SUB THEME MAXIMUM GOVERNANCE AND MINIMUM GOVERNMENT 2 PM – 5.30 PM – 16TH JANUARY, 2015 TOPIC MANAGEMENT OF GOVERNANCE OF THE GOVERNMENT 2.40 PM – 3.20 PM – 16TH JANUARY, 2015 CMA C S ADAWADKAR , PUNE COVERAGE 1 OBJECTIVES OF THE DISCUSSION 2 IMPORTANCE OF GOOD GOVERNANCE OF THE GOVERNMENT 3 MAKING A CASE FOR IMPROVING MANAGEMENT OF GOVERNANCE OF THE GOVERNMENT 4 MAJOR AREAS FOR IMPROVING THE MANAGEMENT OF GOVERNANCE 5 PERFORMANCE INDICATORS FOR MANAGEMENT 6 TAKE AWAY FOR CMA’S AND OUR INSTITUTE 2 1. OBJECTIVES OF THE DISCUSSION: OBJECTIVES OF THE DISCUSSION: 1. Highlight importance of good governance of the Government 2. Making a case for better management of governance of the Government 3. Suggest framework for tracking management of governance 4. Define role for CMA’s and our Institute in management of governance of Government in India which will help in raising visibility of profession, demonstrate our significant value add capabilities and help nation building & strengthening 2. IMPORTANCE OF GOOD GOVERNANCE OF THE GOVERNMENT THINK ABOUT THESE THREE LINES • • • In order to govern the state well and to keep its people happy and contented , wealth is essential. welfare of the people is not possible without money. Prosperity or wealth depends on ( Good governance ) of the state In order to promote prosperity of the people and stability of the state. It is essential that the state is run ‘A’ PERFECT’. WHAT IS ‘A’ ‘PERFECT’ ‘A’ - Accountability ‘P - Participatory E - Equitable and inclusive R - Responsive F - Follow the rule of law E - Effective and efficient C - Consensus oriented T’ - Transparent 3. MAKING A CASE FOR MANAGEMENT OF GOVERNANCE OF THE GOVERNMENT A CASE OF MANAGEMENT BY NUMBERS Statement by Minister: • The Government has already achieved a reduction of 11.30% in administrative and clerical staff and is actually pursuing further economies. • In view of the low pay and low morale and the fact that our staff are constantly under attack, I would like to take this opportunity to congratulate them on the vital contribution they make to the smooth running of the Government. Confidential note of Chief Secretary : • • • • • We are concerned at the increase of 7% in administrative and clerical staff. However if the data processing staff were reclassified from administrative to technical If secretarial staff were re-designated as ‘ancillary workers’ And if the base of comparison was changed from the financial to calendar year Then the figures will show a fall of 11.30% FRAMEWORK FOR GOVERNANCE IN INDIA THE CONSTITUTION OF INDIA WE, THE PEOPLE OF INDIA, having solemnly resolved to constitute India into a [SOVEREIGN SOCIALIST SECULAR DEMOCRATIC REPUBLIC] and to secure to all its citizens: JUSTICE, social, economic and political; LIBERTY of thought, expression, belief, faith and worship; EQUALITY of status and of opportunity; and to promote among them all FRATERNITY assuring the dignity of the individual and the [unity and integrity of the Nation]; DIRECTIVE PRINCIPLES OF STATE POLICY • State to secure a social order for the promotion of welfare of the people. • strive to minimize the inequalities in income, and endeavor to eliminate inequalities in status, facilities and opportunities, • direct its policy towards securing that the citizens, men and women equally, have the right to an adequate means of livelihood; • Equal justice and free legal aid. • direct its policy towards securing that the ownership and control of the material resources of the community are so distributed as best to subserve the common good; • direct its policy towards securing that the operation of the economic system does not result in the concentration of wealth and means of production to the common detriment 20 SECTORS FOR MANAGING THE GOVERNANCE OF THE GOVERNMENT 1. Agriculture and rural development 2. Health 3. Aid effectiveness 4. Infrastructure 5. Climate changes 6. Poverty 7. Economy and growth 8. Private sector 9. Education 10. Public sector 11. Energy and mining 12. Science and technology 13. Environment 14. Social development 15. External debt 16. Social protection and labor 17. Financial sector 18. Trade 19. Gender 20. Urban