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Excessive controls hamper development

BS Economy Bureau

Merely shrinking the economic role of the state by resorting to deregulation, liberalisation and privatisation is not necessarily the solution to addressing the problem of corruption, says the first national human development report.

Prevalent institutional arrangements have to be reviewed and changes made where those vested with power are also made accountable, their functioning made more transparent and subject to social audit, with a view to minimise the discretionary decisions, it says.

The report has criticised the poor quality of governance, saying excessive controls and regulation are coming in the way of improving the pace of human development.

"Issues of governance have to be addressed on a priority basis as they impinge on the success of economic reforms," the report released today says.

There is an urgent need to take a re-look at the structure, composition, functioning and the role of the civil administration in the development of the country.

"Elimination of unnecessary procedural controls and regulations that stifle entrepreneurial energy, breed corruption and affect the common man have to be priority areas of improving governance," it says.

Though a number of governments have from time to time announced "single-window clearance procedures" and "investor assistance cells", these have rarely been effective on account of inadequate co-ordination as well as fragmented and arbitrary exercise of powers of the government, vested in a number of functionaries at different levels through a complex delegation of authority.

Rationalisation of such rules, notifying them in a comprehensive and transparent manner and assigning accountability of each functionary and providing administrative and legal recourse are necessary to address this problem.

"Allocation of adequate public resources for furthering human development alone is not enough. It is equally important to use them efficiently and effectively," the report adds.

Pointing out that human attainments appeared to be better and more sustained in those parts of the country where there is social mobilisation for human development and where female literacy and empowerment encourages women to have a say in the decision-making process at the household level, the report states that the role of the state has to be conceptually repositioned.

It can neither be completely minimalist nor extremely pro-active. It has to be directed at building personal capabilities and community capacities for human development through the use of all means at its command, says the report.

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