Bpag-172 e

BPAG-172
GOVERNANCE:
ISSUES AND
CHALLENGES
School of Social Sciences

Indira Gandhi National Open University
Maidan Garhi, New Delhi
EXPERT COMMITTEE
Prof. C.V. Raghavulu Prof. Ravinder Kaur Prof. Rajvir Sharma
Former Vice-Chancellor of Nagarjuna Department of Public Administration Maharaja Agrasen Institute of
University, Guntur (A.P.) Osmania University, Hyderabad Management Studies, Delhi
Prof. Ramesh K. Arora Prof. C.Venkataiah Prof. Sanjeev Kumar Mahajan
Former Professor of Public Dr. B.R. Ambedkar Open University Department of Public Administration
Administration Hyderabad Himachal Pradesh University, Shimla
Rajasthan University, Jaipur
Prof. G. Palanithurai IGNOU Faculty
Prof. O.P. Minocha Department of Political Science and Prof. Pardeep Sahni
Former Professor of Public Development Administration
Prof. E. Vayunandan
Administration Gandhigram Rural University
Indian Institute of Public Gandhigram Prof. Uma Medury
Administration, New Delhi Prof. Alka Dhameja
Prof. Ramanjit Kaur Johal
Prof. Arvind K. Sharma Department of Public Administration Prof. Dolly Mathew
Former Professor of Public Panjab University, Chandigarh Prof. Durgesh Nandini
Administration
Prof. Rajbans Singh Gill Consultants
Indian Institute of Public
Department of Public Administration Dr. Sandhya Chopra
Administration, New Delhi
Punjabi University, Patiala
Dr. A. Senthamizh Kanal
Prof. R.K. Sapru
Prof. Manjusha Sharma
Former Professor of Public CBCS (Programme Coordinators)
Department of Public Administration
Administration Prof. Dolly Mathew
Kurukshetra University, Kurukshetra
Panjab University, Chandigarh Prof. Durgesh Nandini
Prof. Lalneihzovi
Prof. Sahib Singh Bhayana
Department of Public Administration
Former Professor of Public
Mizoram Central University
Administration
Panjab University, Chandigarh Prof. Neelima Deshmukh
Prof. B. B. Goel
Administration, Rashtrasant Tukadoji
Maharaj Nagpur University
Administration
Panjab University, Chandigarh
Course Coordinator and Course Editor (Content, Format and Language): Prof. Uma Medury, School
of Social Sciences, IGNOU, New Delhi
Formatting of References: Dr. A. Senthamizh Kanal, School of Social Sciences, IGNOU, New Delhi
COURSE PREPARATION TEAM
Block Unit Writer
Block 1 Government and Governance Concepts
Uint 1 Globalisation: Role of Ms. Sanghamitra Nath, Assistant Professor, Bajkul Milani
State, Market and Civil Mahavidyalaya, Vidyasagar University (W.B.)
Society
Unit 2 Governance: Conceptual Dr. Sweta Mishra, Senior Assistant Professor, Gargi Collage,
Dimensions University of Delhi, New Delhi.
Unit 3 Governance Framework in Dr. R. Anitha, Former Faculty
India Rajiv Gandhi National Institute of Youth Development,
Siriperumbudur (Tamil Nadu)
Unit 4 Stakeholders in Dr.G. Uma. Assistant Professor
Governanc School of Gender and Development Studies, IGNOU, New
Delhi
Block 2 Governance and Development
Unit 5 Changing Dimensions of Dr. G. Uma, Assistant Professor
Development School of Gender and Development Studies, IGNOU, New
Delhi.
Unit 6 Strengthening Democracy Dr. G. Uma, Assistant Professor, School of Gender and
through Governance Development Studies, IGNOU, New Delhi.
Block 3 Governance : Emerging Perspectives
Unit 7 Governance Challenges and Dr. Rouchi Chaudhary, Assistant Professor, Dept. of Public
Changing Role of Policy and Public Administration, Central University of Jammu.
Bureaucracy
Unit 8 Information and Dr. Paul Sugandhar, Assistant Professor, Dept. of Public Policy
Communication and Public Administration, Central University of Jammu.
Technology and
Governance
Unit 9 Role of Media Ms. Daisy Sharma, Assistant Professor, University of Rajasthan.
Unit 10 Corporate Governance Dr. Senthamizh Kanal, Consultant Faculty of Public
Administration, IGNOU, New Delhi.
Unit 11 Sustainable Human Ms. Sanghamitra Nath, Assistant Professor, Bajkul Milani Maha
Development Vidyalaya, Vidyasagar University (W.B.).
Unit 12 Transparency and Dr. Sweta Mishra, Senior Assistant Professor, Gargi College,
Accountability University of Delhi.
Block 4 Local Governance
Unit 13 Decentralisation and Local Dr. Sweta Mishra, Senior Assistant Professor, Gargi College,
Governance University of Delhi.
Unit 14 Inclusive and Participative Dr. R. Anitha, Former Faculty Rajiv Gandhi National Institute of
Governance Youth Development, Siriperumbudur (Tamil Nadu).
Block 5 Good Governance Initiatives in India
Unit 15 Public Service Guarantee Dr. Sweta Mishra, Senior Assistant Professor, Gargi College,
Act, Citizen’s Charter, University of Delhi.
Right to Information,
Corporate Social
Responsibiliry
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Course Contents
Pages
Introduction 7
BLOCK 1 GOVERNMENT AND GOVERNANCE: CONCEPTS
Unit 1 Globalisation: Role of State, Market and Civil Society 13
Unit 2 Governance: Conceptual Dimensions 24
Unit 3 Governance Framework in India 37
Unit 4 Stakeholders in Governance 55
BLOCK 2 GOVERNANCE AND DEVELOPMENT
Unit 5 Changing Dimensions of Development 69
Unit 6 Strengthening Democracy through Governance 83
BLOCK 3 GOVERNANCE: EMERGING PERSPECTIVES
Unit 7 Governance Challenges and Changing Role of Bureaucracy 97
Unit 8 Information and Communication Technology and Governance 109
Unit 9 Role of Media 123
Unit 10 Corporate Governance 134
Unit 11 Sustainable Human Development 147
Unit 12 Transparency and Accountability 157
BLOCK 4 LOCAL GOVERNANCE
Unit 13 Decentralisation and Local Governance 173
Unit 14 Inclusive and Participative Governance 190
BLOCK 5 GOOD GOVERNANCE INITIATIVES IN INDIA
Unit 15 Public Service Guarantee Act, Citizen’s Charter, Right to

Information, Corporate Social Responsibility 207
Suggested Readings 221

6 Blank
COURSE INTRODUCTION
The Course entitled Governance: Issues and Challenges provides a comprehensive
view of key concerns and debates in the realm of governance. Governance not only
occupies centre stage in the development discourse but is also considered as a crucial
element to be incorporated in the development strategy. The term governance is more
than government. Its key word ‘govern’ is broad in nature. Governance comprises
intricate mechanisms, processes, structures and institutions through which citizens and
groups articulate their interests, opinions and respond to the problems. The quality of
governance of a country reflects the effectiveness of its institutions that includes executive,
legislature and judiciary, and their accountability and responsiveness towards the citizens.
Also this has a direct impact on the level of human development. This Course has 15
Units that give an overview of the various issues and challenges of governance.
BLOCK 1 GOVERNMENT AND GOVERNANCE: CONCEPTS
This Block has four units. It attempts to introduce to the learners the concepts in the
domain of governance.
Unit 1 Globalisation: Role of State, Market and Civil Society
Globalisation is a multifaceted phenomenon and has a multidisciplinary perspective.
The Unit provides a conceptual framework of globalisation. Though there is no precise
period pertaining to the genesis of globalisation, there is literature that presents an
extending structure of globalisation that evolves over certain phases which is discussed
in the unit. The different perspectives on globalisation-economic, political, socio-cultural
are analysed. The onset of globalisation has impacted the State in various ways and the
Unit examines these aspects. Globalisation has influenced the State, market and civil
society and these are highlighted in the Unit.
Unit 2 Governance: Conceptual Dimensions
Governance has become a prominent area of discussion and a part of public discourse
since the late twentieth century. The Unit attempts to provide various conceptual
dimensions of governance put forth by World Bank, OECD, UNDP, UNESCO and
so on. The concept of governance is used in several contexts as minimal State, new
public Management, good governance, socio-cybernetic system, self-organising
networks, which are analysed. The Unit discusses various forms of governance that
encompass political, economic and social. The validity of the concept of governance
has been questioned on the bases of its usefulness. The Unit provides an appraisal of
the concept of governance.
Unit 3 Governance Framework in India
The Unit introduces the learners to the operational framework of governance in India.
The various components of it including the Constitution, parliamentary system, role of
political and permanent executives and judiciary are discussed with case examples.
The role of non-state actors that encompass market and civil society is analysed. One
of the best mechanisms to measure and manage governance be it at national, state or
local levels is to assess the way it functions. There are attempts made globally to measure
governance against certain indicators. There is a detailed discussion on these in the unit.
Through case examples, the Unit provides various empirical evidences of governance
and emerging interactions and networks between multiple stakeholders and their impact
on governance practices.
7
Governance : Issues Unit 4 Stakeholders in Governance
and Challenges
A stakeholder can be a person, group or organisation who/which has an interest or
stake in any activity and has the ability to influence the outcome positively or negatively.
The process of governance involves networking with various organisations, groups and
people. The Unit examines the need and significance of stakeholders’ participation in
governance. The involvement of stakeholders takes various forms that encompass
communication, participation, consultation, representation, partnership and so on and
these are discussed in detail. The unit through certain examples brings out the role of
stakeholders that makes a dent in the governance process.
BLOCK 2 GOVERNANCE AND DEVELOPMENT
Development is a holistic concept which aims at improvement in the life of the people,
betterment of society that brings positive changes. Governance through its structures,
institutions, and processes intends to address various dimensions of development. This
Block has two units which focus on key facets of development.
Unit 5 Changing Dimensions of Development
Development is bringing about change. It is holistic that aims at overall betterment in
personal, professional and social life. The Unit provides a conceptual framework of
development. There are debates on the changing dimensions of development, means of
achieving them and the unit focuses on these aspects. There is discussion on important
theories of development in the unit. The important approaches to development which
include neo-liberalism, structuralism, interventionism, people-centered, sustainable
development and human development are analysed. There is discussion on millennium
development goals and sustainable development goals. The unit focuses on inclusive
development and ways to integrate the marginalised population in the process of
development to ensure social justice.
Unit 6 Strengthening Democracy through Governance
Democracy is the system of government under which people either directly or through
the representatives govern the country. The Unit explains the concept of democracy
and outlines its features. It examines the contribution of Indian Constitution to strengthen
democracy through governance mechanisms. In India, several initiatives have been taken
to strengthen democracy through enactment of Acts, formulation of policies and execution
of programmes. The 73rd and 74th Constitutional Amendment Acts have facilitated
democracy to percolate to the grassroots level. The unit provides a comprehensive
discussion on these aspects. It deals with Right to Education Act, 2009, Mahatma
Gandhi National Rural Employment Guarantee Act, National Rural Health Mission, as
examples to foster strengthening of democracy.
BLOCK 3 GOVERNANCE: EMERGING PERSPECTIVES
This Block brings out certain important emerging perspectives in the realm of governance.
Unit 7 Governance Challenges and Changing Role of Bureaucracy
This Unit traces the emergence of the concept of governance. New definitions of
governance have continued to proliferate in academic and policy discourse and these
are succinctly put forth in the Unit. The quality of governance assumes importance to
assess a country’s credibility in international arena. There is discussion on the indicators
that assess the country’s’ quality of governance. There are multitudes of challenges
facing governance in the twenty first century. The Unit analyses these in detail. There is
8
also a shift in the role of bureaucracy in light of emerging governance challenges which Course Introduction
is discussed in the Unit.
Unit 8 Information and Communication Technology and Governance
Information and Communication Technology( ICT) impacts the field of governance.
Through the development of ICT, existing government processes are re-engineered to
make public services effective and efficient. The Unit provides conceptual framework
of ICT and its evolutionary perspective. In India many measures were taken to support
the growth of ICT. The Unit examines the ICT initiatives including the recent ones such
as digital India, internet of things and smart cities. ICT enabled governance impacts the
way work is done in organisations. The Unit analyses phases in the ICT enabled
governance resulting in transformation in the organisational functioning. Despite significant
developments in ICT, there are key challenges in its implementation which are analysed
in the Unit.
Unit 9 Role of Media
In today’s knowledge society with unprecedented developments in ICT, media plays a
seminal role in ensuring good governance. This Unit analyses the meaning, characteristics
and types of media. It promotes good governance in several ways such as protecting
human rights, promoting rule of law, ensuring peoples participation in decision making
and so on. There is a comprehensive discussion on these aspects in the Unit.
Unit 10 Corporate Governance
Corporate governance has assumed prominence in recent years to ensure strong
governance framework for effective functioning of corporate organisations. The Unit
explains the meaning and significance of corporate governance. Though there are no
globally accepted principles of corporate governance, there are certain basic standards.
The OECD has laid down certain principles of corporate governance which are dealt
with in the Unit. There are three major types of corporate governance models namely
the Anglo Saxon, Japanese and Continental, which are analysed. The Unit provides a
trajectory of the growth of corporate governance at international and national levels.
Unit 11 Sustainable Human Development
Sustainable Human Development (SHD) focuses on processes that enlarge people’s
capabilities and choices to facilitate fulfilment of their needs. The Unit provides a
conceptual framework of sustainable development and human development. Sustainable
development is development that meets the needs of the present without compromising
the ability of future generations to meet their own needs. SHD aims at equitable
distribution rather than economic growth, regeneration of environment and promoting
empowerment and participation of people in development process. The Unit presents
a comprehensive framework of sustainable human development.
Unit 12 Transparency and Accountability
Transparency and accountability are concepts of global relevance, vital for good and
effective performance and responsible governance. The Unit provides conceptual
framework of transparency and accountability. It brings forth reasons that necessitate
transparency and accountability. A number of initiatives have been taken in India towards
this and the Unit discusses these in a comprehensive manner. These include citizens’
charters, Right to Information and social audit. The Unit puts forth the operationalisation
aspects pertaining to transparency and accountability measures.
9
Governance : Issues BLOCK 4 LOCAL GOVERNANCE
and Challenges
This Block has two Units which focus on key aspects pertaining to decentralisation and
inclusive and participative governance.
Unit 13 Decentralisation and Local Governance
Decentralisation is a reform advocated globally for better governance. The Unit gives
conceptual framework of decentralisation and highlights its importance. The different
dimensions of decentralisation are discussed in the Unit. It provides historical background
of decentralisation pattern in India. The 73rd and 74th Constitutional Amendment Acts
of 1992 have constitutionalised the panchayats and municipalities and are considered
significant measures in giving strength as well as stability to local institutions. There is
exhaustive discussion on features of these amendment acts. The local bodies at grassroots
level are faced with insurmountable task of addressing the problems of governance.
The Unit gives an appraisal of functioning of PRIs and urban local bodies.
Unit 14 Inclusive and Participative Governance
Inclusive and participative governance is essential for sustainable development. This
Unit deliberates on the functioning of democracy with examples of contemporary times
in India. In the process of advancing people’s participation, there has been a rise in
global concern to re-examine the capacity of state and non-state actors. Given the key
challenges involved in realising the diverse needs and aspirations of the people, this
Unit explores the different ways to strengthen democracy vis-à-vis inclusive and
participative governance. The learner can understand from this Unit that democracy
can become feeble and futile without the presence of formal and informal linkages for
citizens’ engagement.
BLOCK 5 GOOD GOVERNANCE INITIATIVES IN INDIA
Unit 15 Public Service Guarantee Act, Citizen’s Charter, Right to Information,
Corporate Social Responsibility
The last Unit of this Course discusses a few good governance initiatives taken in India.
Public Service Guarantee Act/ Right to Public Service ensure time bound delivery of
public services to the citizens and accountability of public officials to deliver required
services to the citizens within a stipulated time. The Unit analyses the main features of
the Act and its impact. Another initiative is citizen’s charter which is examined in the
Unit. Right to Information, another good governance initiative dealt within the Unit is an
important mechanism of accountability, transparency and public service delivery.
Corporate Social Responsibility is a governance-centric mechanism which commits
responsibility of corporates to the society. It demonstrates the social concern of
corporates.
10
BLOCK 1
GOVERNMENT AND GOVERNANCE:
CONCEPTS
12 Blank
UNIT 1 GLOBALISATION: ROLE OF STATE,
MARKET AND CIVIL SOCIETY*
Structure
1.0 Objectives
1.1 Introduction
1.2 Globalisation: Conceptual Framework
1.3 Globalisation: Genesis
1.4 Perspectives on Globalisation
1.5 Globalisation and the State
1.6 Globalisation and the Market
1.7 Globalisation and the Civil Society
1.8 Conclusion
1.9 Glossary
1.10 References
1.11 Answers to Check Your Progress Exercises
1.0 OBJECTIVES
After going through this Unit, you should be able to:
• Provide a conceptual framework of globalisation;
• Trace the genesis of globalisation;
• Examine its different perspectives; and
• Analyse the relationship between globalisation, State, market and civil society.
1.1 INTRODUCTION
The concept of globalisation has a multidisciplinary perspective. An economist looks at
it as the removal of trade barriers, promotion of foreign direct investment, entry of multi
national corporations and so on. On the other hand, sociologists consider it multi-
dimensional and to be examined in the framework of complex processes in the realm of
economics, politics, culture and technology. Globalisation is resulting in a multiplicity of
linkages and interconnections between nation-states and societies. It is also a process
by which events, decisions and activities in one part of the globe lead to significant
consequences for individuals and communities in quite distant parts of the globe.
Globalisation has influenced the State, market and civil society to a great extent. These
aspects shall be discussed in this Unit.
* Contributed by Ms.Sanghamitra Nath, Assistant Professor, Bajkul Milani Mahavidyalaya,

Vidyasagar University (W.B). 13
Government and
Governance : Concepts 1.2 GLOBALISATION: CONCEPTUAL
FRAMEWORK
In the 21st century, globalisation is a widely popular term that attracts critical appreciation
from practitioners, scholars, citizens and so on. It is a term increasingly associated with
economic, cultural, social, political, and technological changes that have reduced national
boundaries and bolstered transnational movement of goods, services and capital. It has
been held responsible for ‘Mcdonaldisation’ of food and culture, homogenisation of
consumer tastes, increasing corporate power and rising poverty, and wide spread of
liberal democratic ideas (Guttal, 2007).
Globalisation is a jumble of complex phenomena that has been perceived and defined
in more ways than one way. Helleiner (2001) viewed globalisation as a dual process
comprising shrinkage of space and time due to technological advancements in transport,
communications, and information processing and actions and decisions taken in one
part of the world impacting other parts of the world due to high speed connectivity and
compression of the world into a ‘global village’. Ojha (2002) considers globalisation as
a process of adaptation to the irreversible changes challenging authority and welfare
functions of the State and in case of developing countries, the impact is felt far beyond.
The European Commission (EC) defined globalisation in terms of processes that
increased interdependency between markets and production in different countries while
responding to the trends in trade in goods and services and flow of capital and technology.
It also meant an internationalised world economy characterised by recurrent nationally
embedded capital represented by private actors like multinational corporations with a
national base and operating under the supervision of the home country’s authorities
(Sengupta, 2001). Thompson (1999), dissatisfied with EC’s version, re-defined
globalisation as a globalised world economy represented by a novel structure made up
of disembedded economic relationships that are independent of national economies
where the principal actors are transnational corporations disembedded from national
country. In other words, globalisation referred to economic processes carried out within
the predominant neo-liberal deregulation regime and concomitant rolling back of the
sovereign State control from transnational business practices.
1.3 GLOBALISATION: GENESIS

There is no consensus on the precise period of genesis of globalisation. Nayar (1997)
is of the view that it started as a regional international market in Europe after the middle
ages. It spread during imperialism in the 16th century, became reinforced during
industrialisation, consolidated under British liberalism, gathered intellectual impetus from
American statesmen, and intensified in the hegemonic reorganisation of the world’s
economic institutions (mainly General Agreement on Tariffs and Trade/GATT, World
Trade Organisation/WTO, and the Bretton Woods system).
Robertson (1992), presented an intricate structure of globalisation extending over five
phases:
1) 1400-1750: The ‘germinal’ phase marked by the cessation of Christendom and
the advent of nationalism in Europe.
2) 1750-1875: The ‘incipient’ phase characterised by the creation of nation-state
and the beginnings of inter-nationalism and universalism in Europe.
3) 1875-1925: The ‘take off’ phase when the world came to be conceptualised as
14
one global community, global calendar, World War I, mass worldwide migration Globalisation: Role of
and inclusion of non-Europeans in the international club of nation-states. State, Market and
Civil Society
4) 1925-1969: The ‘struggle for hegemony’ phase typical of Cold War, formation of
the League of Nations and the United Nations, and emergence of the Third World.
5) 1969-1992: The ‘uncertainty’ phase described by space exploration, space
technology, and acknowledgment of global environmental problems and global
mass media.
Additionally, certain economic and political developments in the late 1980s and early
1990s acted as catalyst for the rise of globalisation. It included the collapse of USSR
and State socialism, breakdown of the Berlin Wall and triumph of western economic
liberalism, leading to restriction of economics of privatisation of State industries,
deregulation and budget cuts. The other contributing reasons have been the deregulation
of the banking system, liberalisation of trade exchange rates and investment, growth of
technology, expansion of multinational and transnational corporations. According to
Thompson (1999), “10 years from 1988 to 1998 almost all governments in the world,
regardless of ideology, downsized their activities while private sector expanded theirs,
thus gradually replacing governments as major economic players on the world
scene”(Sengupta, op.cit). The Human Development Report (1999) recorded post-
globalisation, characterised by the growth of new markets (service, financial and
consumer), new actors (multinational corporations, WTO, and international non-
governmental organisations/INGOs), regional blocks and policy coordination groups
such as G-7, G- 10, G-22 and Organisation for Economic Co-operation and
Development (OECD), new rules and norms (individualised liberalism, democracy,
human rights movements, agreement on global environment and peace and multilateral
agreements such as Intellectual Property Rights), and new quicker and inexpensive
means of communication such as internet, cellular phones, fax, computer-aided design,
and so on.
1.4 PERSPECTIVES ON GLOBALISATION

Economic Perspective
The economic perspective views modern-day globalisation as an offshoot of neo-
capitalism that permits ‘flexible accumulation’ due to advancements in information
technology and communication. It facilitates instantaneous cross-border financial flows
and coordination and hugely reduces spatial barriers (Sengupta, op.cit.). Petras (1999)
opined that the new episode in global capital expansion and accommodation was the
result of political changes and not simply technological changes, that is, the failure of
socialism in communist countries of Europe and Asia and the simultaneous ascendancy
of imperialism and unfettered capitalism.
Sklair (1994) explained globalisation in terms of ‘transnational practices’ referring to
practices that crossed State boundaries without necessarily originating at the State level.
He observed that the global capitalist system chiefly influenced and controlled
transnational practices that the global capitalist class conducted business typically from
hegemonic nation-states. Castells (1996) argued, on the contrary, there was no global
capitalist class but “an integrated, global capital network, whose movements and variable
logic ultimately determine economies and influences societies”. This global capital
network, built upon information technology, became the basis for Castell’s “network
society”.
15
Government and Socio-cultural Perspective
Governance : Concepts
The socio-cultural perspective of globalisation is best expounded by the works of
Giddens, Robertson and Waters. Giddens (1990) conceived globalisation as the product
of modernity characterised by a “time-space distanciation” process that “lifted out”
social relations from local contexts, while re-constructing them temporally and spatially
indefinitely. It was discernable through an increasing network of social relations linking
“distant localities in such a way that local happenings were shaped by events many
miles away and vice versa”. Robertson (1992) conceptualised globalisation encapsulating
dual processes of “compression of world and the intensification of consciousness of
the world as a whole”. Waters (1995) illustrated globalisation as a social process making
territorial constraints irrelevant over time and increasing awareness among people
regarding the receding relevance of geographical constraints.
Interestingly, globalisation has also been considered as a cultural fact. Waters (op.cit)
believed that globalisation actually belonged to the sphere of culture rather than
economics or politics. Waters’ radical perspective projected globalisation as a process
composed of relationships negotiated through symbols representing values, preferences
and tastes. It was not simply about relationships dealing with economic matters and
political power exchanges. It is about growing de-materialisation commodities, consumer
sovereignty as well as compressed, individualised, integrated and diffused technological
innovation.
Check Your Progress 1
Note: i) Use the space given below for your answers.
ii) Check your answers with those given at the end of the Unit.
1) What do you understand by globalisation?
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2) State the reasons for the rise of globalisation.
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3) Explain the socio-cultural perspective of globalisation.
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16
Globalisation: Role of
1.5 GLOBALISATION AND THE STATE State, Market and
Civil Society
Globalisation is as much a political fact as it is an economic fact. It is influenced by
complicated negotiations among sovereign governments, private corporations,
international institutions (United Nations agencies, World Bank, International Monetary
Fund, WTO). It is guided by neo-liberal policies that aim for capitalist expansion via
economic and strategic dominance (Guttal, op.cit.). McMichael (1995) studied the
limitations faced by States under pressure from multilateral agencies, global firms, and
global and regional free trade agreements. He found that States succumbed to
transnational forces leading to a return to colonisation, albeit, of a different type.
The globalisation effect has often been viewed as roll back of the State and the take-
over of many of its economic functions by the market. It has been argued that shrinkage
of the State is directly proportional to the enlargement of the market, and the market is
the best place for equilibrium and division of labour leading to absolute gain for all.
Thus, withering away of the State is favourable because political interferences should
not stand in the way of market expansion and market efficiency. The State has always
been at the centre-stage of societal governance. The onset of globalisation globally
brought about transformation of the State. In view of some, though it did not result in a
decline of autonomy of State, but changed its complexion from Welfare State to a
Competition State that favours deregulation and privatisation, irrespective of the local
political and administration cultures. The ‘public sphere’ and the space for citizen
involvement seem to be shrinking with the role of the State becoming corporate in
nature. There is marketisation of administration, dismantling of large bureaucratic
structures, introduction of flexible production systems, lessening of control on public
goods by the nation-state and preference for a government guided by market
phenomena. Globalisation is pushing the State towards adhering certain global standards
and as a result is undergoing a transformative phase.
State intervention in the globalisation context takes several forms. Bhaduri and Nayyar
(1996) have identified three types of interventions- functional, institutional and strategic.
Functional interventions seek to remedy market failures, institutional interventions seek
to govern the market by setting rules of games for market players, while strategic
interventions seek to guide the market.
Nevertheless, the role of the State remains indisputable to the functioning of the market.
This is because every market operates under some political authority which provides
the rules for market operation. The State lays down regulations ranging from Constitutional
and legal framework for market operations, legislation on property rights to public
investment in social and economic infrastructure. Where markets fail, State steps in for
providing public goods such as education, health, and the transportation network.
Interestingly, economic reforms are initiated by the State to make more room for market,
but strengthen its authority in turn. Markets are influenced by the internal circumstances
and also by the forces in the State. A strong State that enhances the performance of
market players, balancing the interests of market as well as other public institutions is
imperative.
1.6 GLOBALISATION AND THE MARKET

Globalisation enlarges both space and scope for markets while shrinking the role of the
sovereign State. It integrates markets worldwide and shapes the behaviour of economic
agents in favour of international markets. Thus, it instills a sense of “the laws of motion
of the global market”. The market is organised on the basis of principles of demand and
17
Government and supply, competition, and self-regulation. The market operations are determined by profit
Governance : Concepts motive which defines allocation of resources among the various economic activities.
The efficiency of the market system tests the survival potential of firms as well as potential
for innovation in production and distribution. It is also argued that efficiency contributes
to “the absolute welfare of society, since everyone gains from it, at least over the long-
term, even if not in the same measure”. Globalisation favours limited government role,
that it should do less, reduce or relinquish its previous overburdening responsibilities,
privatise public services or its delivery and reform its operations in accordance with
market concepts of competition and efficiency. These beliefs in ‘government by the
market’ rest upon the premise that the market system is a better way of satisfying
human wants and aspirations than government.
The global market is better described as a place beyond geo-political borders
transcending control of nation-states. It is an outcome of removal of national barriers to
external trade and finance, deregulation of economy, export-driven economic growth,
elimination of controls on transnational mobility of finance, capital, expansion of portfolio
capital, privatisation, and reorganisation of local and national economies and expediting
free-market capitalism. It is fuelled mainly by whole-scale liberalisation, deregulation,
and privatisation in commerce and production as well as outsourcing selected production
and services to economise operational costs and earn optimal revenue.
The 1980s have been highlighted as the period of emergence of a truly global market in
conjunction with globalisation. The existence of a global market erased domestic
boundaries and integrated national financial markets. This historic development could
be possible only with the collapse of socialist governments of Central and Eastern
Europe that terminated command economies. This made way for capitalism to spread
worldwide and tilt nation-states and national ideology in its favour. The success of
capitalism led to the mobility of capital in terms of scope, speed and volume, on one
hand, and increase in social, economic and political power of capital, on the other.
Globalisation required opening up of markets- it demanded countries to embrace
economic liberalism. Markets, in general function on rational self-interest and are powerful
entities directing distribution of income, wealth, and power, and cause proliferation of
inequities.
Globalisation has resulted in
 Greater freedom of choice for individuals to buy, sell, invest, obtaining inputs from
the market economy.
 Opportunities to diversify risks and invest resources where returns are the highest.
 Higher income to those employed in jobs producing goods and services for
international market.
 Inward transfer of technology and know-how (www.ormond.html).
1.7 GLOBALISATION AND THE CIVIL SOCIETY

The reality of globalisation is unmistakable as it touches every aspect of our lives be it
economic, political, cultural or environmental. It is a compelling force driven by
multinational or transnational corporations or global companies, through high speed
mass communication, subverting and limiting powers of the nation-state as well as
subjugating individuals to unidentifiable and remote sites of control. For example, the
transnational corporations gain greater power allying with multinational banks (World
18 Bank and International Monetary Fund) making finance, credit, and other resources
readily available to expand their profits and power. As a result, globalisation abets with Globalisation: Role of
the rich to make them richer at the cost of the poor becoming poorer. It also contributes State, Market and
Civil Society
to environmental pollution of land, air, and water, and concomitant cultural degradation
particularly in developing and underdeveloped parts of the world. Civil societies emerge
in this context to express and protect themselves from “influences of remote forces
beyond, at least, their “palpable reach” and “encroachments” (Roy, 1995).
The widely accepted definition of ‘civil society’ refers to the domain lying between
economy and State, and made up of multiple spheres including intimate institutions
(family), associations (voluntary associations), social movements and forms of public
communications (Angi, 2005). Civil society, theoretically far removed from the State,
in reality, operates under formal rules framed by the highest authority – the State. Kaldor
(2003) observed the evolution of civil society into a generic medium by way of which
“citizens negotiate a social contract with overlapping and multiple centers of power
rather than being simply juxtaposing the State”. Diamond’s (1994) institutional approach
categorised civil society into economic organisations (productive and commercial
associations), cultural organisations (religious, ethnic, communal), informal and
educational organisations (production and dissemination of knowledge, ideas, news,
information), interest-based organisations (goal of winning common functional or material
interests of members), developmental organisations (institutions combing individual
resources to improve infrastructure and quality of life of community), political
organisations (parties, social movements, civic groups), and social and emotional
institutions (families). Civil society is the collective of those social organisations that
enjoy autonomy from the State, and have as an important goal, among others, to seek
to influence the State on behalf of their members. Civil society organisations are networks
of groups formed for pursuing special interests and include all local and external financial,
private, charitable, social service, developmental and professional organisations (Blair,
1993).
Civil society, very often has been treated akin to non-governmental organisations
(NGOs). NGOs are a part of civil society receiving greatest visibility as they engage in
environmental and social issues. An important phenomenon in the context of NGOs has
been the genesis of ‘Global Civil Society’ (GCS). It may be understood as the
convergence of local NGOs at the global level agitating in the pursuit of common goals
and “overcome the spatial separations, by engaging in aggregated networks expanded
over wide geographical areas”(Angi, op.cit.). Keane (2003) defined GCS as “the vast
assemblage of groups operating across borders and beyond the reach of governments”.
GCS comprising a heterogeneous mix of non-profits, businesses, social movements,
tourists, academics, artists, cultural performers, ethnic and linguistic groups, and more,
Keane described it as a developing and inclusive “society of societies” governed by
rules and norms of conduct. The State and market are generally considered as sources
of remote decisions that might not have much of an impact on the lives of community,
while the civil society provides a civic identity, which is distinct, belongs to various
groups of citizens and acts as a mediating link between the State and market.
Whether it is protection of environment or human rights, support for education or
promotion of women, ethnic or religious, globalisation provides cause for growth of
GCS. These, fighting for aforementioned causes, represent what Falk (1995, 1998)
called “globalisation from below”. It is a process involving transnational democratic
forces to counter transnational market forces or “globalisation from above”. Also termed
as “grassroots globalisation” by Appadurai (2000), it aimed to preclude or remedy
inequalities created by globalisation. GCS, therefore, constituted “deliberative agents”
in global governance (Brasset and Smith, 2010). Particularly, Bohman (2010) suggested 19
Government and GCS should adopt three mandatory attributes of public spheres: (1) participate in public
Governance : Concepts discussions and be open to diverse reasons, (2) remain committed to the ideals of
freedom and equality, and (3) reach out to an indefinite audience, besides being
“deliberative agents”.
1) Discuss the changing nature of State.
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2) Bring out the impact of globalisation on market.
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3) Explain the concept of civil society.
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1.8 CONCLUSION
Globalisation is a multifaceted phenomena emerging particularly from economic
internationalisation and broadening of free market relations. The advocates of globalisation
promise that integration of local and national economies into a global economy without
protectionism will generate greater income resources, promote increased access to
knowledge and technology, and further enhance consumption power, living standards,
and political ideals. The critics of globalisation, however, argue that the promise is a
misconception because it damages local and national economies, communities, and
environment as well as impoverishes poor and vulnerable (Guttal, op.cit.).
Globalisation has impacted economies globally in varied ways. It has brought in
liberalisation, privatisation and deregulation. No doubt it has resulted in market volatility,
20
protectionism for corporations affecting the small and medium producers to counteract
the ill effects. It also gave rise to mass mobilisation leading to transnational movements Globalisation: Role of
and protests, towards creation of a global civil society. This Unit has provided you with State, Market and
Civil Society
a basic understanding of these aspects.
1.9 GLOSSARY
Brettonwoods Institutions : The Brettonwoods Institutions are the World
Bank and the International Monetary Fund. They
were set up in July 1944 at a meeting of 43
Countries in Brettonwoods, New Hampshire,
USA. Their aim was to help rebuild the sheltered
post- war economy and to promote international
economic cooperation.
General Agreement on Tariffs : The General Agreement on Tariffs and Trade was
and Trade (GATT) originally negotiated in Geneva, Switzerland in
1947 to increase international trade by reducing
tariff and other trade barriers. GATT provides a
code of conduct for international commerce and
provides a framework for periodic multi lateral
trade negotiations on trade liberalisation and
expansion.
Intellectual Property : It is a category of property that refers to intangible
creations of human intellect. It includes
copyrights, patents, trademarks, trade secrets
etc.
Mcdonaldisation : It is the process by which a society takes on the
characteristics of a fast-food restaurant. The term
was coined by the Sociologist George Ritzer.
Four primary components of this are: efficiency,
predictability, calculability and control.
Word Trade Organisation : It is a global international organisation dealing with
(WTO) the rules of trade between nations. Its goal is to
help producers of goods and service, exporters
and importers conduct their business. Its
headquarters is located at Geneva, Switzerland.
1.10 REFERENCES
Angi, D. (2005). Beyond the Boundaries of Nation-State: Images of Global Civil Society.
Polish Sociological Review. 149: 15-29.
Brassett, J. & Smith, W. (2010). Deliberation and global society: agency, arena, affect.
Review of International Studies. 36: 413-430.
Castells M. (1996). The Rise of the Network Society (The Information Age: Economy,
Society and Culture, Vol.1). Malden, MA: Blackwell Publishers Inc.
Chandhoke, N. (2002). The Limits of Global Society. In M.Glaus (Ed.). Global Civil
Society. Oxford: Oxford University Press.
21
Government and Diamond, L. (1994). Toward Democratic Consolidation. Journal of Democracy. 5(3):
Governance : Concepts 4-17.
Falk, R. (1998). Global Civil Society: Perspectives, Initiatives, Movements. Journal of
Oxford Development Studies. 26(1):99-110.
Giddens, A. (1990). The Consequences of Modernity. Polity Press: Cambridge.
Guttal, S. (2007). Globalisation. Development in Practice. 17(4/5): 523-531.
Helleiner, G. K. (2001). Markets, Politics, and Globalization: Can the Global Economy
Be Civilized? Global Governance. 7(3): 243-263.
Kaldor, M. (2003). The idea of Global Civil Society. International affairs. 79(3):
583-593.
Keane, J. (2003). Global Civil Society? (Contemporary Political Theory). Cambridge:
Cambridge University press.
Nayar, B, Raj. (1997). Globalisation, Nationalism and Economic Policy Reform.
Economic and Political weekly. 32(30): 93-104.
Ojha, A.K. (2002). Globalisation and Liberalisation Prospects of New World Order.
Third Concept- An International Journal of Ideas. 13.
Petras, J. (1999). Globalisation: A Socialist Perspective. Economic and Political
Weekly. 34(08).
Pieterse, J.N. (2001). Globalization as Hybridization. In M.G.Durham & D.M.Kellner
(Eds.), Media and Cultural Studies: Key Works. Blackwell Publishing Ltd: USA.
Roy, A. (1995). Civil Society and Nation State: In Context of Globalisation. Economic
and Political Weekly. 36(33): 3137-3143.
Sengupta. (2001). Conceptualising Globalisation: Issues and Implications. Economic
and Political Weekly. 36(33).
Thompson, G. (1999). Introduction: Situating Globalisation. International Social
Science Journal. 160.
Waters, M. (1995). Globalisation. Routledge: London and New York.
1.11 ANSWERS TO CHECK YOUR PROGRESS