development Case 1 - Multiplexes - Right policy, wrong measure of success being tracked ? leads to ???? The year 2014 was a year in which we saw multiple new box office collections records being created, only to be broken by the following releases, specially Aamir Khanstarrer ‘PK’. In this report, we analyse the top grossing movies of 2014. Rank 1 2 3 4 Title PK Dhoom 3 Kick Happy new year DDLJ Budget Millions USD 13 20 16 20 0.6 BO Collection Millions USD 99 85 56 53 19 Worldwide*, Aamir Khan’s ‘PK’ has surpassed everyone’s expectations to generate a humongous Rs 615 crore, while Salman Khan ‘Kick’ comes in second place with Rs 402 crore (still way below 2013released ‘Dhoom 3′), followed by Shah Rukh Khan’s ‘Happy New Year’ with Rs 394 crore. All-Time Top Movies by U.S. Theatre Attendance Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Admission millions 225.70 194.40 161.00 156.40 130.00 128.40 126.30 120.70 120.10 118.90 117.10 107.80 100.80 100.40 98.90 96.00 94.90 89.30 88.40 84.40 82.40 80.40 79.40 78.30 Title (year) (studio) Gone With the Wind (1939) (MGM) Star Wars (Ep. IV: A New Hope) (1977) (Fox) ET: The Extra-Terrestrial (1982) (Univ) The Sound of Music (1965) (Fox) The Ten Commandments (1956) (Para) Titanic (1997) (Fox) Snow White and the Seven Dwarfs (1937) (BV) Jaws (1975) (Univ) Doctor Zhivago (1965) (MGM) The Lion King (1994) (BV) 101 Dalmatians (1961) (BV) Ben-Hur (1959) (MGM) Star Wars Ep. VI: Return of the Jedi (1983) (Fox) Star Wars Ep. V: The Empire Strikes Back (1980) (Fox) The Exorcist (1973) (WB) Star Wars Ep. I: The Phantom Menace (1999) (Fox) Raiders of the Lost Ark (1981) (Para) Mary Poppins (1964) (BV) The Sting (1973) (Univ) Fantasia (1940) (BV) The Jungle Book (1967) (BV) Jurassic Park (1993) (Univ) The Graduate (1967) (AVCO Embassy) Avatar (2009) (Fox) Budget Millions USD 3.85 11.00 10.50 8.20 13.00 200.00 BO Collection Millions USD 390.00 775.40 792.90 286.21 122.70 2,187.00 63.00 1,029.00 245.00 2,787.97 Place Price range (in Rs.) Mumbai 250-600 Delhi 300-600 Bangalore 190-380 Pune 150-350 CASE 2 – RIGHT POLICY, DEDICATION OF SCIENTISTS AND USE OF TECHNOLOGY – PRIDE OF INDIA FEW FACTS ABOUT MOM • India’s Mars mission – the Mars Orbiter Mission – or as informally known: Mangalyaan - is built with a cost of Rs. 454 crores (that is around Rs.4 per Indian, Rs. 12 per km). It is the cheapest Mars mission, ever! Cheaper than the auto fare. • India's real-life Martian adventure was costing less than the make-believe Hollywood film Gravity. • Even Bollywood sci-fi movies like Ra.One cost a good chunk of what it has taken to get Mangalyaan to Mars. MANAGEMENT – HILLARIOUS EXAMPLES ACCOUNTABILITY From: The chief Administrator To: All medical staff Mortuary of our hospital will be closed over Christmas. During the holiday, medical staff are requested to co-operate in keeping pressure off this department. PARTICIPATORY Kitchen reorganisation: Festive arrangements: Please note that Tuesday’s sweet will be served as first course on Friday and Friday’s first course will be served as main course in Thursday. The Christmas dinner will be served on New year’s eve and new year’s party will take place on boxing day. That of course, means that staff will have to bring their own lunch on January 7th. Good Friday this year will be held on Tuesday April 13th. RESPONSIVE Stethoscope requisition: Because of the current supply situation, it is not possible to issue you with a the extra stethoscopes you have applied for. We are however, in a position to supply you with longer tubes for your existing stethoscopes. Purchasing department RULE OF LAW Notwithstanding the provisions of subsection 3 of Section A of Clause 214 of the Administrative procedures Act 1842, it has been agreed that, insofar as the implementation of the statutory provision is concerned, the resolution of anomalies and uncertainties between responsible departments shall fall within the purview of the Minister for Administrative reforms. TRANSPARENCY NURSES UNIFORMS: It has become apparent that the latest consignment of nurses coats are made of a see-through material. Nurses who have been issued with these coats are requested to report