Minimum Government, Maximum Governance: Urban Service Delivery for Inclusive Growth *P. Nagaraju Introduction India stands at a very crucial juncture today. Almost seven decades ago there was a historic mass movement under Mahatma Gandhi’s leadership due to which we attained Swaraj. Today, all of us have to be a part of another mass movement, a movement towards Swarajya. For decades, India had extraordinarily large governments while ironically the quality of governance has been quite poor. There has been more attention paid to the size of the government and not so much to its quality. Western Liberal ideas, which earlier downplayed the significance of the ‘State’ have now, started acknowledging the need to take into view the positive aspects of governance such as creating effective legal, judicial and regulatory mechanisms, ensuring transparency, evolving market-friendly forms of State intervention. The concept of regulatory mechanism can pave the way for maximum governance with minimum government. India is a developing country and it is through better urban service delivery that inclusive and sustainable socio-economic development can be achieved. Urban service delivery is the most critical component in the entire gamut of governance in a nation, and the improvement of urban service delivery is perhaps the most important aspect of good governance. Urban service delivery affects the lives of almost every citizen of a country in direct or indirect terms. It also affects the entire life cycle of a citizen right from the birth till death. The importance of improving the Public service delivery is all the more crucial in developing country like India which has to cater to a billion plus population. Inclusive growth is a concept which advances equitable opportunities for economic participants during the process of economic growth with benefits incurred by every section of society *P. Nagaraju, MA, MBA, PGDDE, PGJMC, (Ph.D), Private Secretary, SOTST – IGNOU, Maidan Garhi, New Delhi – 110068. Ph: 09013705718 email: pnr_71264@yahoo.com In democracy, the legislature is bound to protect the interest of public through public policy formulations. It becomes the duty of the State to use its countervailing and regulatory powers to prevent the growth of monopolies, curb monopolistic practices, assure quality of products, ensure fair play in the utilization of public properties, protect consumers’ and workers’ interests and maintain economic stability. These functions can be performed effectively only by an independent regulator who works on the premise of established norms and systems and derives its powers through a parliamentary legislation. The economic liberalization that gathered momentum in the 1990s and the role of the Indian government under its influence underwent transformation. It withdraws some of its roles economy, wherein state’s role in provision of services was synonymous with state ownership. The new approach makes space for public private partnerships in provision of infrastructure and services combined with extensive state regulation for safeguarding user interests. The command and control mode of governance that relied on state ownership of infrastructure services is gradually moving towards a new mode of regulatory governance where public private partnerships and private sector participation require governmental priorities to be achieved through independent regulation and the law of contract. Inclusive growth Over two decades, India has implemented wide-ranging reforms that opened up the economy, dismantled the old licensing system and introduced competition into a number of sectors that had previously been dominated by public monopolies. This decisive action has helped the Indian economy to narrow the gap in living standards with advanced economies. Supported by further reforms, convergence accelerated in the 2000s as growth averaged over 8% a year, one of the strongest performances in the world Government Government refers to the larger system by which any state is organized. This is a body that comprises a person or a group of persons who run the administration of a country. This is a means in which power is exercised. There are various forms of governments such as democracy or autocracy but this paper will remain confined to the general term of government which is commonly used in social *P. Nagaraju, MA, MBA, PGDDE, PGJMC, (Ph.D), Private Secretary, SOTST – IGNOU, Maidan Garhi, New Delhi – 110068. Ph: 09013705718 email: pnr_71264@yahoo.com sciences. In normal circumstances, a state is run by a government that has a mandate from the people to run the affairs of the country and also a term that may be of 4-6 years to serve the state. Thus there is a succession of governments in any country or the same government may be elected again for a successive term if people feel that it has done its job of running the country in a fair and close to ideal manner. Government is the means by which state policy is enforced, as well as the mechanism for determining the policy of the state. A form of government, or form of state governance, refers to the set of political systems and institutions that make up the organisation of a specific government. Governance The word governance refers to the activities of a government. In layman’s terms, it is the rules and laws made by the government that are sought to be implemented through a chosen bureaucracy which is referred to as governance. The process of