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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. 1
 US is No. 4
 Georgia is No. 8
 Sri Lanka is No. 85
 China is No. 96
 Pakistan is No. 110
 Bangladesh 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
Please 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 travel
 Staff salaries, office supplies, equipment, and
contractor services
 Tax revenues
 Grants to non governmental organizations
 Social welfare payments
 List 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
entrepreneurs
friendly
Make
education
more
meaningful
Better governance
= Growth &
Prosperity
Governance, growth & us

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Governance, growth & us

  • 2. 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)
  • 3. Governments are huge  As per Mckinsey (center of governance), on an average government is 40% of GDP.  How it functions makes a huge difference
  • 4. 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
  • 5. International Finance Corporation and World Bank study report 2014  On ease of doing business in a country  Singapore is No. 1  US is No. 4  Georgia is No. 8  Sri Lanka is No. 85  China is No. 96  Pakistan is No. 110  Bangladesh is No. 130, and India is No. 134
  • 7. The huge paradox  We are among the most inefficient governance systems in the world  Still we are growing at a healthy rate. Why & How?????
  • 8. 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.
  • 9. What we need to do to move up the ladder
  • 10. 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
  • 12. 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.
  • 13. 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.
  • 14. Now  It have details of  Elected officials charges on govt. issued credit cards  Federal agency expenditure on travel  Staff salaries, office supplies, equipment, and contractor services  Tax revenues  Grants to non governmental organizations  Social welfare payments  List of companies and individuals blacklisted for committing fraud through public controls
  • 15. 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.
  • 16. 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 $30,000 for inappropriate charging personal expenses including vacation travel.
  • 17. How it compares to RTI act  Proactive Vs. reactive  Limited coverage Vs. Comprehensive coverage  Incremental Vs. Radical
  • 19. About  Estonia is a small country  75% people on internet  90% of people have e-ID cards  One can apply for unemployment benefits  File for leave  Pay taxes (94% tax collection online)  Register new companies  Vote online (2011 – 25% votes online)
  • 20. E-ID Vs. UID  Population base is an issue.  UID to be made more powerful  It can be made e-UID  56 Crore enrolled in UID is an achievement.
  • 21. Indonesia – LAPOR (Public Participation Information System)
  • 22. How it works  Any body can send problems to the portal.  These problems are tracked and solved  AAP party started the similar initiative in N.Delhi.  Brings accountability in the system
  • 23. Georgia – One stop shop
  • 24. How it works  All problems solved at one place  250 different govt. services under one roof  Passport in 10 days ($ 59)  Passport in one hour ($ 120)  Earlier, the broker used to charge $150 for 3 day delivery of passport.
  • 25. 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
  • 26. Yes, we can do it Create More Jobs Create better infrastructure Be entrepreneurs friendly Make education more meaningful Better governance = Growth & Prosperity