to the Director of the Uniform Surveillance Centre, who will assess the nature of the problem. Under Secretary EFFECTIVE AND EFFICIENT It is clear that Cabinet committee is agreed that the new policy is an excellent plan, in principle. But in view of the doubts being expressed, it was decided to record that, after careful consideration, the considered view of the committee was that while they considered the proposal met with broad approval in principle, it was felt that some of the principles were sufficiently fundamental, in principle, and some of the consideration so complex and finally balanced in practice that in principle it was proposed that the sensible and prudent practice would be to subject the proposal to more detailed consideration with and across the relevant departments with a view to preparing and proposing a more thorough and wide ranging proposal, laying stress on the less controversial elements and giving consideration to the essential continuity of the new proposal with existing principles, to be prepared for the parliamentary consideration and public discussion on some more propitious occasion when the climate of opinion is deemed to be more amenable for consideration of the approach and the principle of the principled arguments which the proposal proposes and propounds for approval. 4. MAJOR AREAS FOR IMPROVING THE MANAGEMENT OF GOVERNANCE IN GOVERNMENT 5 ACTION POINTS 1. Setting performance measures for policy implementation 2. Increasing accountability of Bureaucracy 3. Changing the mindset of general public 4. A national nodal agency for setting and monitoring the actual performance 5. Monthly reporting and debate in electronic media MANAGING THE BUREAUCRACY • • • • • • • High IQ of civil servant is usually devoted to avoidance of error. Civil servants are posted to new jobs every three years, this may result in Having no interest in achieving success of a policy A policy of any complexity normally takes longer than 3 years to see through from start to finish. A civil servant either has to leave before its passage is completed or he arrives on the scene long after it started. This mean, you can never pin the blame for failure on any individual, the man in charge at the end will say it was started wrong and the man at the beginning will say it was finished wrong. Civil servants don’t like to become emotionally involved in success or failures of policies. They feel that policies are for ministers. Ministers or Government stand or fall by them. 5. PERFORMANCE INDICATORS FOR MANAGEMENT OF GOVERNANCE OF THE GOVERNMENT Sector No of indicators Agriculture and rural development 32 Health 114 Aid effectiveness 43 Infrastructure 62 Climate changes 76 Poverty 22 Economy and growth 274 Private sector 147 Education 109 Public sector 81 Sector No of indicators Energy and mining 18 Science and technology 15 Environment 88 Social development 29 External debt 233 Social protection and labor 114 Financial sector 67 Trade 120 Gender 136 Urban development 20 Total 1,800 Suggested indicators for tracking management of Governance of the Government YEAR ----> 2002 2010 PERFORMANCE INDICATOR India China US India China US Fertilizer consumption (kG per hectare of arable land) 100.33 383.29 112.52 179.10 579.93 122.99 Agricultural land (sq. km) 18,00,370 52,31,970 41,30,640 17,97,590 51,88,014 41,09,330 Crop production index (2004-2006 = 100) 85 91 88 125 121 105 Food production index (2004-2006 = 100) 87 89 94 124 120 110 Cereal yield (kg per hectare) 2,187 4,885 5,548 2,676 5,527 6,988 Stocks traded, total value (% of GDP) 38 23 231 62 135 204 Agriculture value added per worker (constant 2005 US$) 510 472 39,640 645 681 62,957 Electricity production (kWh MILLIONS) 5,97,293 16,54,921 40,26,399 9,59,943 42,08,128 43,54,355 Electricity production from renewable sources (kWh MIL) 68,645 2,91,325 3,48,137 1,57,088 7,92,512 4,40,669 Electric power consumption (kWh per capita) 405 1,195 13,296 641 2,944 13,395 CO2 emissions (metric tons per capita) 1.14 2.89 19.65 1.67 6.19 17.56 Population density (people per sq. km of land area) 362 137 31 405 143 34 Population in largest city (MILLIONS) 17 15 18 22 20 18 Inflation, consumer