EXERCISES
1) Your answer should include the following points:
 Globalisation is a multidimensional phenomenon associated with economic,
social, cultural, political and technological changes that have diminished national
boundaries and given impetus to transnational movement of goods, services
and capital.
 It has ushered in globally new-liberal deregulation regime and roll back of
State.
 It is also associated with processes that increased interdependency between
markets and production in different countries.
22
2) Your answer should include the following points: Globalisation: Role of
State, Market and
 Economic and political developments in late 1980s and early 1990s acted as Civil Society
catalyst for the rise of globalisation.
 Collapse of USSR and Socialism.
 Rise of neo-liberal thinking.
 Expansion of multinational and transnational corporations.
 Deregulation of banking system.
 Liberalisation of trade, exchange rates and investment.
 The socio-cultural perspective of globalisation is expounded by works of
Giddens, Robertson and Waters.
 Globalisation is looked as social process.
 It is propounded as process composed of relationships negotiated through
symbols representing values, preferences and tastes.
 The change in complexion of State from Welfare State to Competition State.
 The nature of State is becoming corporate.
 The State moving towards adhering certain global standards and creating
space for citizen involvement.
 State interventions can be functional, institutional and strategic.
 Presence of strong State that enhances the performance of market players
balancing the interests of market as well as other public institutions.
 Globalisation enhances the space and scope for markets.
 Market operations are defined by profit motive.
 Market is organised on the basis of demand and supply competition and
self-regulation.
 Market functions on self-interest, directing the distribution of income, wealth
and power and perpetuating inequities.
 Civil society refers to the domain lying between economy and State, comprising
multiple spheres including family, associations, social movements, networks
of groups, collective of social organisations and so on.
 There are global civil societies which have been given impetus by globalisation.
These work towards protection of environment, human rights, support for
education etc.
 Civil society is a heterogonous group comprising non-profit organisations,
businesses, social groups, ethnic and linguistic groups etc. 23
UNIT 2 GOVERNANCE: CONCEPTUAL
DIMENSIONS*
Structure
2.0 Objectives
2.1 Introduction
2.2 Governance: Conceptual Dimensions
2.3 Governance: Contextual Uses
2.4 Forms of Governance
2.5 Concept of Governance: An Appraisal
2.6 Conclusion
2.7 Glossary
2.8 References
2.0 OBJECTIVES
After reading this Unit, you should be able to:
• Explain the concept of governance;
• Examine its contextual uses;
• Discuss the forms of governance; and
• Make an appraisal of the concept of governance.
2.1 INTRODUCTION
Governance has become a prominent area of discussion and a part of public discourse
since the late twentieth century. Governance now not only occupies centre stage in the
development discourse but is also considered as the crucial element to be incorporated
in the development strategy.
Public administration as a major constituent of State has always been an instrument to
accomplish welfare goals and objectives. Over the past three decades, the impact of
globalisation, rise of market forces, increase in expectations of citizens, have widened
the process of governing and has also ushered in a major transformation in the role of
the State. The Welfare State has been transformed to a Corporatist State. From a
doer, it has become a facilitator and a regulator. Instead of government being the sole
agency to discharge the tasks of governance, need for participative and consultative
modes of governing has become strong.This along with the gradual blurring of
distinction between public and private sectors has given rise to the concept of governance
and over time gained a wider connotation. In this Unit, we shall attempt to examine the
concept of governance, its contextual uses, and forms. An appraisal of the concept of
governance shall also be made.
24 * Contributed by Dr. Sweta Mishra, Senior Assistant Professor, Gargi College, University of Delhi
Governance:
2.2 GOVERNANCE: CONCEPTUAL DIMENSIONS Conceptual
Dimensions
The concept of governance has been in use at least since the fourteenth century. During
that period it implied ‘seat of government’. It started with a range of meanings, from the
act or manner of governing its office or power, which made it synonymous with
government, to being virtuous or wise in one’s general behaviour. The term has been
derived from the Greek word ‘Kybernan’, which means to steer and to pilot or be at
the helm of things.
Governance, in simple terms, means “the process of decision-making and the process
by which decisions are implemented (or not implemented)”. The Concise Oxford
Dictionary defines it as an “act or manner of governing” and “the office or function of
governing”. Governance has also become a term used to describe a particular set of
changes. It signifies a set of elusive but potentially deeply significant shifts in the way in
which government seeks to govern (Pierre and Peters, 2000).
Governance refers to a process of exercise of authority to govern people or regulate
public affairs. In simplest terms, governance relates to the effective management of the
affairs of a country at all levels, guaranteeing its territorial integrity, and securing the
safety and overall welfare of the people. It means management of social and economic
resources for the development of the country. Governance refers to all processes of
governing whether done by the government, market or civil society that involves
interaction and decision making amongst all the stakeholders.
Harlan Cleveland used the word ‘governance’ for the first time in the mid-1970s as an
alternative to public administration. He was of the opinion that what people want is
‘less government and more governance’. He used this in the sense of blurring of distinction
between public and private organisations and multi-organisational systems (Medury,
2010). He identified governance with a cluster of concepts. It implied not only hierarchical
forms of organisation, but also networks within and outside organisation bringing in
consensual and consultative process.
The term governance in recent times has assumed significance since 1989 with its
advocacy by the World Bank which reinvented it in a different context as a new approach
to development especially in case of developing countries. It meant the exercise of
political power to manage nations’ affairs (World Bank, 1989).
Although it is too simple to define governance, many interrelated and interdependent
factors come into interplay, complicating the process of defining the term. Nevertheless,
if one were to simplify the definition of governance, it pertains to the coordination of all
public and private efforts by the government in the process of development by utilising
all the available resources within the country. In other words, governance includes formal
as well as informal organisations in the process of development.
In conceptualisation, divergent views either represent governance as a narrowly defined
phenomenon in the form of activities of only the executive branch of the State i.e., the
government or as one where the State comprising the legislature, executive and the
judiciary are the parts that constitute the whole without the positive, synergistic relation
with the private sector and civil society. Governance introduces the private sector, the
civil society including the local government system as participants in the process of
governing and their direct involvement in areas hitherto kept exclusively in the public
domain.
Governance can be interpreted as the undertaking of activities, management of resources,
organisation of citizens, communities, local government bodies, business organisations 25
Government and and the branches of the State (legislature, executive and judiciary) through social, political,
Governance : Concepts administrative and economic structures that meet the daily needs of the people and
ensure sustainable development. The government may through the conventional
constituents of State namely, parliament, judiciary and executive, encompass this diverse
area of governance at some particular point of time. Changes often take place
subsequently, that make a combination of these constituents of the State and other
actors, as collaborative partners in governance with clear cut and sometimes overlapping
jurisdictions.
Earlier the term governance was used in a broader sense of government, which is not
appropriate in present times. Governance means more than maintaining law and order.
The concept of governance is more encompassing and wider than that of the government
which conventionally refers to the formal institutional structure and the location of
authoritative decision making in the modern State. In other words, we can say that it is
a participative system in which those who are called upon to govern on behalf of the
people are motivated with a will to giving their best, serving and doing good to the
people, solving their problems and making their lives more livable, satisfying and
enjoyable.
The concept of governance received added importance in the late eighties and early
nineties in the hands of multilateral and bilateral aid-giving agencies. These agencies
used it as a pre-condition for providing aid especially to the developing countries for
carrying out economic and political reforms. In this context, in 1989, the World Bank
gave the lead followed by OECD, UNDP, and the UNESCO.
World Bank
The first official usage of the contemporary nation of governance was put forth in 1989
by the World Bank. It was the first international organisation to use the term governance
and defined it in the following words:
“… the manner in which power is exercised in the management of a country’s economic
and social resources by government. Governance, in general, has three distinct aspects
(a) the form of a political regime (parliamentary or presidential, military or civilian, and
authoritarian or democratic); (b) the processes by which authority is exercised in the
management of a country’s economic and social resources; and (c) the capacity of
governments to design, formulate, and implement policies, and, in general, to discharge
governmental functions. The terms usually describe conditions in a country as a whole”.
Organisation for Economic Cooperation and Development
The concept of governance denotes “the use of political authority and exercise of control
in a society in relation to the management of its resources for social and economic
development”. The Organisation for Economic Cooperation and Development (OECD)
lays down the key components of governance as follows:
a) Legitimacy of government;
b) Accountability of political and official elements of government;
c) Competence of governments to make policy and deliver services; and
d) Respect for human rights and the rule of law.
United Nations Development Programme (UNDP)
The United Nations Development Programme (1997) has viewed governance as “the
26
exercise of economic, political and administrative authority to manage a nation’s affairs Governance:
at all levels. It is the complex mechanisms, processes, and institutions through which Conceptual
Dimensions
citizens and groups articulate their interests, exercise their legal rights and obligations,
and mediate their differences”. UNDP has laid down the following characteristics of
good governance viz., participation, rule of law, transparency, responsiveness, consensus
orientation, equity, effectiveness and efficiency, accountability and strategic vision.
United Nations Educational, Scientific and Cultural Organisation (UNESCO)
UNESCO (1997) defines governance as … “a process whereby citizens’ needs and
interests are articulated for the positive social and economic development of the entire
society and in the light of a perceived common good. Governance means more than
government: it refers to a political process that encompasses the whole society and
contributes to the making of citizens, active contributors to the social contract that
binds them together. Their sense of political efficacy is one of the indicators of democratic
governance”.
2.3 GOVERNANCE: CONTEXTUAL USES

In the preceding sections, we have acquainted you with the concept of governance and
its several interpretations. The concept of governance is used in several contexts. Rhodes
(1997) has highlighted the following:
Governance as the Minimal State
In this sense, governance redefines the extent and form of public intervention, the use of
markets and quasi-markets to deliver ‘public’ services. In U.K. the size of government
was reduced due to privatisation and reduction in the size of civil service. However,
public expenditure remained roughly constant as a proportion of Gross Domestic Product
(GDP); public employment fell only slightly in local government and the National Health
Service; and regulation replaced ownership as the preferred form of public intervention,
with the government creating ten major regulatory bodies.
Governance as Corporate Governance
This relates to governing of public and private enterprises. In this context, governance
refers to “the system by which organisations are directed and controlled” (Cadbury
Report, 1992). Thus, the role of governance is not only concerned with running the
business of the company, per se, but also with giving overall directions to the enterprise,
with overseeing and controlling the executive actions of management and ensuring
adequate accountability and regulatory framework.
Governance as New Public Management (NPM)
In its third use, governance is related to the New Public Management which aims at
making public administration market-based, committed to the three prime goals of
Efficiency, Economy and Effectiveness (3 E’s). NPM has emerged as a major
manifestation of Competition State approach. This new paradigm, which gained wider
usage, with varied labels – reinventing, re-engineering, quality management and
performance management, focuses basically on changes in the structure and processes
of government (Medury, 2010). New Public Management, initially, had two meanings.
In its first meaning it means managerialism, i.e., introducing private sector management
methods to the public sector. In its second sense, it refers to new institutional economics,
i.e., introducing market competition into public service provision.
New Public Management is relevant to the discussion of governance because steering 27
Government and is central to the analysis of public management and it is a synonym for governance.
Governance : Concepts Osborne and Gaebler, (1992) for example, distinguish between ‘policy decisions
(steering) and service delivery (rowing)’. They argue that bureaucracy is not capable of
delivering services. Hence, they propose entrepreneurial government based on certain
principles, viz., competition between service providers, empowering citizens, focusing
on outcomes, decentralisation of authority, catalysing all sectors, putting energies into
earning money, missions and goals, etc.
New Public Management and entrepreneurial government share a concern with
competition, markets, customers, and outcomes. Governance calls for more steering,
providing impetus to other forces, rather than rowing. The emphasis has thus been
placed on ‘enabling’ rather than ‘providing’.
Governance as ‘Good Governance’
This use of governance became popular after the World Bank (1992) popularised the
phrase ‘good governance’. For the World Bank, governance is ‘the exercise of political
power to manage a nation’s affairs’. The bank came to realise that good governance is
central to creating and sustaining an environment, which fosters strong and equitable
development, and it is an essential complement to sound economic policies.
Good governance is an attempt to widen the scope of public administration by going
beyond formal government. In other words, it is a broad reform strategy to make
government more open, responsive, accountable and democratic; regulate the private
sector and strengthen the institutions of civil society. It is the qualitative dimension of
governance. It is a combination of the efficiency concerns of public management and
the accountability concerns of governance. It underlines the basic features of good
governance as (Medury, op.cit.):
i) Voice and accountability which includes civil liberties and political stability;
ii) Effectiveness of the government, which includes the quality of policy making and
public service delivery;
iii) The quality of the regulatory framework;
iv) The rule of law which includes protection of property rights;
v) Independence of judiciary; and
vi) Curbs on corruption.
The good governance agenda advocates freedom of information, a strong legal system
and efficient administration to help the underprivileged sections’ claim to equality; but
these have been most successful when backed up by strong political mobilisation through
social movements or political parties with a clear-cut mission. Good governance means
bringing about goodness in all the three sectors: government, civil society and corporate
world including transnational corporations. Good governance is a tryst with trust, a
commitment of the people, for the people, a social contract for the greatest good, the
collective conscience of the community (Mishra, 2003).
The basic features of good governance as conceptualised by policy makers, researchers
and international agencies can be summarised in the word “SMART”, each letter of
which is a prerequisite of good governance. SMART stands for simple, moral,
accountable, responsive and transparent. In other words, it indicates the qualitative
dimension of governance rather than enhancing the quality of governance.
28
Governance as a Socio-cybernetic System Governance:
Conceptual
Governance, according to Kooiman (1993), is the pattern or structure that emerges in Dimensions
a socio-political system as a ‘common’ result or outcome of the interacting intervention
efforts of all involved actors. This pattern cannot be reduced to one actor or group of
actors in particular.
In other words, policy outcomes are not the product of actions by central government.
The government may pass a law but subsequently it interacts with local government,
health authorities, the voluntary sector, the private sector and, in turn, they interact with
one another.
The socio-cybernetic approach views governance as the result of interactive social-
political forms of governing. The approach highlights the limits to governing by a central
actor and claims there is no longer a single sovereign authority. Rather, there is a
multiplicity of actors specific to each policy area; interdependence among these social-
political-administrative actors; shared goals; blurred boundaries between public, private
and voluntary sectors; and multiplying and new forms of action, intervention and control
(Rhodes, op.cit).
Governance as Self-organising Networks
This use sees governance as a broader term than government, with services provided
by a combination of government, the private sector and the voluntary agencies. For
example, the British government creates agencies, bypasses local government, uses
special-purpose bodies to deliver services, and encourages public-private partnerships;
so, ‘networks’ become increasingly prominent among British governing structures.
This model is driven by networks and collaborative government rather than hierarchies.
It lays stress on horizontal linkages among the three actors i.e., the State, market and
civil society. Networks are a widespread form of social coordination and managing
inter-organisational links and are just as important for public as well as private sector
management.
From the above discussion, it becomes clear that governance has too many meanings
to be useful. As such, it becomes difficult to provide a single definition of governance.
According to Rhodes (op.cit.), it incorporates most notably the minimal State, a socio-
cybernetic system and self-organising networks. On the basis of above uses, he
summarises the characteristics of governance as:
a) Interdependence between organisations. Governance is broader than government,
covering non-state actors; changing the boundaries of the State meant the boundaries
between public, private and voluntary sectors became shifting and opaque.
b) Continuing interactions between network members, caused by the need to exchange
resources and negotiate shared purposes.
c) Game-like interactions, rooted in trust and regulated by rules of the game negotiated
and agreed by network participants.
d) A significant degree of autonomy from the State. Networks are not accountable to
the State; they are self-organising. Although the State does not occupy a sovereign
position, it can indirectly and imperfectly steer networks.
29
Government and Check Your Progress 1
1) Explain the concept of governance.
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2) Discuss the concept of New Public Management.
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3) List the characteristics of good governance.
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2.4 FORMS OF GOVERNANCE

In the preceding sections, we have examined the different interpretations and conceptual
uses of governance. Similarly, there are various forms of governance more important
among which are political, economic and social.
Political
Due to the global political and economic shifts, the nation states’ capacity to govern has
been limited. There is a general feeling that there is a ‘hollowing out’ of the State. This
has resulted in shifting of the power outwards to international financial markets, to
global companies to be able to move capital and other resources from one site of
investment to another, and to supra-national entities such as the World Bank or European
Union. Power has also percolated downwards to the sub-national level of regions and
cities. As a result of these changes, a series of reforms have taken place resulting in
reduction in the size of the machinery of government and its fragmentation.
New strategies based on informal influence, enabling and regulation have grown in
importance. However, this does not necessarily mean a decline in the role of the State.
30
The forms of control through hierarchical, institutional channels continue alongside new Governance:
forms of governance. Conceptual
Dimensions
Economic
A central theme in the governance literature is the idea that markets, hierarchies and
networks form alternative strategies of coordination. Different modes of governance,
including those based on markets, hierarchies and network, are likely to coexist, with
different institutional combinations in specific nations, but with networks becoming
increasingly significant (Newman, 2001).
The neo-liberal political/economic regime of the 1980s and 1990s partly dismantled
the conception of the State as a direct service provider. The introduction of market
mechanisms has led to a more fragmented and dispersed pattern of service delivery
and regulation that required new forms of coordination. As a result of privatisation,
contracting out, quasi-markets, the removal of functions from local authorities, the
separation between the policy and delivery functions in the civil service with the setting
up of executive agencies, governments had to develop new forms of control. These
types of control included framework documents, contracts, targets, performance
indicators, service standards, contracts and customer charters (ibid.).
Even at the local level similar changes took place. Network based patterns of interaction
had become increasingly important, leading to the conclusion that local government had
been transformed into a system of local governance involving a plurality of organisations
across the public, private and voluntary sectors.
Economic governance requires removal of market distortions, setting appropriate service
standards, ensuring fair competition amongst the players and a level playing field,
protecting the interests of all concerned key stakeholders.
Social
Another form of analysis of governance is responding to complexity, diversity and
dynamic changes in society. Kooiman and Van Vliet (1993), link governance to the
need for an interactive form of governing. The purpose of governance in our societies
can be described as not only about coping with the problems but also dealing with the
opportunities of complex, diverse and fragmented societies. Complexity, dynamics and
diversity has led to a shrinking external autonomy of the Nation State combined with
the shrinking internal dominance vis-à-vis social subsystems. Governing in modern society
is predominantly a process of coordination and influencing social, political and
administrative interactions, meaning that new forms of interactive government are
necessary. Governing in an interactive perspective is directed at the balancing of social
interests and creating the possibilities and limits of social actors and systems to organise
themselves.
In the present scenario, the government is not acting alone. Rather it is increasingly
engaging in co-regulation, co-steering, co-production, cooperative management, public/
private partnerships and other forms of governing that cross the boundaries between
government and society and between public and private sectors (ibid.). The tasks of
steering, managing, controlling or guiding are carried out through a wide a range of
agencies in the public, private and voluntary sectors, acting in conjunction or combination
with each other. It is no longer the domain of the government. Governance in this context
stands for developing, strengthening and sustaining collaborative and participative
processes, bringing about networking and coordination and building human capacities.
31
Government and
Governance : Concepts 2.5 CONCEPT OF GOVERNANCE: AN APPRAISAL
It should be clear by now that the term ‘governance’, has, over the last two decades,
occupied a prominent place in the discipline of public administration. As we have
discussed in this Unit, the form of governance is not homogeneous and it has several
elements, be it civil society, market forces, third-party government, network management
and so on. To recapitulate, the validity of the governance concept has been questioned
on the ground of its usefulness. George Frederickson (2001) has questioned the utility
of the concept of governance. According to him, the utility of the concept could diminish
over time. He also feared that the capacity of the core State executive to steer could
diminish too, as governance is often centered on non-state institutions. In such a situation,
conditions of steering get reversed and the State gets steered by its governance partners.
Rather, in a hollow State, it is the partners who start dictating the governance.
According to Frederickson (op.cit.) two important implications arise from the critique
of governance. One is that governance approach to public administration focuses on
change and reform rather than functioning of institutions including the State. The second
implication of the critique is that governance theorists look for an all pervasive pattern
of organisational and administrative behaviour, a ‘general theory’ that provides an
explanation for the past and a means to predict the future.
Frederickson suggests a fundamental distinction between public administration as the
internal day to day management of an organisation and governance as management of
extended State. It includes management of non-governmental, institutional and other
organisations in so far as their policies or actions affect the citizens in the same way as
State agencies. This leads to a three-fold theory of governance in public administration.
First, is interjurisdictional governance. This refers to policy area, specific, formalised
or voluntary patterns of inter-organisational or inter-jurisdictional cooperation. Second,
is the idea of third party governance that extends the functions of the State by contract,
to third parties. Third, is the area of public non-governmental governance. This accounts
for those activities of non- governmental organisations that bear on the interests of
citizens in the same way as governmental agencies (www.rhu/ac.uk.mgt/news and events/
seminars). But the concept of governance despite its deficiencies is still the most useful
proposition in understanding State-market and State-society synergy. The activity of
governance has assumed a new complexion with involvement of several stakeholders
in the exercise of power for ‘public good’ It is the institutions and citizens responsible
for managing the governance system that need to play a key role in coping with the
challenges of governance.
1) Explain political form of governance.
.....................................................................................................................
.....................................................................................................................
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.....................................................................................................................
.....................................................................................................................
32
2) Make an appraisal of concept of governance. Governance:
Conceptual
..................................................................................................................... Dimensions
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
2.6 CONCLUSION
Governance basically focuses on the process of governing, involving interactions between
various formal and informal institutions as well as influencing the policies and decisions
that concern public lives. The success of governance depends on the reinvention of the
government, re-invigoration of non-government sectors, with a social motive. There is
a need to have political will, normative concerns and organisational flexibility. Besides,
it is imperative to pay attention to the mechanisms and modalities followed by governments
to determine public policies and equally important, to critically examine whether the
policies are being efficiently and honestly implemented by the government agencies and
organisations responsible for performing the assigned tasks. It also needs to be seen
whether, and to what extent, the governments have established meaningful linkages
with various elements of civil society, which can support the concern for good governance.
Governance needs to be transformed to make it the key instrument towards effective
implementation of public policies. This requires a multi-pronged strategy to strengthen
the capacities of all the actors involved in the governance process. Governance needs
to be given a wider connotation, so as to bring within its fold, not just good government,
but also other formal and informal institutions, public-private interface, legal and regulatory
reforms, decentralisation of economic functions; and empowerment of communities.
The State, the private sector and the NGOs, especially the community-based
organisations should cooperate and coordinate with each other to make good governance
possible.
Governance now not only occupies centre stage in the development discourse but is
also considered as the crucial element to be incorporated in a development strategy. It
is a policy making device that underlines transparency, accountability, responsibility,
integrity and legitimacy of the institutions as also the policy makers. It signifies a change
in the meaning of government, referring to a new process of governing; or a changed
condition or ordered rule; or the new method by which society is governed. It
incorporates the minimal State, a socio-cybernetic system, self-organising networks,
corporate governance and good governance. It basically focuses on the process of
governing, involving interactions between various formal and informal institutions as
well as influencing the policies and decisions that concern public lives. It now acts as an
interface between the State, market and the civil society.
2.7 GLOSSARY
Accountability : It means answerability as well as proper enforcement for violating
certain laid down norms. It involves making politicians, administrators, governmental,
non-governmental and private sector organisations accountable for their activities.
Corporate Governance : It is the system by which business corporations are directed
and controlled. The corporate governance structure specifies the distribution of rights 33
Government and and responsibilities among different participants in the corporation, such as the board
Governance : Concepts managers, shareholders and other stakeholders, and spells out the rules and procedures
for making decisions on corporate affairs.
Hollowing out of the State : The phrase summarises many of the changes, which
have taken, and are taking, place in British government. It refers to: (i) privatisation and
limiting the scope and forms of public intervention; (ii) the giving away of functions by
central and local government departments to alternative delivery systems (such as
agencies); (iii) the devolving of functions by British government to European Union
Institutions; and (iv) limiting the discretion of public servants through application of new
public management principles, with emphasis on managerial accountability, and clearer
political control through a sharper distinction between politics and administration.
New-Institutional Economics : It is an approach to the study of economic phenomena
that focuses on institutions other than the market- on norms, conventions, and patterns
of social interaction, to examine as to which institutional arrangement fosters growth,
development and efficiency and which hinder these.
Responsiveness : It means that the institutions and the governance process should be
responsive to the needs of all those who are likely to be affected by their decisions. It
refers to the capacity of the government to respond to changes and accordingly alter its
processes and practices.
Rule of Law : Governance does not mean the arbitrary use of authority. It means
governance supplemented by a fair legal system and only then it will be effective. This
should be supported by appropriate law enforcement machinery and an independent
judiciary that can instill confidence in the people.
Transparency : It refers to all those activities of the government aimed at disseminating
information pertaining to the activities of the citizens without any inhibition. It is based
on the premise of the free flow of information and its accessibility to those affected by
the decisions, which are taken in the governance process. The information provided
has to be understandable and of relevance to those concerned.
2.8 REFERENCES
Bhattacharya, M. (2011). New Horizons of Public Administration. New Delhi, India:
Jawahar Publishers and Distributors.
Cadbury Report. (1992). The Report of the Committee on the Financial Aspects
of Corporate Governance. London, UK: Gee & Co.
Chakrabarty, B. & Bhattacharya, M (Eds.). (2008). The Governance Discourse: A
Reader. New Delhi, India: Oxford University Press.
Chakrabarty, B & Chand, P (2017). Public Administration from Government to
Governance. Hyderabad, India: Orient BlackSwan.
Frederickson, G. (2001). Whatever happened to Public Administration? Governance,
Governance Everywhere. Retrieved from www.rhul.ac.uk.mgt/newsandevents/seminars.
Kooiman, J. & Van Vliet, M. (1993). Governance and Public Management. In K.A.
Eliassen & J. Kooiman (Eds.), Managing Public Organizations: Lessons from
Contemporary European Experience. London, UK: Sage.
Medury, U. (2016). Concept of New Public Management. In Alka Dhameja & Sweta
Mishra (Eds.), Public Administration Approaches and Applications. New Delhi,
34 India: Pearson.
Medury, U. (2010). Public Administration in the Globalisation Era. The New Public Governance:
Mangement Perspective. New Delhi, India: Orient BlackSwan. Conceptual
Dimensions
Mishra, A.D. (2003). Good Governance: A Conceptual Analysis. In Alka Dhameja
(Ed), Contemporary Debates in Public Administration. New Delhi, India: Prentice-
Hall of India.
Osborne, D. & Gaebler, T. (Eds.) (1992). Reinventing Government: How the
Entrepreneurial Spirit is Transforming the Public Sector. Addison, UK: Wesley
Reading.
Pierre, J. & Peters, B.J. (1991). Governance, Politics and the State. Basingstoke,
UK: Macmillan.
Rhodes, R.A.W. (1997). Understanding Governance Policy Networks,
Governance, Reflexivity and Accountability. Buckingham, UK: Open University
Press.
World Bank. (1989). Sub-Saharan Africa: From Crisis to Sustainable Growth – A
Long-term Perspective Study. Washington D.C., USA.

EXERCISES
• Governance in simple terms implies process of exercise of authority to govern
people or regulate public affairs.
• It is broad in nature and encompasses State, government, private sector,
local government bodies and citizens.
• It refers to all processes of governing whether by government, market or civil
society that involves interaction and decision making amongst all stakeholders.
• New Public Management is the manifestation of Competition State approach.
• It aims at making public administration market-based, by focusing on three
goals of efficiency, economy and effectiveness.
• It emphasises on introducing private sector management methods in public
sector, market competition, decentralisation of authority, focusing on
outcomes.
• Rule of Law.
• Freedom of information.
• Strong legal system.
• Accountability.
• Responsiveness.
• Transparency.
35
Government and Check Your Progress 2
• Hollowing out of the State.
• Shifting of power outwards to financial market, global companies.
• Percolation of power downwards to the sub-national level of regions and
cities.
• Changing role of State.
• Governance approach focuses on change and reforms rather than functioning
of institutions.
• Governance theorists attempt to provide a pervasive pattern of organisational
and administrative behaviour.
• It gives a ‘general theory’ that provides an explanation for the past and a
means to predict future.
36
UNIT 3 GOVERNANCE FRAMEWORK IN
INDIA*
Structure
3.0 Objectives
3.1 Introduction
3.2 Operational Framework of Governance: Role of State Actors
3.2.1 Constitutional Supremacy
3.2.2 Parliamentary System
3.2.3 Role of Political Executive
3.2.4 Role of Administrative Executive
3.2.5 State and Local Governance
3.2.6 Role of Judiciary
3.3 Operational Framework of Governance: Role of Non-state Actors

3.3.1 Role of Market
3.3.2 Role of Civil Society
3.4 Governance Indicators

3.4.1 Voice and Accountability
3.4.2 Political Stability and Absence of Violence
3.4.3 Government Effectiveness
3.4.4 Regulatory Quality
3.4.5 Rule of Law
3.4.6 Control of Corruption
3.5 Conclusion
3.6 Glossary
3.7 References
3.0 OBJECTIVES
• Describe the role of State actors in governance;
• Explain the emerging interactions and networks between multiple stakeholders
and their impact on governance practices;
• Analyse the various empirical evidences of governance; and
• Discuss governance indicators across six dimensions.
3.1 INTRODUCTION
Ever since the term ‘governance’ has become the cynosure of all actors, both State and
non-state, there has been a trend to engage, educate, and empower people in a peaceful
* Contributed by Dr. R. Anitha, Former Faculty, Rajiv Gandhi National Institute of Youth
Development, Siriperumbudur, Tamil Nadu 37
Government and way for a wide array of missions, such as, economic welfare, child wellbeing,
Governance : Concepts mainstreaming gender, environmental protection, and cultural promotion. To illustrate,
in the year 2015-16, citizen volunteers in Mumbai gathered every weekend to remove
tonnes of garbage from Versova beach. With active citizen participation, Brihanmumbai
Municipal Corporation (BMC) provided clean-up tools, garbage trucks etc., and in
due course several individuals across the city supported the beach clean-up initiatives
(Rezwan, 2017). In fact, the erstwhile head of the United Nations Environment
Programme (UNEP) lauded this initiative as the “world’s largest beach clean-up in
history” (Shaikh, 2018). This social experiment paved way to rebuild communities and
acquire new skills like problem solving, negotiation, decision making, team work, and
mutual learning. From this example, you can understand the interaction dynamics between
citizen volunteers, municipal officials, and international agencies.
In this Unit, we shall discuss the governance framework in Indian context in terms of the
roles of both State and non-state actors to foster political, social, and economic
development. An attempt is made to examine key governance indicators.
3.2 OPERATIONAL FRAMEWORK OF

GOVERNANCE: ROLE OF STATE ACTORS
Ever since the beginning of modern jurisprudence, the one and only proposition that
inspired the intellectuals’ was: ‘Nobody is Above Law’. Based on this foundation, the
framework of how to prevent the State or its individuals from becoming tyrannical has
been constructed. In a way, to protect civil rights and to treat every person equal
before law, irrespective of caste, creed, religion, gender, disability etc., the idea of
Constitution evolved during modern period. Indeed, the founding fathers of modern
India aspired to setup the framework of governance that works “for the welfare of the
people”. In this section, we shall discuss the operational framework of Constitution and
the State actors in governance.
3.2.1 Constitutional Supremacy

When the Constitution of India was adopted on November 26th, 1949, by the
Constituent Assembly, its members were quite aware of the potential challenges of
governance in the emerging democracy. In fact, this can be construed from the words
of Dr. B.R. Ambedkar, Chairman of the Constitution Drafting Committee, as: “I feel
that the Constitution is workable; it is flexible and it is strong enough to hold the
country together both in peacetime and in wartime. Indeed, if I may say so, if
things go wrong under the new Constitution the reason will not be that we had a
bad Constitution. What we will have to say is that Man was vile” (Keer, 1995). It
is to be noted from the Chairman’s address that mere presence of a good Constitution
may not lead to democratic governance; rather, the quality of governance is determined
by the State and its actors in upholding the principles enshrined in our preamble –
justice, liberty, equality, and fraternity. Indeed, Constitution gives the foundational
framework for governance by delineating the powers, functions, and jurisdictional
boundaries of State vis-à-vis legislature, executive, and judiciary and specifies the rights,
responsibilities, and remedies available for its citizens.
Based on this foundational framework, specific rules and regulations are drafted by the
respective Ministries/Departments. In case of violation of the Constitution principles, it
empowers judiciary to enforce the fundamental rights, that is, the court can take up the
issue on its own.
38
3.2.2 Parliamentary System Governance
Framework
The Parliament of India as a depository of the constituent powers of the Indian Union in India
makes the Executive accountable to the Legislature with regard to their decisions. Ever
since independence, our Parliament has evolved as a multi-faceted institution in terms
of legislations, bills, debates, question hours, live proceedings of the business conduct
etc., and hence occupies a key position in our representative democracy. Our Parliament
comprises the President, Lok Sabha (House of People) and Rajya Sabha (Council of
States).
Primarily, the President is the Head of the State and s/he does not belong to any of the
legislatures, however, s/he is an integral part of the Parliament on whose behalf the
business proceedings of the Parliament are followed. A Bill passed in the Parliament
cannot become an Act unless it receives the President’s assent. On the other hand,
President can either send back the bill without consent or may ask the houses to
reconsider the bill. For example, the former President of India Dr. A. P. J Abdul Kalam
asserted his Presidential power (Article 111) by sending back the Office of Profit Bill
with a message for reconsideration. Also, the Constitution prescribes that the reports of
Auditor-General, Finance Commission, Union Public Service Commission (UPSC)
are submitted to the President who later puts forth before the Houses. The Council of
Ministers (CoM) headed by the Prime Minister (PM) aid and advice the President in
the execution of his/her functions.
As stated earlier, the Executive, that is, the ministers are collectively responsible to the
Parliament in general and Lok Sabha (LS) in particular as it represents the elected
representatives of the country. This implies that by passing the no-confidence motion
on the floor, the LS can remove the Council of Ministers from office. To illustrate, in
1963, the first no-confidence motion was moved by Acharya Kripalani against Prime
Minister Jawahar Lal Nehru. The debate lasted for 21 hours, over four days and 40
Members of Parliament (MPs) participated (Times of India, 2018). However, the no-
confidence motion could not dislodge the government due to its overwhelming majority
in the House. However, no-confidence motion could shatter the ruling government in
case of a coalition government. For example, in 1997, when Congress withdrew its
support from the coalition government, no-confidence motion was moved against PM
Devegowda (Prashar, 2018). Since the government could not prove its majority in the
House, it led to the fall of the government.
Further, the elected members possess the powers to raise questions and scrutinise the
ruling government policies or bills or decisions. Let us understand through the following
case example.
Case Example
In 2016, a Rajya Sabha Member of Parliament (MP) raised a written starred question
with reference to the farmers of Wardha district, Maharashtra (PRS Legislative
Research). The answer was discussed in the RS which presented the data regarding
the government interventions for the drought-relief like provision of psychological
counselling to the depressed farmers, crop assistance etc.
From the above, you can understand that the Parliament serves as an important platform
to discuss the governance issues in the country and as the Constitution holds the Executive
accountable for their respective decisions/actions. The distinguished parliamentarian
Somnath Chatterjee once answering to a question on how challenging it was to be a
Speaker opined that “the job is extremely important. Parliament is the institution
39
Government and through which you bring changes; it is not just laws, you discuss people’s issues”
Governance : Concepts (Chatterjee, 2007).
3.2.3 Role of Political Executive