governing people or a state is called governance. The discipline and practice of public administration since its evolution in the late 19th century has undergone several changes. Its reliance on the Weberian bureaucratic model of administration based on rules and regulations was to facilitate uniform and planned development in the society. It was a welcoming approach in the beginning, however, in due course of time in most of the countries it failed to meet the intended results and became less responsive and less accountable to the public and over time acquired a more authoritative character. There was a call for giving a new orientation to the discipline of public administration around 1960s to make public service more responsive, accountable and proactive. This trend gathered further momentum and global developments provided impetus to the emergence of ‘New Public Management’ (NPM) in the developed countries (notably Australia, New Zealand and UK) from the late 1970s followed by the Organization for Economic Cooperation and Development (OECD) countries. The Liberalization, Privatization and Globalization compelled the developing countries to bring changes in the governmental setting and new strategies in provision of services and to outsource certain activities. Difference between government and governance Government is the elected body of representatives headed by a person. This body has the mandate to rule or govern people. And the manner in which they use the established system and principles to *P. Nagaraju, MA, MBA, PGDDE, PGJMC, (Ph.D), Private Secretary, SOTST – IGNOU, Maidan Garhi, New Delhi – 110068. Ph: 09013705718 email: pnr_71264@yahoo.com run the affairs of the country is called governance. Governance can be good or bad depending upon the perception of the people and they may accordingly choose to retain or vote a particular government out of power. In nutshell, governance is what a government does. It is the exercise of powers that are bestowed upon the government according to set rules and regulations using a system of bureaucracy that defines governance. Government is merely an instrument for the purpose of governance. Government of any kind currently affects every human activity in many important ways. For this reason, political scientists generally argue that government should not be studied by itself; but should be studied along with anthropology, economics, history, philosophy, science, and sociology the group of people with the authority to govern a country or state; a particular ministry in office. Governance is the management and implementation of the whole set of government activities dealing with the implementation of law, regulations and decisions of the government provide services to the public especially to the marginalized people. Governance means to make public services more responsive, accountable and proactive. While many of the government’s production functions being transferred or contracted out to private parties, the governments in liberal market oriented economies dissuade from taking up new functions which can be efficiently performed by private owners and where market forces come into play. In such a set-up, instead of a chain of authority from policy to product, there should ideally be negotiated document in the form of regulation that separate policy maker from policy output. The research proved that India’s basic pillars of governance i.e. decentralization of administration and local self-governments (73rd and 74th Constitutional Amendment Acts, 1994) with ensures adequate powers to people created a better governance model in the world. Good Governance Good governance is an indeterminate term used in international development literature to describe how public institutions conduct public affairs and manage public resources. Governance is "the process of decision-making and the process by which decisions are *P. Nagaraju, MA, MBA, PGDDE, PGJMC, (Ph.D), Private Secretary, SOTST – IGNOU, Maidan Garhi, New Delhi – 110068. Ph: 09013705718 email: pnr_71264@yahoo.com implemented (or not implemented)". The term governance can apply to corporate, international, national, local governance or to the interactions between other sectors of society. The concept of "good governance" often emerges as a model to compare ineffective economies or political bodies with viable economies and political bodies. The concept centers around the responsibility of governments and governing bodies to meet the needs of the masses as opposed to select groups in society. Because the governments treated in the contemporary world as most "successful" are often liberal democratic states concentrated in Europe and the Americas, those countries' institutions often set the standards by which to compare other states' institutions when talking about governance. Because the term good governance can be focused on any one form of governance, aid organizations and the authorities of developed countries often will focus the meaning of good governance to a set of requirement that conform to the organization's agenda, making "good governance" imply many different things in many different contexts Because concepts such as civil society, decentralisation, peaceful conflict management and accountability are often used when defining the concept of good governance, the definition of good governance promotes many ideas that closely align with effective democratic governance. Not surprisingly, emphasis