prices (annual %) 4.39 -0.77 1.59 11.99 3.31 1.64 Lending interest rate (%) 11.92 5.31 4.68 8.33 5.81 3.25 Research and development expenditure (% of GDP) 0.71 1.07 2.55 0.80 1.76 2.74 Patent applications, nonresidents 8,772 40,426 1,50,200 30,909 98,111 2,48,249 Patent applications, residents 2,693 39,806 1,84,245 8,853 2,93,066 2,41,977 Trademark applications, direct nonresident 5,930 37,221 30,944 17,805 67,838 30,742 Trademark applications, direct resident 88,190 3,21,034 1,81,693 1,72,120 9,73,460 2,36,826 Air transport, freight (million ton-km) 546 5,014 29,555 1,631 17,194 39,353 Air transport, passengers carried (MILLIONS) 18 84 598 64 266 720 Roads, total network (km) 34,26,600 17,65,222 63,83,439 45,82,439 40,08,229 65,45,326 % Change India China 79% 51% 0% -1% 48% 33% 41% 35% 22% 13% 64% 490% 26% 44% 61% 154% 129% 172% 58% 146% 46% 115% 12% 4% 29% 32% 173% -533% -30% 9% 12% 64% 252% 143% 229% 636% 200% 82% 95% 203% 199% 243% 265% 218% 34% 127% Suggested indicators for tracking management of Governance of the Government US 9% -1% 19% 16% 26% -12% 59% 8% 27% 1% -11% 8% 2% 3% -30% 7% 65% 31% -1% 30% 33% 20% 3% YEAR ----> 2002 Railways, goods transported (million ton-km) 3,33,228 15,07,817 22,02,131 Rail lines (total route-km) 63,140 59,530 1,60,704 Mobile cellular subscriptions (MILLIONS) 13 206 142 Mobile cellular subscriptions (per 100 people) 1 16 49 Telephone lines (per 100 people) 4 17 65 Internet users (per 100 people) 2 5 59 Exports of goods and services (current US$ MILLIONS) 73,453 3,65,393 10,02,500 Imports of goods and services (annual % growth) 12.00 22.57 3.67 Agriculture, value added (% of GDP) 20.70 13.74 0.98 Manufacturing, value added (current US$ MILLIONS) 72,002 4,56,722 14,23,732 Manufacturing, value added (% of GDP) 14.87 31.42 13.88 Services, etc., value added (% of GDP) 53.13 41.47 77.75 Inflation, GDP deflator (annual %) 3.72 0.60 1.53 Primary education, pupils (% female) 44.19 47.34 49.01 Mortality rate, under-5 (per 1,000 live births) 84.50 31.60 8.20 Improved water source (% of rural population with access) 78.60 73.30 96.20 Improved sanitation facilities, rural (% of rural population with access) 16.10 39.50 99.40 Life expectancy at birth, total (years) 62.95 73.07 76.84 Rural population (% of total population) 71.76 61.58 20.59 International tourism, number of arrivals MILLIONS 2.38 36.80 43.58 International tourism, number of departures MILLIONS 4.94 16.60 58.07 High-technology exports (% of manufactured exports) 6.24 23.67 31.76 6,00,548 63,974 752 62 3 8 3,75,353 15.61 18.21 2,35,390 14.80 54.64 8.98 47.78 60.20 88.30 23.00 65.69 69.07 5.78 12.99 7.18 2010 24,51,185 24,68,738 66,239 2,28,513 859 285 63 91 22 48 34 72 17,43,608 18,52,300 20.42 12.71 10.10 1.16 19,24,952 17,59,535 32.46 12.61 43.24 78.44 6.64 1.23 46.24 48.65 15.80 7.40 84.90 97.60 55.80 99.90 74.89 78.54 50.77 19.23 55.66 59.80 57.39 60.27 27.51 19.93 % Change 80% 63% 1% 11% 5686% 317% 5067% 297% -24% 31% 388% 646% 411% 377% 30% -10% -12% -27% 227% 321% -1% 3% 3% 4% 142% 1005% 8% -2% -29% -50% 12% 16% 43% 41% 4% 2% -4% -18% 142% 51% 163% 246% 15% 16% Suggested indicators for tracking management of Governance of the Government 12% 42% 101% 87% -26% 22% 85% 247% 18% 24% -9% 1% -20% -1% -10% 1% 1% 2% -7% 37% 4% -37% 6. TAKE AWAY FOR CMA’S AND OUR INSTITUTE The Institute of Cost Accountants of India (Statutory body under an Act of Parliament) should be appointed as a A national nodal agency for setting performance measures and monitoring & reporting the actual performance of the Governance of the Government (State level and Central level) NOTE: This presentation is for discussing basic principles and scope of Management of the Governance of the Government, prepared on the basis of information available and practical experience of the subject matter. It should not be used for any other purpose, or distributed , without seeking our prior written consent. The views expressed in this presentation is proprietary property of the author. Thank You! CMA Chandrashekhar Adawadkar Cell: 9225807907 Email: csadawadkar@csagrp.co.in “We owe all our knowledge, not to those who have agreed but to those who have differed”