The Executive function is one of the crucial functions in India as it deals with the
implementation of policies, laws, rules and regulations. It includes the PM, the Cabinet
and other Ministers. As per the Constitution, PM is the real executive of the government
and head of the Council of Ministers (CoM). The PM has been vested with powers,
such as, portfolio allocation of the Ministers, recommendations of persons for appointment
as Ministers/ Attorney General of India/Comptroller and Auditor-General of India,
Chairpersons of UPSC, Election Commission (EC), Finance Commission etc. The
role of PM is to act as a chief communication channel between the CoM and the
President. In a way, the Union Executive occupies a central role in its interface with the
Parliament, state and local entities in its everyday affairs.
Usually, laws are made by the Parliament, however, there are provisions wherein the
Cabinet – comprising PM and Cabinet Ministers can pass resolutions for the efficient
implementation of various programmes. The term associated with cabinet decision is
technically called as Cabinet Resolution. Let us discuss the implications of Cabinet
Resolution with a case example.
Case Example
A Cabinet Resolution which was passed on March 15th, 1950 decided to set up Planning
Commission (PC). The whole idea was to foster economic development and improve
the standard of living of the newly independent nation (Government of India, 1950).
From the resolution, we could gauge that the Planning Commission was established to
have a comprehensive planning body at the Centre. Let us take another example in this
context. On January 1, 2015, a Cabinet Resolution was passed to replace Planning
Commission with National Institution for Transforming India (NITI) Aayog to suit the
current requirements (Government of India, 2015). While the idea of PC in 1950 was
to have a centralised planning agency that coordinates development initiatives, NITI
Aayog has been established with the objective to promote participatory citizenry,
cooperative federalism, women empowerment, leveraging technology for transparent
governance, inclusivity etc.
Having discussed the legitimacy of decision makers through Cabinet Resolution, let us
discuss the role of administrative executive in the ensuing paragraph.
3.2.4 Role of Administrative Executive

The civil service, field agencies and authorities, armed forces, etc., constitute the
administrative executive. While the political executive is elected every five years, the
administrative executive is the permanent structure of the nation who is selected through
various examinations. Unlike political executives, the administrative executive is not
accountable to the legislature rather directly answerable to their respective political
heads. For example, in the Ministry of Environment, Forest and Climate Change
(MoEFCC), the Secretary (administrative executive) will be directly accountable to
the minister (political executive). In this regard, both the political and administrative
executives work towards the welfare of the country by formulating various policies and
programmes. Let us understand the interface between politics and administration through
accountability tools given below:
40
a) Freedom of Information Governance
Framework
With the view to fostering an open government which shares its documents, accounts, in India
letter of appointments, orders etc. to its citizens, a major legislation was enacted in
2005 vis-à-vis Right to Information (RTI) Act. In fact, RTI Act came as a result of the
freedom of information movement which was pioneered by Mazdoor Kisan Shakti
Sangathan (MKSS), a non-governmental organisation in Rajasthan. Notably, the RTI
derives its sanctity from the fundamental right of expression under Article 19. The Right
to Information Act 2005 confers on the citizens the right to:
• inspect works, documents and records of the government and its agencies;
• take notes, extracts or certified copies of documents or records;
• take certified samples of material; and
• obtain information in form of printouts, diskettes, floppies, tapes, video cassettes
or in any other electronic mode.
To facilitate the administrative processes, Central Information Commission (CIC) became
functional since 2005 under the RTI Act. In complying with the RTI Act, State Information
Commission (SIC) has been established in every state to cater to the matters falling
within the state jurisdiction. This created a new accountability enabling mechanism which
plays a crucial role in disclosing information within 30 days of RTI application. For
example, a citizen of India can file RTI application for seeking information on procurement
tenders, delay in decision making, non-utilisation of resources in specific schemes or
programmes etc. Over the years, citizen interaction with the government has improved
so significantly that several public scams have been exposed through RTI. In this regard,
it is an important step towards tackling corruption.
b) Citizen’s Charter
In response to transforming Government to Citizen (G2C) interface, Citizen’s Charter
was implemented in the year 2002. During May 1997, a Conference of Chief Ministers
of various States and Union Territories was held in New Delhi to adopt an ‘Action Plan
for Effective and Responsive Government’ at the Centre and state levels. One of the
main agenda was to formulate Citizen’s Charter which could ensure service delivery
standards. At the apex level, the task of formulation and implementation of Citizen’s
Charter was taken by the Department of Administrative Reforms and Public Grievances
(DARPG). Comprehensive guidelines were prepared and communicated to several
public institutions to include the following components in their respective organisations:
vision and mission statements; details of business transacted by the organisation; details
of clients; details of services provided to each client group; particulars of grievance
redressal mechanism and how to access it; and expectations from the clients (Government
of India, Citizen’s Charters).
c) Public Hearings
A public hearing is a participatory process that involves detailed interaction between
the general public (people who are likely to get affected by the project) and the concerned
stakeholders of the project vis-à-vis mining, industrial, infrastructure, thermal power,
nuclear power, and hydropower projects. As per the provisions of Environment Impact
Assessment (EIA), 2006, conduct of public hearing is mandatory for obtaining
environmental clearance of any project. It is to be noted that the relevance of public
hearing underscores the principles of democratic governance and sustainable
development. Prior to the hearing, the draft of EIA report is widely circulated among 41
Government and the stakeholders for suggestions, criticisms, comments, questions etc. in the local
Governance : Concepts vernacular language. Following this, the date and time of public hearing is notified in
national and regional daily for wider participation. Later, the competent authority
convenes a hearing with the public. Usually, the District Magistrate presides over the
hearing process and necessary arrangements are made to videotape the entire
proceedings. There have been instances where the procedures had not been followed
as prescribed in the legislation and in such cases the concerned authorities can reconvene
the hearing. For instance, in Kudankulam nuclear power project, Tamil Nadu, the EIA
report was not provided in the vernacular language and the hardcopies of the report
were not widely circulated (Srikant, 2009), as a result, the public hearing was reconvened.
d) Social Audit
In India, social audit as an empowerment tool was inserted as part of MGNREGA Act
(2005). The mechanism of social audit enables the citizen to directly participate in the
governance process to track the discrepancies between allocation of funds and utilisation
of funds. Firstly, the records related to the government project are collected; secondly,
citizen surveys and spot inspections are conducted by the social auditors in association
with civil society; thirdly, records are scrutinised to find any misappropriation of resources.
It is only after these preliminary steps, that the social audit holds the officials directly
accountable at the public hearing. The public hearing is usually attended by gram sabha
members, local officials and other concerned stakeholders. Further, follow up actions
are conducted after the hearing with regard to identifying, planning, and prioritising of
projects. It has to be noted that projects are generally initiated based on the annual
village plans.
The social audit may serve as an accountability tool in several states, but in Meghalaya
it is more than a tool. In April 2017, the state of Meghalaya passed a legislation on
social audit called as the ‘Meghalaya Community Participation and Public Services
Social Audit Act’, that mandated social audits as an integral part of governance (Kumar,
2018).
The government has also been proactive in engaging citizens in development process.
For example, an online citizen platform was launched in the year 2014, to “discuss” and
“do” governance issues through mygov portal. With the objective to bridging the gap
between the government and citizens’, the portal intends to instil citizen interaction
process not just at the time of voting but also to involve actively in the governance
process by sharing their time and effort. Also, provisions have been provided to the
citizens to upload documents, case studies, photographs, videos, and similar aspects.
The operational framework of the Executive has been discussed in this sub-section. In
the following sub-section, we shall discuss briefly about the State and Local
Administration.
3.2.5 State and Local Governance

Governance at the State Level
The Governor presides over the state as the nominal executive. As per Article 355, the
Governor oversees the formation of state government, maintains unity of command
between the Centre and state, gives assent to the bills passed in the assembly, and
appoints important heads of the state based on the recommendation of Chief Minister
(CM) etc. Unlike President of India, the Governor does not possess diplomatic, military
or emergency powers. As an important neutral actor within the strata of state government,
42 the Governor also ensures continuance of governance when there is a breakdown of
the Constitutional machinery of the state. The Chief Minister being the real head of the Governance
government at the state level serves as an important communication channel between Framework
in India
Governor, State Legislative Assembly, Prime Minister, and citizen.
Let us understand the process of governance in the state level in the wake of a mass
citizen protest through the following example.
Case Example: Promulgation of Ordinance by the Governor
In 2014, the Supreme Court banned ‘Jallikattu’ (an ancient bull taming sport of Tamil
Nadu which is usually conducted during the month of January) based on the petition
given by People for Ethical Treatment of Animals (PETA), an American non-profit
organisation that works towards animal rights. The Tamil Nadu government filed a
review petition to lift the ban imposed on Jallikattu, however, the Supreme Court
dismissed it in November, 2016. Following this, a fresh petition was filed to issue an
interim order by the state government but it was denied in January 2017 on the premise
that it was unfair on the part of the state government to pressurise Supreme Court to
issue order before the final verdict. In response to this, the civilians, especially, thousands
of youth across the state of Tamil Nadu gathered peacefully in Chennai to protest
against the ban on Jallikattu and claimed that it was their cultural right to conduct such
sport. In this regard, the Madras High Court refused to interfere in the affairs as the
matters were dealt by the Supreme Court. Meanwhile, discussions were held with the
PM by the state government for an ordinance. Later, the state government initiated an
ordinance and the Governor immediately promulgated. An ordinance enables the
concerned authority to make amendments to the statutory law. According to the
ordinance, the bull sport could be held provided that prompt punitive action is taken
against the perpetrators who subject the bulls to cruelty.
From this example, you can understand the dynamics of citizens’ protest, interaction
between the state, centre, judiciary and stakeholders in the context of governance.
Governance at the Local Level
With the intention to address the challenges of governance at local level, the creation of
municipalities and panchayats came into effect with the passage of 73rd and 74th
Constitutional Amendment Acts (CAA). It configured a structural framework for electing
governments at the local level and for their effective functioning. The Act mandates
compulsory reconstitution of elected bodies within a stipulated time frame and explicitly
acknowledges a central role for the Urban Local Bodies (ULBs) and Panchayats within
the Constitutional framework and provides for devolution of funds, functions, and
functionaries to them. The constitution of Ward Committees, Planning Committees,
and District Planning Committees for preparation and consolidation of plans of spatial,
economic, and social development marks a paradigm shift from a traditional top down
approach to bottom up approach. In essence, the highlight of the Constitutional
Amendment Act is to have the State governments under a constitutional obligation to
adhere to the new system of local self-governance in ULBs.
With the intention to bridge the gap between the government and the governed, this Act
outlined a broad framework that would enable the urban/rural local bodies to enjoy a
constitutional status, thus, transcending from their previous position of being non-
functional in governance.
Case Example
On June 1st, 2014, Gariphema village (Nagaland) was declared as India’s first tobacco-
free village. It was a joint initiative of the stakeholders comprising the Gariphema Village 43
Government and Council, Village Vision Cell and Village Students’ Union. It was on the occasion of
Governance : Concepts World No Tobacco Day, that a resolution was passed in the village regarding the ban
on tobacco which declared that the perpetrators would be penalised (Press Trust of
India, 2014). This endeavour is unique for it sends a message across the country that
even the smallest tier of governance is powerful enough to exercise rights towards
public health.
From the above examples, we can understand the power of grassroots democracy.
Having discussed the operational framework of State actors, in the ensuing section, let
us understand in the context of non-state actors.
3.2.6 Role of Judiciary

The judiciary is uniquely placed in the matrix of power structure within governance. The
judges are not elected but clearly have the power to check the exercise of authority of
elected representatives and appointed officials. The judiciary as an institution is vastly
respected and is vested with the power to protect the rights and freedom of people. It
is to be noted that the courts of present times provide new checks on representative
institutions. Presumably, these checks have been constituted by the court due to the
changing social, economic, and political context.
Let us understand the role of judiciary through the remarkable contributions made by
those Judges who by their simplicity and unconquerable spirit gave fresh perspectives
to the judicial system. One of the hallmarks of our Constitution is that it has been
tailored to suit contemporary conditions in governance by the tireless efforts of Chief
Justices N.A. Palkhiwala, V.R. Krishna Iyer, Bhagwati, Khanna, Kuldeep Singh etc.
With their exceptional acumen and social consciousness, they have indeed exceeded
the expectations of Dr. Ambedkar and other founding fathers of the Constitution. Given
the need for promptly responding to the needs of the poor and challenges of
representative institutions, Supreme Court crafted innovative tools like Public Interest
Litigation (PIL), Lok Adalat etc. This innovative role in interpreting the Constitution to
contemporary times is called as Judicial Activism.
Over the years, the Supreme Court has, interpreted the scope of fundamental rights
consistently, amidst opposition from the Legislative and Executive, thereby upholding
the rights and dignity of individuals in line with constitutional principles. In case after
case, the Court has issued a range of commands for law enforcement, dealing with an
array of aspects of executive action in general, and of other stakeholders in particular.
When Golaknath Vs State of Punjab Case (1967) was overruled by Kesavananda
Bharti Vs State of Kerala Case (1973), the Court was faced with the question whether
Parliament could exercise unlimited powers to amend the Constitution. However, with
deliberations made by various judges it was realised that the Constitution was the outcome
of various intellectuals, statesmen and who fought against social injustice; hence, its
structural foundation was not meant to be interfered as per the Parliament will. Therefore,
the judges invented the theory of ‘Basic Structure of the Constitution’ which clearly
indicates the commitment of Indian judiciary in upholding the constitutional principles,
as envisioned by the founding fathers.
44
1) What do you understand by the term ‘Constitutional Supremacy’?
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Framework
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2) What is the role of Parliament in representative democracy?
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3) Describe the various tools of accountability.
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4) Highlight the role of Judiciary in India.
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3.3 OPERATIONAL FRAMEWORK OF

GOVERNANCE: ROLE OF NON-STATE
ACTORS
3.3.1 Role of Market
The introduction of economic reforms in 1991 led to a paradigm shift in Indian context.
There was a conscious retreat of the State from development projects which demanded
huge financial and technical resources. It came into terms with collaborating projects
with the private sector in key sectors like infrastructure and transport through Public
Private Partnerships (PPPs), contracting out, divestment, deregulation, lease, greenfield
projects, and such other mechanisms. Such structural adjustments have been on board
45
Government and to stay competitive, entrepreneurial, revenue-generating, decentralising of authority and
Governance : Concepts increased quality of public service delivery.
According to Hans (2017) PPP can be understood as a “long term contract between
the government (sponsoring authority) and a private company that may typically provide
for financing, construction, operation, and maintenance under a single firm or a
consortium”. Scholars and practitioners are of the opinion that projects of such magnitude
are to be viewed in the context of ‘value for money’ which includes the following: scope
for innovation, incentivising performance, risk allocation, transparent procedures in
bidding process, severe penal action for flouting rule of law, enforcing agencies etc.
Since PPP projects in social sector and infrastructure involve huge investments, user
charges are collected to sustain the financial obligations. Except for the above mentioned
‘value for money’ context, PPPs serve as an opportunity to involve market in financing,
designing, construction, operation and maintenance of the projects. While the role of
the private sector is to foster efficiency, innovative technologies, managerial effectiveness,
access to financial resources and bears the operational risk of the project, the role of
public sector is to examine the quality of the work. At this juncture a question may arise
whether involvement of private sector would ever dilute the constitutional principles.
However, any PPP project needs to be blended with adequate accountable and
transparent frameworks, failure of which would lead to risking of democracy.
In India, the inception of PPPs at a large scale could be dated to the period from mid
1990s to 2004, especially, in transport and power sectors. Hans (ibid.) analyses that in
2004 due to the absence of a robust PPP framework the government could achieve
limited success. However, during the period 2004-12, the government envisaged for
comprehensive PPP arrangements by formulating guidelines and standardisation of
procedures. Several committees were formed to discuss the viability of PPPs in
infrastructure projects, project financing etc. For example, in 2006, a Committee on
Infrastructure Finance was constituted following which the Committee identified the
key infrastructure sectors vis-à-vis Highways, Railways, Ports, Airports,
Telecommunication, and Power. The Committee estimated a cost Rs. 14.5 lakh crore
investment in the infrastructure sector which enabled the government to increase their
expenditure in the Eleventh Five Year Plan. Meanwhile, manuals, guidelines, accountability
frameworks regarding bidding process, tenders were made online to embark on
transparent transactions.
Further, to expedite the project approvals in a fast pace mode at the apex level, the
Government of India (GoI) in 2006 created a separate wing called Public Private
Partnership Appraisal Committee (PPPAC) under the Department of Economic Affairs
(DEA), Ministry of Finance. As per the Government of India rules, PPP projects that
involve financial expenditure of above Rs. 1000 crore would be sent through PPPAC
to the cabinet for final approval. One of the successful PPP projects in aviation sector
is the Greenfield Airports established in Hyderabad, Bengaluru, New Delhi, Mumbai,
and Kochi. These airports are based on revenue generation model and provide quality
services to air passengers that they have been acknowledged by the Airports Council
International (ACI) in global platforms. To illustrate, in September 2018, ACI honoured
the Delhi and Mumbai Airports as the top performing airports in the Asia-Pacific region
with reference to passenger satisfaction (ACI, 2018).
Despite good practices, PPP endeavour in India has its own challenges. Hans (ibid.)
states that according to the Ministry of Finance, 1539 PPP projects have been approved
so far, out of which only 50 per cent have been operational while the rest of the projects
are either in different phases of implementation or scrapped. A sector-wise break up of
46 PPP projects is given below:
Table 1: Sector-wise break up of PPP projects Governance
Framework
Sector Percentage of Projects in India
undertaken (%)
Transport 58
Energy 24
Social and Commercial 9
Infrastructure
Water and Sanitation 8
Source: Hans (2017) (Based on the Report of Ministry of Finance, GoI)
PPP strategy has been in place at all levels of government, but the performance of any
PPP project depends on the effective coordination among the stakeholders.
In the ensuing sub-section, let us discuss about the role of civil society.
3.3.2 Role of Civil Society

With the evolution of the paradigm from ‘government to governance’ the role of civil
society occupies a pivotal role. Indeed, the Eighth Five Year Plan ‘Report on the Steering
Committee on Voluntary Sector’ (Government of India, 2002) cites the work of Rajesh
Tandon who spearheaded participatory movement across the world through
Participatory Research in Asia (It is a global centre for participatory research and
training). Rajesh Tandon gives a typology of civil society organisations in India as:
traditional associations, religious associations, social movements, membership
associations, and intermediary associations. To illustrate further, the civil society can
include a small voluntary group which works for preservation of the local heritage
structures or a giant organisation which advocates for low carbon footprint in rural
households. It can be a womens’ self-help group that runs public distribution shops or
an ad-hoc social media group which engages in disaster relief and rescue operations.
In India, civil society has been viewed by scholars in two ways: first, being a pioneer in
social movements, thereby, making the government responsive to the citizen aspirations.
For example, as stated earlier, Mazdoor Kisan Shakti Sangathan (MKSS), acted as a
catalyst by lobbying with the government and other stakeholders for the enactment of
RTI Act. To illustrate, Janaagraha Centre for Citizenship and Democracy, a non-profit
organisation based in Bengaluru, Karnataka, collaborates with police, civic bodies,
schools and other stakeholders to promote active citizenship. In a way, the civil society
organisations have carved a niche in the democratic space to realise the constitutional
principles.
During the Twelfth Five Year Plan (2012-2017), for the first time the Planning Commission
invited the inputs of civil society to identify the governance challenges in specific areas
(Joshi, 2010). Further, the civil society that was engaged was asked to conduct
consultations with the marginalised communities vis-à-vis youth, destitute women,
transgender, minority, disabled etc., and to ensure that their voices get reflected in the
draft of the Twelfth Five Year Plan. Presently, NITI Aayog too holds discussions with
the senior civil society members and various ministries on the same platform to strengthen
partnerships.
Thus, various mechanisms have been utilised by the government to mainstream civil
society in the governance matrix. 47
Government and In this section, the operational framework of non-state actors and the measures taken
Governance : Concepts up by the Government of India to engage market and civil society has been discussed.
1) What is the role of market in governance context?
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2) Justify the need for civil society organisations in India.
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3.4 GOVERNANCE INDICATORS

One of the best mechanisms to measure and manage governance – be it national, state
or at local level is to assess the way it functions. It is generally said that “If you can’t
measure it, you can’t manage it” which signifies the importance of performance
measurement. Performance measurement has turned out to be the best indicator and it
has become a known fact that seldom public sector could achieve Sustainable
Development Goals (SDGs) without measuring the costs, deadlines, targets, quality of
work, and citizen satisfaction. However, in governance context, it becomes challenging
for the public sector to measure performance due to inherent complexities like lack of
adequate statistics to quantify, dearth of qualified personnel to carry out survey, etc. In
collaboration with World Bank, Kaufmann et.al (2010) made an attempt to quantify
governance indicators by using the data of over 200 countries. The indicators referred
to as Worldwide Governance Indicators (WGI) have been used to measure governance
across six dimensions, namely, Voice and Accountability, Political Stability and
Absence of Violence, Government Effectiveness, Regulatory Quality, Rule of Law,
and Control of Corruption.
Let us briefly discuss the indicators given below:
3.4.1 Voice and Accountability

Citizens’ Voice and Accountability are key governance indicators that point out the
ability of the citizens to exercise their freedoms and articulate their priorities, and to
hold concerned stakeholders responsible for their actions. This is measured through
citizen participation in democratic processes. For example, in the case of Mahatma
48
Gandhi National Rural Employment Guarantee Act (MGNREGA), social audit has
been used as a governance tool to monitor the official records, quality of work, and to Governance
determine whether the allocated resources has been utilised effectively at the village Framework
in India
level.
3.4.2 Political Stability and Absence of Violence

Political stability represents strong political institutions and predictable policies that
foster economic stability, Consumer Price Index (CPI), social investments, and the
capacity of the government to cope with financial risks of any magnitude. With regard
to Absence of Violence/Terrorism, it is related to the government’s preparedness to
terror attacks and its ability to tackle mob violence.
3.4.3 Government Effectiveness

This refers to the perception of public service quality, such as, efficiency in resource
mobilisation, access to clean drinking water, affordable health care and education, good
infrastructure, food security, civil service integrity, etc.
3.4.4 Regulatory Quality

This is associated with monetary policies and regulatory framework that promote business
enterprises (micro and macro), simplified tax laws, stimulation of competitive markets,
subsidies, pruning of redundant rules, effective government to business interface etc.
With the introduction of economic reforms in 1991, India could boost its productivity
and strengthen its international trade and investment by improving on its economic,
legal, and physical infrastructure. For example, with the intention to promote a level
playing field in the market sector, Government of India established independent regulatory
bodies by an Act of Parliament, such as, Securities and Exchange Board of India (SEBI)
in 1992 and Telecom Regulatory Authority of India (TRAI) in 1997.
3.4.5 Rule of Law

Rule of Law is the vital indicator which intends to maintain harmony in an open society
where private sector and civil society jointly work with the government to resolve complex
social problems. With the engagement of various stakeholders in public service delivery,
the State is expected to safeguard its citizens against arbitrary actions of the service
providers and in enforcement of rights and remedies. For example, to promote and
sustain competition among the service providers, and to protect consumer interests
against unlawful practices, Competition Commission of India (CCI) was established in
2003. CCI is entrusted to give its opinion on competition issues when the matters are
referred by any statutory authority. It can also take up issues affecting the freedom of
trade in Indian markets. For example, in 2018, based on the complaints from Flipkart,
Facebook, and several other companies in Indian market, CCI had imposed a 136
crore fine on Google for manipulating its “dominant position” in the market by favouring
its own services and partners (Gupta, 2015).
3.4.6 Control of Corruption

It refers to the capacity of the government in handling and preventing corrupt practices.
Post-globalisation, the ministries and departments have had persuaded organisations to
automate processes that are vulnerable to corruption through Information and
Communication Technology (ICT). For example, the Unified Mobile Application for
New-age Governance (UMANG) launched by the Government of India is a single
platform intended to access a wide range of citizen-centric services across service
providers without any manipulation. 49
Government and The governance indicators mentioned above could be summarised using Kaufmann
Governance : Concepts et.al (op.cit) definition: Governance as “the traditions and institutions by which authority
in a country is exercised. This includes (a) the process by which governments are selected,
monitored and replaced; (b) the capacity of the government to effectively formulate
and implement sound policies; and (c) the respect of citizens and the state for the
institutions that govern economic and social interactions among them”. Based on the
WGI, we can understand that the parameters established for managing governance do
not exist in vacuum rather they are mutually inclusive of each other, say for example, a
fair position in political stability and absence of violence may positively correlate with a
fair position in rule of law.
From this section, you might have understood the various governance indicators in
India and how the authorities have exercised their powers in line with public interest.
1) “If you can’t measure it, you can’t manage it” – Comment.
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2) Give a brief account on World Governance Indicators.
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3.5 CONCLUSION
In this Unit, we have discussed the key operational roles played by the State and non-
state actors in governance. With Liberalisation, Privatisation, Globalisation (LPG) era,
reinforcing on the agenda ‘governance for development’, contemporary governments
have thus, realised that the potential of participatory governance is not optional; rather
indispensable in the way government functions. India, being the largest democracy in
the world, has much to gain from market and civil society. With the view to streamlining
the working of the bureaucracy, market, and civil society in a democratic set up, various
transparency and accountability mechanisms have been constituted. Although efforts
have been taken up at all levels of government to revamp the governance matrix, the
challenges are multitude in India due to its heterogeneous population spread across
diverse geographical locations. It is to be understood that beyond the institutional capacity
lies the capacity of society as a self-organising system to solve everyday challenges.
50 With multiple centres of power and layers of authority, different ways have been explored
to strengthen democracy in both developed and developing countries. In this context, Governance
the role of State is not just enabling stakeholders to set the agenda rather it needs to Framework
in India
have a clear strategy in co-creating a sustainable future.
3.6 GLOSSARY
Environmental Impact Assessment (EIA): EIA is a scientific tool which ensures
sustainable development and helps in carrying out evaluation of impacts arising from a
project activity that are likely to have significant environmental effects.
No-confidence Motion: It can be moved only in Lok Sabha or state assembly as the
case may be. It is not allowed in Rajya Sabha or state legislative council. It is moved
against the entire Council of Ministers and not individual ministers or private members.
A no-confidence motion can be moved with a majority vote of 50 members.
Participatory Research: Participatory research comprises a range of methodological
approaches and techniques with the objective to empower the research participants,
that is, the citizen. The focus is to enhance their capacities to collaborate with government
and community.
Stakeholder: A stakeholder is an individual who owns a stake in the process. In
governance context, stakeholders include the government, market, and civil society
who collaborate for meaningful endeavours.
3.7 REFERENCES
Airports Council International (ACI). (2018). World’s top performing airports celebrated
at ACI Airport Service Quality Awards Ceremony. Retrieved from
https://aci.aero/news/2018/09/12/worlds-top-performing-airports-celebrated-at-aci-
airport-service-quality-awards-ceremony/
Bhattacharya, M. (2006). New Horizons of Public Administration. New Delhi, India:
CAG (2018). Student Intern Program (SIP). Retrieved from https://cag.gov.in/sites/
default/files/Student_Internship_Programme/SIP_ADVT_1_20_11_18.pdf
Government of India (2001). Report of the Steering Committee on Voluntary Sector.
New Delhi, India: Planning Commission.
Government of India. (2005). Citizen’s Charters – A Handbook. Retrieved from
https://goicharters.nic.in/cchandbook.htm
Government of India. (2015). Cabinet’s Resolution on NITI Aayog. Retrieved
from:http://www.niti.gov.in/writereaddata/files/cabinet-resolution_EN.pdf
Government of India. (2015). Report of the Committee on Revisiting & Revitalising
the PPP Model of Infrastructure Development. Retrieved from http://pib.nic.in/
newsite/PrintRelease.aspx?relid=133954
Gupta, A. P. (2011). Mechanisms for Infrastructure Public-Private Partnerships: Focus
on India. Retrieved from http://ardent.mit.edu/real_options/Real_opts_papers/
Gupta%20Thesis_Complete_Final.pdf
Gupta, D. (2015). CCI charges Google with rigging search results; Flipkart, Facebook
corroborate complaints. Retrieved from https://economictimes.indiatimes.com/tech/
51
Government and internet/cci-charges-google-with-rigging-search-results-flipkart-facebook-corroborate-
Governance : Concepts complaints/articleshow/48736706.cms
Hans, A. (2017). Rebooting PPP in India. Retrieved from: http://niti.gov.in/writereaddata/
files/document_publication/REBOOTING%20PPP%20IN%20INDIA_blog.pdf
Joshi, S. (2010). Planning Commission seeks inputs from NGOs, social groups for
12th Plan. Retrieved from https://www.thehindu.com/news/national/Planning-
Commission-seeks-inputs-from-NGOs-social-groups-for-12th-Plan/
article15581980.ece
Kaufmann et.al. (2010). The Worldwide Governance Indicators: Methodology and
Analytical Issues. Retrieved from http://info.worldbank.org/governance/wgi/pdf/wgi.pdf
Keer, D. (1995). Dr. Ambedkar: Life and Mission. New Delhi, India: Popular
Prakashan Print.
Kumar, S. (2018). The Meghalaya Example. Retrieved from https://www.thehindu.com/
opinion/op-ed/the-meghalaya-example/article23953492.ece
Mathur, K. (2008). From Government to Governance: A Survey of Indian
Experience. New Delhi, India: National Book Trust.
Medury, U. (2010). Public Administration in the Globalisation Era. New Delhi,
India: Orient BlackSwan.
Prashar, S. ( 2018, 20th July). The three times no-confidence motion shook
governments in the past. Economic Times. Retrieved from https://
economictimes.indiatimes.com/news/politics and-nation/the-three-times-no-confidence-
motion-shook-governments-in-the past/articleshow/65065139.cms
Press Trust of India. (2014). Nagaland’s Gariphema is India’s first Tobacco-free Village.
Retrieved from https://www.ndtv.com/india-news/nagalands-gariphema-is-indias-first-
tobacco-free-village-565002
PRS Legislative Research. (2016). Farmers seeking suicide clearance in
Maharashtra. Retrieved from https://www.prsindia.org/content/farmers-seeking-
suicide-clearance-maharashtra
Ramakrishnan, T. (2017). Governor clears Ordinance on ‘jallikattu’. Retrieved from
https://www.thehindu.com/news/national/tamil-nadu/Governor-clears-ordinance-on-
%E2%80%98jallikattu%E2%80%99/article17074093.ece
Rezwan. (2017). Mumbai locals transform Versova with world’s largest beach
clean-up. Retrieved from https://www.business-standard.com/article/current-affairs/
mumbai-locals-transform-versova-with-world-s-largest-beach-clean-up-
117063000345_1.html
Shaikh, M. (2018). UN Environment chief Solheim joins Versova beach clean-up.
Retrieved from https://www.indiatoday.in/india/story/un-environment-chief-solheim-
joins-versova-beach-clean-up-1243057-2018-05-27
Somnath Chatterjee (2007, 22nd January). Somnath Chatterjee’s advice for India,
Interview by Aditi Phadnis & D.K. Singh. Retrieved from https://www.rediff.com/
newsnterview/somnath-chatterjees-advice-for-india/20180813.htm/i
Srikant, P. (2009). Koodankulam Anti-Nuclear Movement: A Struggle for
52
Alternative Development? Working Paper no. 232. Retrieved from http:// Governance
www.isec.ac.in/WP%20232%20-%20P%20Srikant.pdf Framework
in India
United National Development Project. (2010). Terminal Evaluation of Information
and Communication Technology for Development Project. Retrieved from http://
www.undp.org/content/dam/india/docsterminal_ evaluation_of_information_and_
communication_technology_for_development_project.pdf

EXERCISES
• It is a foundational framework which states that nobody is above law.
• It works for the welfare of people irrespective of caste, creed, religion, gender,
disability.
• Guides the State to act on line with democratic spirit.
• The Parliament is the law making body which discusses important social
issues.
• It comprises the President, Lok Sabha and Rajya Sabha.
• It makes the Union Executive accountable to its actions and decisions.
• Tools of accountability are meant to protect citizen’s welfare.
• Accountability tools include openness, optimum utilisation of resources, and
increased efficiency and effectiveness.
• Freedom of information, public hearing, budget, use of technology etc. are
some of the examples of accountability tools.
• Judiciary occupies a central role in the governance matrix.
• It provides checks on representative institutions.
• Public interest litigation is an accountability tool that was made available to
citizens on the basis of judicial activism.
• The role of market became significant during the introduction of economic
reforms.
• The private sector fosters efficiency, innovative technologies, managerial
effectiveness, and access to financial resources.
• It operates in key sectors like infrastructure, power, water and sanitation. 53
Government and 2) Your answer should include the following points:
• It acts as a catalyst between government and citizen’s.
• The need for a civil society can be traced back to the pre-independent times.
• The Government of India in its Twelfth Five Year Plan provided a crucial role
to the civil society organisations.
• Managing performance in governance context is challenging.
• Performance measurement helps in attaining sustainable development goals
• Establishing governance indicators to measure performance in governance.
• World Governance Indicators came out with a framework to measure the
indicators across the world to measure governance performance to facilitate
aid and assistance.
• The governance indicators include Voice and Accountability, Political Stability
and Absence of Violence, Government Effectiveness, Regulatory Quality,
Rule of Law, and Control of Corruption.
54
UNIT 4 STAKEHOLDERS IN
GOVERNANCE*
Structure
4.0 Objectives
4.1 Introduction
4.2 Stakeholders: Meaning
4.3 Stakeholder Theory
4.4 Stakeholders in Governance Process
4.5 Significance of Stakeholders in the Governance Process
4.6 Stakeholder Involvement in Governance: Forms
4.7 Stakeholders in Governance: Examples
4.8. Conclusion
4.9 Glossary
4.10 References
4.0 OBJECTIVES
• Explain the meaning of stakeholders;
• Examine the stakeholder theory;
• Discuss the significance of stakeholders in governance;
• Describe the forms of stakeholder involvement in governance process; and
• Give examples of successful involvement of stakeholders in governance.
4.1 INTRODUCTION
The traditional model of public service delivery and public policy in contemporary times
seems to be not keeping pace with citizens’ expectations. Unlike traditional models,
governance framework has developed various tools and strategies along with deepening
of democracy through devolution, decentralisation and deconcentration to address the
growing needs of every section of the society. Networking with various organisations
and people into governance framework has become important. Hence stakeholders’
involvement in governance assumes significance. Globally, there are efforts in this
direction. Communication, collaboration, consultation, partnerships are gaining
prominence. In this Unit, we shall discuss the need and significance of stakeholders
involvement in governance, and through examples bring out how active participation of
stakeholders makes a dent in the governance process.
* Contributed by Dr. G.Uma, Assistant Professor, School of Gender and Development Studies,
IGNOU 55
Government and
Governance : Concepts 4.2 STAKEHOLDERS: MEANING
“A stakeholder in an organisation is any group or individual who can affect or is affected
by the achievement of the organisation’s objectives” (Freeman, 1984). Stakeholders
are individuals who either care about or have a vested interest in a project or organisation
or any government programme. They are the people who are actively involved with the
work of the projects or programmes or have something to either gain or lose as a result
of its implementation. For example, when the government or local bodies take up a
project to add lanes to a highway, motorists, local residents and highway users are
stakeholders who positively or negatively get affected due to the implementation of the
project. Among all, the residents of the area who live near the highway may get affected
during the implementation of the project because of the construction, noise, dust pollution
and increased traffic. Motorists and highway users get benefited after the implementation
of the project.
According to Bovaird and Loffler (2016), public governance issues are likely to involve
the following stakeholders (amongst others):
• citizens(as individuals);
• community organisations that are loosely organised;
• Non-profit organisations(including charities and major non-governmental
organisations),which are often quite tightly organised;
• business;
• media;
• public agencies(different levels of government/parliament, including international
levels);
• elected politicians;
• trade unions.
A stakeholder can be a person, group or organisation who/which has an interest or
stake in any activity and has the ability to influence the outcome positively or negatively.
To further clarify, we shall discuss one more example. In 2001, the government in
United Kingdom had approved a project to construct Terminal 5 of Heathrow airport
to meet the growing needs of the air travel. The impact of this on stakeholders was
manifold. The air and noise pollution would increase and also the further expansion
would affect the nearby villages. Around 700 residents were to be displaced to move
to new places. It was the responsibility of the UK government to make an alternative
arrangement for their rehabilitation and resettlement. In this case, 700 residents were
only one of the stakeholders. It was also the UK government’s responsibility to have a
dialogue for the rehabilitation and resettlement of the residents in the new area. The
project had the record of a longest public inquiry to examine the impact of several
stakeholders. The project was approved after reviewing the public inquiry report and
a number of conditions and limitations were imposed to take into account the local
complaints regarding noise and pollution. So every action taken to implement a policy
or programme in governance process is bound to impact those who have a stake in it.
For example in a school system, the term stakeholder refers to anyone who has invested
in the welfare and success of a school and the students which includes the teachers,
principal, staff members, school management board or authority, parents, families, school
56
management committee, neighbourhood community, local elected representatives and Stakeholders in
business community in the area. Governance
Any implementation activity needs to take into account amongst other things the mapping
of all stakeholders who have stake in it or likely to be affected, examine the possibilities
of their engagement through communication, consultation and participation.
4.3 STAKEHOLDER THEORY

