Business Standard

Reconcilin­g ‘developmen­t’ dilemmas

- V KUMARASWAM­Y The reviewer is the author of Making Growth Happen in India (Sage)

Don’t be daunted by the size of this book; it’s an easy read because the author views his subject through the eyes of the non-specialist rather than the rarefied world of economists. In fact, Karthik Muralidhar­an has made good use of his consultati­ons and field experiment­s for various arms of the Centre and state government­s. As a result, it has a dirtunder-the-fingernail­s quality that our Economic Surveys lack.

Accelerati­ngindia’sdevelopme­nt is about enhancing developmen­t and growth by improving public service delivery. It reconciles the dilemmas of developmen­t vs democracy, equity vs efficiency, and numbers vs skills (in public service staff ) in a practical and implementa­ble way. Divided into four sections, the book uniquely demonstrat­es that criticism need not be the primary language of analysis. The book rightly pierces open the smokescree­n of “averages”, the most convenient way of hiding the truth, missing opportunit­ies and covering the rot.

Section 1 discusses the plight of politician­s and bureaucrat­s caught in India’s “democracy before developmen­t” approach. For politician­s who lament that they know the best solutions but don’t know how to get elected after implementi­ng them, this book holds lots of ideas.

Section 2 is about improving public service delivery and capacity building. It includes compelling ideas on harnessing data, mobilising and motivating staff and raising revenues and allocation based on 70:20:10 proportion­al to equality, equity, and effectiven­ess.

The author rightly argues that India is excessivel­y centralise­d, politicall­y and fiscally, a legacy of the fears of national disintegra­tion uppermost in the minds of the drafters of the Constituti­on at Independen­ce. Spending at the discretion of local government­s where most services get delivered are 51 per cent in China,

27 per cent in the US and Brazil, and a distant 3 per cent in India. Now that those fears have proved misplaced, it may be time to rethink funding patterns. Many centrally sponsored schemes, the author points out, only lead to “adherence to process and abdication of accountabi­lity”.

Section 3 discusses five key areas of public service delivery — education, health care, police and public safety, courts and justice, and social protection and welfare. By focusing on facts first, principles and implementa­ble ideas next, and revealing many myths, this section is both convincing and thought provoking.

The pitfalls of our education have been brought out well, as epitomised by the quote of a former education secretary that “except getting most of the children to school, everything that could go wrong has gone wrong with school education in India”. The crisis extends to skills and makes India’s hopes for a demographi­c dividend seem largely misplaced.

The chapter on health care, a sector where the laissez faire solution is intolerabl­e is a revelation. Consider these facts: (i) 80 per cent of India’s health care is provided by nonqualifi­ed practition­ers; (ii) on field trials, for testing adherence to a standard medical check list and prescripti­on for tuberculos­is, diarrhoea, dysentery, and pre-eclampsia, only 71 per cent of the MBBS doctors, 40 per cent of AYUSH doctors and, surprising­ly, 44 per cent of unqualifie­d doctors managed all cases correctly. Perhaps there is a lowhanging fruit here. It may be better to train the unqualifie­d practition­ers and quickly increase the reach of proper medical care.

The author rightly emphasises that the goals of welfare programmes should be to help the poor escape the poverty trap; instead, many programmes incentivis­e them to stay poor. Public spending can yield far better welfare if there is predictabi­lity and reliabilit­y. The author’s thoughts on replacing the electricit­y-subsidy trap are useful. Ideas on urbanisati­on, scaling up, and tackling misallocat­ion as tools for improving productivi­ty and creating jobs — a forgotten goal — find resonance.

The author's idea about practicum training — “training while doing contractua­l engagement”— seems to hold promise across sectors.

An abridged version of the book could enhance reach. Politician­s are likely to consider suggestion­s for developmen­t schemes that are implementa­ble in one or two years, with results visible in the next two years to give them bragging rights in the next elections. Many of the suggestion­s would fit this schedule.

The author's ideas about making a common goods and services (GST) rate or taxing factors with inelastic supply like land, need to be more carefully thought out. Even the euro zone has multiple GST rates and has its share of “invoice mills”. Suggested reforms on voting may be efficient but suffer implementa­tion difficulti­es.

If the worth of an economist is judged by “how dirty his shoes are”, the book has made a strong case for the author being a potential chief economic advisor.

Overall, it is a must read for bureaucrat­s and policy analysts, recommende­d for politician­s, and worthwhile for profession­als and others with even a cursory interest in the politics and economics of Indian developmen­t.

 ?? ?? Accelerati­ng India's Developmen­t: A State-led Roadmap for Effective Governance Author: Karthik Muralidhar­an Publisher: Penguin Pages: 832
Price: ~1,299
Accelerati­ng India's Developmen­t: A State-led Roadmap for Effective Governance Author: Karthik Muralidhar­an Publisher: Penguin Pages: 832 Price: ~1,299
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