on good governance can sometimes be equated with promoting democratic government. e-governance PM Modi calls for Digital India to improve governance: PM Modi underlined the need for using information technology to improve governance and spread education and medical facilities. Several dimensions and factors influence the definition of e-governance or electronic governance. The word “electronic” in the term e-governance implies technology driven governance. E-governance is the application of information and communication technology (ICT) for delivering government services, exchange of information communication transactions, integration of various stand-alone systems and services between government-tocustomer (G2C), government-to-business (G2B), government-to-government (G2G) as well as back office processes and interactions within the entire government framework. Through e- *P. Nagaraju, MA, MBA, PGDDE, PGJMC, (Ph.D), Private Secretary, SOTST – IGNOU, Maidan Garhi, New Delhi – 110068. Ph: 09013705718 email: pnr_71264@yahoo.com governance, government services will be made available to citizens in a convenient, efficient and transparent manner. The three main target groups that can be distinguished in governance concepts are government, citizens and businesses/interest groups. In e-governance there are no distinct boundaries At the end of the 20th century, this post-bureaucratic paradigm of new public management was firmly embedded in many countries reflecting the outcome of the suite of reforms intended to enact a break from the traditional model of public administration underpinned by Wilson’s (1887) policy-administration dichotomy, Taylor’s (1911) scientific management and Weber’s (1946) bureaucratic model of public organization. In part, at least, NPM was a reaction to perceived weaknesses of the traditional bureaucratic paradigm of public administration (O’Flynn, 2005) and it encompassed a critique of monopolistic forms of service provision and an argument for a wider range of service providers and a more market-oriented approach to the management of public organizations (Stoker, 2006). Broadly speaking, New Public Management aims at enhancing the entrepreneurial role of public organizations with market orientation and application of management concepts in public organizations. The new public management that emerged out of Thatcherism (Britain) and Reaganism of the 1980s represents a synthesis of the public and private organizations in the provision of public services. It aims at economy, efficiency and effectiveness in the public service delivery. It staunchly advocates a basic change in the role of state in society and economy. It emphasizes on the vital role of the ‘market’ as against the ‘state’ as the key regulator of the society and economy. It involves a shift from direct provision of services by government to indirect methods like facilitating, contracting, providing information and coordinating the activities of other stake holders. The government is to steer not row, anticipate and prevent public problems, use market and quasi-market mechanisms by contracting out services and seek inter-organizational ‘partnerships’ within both the public and private sectors (Pollitt, 2002). Research question *P. Nagaraju, MA, MBA, PGDDE, PGJMC, (Ph.D), Private Secretary, SOTST – IGNOU, Maidan Garhi, New Delhi – 110068. Ph: 09013705718 email: pnr_71264@yahoo.com Urban Service Delivery to the Poor – Access to safe water, sanitation, health, security, infrastructure, transportation, livelihood and quality of life. While the problem of inadequate access to water and sanitation exists in rural and urban areas, the problem is particularly pressing in cities. With internal migration and the ‘urbanization of poverty’, cities are where an increasing the proportion of poor lives increased the unemployment and underemployment. In the last three decades, growth in urban population in developing countries including India exceeds that of rural areas three-fold. In a welfare State like India, citizens have a variety of interactions with the Government in its myriad forms – as a service provider, a regulator, as a provider of social and physical infrastructure etc. Meeting the expectations of the citizens is a challenging task for any Government. Urbanization Urbanization in India was mainly caused after independence, due to adoption of mixed system of economy by the country which gave rise to the development of private sector. Urbanization is taking place at a faster rate in India The opening of the economy in India in 1990s is witnessing an increasing growth in urbanization. This unprecedented growth of urbanization has put a severe strain on the government’s capability to cater to the basic urban infrastructure services such as housing and other utility services such as electricity etc. It is primarily due to reasons such as financial deficit, lack of technical expertise in adopting new technologies, and so on. Hence, the concept of regulatory mechanism is becoming a popular in governance. The main causes of urbanization in India are: Expansion in government services Migration of people to cities for better employment The Industrial Revolution Eleventh five year plan that aimed at urbanization for the economic development of India Economic opportunities are just one reason people move into cities Infrastructure facilities in the urban areas Growth of private sector after 1990 (Globalization