Stakeholder theory is a conceptual framework of business ethics and organisational
management which addresses moral and ethical values in the management of
organisation.It was originally detailed by Ian Mitroff in his book ‘Stakeholders of the
Organisational Mind’ published in 1983. The theory points out that it is not just the
people who own the stock in a business who gain on account of decisions made in the
organisation. Each business decision, potentially affects the well –being of many more
people than just stakeholders. So every business has the obligation to all those involved
directly or indirectly that includes stockholders, employees, suppliers, customers, local
community and so on. In the corporate organisation, employees and shareholders are
stakeholders. They both provide resources and make efforts for the successful running
of the organisation. In this way, addressing the needs of the stakeholders is important in
any organisation. This reasoning was referred as instrumental stakeholder theory. This
theory also talks about the need for paying attention to those other stakeholders who
get affected by the value of the firm. It also talks about giving attention to the stakeholders’
governance and securing their interest to get maximum benefit from their contribution to
the organisation.
There are other two perspectives on stakeholder theory. It is descriptive and normative
view. The descriptive stakeholder approach identifies and classifies the different
constituents in an organisation. It does not give any values to their claims or power. But
normative view provides intrinsic value to the stakeholders’ claims by justifying the
moral rights of those who get affected by the corporate decisions. From a normative
point of view, stakeholders need to be included in corporate governance in order to
respect their moral rights. In order to ensure justice, stakeholders’ dialogue is not strategic
but open and deliberative.
The stakeholder view integrates both a resource based view and a market-based view
and adds a socio-political one. Corporations are simply managed not in the interests of
shareholders alone, but there is a whole range of stakeholders as discussed earlier, the
participation of whom in corporate decision making has been related to gaining efficiency,
leading to competitive advantage. Stakeholders’ governance has the potential to turn
‘distrustful” opponents into critical allies.
4.4 STAKEHOLDERS IN GOVERNANCE PROCESS

The new perspective of governance is changing in the 21st century with the issues of
neoliberal economic policy and globalisation combined with other challenges which
include environmental degradation, migration, sustainable development, grassroots
development and all other governance related issues. The socio- economic challenges
and the governance issues of the 21st century need to be addressed with the participation
of all stakeholders. According to Deetz and Kuhn (2007), traditional governance model
provides decision making prerogatives to the organisational leader. In the traditional
model, pressure groups predominantly act as representatives and attempt to gain political
mileage for the certain sections of the population. Deetz and Kuhn further state that
57
Government and unlike traditional model of governance, a stakeholder model of governance provides
Governance : Concepts necessary benefits to the large sections of the population by ensuring their active
participation in the process of governance. It also has capacity to increase the visibility
of participants in the organisation. If an organisation takes certain decisions which affects
certain sections of the population, the stakeholder theory proposes to bring all affected
population into decision making process for ensuring justice to everyone. Now we shall
discuss what an organisation is before we further discuss stakeholders governance.
Organisation is a social arrangement which pursues collective goals, controls its own
performance, and has a boundary separating it from its environment. The word itself is
derived from the Greek word organon, from the better-known word ergon. There are
various types of organisations which include government, corporate organisations, non-
governmental organisations, media, international organisations such as United Nations,
World Bank, International Monetary Fund (IMF), and so on. Apart from the above,
it is observed that the important contribution is being made by community based
organisations (CBOs) at the local level to the governance process.
CBOs are membership or non-membership based organisations, which predominantly,
exist at the local level. They discuss and solve the problems at their place of existence.
We may also consider resident welfare associations as CBOs in the urban areas. Now,
let us recapitulate as to ‘what is governance’? It is the process of coordination among
the various actors in an organisation and to steer the structure towards achieving certain
goals. For example, government is a structure. There are various actors in the government.
It needs to be coordinated amongst all of them for the successful implementation of its
policies and programmes with people as major stakeholders. The existing research
provides evidence that there is direct relationship between socio-economic benefits
and active participation of stakeholders. If the stakeholders’ participation is limited, the
effectiveness of the programme is also limited. Another important aspect here is
communication. In the stakeholder’s governance, communication is a vital tool.
Communication determines the success and viability of the stakeholder’s governance.
Research studies indicate that the existing standard corporate model of one way
communication has been less effective in stakeholder governance. Unlike existing formal
communication pattern, stakeholders express their experiences, benefits and
disadvantages of certain programmes in a free manner, through the informal modes of
communication. It is more about sharing their experiences in the stakeholder governance.
Here we imply communication as a dialogue process. We all know how media as a
stakeholder discharges this role in generating opinions and creating an aware and
informed citizenry.
The significance of the participation and horizontal networking of public, private, and
nonprofit organisations in the stakeholder governance fosters better decision making
than the structure of governance as identified in the hierarchical organisations. In this
process, citizens’ involvement is also important. The role of government is to execute
public laws. Public agencies i.e government departments engage themselves in executing
laws and implementing programmes and policies. The activities of the government range
from legislative to quasi legislative and judiciary to quasi judiciary. Quasi legislative
processes in the new governance include deliberative democracy, e-democracy, public
conversations, participatory budgeting, citizens’ juries, study circles, collaborative policy
making, and other forms of deliberation and dialogue among stakeholders and citizens.
Quasi Judicial processes include alternative dispute resolution such as mediation,
facilitation, arbitration and so on.
58
Check Your Progress 1 Stakeholders in
Governance
1) What do you understand by the term stakeholder?
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2) Explain stakeholder theory.
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4.5 SIGNIFICANCE OF STAKEHOLDERS IN THE

GOVERNANCE PROCESS
You all must be familiar with the terms ‘alliances’ ‘partnership’ ‘multiple stakeholders
groups’ in the context of governance. Whatever we may call, this encompasses groups
of people engaging themselves in the negotiations to safeguard the interest of their groups
in the policymaking process. Such negotiations do not happen in hierarchical organisational
structure. The stakeholder governance model is emphasised in the horizontal
organisational structure. It ensures flexibility, diversity and informal exchange of ideas.
Networking of various actors in the society for the benefit of all is another important
underlining factor in stakeholder governance. According to Rhodes (1997), networks
in the horizontal structure are sometimes very powerful and are able to sustain pressures
from the State and can able to perform autonomous regulatory role within their sector.
They are committed to find solutions for the complex socio- economic problems
collectively. As we are aware, the centralised planning and policy making have certain
disadvantages. It does not fulfil the needs of all sections of the society and fails to
engage stakeholders in policy making. Alternatively, the decentralised governance and
public policy making forms are directly engaging people, trying to find solution for
complex social problems. It also ensures institutional interdependence and
interconnectivity. Apart from negotiation and arriving at solutions, multi- stakeholder
involvement is ensured for the implementation of policies in the horizontal organisational
structure. The existing practices bring out that direct stakeholders’ involvement and
inter- organisational collaboration brings positive impact in the governance process and
benefits all stakeholders for the sustainable use of resources, successful implementation
of public policies, knowledge creation, development of social capital, sharing of benefits
by entire community and addressing needs of women and marginalised. The relevance
of stakeholder participation is more in the areas of environmental sustainability, disaster
risk management, land usage, community based planning, and so on. The community 59
Government and based organisations play a significant role in identifying, protecting, preserving and the
Governance : Concepts sustainable use of common property resources. Studies indicate that if the CBOs follow
democratic principles of inclusiveness, trust, making rules for the benefit of entire
community, rapid and affordable cost for conflict resolution, and minimum interference
by external authorities, there are positive results for the conservation and use of resources
available in the local areas.. So far, we have discussed about the concept of stakeholder,
key components and significance of stakeholder governance. We shall now discuss
forms of stakeholder involvement in governance and give few examples to substantiate
it.
4.6 STAKEHOLDER INVOLVEMENT IN

GOVERNANCE: FORMS
The involvement of stakeholders takes various forms. This includes:
• Communication: Through information sharing to all those involved/affected.
• Consultation: Gather information and experiences from stakeholders for final
outcome.
• Participation: Involving them in policy/project.
• Representation: Including them to help in determining choices.
• Collaboration and Partnerships.
• Co-decision and Co-production: Balanced sharing of power among the
stakeholders who are involved.
Participatory forms of democracy are part of stakeholder governance. The active citizen
participation strengthens democracy which results in better policies. Scholars like Barber
(1984) distinguished strong democracy from liberal democracy. According to him, liberal
democracy proposes individual well being. Alternatively strong democracy considers
welfare of the entire society or community. Strong democracy also fosters participation
of citizens. Scholars are also advocating participatory forms of democracy in which
active citizens participate in the process of governance through discussion, multi -
stakeholders participation, public meetings, referendum, interactive polling. (see Brewer
and DeLeon, 1983; DeLeon, 1992; Dryzek, 1990; Fishkin, 1991; Hayward, 1995;
Kann, 1986; Pateman, 1970). The stronger forms of democratic participation
complement the interests of the stakeholders, who actively participate in policy making.
We shall be discussing the example of people’s plan campaign to understand people’s
participation in the policymaking process.
The 73rd Constitutional Amendment Act formally paved the way for the establishment
of three tier structure in the rural areas. The first level of structure is gram panchayat,
having one more structure in it called gram sabha. It is a primary deliberative body
having membership of all electorates in the gram panchayat. The establishment of three
tier structure at the rural level helps in bringing transparency, accountability and
participation in the panchayat governance. The panchayati raj institutions are local self-
governing institutions. In Kerala, the Left Democratic Front government introduced
people’s plan campaign in the year 1996 after the passage of 73rd and 74th Constitutional
Amendment Acts in the year 1992. The objective of people’s plan campaign is to bring
in bottom up planning. Each panchayat is expected to create a plan by involving all
stakeholders in the gram panchayat. First, they had to conduct meetings at ward levels.
The ward level plans were to be consolidated at the gram panchayat level. The plans of
all panchayats were integrated as block plans which were consolidated at the district
60 level as district plan. The people’s plan campaign addressed welfare issues and improved
infrastructure. It also increased the focus on public participation. About 1,20,000 members Stakeholders in
of the task force were involved in this process of plan development. In present times Governance
also in the gram sabha meetings, all stakeholders are allowed to propose development
projects, select project beneficiaries and evaluate projects. They also use social audit
to scrutinise panchayat accounts in the gram sabha meetings. Along with this, a wide
range of accountability mechanisms such as Right to Information (RTI), citizens’ charters,
ombudsman, appellate tribunal, performance and local funds audit have been employed
to improve governance. This reflects active participation of people working with the
government at grassroots level and addressing their issues and problems through collective
action, a direction towards bottom up approach.
A dialogue process among stakeholders is important for the successful implementation
of legislative decisions at the international, national, state and local government level.
Here we need to bring another point that is how legislative and judicial officials engage
in dialogue process. It is important for them to imbibe the necessary skills in the process
of engaging dialogue with citizens. This includes convening of meetings, mobilising the
citizens, initiating constructive dialogues, conflict resolution and reaching agreement.
The new governance model is not only developing the tools but also practices important
to the process. The people’s participation in governance process is priority. As we
have already learnt in the previous units, governance involves networking. Rosenau
(1992) defines governance as the creation, execution, and implementation of activities,
backed by shared goals of citizens and organisations, which may or may not have
formal authority and policing power. It is an important component in the stakeholders’
governance. Sharing of information openly and maintaining transparency in governance
is important. Dialogue which is important in participatory democracy ensures reciprocity,
strengthens collaboration and promotes shared decision making.
4.7 STAKEHOLDERS IN GOVERNANCE:

EXAMPLES
George Frederickson (1991) had put forth five postulates on the role of public in the
realm of public administration. These encompass public as interest groups, consumers,
represented voters, clients and citizens. According to this theory, public in general are
viewed as passive recipients of benefits rather than active participants. Frederickson
argues that a general theory of the public must be based on four requisite elements.
These include the Constitution, the enhanced notion of virtuous citizen, systems and
procedures for responding to the collective and inchoate public, and benevolence or
public service in the greater good. The virtuous citizen is one who understands the
founding documents (the Constitution), takes individual moral responsibility, and exercises
civility, including forbearance and tolerance in discourse. Close links between citizens
and government create informed citizenry whose voices can be heard. Responsibility
and accountability between administrators and citizens improves governance which
requires strengthening of institutions at urban and local levels.
Democratic processes among citizens who are key stakeholders through dialogue and
deliberations enhance governance. Conflict among interested parties occurs in many
times in public decision making, policy making, implementation and enforcement. By
moving away from interest groups’ competition toward consensus building, these new
governance processes serve as mechanisms for cooperation and coordination among
diverse participants in the policy process. As a result, these processes may increase the
consensus building and may contribute positively to participants’ sense of justice, fairness,
and the perceived legitimacy of the institution involved. The operationalisation of Right 61
Government and to Information (RTI) as a powerful tool to the citizens to get necessary information from
Governance : Concepts the government is the result of success of Jan Sunwai in the state of Rajasthan, and
mobilisation of masses by Kisan Mazdoor Shakti Sanghatan. Through this citizens
became part of the democratic process. RTI movement created democratic space for
the citizens.
The introduction of National Forest Policy in the year 1988 and the subsequent
introduction of joint forest management in the year 1990 are the important milestones in
the stakeholder participation in the programme. It is implemented with the objective of
reducing deforestation with the active participation of local communities along with
forest department. The afforestation programme links the local communities by identifying
their economic interest in the forests. This makes the local communities as stakeholders
to protect and work towards sustainable use of forest. This includes the right to use of
minor forest produce and sharing of timber harvest with forest department. Minor
forest produce include non timber items such as resins, fruits, seeds, honey, medicines,
tobacco, betel leaves and bamboo. If the villagers fail to cooperate, the revenue sharing
may stop and the forest would be owned by the forest department. There is no transfer
or lease agreement with joint forest committees. The joint forest committees are formed
at the village level. They are responsible for managing the forest resources. The joint
forest committees develop micro plans relating to planting of trees, restoring of degraded
areas and harvesting. Some studies carried out in villages of Maharashtra and Rajasthan
clearly show that women are important stakeholders in the natural resource policy of
the state. Women function close to the nature and they are involved in various activities
such as collection of firewood, fuels and food from the forest and domestic use. The
active participation of women in the joint forest committee meetings in the state of
Maharashtra explored the challenges in maintaining sustainable use of forest produce.
Community Based Planning
The existing studies also prove that implementation of government programmes and
policies within the framework of rules and regulations did not provide expected results.
The communities encounter difficulties in functioning in a top-down system. Instead,
institutionalising a broad system that is bottom-up based on their needs give fruitful
results. Coordination, shared values and personal commitments are more effective than
adherence to rules and regulations. Participation increases legitimacy and promotes
coordination. Micro Plan is one of the techniques or tools used in the community based
planning. Micro planning is a process that builds the capacity of the community to
analyse their own situation and work on it to create a better future. The common goals
need to be arrived by understanding ‘what development means?’ and ‘what will the
common priorities for everyone?’As you are aware, in India, due to centralised planning
being in existence since first five year plan (1951-56), the grassroots level mobilisation
and participation of people could not take place in the planning process. It failed to
take into cognisance the capacity of the local people and the existing available local
resources to utilise in a more effective and efficient manner. The people could not
consider themselves as stakeholders. The 73rd and 74th Amendment Acts provided
Constitutional guarantee to the villagers and urban dwellers to utilise available local
resources for the implementation of development programmes. Thus, panchayats and
municipalities are considered as development institutions at the grassroots level. The
micro planning process facilitates gram sabha members to arrive at their action agenda
engaging government, elected representatives and other key actors in the process of
village development. Here, the stakeholders are people of village. The end result of
micro planning work is that the village community decides for itself the nature of
62
development they envisage. Micro-planning is participatory, community-based, problem-
driven and designed to formulate policy with relevant inputs drawn from the local level. Stakeholders in
The micro plan is a process that builds the capacity of the community to analyse their Governance
own situation and work on it to create a better future.
The Delhi Metro Rail Corporation (DMRC) is an example of collaborative venture
between central government and Delhi government. It has apart from these two other
stakeholders, the external funding agency Japanese International Cooperation Agency
(JICA), consultants, contractors and other agencies. The success of agreements reached
among the stakeholders and the efficiency can be considered as stakeholder satisfaction
for all those involved in the collaborative venture (Ramesh, 2015).
Globally also there are several practices of engagement of stakeholders in several areas.
In Quebec, Canada, public, private and not for profit actors discuss and decide on
management of water resources at the basin level and jointly design the river basin
management plans. There are several engagement mechanisms indicating clearly the
responsibilities ranging from information sharing and empowerment to the autonomy of
actors in taking informed decisions in water resources management. In France, the
water and sanitation service provider of the city of Grenoble engages with consumer
associations to decide on water prices. On the initiative of citizens and an NGO, a
committee of water and sanitation users was created. An agreement between this
committee and public service provider stipulates the roles, responsibilities and modalities
of joint activities related to information sharing as well as deliberations on water tariffs
and quality. In the State of Arizona in USA, climate change driven stakeholder engagement
to tackle the problem of extreme heat conditions was put in place. The effectiveness of
water harvesting strategies was disseminated by the University of Arizona Water
Resources Centre. One of the measures was development of water harvesting assessment
toolbox and its testing was done through workshops involving a wide range of
stakeholders from utilities, city departments, county government and businesses.
There are challenges too in ensuring effective stakeholder governance. This includes:
• Lack of clarity on ensuring inclusivity and equity in governance through identification
of stakeholders who are directly and indirectly affected.
• Inadequate institutional arrangements.
• Absence of political will and leadership.
• Lack of clarity on roles and responsibilities of stakeholders and expected outcome.
• Resistance to change.
• Inadequate monitoring and evaluation mechanisms to assess the efficacy of
stakeholder governance.
In governance, beyond the traditional actors there are other players who wield influence.
Understanding their dynamics and engaging them through communication, consultation,
and participation is very important. This calls for establishing a suitable institutional
environment that facilitates information dissemination, exchange and building consensus
on governance issues.
1) What are the various forms of stakeholder involvement in governance?
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Government and .....................................................................................................................
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2) Bring out the challenges in stakeholders governance.
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4.8 CONCLUSION
In this unit, we have learnt about significance of stakeholders in governance. There are
various tools and techniques to enhance stakeholder’s participation in the governance.
These include decentralisation, deliberative democracy, community based planning,
grassroots governance. There are various efforts and initiatives to ensure stakeholders
participation in India. This was understood by studying people’s plan campaign in Kerala
and community forest management. Communication is very important in stakeholder’s
governance. All these aspects were elaborated in the Unit.
4.9 GLOSSARY
Common Property Resources: These are natural resources owned and managed
collectively by a community or society than by individuals. Some examples include
fisheries, forests, irrigation systems and so on.
Corporate Governance: It is the system of rules, practices and processes by which a
firm is directed and controlled. It essentially involves balancing the interests of company’s
stakeholders such as shareholders, management, customers, suppliers, financiers,
government and community.
E-democracy: In the era of communication, Information Communication Technology
(ICT) plays an important role in everyone’s life. In the e-democracy, usage of ICT
tools is important to enhance people’s participation and deepening democracy.
Social Capital: It broadly refers to networks of relationships among people. It refers
to those factors of effective functioning of social groups that include interpersonal
relationships, a shared sense of identity, shared understanding, shared norms, values,
trust, cooperation and reciprocity.
4.10 REFERENCES
Bingham, L., Blomgren, T.N. & O’Leary, R. (2005). The New Governance: Practices
and Processes for Stakeholder and Citizen Participation in the work of the government.
Public Administration Review. 65(5), 547-558.
Bovaird, T. & Loffler, E. (Eds.) (2016). Public Management and Governance. (3rd
64 ed.). New York, USA: Routledge.
Freeman, R. E. & David, L.R. (1983). Stockholders and Stakeholders: A New Stakeholders in
Perspective on Corporate Governance. Springer. 25(3). Governance
Frederickson, G.H. (1991). Toward a Theory of the Public for Public Administration.
Administration and Society. 22(4).
IDFC Foundation. (2013). India Rural Development Report 2012-13. New Delhi,
India: Orient Blackswan Private Limited.
Kuhn, T. & Deetz, S. (2008). Critical theory and corporate social responsibility:
can, should we get beyond cynical reasoning? Oxford Handbook of Corporate
Social Responsibility. Oxford, UK: Oxford.
OECD. (2015). OECD Studies on Water, Stakeholder Engagement for Inclusive
Water Governance. Paris, France: OECD.
Pierre, J. & Peters, B.G. (2000). Governance, Politics and the State. London, UK:
Macmillan Press Limited.
Ramesh, C. (2015). Collaborative Governance in Delhi Metro Rail Corporation: An
Urban Transportation Venture. Administrative Change. 42(2).
Roy, A. (2006). Dialogues No.2, April-June 2006.
Rhodes, R.A.W. (1997). Understanding Policy Networks, Reflexibility and
Accountability. Buckingham, UK: Open University Press.

EXERCISES
• A stakeholder is an individual or group or an organisation that has a vested
interest in an organisation or project or any programme of government.
• Stakeholders can be citizens, community organisations, non-profit
organisations, business, media, public agencies, elected representatives, trade
unions.
• Stakeholder having interest or stake in any activity or programme has the
ability to influence the outcome positively or negatively.
• Stakeholder theory is a conceptual framework of business ethics and
organisational management that addresses the moral and ethical values in the
organisational management
• As per this theory, stakeholders are not just the people who own the stock in
the organisation.
• It encompasses all those to whom the business has the obligation which
includes employees, suppliers, customers, local community and so on.
• The corporate governance needs to take care of moral rights of stakeholders.
65
Government and • The stakeholder theory integrates resource based view, market based view
Governance : Concepts and socio-political aspects.
• Communication
• Consultation
• Participation
• Representation
• Collaboration and Partnerships
• Co-decision and Co-production
• Difficulties in ensuring inclusivity and equity in governance through identification
of stakeholders who are affected directly and indirectly.
• Inadequate institutional arrangements.
• Absence of political will and leadership.
• Lack of clarity on roles and responsibilities of stakeholders and expected
outcome.
• Inadequate monitoring and evaluation mechanisms to assess the efficacy of
stakeholder governance.
66
BLOCK 2
GOVERNANCE AND DEVELOPMENT
68 Blank
UNIT 5 CHANGING DIMENSIONS OF
DEVELOPMENT*
Structure
5.0 Objectives
5.1 Introduction
5.2 Development: Conceptual Framework
5.3 Concept of Development: Changing Dimensions
5.4 Theories of Development
5.5 Approaches to Development
5.6 Women and Marginalised as Constituents of Development
5.7 Conclusion
5.8 Glossary
5.9 References
5.0 OBJECTIVES
• Explain the meaning of development;
• Discuss the various theories of development;
• Trace the trajectory of the process of development;
• Explore the changing dimensions of development; and
• Analyse the emergence of women and marginalised as constituents of development.
5.1 INTRODUCTION
The term “development” is ambiguous and vague. It is often gauged by economic
parameters. Many consider development to be holistic that brings in overall betterment,
in personal, professional and social life. If the term development concerns a country, it
may refer to the social, political and economic features of the same. In the era of market
economy and technological advancement, it can even refer to developments in
information and communication technology. Irrespective of the various aspects related
to this term, the present unit discusses and elaborates the meaning of development in a
holistic perspective. It also explores how the dimensions of development are viewed
differently in different periods to comprehend the changes in the socio-economic and
political arena of a country.
* Contributed by Dr. G.Uma, Assistant Professor, School of Gender and Development Studies,
IGNOU 69
Governance and
Development 5.2 DEVELOPMENT: CONCEPTUAL
FRAMEWORK
Development is bringing about change, a process that starts with setting of goals. The
next step is identifying means to achieve the goals. Whether the process of change
brings in positive results or not is debatable. Development is perceived variedly by the
extent of change and progress, rapid industrialisation, adopting latest technologies,
reducing poverty and inequality and achieving economic growth and so on. Regardless
of this, development is a multidimensional and a multisectoral process. It is about using
the available resources to improve the quality of life of the target population.
Usually the development of a country is measured by its economic growth and the
employment opportunities it offers. It is beyond doubt that economic development is
important. There are various approaches for development. One approach is, giving the
choice to people and enabling them to live a life they value. Globally, the concept of
development gained momentum after the Second World War. The process of
decolonisation and the realisation of the importance of growth and development by the
then newly decolonised states led to the implementation of huge projects. In the newly
independent countries such as India, construction of large dams and establishment of
industries was considered to be part of the modernisation process. Jawaharlal Nehru,
India’s first Prime Minister (1947-64), in an oft-quoted speech in July 1954, said a
dam was a “modern temple”. He also told the people, who were displaced due to the
construction of the Hirakud Dam in 1948 that, “if you are to suffer, you should suffer in
the interest of the country”. Gradually the notion of development underwent change.
Two important economic changes led to the debate on development – capitalism and
industrialisation. During the 18th century, these gradually spread to the United States of
America, Western European countries and Japan in the 19th century, later to other
parts and recently to China and a few South Asian countries. There are attempts to
explore the reasons for poverty, inequality, environmental degradation, financial crisis,
lack of access to basic amenities for a considerable part of population in the world and
climate change. This has lead social scientists undertake studies to understand the process
of development. Most of these studies concentrate on the huge economic, social and
political transformation the world is undergoing and the technological, cultural changes
that complement this change. There are two kinds of development. The first one is the
State-led development. The former Soviet Union and India followed this model and the
latter till 1991. On the other hand, the United States and western European Countries
followed market-led development, where the State’s interference in the economy is
limited. At the international level, development of theories and various policy approaches
helped countries in bringing about appropriate policies to intervene in the process of
development. At the same time, efforts of people at local level to improve their lives are
also noteworthy. But these initiatives many a times are local/ area specific and these
may be replicated or not. According to Papaioannou and Butcher (2013) “development
here implies actions aimed at achieving something that is desirable or progressive”.
When we talk about development, it relates to the improvement in the life of the humans,
the betterment or improvement in society that brings good change (Chambers, 1997).
Development is in a way multidimensional encompassing various dimensions-economic,
social, human, cultural, and political that enhance the quality of life of people. There are
debates on the changing dimensions of development, means of achieving them, costs
and benefits and its impact on the marginalised population and ways to integrate them in
the process of development to ensure social justice.
70
Changing
5.3 CONCEPT OF DEVELOPMENT: CHANGING Dimensions of
DIMENSIONS Development
Social Scientists from Ricardo to Marx have addressed economic development in their
theories. Interpretation of social and production relations dominated in their development
thinking. As mentioned earlier, during the cold war period, two competing development
strategies were practiced – central planning in the Soviet Union, East European countries
and China and the western development strategies (Pieterse, 2001).
In the nineteenth century, development meant remedies for the shortcomings and progress
to the development (Cowen and Shenton, 1996). According to Pieterse (op.cit.),
progress and development (which is often viewed as a seamless web) are in contrast
with each other and development complements progress.
The above discussion clarifies that the twentieth century development thinking in Europe
and the colonies are the reactions and experiences of nineteenth century. They tried to
understand development and progress through the policy failures of industrialisation
that impacted people on several fronts.
Table 1: Conceptualisation of Concept of Development over Time
Period Perspectives Meaning of Development

1850 Latecomers Industrialisation, catching up
1870 Colonial Economies Resource Management,
Trusteeship
1940 Development Economies Economic( growth)-
industrialisation
1950 Modernisation Theory Growth, political and social
modernisation
1960 Dependency theory Accumulation- national,
autocratic
1970 Alternative development Human flourishing
1980 Human Development Capacitation, enlargement of
people’s choices
1980 Neoliberalism Economic growth, structural
reform, deregulation,
liberalisation, privatisation
1990 Post development Authoritarian, engineering
Source: Pieterse, Jan Nederveen, Development Theory, Deconstructions/Reconstructions, 2001
Before we discuss modern development economics and related theories, let us examine
the trajectory of the development theories. Wherever colonial economy dominated like
Europe and colonised countries, these went through different stages of development. It
started with trade and then plantation and mining. In the later stages of colonial economy,
there was trusteeship and development of local economy. Industrialisation was also a
part of the colonial economy.
In present day economy, the concept of development is associated mostly with economic
growth. Along with economic growth, political modernisation and social development
also takes place. In the dependency theory, the core meaning of development is
accumulation of wealth which leads to “development of underdevelopment” (Pieterse,
op.cit.).
71
Governance and Later on there were discussions regarding alternative development, in which Amartya
Development Sen’s human development and capability approach are considered important. We have
already discussed about this in Unit 11on Sustainable development of this Course. In
the twenty-first century, two dominant development strategies prevail. One is neo-
liberalism, where the State was to play a minimum role and the market forces take
control of the development. In the neo-liberal strategy, economic development can be
achieved thorough de-regulation, decontrol, structural reforms, liberalisation and
privatisation. Here, economic development and growth are significant, but the means to
achieve this are considered to be “anti-development”. There is no strong alternate model
to neo-liberal economic development. However, there are some approaches such as
local development, people’s participation, community development and Gandhian
development model. Thus development includes various stages, activities and factors.
Technology also plays a significant role.
There are different ways to approach the concept of development. The first one is to
trace the history of development discourse to deconstruct the process of development.
The second is to approach development in a historical context and explore how it
transforms according to the circumstances and changes, the world faces over a period
of time. The third view is to recombine these development views and dimensions and
reconstruct them (Pieterse, op.cit.).
5.4 THEORIES OF DEVELOPMENT

In this section, we shall discuss key development theories.
Modernisation Theory
The modernisation theory emerged during the period 1945 to 1960 in America and
Europe. The main proponents of this theory have been W.W. Rostow, Emile Durkheim,
and Max Weber. The newly independent states experienced poverty and low economic
growth. A few countries too faced political unrest too. After the end of the world war II,
ideologically the world split into two. The modernisation theory equated development
with modernity. The developed countries were advanced in science and technology
and industrialisation and this gave more importance to individualism. According to this
theory, all societies go through similar stages of development for progress. Rostow
(1960) gave five stages of development to become modern. Society can be seen as
‘traditional’ in the first step. During this period, society would be dominated by poverty
and they may use primitive methods for production and cherish traditional values. The
second stage is called ‘pre-conditions for takeoff’. In this stage, countries take outside
help for development. The third stage is the ‘take off’. Here the country gives emphasis
on investment and high economic growth. The fourth step is called ‘drive to maturity’.
In this stage, prosperity can be witnessed among all the people. The fifth and final stage
is ‘high mass consumption’. This school of thought considers that to a great extent,
traditionalism and resistance towards modernisation are responsible for under
development of the third world countries and it makes a case for emulating the USA/
European model of development.
This theory was criticised by proponents of dependency theory of development who
were of the view that exploitation of developing countries by the developed is to a great
extent responsible for their underdevelopment.
Dependency Theory
It was proposed by Andre Gunder Frank in 1960s and 70s by rejecting modernisation
72 theory. According to him, underdeveloped countries were not primitive, but they were
exploited by the developed countries. Developed countries generally would provide Changing
obsolete technology to these countries. It is difficult for developing countries to survive Dimensions of
Development
with outdated technology. The developed countries would make poorer nations depend
on them for technology and resources. Dependency theory evolved as a sharp reaction
to the conventional approach to development in the aftermath of the second world war.
The protagonists considered underdevelopment as not a location but a process of link
of impoverishment to development. The developed nations have a tendency of usurping
natural resources, cheap labour and take advantage of market conditions prevalent in
under developed countries. This is done for their advantage and creates dependency of
under developed countries.
World-Systems Theory
It criticised modernisation theory. It insisted on exploitation-free world. It emphasises
on areas, such as economics, culture, history, sociology, politics and development
studies, unlike modernisation and dependency theories. According to this theory, two
types of systems prevail in the world. One is world empire, like the British empire, with
a single political centre. Another one is world economy, that is, capitalism with multiple
centres and multiple cultures. This theory was proposed by Immaneul Wallerstein.
According to him, the entire economic world is divided into core and periphery. The
core would control the peripheral and semi-peripheral areas through production, that
is, labour, raw materials, capital investment, brain drain and so on.
Stand-Point Theory
According to this theory, each one in this world would take a position to view the
world. Each social group in a society has a perception. The perception of one group
affects other individuals or groups. As per stand-point theory, the privileged class’s
position in the society provides limited understanding about the others in the same. It
further added that the ruling groups dominate subordinate groups. The opinions of
subordinate groups hardly have an impact on governance. Hence, the marginalised are
generally not a part of the process of development.
So far we have seen various theories of development. Let us now discuss the various
approaches to development.
1) Explain the concept of development.
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2) Discuss modernisation theory.
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Governance and .....................................................................................................................
Development
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3) What is dependency theory of development?
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5.5 APPROACHES TO DEVELOPMENT

