Tuesday, 6 January 2015

NITI Aayog – an Initiative in an Institutional Reform


02 Jan 2015 (All India Radio - News Analysis)
Participants: Raguraman, former SG, Assocham, and Shushil Siha, Special correspondent, Hindu Business line

GIST:

National Institution for Transforming India (NITI) – how the new body going to transform India?
1991 – Economic reform – continued same mechanism which had at the time, it setup 1950 Planning commission – Govt. looking at ways & means of allocating resources – balancing growth & social development – planning commission had certain function; but Post 1991 – more Pvt. Sector in to 
Growth sector and as well as NGOs in to Social sector; but planning commission remained same in it structure & functioning; Last government in NDC meet – former PM – need for restructuring Planning commission;

New Govt. in the process of doing it – announced it in Independence day Eve; Re-define, Represent, functions to take care of changing reality; Restructured to function as Think-Tank instead of being a merely resource allocation; function on the Doctrine of Collaborative federalism; to work out common strategy between Centre-State, to see state to implement various program depending on their political reality & with the skill base available;

Basic different between the old & new regime is in approach – while the previous is Top-Down approach whereas the new is Bottom-Up. How this is going to help ‘Bharat’, not just India only?
Some sort of misreading about this, because earlier also with inclusive growth, there had been lot of thing bottom up as well. The issue is one of linking the Top-Down with Bottom-Up, so everywhere when we are talking about, NITI looking at the village level & Local level type of implemented, and the kind of planning to be done. Integration of those programs, may be emphasis is somewhat has been delineated; Releasing the fund – better coordination & Cooperation;

Strengthening Federal Structure? Empowering State in national Mission?

State – considering the local political situation – growth process is uneven – inclusive growth very much required to alleviate poverty – important that centre-state work together- issues related to industrial growth, manufacturing … which are very much need to weed away people from unproductive agriculture activities – their skill base can be elevated – they can improve their livelihood – it is possible only with central scheme integrated with state aspiration – state should take equal care to ensure the proper implementation of the scheme with its own genius & political aspiration;

Basic Question –was it necessary to replace Nehruvian model of planning?

From 1991 – Economic reform – relook at the question of National development – commanding heights of the government in the public sector & public investment has been replaced by Private sector & NGOs; So the government can concentrate on the key program providing Education, Health care, Basic Nutrition, … to the people rather than engaging in the Business or where the other players like private sector can deliver better;

What will happen to the on-going Five year plan (12th) which going to end in 31st March 2017? Big Question, everybody asking at?

It would go through Radical change – emphasis by the new government is to de-bottleneck the kind of things – long term vision not only with respect to Development, Growth, Social justice but also Security; in this think-tank – security issues has been included – look at other issues like – climate security, energy security, border security, internal security and kind of Naxalism

Development will also look social & other function – make the planning process holism – we may able to appreciate & integrate various interest groups - involve state government, to discuss and ensure their priorities are addressed which were in line with the National Interest;

Since 1951 to 2012, we have seen FYP or Annual Plan (china war or various other circumstances); do you think the continuation of the same system or long term kind of planning like 10years, 15 years?

Department like Atomic Energy, Space … has long term vision – we have to relook at the time frames of the FYP and Validity - depending on the new circumstance; Electoral democracy, every five year – government changes – so they have short term views – difficult for bring long term issues (might become their election issues) – Think Tank look & draw up the strategies for longer Time frame, in shorter we may have five year plan of kind & annual plan;

Two kind of strategy – a vision kind of strategy (e.g. Vision2020) and then accordingly work for short term or medium term kind of planning – it help to achieve the goal prescribed under long term vision; Dominant role played by the previous government in the resource allocation esp. at the time of Budget; NITI is a think tank, not an advisory body. Do you see any change in the allocation of resources?

Looking at the kind of implication of effective utilization of resources, Productivity of the various investment – because earlier – while involving in allocation - planning commission looking at the micro issues like PPP, Tender Documents – which was an interference in the various departments of centre- state; this can be resolved with NITI – structural change in the economy with the involvement of Pvt. Sector & NGO – can properly folded up into unitary mechanism - each state can depend on its own political compulsions; Region council proposed in a structural way (not like the existing one) – will be looking at the specific issues of the Region e.g. North East/ Western Region – not only state specific, but also Regional specific – can bring more cohesive view of the development of Region;

When we talk about 3 Tier structure – Governing council, Regional council, Organizational structure;
Governing council – chaired by PM, CM of states, Lt Gov. of UT;
Regional council – members form their states; third one Organization structure is a complete executive body;

What is the different between the new structures and earlier structure of NDC & full-fledged Executive body for planning commission? How it makes the different?

Constitution of the members – esp. people from the Academics – after looking at the progress over the term & method of working – it can be continued in same committee mode or ways by which implementation mechanism can be addressed; Premature to assess any guess; Revisiting after sometime, it can be fine-tuned to meet ever changing reality & requirement.

Always these bodies work beyond the constitution purview. Why can we bring under the 
Constitutional mechanism? Bringing under Constitutional mechanism will bring more responsiveness?


Think Tank has to be something lot of freedom, opportunity & alternative – necessarily be a web-structure where you can login or logout depending on the requirement; Requirement varies with Business, Social sector, in the point view of security; 

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