effect) *P. Nagaraju, MA, MBA, PGDDE, PGJMC, (Ph.D), Private Secretary, SOTST – IGNOU, Maidan Garhi, New Delhi – 110068. Ph: 09013705718 email: pnr_71264@yahoo.com Urban Service Delivery A public service is a service which is provided by government to people living within its jurisdiction, either directly (through the public sector) or by financing provision of services. The term is associated with a social consensus (usually expressed through democratic elections) that certain services should be available to all, regardless of income. Even where public services are neither publicly provided nor publicly financed, for social and political reasons they are usually subject to regulation going beyond that applying to most economic sectors. Public service is also a course that can be studied at a college and/or university. Examples of public services are the fire brigade, police, army, and paramedics. Public services are seen as so important that for moral reasons their universal provision should be guaranteed. They may be associated with fundamental human rights (such as the right to water). A service is helping others with a specific need or want. Here, service ranges from a doctor curing an illness, to a repair person, to a food pantry. In modern, developed countries, the term public services often includes: Electricity Education Emergency services Environmental protection Fire service Gas Health care Law enforcement Military Postal service Public broadcasting Public library Public security Public transportation Public housing Social services Telecommunications *P. Nagaraju, MA, MBA, PGDDE, PGJMC, (Ph.D), Private Secretary, SOTST – IGNOU, Maidan Garhi, New Delhi – 110068. Ph: 09013705718 email: pnr_71264@yahoo.com Town planning Waste management Water supply network Public transport modes include buses, trolleybuses, trams and trains, rapid transit (metro / subways /undergrounds etc) and ferries. Public transport between cities is dominated by airlines, coaches, and intercity rail. High-speed rail networks are being developed in many parts of the world. Providing better urban public services, governments opts various methods such as (i) Nationalization of services (ii) Privatization (iii) PPP model and (iv) regulatory mechanism. Nationalization really took off following the World Wars of the first half of the twentieth century. Across Europe, because of the extreme demands on industries and the economy, central planning was required to make production maximally efficient. Many public services, especially electricity, gas and public transport are products of this era. Following the Second World War, many countries also began to implement universal health care and expanded education under the funding and guidance of the state. There are several ways to privatize public services. A free-market corporation may be established and sold to private investors, relinquishing government control altogether. Thus it becomes a private (not public) service. Another option, used in the Nordic countries, is to establish a corporation, but keep ownership or voting power essentially in the hands of the government. A 49% share did not make it a "government enterprise", but it meant that all other investors together would have to oppose the state's opinion in order to overturn the state's decisions in the shareholder's meeting. Regulated corporation can also acquire permits on the agreement that they fulfill certain public service duties. When a private corporation runs a natural monopoly, then the corporation is typically heavily regulated, to prevent abuse of monopoly power. Lastly, the government can buy the service on the free market. In many countries, medication is provided in this manner: the government reimburses part of the price of the medication. Also, bus traffic, electricity, healthcare and waste management are privatized in this way. One recent innovation, used in the UK increasingly as well as Australia and Canada is public-private partnerships. This involves giving a long lease to private consortia in return for partly funding infrastructure. A public–private partnership (PPP) is a government service or private business venture which is funded and operated through a partnership of government and one or more private sector companies. These schemes are sometimes referred to as PPP, P3 or P3. *P. Nagaraju, MA, MBA, PGDDE, PGJMC, (Ph.D), Private Secretary, SOTST – IGNOU, Maidan Garhi, New Delhi – 110068. Ph: 09013705718 email: pnr_71264@yahoo.com PPP involves a contract between a public sector authority and a private party, in which the private party provides a public service or project and assumes substantial financial, technical and operational risk in the project. In some types of PPP, the cost of using the service is borne exclusively by the users of the service and not by the taxpayer. In other types (notably the private finance initiative), capital investment is made by the private sector on the basis of a contract with government to provide agreed services and the cost of providing the service is borne wholly or in part by the government. Government contributions to a PPP may also be in kind (notably the transfer of existing assets). In projects that are aimed at creating public goods like in the infrastructure sector, the government may provide a capital subsidy in the form of a onetime grant, so as to make it more attractive to the private investors. In some other cases, the government may support the project by