We shall now examine important approaches to development.
Neo-liberalism
The current neo-liberal policies emerged from capitalism, which was conceived 200
years ago. It was proposed by Adam Smith. The present neo-liberal approach that
emerged during 1980s lays emphasis on free market, less governmental interventions
and restrictions for import and export of products. The neo-liberal thinking started
gaining prominence in 1980s and continued till 1990s. It is reflected in the policies of
international organisations such as the World Bank and International Monetary Fund
(IMF). The main purpose of these institutions is to expand neo-liberal economy and
stabilise currency in the world. These were needed to be accomplished during the
balance-of-payments and financial crisis in several countries. The General Agreement
on Tariffs and Trade (GATT) was added later. Neo-liberals favour market forces for
people’s benefit instead of the State’s intervention. As a result, they strongly believed
that if something went wrong in the market, it would take care of itself. The market
could enforce law, stabilise currency and uphold contracts between different stakeholders.
The competition between various players in the market brings efficient production and
the distribution of services. Also creation of more wealth through market activities gives
benefits to everyone. Eventually wealth shall trickle down to the poorest of the poor.
Neo-liberalism does not favour State intervention in economic matters. It fosters individual
entrepreneurial freedom and skills and gives importance to free market and free trade.
Minimal State intervention in market is preferred.
Structuralism
According to structuralism, market activities lead to the establishment and reinforcement
of different structures instead of economic growth. Apart from market, there are various
structures like class, caste and gender in the society. It is important to consider them as
well, apart from economic growth for development. Some structures have a powerful
impact on the society. Some may act in a passive way. Some may benefit from market-
based economic growth due to their distinctive structural characteristics. Others may
not benefit. It is the responsibility of the government and international agencies to ensure
meaningful and fair distribution of wealth. It is also their function to regulate market
activities for ensuring social justice. The neo-liberal economic activities believe in trickle
74
down effect. The existing research studies point out that wealth never reaches the Changing
marginalised. Market economy has produced huge income inequalities. The Oxfam Dimensions of
Development
Report (2018) conveys that one per cent of India’s richest hold 58 per cent of the total
wealth of the country. As many as 57 billionaires in India hold USD 216 billion worth of
wealth. According to the global wage report 2018-19 of International Labour
Organisation, gender based wage discrimination exists in India. The wage gap between
men and women persists in India. Women are paid the most unequally in India, compared
to men, when it comes to hourly wages for labour. On an average, women are paid 34
per cent less than men. This gap in wages, known as the gender wage gap, is the highest
among 73 countries studied in the report.
Interventionism
It is a synthesis of structuralism and neo-liberalism. According to interventionists, both
the market and the State are important. They need to work together to create a conducive
environment for development. Development should also address inequality, redistribution
of wealth and sustainable environment. Some of the social protection schemes and
programmes such as old age pension, free education for all, mid-day meal scheme,
scholarships to the disadvantaged sections of the community, etc., are in this direction.
The aim of the social protection programmes are to reduce vulnerability and promote
individual, community and societal resilience. At the international level, the social
protection schemes were successful to a large degree. For example, as indicated by
various studies, South American countries have implemented cash transfer schemes for
low economic groups and it had positive impact on the women and vulnerable. Like
cash transfer scheme in Sub Saharan Africa, pro-poor insurance schemes too had
notable success. Even the states of Tamil Nadu, Andhra Pradesh and Telangana in
India have successfully implemented health insurance schemes for the poor and
marginalised.
The existing studies all over the world indicate that the social protection schemes proved
helpful for the poor and vulnerable to cope up with improved food security, opportunity
to work during agriculture work deficient season and increased access to basic amenities
like health and education. In India, the Social Protection programmes based on the
rights based approach, primarily have been reflected in the 12th five year plan and the
previous 11th five year plan even though the government implemented a number of anti-
poverty and empowerment programmes from 6th five year plan onwards. Among the
noteworthy schemes during this period, are Mahatma Gandhi National Rural Employment
Guarantee Scheme (MGNREGS), National Rural Housing Scheme (Indira Awas
Yojana), National Food Security Act 2013, Rajiv Awas Yojana (RAY) National Rural
Livelihoods Mission, Street Vendors Protection and Livelihoods Act, 2014. The shift in
government policies towards rights based approach was realised in the 11th five year
plan and it resulted in formulation of policies like right to education, right to work and
right to livelihoods. Some recent schemes include Pradhan Mantri Jeevan Jyoti Bima
Yojana (PMJJBY), Pradhan Mantri Bima Suraksha Yojana (PMBSY), Atal Pension
Yojana and so on.
People-centered Approach
The people-centred approach criticises all existing economic approaches. It focuses
on redistribution of wealth and education for all. It also emphasises accessible health
facilities. The government should be an enabler to improve the living conditions of people.
This approach is more concerned about the implementation of the principles of good
governance. Good governance proposes to concentrate on ensuring human rights, proper
functioning of the rule of law, strengthening democracy, promoting transparency and 75
Governance and accountability in the system. The people-centric approach stresses on participation of
Development people in all government activities to empower them. Here, participation would be
ensured by bringing change in the existing structures. In India, the 73rd Constitutional
Amendment Act and the subsequent State Acts created the ‘gram sabha’. All eligible
voters of the particular gram panchayat are members of the gram sabha. The State
panchayat Acts and the subsequent government orders mandated the gram panchayats
to conduct two to four gram sabha meetings in a year. The gram panchayats have to
submit its statement of accounts to the gram sabha. They also discuss the selection of
beneficiaries for various programmes. Apart from gram sabha meetings, non-
governmental organisations enable people to conduct social audit to bring transparency
in the governance process. Social audit is a tool through which government can plan,
manage and measure non-financial activities and monitor both internal and external
consequences of the various departments’ social and commercial operations. We shall
discuss the significance of social audit as a tool of accountability in Unit 12 of this
Course.
The Mahatma Gandhi National Rural Employment Guarantee Scheme is one of the
biggest anti-poverty programmes of the country, based on rights-based approach, which
has been operational since the year 2006. It provides legal guarantee for 100 days of
work in a year to India’s rural households, to adult members who are willing to do
unskilled manual labour. The gram panchayats have been delegated to implement the
programme in all parts of the country. Various factors contributed to the successful
implementation of the programme. The good governance principles of transparency,
accountability and participation of various stakeholders are incorporated in the
MGNREGS Act itself. Active participation of people in the gram sabha for the proper
selection of work sites and beneficiaries, has brought success to the programme. Social
audit provisions have been included in the act. The non-governmental organisations
along with beneficiaries conduct social audit to improve the successful implementation
of the programme.
Sustainable Development
The term ‘sustainable development’ came into use after the publication of World
Commission’s Report on Environment and Development in 1987. This approach gained
prominence in the wake of situation of distortion and excessive exploitation of natural
resources, posing harm to the environment in achieving economic growth and
development by nation-states. The Brundtland Commission for environment and
development in its report ‘Our Common Future’ made a case for sustainability being
the cardinal principal for all development initiatives. Referred to as Brundtland Report,
it defined sustainable development as ‘development that meets the needs of the present
without compromising the ability of future generations to meet their own needs’ (WECD,
1987). The United Nations Development Programme (UNDP) has defined sustainable
development as “development that not only generates economic growth but distributes
its benefits equitably, that regenerates the environment rather than destroying it, and
that empowers people rather than marginalising them. It is development that gives priority
to the poor, enlarging their choices and opportunities and providing for their participation
in decisions that affect their lives.” Sustainable development proposes to work for
ecological balance, conservation through participation of stakeholders, achievement of
social justice and equality and recognising cultural diversity. It attempts at maintaining a
balance between economy, ecology and society.
Human Development Approach
76 We have seen different theories and approaches to development. Many of these give
importance to economic growth, except sustainable development and people-centric Changing
development approaches. The objective for achieving economic growth is to create Dimensions of
Development
employment and wealth for the poor. As we have seen already in this unit, high economic
growth makes only a few people wealthy. The trickle down effect has not happened in
market economy.
We need to consider an approach to development in which, the objectives are to expand
peoples’ choices and peoples’ freedom. Human development approach puts people
first. A healthy economy, good education, job opportunities, access to good health
facilities, physical safety and a democratic government are proposed in the human
development approach. This approach is profoundly inspired by Amartya Sen’s
pioneering work in welfare economics, social choice, poverty and famine and
development economics. His capability approach has provided a paradigm for social
science and human development. In his book Inequality Re-examined he says “a
person’s capability to achieve functioning that he or she has reason to value provides a
general approach to the evaluation of social arrangements, and this yields a particular
way of viewing the assessment of equality and inequality”. The capability approach is a
broad normative framework, which evaluates social arrangements and the extent of
freedom people have, to promote or achieve what they value. It examines what people
are actually able to do, the range of alternatives they have while performing the functions
they value and to what extent they make decisions that matter to them.
It not only has philosophical foundation, but also measures the progress of a country
through human development indicators. United Nations Development Programme
(UNDP) publishes global national and regional human development reports every year
to assess the quality of life of people. The first Human Development Report, the brain-
child of the Economist Mahbub ul Haq was published in 1990. The findings of the
human development report were used as a tool for policy advocacy for further
improvement. The analysis draws up data regarding health, education, nutrition,
environment, political freedom, security and work. The Human Development Report
(2001) looks at human development as something more than the mere rise or fall of
national incomes. It is about creating an environment in which people can develop their
full potential and lead productive and creative lives in accordance with their needs and
interests. Development is thus about expanding the choices people have, and lives they
lead that they value. We have discussed in detail in Unit 11 of this Course.
Millennium Development Goals
The Millennium Development Goals (MDGs) were introduced in 2000. It is considered
the next stage of measurement after the human development indicators to measure the
progress of a country. The Millennium Development Goals (MDGs) are recognised as
guiding principles for countries seeking to eradicate poverty and improve the welfare of
people. There were eight goals and 21 related targets to be achieved by 2015 with
1990 value as the base and 60 indicators to monitor progress. The eight specific goals
include:
1) Eradicating poverty and hunger
2) Achieving universal primary education
3) Promoting gender equality and empowering women
4) Reducing child mortality
5) Improving maternal health
6) Combating HIV/AIDS, malaria and other diseases
77
Governance and 7) Ensuring environmental sustainability; and
Development
8) Establishing global partnership for development.
Sustainable Development Goals
On, 25 September 2015, 193 Countries of the United Nations General Assembly
adopted the 2030 Development Agenda. It identified 17 specific sustainable development
goals. All stakeholders agreed to work towards sustainable development. The Paris
Agreement on climate change also gave importance to limit the rise of global temperature.
The countries agreed to mobilise necessary resources to end poverty, fight inequality
and address climate change within the next fifteen years. Countries, irrespective of
being rich or poor, understand the significance of reducing poverty, address the need
for education, health, social protection and job opportunities along with economic growth.
To measure the progress, the countries agreed to collect necessary data in regular
intervals. The nations have been urged to work towards attainment of these goals.
• End poverty everywhere.
• End hunger, achieve food security and improved nutrition and promote sustainable
agriculture.
• Ensure healthy lives and promote well-being for all at all ages.
• Ensure inclusive and equitable quality education and promote life long learning
opportunities for all.
• Achieve gender equality and empower all women and girls.
• Ensure availability and sustainable management of water and sanitation for all.
• Ensure access to affordable, reliable, sustainable, and modern energy for all.
• Promote sustained, inclusive, and sustainable economic growth, full and productive
employment and decent work for all.
• Build resilient infrastructure, promote inclusive and sustainable industrialisation and
foster innovation.
• Reduce inequality within and among countries.
• Make cities and human settlements inclusive, safe, resilient, and sustainable.
• Ensure sustainable consumption and production patterns.
• Take urgent action to combat climate change and its impacts.
• Conserve and sustainably use the oceans, seas, and marine resources for sustainable
development.
• Protect, restore, and promote sustainable use of terrestrial ecosystems, sustainably
manage forests, combat desertification, and halt land degradation, and biodiversity
loss.
• Promote peaceful and inclusive societies for sustainable development, provide
access to justice for all and build effective, accountable and inclusive institutions at
all levels.
• Strengthen the means of implementation and revitalise the global partnership for
78
sustainable development.
Check Your Progress 2 Changing
Dimensions of
Note: i) Use the space given below for your answers. Development
1) What are millennium development goals?
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2) Explain sustainable development goals.
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5.6 WOMEN AND MARGINALISED AS

CONSTITUENTS OF DEVELOPMENT
We have traced the history and process of development. Having a look at these different
stages, the emphasis on inclusiveness in development has assumed significance over
time.. Among them, Esther Boserup’s study on African agriculture system opened up
the debate on gender concerns among policy makers. In this process, the United Nations
(UN) also played a key role in integrating gender into development debate. Since early
60s, the UN has been marking each decade as “decade of development”. The declaration
of first development decade (1961-1970) did not make any reference to women. A
brief reference to the importance of encouraging ‘the full integration of women in the
total development effort’, in the international development strategy for the second decade,
brought new consciousness. In the 1980s, it was proposed to have women “agents and
beneficiaries” in all sectors and all levels. The emergence of perspectives of Women in
Development (WID) Women and Development (WAD), Gender in Development (GID)
and Gender and Development (GAD) culminated in the integration of gender
perspectives into development. Accordingly, globally the empowerment of women to
make them key constituents of development process led to serious debates, discussions
and policy interventions.
India has also ratified various international conventions and human rights instruments to
secure equal rights for women. The National Commission for Women was set up by an
Act of Parliament in 1990 with the key objective of safeguarding the rights and legal
entitlements of women. The National Policy on Women Empowerment was passed in
2001. Similarly, the socially marginalised are being empowered socially, economically 79
Governance and and politically through many strategies by central and state governments. These include
Development schemes such as National Rural Health Mission, Ujjwala scheme, STEP, reservation of
seats in educational institutions, panchayati raj institutions, and so on.
5.7 CONCLUSION
We have discussed development theories and approaches in the unit. It is important for
us to understand the relationship of development with governance. Good governance
stresses on transparency, accountability, participation of stakeholders in the process of
governance, providing voice to the powerless against deprivation, giving choice and
interest to the people to grow. By looking at the good governance principles, the human
development and people centred approaches of development foster inclusive
development. Human development approach provides good understanding for
governance. Good economic development also needs to stabilise macro economy,
generate sustainable employment, ensure environmental protection and keep inflation
under control.
As we have explained there are various theories and dimensions in the development.
Development has been always perceived along with growth. Growth has contributed
for the economic development of the country. The theories of development and
approaches developed in the late 20th century and 21st century have focused on inclusive
development by incorporating governance principles.
5.8 GLOSSARY
Market Economy: It refers to an economic system where the prices for goods and
services are set freely by the forces of supply and demand. There is no interference in
this by the government.
STEP: Support to Training and Employment Programme for Women (STEP) aims to
provide competencies and skills that give employability to women and make them self-
employed /entrepreneurs.
Ujjwala Scheme: It is the scheme for providing LPG connections to women from
below poverty line (BPL) households. Under this, financial support of Rs. 1600 for
each LPG connection to the BPL households is given.
5.9 REFERENCES
Bhattacharya, M. (2001). Globalization, Governance and Development . The Indian
Journal of Political Science. 62(3): 349- 357.
Boserup, E. (2008). Women’s role in economic development. London, UK.
Earthscan.
Kothari, S. & Harcourt, W. (2004). Introduction: The Violence of Development.
Development. 47(1): 3-7.
Kabeer, N. (1994). Reverse Realities Gender Hierarchies in Development Thought.
New Delhi, India. Kali for Women.
Murthy, R.K. (2014). Feminist Debate on Development. MWG 009. Women and
Social Structure. New Delhi, India: SOGDS, IGNOU.
Papaioannou, T. & Butcher, M. (2013). International Development in a Changing
80 World. London, UK: Bloomsbury Academic.
Pattanaik, B.K. (2016). Introduction to Development Studies. New Delhi, India: Changing
Sage. Dimensions of
Development
Pieterse, J.N. (2001). Development Theory, Deconstructions/Reconstructions. New
Delhi, India: Vistaar.
Uma, G. (2014.) Development and Violence. MWG 009. Women and Social
Structure. New Delhi, India: SOGDS, IGNOU

EXERCISES
• The concept of development is multidimensional and multisectoral.
• It encompasses various dimensions-economic, social, human, cultural and
political that enhance the quality of life.
• Development is also bringing about change.
• The modernisation theory emerged during 1945-60 in America and Europe.
• All societies are considered to go through similar stages of development to
become modern.
• According to Rostov, one of the major proponents of the theory, every society
goes through five stages of development to become modern.
• These five stages are: a) traditional b) pre-conditions for take-off c) take-off
d) drive to maturity and e) high mass consumption.
• The theory propounded by Andre Gunder Frank in 1960s and 1970s,
considers the reason for underdevelopment in certain countries as exploitation
by the developed countries.
• Developed countries have the tendency of usurping natural resources, cheap
labour and take advantage of market conditions prevalent in under developed
countries.
• This results in their dependency on developed countries.
• Millennium Development Goals (MDGs) introduced in 2000 indicated certain
guiding principles for countries seeking to eradicate poverty and improve the
welfare of people.
• The MDGs outlined 8 goals and 21 related targets which were to be achieved
by 2015.
81
Governance and 2) Your answer should include the following points:
Development
• Sustainable development goals have been adopted by 193 countries of the
United Nations General Assembly.
• It encompasses 17 specific sustainable development goals.
• The goals aim at reducing poverty, address the needs of education, health,
social protection and job opportunities, for sustainable development.
• It focuses on building inclusive societies, strengthen the implementation means
and revitalise global partnership.
82
UNIT 6 STRENGTHENING DEMOCRACY
THROUGH GOVERNANCE*
Structure
6.0 Objectives
6.1 Introduction
6.2 Democracy: Definition and Features
6.3 Constitution of India and its Contribution to Strengthen Democracy through
Governance
6.4 Governance: Concept and Operationalisation
6.5 Strengthening Democracy through Governance: Measures
6.6 Conclusion
6.7 Glossary
6.8 References
6.0 OBJECTIVES
• Define democracy;
• Enumerate the features of Constitution of India that strengthen democracy;
• Explain the concept of governance and its operationalisation ; and
• Discuss various measures taken for strengthening democracy through governance.
6.1 INTRODUCTION
In 1947, India became nation of equals and chose to be a democratic State. It ordained
itself to have a government by popular choice by giving keen attention to the existing
melodies and pitfalls in socio-economic arena and to rectify the same through various
public policy measures. Our founding fathers decided that in such a diverse country, all
aspirations needed to be heard and reconciled. India since Independence has taken a
number of measures to ensure growth and development of the country. The efforts
taken immediately after independence in 1947 have given many positive results. The
Gross Domestic Product (GDP) of the country has increased, industrial production
went up along with developments in health, education and other areas. The population
of India in 1947 was 340 million. Only 12 per cent of the population in India was
literate in 1947 which was around 41 million people. According to 2011 Census, India’s
population is 121 crore and the literacy level has reached 73 per cent of its population.
India’s Gross Domestic product (GDP) in 1950 was $30.6 billion and this increased to
$2.54 trillion in 2017. It is now the fifth largest economy in the world. India has accounted
* Contributed by Dr. G. Uma, Assistant Professor, School of Gender and Development Studies,
IGNOU 83
Governance and for only 3 per cent of the World’s Gross Domestic Product (WGOP) at the time of
Development Independence. India now accounts for 8.5 per cent of WGDP (source IMF) in 2017.
It has produced about 50 million tonnes of food grains in 1947. Now there is a fivefold
increase in food grains production.
At the time of Independence, the incidence of poverty in India was about 80 per cent
or about 250 million. In 2017, the number of people below the poverty line (consuming
less than 2,200 calories a day) was around 269 million. The percentage of people who
are below the poverty line has come down to 27.5 per cent in 2015-16. By looking at
the above data, one can aver that, India is progressing steadily in every field. In this
situation, it is significant for the learners to appreciate the contribution of governance
towards strengthening democracy and development. In subsequent sections, we shall
discuss about how democracy has been strengthened through governance. We shall
now first define democracy and explain its features.
6.2 DEMOCRACY: DEFINITION AND FEATURES

Democracy is a system of government under which people either directly or through
their representatives govern the country. The representatives of the people of various
institutions such as parliament, state assemblies and local self governments get elected
at periodic intervals in a democratic State. Democracy considers ‘will of the people’ as
supreme. Apart from exercising their political power, all citizens are considered as equals
and they have freedom to exercise their choice to participate in development activities
in the chosen field such as economy, politics, education etc. Also the citizens get an
equal opportunity to get access to education, become learned, and informed by giving
constructive criticism to government or their representatives. Learned citizens are an
asset to the country because they can contribute to its overall development.
In a democratic State, citizens on attaining minimum required age get an equal opportunity
to vote and contest in the elections. Regular elections, freedom of speech, participation
in the political activities and expression of opinion and rights are also significant features
of the democracy. The rights of the individual are not about exercising their power
during election, it encompasses the right to discuss, give opinion and participate in a
sustained manner. Free discussion, association and periodic elections make democracy
stronger and successful. Democracy provides an opportunity for political participation,
political equality and right to people when situation demands to choose alternative
government. In a democratic set up every individual in the society shall be allowed to
express their opinion. At the same time, everyone in the democratic space is expected
to respect each other’s opinion. It is the duty of the law-making institution to make
necessary laws for every citizen to enable them access education, required health
facilities, freedom to use common resources, ensure equality between men and women
and other genders, equal opportunity to work, freedom from exploitation and so on.
Apart from getting rights, it is important for the citizens to discharge their duties and
responsibilities. Participation in the governance process, exercising adult franchise, fulfilling
responsibilities and getting required education makes democracy stronger. The political
parties, civic organisations, pressure groups and so on provide space for individual to
be part of it where they can represent and share their concerns and opinions.
There has been initially some skepticism among political thinkers about the sustainability
of democracy in countries which are multi-ethnic, multi-linguistic and multi-religious
nature. According to J.S. Mill, ‘‘democracy is next to impossible in multi-ethnic societies
and completely ‘impossible in linguistically divided countries”. Robert Dahl opined that
“the widespread poverty and illiteracy are anaethema to ‘stable democracy’” (Lijphart,
84
1996). India has challenged such contentions and is able to demonstrate that it can
survive, withstand troubles, sustain and survive. Now we shall discuss about the Strengthening
Constitution of India and its contribution in strengthening democracy. Democracy
through
Governance
6.3 CONSTITUTION OF INDIA AND ITS
CONTRIBUTION TO STRENGTHEN
DEMOCRACY THROUGH GOVERNANCE
In the previous sections, we outlined India’s developments in various fields and features
of democracy. Let us now discuss about Indian Constitution and its contribution towards
establishment of modern administrative units for the country’s governance. The
framework of governance, which we have adopted in 1947, has given fruitful results in
strengthening democracy as well as ushered in improvements in the various fields. The
long struggle to over throw colonial government has brought out the significance of
establishing good governance especially in line with the famous quote of Abraham Lincoln
‘of the people, by the people and for the people’. Gandhiji pointed to the establishment
self-governance at the village and the panch, while Ambedkar looked at the creation of
district and state-level institutions to break the power of locally dominant castes.
In India, on attaining independence, the then socio-economic changes and the rapid
developments in the world led to the adaptation of modern public administrative system.
The independent modern State adopted strategies that not only addressed administrative
challenges, but also attempted to strengthen democracy.
The framers of the Constitution have addressed the country’s geographical, socio-
economic and cultural diversities and added aspirations of every section of the population
in the Constitution. It is the fundamental legal document of a democratic country which
lays down the principles for its governance. The Indian Constitution, which came into
force on 26th January, 1950 has given a framework for governance and has assigned
clear cut roles for executive, judiciary and legislature.
The aim of the Constitution which is clearly stated in the preamble gives direction for
strengthening democracy. India on adopting the Constitution has become a sovereign,
Socialist, Secular, Democratic, Republic State. It has also given to all the citizens of
India, social, economic and political justice; liberty of thought and expression, belief,
faith and worship; equality of status and of opportunity and to promote among all
fraternity; assuring the dignity of the individual and the unity of the nation. It lays down
fundamental rights and the Directive Principles of State Policy which reflect the core
values of the Indian Constitution. Fundamental rights are justiciable rights. It protects
citizens from arbitrary prejudicial State actions. The Directive Principles of State Policy
further make the citizens realise their potential by making State to formulate appropriate
laws and policies for the socio-economic development. It attempts to ensure social
justice to the socially backward communities. Article 38 of the Directive Principles
states:
“The State shall strive to promote the welfare of the people by securing a social order
in which social, economic and political justice shall inform all the institutions of the
national life”.
We shall discuss few laws and policies related to education, health, and employment in
the subsequent section. The Indian Constitution treats all equally irrespective of their
caste, class, gender and place of origin. The Constitution of India provides democratic
political framework with three interrelated structures namely executive, legislature and,
judiciary to protect the rights and privileges of its citizens.
85
Governance and Along with above said features, it has given direction to modernise bureaucracy and
Development adopted parliamentary form of government with quasi federal structure. Presently India
consists of 28 States and 8 Union Territories. Each State is divided into districts which
have various small administrative and development units like block, Tehsil and village.
The lowest administrative unit in the rural areas is village and in the urban area is town.
The organic divisions of country into various units are helping citizens to connect
themselves to the nearest government structure to contribute meaningfully for
strengthening democracy and the development of the country. Similarly, establishment
of various divisions at the central and state levels have contributed towards effective
administration. The integration of above said features in the Constitution gives clear
direction to the administrative structures. This has given positive results, strengthened
democracy and has created confidence among numerous ethnic, religious and linguistic
groups for their participation in the political and administrative activities to strengthen
democracy.
6.4 GOVERNANCE: CONCEPT AND

OPERATIONALISATION
We shall start this section by defining ‘Governance’. We have already discussed about
this in detail in Unit 2 of this Course. Governance refers to ‘the traditions and institutions
by which authority in a country is exercised,’ including: the processes by which
governments are selected, monitored, and replaced; the capacity of the government to
effectively formulate and implement sound policies; and the respect of citizens and the
state for the institutions that govern social and economic interactions among them
(Kaufmann, Kraay, & Zoido-Lobatón, 1999). India has taken numerous measures to
strengthen democracy through governance.
As we have seen in the previous section, the Constitution of India has contributed
towards the democratising the State. Still, India and many developing countries have
faced governance and the balance of payment crisis in 1980s. It has necessitated India
to introduce new set of economic and political reforms. The emergence of the concept
of good governance as postulated by the World Bank brought new development
discourse. The indicators for good governance include transparency, accountability,
and rule of law, administrative efficiency, and also being pro-women, pro-poor, pro-
environment. There are various factors and structures in the society that prevent women,
marginalised and other sections to participate and bring meaningful changes in democracy
and development. In this situation, it is pertinent to make citizens empowered to bring
meaningful changes at all levels in the government. The above-mentioned good
governance indicators may certainly contribute for democratising the State further.
India post-independence, has realised the need of improving the socio-economic
conditions of the country. As we have discussed in the preceding sections, it has adopted
a large number of welfare measures along with developing the economy through State
led interventions. It has also addressed social justice through various legislative measures.
The efforts taken immediately after independence through policies have given desired
results. The percentage of people under the “poverty line” has decreased from nearly
half of the population in the 1960s to a little over a quarter during the past decade. We
shall reflect upon some of the measures taken in the five-year plans to address the same
in the next section. The economic crisis in the 1989 and the introduction of neoliberal
economic policies in 1990 have posed new challenges to the administrative structures.
The growing regionalism and addressing location specific problems in various areas
have brought in developmental challenges. Environmental degradation due to rapid
86 economic development has created challenges to the administration. The country has
realised the significance of deepening of democracy by giving power to the people to Strengthening
decide and solve their issues. Democracy
through
The initiatives in the realm of Information and Communication Technology (ICT) are Governance
ensuring the involvement of bringing citizens and community in the processes of
democracy and governance. We shall be discussing these in detail in Unit 8 of this
Course.
1) Explain the important features of democracy.
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2) What are Fundamental Rights and Directive Principles of State Policy?
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6.5 STRENGTHENING DEMOCRACY THROUGH

GOVERNANCE: MEASURES
We have seen the contribution of Constitution to strengthen democracy by its creating
appropriate administrative units, laws and governance process in the previous sections.
Now let us discuss about measures taken by the government to strengthen democracy
through governance process. The Government of India has taken a series of steps
towards strengthening of democracy and make citizens participate in the democratic
and development processes.
It started with Community Development Programme (CDP) launched in 1952 with the
aim of bringing about overall development of rural areas through people’s participation.
During the First Five Year plan itself the National Extension Service (NES) Programme
was introduced in 1953 to address the needs of marginalised, and poor in rural areas.
In the CDP, women extension workers like mukhiya sevikas and gram sevikas and
mahila samajams were organised for welfare and training activities. The erstwhile
Planning Commission in 1957, appointed a committee headed by Balwantrai Mehta to
study the CDP and NES programme to assess the extent of people’s participation and
to recommend ways to ensure this. The Committee recommended three-tier Panchayati
Raj System in the country with Zila Parishad at the district level, Panchayat Samiti at the
block/tehsil/taluka level and Gram Panchayat at the village level. Thus the three tier 87
Governance and system of panchayati raj came into existence. The Sixth Five-Year plan is watershed
Development for deepening development activities to all. It adopted multidisciplinary and multipronged
approach for all in the areas of health, education and employment. It gave special
emphasis on literacy and education of the women and marginalised. It referred to the
need for increasing enrollment of girls at the elementary level, promotion of functional
literacy and encouraging women’s education in backward areas. The Seventh Five-
year Plan too adopted multi pronged strategy. The plan assessed the success of the
Integrated Rural Development Programme (IRDP) and concluded that the women have
not benefitted from this programme. Hence, the Eighth Five Year Plan further expanded
the development activities. The introduction of the concept Self Help Groups (SHGs)
and its formation in various parts of the country strengthened democracy. This was
introduced in the ninth plan. The SHGs have developed linkages with various institutions
and structures in the society and they were able to foster democratic participation. The
Tenth Five Year Plan set monitorable targets like reducing poverty and increasing literacy,
ensuring that all villages must have sustained access to potable drinking water within the
plan period, providing gainful and high quality employment over the tenth plan period.
The 11th Five Year Plan emphasised on inclusiveness in the policy making. Like previous
plans, it has also set monitorable targets. The 12th Five Year Plan took cognisance of
the complexities of development in the diverse countries like India and the progress that
can be achieved through government action along with the contribution of various players
in the society like non-governmental organisations (NGOs), and private sector. It gave
emphasis to inclusive growth and bringing different stakeholders together to achieve
growth and development.
The 73rd and 74th Constitutional Amendment Acts (CAAs) enacted in 1992 have created
permanent constitutional structures at the rural and urban areas such as panchayats and
municipalities to make people participate in the process of governance to deepen
democracy. The features of 73rd and 74th CAAs such as creation of Gram Sabha,
reservation of seats for women, Scheduled Castes (SCs) and Scheduled Tribes (STs)
at all levels and all positions, uniform five year term for rural and urban local bodies,
constitution of election commission at the state level to conduct local bodies’ elections
exclusively, power to levy taxes, collect and appropriate taxes within their jurisdictions,
constitution of State Finance Commission (SFC) to share revenues, further contributed
towards strengthening of democracy. The 74th CAA introduced a significant feature in
the Constitution. Articles 243G and 243W of 73rd and 74th CAAs make provision for
urban and rural local bodies to prepare plans for economic development and social
justice at their levels. Article 243 ZD of the 74th CAA requires the establishment of a
District Planning Committee (DPC) which will consolidate the plans prepared by the
rural and urban local bodies and draft a development plan for the district as a whole.
The features of 73rd and 74th CAAs facilitate the citizens to participate in the process of
governance to strengthen democracy. The acts provide space for deliberation for
strengthening democracy.
According to the 73rd Constitutional Amendment Act, it is mandatory to establish the
lowest structure namely “gram sabha” in every gram panchayat. Each state in India
notifies the orders to the panchayats to conduct meetings of the gram sabha at regular
intervals. All eligible voters can participate, deliberate and make decisions. The gram
sabha gives space for women and marginalised to bring their interests in the larger
democratic space. The decisions are taken with the participation of all in the larger
interest and it becomes collective decision. In India, after independence, the State has
concentrated more on welfare programmes and introduced a number of measures to
address the needs of the citizens, and bring them closer to administration.
88 In India, tribal communities are the most marginalised sections of the society. They have
remained comparatively isolated from the mainstream development process and maintain Strengthening
an uninterrupted long tradition of well knit, cohesive social structure and value system Democracy
through
backed by their own customs and traditions. They have also several indigenous traditional Governance
institutions to resolve their conflict and manage their resources and socio-political life
(Saxena, 2018). In 1996, to strengthen the grassroots level local bodies and provide
self government by tribals, Part XI of the Constitution that deals with panchayats has
been specially extended to the tribal areas through an Act of Parliament called Panchayats
Extension to Scheduled V Areas Act (PESA) 1996. Under this, special treatment has
been given to the social, political, cultural and economic aspects of tribal life.
The Government of India has changed its strategy after 12th Five Year Plan and
established the National Institution for Transforming India (NITI Aayog) by replacing
the erst white planning commission through a resolution of the Union Cabinet on January
1, 2015. It is the premier policy ‘Think Tank’ of the Government of India that provides
the necessary policy inputs and technical advice to the central and state governments to
take the country forward. According the government, there are governance challenges
in the 21st century to address the needs of all. There have been significant developments
in technology. . By looking at the rapid changes at the various levels, the government
has decided to reform the existing administrative units to address governance issues.
Elections are an important means of ensuring citizen participation in governance. Also it
helps in making government accountable and responsive to the citizens. It establishes a
two-way relationship based on trust and accountability between those who govern and
who are governed. As we have already mentioned in this unit, India has parliamentary
form of democracy with regular elections at parliament and state assemblies. The elections
are conducted based on Constitutional provisions supplemented by laws made in the
parliament. The major laws related to elections are Representation of People’s Act,
1950 and 1951 (Gill, 2009). The elections for lok sabha and state assemblies have to
be conducted once in five years. The elections are based on universal adult franchise
with citizens having attained the age of 18 being eligible to vote. The process of elections
is carried out by the Election Commission of India. Regular elections based on universal
adult suffrage have helped the citizens of India to exercise their choice and it is a measure
towards deepening of democracy. The electoral empowerment has brought scheduled
castes (SCs), scheduled tribes (STs) and other socio religious minorities in the various
social strata into the electoral fray. Differential and horizontal electoral mobilisation of
socially marginal groups has resulted in policy changes that further helped in deepening
of democracy in India. Over the past three decades, formation of pressure groups and
the various regional political parties and their coalition with national level parties have
helped address the issues of marginalised like SCs, STs and women. Regular elections
have broadened democracy and the voters turn out increased over a period. In the first
general election in 1952, 61 per cent of the electorate has exercised their franchise. In
2014 general elections, 60 per cent of men and 56 per cent of women voters exercised
their choice to elect their representatives.
In India successive governments have introduced various schemes and programmes to
promote the welfare of all citizens and to bring them in the governance process. Let us
discuss some of them.
The scheme “Sarva Shiksha Abhiyan (SSA)” was launched in November 2000, in
partnership with the states to universalise elementary education. SSA was conceived at
the end of the ninth five year plan to improve the educational status in the country
through interventions designed to ensure accessibility, reduce gender and social gaps,
and strengthen the quality of learning. In continuation of SSA programme, the 86th
Amendment Act of the Constitution in the year 2002 inserted Article 21 A in the 89
Governance and Constitution of India to provide free and compulsory education for all children between
Development the age of six and fourteen years. This is a fundamental right. Based on the 86th
Amendment Act, the State has enacted the Right of Children to Free and Compulsory
Education (RTE) Act, 2009. It has brought equity and equality among all children in the
country. As we mentioned earlier, one of the major principles of modern democracy is
to provide access to education to all their citizens to strengthen democracy. The major
areas for improvement listed in the RTE Act 2009 are:
1) Ensuring the availability of teaching-learning materials and aids;
2) Appointment of required number of trained teachers and ensuring their continuous
availability for comprehensive evaluation;
3) Formation of school management committees;
4) Maintenance of pupil–teacher ratio (PTR) and teacher–classroom ratio (TCR)
and, student–classroom ratio (SCR);
5) Provision of facilities such as library, mid-day meals, and incentives for children.
The Act directs unaided private schools to admit compulsorily and enroll 25 per
cent students from economically and socially weaker sections of society. It makes
provision for the improvement of infrastructure facilities like buildings, playground,
boundary wall, safe drinking water and separate toilets for girls and boys.
The National Rural Health Mission (NRHM) was launched in 2005 to provide, accessible,
affordable and quality health care to the rural population, especially vulnerable groups.
The objectives of the mission are to establish fully functional community-owned,
decentralised health services by integrating other issues like water, sanitation, education,
nutrition, social and gender equality. The above-mentioned two programmes, like many
others, have been implemented to ensure the participation of all the stakeholders in the
process of governance.
The State has taken an affirmative action in the form of laws and policies to ensure the
participation of citizens. One significant programme related to affirmative action is
Mahatma Gandhi National Rural Employment Scheme/Programme (MGNREGS). It
is a rights-based national level rural employment guarantee programme. It was enacted
by legislation on 25 August 2005 and implemented in February 2006. The programme
guarantees a minimum number of days of unskilled manual labour to each rural household
seeking employment in India. Under the progamme 30 per cent of the work is allocated
to the women. The gram panchayats are the implementing agencies at the village level.
It needs to conduct gram sabha meetings regularly to finalise the work and identify the
beneficiaries. The programme also guarantees an unemployment allowance if work is
not provided to the employment seekers. It is considered as one of the largest social
safety net programme.
There are many schemes and programmes being implemented to strengthen democracy
especially at the grass root level. There is need to ensure maximum participation of
people especially in panchayati raj institutions through initiating new reforms and
strengthening the existing systems.
90 1) Explain the features of 73rd and 74th CAA.
..................................................................................................................... Strengthening
Democracy
..................................................................................................................... through
Governance
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2) List the major areas of improvement listed in RTE Act.
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6.6 CONCLUSION
We have discussed the features of democracy, Constitution of India, the process of
governance and measures to strengthen democracy in India. As we have mentioned in
this Unit, the framers of Indian Constitution have ensured to incorporate necessary
clauses to strengthen democracy. In accordance with the Constitution of India, the
process of governance has ensured to take democracy forward to the lowest unit of the
administration and all citizens. Not only the government structures, other institutions
and organisations do play a vital role in democratising the State.
6.7 GLOSSARY
Community Development Programme: It was the first major development
programme launched by the government of India in 1952 the core objective of which
was the overall development of rural areas and peoples’ participation. It was formulated
to provide an administrative framework through which the government could reach to
the district/tehsil/taluka and village level.
Gross Domestic Product (GDP): The GDP measures the value of economic activity
within a country. It is the sum of the market values, or prices, of all final goods and
services produced in an economy during a period of time.
Pressure Group: A pressure group is formed by likeminded people who seek to
influence public policy to promote their interests. It attempts to influence government
policies through protests, demonstrations and so on.
Social Safety Net: It is a collection of services provided by a community of individuals
or State. It works in conjunction with other poverty reduction programmes the primary
the goal of which is to reduce poverty. It includes unemployment benefit, welfare and
so on.
6.8 REFERENCES
Agnes, F. (2015). Constitutional Debates. MWG010 Women and Political Process.
New Delhi, India: IGNOU.
91
Governance and Andrews, M. (2008). The Good Governance Agenda: Beyond Indicators without
Development Theory. Oxford Development Studies. 36(4): 379-407.
Appadorai, A. (2006). The Substance of Politics. New Delhi, India: Oxford University
Press.
Census of India (2019). Retrieved from www.censusindia.gov.in
Gill, M.S. (2009). The Electoral System of India. New Delhi, India: Election
Commission of India.
International Monetary Fund Data. (2019). Retrieved from https://www.imf.org/en/
Data
Jain, R.B. (2001). Towards Good Governance: A Half Century of India’s Administrative
Development. International Journal of Public Administration. 24(12):1299-1334.
Kaufmann, D., Kraay, A. & Zoido-Lobaton, P. (1999). Governance Matters. World
Bank Policy Research Working Paper 2196. Washington, D.C., USA: The World
Bank.
Mill, J. S. (1948/1864). The Representative Government. Oxford, UK: Basil Blackwell.
Saxena, N.C. (2018). Programme Delivery Through Panchayats. The Monthly Journal
of Kurukshetra. 66(9).
Singh, K. R. (2015). Electoral Systems and Political Parties. MWG010 Women and
Political Process. New Delhi, India: IGNOU.

