Report examined several cases using

e-governance to simplify transactions. One-stop-shops: E-Sewa and Friends Government Certificates: Bhoomi Rural Card in Andhra Pradesh Computerizing Inter-state Check-

posts in Gujarat.

Simplifying Transactions: Lessons High-level political support key to

overcoming resistance. Stability of tenure for administrative

champions necessary. Importance of Public-Private Partnerships

in E-Governance Low levels of citizen awareness in rural

areas an obstacle to change. No jobs lost in any of these initiatives: Win-

Win Reforms.

Restructuring Agency Processes: Cases State-Wide Agencies

Maharashtra’s Registration Department The Karnataka State and Road Transport

Corporation. City-Wide Agencies

Transforming City Agencies in Bangalore Reforms in the Surat Municipal Corporation Making the Hyderabad Water Supply and

Sewerage Board more responsive.

Restructuring Agency Processes: Key Lessons Business process re-engineering needs to

accompany computerization. Centralized monitoring systems can empower

senior management in relation to front-line staff and junior management.

Inter-agency coordination needed to break down silos.

Restoring Performance Incentives in Agencies. More Effective Linkages with Civil Society

Needed.

Decentralization: Cases and Lessons

Cases: Surat After the Plague, 1994-2005. Decentralizing Teacher Management in MP.Lessons: Decentralization in Surat freed the municipal

commissioner to focus on policy issues and empowered zonal commissioners, on the ground, to deal with a fast-changing situation.

Decentralizing teacher control to PRIs in MP lowered teacher absenteeism and reinforced accountability.

Use of para-teachers made it possible to extend a decentralized model of teacher management in MP that boosted school enrollment in a fiscally-constrained setting.

Strengthening Provider AutonomyCase: Rogi Kalyan Samitis in MP. Hospitals set up as RKS societies with autonomy

to charge user fees and deploy them for purchase of equipment and maintenance.

RKS societies representative of local society. Results:

Productivity of salary expenditures improved Doctor enthusiasm increased with better

equipment Patient satisfaction ratings increased

significantly.

Building Political Support for Program DeliveryComparing HD Outcomes in Tamil Nadu and

Karnataka. Both States possess similar human development

outcomes in 1981; By 2001, Tamil Nadu had jumped to third place while Karnataka remained in seventh place, despite similar rates of economic growth.

Gap is now narrowing, but the question remains why TN was a superior performer in the 1980’s and 1990’s on the whole.

Key difference is the role of the Tamil Nadu government in fashioning a set of public policies and interventions to boost human development beyond what might have been expected by growth alone.

Welfarism and Politics in Tamil Nadu DMK and AIDMK share similar ideology rooted

in the thought of ‘Periyar’ E.V. Ramaswamy. Food crisis in the late 1960’s led to the end of

the Congress hegemony in Tamil Nadu: Both DMK and AIDMK learned early on the importance of social programs for electoral success.

Both parties engage in one-upmanship to extend social programs, including the adoption of a universal PDS system, a midday meal scheme in 1982, effective family planning and nutritional interventions.

Political Support Spurred Tamil Nadu’s Civil Service into Action Programs effectively implemented by Tamil

Nadu’s civil service. Collector in TN a senior officer unlike many

states; TN also have no divisional commissioner system to dilute the collectors’ power; and Secretaries possess tradition of autonomy in implementation in the state.

Karnataka lacked an entrenched welfarist ideology to push social programs: Mid-day meal scheme in the state, for example, not launched until 2002; northern Karnataka remains behind the rest of the state.

Tamil Nadu’s PDS PDS in Tamil Nadu rated as best in the country

in terms of usage, quality and access. Strong administrative monitoring; involvement

of consumer cooperatives and SHG’s; access to information; extensive network of godowns; electronic weighing, and political support for universal access to cheap rice key reasons.

Low diversion rate given extremely low prices for rice indicate efficiency of system

But annual cost high Rs. 1,500 crore annually.

Strengthening Accountability Mechanisms: Cases

Reducing Frequent Transfers in Karnataka. Report Cards in Bangalore, 1994-2004. Right to Information: Rajasthan and Delhi. Strengthening Anti-Corruption Institutions

The Central Vigilance Commission The Karnataka Lok Ayukta

Public Interest Litigation and the Courts.

Strengthening Accountability Mechanisms: Premature Transfers Karnataka reduced premature transfers

through quantitative caps, computerized counseling in education, and public reporting of transfer numbers.

New approaches might involve the creation of statutory civil services boards to restrict transfers, legal minimum tenures, and a stability index to track transfers.

Aggregate Transfers, Karnataka, 2000-05

Total Group A, B, C and D Transfers - Government of Karnataka (2000-2005)

16798

30275

34017

54333

82110

10000

20000

30000

40000

50000

60000

00-01 01-02 02-03 03-04 04-05 (April-Sept)

Year

Empl

oyee

s in

Tho

usan

ds

Strengthening Accountability Mechanisms: Report Cards Report cards prod agency heads into

action, and mobilize public pressure for change.Satisfaction with Public Services Across CRCs

4 6 9 5

25

1

14

46 45

3025

43

16 18

54

71 73

18

37

15

65

01020304050607080

BWSSB BESCOM BSNL BMP GovtHospital

BDA RTO

Agency

Perc

entg

e

1994 1999 2003

Karnataka’s Lok Ayukta: Focus on Service Delivery

Investigates corruption/maladministration; budget U.S.$1.6 million; five hundred officers; activist judge appointed in 2001

Investigations: Drug adulteration Public hospitals (absenteeism, exploitation) Transport and registration departments. Corruption in municipal government

Volume of complaints triple in one year.

Wide publicity may be the best way to check corruption when courts don’t work.

Lok Ayukta In Action

Strengthening Accountability Mechanisms: Other Lessons Access to information laws work best when

appeals processes are simple and pressure from below encourage their use.

The role of the Courts in improving delivery has been positive Need to guard against risk of supplanting administrative initiatives to reform services.

Tactics of Reform Justifying reform by invoking past traditions Dealing with employees (e.g.

accommodating potential spoilers, guaranteeing no job losses upfront, improving working conditions).

Activating constituencies that gain from reform against opponents of the process

Sequencing is critical for SuccessAll reforms were incremental in nature; the big bang approach in the rare cases where it was tried did not deliver results. Vested interests were overcome in many cases.

Sustaining Reforms Popular reforms usually survived

political transitions. Bipartisan consensus helped

sustainability. Grounding reforms in law made them

harder to reverse. Sound revenue models facilitated

sustainability.

Transplanting Reforms Not a mechanical process; reforms are often

highly context-bound. Competition between agencies, cities, and

states help spread of ideas/innovations. NGO networks facilitate transmission of

knowledge about good practices. GoI can play an important role in facilitating

cross-state/agency interactions; establishing an overarching monitoring system; and structuring incentives for reform.