providing revenue subsidies, including tax breaks or by removing guaranteed annual revenues for a fixed time period. Public-Private Partnership has been hailed as the latest institutional form of co-operation between the public sector and the private sector (Savas 2000). PPP is a contractual arrangement between the government and private sector for delivery of public goods and services in which the resources required to produce the goods and services along with the accompanying risks and rewards/returns are shared on the basis of a predetermined and agreed formula. In other words, it refers to a long-term contractual partnership between the public and private sector agencies. It is specifically targeted towards financing, designing, implementing, and operating infrastructure facilities and services that were traditionally provided by the public sector. This collaborative arrangement is built around the expertise and capability of project partners. Under this agreement, the private sector participation brings in technical and managerial expertise, aims at improving operational efficiency, infuses financial resources, and introduces competitiveness. PPP is considered to be the new governance tool for enhancing efficiency in the public provision of goods and services. The private sector can be a private company, a consortium, or a NonGovernmental Organization (NGO); a foreign state-owned enterprise is also considered a private entity. The consortium often forms a ‘Special Purpose Vehicle’ (SPV). This partnership could assume many contractual forms, which progressively varies with the levels of risks, responsibility and financing for the private sector. Some of the common partnership patterns, in *P. Nagaraju, MA, MBA, PGDDE, PGJMC, (Ph.D), Private Secretary, SOTST – IGNOU, Maidan Garhi, New Delhi – 110068. Ph: 09013705718 email: pnr_71264@yahoo.com the increasing order of degrees of privatization, include Build-Operate-Transfer (BOT), BuildTransfer-Operate (BTO), Build-Own-Operate-Transfer (BOOT) and Build-Own-Operate (BOO). Regulation refers to “controlling human or social behavior by rules or regulations or alternatively a rule or order issued by an executive authority or regulatory agency of a government and having the force of law”. Regulation creates, limits, or constrains a right, creates or limits a duty, or allocates a responsibility. Regulation forms: legal restrictions promulgated by a government authority, contractual obligations that bind many parties (for example, "insurance regulations" that arise out of contracts between insurers and their insurers, self-regulation by an industry such as through a trade association, social regulation (e.g. norms), co-regulation, third-party regulation, certification, accreditation or market regulation. In its legal sense regulation can and should be distinguished from primary legislation (by Parliament or elected legislative body) on the one hand and judge-made law on the other. Regulation mandated by a state attempts to produce outcomes which might not otherwise occur, produce or prevent outcomes in different places to what might otherwise occur, or produce or prevent outcomes in different timescales than would otherwise occur. In this way, regulations can be seen as implementation artifacts of policy statements. Common examples of regulation include controls on market entries, prices, wages, development approvals, pollution effects, employment for certain people in certain industries, standards of production for certain goods, the military forces and services. The economics of imposing or removing regulations relating to markets is analyzed in regulatory economics. Regulations may create costs as well as benefits and may produce unintended reactivity effects, such as defensive practice. Efficient regulations can be defined as those where total benefits exceed total costs. There is growing interest in using regulatory policy to address broad societal concerns such as distributional equity and sustainable development. There is no room for complacency for the *P. Nagaraju, MA, MBA, PGDDE, PGJMC, (Ph.D), Private Secretary, SOTST – IGNOU, Maidan Garhi, New Delhi – 110068. Ph: 09013705718 email: pnr_71264@yahoo.com work which lies ahead to transform regulatory policy into a truly effective support for meeting public policy goals. Regulation theorists examine the ways in which different varieties of capitalism attempt to manage these instabilities. They study forms of governance in relation to changes in the way these instabilities are masked. In its most common context, regulation is an attempt to control or influence private behaviour in the desired direction by imposing costs on or proscribing undesirable behaviour. Since regulation can have important consequences for economic efficiency and private incentives, it is usually justified only under special conditions. Accordingly, there are three sets of justifications for regulatory interventions – (i) prevention of market failures, (ii) restriction or removal of anti-competitive practices, and (iii) promotion of public interest. The study of formal (legal and/or official) and informal (extra-legal and/or unofficial) regulation constitutes one of the central concerns of the sociology of law. Regulation of businesses existed in the ancient early Egyptian, Indian, Greek, and Roman civilizations. Standardized weights and measures existed to an extent in the ancient world, and gold may have operated to