EXERCISES
• Democracy considers ‘will of the people’ as supreme.
• All citizens are considered as equals.
• All adults by attaining minimum required age get an equal opportunity to vote
and contest in the elections to exercise their rights.
• Regular elections, freedom of speech, opportunity to participate in the political
activities and giving values to the individual opinion and rights are also significant
features of the democracy.
• Fundamental Rights are justiciable rights.
• It protects citizens from arbitrary prejudicial State actions.
• The Directive Principles of State Policy further make the citizens to realise
their full potential by making State to formulate appropriate laws and policies
for the socio-economic development.
• It ensures social justice to the socially backward communities.
92
Check Your Progress 2 Strengthening
Democracy
1) Your answer should include the following points: through
Governance
• Creation of gram sabha.
• Reservation of seats for women, Scheduled Castes (SCs) and Scheduled
Tribes (STs) at all levels and all positions.
• Uniform 5 year term for rural and urban local bodies.
• Constitution of Election Commission.
• Power to levy taxes, collect and appropriate taxes within their jurisdictions.
• Constitution of State Finance Commission (SFC) to determine principles to
share revenues.
• Ensuring the availability of teaching-learning materials and aids.
• Appointment of required number of trained teachers and ensuring their
continuous availability for comprehensive evaluation.
• Formation of school management committees.
• Maintenance of pupil–teacher ratio (PTR) and teacher–classroom ratio (TCR)
and, student–classroom ratio (SCR).
• Establishment of facilities such as library, mid-day meals, and incentives for
children.
93
94 Blank
BLOCK 3
GOVERNANCE: EMERGING PERSPECTIVES
96 Blank
UNIT 7 GOVERNANCE CHALLENGES AND
CHANGING ROLE OF
BUREAUCRACY*
Structure
7.0 Objectives
7.1 Introduction
7.2 Concept of Governance: Genesis
7.3 Governance: Conceptual Framework
7.4 Quality of Governance
7.5 Challenges of Governance
7.6 Changing Role of Bureaucracy
7.7 Conclusion
7.8 Glossary
7.9 References
7.0 OBJECTIVES
After reading this Unit, you should be able to :
• Trace the emergence of the concept of governance;
• Put forth the different interpretations of the concept of governance;
• Examine the characteristics of governance;
• Comprehend the challenges of governance; and
• Analyse the various dimensions pertaining to the changing role of bureaucracy.
7.1 INTRODUCTION
The concept of ‘governance’ has a long and distinguished pedigree. From the Greek
city-state to the modern nation-state, governance or the art of governing has been a
constant preoccupation for rulers and political philosophers. In recent years, the idea
‘governance matters’ has become a global theme. In the 1990s, aid donors and a range
of international institutions, including the multilateral development banks, the International
Monetary Fund(IMF), the Organisation for Economic Cooperation and Development
(OECD) and the United Nations Development Programme (UNDP), formally adopted
‘governance’ agenda.
Governance has only recently entered the standard Anglophone Social Science lexicon
and become a ‘buzzword’ in various lay circles. Even now its social scientific usages
* Contributed by Dr. Rouchi Chaudhary, Assistant Professor, Dept. of Public Administration and
Public Policy, Central University of Jammu 97
Governance : are often ‘pre-theoretical’ and eclectic; lay usages are just as diverse and contrary.When
Emerging most of the people hear the word “governance” they think of “government”, since,
Perspectives
both have ‘govern’ as their root word. But governance is more than just government.
In this Unit, we shall orient you to various aspects pertaining to the concept of governance,
bring out the emerging challenges in the arena of governance and examine the changing
role of bureaucracy in the present scenario.
7.2 CONCEPT OF GOVERNANCE: GENESIS

The concept of governance is not new to India. Early discussions go back to at least
400B.C. to the Arthashastra, a fascinating treatise on governance attributed to Kautilya.
In Arthashastra, Kautilya presented key pillars of the ‘art of governance’, emphasising
justice, ethics, and anti-autocratic tendencies. He further detailed the duty of the king to
protect the wealth of the State and its subjects; to enhance, maintain and also safeguard
such wealth, as well as the interests of the subjects.
The government as an instrument of the State has always been the sole provider of
goods and services. For example, Indian Airlines used to be the only agency for domestic
air travel in India. Similar is the case in many areas such as telecommunications, power
and so on. But since 1980s, we find the emergence and active part being played by the
private sector in service delivery. Also we have civil society or people’s associations
playing a key role.
For the last few decades, governance has been a prominent area in public administration.
It was Harlan Cleveland who first used the word ‘governance’ as an alternative to the
phrase public administration. In the mid-1970s, one of the themes in Cleveland’s
particularly thoughtful and provocative speeches, papers, and books was: “What the
people want is less government and more governance” (1972). Since Cleveland’s initial
conception, it would be only a slight exaggeration to say that governance has become
the subject formerly known as public administration. A further shift in the concept of
governance was witnessed when the prefix “good” was added to it, making it a
qualitatively ‘positive’ concept.
Ever since 1989, when the World Bank described the current situation in Africa as
‘crisis in governance’, the term ‘governance’ has been widely, if not exclusively
associated with the politics of development in the post-colonial world. The term
‘governance’ had gained prominence with the usage of the term by the international
donor agencies such as the World Bank, the United Nations Development Programme
(UNDP) etc. These institutions drew attention to certain deficiencies in the governance
system of the developing countries. These included non-availability of information to
the people, lack of accountability, poor management of public sector, absence of
appropriate legal framework and so on. It is against this background that the concept
of governance emerged to ensure effective and accountable management of the affairs
of a country at all levels.
Gradually the concept of ‘good governance’ was authenticated and popularised by the
World Bank. Through its reports published around three decades ago, ‘Governance’
has become an acknowledged paradigm, slowly replacing the notion of ‘Government’.
We are moving from governing almost exclusively by the formal ‘government’ to
‘governance’, which is broader in nature comprising government, private sector and
civil society. The distinction between public and private sectors is getting narrowed and
more participative and collaborative forms of governing are in place. We have already
98 discussed in detail about these aspects in Unit 2 of this Course.
Governance Challenges
7.3 GOVERNANCE: CONCEPTUAL FRAMEWORK and Changing Role of
Bureaucracy
The conceptual roots of governance are located in the neo-liberal theoretical discourses.
Governance like New Public Management defies simple definitions. It has become a
conceptual riddle. Semantically, it refers to government-run-administration. However
given its roots in the concern of the World Bank for recovering ‘loans’ given to the Sub-
Saharan African states, it has become integrally linked with the ‘neo-liberal’ thrust in
contemporary politics. The neo-liberal thinking gained prominence since mid-1950s
which advocated free market. It gave importance to private sector, individual liberty
and freedom and propagated roll back of the State. It favoured free markets and diluting
the role of the Welfare State.
Governance generally means ‘the act or process of governing’. Since 1980s, the shift
from ‘government’ to ‘governance’ in development vocabulary was not mere semantic
change. The Anglophone term ‘governance’ can be traced to the classical Latin and
ancient Greek words for the ‘steering of boats’. It originally referred mainly to the
action or manner of governing, guiding or steering conduct and overlapped with
‘government’. For a long time usage was mainly limited to the Constitutional and legal
issues concerning the conduct of ‘affairs of State’.
It has enjoyed a remarkable revival over the last few decades in many contexts, however
becoming a ubiquitous ‘buzzword’ which can mean anything or nothing. The key factor
in its revival has probably been the need to distinguish between ‘governance’ and
‘government’. The State attempts to achieve set goals and objectives for the welfare of
its citizens. The government as an instrument of the State through the plans, policies and
programmes attempts to deliver essential services to the citizens. Governance would
refer to the modes and manner of governing from government to other institutions and
agents charged with governing including private sector, civil society and peoples’
associations.
Etymologically, the word “governance” and its cognates are rooted in the Greek word
“kybernan”, meaning “to steer or pilot a ship” and have been common in Western
usage – originating in Middle English and Old French - for centuries. To “govern” is to
direct, guide, rule, or steer. The institutions for governing may be termed – “government”.
When one is “governing”, or being governed, one is engaged in, or being subjected to,
the act or process of “governance”. In contemporary popular usage, governance refers
to how actors – whether multinational entities, governments, public agencies, private
corporations, communities, social or political groups, individuals, or combinations of
these – are governed, i.e., directed or guided, in order to accomplish purposes on
which they agree or have in common. By implication, governance in this generic sense
might imply such descriptive characteristics or qualities as adaptability, transparency,
means for resolving conflicts, structures for consultation, deliberation, and decision
making, processes through which authority and influence are distributed among actors,
and mechanisms for enforcing rules and agreements.
Governance refers to opening up of the arena of government to multiple actors, mobilising
the collective efforts of the government, private sector and the community. It focuses on
ensuring accountability, people’s participation, and transparency, rule of law, effectiveness
and efficiency. It fosters networking amongst several stakeholders and involves multiple
actors and institutions.
In general there has been an ever-expanding, often confusing variety of meanings and
applications of the term’ governance’. New definitions of governance have continued
to proliferate in academic and policy discourse. These new, non-generic definitions 99
Governance : reflect increased scholarly and policy maker interest in how multiple sources of societal
Emerging and global change – political, economic, social, demographic, technological, and legal
Perspectives
– are affecting systems of ordered rule, especially, those, systems or arrangements
serving public interests.
Beginning in the early 1990s, altogether new meanings began to be associated with the
term “governance” in public administration. Governance, for example, began to mean a
form of public goods provision that is “beyond government”. That is, “governance”
meant, not just systems of both public and private sectors, but arrangements whereby
responsibility for collective benefits has been assumed by civil society institutions such
as non-profit/non-governmental organisations or other actors that are constituted, i.e.,
legitimised, outside the public sector. At the same time, among institutions concerned
with the developing world and with newly emerging states, such as the World Bank and
the International Monetary Fund, governance increasingly came to imply “good
governance”, that is, government that meets specific criteria for competence, such as
transparency, effectiveness, honesty, participation and inclusivity.
Over the past decades,distinct words and phrases for reforming the public sector have
been in usage. The ‘3Es’of economy, efficiency and effectiveness gave way to the ‘new
public management’ and ‘entrepreneurial government’. The term Governance is now
widely used, supplanting the commonplace ‘government’. Even the most cursory
inspection reveals that ‘governance’ has several distinct meanings. The current use does
not treat governance as a synonym for government. Rather it signifies a change in the
meaning of government, referring to a new process of governing; or a changed condition
of ordered rule; or the new method by which society is governed.
Lynn (2010) categorises the meanings and applications in the governance literature and
the issues each raises for the study and practice of public administration as:
a) governance as a generic term
b) governance as synonymous with the state, with the public sector: “government”;
c) governance as synonymous with “good government”
d) governance “beyond government”
e) governance “not government”
Rhodes (1996) puts forward six separate uses of governance as:
a) the minimal state
b) corporate governance
c) good governance
d) a socio-cybernetic system
e) self-organizing networks.
f) the new public management,
The notion of governance rests on three theoretical principles or premises:
a) The existence of crisis of governability
b) That this crisis reflects problems in traditional forms of State intervention.
c) The emergence of a tendency or of a convergent political trend in all the ‘developed’
countries that is giving rise to a new form of governance better adapted to the
context.
100
There are varied interpretations of governance put forth by scholars implying Governance Challenges
and Changing Role of
• Shift from the bureaucratic State to the hollow State or to third-party government Bureaucracy
• Market based approaches to government

• Development of social capital, civil society, and high levels of citizen participation
• Interjurisdictional cooperation and network management.
Government in the postmodern State involves multiple levels of interlocked and
overlapping arenas of collective policy implementation. Governments now operate in
the context of supranational, international, trans-governmental and trans-national relations
in elaborate patterns of federated power sharing and interdependence.
7.4 QUALITY OF GOVERNANCE

Today the quality of governance is attracting more and more attention among the
countries. The number of democratic regimes continues to rise and good governance
has become an important criterion for a country’s credibility and respect on the
international stage. The use of the term “good governance” was initially articulated in a
1989 World Bank publication. Therein, the concept of good governance was identified
as a structural necessity for market reform. In 1992, the Bank published a Report
entitled, Governance and Development, which explored the concept further and its
application to the Bank’s activities. In 1997, the Bank redefined the concept and
underlined the need for an effective State apparatus in association with “good
governance” as a necessary precondition for development. Other international financial
institutions (IFIs), such as the International Monetary Fund (IMF) and the Organisation
of Economic Cooperation and Development (OECD), have also contributed to the
World Bank’s policy dialogue.
Since ‘good’ is a subjective term, it is important to be specific in its use. There are many
competing views on what the term ‘good governance’ should mean, but most donors
argue that it should include some (if not all) of these; increased public accountability and
transparency; respect for and strengthening of the rule of law and anti-corruption
measures; democratisation, decentralisation and local government reform; increased
civil society participation; and respect for human rights and the environment.
Good governance has certain qualities to it. It promotes equity, participation, pluralism,
transparency, accountability and the rule of law. And it is efficient, effective, responsive
and sustainable over the long run. Governance must be rooted in these principles for
greater human development through poverty eradication, environmental protection and
regeneration, gender equality and sustainable livelihoods.
When we speak of the quality of a country’s governance, however, we mean the degree
to which its institutions and processes are transparent, accountable to the people, allowing
them to participate in decisions that affect their lives. The quality pertains to structure,
systems and processes of governance. We have already referred to this in Unit 3 of this
Course.
The promotion of good governance has led to the proliferation of aggregate indicators
that rank or assess countries for the quality of their governance.The most comprehensive
set of aggregate indicators is the World Bank’s Worldwide Governance Indicators
(WGI) database now covering 215countries and territories; and measuring three
dimensions of governance defined as “the exercise of authority through formal and
informal traditions and institutions for the common good”. The three dimensions are: 101
Governance : 1) the process of selecting, monitoring, and replacing governments;
Emerging
Perspectives 2) the capacity to formulate and implement sound policies and deliver public services;
3) the respect of citizens and the State for the institutions that govern economic and
social interactions among them.
1) Explain the genesis of the concept of ‘governance’.
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2) Discuss the conceptual dimensions of governance.
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7.5 CHALLENGES OF GOVERNANCE

There is a multitude of challenges facing ‘governance’ in the twenty-first century. This is
very true for most developing nations, especially in Asia. These challenges emanate
from various levels-global, national, regional and local. While many challenges have
local solutions because they involve local issues (e.g., flood control, population density,
urban–rural divide, urban governance and administration, or public management), others
have multiple sources involved, especially regional and global ones and demand national
and international solutions. This has an imperative for regional and global cooperation.
The challenge of governance in any State is not competitive populism or fulfilment of
some wish lists. It is in restoring the basic values to the institutions and ensuring their
sustenance through truly autonomous watch dog processes. The legislators should
legislate and exercise supervision of government policies; the executive should
concentrate on fair and equitable governance and efficient delivery of public services.
The judiciary should focus on speedy justice for all sections of the society.
The environment of public administration in developing democracies has changed
dramatically in the last few decades. The contemporary challenges of governance in
India are: problems with bureaucracy, including the antiquated processes and criteria
for recruitment of the nation’s higher civil service, rigidity and inefficiencies in government
operations, widespread corruption, lack of accountability, lack of representativeness in
102
public service, unresponsiveness to citizens, and the inability of the bureaucracy to deal Governance Challenges
with the growing role of the private sector and civil society in governance. In 1991, and Changing Role of
Bureaucracy
India liberalised its markets, privatised several government-owned industries and became
more open to globalisation. These reforms have created a radical change in the Indian
political and economic system as well as unprecedented challenges for governance. On
the one hand, liberalisation and globalisation have produced greater wealth, a larger
middle class and modernisation in India; on the other hand, they have created a
tremendous and urgent need for public administration reforms, infrastructure development
and reduction of the widening gap between the rich and the poor.The problems of a
developing democracy; a governance system that is undergoing major changes that at
times appears chaotic and an administrative apparatus that suffers from much pathology.
The change is slow and requires simultaneous and coordinated efforts on the part of the
country’s social,political and economic institutions.
Throughout the world, governance issues have become increasingly crucial in recent
years in all sectors and at all organisational levels – social, economic, cultural,
administrative and political. Globalisation has profoundly altered and intensified
communication and dialogue on issues pertaining to the manner in which communities,
societies, nations and the world are governed.The current economic situation, marked
by growing economic tensions and budget austerity, renders the invention or reinvention
of systems of governance much more vital – but also politically delicate.
Some of the contemporary issues and challenges of governance can be summed as:
• Political, economic and social systems have become increasingly fragmented, making
global strategic initiatives even more complex;
• The range of values, attitudes and behaviours exhibited by individuals and groups
has contributed to greater and more diverse demands for inclusion and participation
on the part of citizens, groups and organisations;
• As the structure around the representation of interests is further broadened and
differentiated, the governance system becomes more complex and progressively
less intelligible, decipherable and accountable to lay persons;
• There is a growing risk that the democratic quality of our political systems will
deteriorate.
Key Challenges of Governance
 Information gap: characterised by information asymmetries between levels
of government when designing, implementing and delivering public policy.
 Capacity gap: arises when there is a lack of human, knowledge (skill-based
and “knowhow”) or infrastructural resources available to carry out tasks,
regardless of the level of government.
 Fiscal gap: reflects the difference between sub-central revenues and the
expenditures needed to meet their responsibilities. It indicates a direct
dependence on higher levels of government for funding in order to meet
obligations.
 Administrative gap: arises when administrative borders do not correspond
to functional economic areas at the sub-central level.
 Policy gap: results when line ministries take purely vertical approaches to
cross-sectoral policy (e.g. energy, water or youth).
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Governance :
Emerging 7.6 CHANGING ROLE OF BUREAUCRACY
Perspectives
The impact of globalisation on State is manifold and it is resulting in transformation in
the role of bureaucracy. The State is to act as a linking pin of processes of planning,
consultation, negotiation and decision-making involving diverse actors-state as well as
non-state at different levels of governance. The State is the hub of activities connecting
multiple partners and stakeholders from various spheres. In consonance with this, the
bureaucracy‘s role is also undergoing change. Research Studies indicate that there are
reform measures initiated globally to streamline the size and scope of bureaucracy, and
make them attuned to coping with market forces and citizen’s voice. According to
Haque(1998), the role of bureaucracy is changing from a) developmental to managerial
role b)active(leading) to supportive (facilitating) c) citizen-centred to customer-centred.
The terms bureaucracy and democracy are usually thought of, in the academic literature,
as antithetical approaches to providing governance for a society. On the one hand
public bureaucracies are typically conceptualised as necessary for effective administration
of public programmes, but as being legalistic and largely indifferent to the wishes and
demands of individual citizens. Bureaucracies also tend to be associated with hierarchical
and even authoritarian forms of governing, even though at least part of the logic for
institutionalising the bureaucratic form of governing was to ensure equal treatment of
citizens, and to provide clients with records and justifications for the decisions being
made about them within the public sector.
The nature of governance has been changing with shift from a system that is focused on
inputs to one that is focused on outputs. This is perhaps inevitable given that a good
deal of the reform of the public sector under New Public Management has been
concerned with managing the output of programmes. Performance management in
particular has emphasised the need to measure what the public sector does. A part of
that measurement relates to citizen satisfaction with the services provided, a form of
assessment that invites public participation and can serve as one form of democratic
input, though perhaps a rather passive one. This change in turn implies that accountability
has become an even more central instrument for democracy. The bureaucracy thus, has
become an important locus for public involvement and for democracy.
Effective and efficient institutions form the backbone of a successful governance system.
The bureaucracy plays a central role in socio-economic development and nation building.
In the recent times, the role of bureaucracy has undergone a massive change due to a
number of factors. The changing role of the State in the contemporary context has
brought about significant changes in the profile of bureaucracy. The growing impact of
liberalisation, privatisation and globalisation, increased complexity in administrative
problems, influx of information technology and socio-cultural upheavals are bringing in
a lot of changes in the complexion of Indian bureaucracy. Consequently, there have
been persistent demands for a responsive, accountable and efficient administration.
The bureaucracy has to strike a balance between participation and accountability,
competition and conflict, user and citizen. The bureaucracy has to ensure that there is a
suitable environment in which rights of the citizens are protected, law and order is
maintained, stability is provided and efficient infrastructure is put in place to tone up the
welfare services to the people.
There are several governance challenges in India on political and socio-economic fronts.
In addition there are regional disparities, issues pertaining to centre-state relationship
and so on. The bureaucracy in India suffers from certain paradoxes. It is a combination
of rigid adherence to procedures and a low resistance to varied pressures, pulls and
104
interventions.
Bureaucracy is the backbone of Indian administrative system. Its complexion is changing Governance Challenges
with the change in the socio-cultural and economic scenario. The governance scenario and Changing Role of
Bureaucracy
around is changing under the rubric of New Public Management (NPM) and good
governance reforms where more emphasis is on making bureaucracy more transparent,
efficient and accountable. The responsibilities, the regulatory and service functions of
bureaucracy are on increase. It is expected to play the role of knowledge manager to
meet the contemporary governance challenges.
The role of bureaucracy varies at different levels. At the top level in governance structure,
tasks of bureaucracy relate to policy formulation and devising appropriate implementation
strategies. The bureaucracy at the middle level is to discharge tasks of supervising,
coordinating, networking and communicating and overseeing the implementation and
execution. It requires a blend of administrative, technical, and human skills. At the cutting
edge level, the bureaucracy has to be proactive, innovative and entrepreneurial to deliver
the services.
In nutshell, the shift or change in the role of bureaucracy in light of the emerging
governance challenges can be understood under the following factors:
• Fast pace of globalisation
• Rapid advancement of communication technology and problems relating to
cybercrime and threats due to social media
• Advances in technology and mass-scale digitisation of government operations
• New tools of governance
• Inclusive policies with a more sense of accountability and responsibility towards
the excluded sections of society
• Participatory and engaged governance i.e., engaging the civil society for better
governance since citizens are the most important assets in governance
• Building new skills and capacities
• Internal and external security threats
The bureaucracy‘s role is multifaceted being the:
• Articulator and integrator of interests of stakeholders
• Conciliator, mediator and adjudicator
• Contributor of expertise, skills and resources
• Network and strategic manager
• Responsive, accessible and promoter of multidimensional accountability
1) Identify the key issues and challenges of governance.
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Governance : .....................................................................................................................
Emerging
Perspectives .....................................................................................................................
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2) Describe the factors responsible for changing role of bureaucracy.
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7.7 CONCLUSION
In the new governance context, role of bureaucracy has been changing very fast. The
government is no longer seen merely as a law enforcer or a controller of national resources
but as a provider of basic services and public goods. Globalisation has added different
dimensions to the concept of governance. There has been a shift in orientation from
being controllers to facilitators and from being providers to enablers. Bureaucrats will
have to equip themselves with the new set of skills and capabilities to meet the new
governance challenges. They need to master new technologies and new styles of
functioning and devise strategies to deal with the emerging governance challenges. Thus,
in the light of the changing governance scenario, the bureaucracy must reform itself. It
must reinvent itself in the light of changing norms of governance, New Public Service
and New Governance.
7.8 GLOSSARY
Entrepreneurial Government : It is philosophy that propagates government institutions
to be competitive, innovative and risk taking like private enterprises.
Governance Indicators : These are the set of composite indicators covering various
dimensions of governance for measuring the quality of governance within and across
the nations.
Neo-liberal Thought : This is associated with economic liberalisation policies such as
deregulation, privatisation, free trade, increasing the role of private sector in economy
and society.
New Public Management : This refers to private sector and market driven perspective
on the operations of the government. It is a combination of various methods and
techniques towards modernising of government activities.
New Governance : This is a new paradigm in the governance discourse and features
the changing locus of the public authority involving the expanding role of the civil society
in the provision of public benefits.
New Public Service : This approach put forth by Robert B. Denhardt and Janet B.
Denhardt suggests that public servants must adhere to law, community values, political
norms, professional standards and citizens’ interests. It considers the primary role of
bureaucracy to serve the citizens.
106
Social Capital : It refers to networks of relationships among people in society. It Governance Challenges
encompasses factors such as interpersonal relationships, a shared sense of identity, and Changing Role of
Bureaucracy
shared understanding, shared norms, values, trust, cooperation and reciprocity.
7.9 REFERENCES
Collingwood, V. (Ed.) (2001). Good Governance and the World Bank. Retrieved
from projects/drivers_urb_change/urb_economy/pdf_glob_SAP/BWP_Governance_
World%20Bank.pdf
Farazmand, A. (2015).Governance in the Age of Globalization: Challenges and
Opportunities for South and Southeast Asia.In I. Jamilet. al. (Eds.), Governance in
South, Southeast, and East Asia, Public Administration, Governance and
Globalization, Switzerland: Springer International Publishing.
Fukuyama, F. (2013).What is Governance? Center for Global Development Working
Paper No.314.Retrieved from www.cgdev.org.
IGNOU.(2015). State Society and Public Administration, MPA-011. New Delhi, India:
Faculty of Public Administration.
Ilyn, M. (2013). Governance: What is Behind the Word?Participation, Bulletin of
the International Political Science Association.37 (1).
Jain, R.B. (2001). Public Administration in India: 21st Century Challenges for
Good Governance. New Delhi, India: Deep & Deep Publications.
Jessop, Bob. (2002). The Rise of Governance and the Risks of Failure: the Case of
Economic Development. International Social Science Journal. 50(155): 29-45.
Kaufmann and Kraay. (2007). Governance Indicators: Where are We, Where Should
We Be Going? Retrieved from http://siteresources.worldbank.org/DEC/Resources/
KraayKaufmannGovernanceIndicatorsSurveyNov12.pdf.
Lynn, L. E., Jr. (2010).Governance.Foundations of Public Administration Series. Public
Administration Review. Retrieved fromhttp ://www.aspanet.org
OECD. (2001). Governance in the 21st Century. Paris.
OECD. (2009). Current and Future Public Governance Challenges.In Government
at a Glance 2009. Paris.
Pandey, S.K.(2003).Changing Role of Indian Civil Services in the Context of
Globalisation. Retrieved from http://paperroom.ipsa.org/papers/paper_3066.pdf
Rhodes, R.A.W. (1996). The New Governance: Governing without
Government.Political Studies. 44: 652-667.
Sapru, R.K. (2016). Administrative Theories and Management Thought. New Delhi,
India: PHI Learning Pvt. Ltd.
Soni, V. (2008).A Portrait of Public Administration in India: Challenges of Governance
in the World’s Largest Democracy. Public Administration Review. Retrieved from
https://onlinelibrary.wiley.com/doi/pdf/10.1111/j.1540-6210.2008.00965.x
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Governance :
Emerging 7.10 ANSWERS TO CHECK YOUR PROGRESS
Perspectives EXERCISES
• The term governance is derived from the Greek word kybernan which implies
steering.
• Shift from government to governance narrative.
• It is more than government.
• The characteristics of good governance include:
a) Participation
b) Rule of Law
c) Transparency
d) Responsiveness
e) Equity
f) Effectiveness and efficiency
g) Predictability
h) Accountability
• Fragmented political, economic and social systems
• Challenges of globalisation
• Revolution in information technology
• Policy gap
• Information gap
• Fiscal gap
• Administrative gap
• Improving the functioning of civil service and bureaucracy.
• Development of new capacities in view of governance challenges.
• Engaging citizens in governance.
108
UNIT 8 INFORMATION AND
COMMUNICATION TECHNOLOGY
AND GOVERNANCE*
Structure
8.0 Objectives
8.1 Introduction
8.2 Information and Communication Technology: Conceptual Framework
8.3 Information and CommunicationTechnology: Evolutionary Perspective
8.4 Information and Communication Technology Initiatives in India
8.5 Information and CommunicationTechnology Enabled Governance
8.6 Information and Communication Technology in Governance: Key Challenges
8.7 Conclusion
8.8 Glossary
8.9 References
8.0 OBJECTIVES
After going through this Unit you should b able to:
• Provide a conceptual framework of Information and Communication
Technology(ICT);
• Trace the evolution of ICT;
• Discuss the importance of ICT enabled governance;
• Describe the ICT initiatives in public services; and
• Analyse the implementation challenges of Information Communication Technology
in Indian context.
8.1 INTRODUCTION
Information and Communication Technology (ICT) has become an indispensable part
in present times. For developing countries in particular, they are seen as critical to
economic, social and political development. Governance deals with the structures and
dynamics of rulemaking and collective action in society. The processes of governance
do not necessarily reside solely within the sphere of State action and authority. The
contemporary understanding of governance springs from the recognition that governments
are limited in their capacity. Such limitation should be considered in the design of public
policies and in current scenario, the integration of participatory elements in decision
making is vital for effective governance.
* Contributed by Dr. D. Paul Sugandhar, Assistant Professor, Dept. of Public Policy and Public
Administration, Central University of Jammu 109
Governance : The role of government in the society is undergoing continuous change and there is a
Emerging consensus to harness the potential of information and communication technologies in
Perspectives
the field of governance. For achieving effective citizen empowerment and participation,
several challenges emerge that need to be examined and dealt with new tools. The
ICT-enabled governance models and methods of monitoring, interaction, collaboration
for policy making and enforcement are emerging and changing the role of the government
in the Information Society. ICT promotes good governance by increasing transparency
in provision of information, and ensuring accountability, by facilitating decision-making,
public participation and by enhancing the efficient delivery of public goods and services.
The citizen’s right to gain access to public services and documents is supported through
the government’s computerisation initiatives and the availability of these documents
through the Internet. Many government agencies use ICT facilities to reach out to the
public with their accomplishments, achievements and programmes. Information about
government operations is a basic requirement in fostering transparency in governance.
The use of ICT enables the government, as well as civil society and other stakeholders
to make people aware of their rights and privileges.
In this Unit, we shall attempt to provide the conceptual framework of ICT, its evolutionary
perspective and the policy environment. The ICT enabled governance initiatives shall
be discussed and implementation challenges of ICT shall be analysed.
8.2 INFORMATION AND COMMUNICATION

TECHNOLOGY: CONCEPTUAL FRAMEWORK
ICT is the use of technology in information processing and communication. It encompasses
the use of computers, and computer software to gather, convert, process, store, protect,
transmit,retrieve and present the information. Increasingly these activities also involve
collaboration and communication. The search for smarter, efficient and effective
government through efficiency, reengineering of service systems, performance
management, transparency of government operations, downsizing or rightsizing of the
government workforce, strong emphasis on citizen service with citizen satisfaction as a
strategy are the buzz words in administration. Quick decision-making, data based
planning, effective implementation through quantitative techniques seemed to clinch the
issue in its favour. These changes forced the governments towards new techniques and
technologies for pursuing good governance agenda. There are various ways through
which citizens along with government are experimenting with information and
communication technology in order to build and sustain democratic and accountable
governance. The information revolution promises to change the world like never before.
Information super highways are bringing about profound changes in the manner people
work, learn and play, especially in the developed countries. The developing world
cannot remain isolated from the changes. Currently new terminologies ‘governance’
‘IT & administration’, ‘e-government’, ‘e-governance’ and ‘e-citizen’ etc., have gained
prominence. The application of ICT in public administration has brought about
perceptible change in public service delivery. It has been realised that ICT has resulted
in remarkable improvement in quality of services rendered by the government.Technology
cannot work in isolation; it has to reach out to one and all. It is vital for citizens to
receive the services they need at the minimum cost. The government should be able to
handle information quickly and efficiently, be it monitoring any project status or reaching
out to the people.
The application of ICT to the processes of government to ensure good governance is
110 e-governance. It aims at involvement of multi-stakeholders in decision-making and making
governments open and accountable. E-government is modernisation of processes and Information and
functions of government using ICT tools. Communication
Technology and
The advent of information technology as a highly leveraged enabling tool for delivery of Governance
services in the governance process has now been universally recognised. Through the
deployment of ICT, existing government processes are re-engineered to make public
services effective and efficient. These services include providing information, payment
of taxes, granting licenses, paying subsidies, garnering and analysing statistics and
procuring goods and services. Good governance is a part of development process
which is participatory, transparent and accountable, where processes and structures
guide political and socio-economic relationships, and the voices of the poorest and
most vulnerable are taken cognisance of in the decision-making process.

TECHNOLOGY: EVOLUTIONARY
PERSPECTIVE
The information age, made possible by the advent of computers, is characterised by the
shift from traditional industry to an economy based on information digitisation. The
onset of the information age is associated with the digital revolution, just as the industrial
revolution marked the onset of the industrial age. The internet, synonymous with ICT,
was conceived as a network that could connect computers together. Though the internet
itself has existed since 1969, it was with the invention of the World Wide Web (www)
in 1989 by British scientist Tim Berners-Lee and its introduction in 1991 that the internet
became an easily accessible network. The modern term, Information Technology (IT),
came into widespread use only in the late 1970s and is now used generally to embrace
both computer and communication technologies and their common basis –
microelectronic technology and all the related software technology. Until the 1970s,
computer and telecommunication technologies were still regarded as quite distinct.
However, powerful technology changes in microelectronics, software, optics and
increasing integration of telecommunications with computer technologies have blurred
this distinction to a large extent. Microelectronics technology has been the common
basis both for rapid development and the convergence of computer and
telecommunications technologies.
Phase I
The first phase relating to the evolution of ICT is identified with the creation of
electromagnetic calculator during World War II, weighing about 5 tons. The invention
of transistors in 1947 led to development of smaller but versatile computers. With the
input-output technology changing from punch cards to magnetic tapes, “Computer”
became a catch word.
Phase II
The second phase of ICT evolution in1970s is associated with the development of
personal computers. Development of chip technology and manufacturing magnetic discs
transformed huge computers into desktops, which are called personal computers. The
word processing, accounting and graphics became very accessible.
Phase III
The third phase of ICT evolution is related to development of microprocessors. It is a
multipurpose, programmable device that accepts digital data as input, processes it
111
Governance : according to instructions stored in its memory, and provides results as output.
Emerging Microprocessors reduce the cost of processing power.
Perspectives
Phase IV
The fourth phase of ICT evolution involves networking. Starting from connecting
computers within a small geographic area for the fields of defence and education to
connecting the computers worldwide resulting in internet is the landmark development
in the field of ICT. This resulted in breaking the distance barriers across the geographies
and world being called a global village. Social networking is a by-product of this. The
introduction of broadband has accelerated this evolution.
Phase V
The fifth phase of ICT evolution is related to the development of wireless, which refers
to the present phase. This phase began with the invention of the mobile phone. The
initial mobile phones were large and bulky. The reduction in size has been accompanied
by a greatly expanded range of functions such as, transmitting messages, pictures and
music, browsing, navigating etc. Satellite phones such as HAM radio, have allowed us
to get connected even in the absence of telephone and cell phones.
The shift from analogical to digital technologies in telecommunications has led to switching
and transmission systems increasingly resembling computers and embedding an increasing
amount of software. In addition, with the development of networking technology,
communications between computers have expanded tremendously since the early 1960s,
when online computer systems were first developed. The evolution of information
technology, over the past fifty years, can be broadly divided into three eras, Mainframe;
PC (personal computer) and LAN (local area network); and internet computing.
1) Explain the concept of Information and Communication Technology (ICT).
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2) Discuss the different phases in the evolution of ICT.
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Information and
8.4 INFORMATION AND COMMUNICATION Communication
TECHNOLOGY INITIATIVES IN INDIA Technology and
Governance
There were many measures taken to support the growth of ICT in India. In 1970, the
Government of India (GoI) has established Department of Electronics and subsequently
in 1977, GoI has taken thefirst major step towards implementation of e-governance by
establishment of National Informatics Centre (NIC). By 1980, most of the government
offices were equipped with computers but their role was confined to word processing.
Within the span of time and advent of ICT, the GoI has taken a remarkable step for
fostering e-governance by launching the national satellite based network (NICNET) in
1987 followed by District Information System of the National Informatics Centre
(DISNIC). NICNET was the first government informatics network across the world
equipped with advanced database services. India’s e-governance transformation
initiatives started in the 1990s. Since then the country has made considerable progress
in the information and communication technology sector. To improve ICTperformance
and productivity, the Government of India approved the National e-Governance Plan
(NeGP) on May 18, 2006 which seeks to improve delivery of government services to
citizens and private sector with the vision of making all government services accessible
to the citizen in his/her locality, through common service delivery outlets and ensure
efficiency, transparency and reliability of such services at affordable costs to realise
their basic needs.E-governance has become the basic requirement of governance at
the local, regional, national or international levels. The National e-governance Plan
(NeGP) comprises 27 Mission Mode Projects (MMPs) and 8 components. The MMPs
are implemented by various central ministries and state governments.The major core
infrastructure components include State Wide Area Networks, Common Service
Centres, and Governance Service Delivery Gateway etc.
With the cost of communication and IT infrastructure going downwards and demand
going upwards, the e-governance initiatives took shape in the decade of 2000s. Thus
the government sponsored e-governance projects took a big leap to provide the impetus
for long-term growth of e-governance within the country. Demands generated from
political leadership, capacity building needs, and perceived citizen expectations have
contributed to IT innovations. At the state level, many state governments started their
initiatives in the same period by taking up projects to serve their people through ICT.
India has played a major role in the context of ICT for development from the early
1980s at various levels. The National Policy on Information Technology formulated in
2012 focuses on application of technology-enabled approaches to overcome
developmental challenges in education, health, skill development, financial inclusion etc.
The policy outlines strategies to achieve the following aims:
• Creating an ecosystem for a globally competitive IT industry
• Human Resource Development
• Promotion of innovation and Research and Development in IT sector
• Enhancing productivity and competitiveness in key sectors through ICT
• Enabling service delivery through e-governance
• Development of language technologies
• GIS based IT services
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Governance : • Security of cyber space.
Emerging
Perspectives There have been an increasing number of ICT initiatives in India. Projects such as
e-seva, FRIENDS, computerisation of land records, Bhoomi project, Lok Mitra and
so on are aimed at bringing government services closer to citizens. The E-procurement
project introduced in 2003, aims to streamline government activities that impinge upon
business organisations. It aims at transparency in government procurement and reduction
in tender cycle time.
The Akshaya Project in Kerala provides a range of e services including education
through a network of 617 ICT hubs. The Akshaya centres provide e-services to the
local community such as universal ICT access, e-literacy, creation of micro ICT
enterprises and service delivery points along with banking and financial services.
Recent ICT Initiatives
i) Digital India Initiative
The Digital India Programme (DIP) launched by the government in 2014, a bold initiative
which aims to transform India into a digitally-enabled and empowered information-
driven society, and knowledge based economy, has set ambitious targets to be achieved.
The strategic objective of Digital India Programme (DIP) is to ensure that government
services are made available to citizens through use of ICTsupport and simplify governance
for citizens and businesses. In other words, Digital India uses electronic means to
support and stimulate good governance. The main goal of this huge transformational
initiative is to radically redesign and digitise government processes and make government
services available and accessible electronically to citizens, as well as to contribute towards
employment generation. The vision of Digital India is centred around the following three
key areas: (1) Infrastructure as a utility to every citizen; (2) Governance and services on
demand; and (3) Digital empowerment of citizens.
The vision area of infrastructure as a utility initiative aims at high speed internet, digital
identity, easy access to common service centres, safe and secure cyber space and so
on. The vision area of governance and services on demand centres around provision of
seamless integration across all departments, availability of citizens’ documents on the
cloud, making financial transactions electronic and cashless, leveraging Geographical
Information System for decision support systems and development. The digital
empowerment of citizens centres on universal digital literacy, accessible digital resources,
availability of digital resources/services in Indian languages etc.
The digital India initiative aims at expansion of broadband accessibility in villages, universal
phone connectivity, digital inclusion-governance and e-services. This initiative aims at
revamping Mission Mode and other e-governance projects relating to transport, Pay
online, National Scholarship Portal, Digi locker etc.
ii) Smart Cities
A smart city refers to a city that uses ICT to enhance the quality and performance of
urban services such as energy, transportation and utilities in order to reduce consumption
of resources, wastage and overall costs. The features of smart city include availability
of adequate water supply, assured electricity supply, sanitation including solid waste
management, robust IT connectivity and digitalisation and citizen participation. The
smart city concept relies on extensive use of ICTand various physical devices connected
to the networks to optimise the efficiency of city operations and services and make
them effectively accessible to citizens. The Smart city technology facilitates city officials
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to interact directly with both community and other stakeholders and to monitor the city Information and
governance. A Smart-city model requires the deployment and display of IT concepts to Communication
Technology and
be used in development of Smart City. The model includes concepts such as Governance
Smartlighting, Smart traffic management, Smart building, Smart health, Smart parking,
Wi-Fi Internet access and city surveillance, solid waste management, Smart metering,
water quality, water clogging management in cities, etc.
The Smart Cities Mission was launched on June 25, 2015 by the Government of India.
It is the urban renewal and retrofitting programme initiated with the view to developing
100 cities across the country making them citizen friendly and sustainable. The Union
Ministry of Urban Development is responsible for implementing the mission in
collaboration with respective state governments.
iii) Internet of Things (IoT)
The latest entrant to the digital space is the Internet of Things (IoT). It can also be
defined as interplay for software, telecom and electronic hardware industry. IoT is the
network of physical objects — devices, vehicles, buildings and other items embedded
with electronics, software, sensors and network connectivity — that enable these objects
to collect and exchange data. With the advent of the Internet of Things (IoT), fed by
sensors in trillions, working with intelligent systems in the billions, and involving millions
of applications, this will drive new consumer and business behaviour. It shall demand
increasingly intelligent industry solutions, which, in turn, shall drive trillions of dollars in
IT industry and even more for the companies that take advantage of the IoT.
The number of Internet-connected devices (12.5 billion) surpassed the number of human
beings (7 billion) on the planet in 2011, and by 2020, globally Internet-connected devices
are expected to number between 26 billion and 50 billion. The Government of India’s
plan of developing 100 smart cities in the country, could lead to a massive and quick
expansion of IoT in the country. Internet of Things involves three distinct stages:
a) The sensors which collect data (including identification and addressing the sensor/
device);
b) An application which collects and analyses this Data for further consolidation; and
c) Decision making and the transmission of data to the decision-making server.
Analytical engines, actuators and Big data may be used for the decision making
process.
IoT is useful in India in many ways across industries such as utilities, manufacturing,
automotive, transportation and logistics. IoT enabled smart devices are being used in
day to day life for health and wellness, personal safety and so on for smart cities
project.
Smart surveillance, automated transportation, smarter energy management systems,
water distribution, urban security and environmental monitoring, sensor-driven networked
technologies are examples of IoT applications.

TECHNOLOGY ENABLED GOVERNANCE
The essence of information and communication technology enabled governance is to
impact the way work is organised in organisations. ICT offers an opportunity for
improvement in public service delivery and most administrative best practices build
upon the process redesign and convergence that is facilitated by ICT. It leads to 115
Governance : transformation in work processes and service delivery, lowers transaction costs with
Emerging better transparency and accountability. It enables transformational change rather than
Perspectives
mere technical change.
ICT enabled e-governance models and best practices as we have discussed in preceding
sections enable integration of government processes and communication with access
enabled across space and time on an on-line real time basis, with status tracking and
status information. Integrated user group interface through ICT platforms help provide
minimal public interface for time bound delivery of services with reduction in delay and
corruption, improved transparency and help bridge the performance gap. The examples
of best practices are the Passenger Reservation System (PRS) and the Freight Operation
Information System (FOIS) of the Indian Railways.
The integration of back-end services and transformation of process design for basic
service delivery linked to organisational level restructuring is at the heart of the
transformation. It is also important to integrate government services with inter-operable
standards with convergence across departments breaking up the duplicationof processes
and divisions between the technical and operational side and between field and secretariat.
The architectural change of organisations is also part of this transformation. The concept
of networking of organisations and information systems, with administration functioning
on a networked horizontal structural base, marking a departure from hierarchical
command structures is the future administrative roadmap.
Phases in the ICT Enabled Governance:
i) Phase-I: Web Presence: The first phase is marked by web presence of public
institutions and dissemination of information. This has been facilitated by the Right
to Information Act, 2005 (RTI) and this has been developed as a basic feature of
all public services where type of service and service provider details are made
available in a proactive manner. This information is also being integrated for citizen
access through the National and State Portals which provide basic information on
government programmes and services. The web presence can range from basic
and static information to access to databases, documents, policies etc., with the
aid of help features and site map.
ii) Phase-II: Interactive Presence: The next stage is marked by an interactive
interface with stakeholders with pro-active solutions to problem solving and
electronic requests for services and financial transactions. The service starts on
the internet but does not always end there. Applications related to property tax,
land registration, property titles and programmes like ‘Bhoomi’ are now being
replicated at the national level. Efforts to widen the reach of these basic services to
ordinary citizens through community access in several ways – through online services
in government offices, integrated service delivery through one-stop service common
services centres.
iii) Phase-III: Transactional Presence: This relates to completion of transactions
on the internet and access to internet. This interaction in turn results in vertical and
horizontal integration which changes the way a service is delivered, the effort being
for completion of the transaction for the service through the internet with putting in
place of back-end integration. The architectural model for this stage requires
interoperability and convergence. There is electronic communication between the
platform and citizen and the transaction is completed online.
iv) Phase- IV: Networked Presence and E-Participation: The fourth stage is
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marked by a Government to Citizen (G2C) framework based on an integrated Information and
network of public agencies, process certification and participation in basic process Communication
Technology and
design and political processes. Web comment forms, upcoming events, on line Governance
polling mechanism, discussion forums and online consultation facilities are part of
this stage. Integrated Portals are central to this integration. Web based political
participation and institutionalisation of stakeholder participation with tools like citizen
polling, mark important benchmarks in this stage. The promise of inclusion of all is
an important hallmark of this stage.

TECHNOLOGY IN GOVERNANCE: KEY
CHALLENGES
The developments in ICT in India have resulted in several initiatives. Despite this, there
are several challenges. Lack of human resources, organisational and technological
infrastructure have posed hindrances to the effective implementation of ICT in governance.
One of the biggest challenges is bridging the digital divide. The term digital divide refers
to the gap between those with regular, effective access to digital and information
technology, and those without this access. It encompasses both physical access to
technology hardware and, more broadly, skills and resources which allow for its use.
The groups often discussed in the context of a digital divide include socioeconomic or
geographical (urban/rural). The term global digital divide refers to differences in technology
access between countries. Essentially, this means the divide between those who have
access to digital technology and those who do not. Several research studies in India
indicate the core elements of digital divide relating to (i) access to computers, (ii)
connectivity, (iii) content (iv) lack of proper ICT infrastructure (v) education (vi) illiteracy.
The availability of information resources can bridge the gap between poverty and
prosperity, particularly in developing countries. The government has taken encouraging
steps to improve the lives of common people through several IT–oriented projects.
Economic prosperity along with reduction in social disparities can bridge digital divide.
E-governance Programmes for Bridging Digital Divide
i) Kisan Call Centres by Ministry of Agriculture, Government of India
ii) Bhoomi Project in Karnataka
iii) Gyandoot Project in Madhya Pradesh
iv) FRIENDS Project in Kerala
iv) Lok mitra Project in Himachal Pradesh
v) CARD Project in Andhra Pradesh
Despite India taking significant steps towards acquiring competence in information and
technology (ICT), there are disparities wherein between people who have access to
technology and those who do not. Most of the Indian villages do not have electricity,
phone connectivity, access to any form of technology and are below the poverty line.
The other challenges include:
• Resources – human, financial and technological
• Literacy, skill and language barriers
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Governance : • Back-end computerisation
Emerging
Perspectives • Monitoring and evaluation
• Political will and bureaucratic commitment
• Resistance to change.
Several policy initiatives have been taken by the government to bridge the digital divide,
however, still many coordinated initiatives are needed with the involvement of public
and private sectors, NGOs and so on. Also the challenges can be met with a multi-
pronged strategy. There is need for proper planning, well laid down priorities, ICT
framework, capacity building, clear cut information policy, documentation, monitoring
and evaluation. Efforts are required for a long term coherent plan for addressing the
ICT concerns by public as well as private sectors. The grassroots organisations and
NGOs along with other stakeholders can play an important role in creating an environment
that will foster technology use and encourage national and international investment in
ICT infrastructure development and creating a skilled work force.
1) Bring out the components of Digital India Initiative.
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2) Discuss the features of Smart City.
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3) What are the key challenges of ICT?
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Information and
8.7 CONCLUSION Communication
Technology and
The impact of information technology on governance and its benefits to the citizens is
Governance
the focal point of this Unit. There have been significant changes in the way the governments
are functioning. It has been imperative for the governments to adopt new techniques
and technologiesfor pursuing good governance agenda. The classical Weberian model,
with its major emphasis on structure, hierarchy, rules, differentiation, distribution of
graded authority and several functional features has been under serious threat. ICT
provides tools and capacity for greater involvement of citizens in enlarging and
strengthening the democratic space.ICT in governance can be sustainable when the
initiatives address the concerns of citizens, create public awareness, ensure political
and bureaucratic acceptability and reduce the digital divide.
8.8 GLOSSARY
Bhoomi: It is a project jointly funded by the Government of India and the Government
of Karnataka to digitise the papers of land records and create a software mechanism to
control changes in land registration.
Big Data: It is the term used to refer to data that is complex and of large volume that
requires to be dealt with in a manner different from traditional data processing application.
Computer-aided Administration of Registration Department (CARD) System:
This is an e-governance initiative of state of Andhra Pradesh which ensures
computerisation of registration of records, property and land transfers resulting in
significant reduction of time and procedures.
Digi Locker: It is a digital locker service operated by the GoI that enables Indian
citizens to store certain documents on the cloud. The service is a part of the Digital
India initiative.
Geographic Information System: It is a decision support system that can capture,
store, check, integrate, analyse and display data using digital maps.
E-seva: Under this project, in the state of Andhra Pradesh, computerised common
service centres have been set up to facilitate citizens pay common utility bills, register
births and deaths, issuance of certificates and so on.
FRIENDS: It is an initiative of Government of Kerala, provided as a single window
facility to the citizens to get access to services offered by government departments such
as civil supplies, electricity, revenue and so on. It is Fast Reliable Efficient Network for
Disbursement of Services (FRIENDS) and under this project Jan Sevana Kendrams
have been set up to provide the required services.
Gyandoot Project: It was initiated in 2000 in drought prone rural Dhar district in the
state of Madhya Pradesh. The objective of this was to enhance participation by citizens
and government in community affairs through creative use of ICT.A wide range of
services are offered such as information about agricultural prices, online registration of
applications for loans, certificates and so on. Village internet kiosks or e-choupals are
run in villages by local entrepreneurs to provide price information to farmers in local
language.
Ham Radio: It is the amateur radio service operated to convey messages using a
variety of technologies under a license.
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Governance : Information Society: It refers to a society that generates, shares and makes available
Emerging to all members of the society the knowledge that may be used to improve human
Perspectives
condition.
Local Area Network (LAN): It is a group of computers and associated devices that
share a common communications line or wireless link to services. The LAN encompasses
computers and peripherals connected to a server within a distinct geographic area such
as an office or commercial establishment.
Lok mitra Project: This was initiated in the state of Himachal Pradesh with grants
from National Bank for Agriculture and Rural development (NABARD) to provide to
the public especially those living in distant rural areas easy access to government
information and facilities of e-governance to their door step. Also Lok mitra
‘Soochanalaya Kendras’ (Information centres) have been set up in certain panchayats
managed by unemployed youth.
8.9 REFERENCES
Bajwa, G.S. (2013). ICT Policy in India in the Era of Liberalisation: Its Impact and
Consequences. GBER. 3(2): 49-61.
Charlabidis,Y. et.al. (2012). ICT for Governance and Policy Modelling: Challenges
and Future Prospects in Europe. 45thHawaai International Conference on System
Sciences. Retrieved from DOI:10.1109/HICSS.2012.306
DANIDA. (2012). Using ICT to Promote Governance. Retrieved from http://um.dk/
en/~/media/UM/English-site/Documents/Danida/Partners/Research-Org/Research-
studies/Using%20ICT%20to%20Promote%20Governance%202012.ashx
Government of India.(2016). Draft Policy on Internet of Things. New Delhi: Department
of Electronics and Information Technology, Ministry of Communication and Information
Technology.
IGNOU.(2015). E-Governance, MPA-017. Faculty of Public Administration: New
Delhi
Kumar, P.et.al. (2014). E-Governance in India: Definitions, Challenges and
Solutions.International Journal of Computer Applications.101(16): 6-8.
Matt. (2007). Evolution of ICT, a blog post retrieved from ICT in Ireland. Retrieved
from https://www.riemysore.ac.in/ict/unit__1__information_and_communication_
technology.html
Sapru, R.K. & Sapru, Y.S.(2014).Good Governance Through E-Governance. New
Delhi: Sage Publications.
Singh, N.(2012).Bridging the Digital Divide in India: Some Challenges and Opportunities.
Retrieved from http://unpan1.un.org/intradoc/groups/public/documents/un-dpadm/
unpan042671.pdf
United Nations Commission on Trade and Development.(2003). Information and
Communication Technology Indices. Retrieved from https://unctad.org/en/Docs/
iteipc20031_en.pdf
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Information and
8.10 ANSWERS TO CHECK YOUR PROGRESS Communication
EXERCISES Technology and
Governance
• Information and Communication Technology (ICT) is the use of technology
in information processing and communication.
• It encompasses use of computers and computer software to gather, convert,
process, store, protect, transmit, retrieve and present the information.
• There are four phases in the evolution of ICT.
• Phase I is identified with the creation of electromagnetic calculator during
World War II.
• Phase II is associated with the development of personal computers.
• The third phase involves the development of micro processors.
• The fourth phase is related to networking.
• The fifth phase to related to development of wireless.
• Digital India Initiative launched in 2014 aims to transform India into a digitally-
enabled and empowered information driven society and knowledge economy.
• Its objective is to ensure the availability of government services to the citizens
through ICT.
• Infrastructure as utility to every citizen.
• Governance and services on demand.
• Empowerment of citizens.
• High speed internet, expansion of broadband accessibility in villages, universal
phone connectivity etc.
• Smart city refers to a city that uses ICT to enhance the quality and
performance of urban services such as energy, transportation and utilities to
reduce consumption, wastage and overall costs.
• The features of Smart Cities include availability of adequate water supply,
assured electricity supply, sanitation, solid waste management, robust IT
connectivity and digitalisation.
• Extensive use of ICT and various physical devices connected to the networks
to optimise the efficiency of city operation.
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Governance : 3) Your answer should include the following points:
Emerging
Perspectives • Digital divide
• Resources-human, financial and technological
• Literacy, skill and language barriers
• Back-end computerisation
• Monitoring and evaluation
• Political will and bureaucratic commitment
• Resistance to change
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UNIT 9 ROLE OF MEDIA*
Structure
9.0 Objectives
9.1 Introduction
9.2 Media: Meaning and Characteristics
9.3 Types of Media
9.4 Media and Governance
9.4.1 Media and Democracy
9.4.2 Media and People’s Participation
9.4.3 Media and Public Opinion
9.4.4 Media and Accountability
9.4.5 Media and Change
9.4.6 Media and Human Rights
9.4.7 Media and Rule of Law
9.5 Challenges for Media

9.6 Conclusion
9.7 Glossary
9.8 References
9.0 OBJECTIVES
• Explain the meaning of media;
• Discuss the different types of media and its importance;
• Comprehend the role of media in good governance;
• Analyse the importance of media in securing people’s participation, public opinion,
human rights and social change; and
• Throw light on the challenges faced by media.
9.1 INTRODUCTION
Governance is the process of decision-making and the manner in which decisions are
implemented. It describes how various public institutions conduct public affairs and
manage public resources. So it is not limited to the three branches of government i.e.,
executive, legislature and judiciary but it needs effective participation from market, civil
society, media, and non-government organisations and masses as well. In today’s
knowledge society with unprecedented developments in information and communication
technology (ICT), media plays a seminal role in ensuring good governance. In fact,
media is considered as the fourth pillar of democracy. There are some essential features
of good governance such as legitimacy, participation, accountability and transparency
about which we have already discussed in Unit 2 of this Course.
* Contributed by Ms. Daisy Sharma, Assistant Professor, University of Rajasthan, Jaipur 123
Governance : In today’s world, media becomes an essential part of our daily life. It may not have a
Emerging direct role in the governance of the country. But it shapes the public opinion; gives voice
Perspectives
to the citizens, provides information to the public institutions, market and civil society.
Today media has immense responsibility in creating and shaping public opinion and
strengthening the society. So it becomes important to understand the role of media and
channelise it to achieve the goals of good governance. In this Unit we shall focus on
these aspects.
9.2 MEDIA: MEANING AND CHARACTERISTICS

The word ‘media’ is derived from the word medium, signifying mode or carrier. Media
is used to reach and address a large target group or audience. It is generally defined as
impersonal means of communication which may be written, visual or auditory or
sometimes a combination of these. Through this, messages, information and ideas are
transmitted directly to the audience. In simpler terms, the word ‘media’ denotes the
means of communication with a large number of people through written or printed
words or sound and voice or visual images or a combination of these. In simplest
terms, we can say that the term media refers to the groups that communicate information
and news to people. Television, radio, newspapers, magazines, audios and videos as
well as movies are examples of media.
By the definition itself, we understand that media is an organised means of sharing
information. Through it we can reach a large number of people, quickly, timely, effectively
and efficiently. The main characteristics of media are:
i) It can reach millions of people in short time; even instantaneously.
ii) Audio media is very useful for illiterate and visually challenged.
iii) Visual media can be effective in a multilingual society with illiteracy to a large
extent.
iv) It is cost-effective and user-friendly.
iv) Generally, media provides one way communication to the recipients. Though these
days opinion polls, letters to editors or open columns are some methods of making
it interactive, but still they are limited.
9.3 TYPES OF MEDIA

Media has become an important part of our life. It has a crucial function to perform to
generate awareness and promote vigilance towards the rule of law and making information
accessible to the citizens, be it legislative or administrative proceedings or documents.
Most people get information about government, happenings around, current affairs and
so on from the media. It contributes towards creating an informed, aware and an
accountable society. There are three main types of news media: print media, broadcast
media, and the internet.
Print Media
This is the oldest media form. Newspapers, magazines, journals, brochures, newsletters,
books, leaflets and pamphlets and other publications are collectively known as the print
media. Most of us start the day by reading a newspaper on a regular basis. Therefore
print media is very significant. The regular readers of print media tend to be more likely
to be aware and active about several issues.
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The print media is responsible for exhaustive reporting than other news sources. Many
news reports on television, for example, are merely follow-up stories about news that Role of Media
first appear in newspapers. Although it is said that the electronic or new media have
replaced the print media, a majority of audience prefer the print media for various
communication purposes.
Broadcast Media
This mass media includes television and radio as well as electronic media like movies,
CDs and DVDs, as well as the new gadgets. Prior to the advent of television in the
1950s, reliance for news was on radio broadcasts. With the emergence of television,
fewer people rely on radio as their primary news source. Local news stations have a
particularly large audience because they can report on local weather, traffic and other
events. In India, radio is still a very important medium of communication. Especially in
rural areas we see that in disaster situations, in giving warnings about weather, this
medium is very useful. Similarly television too has impact due to the presentation and
catchy visuals through which information is disseminated.
Internet
With the advent of new technologies such as the internet, we are now enjoying the
benefits of high-technology mass media, which is faster and has a widespread range.
The internet has the advantage of audio as well as visual components. Mobile phones,
computers and the internet are often referred to as the new-age media. The internet has
opened up several new opportunities for mass communication, including e-mail and
web blogs. It is slowly transforming the news media because more people are relying
on online sources of news instead of traditional print and broadcast media. The web
also allows for a more interactive approach by allowing people to personally tailor the
news they receive through personalised web portals, news groups, podcasts, and feeds.
It makes it more interactive, with audience leaving their comments and having discussions
online. We have dealt this in detail in Unit 8 of this Course.
1) What do you understand by media?
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2) List the features of media.
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Governance :
Emerging 9.4 MEDIA AND GOVERNANCE
Perspectives
Good governance encompasses participation by market and civil society along with the
government in governing, adhering to rule of law, promoting transparency, accountability
and human rights. It includes accountable, transparent, responsive, equitable and inclusive
administration. Media as a fourth pillar of democracy plays a vital role in ensuring that
all these criteria are met. It is not the investigation and criticism of media which ensures
that good governance takes hold, but its role to act as a beacon of change for masses
and as a tool for the “good” and betterment of masses and not in its own interest.
Media’s role in promotion of good governance can be understood with the help of its
contribution in protecting human rights, curbing corruption, promoting rule of law, bringing
change and ensuring people’s participation in decision making. It ensures a check on
government actions and brings out in open public concerns and voices.
In contemporary times media has an important role in governance as it
• Creates a platform for freedom of expression
• Focuses on responsiveness of State to citizens and improve State-citizen relations
• Fosters debates and dialogues by making available balanced and reliable
information.
9.4.1 Media and Democracy

Democracy is the primary requirement for any good governance. And it is rightly said
that democracy without media is like a vehicle without wheels. Media’s role in democracy
is clear when Thomas Jefferson says “If it were left on me to decide whether we should
have a government without newspapers or newspapers without a government, I should
not hesitate a moment to prefer the latter”. Media is being considered as the fourth
pillar of democracy. Media brings about awareness among the people and acts as one
of the major instruments of social change. In a democratic set up, it is media which
strengthens the democratic norms and values and also accelerates the pace of
development.
According to Norris (2006), media has three key roles in contributing to democratisation
and good governance. The very vital function of media is to act as a watch dog over the
powerful, promoting accountability, transparency and public scrutiny. The second
important role of media is to function as a civic forum for political debates, facilitating
informed electoral choice and actions; and the third function is to act as an agenda
setter for policy makers, strengthening government responsiveness for instance to social
problems and to exclusion.
Democracy requires the active participation of citizens. Media keeps citizens engaged
in governance by informing, educating and mobilising them. Democracy can work
properly only if it is able to secure maximum participation of the people. They, when
informed have the knowledge of what is going on and are aware of various social,
political and economic issues. This information about the plans, programmes, policies,
actions and intentions of the government is given to the masses by media. With the
information people get through media, they are able to appreciate or criticise, support
or oppose the government policies. Media also acts as a channel of communication by
which masses raise their voice, concerns and grievances. Many a time, it has been seen
that it is the pressure created by the public opinion which has made governments of the
day to take any particular decision or change their decisions. In this way, media ensures
a democratic base of the good governance. For example in India, the movement of
Anna Hazare for Lokpal Bill was given wide coverage in media. It resulted in mobilisation
126
of entire nation against the corruption and government was pressurised to bring Lokpal Role of Media
Bill in parliament. Recently when Goods and Services Tax (GST) was imposed on
sanitary napkins, womens organisations particularly and women in general registered
their opposition through media particularly social media. We are witnessing many
instances regularly where mobilisation of masses on various issues is taking place. Since
media’s outreach is vast it has a responsible role to play.
It is media which gives the voice to every common citizen in the decision making and
enables an environment for this. The media also exposes the loopholes in the democratic
system and helps the government to fill these and makes the system more accountable,
responsive and citizen-friendly. Thus, media plays a crucial role in shaping a healthy
democracy.
Media has an educative role by not just giving the news but through debates, comments
provide political education and strengthen democratic culture. This is the reason political
scientist, Karl Deutsch, has called that the system of communication proves a “nerve of
the polity”, and any breakdown of the nerve may cause dysfunctional impact in the
performance of the polity causing governance decay. Educating the ignorant masses on
a large scale is a tough task. Only media can achieve this goal. It generates discussion
on issues amongst masses and initiates debates in public sphere and capacitates people
in making informed choice. Aware and informed citizens participate more actively in the
decision making.
9.4.2 Media and People’s Participation

One of the characteristics of good governance is participation. Peoples’ participation
means that citizens and their institutions have the opportunity to be involved in a meaningful
ways in making decisions that affect them or in which they have an interest. Media
increases people’s involvement in the governance .It provides them with the information
and skills needed to participate in political system. It makes citizens feel that they have
the right, the opportunity and a mechanism through which they can make their voices
heard. Through media people can influence the decisions that affect their life. Media
increases access to political information. It provides for creation of a public sphere or
space where people can participate over a wide range of debates and gives opportunity
for presentation of different viewpoints. It creates democratic legitimacy over issues.
1) How does media promote democracy?
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2) What role does the media play in securing people’s participation?
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Governance : .....................................................................................................................
Emerging
Perspectives .....................................................................................................................
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9.4.3 Media and Public Opinion

Public opinion is citizens’ cumulative views on politics, government actions, social issues,
and so on. It is very important for any governance or democratic system to understand
and accept public opinion because citizens’ political actions are driven by their opinions.
It helps political and administrative system to understand citizens’expectations.Public
opinion sheds light on the reasons for specific policy outcomes. It also serves as the
feedback to the government, its policies and actions. Therefore in democratic governance,
authorities come to know about the aspirations, wishes, needs and grievances of people
by gauging public opinion.
Media shapes opinions by providing the information on different issues not only to
public but also to policy makers. Media, first, draws attention to issues. Then it provides
facts, information, and expert opinion. This enables citizens to voice diverse opinions
on governance and reform and help build public consensus to bring about change.
Finally, media provides this information to public policy makers, so that they can develop
an informed decision and move forward with a proper solution to the issue. It reveals
the shortcomings in government policies and actions, so in a way, it constitutes a
mechanism of checks and balances on government.
The media plays another important role by bringing into open public opinion on key
issues. In this way it makes it possible for public opinion to encompass large numbers
of individuals. It also builds grassroots support on key issues to gain importance.
Media not only disseminates information but also plays a vital part in mobilisation of
public opinion. It facilitates interpretation and systematisation of information into firm
viewpoints and allows people mobilise their opinions. This is visible during the conduct
of elections in the country.
Media also helps in raising awareness of the people through disseminating legislative
debates, speeches of eminent personalities, public grievances and current issues. Such
news and views help people to augment their political and social awareness which in
turn, helps in the formation of public opinion. We all are aware about media’s role
before and during elections in our country that contributes to forming public opinion on
issues.
9.4.4 Media and Accountability

Media acts as watchdog against the misuse of administrative authority. Its continuous
watch on government policies and actions ensures accountability of government to the
citizens that helps in improving service delivery and governance. The media reports act
as a check on the arbitrary use of powers by the government authorities and institutions
and ensure that transparency and accountability are adhered in governance.
The World Bank has opined that media by raising corruption as an important governance
issue creates space for discussion about it and also a public consensus to fight against it.
Presently, with multi fold increase in the functions and powers of bureaucracy, there is
a need for check on its arbitrary and misuse. Transparency in governance allows for
128
checks on the possible conflict of interest and ensures greater legitimacy for the Role of Media
government. Media with its investigative reports is able to shed light on this possible
conflict of interest. It ensures that clarity is maintained in the execution of all the
government policies and government is taking care of the interests of the masses but not
of one particular group or section of the society.
9.4.5 Media and Change

Media has the potential of being a change agent. Due to its wide outreach, media has
played a huge role in the development of the country. It implies positive change where
old practices and structures are changed towards a better system and processes. Media
plays a pivotal role in conceptualising, communicating and bringing about this change.
As the Food and Agriculture Organisation (FAO) report has aptly put it, “development
and communication are out of gear. On the one hand, we have the media used without
a developmental purpose. On the other, we have developmental action without media
or communication support. Yet, in an ideal world, the two would work hand in hand”.
Media has an influencing role in changing the mind-set of people and moulds their
perception. It raises various social issues and influences the public opinion. It makes
people aware of their rights as well as duties. Especially in a country like India with
widespread poverty and ignorance, media plays a key role in changing people’s attitudes.
We have several examples where media has played a crucial role in creating awareness
on various social evils and bringing the desired change. For example we are aware of
the success stories of pulse polio campaign. “Do Boond Zindagi Ki” this tagline was
displayed again and again on TV and radio. It was due to this awareness created by
media that India has achieved the rank of a polio-free country. In the case of information
dissemination on HIV/AIDS also, media played a key role. From time to time media
covers women’s issues and raises voice against the cases of domestic violence, dowry,
sexual harassment and makes vociferous demand for a dignified respectable place for
women in the society. We all are aware that the issue relating to organ donation is being
given wide publicity by media. And its gaining momentum and a slow change in public
perception is visible. It indicates the progressive role media has in ushering in social
change.
Media gives information about the government’s plans and programmes relating to
poverty eradication, women empowerment, literacy, employment etc. It generates
awareness among the people on various social, economic, environmental issues. When
people become aware of the government schemes and programmes and their benefits,
they are able to avail them. This ensures the success of the government plans and
policies. Media not only highlights the achievements of the government in terms of its
programmes and policies aimed at bringing social change, but it also gives wide coverage
to their loopholes and shortcomings. This makes government committed to the agenda
of development and change.
Media plays an important role in dissemination of new ideas and practices. Especially
television and radio play a pivotal role in taking the development plans and programmes
to the masses of rural areas.
9.4.6 Media and Human Rights

The Universal Declaration of Human Rights states that all human beings have certain basic
inherent, inalienable and unassailable rights to which they are entitled by birth. Providing
these rights to citizens and protecting the same is the foundation stone of democracy
and good governance. Media has a very important role in securing, protecting and
129
Governance : promoting human rights. It can create awareness about the concept of human rights and
Emerging a congenial environment for their protection. Certain human rights which are basic to
Perspectives
human development like right to equality, freedom of speech, right to peace, right to a
dignified life, should be the common agenda of media and given topmost priority in
coverage. Media should build a culture of human rights through all segments of society.
Media in particular should pay special attention to the cases of violation of human
rights. It should investigate and report on cases of human rights violation. Along with
bringing out the shortages and challenges in the protection of human rights, it should
also cover the success stories of individuals and organisations striving hard for securing
and protecting human rights. Media can act as a check on arbitrary use of power that
affects human rights. Since media plays the role of communication between the State
and the public, it can also play an effective role in making the authorities aware of their
duties. Media has a role in generating awareness among citizens about the rights and
also become a reliable source of information to the public authorities and civil society
organisations working towards protection of human rights.
9.4.7 Media and Rule of Law

Rule of law is essential for the smooth functioning of democracy. According to the
United Nations “The term rule of law refers to a principle of governance in which all
persons, institutions and entities, public and private, including the State itself, are
accountable to laws that are publicly promulgated, equally enforced and independently
adjudicated, and which are consistent with international human rights norms and
standards. It requires, as well, measures to ensure adherence to the principles of
supremacy of law, equality before the law, accountability to the law, fairness in the
application of the law, separation of powers, participation in decision-making, legal
certainty, avoidance of arbitrariness and procedural and legal transparency”.
Rule of law is one of the key pillars of good governance. When rule of law is ensured,
it builds confidence in the democratic process of the country. When it is not respected,
arbitrariness and impunity dominate the governance.
By the term rule of law, we simply mean that everyone is equal before the law and same
rule applies equally to everyone. Media plays a crucial role by promoting vigilance
over maintenance of upholding rule of law. It gives wide coverage to any deviations in
use of rule of law and this creates awareness among the masses and pressurises the
government to take suitable action. Media promotes vigilance towards the rule of law,
especially through fostering investigative journalism, ensures the openness of court,
legislative and administrative proceedings and access to official and public documents.
For rule of law, freedom of speech and independent media are very important. Whenever
government violates the letter and spirit of law, people must be free to and be able to
criticise the actions of government. In this way, media plays an essential role in upholding
the rule of law.
No rule of law can work successfully unless people have faith in it. They need to be
assured that there is some system to raise their voice when law is surpassed and
supremacy of law is threatened, and every case of violation of rule of law will be treated
in a fair and just manner. This instils their faith in governance. In particular, rule of law
can be protected in the presence of independent and honest judiciary. It gives wide
coverage to public interest litigation in which concerned actors-citizens and other voluntary
organisations can bring to the notice of the Supreme Court or the high courts of states,
any issues which need immediate attention and redressal of the affected parties. This
130 also acts as a great shield for the protection and promotion of rule of law in the country.
Media is an important factor in promoting democracy and the rule of law only if it is Role of Media
given the opportunity to function without being oppressed or intimidated by the political
and administrative authorities. The independence of media is threatened if their sources
of information are not protected, and they themselves are open to legal action which
prevents them from reporting in the public interest.
1) What is the impact of media on public opinion?
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2) Explain the role of media in promoting accountable governance.
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3) How does media promote rule of law?
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9.5 CHALLENGES FOR MEDIA

Media acts as a catalyst for good governance by promoting its key indicators. It creates
the environment for good governance, nurtures, protects and promotes it. But to achieve
this task, media needs to be honest, impartial and independent. But if media is biased,
corrupt and favours only a particular party or few individuals, it can prove to be very
dangerous for the smooth functioning of democracy. On the contrary when media is
monopolised by a particular party or a corporate house, its credibility is at stake. Paid
news is a threat to free and fair media that needs to be curbed for promoting healthy
democracy and good governance.
In present scenario, media is facing enormous challenges.
131
Governance : • The nexus between political parties, media and corporate houses is proving fatal
Emerging for good governance. Many a times it is observed that media is not representing
Perspectives
the voice of people but vested interests of its stakeholders. It derails the process
of healthy participation of people. It undermines the accountability of government
and paves the way for another form of corruption. It turns the democracy into
aristocracy. So it is very important that media should be free and neutral so that it
can work without any fear or pressure.
• Equally important is the fact that media’s powers should have some reasonable
restrictions. We have seen large scale misuse of media’s powers. It must not cross
its boundaries and encroach the area of other three branches of government. Only
then it can serve as a true vehicle of good governance.
• Media needs to be sensitive to explain and generate discussions on those issues
that bring about development.
• Use of ICT and responsible social media also plays an important role in developing
informed citizens.
• Building professionalism, ethical standards of media through independence, building
capacity, enhancing their accountability, free from intervention by the State and the
media owners and democratising media access.
Media independence is to be ensured and its potential in promotion of effective
governance is to be sustained.
9.6 CONCLUSION
The role of media including social media is getting recognised. It needs to make people
information rich and make them active participants in governance process. As we have
discussed in the Unit, media has a multifaceted role to discharge. A sensitive, accountable,
responsible and professional media can contribute immensely in effective governance.
9.7 GLOSSARY
Paid News: It refers to media outlets publishing articles in newspapers, magazines and
news coverage in electronic media in exchange for money.
Public Interest Litigation: It refers to a suit filed by an individual or group of individuals
in the Supreme Court or High Courts of the states. This is filed generally on matters of
public interest such as violation of fundamental rights, education, health, environment
and so on.
9.8 REFERENCES
Mcquail, D. (1980). Mass Communication Theory. London: Sage Publications
UNESCAP. (2009). What is Good Governance. Retrieved from: http://
www.unescap.org/pdd/prs/ProjectActivities/Ongoing/gg/governance.asp
James, B. (2006). Media and Good Governance. Retrived from: http://
unesdoc.unesco.org/images/0014/001463/146311e.pdf
Gorwala, A.D. (1971). The Press as an Educative Factor. In A.G.Noorani (ed.).
Freedom of Press in India. Bombay: Nachiketa
132
Shringarpure, S. (2016). Role of Media in Indian Democracy. International Education Role of Media
and Research Journal. 2(6): 7-8.
Balkin, J.M. (1999). How Mass Media Simulate Political Transparency. Cultural
Values. 3(4): 393-413.
Macdonell, R. & Pesic, M. (2006). The Role of the Media in Curbing Corruption. In
Stapenhurst, N., Johnston, N.& Pelizzo, R. (Eds.), The Role of Parliament in Curbing
Corruption. Washington. D.C: World Bank Publications.
Norris, P. (2006). The role of free press in promoting democratization, good governance
and human development. Mcguire lecture in Comparative Politics, Harvard
University. Cambridge MA.
Liu, J. (2017). The Role of Media in Promoting Good Governance and Building Public
Perception About Governance: A Comparison Of China And The United States. Wayne
State University Dissertations. Retrieved from: https://digitalcommons.wayne.edu/
oa_dissertations/1832
Padhy, K.S. & Sahu, R.N. (2005). The Press in India: Perspective in Development
and Relevance. New Delhi: Kanishka Publications.
Dutta, S. (2011). Social Responsibility of Media and Indian Democracy. Global Media
Journal – Indian Edition/ Summer Issue. 1-8.
Kaur, S. & Navjot, K. (2014). Role of Media in Present Indian Social Scenario. IOSR
Journal of Humanities and Social Science. 19(9): 50-51.