some degree as an international currency. In China, a national currency system existed and paper currency was invented. Sophisticated law existed in Ancient Rome. In the European Early Middle Ages, law and standardization declined with the Roman Empire, but regulation existed in the form of norms, customs, and privileges; this regulation was aided by the unified Christian identity and a sense of honor in regard to contracts. Beginning in the late 19th and 20th century, much of regulation in the United States was administered and enforced by regulatory agencies which produced their own administrative law and procedures under the authority of statutes. Legislators created these agencies to allow *P. Nagaraju, MA, MBA, PGDDE, PGJMC, (Ph.D), Private Secretary, SOTST – IGNOU, Maidan Garhi, New Delhi – 110068. Ph: 09013705718 email: pnr_71264@yahoo.com experts in the industry to focus their attention on the issue. At the federal level, one the earliest institutions was the Interstate Commerce Commission which had its roots in earlier state-based regulatory commissions and agencies. Later agencies include the Federal Trade Commission, Securities and Exchange Commission, Civil Aeronautics Board, and various other institutions. These institutions vary from industry to industry and at the federal and state level. Individual agencies do not necessarily have clear life-cycles or patterns of behavior, and they are influenced heavily by their leadership and staff as well as the organic law creating the agency. In the 1930s, lawmakers believed that unregulated business often led to injustice and inefficiency; in the 1960s and 1970s, concern shifted to regulatory capture, which led to extremely detailed laws creating the United States Environmental Protection Agency and Occupational Safety and Health Administration. Regulation may be broadly understood as an effort by the state ‘to address social risk, market failure or equity concerns through rule-based direction of social and individual action.’ Regulatory agencies deal in the area of administrative law – regulation or rule making i.e. enforcing rules and regulations, imposing supervision or over sight for the benefit of the public at large. The existence of independent regulatory agencies is justified by the complexity of certain regulatory and supervisory tasks that require expertise, the need for rapid implementation of public authority in certain sectors. Regulatory agencies are usually a part of the executive branch of the government or they have statutory authority to perform their functions with oversight from the legislative branch. Regulatory authorities are commonly set up to enforce standards and safety, or to oversee use of public goods and regulate commerce. Most developed countries have a large number of regulatory authorities with statutory powers to initiate action, start proceeding without government interference as the same pattern was followed by the developing countries including India. The Power Sector in India has come a long way. The basic legal and organizational structure is now in place. In democratic country like India, the legislature is bound to protect the interests of public through public policy formulations. It becomes the duty of the State to use its *P. Nagaraju, MA, MBA, PGDDE, PGJMC, (Ph.D), Private Secretary, SOTST – IGNOU, Maidan Garhi, New Delhi – 110068. Ph: 09013705718 email: pnr_71264@yahoo.com countervailing and regulatory powers to prevent the growth of monopolies, curb monopolistic practices, assure the quality of products, ensure fair play in the utilization of public properties, protect consumers’ interests and maintain economic stability. These functions can be performed effectively only by an independent regulator who works on the premise of established norms and systems and derives its powers through a parliamentary legislation. The regulator needs autonomy to insulate itself from external pressures so that it has demonstrable credibility. The role of the regulator should not be just to monitor the policy implementation but it also has to act as a facilitator for the healthy growth of the sector. This research paper highlights the need of improvement of access of the urban service delivery i.e. water, sanitation, electricity, infrastructure, cheap and best transportation, livelihood facilities, employment opportunities to achieve inclusive growth in India with minimum government to achieve maximum governance. Conclusion and Suggestions Providing efficient and effective urban public service delivery to citizen, Indian governments opts partially accepted NPA (New Public Administration) theory of western countries and more priority on regulatory concept. The successful regulatory model in India are TRAI for Telecom Industry, CERC for Electricity, RBI for Banking Industry, The Directorate General of Civil Aviation (DGCA) for civil aviation industry etc. While regulators in right place, the concept of PPP, e-governance and good governance can be achieved while providing better urban public services to citizen of India as well for Inclusive Growth in India equal opportunities for all in the society. Reference: Bhattacharya, Mohit, (2nd edition), New Horizons of Public Administration, Jawahar, New Delhi, 2001. Bhattacharya, Mohit, Public administration today and tomorrow, The Indian Journal of Public Administration (IJPA), Vol. XLIII, No.3, July-Sept, 1997. *P. 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