EXERCISES
• Media is generally defined as impersonal means of communication which can
be written, visual or auditory or sometimes a combination of these.
• It also refers to the groups that communicate information and news to people.
• Its reach to people in short time.
• Audio media is very useful to illiterate and visually challenged.
• Visual media can be effective in a multilingual society and with illiteracy to a
large extent.
• Cost-effective and user friendly.
• Generally it is one way communication but of late it is becoming interactive.
• Media acts as a watchdog over the powerful, promoting accountability,
transparency and public scrutiny.
• Civic forum for political debate, facilitating informed electoral choices and
actions.
133
Governance : • Agenda setter for policy makers, and strengthening responsiveness for citizens
Emerging and government.
Perspectives
• Media provides people information and skills needed to enable them
participate in political system.
• It gives people the opportunity to influence the decisions that affect their life.
• It makes the voice of citizens heard.
• Media shapes public opinion by providing information on different issues not
only to the public but also to policy makers.
• Reinforces the latent attitudes of public and activates them to take action
accordingly.
• Builds grassroots support on key issues to gain importance.
• Helps in raising awareness of people which in turn helps in formation of public
opinion.
• Media acts as watchdog against misuse of administrative authority.
• It acts as a check on the arbitrary use of powers by government authorities.
• It creates a space for discussion and public consensus.
• It checks possible conflict of interest in government and ensures legitimacy
for the government.
• Media promotes exercise of vigilance in maintaining rule of law.
• It ensures openness in judicial, legislative and administrative proceedings and
access to official and public documents.
• It instils faith amongst people over rule of law.
• It creates awareness on the importance of public interest litigation.
134
UNIT 10 CORPORATE GOVERNANCE*
Structure
10.0 Objectives
10.1 Introduction
10.2 Corporate Governance: Meaning and Significance
10.2.1 Meaning of Corporate Governance
10.2.2 Significance of Corporate Governance
10.3 Principles of Corporate Governance

10.4 Models of Corporate Governance
10.5 A Trajectory of the Growth of Corporate Governance: International and National
Scenario
10.5.1 International Scenario
10.5.2 Indian Scenario
10.6 Challenges of Corporate Governance

10.7 Conclusion
10.8 Glossary
10.9 References
10.0 OBJECTIVES
• Elaborate the meaning and significance of corporate governance;
• Enumerate the principles of corporate governance;
• Describe the models of corporate governance;
• Trace the growth of corporate governance;
• Discuss the International and Indian experiences in the growth of corporate
governance; and
• Analyse the challenges of corporate governance.
10.1 INTRODUCTION
The notion of corporate governance has gained more prominence in recent years though
concern for the effective functioning of the corporate organisations in a proper framework
has been there for a long time. There has always been differentiation between public
administration and the private administration. While the former is concerned about the
public or governmental domain, which entails public policy implementation and functions
through the legislature, executive and judiciary, the latter is concerned about the corporate
entity that works for the profitability of the organisation. In such a context, with the
* Contributed by Dr. Senthamizh Kanal, Consultant, Faculty of Public Administration, SOSS,
135
IGNOU
Governance : coexistence of public and corporate sectors, the need for corporate governance was
Emerging felt in recent years, with some corporates resorting to unethical means to earn huge
Perspectives
profits. In particular, in the era of globalisation, where there is increasing corporate
scandals, inflated revenues, financial crisis and the mismanagement by the board of
directors, the need for a strong governance framework has been felt in ensuring efficient,
and effective functioning of the enterprises.
In crux, effective corporate governance is essential for the growth, profitability, and
stability of the business vis-à-vis economy and for welfare of the society at large. Good
corporate governance promotes economic development, strong financial systems and
the sustainability of the business. In this Unit, you shall be introduced to the concept of
corporate governance, its meaning and significance. In addition, an analysis of the
principles and models of corporate governance shall be done. The Unit shall give a
trajectory of growth of corporate governance. It will also discuss the initiatives taken at
the global and national level in the domain of corporate governance.
10.2 CORPORATE GOVERNANCE: MEANING AND

SIGNIFICANCE
10.2.1 Meaning of Corporate Governance
The concept of corporate governance gained momentum in the late 1980s with the
basic purpose of promoting balance in corporate enterprise and ensuring accountability.
The term ‘corporate’ is derived from the Latin word ‘corpus’, which means a ‘body’.
The Cadbury Committee (1992) that coined the term corporate governance defines it
as “the system by which companies are directed and controlled”. Before we actually
get into the other definitions of corporate governance, it is important to understand the
basic structure and the stakeholders involved in a corporate entity. There are three key
players in the corporate governance sector, i.e., (i) Shareholders – who have invested
their money in the corporation; (ii) Executive Management – who runs the business and
is responsible to the board of directors; and (iii) Board of Directors – who is elected by
the shareholders and is accountable to them (Murthy, 2004).
The Board of Directors of the corporate entity is responsible for the governance of the
company. The shareholder’s role in governance is to appoint the directors and the
auditors and to satisfy themselves that an appropriate governance structure is in place.
The responsibilities of the board include setting the company’s strategic aims, providing
the leadership to put them into effect, supervising the management of the business and
reporting to shareholders on their stewardship. The Board’s actions are subject to
laws, regulations and shareholders in general body meeting (Kumara Mangalam Birla
Committee, 1999).
Thus, corporate governance is about the way the business is directed, monitored and
controlled to attain its goals and objectives. It is guided by a set of principles, ethics,
values, morals, laws, rules and regulations. The major objective of the corporate
governance is to maximise the shareholder value in a company and also to ensure the
transparency and earn the trust and confidence of the investors, customers, employers,
the government and the people. This is possible when there is transparency, openness,
boldness, fairness and justice (Murthy, op.cit.).
According to Adrian Cadbury (1992), “Corporate governance is concerned with holding
the balance between economic and social goals, and between individual and communal
goals. The governance framework is there to encourage efficient use of resources and
136 equally to require accountability for the stewardship of those resources. The aim is to
align nearly as possible the interest of individuals, corporations and society. The incentive Corporate
to corporations is to achieve their corporate aims and to attract investment. The incentive Governance
for the state is to strengthen their economies and discourage fraud and mismanagement”.
The definitions of corporate governance vary as per context and cultural situations
(Armstrong & Sweeney, 2002). There are some scholars who are of the view that the
companies should run in the interest of the shareholders, while there are others who
insist that companies should take account of interests of various stakeholders in the
society. The definitions thus vary as per the views taken up, which are either narrow or
broad. The narrow view of corporate governance looks at the set of rules, regulations,
laws, institutionalised procedures and norms (Alawattage & Wickramasinghe, 2004).
The broader view of corporate governance goes beyond board processes and
procedures, and considers the relationships between management, boards, shareholders
and other stakeholders such as employees and the community (Bain & Band, 1996).
As put forward by Claessens (2006), the definitions of corporate governance fall into
two categories. The first set of definitions is concerned with a set of behavioural patterns
– the actual behaviour of corporations, in terms of such measures as performance,
efficiency, growth, financial structure, and treatment of shareholders and other
stakeholders. The second set is concerned with the normative framework – the rules
under which firms are operating, with the rules coming from such sources as the legal
system, the judicial system, financial markets, and labour markets.
In the Indian context, corporate governance is defined in the following ways:
According to Securities Exchange Board of India (SEBI) “corporate governance is all
about recognition by management about their role as corporate trustees and immutable
rights of shareholders as they are the real owners of the company. It is all about dedication
to carry out good business performance through proper ethics and values by
differentiating corporate and personal resources in the process of company management”.
The Institute of Company Secretaries of India (ICSI, 2003) defines corporate governance
as “a blend of rules, regulations, laws and voluntary practices that enable companies to
attract financial and human capital, perform efficiently and thereby maximise long term
value for the shareholders besides respecting the aspirations of multiple stakeholders
including that of the society”.
10.2.2 Significance of Corporate Governance

The Committee on Corporate Governance that was constituted in India in 2003 under
the chairmanship of Narayana Murthy in its report states that “if management is about
running businesses, governance is about ensuring that it is run properly.” It is important
that the companies are properly governed and managed as it is of great significance in
recent times, not only to the business entity but also to the government, the various
stakeholders and the society at large. Corporate governance is necessary to:
• Bring clarity to the respective responsibilities of directors, company managers,
shareholders and auditors and enhance the accountability so as to strengthen trust
in the corporate system vis-a-vis capital market.
• Attract investors – both local and foreign – and assure them that their investments
will be secure and efficiently managed, and in a transparent and accountable process
(i.e. strengthening capital market).
• Prevent fraud and malpractices or unethical behaviour by companies.
• Create competitive and efficient companies and business enterprises. 137
Governance : • Enhance the performance of those entrusted to manage corporations.
Emerging
Perspectives • Promote efficient and effective use of limited resources.
• Ensure long-term value creation, performance, and sustainability of the company
which will be in the interests of large stakeholders.
• Build public confidence in the corporation.
In addition, Medury (2003) observes that an effective corporate governance framework
is needed, which will facilitate the enterprise to:
• Strive towards efficient use of resources, which in turn promotes economic
development.
• Ensure compliance of the needed regulatory requirements, laws and regulations.
• Create confidence among the stakeholders.
• Promote shareholder activism. The investor has a key role in the present governance
system. The faith and trust of the investor can be secured through information
dissemination, participation and transparency in activities of enterprise; and
• Establish board of management’s accountability to the enterprise, stakeholders
and society at large.
The corporate frauds and governance failure occurring globally, make it necessary for
institutionalising proper norms and laws with international requirements for governing a
company.
10.3 PRINCIPLES OF CORPORATE GOVERNANCE

There are no globally accepted set of principles that can be applied to corporates.
However, across the world many of the corporates, governments, practitioners and
academicians have laid down certain basic principles for corporate governance. In
other words, they are the guidelines based upon the ethics and values of the society for
good corporate governance. In particular, the OECD Principles of Corporate
Governance (2004) is the benchmark for policy makers, investors, corporations and
other stockholders. The following are the major principles of corporate governance,
put forward by the OECD Report:
1) Ensuring the Basis for an Effective Corporate Governance Framework :
The corporate governance framework should promote transparent and efficient
markets, be consistent with the rule of law and clearly articulate the division of
responsibilities among different supervisory, regulatory and enforcement authorities.
2) The Rights of Shareholders and Key Ownership Functions :The corporate
governance framework should protect and facilitate the exercise of shareholders’
rights. The basic rights of the shareholders are secure methods of ownership
registration; transfer shares; obtain relevant and material information on the
corporation on timely and regular basis; participate and vote in general shareholders’
meetings; elect and remove members of the board; and share in the profits of the
corporation.
3) The Equitable Treatment of Shareholders : The framework should ensure
equitable treatment of all shareholders, including minority and foreign shareholders.
All shareholders should have the opportunity to obtain effective redress for violation
138 of their rights.
4) The Role of Stakeholders in Corporate Governance : The framework should Corporate
recognise the rights of stakeholders established by law or through mutual agreements Governance
and encourage active cooperation between corporations and stakeholders in
creating wealth, jobs and the sustainability of financially sound enterprises.
5) Disclosure and Transparency : The framework should ensure that timely and
accurate disclosure is made on all material matters regarding the corporation,
including the financial situation, performance, ownership, and governance of the
company.
6) The Responsibilities of the Board : The framework should ensure the strategic
guidance of the company, the effective monitoring of management by the board,
and the board’s accountability to the company and the shareholders.
The aim and objectives of these principles are to standardise and professionalise the
management of enterprise, so as to promote inclusion of independent directors; enhance
the board performance; and ensure transparency and accountability to the shareholders.
In addition the principles ensure:
• Effectiveness of audit committee and role of independent director. The audit
committee has an important role to play in reviewing the operations of company
relating to financial and other aspects.
• Independent leadership: This is necessary to oversee and guide the management
to function in the best interests of the company and stakeholders.
• Building consensus among stakeholders.
• Accountability: The enterprises need to ensure proper accountability to all those
stakeholders who are likely to be affected by the decisions of the management
including social as well as environmental responsibility.
• Adherence to rule of law by functioning within the legal frameworks that are
formulated by the authorities.
1) Explain the concept and significance of corporate governance.
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2) Discuss the principles of corporate governance.
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Governance : .....................................................................................................................
Emerging
Perspectives .....................................................................................................................
10.4 MODELS OF CORPORATE GOVERNANCE

The corporate governance pattern may differ from corporation to corporation. The
nature of the corporate is determined by outlining the rights and responsibilities of all the
stakeholders with the suitable legal and regulatory framework and the de facto realities
of the corporate existence. The above mentioned factors differ from country to country.
The practitioners and the researchers have identified three types of models such as the
Anglo Saxon, Continental and Japanese. Each model is differentiated based on certain
factors of the company which includes: major stakeholders in the company, share
ownership pattern, composition of board of directors, regulatory framework, disclosure
requirements of publicly-listed stock corporations and the interaction between the
stakeholders. Let us discuss these models:
Anglo Saxon Model (The Anglo US Model)
Generally the Anglo US model is described as the outside shareholders or ‘outsiders’
control model. This model is prevalent in UK and USA. The key players in this model
are management, board of directors and shareholders. Here the capital is raised through
equity financing. It can be noticed that the New York Stock Exchange and the London
Stock Exchange are placed in top positions across the world. In this model, the
shareholders get powers to appoint and dismiss the directors, but they do not exercise
direct control on the management of the enterprise. The boards of directors carry out
the corporate activities with the help of various committees and the chief executive
officer. The monitoring and supervisory control over the management is exercised by
the board. The board dominates the company and controls the functioning of the
management at arm’s length. It is for this reason the model is called as outsider model.
Japanese Model
The Japanese model consists of a network of suppliers and buyer companies (“Keiretsu”).
The Japanese model of corporate governance is concerned with the code and conduct
of the board of directors who are selected on behalf of the investors. Here the boards
of directors of the corporations consist of fully insiders. They are the heads of the
central administrative body. The board of directors is responsible for monitoring and
controlling the activities of organisation so as to enable its effective management and
protect the rights of investors. The Japanese model basically represents the interests of
companies and employees rather than shareholders. The Japanese boards are larger
than the boards of UK, USA and Germany. The approximate number of members of
the board is fifty.
Continental Model (Franco German Model)
The German model is different from the UK, USA and Japan models. However, some
of the factors are similar to the model of Japan. For instance, in Germany, the long-term
stakes of the corporations are held by the bank, which is similar to the Japanese model
too, where the bank officials represent the stakes of Japanese corporations. Similarly,
both the models have a two-tier system in managing their functioning. In Japan, the
model consists of the general committee and the board of directors, whereas in Germany,
the corporation consists of the management board and the supervisory board. As far as
financial transactions are concerned, the German corporations prefer bank transaction
140 instead of equity financing. Another significant feature of the continental model is that, a
major role is given to the auditors’ committee which represents the stockholders and Corporate
the labour. Governance
From the Anglo-Saxon, Japanese and Continental models, it can be observed that
models are different from one country to the other and sometimes, even within the same
country, the models are different from one corporation to the other. However, irrespective
of the changes that are there in various models of corporate governance, there are
some set of features that are followed in almost all models with minor variations. Some
of the key components, as highlighted by Medury (2003) include the following:
• Shareholders elect directors who represent them;
• Directors vote on key matters and adopt the majority decisions;
• Decisions are made in a transparent manner so that shareholders and others can
hold directors accountable;
• The company adopts accounting standards to generate the information necessary
for directors, investors and other stakeholders to make decisions;
• The company’s policies and practices adhere to applicable national, state and
local laws.
10.5 A TRAJECTORY OF THE GROWTH OF

CORPORATE GOVERNANCE:
INTERNATIONAL AND NATIONAL SCENARIO
10.5.1 International Scenario
At the global level, the late 1980s, 1990s and the early 2000 had witnessed a major
eruption of financial scandals by big corporates such as Enron, WorldCom, and Arthur
Anderson in US and Maxwell and Poly Peck, among others in UK. This had mooted
the debates on the importance of corporate governance in general and the roles of
board of directors (BOD) in particular. It further led to the enactment of the Accounting
Industry Reform Act (Sarbanes-Oxley Act) of 2002 and the Code of Best Practices
(Cadbury Code) of 1992 in US and UK respectively. The Sarbanes-Oxley Act had
made a significant contribution in monitoring the operations of banks and other
corporations more effectively in the US. After this Act, the corporations were brought
under intense public scrutiny and the focus was laid more on the quality of corporate
governance standards. It also led to the introduction of a Cadbury Code. The Cadbury
Code, not only made all UK companies listed on the London Stock Exchange (LSE)
to follow this Code, but also made them to give declaration statement of whether the
Cadbury Code is followed or not in their annual reports. If certain code was not
followed, they were also asked to explain the reasons for not complying with the same.
This ‘comply or explain’ format of self-regulation served as standards for investors to
understand the facts about corporates listed in stock exchange.
The Cadbury Report was followed by the Greenbury Report of 1995 (on executive
pay package), the Hampel Report of 1998 (reviewed implementation of the Cadbury
and Greenbury recommendations) which together became the Combined Code in 1998.
Later, the Higgs Report of 2003 (on the role and effectiveness of non-executive directors),
and the Smith Report of 2003 (on the role and effectiveness of audit committees) were
incorporated into the updated and revised Combined Code of the LSE in 2003.
The Cadbury Report of 1992 had thus contributed to the development and adoption of 141
Governance : corporate governance. The report was also instrumental for the adoption of corporate
Emerging governance framework, best practices in corporate governance, or even the codes that
Perspectives
were adopted across different parts of the world including India (http://
cadbury.cjbs.archios.info/report/further-reports).
10.5.2 Indian Scenario

In India, the evolution of corporate law has lineage to the colonial era where several
previous company legislations were structured based on parallel English legislations.
However, after independence, the Government appointed a Committee under the
chairmanship of H.C. Bhaba in the year 1950 to revise the Indian Companies Act of
1913. Based on the recommendations of this Committee and the provisions of the
English Companies Acts, the landmark Companies Act 1956 was introduced in the
parliament. The Companies Act 1956 came into force on 1st April 1956. It is the principal
legal instrument which contains provisions regarding the role and functioning of the
board of directors and the governance of the companies. Since its formulation, this Act
has undergone several amendments, based on the requirements.
However, after deregulation, privatisation, marketisation, and globalisation in 1991,
India has renewed its interest and realised the need for corporate governance in the
country’s corporate sector. Over the years, government has come up with elaborate
governance reforms for Indian Companies based on the recommendations of series of
committees - the Kumara Mangalam Birla Committee (1999), the Naresh Chandra
Committee (2002), the Narayana Murthy Committee (2003), and the Adi Godrej
Committee (2012). The present corporate governance norms, enshrined in the
Companies Act, SEBI listing agreement and Clause 49 of the listing agreement are the
result of deliberations by these committees. Yet another committee — the Uday Kotak
committee formed in June 2017 has submitted its report in October 2017. This report
has recommended major overhaul of corporate governance norms for listed companies.
The Ministry of Corporate Affairs, Confederation of Indian Industries (CII), the Securities
and Exchange Board of India (SEBI), the Associated Chambers of Commerce and
Industry (ASSOCHAM), Chartered Accountants, of India and Institute of Company
Secretaries of India are the few organisations which are continuously playing a vital role
in the development and implementation of corporate governance in India. Understanding
the dynamic nature of market environment (national and international), investors’
behaviour and company’s characteristics, changing context and times, the above said
organisations have been constituting various committees to recommend rules, regulations
and policies in the form of reports for good corporate governance practices. The reports
of various committees helped a lot in streamlining the corporate governance in India.
Some of the key contributions made by the committees in the direction of corporate
governance are tabulated as below
YEAR CHAIRMAN/ Constituted by Key Contributions
COMMITTEE
NAME
1998 Rahul Bajaj Confederation of “Desirable Corporate
Indian Industry (CII) Governance: A Code” was
introduced with 17
recommendations.
1999 Kumara Mangalam Securities Exchange Aimed “to promote and raise the
Birla Board of India standard of good corporate
(SEBI) governance”. It has attempted to
evolve a Code of Corporate
Governance based on Indian
business environment.
142
2000 Standing Reserve Bank of It compared the status of Corporate
Committee on India corporate governance in India vis- Governance
International à-vis internationally recognised
Financial Standards best practices and standards and
and Codes listed out suggestions to improve
corporate governance standards in
India.
2001 Consultative Group Reserve Bank of It reviewed the supervisory role
of Directors of India of Boards of Banks and Financial
Banks and Institutions vis-à-vis compliance,
Financial transparency, disclosures, audit
Institutions committee, etc., and made
recommendations for making the
role of board of directors more
effective.
2002 High-Level Department of The committee analysed and
Committee to Company Affairs recommended changes in the
examine various (DCA) under the areas of governance and audit.
Corporate Ministry of Finance,
Governance under Department of
the Chairmanship Company Affairs,
of Shri Naresh Government of India.
Chandra.
2003 Committee on SEBI Reviewed the performance of
Corporate corporate governance and
Governance under determined the role of companies
the Chairmanship in responding to rumours and
of Shri N.R. other price-sensitive information
Narayana Murthy circulating in the market, in order
to enhance the transparency and
integrity of the market.
2003 The Committee on Ministry of Finance, Aimed to ensure a scientific and
Regulation of Department of rational regulatory environment.
Private Companies Company Affairs, The main focus of this report was
and Partnerships Government of India. on (a) The Companies Act, 1956
under the & (b) The Indian Partnership Act,
Chairmanship of 1932.
Shri Naresh
Chandra (Naresh
Chandra
Committee II)
2004 Expert Committee Ministry of Corporate The Ministry of Corporate Affairs
on Company Law Affairs has proposed an overhaul of the
under the existing Companies Act, 1956
Chairmanship of and introduced governance
Dr. J.J. Irani reforms through the proposed
company law viz. the Companies
Bill, 2011.
2009 Voluntary Ministry of Corporate MoCA came out with “Voluntary
Guidelines on Affairs (MoCA) Guidelines on Corporate
Corporate Governance 2009” to encourage
Governance 2009 the Indian Corporates to
voluntarily adopt the best
corporate governance practices in
their companies.
2012 Adi Godrej Ministry of Corporate The aim was to formulate
Committee Affairs comprehensive policy framework
to enable corporate governance of
the highest quality in all classes
of companies without impinging
on their internal autonomy to
order their affairs in their best
judgement.
143
Governance : 2013 The Companies Ministry of Corporate  It replaced the regulations of
Emerging Act, 2013 Affairs Companies Act, 1956.
Perspectives  Introduced ‘one person
company’.
 Mandatory transfer of 2 per
cent of average net profit of
preceding three years for
Corporate Social
Responsibility.
 Compulsory Internal Audit.
 Maximum members for
private company increased
200 from 50.
 Appointment of at least one
woman director in the
company.
 Prohibition of insider trading
of securities.
Source: Compiled from various documents.

The above committees have broadly recommended various corporate governance
measures such as size of board of management, its composition, members’ qualifications,
their remuneration ; roles and responsibilities of board members; meeting procedure;
role of chairman; functions, roles and responsibilities of executive management; content
of company’s annual report to be submitted to board members and other stakeholders;
roles, responsibilities and rights of shareholders; formation of remuneration committee;
constitution of audit committee, auditor qualifications, content of company documents
submitted for audit purpose, its independence and its assisting role in board of
management; shareholder information; voluntary disclosure and transparency of
information flow among all stakeholders; company performance; company’s compliance
with rules, regulations, laws and more importantly moral, ethical and environmental
compliance; risk management, independence of the board of management etc.
Thus, based on the major recommendations of some of these committees, there was a
major overhaul of corporate governance in India and many new modifications were
made in the governance of corporate affairs in India at different point of time.
The efforts towards ensuring better corporate governance aim at promoting independence
of the board, its accountability to stakeholders, transparency in its activities that lends
credibility to the enterprise.
10.6 CHALLENGES OF CORPORATE

GOVERNANCE
Ensuring effective corporate governance is not an easy task. Despite having corporate
governance codes, there are certain challenges that the enterprises are confronted with
and these encompass:
• An effective enforcement mechanism to ensure that the codes of governance are
adhered to and governance standards are maintained.
• The conflict of interest of any board member that could influence the decisions
taken by the company.
• Balanced composition of the board to ensure proper mix of skills and perspectives
in board room decisions.
144
• Ensuring accountability to all the stakeholders.
• Monitoring of the functioning of the company especially of the board of directors Corporate
and management by the shareholders. Governance
• Effectiveness of audit committee and independent director.

There are efforts being made globally towards improving the functioning of corporate
boards. There are challenges in the process. What is required is a professional board,
committed to ensuring transparency and accountability in operations and commitment
to stakeholders and working toward the sustainability of the enterprise.
1) Discuss the models of corporate governance.
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2) Trace the growth of corporate governance in Indian scenario.
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10.7 CONCLUSION
As discussed in this unit, corporate governance occupies a place of prominence in the
era of globalisation, wherein scandals of the corporate entities were brought to light in
recent times. It was felt necessary that a strong corporate governance framework is
essential not only to monitor the functions and activities of the companies, but also to
ensure transparency and accountability, thereby protecting the rights of shareholders,
stakeholders and the society at large. In this Unit, you were introduced to some of the
principles of corporate governance that were put forward by OECD and also the various
models of corporate governance followed in US, UK, Japan and Germany. The Unit
also brought insights from the various countries and India in particular on the measures
taken and challenges of corporate governance.
10.8 GLOSSARY
Keiretsu : Keiretsu is a Japanese term describing a group of affiliated corporations
with broad power and reach. Keiretsu Forum is described as a conglomeration of
individuals or small companies that are organised around private equity funding for
mutual benefit. Keiretsu Forum believes that through a holistic approach that includes
145
Governance : interlocking relationships with partners and key resources, they can offer an association
Emerging that produces the highest quality deal-flow and investment opportunities (http://
Perspectives
www.keiretsuforum.com).
Shareholder: It is referred to as a stockholder, any person, company, or institution
who/ that owns at least one share of a company’s stock.
10.9 REFERENCES
Achives of Corporate Governance Reports. Retrieved from http://cadbury.cjbs.archios.
info/report/further-reports
Alawattage, C. &Wickramsinghe, D. (2004). Governance in Dialects: Their Regimes
and Roles of Accounting in Sri Lanka. Retrieved from https://www.researchgate.net/
publication/265996585_GOVERNANCE_IN_DIALECTS_THEIR_REGIMES_
AND_ ROLES_OF_ACCOUNTING_IN_SRI_LANKA.
Armstrong, A., & Sweeney, M. (2002). Corporate Governance Disclosure:
Demonstrating Corporate Social Responsibility through Social Reporting. New Academy
of Review. 1(2): 51-69.
Bain, N. & Band, D. (1996). Winning ways through Corporate Governance. London,
UK: Macmillion Press Ltd.
Cadbury, A. (1992). The Cadbury Committee Report of Corporate Governance.
Retrieved from http://cadbury.cjbs.archios.info/_media/files/CAD-02467.pdf.
Claessens, S. (2006). Corporate Governance and Development. The World Bank
Research Observer. 21(1): 91-122.
ICSI.(2003). ICSI Recommendations to Strengthen Corporate Governance Network.
Retrieved from https://www.icsi.edu/media/webmodules/linksofweeks/
Recommendations%20Book-MCA.pdf.
Kumar Mangalam Birla Committee.(1999). Report of the Kumar Mangalam Birla
Committee on Corporate Governance. Retrieved from http://www.nfcg.in/UserFiles/
kumarmbirla1999.pdf.
Medury, U. (2003). Corporate Governance Framework: Issues and Challenges. In
Alka Dhameja (Ed.). Contemporary Debates in Public Administration. New Delhi,
India: PHI Learning Private Limited.
Murthy, N.R. (2004). Corporate Governance and its Relevance to India. India
International Centre Quarterly. 31(1): 104-111.
OECD.(2004). OECD Principles of Corporate Governance. Retrieved from https:/
/www.oecd.org/corporate/ca/corporategovernanceprinciples/31557724.pdf.
Raju, S. (2003). Principles and Practices of Corporate Governance. In Alka Dhameja
(Ed.). Contemporary Debates in Public Administration.New Delhi, India: PHI
Learning Private Limited.
Shleifer, A. & Vishnay, R.W. (1997). A Survey of Corporate Governance. The Journal
of Finance.52(2): 737-783.
Som, L.S. (2006). Corporate Governance Codes in India. Economic and Political
Weekly. 41(39): 4153-4160.
146
Three models of Corporate Governance from Developed Capital Markets. Retrieved Corporate
from http://www.emergingmarketsesg.net/esg/wp-content/uploads/2011/01/Three- Governance
Models-of-Corporate-Governance-January-2009.pdf
Oberoi, R. (2016). Concept of Corporate Governance. In Alka Dhameja & Sweta
Mishra (Eds.). Public Administration. Approaches and Application. New Delhi,
India: Pearson.
Zingales, L. (1998). Corporate Governance. The New Palgrave Dictionary of
Economics and the Law. London, UK: Macmillan.

EXERCISES
• Corporate governance is about the way the business is directed, monitored
and controlled to attain its goals and objectives.
• Various definitions.
• Significance of corporate governance.
• Ensuring the basis for an effective corporate governance framework.
• The rights of shareholders and key ownership functions.
• The equitable treatment of shareholders.
• The role of stakeholders in corporate governance.
• Disclosure and transparency.
• The responsibilities of the board.
• Anglo Saxon Model (The Anglo US Model)
• Japanese Model
• Continental Model (Franco German Model)
2) Your answer should include the following Points:
• Kumara Mangalam Birla Committee
• Committee on Corporate Governance under the Chairmanship of Shri N.R.
Narayana Murthy.
• The Companies Act, 2013.
147
UNIT 11 SUSTAINABLE HUMAN
DEVELOPMENT*
Structure
11.0 Objectives
11.1 Introduction
11.2 Sustainable Development: Conceptual Framework
11.3 Understanding Human Development
11.4 Sustainable Human Development: An Overview
11.5 Conclusion
11.6 Glossary
11.7 References
11.0 OBJECTIVES
• Provide a conceptual framework of sustainable development;
• Explain the concept of human development; and
• Give an overview of sustainable human development.
11.1 INTRODUCTION
Sustainable human development is a combination of two components – sustainable
development and human development. It is a desirable objective that aims to be socially
inclusive, bring about socio-economic prosperity, and inter-generational equity. A
working definition of sustainable human development (SHD) refers to “equitable human
and social development, maintaining environmental integrity, and ensuring that these
conditions also be attainable for future generations” (Rucki, 2014). At the Advanced
Consortium on Cooperation, Conflict, and Complexity (AC4), Columbia University,
four propositions have been presented to identify the purpose of SHD. According to
this, SHD involves the prevention of deprivation of basic human needs, the promotion
of individual development, equity, and the opportunity for people to define and pursue
individual values alone and within social groupings and organisations of varying size and
scope, the safeguarding of public, social, and environmental goods over time and across
locations, and resolving conflicts between competing interests and needs through the
creation of cooperative social, political, economic, and environmental institutions (ibid.).
Theoretically, it is possible to combine sustainable development and human development.
In reality, there remains a wide chasm between environmental sustainability and human
development. There have been past attempts to reconcile the two concepts. For example,
indices for environmental sustainability such as Environmental Performance Index,
* Contributed by Sanghamitra Nath, Assistant Professor, Bajkul Milani Mahavidyalaya, Vidyasagar

148 University(WB)
Environmental Vulnerability Index, and the Environmental Sustainability Index which Sustainable
evaluate the socio-economic and ecological aspects of sustainability. The indices for Human
Development
human development such as Human Development Index, the Global Peace Index, and
the World Happiness Report assess the various aspects of human well-being. However,
the absence of a unified theoretical framework precluded fool-proof development of
the concept of SHD. Beaglehole (2015) noted that fundamental challenges to SHD
were mainly inequitable distribution of global wealth, population growth, and
environmental depletion. While the Millennium Development Goals and Sustainable
Development Goals provided ‘what’ needed to be achieved, they did not tell ‘how’ to
achieve those goals for the realisation of SHD.
In this Unit, we shall attempt to provide a conceptual framework of development and
explain the concept of human development and present a comprehensive framework of
sustainable human development.
11.2 SUSTAINABLE DEVELOPMENT:

CONCEPTUAL FRAMEWORK
The concept of ‘sustainable development’ is a combination of two separate terms,
‘sustainable’ and ‘development’. Clubbing the two words, it transforms into a powerful
concept which promises development that is sensitive to the state of environment as
well as its impact on present and future generations and contributing to its sustenance in
the long-run. Prior to the concept of ‘sustainable development’, environmental concerns
were viewed in terms of ‘limits to growth’ at the United Nations Conference on
Environment and Development held in Stockholm in 1972. The shift from ‘limits to
growth’ to ‘sustainable development’ came after a period of 20 years at the United
Nations Conference on Environment and Development (UNCED) or the Earth Summit
hosted in Rio de Janeiro (Brazil) in 1992. However, the World Commission on
Environment and Development (WCED) had already presented their definition of
sustainable development in their report, Our Common Future, in 1987. Also known
as the Brundtland Report, it spelt out sustainable development as development which
meets the needs of the present without compromising the ability of future generations to
meet their own needs. As a result, it gave weightage to environmental, economic, and
societal dimensions of sustainable development. Furthermore, the Brundtland Report
proposed eight objectives of sustainable development: reviving growth; changing the
quality of growth; meeting essential needs for jobs, food, energy, water, and sanitation;
ensuring a sustainable level of population; conserving and enhancing resource base;
reorienting technology and managing risk; merging environment and economics in decision
making; and reorienting international economic relations. The actual process of
simultaneous realisation of the broad goals proved complicated as well as balancing
objectives and judging success or failure proved arduous. Sustainable development
attempts at harmonising three inter-connected realities-economic activities, social
development and the environmental mechanisms. It is development that satisfies the
needs of the present without compromising the capacity of future generations,
guaranteeing the balance between economic growth, concern for the environment and
social well being.
Sustainable development is enmeshed in the tension between advocating economic
growth on one hand, and equitable provision of basic needs, conservation of natural
capital, maintenance of integrity of ecosystems and diversity of species on the other
hand. Still, sustainable development primarily emphasised upon satisfaction of basic
human needs particularly of the poor, of the present and future generations. Since
satisfaction of basic human needs relied upon economic growth, it explained revival of
growth being the first objective while conservation of environment being the fifth objective
149
Governance : of the Brundtland Report. Globally, since 1992, sustained efforts were on to focus on
Emerging sustainable development and embark upon suitable national strategies. The UN Summit
Perspectives
on sustainable development, formulation of Millennium development goals, later the
Sustainable Development Goals (SDGs) are measures in this direction.
The SDGs laid down by United Nations General Assembly in 2016 considered as
global goals, are a universal call for action to end poverty, protect the planet and ensure
that people enjoy peace and prosperity. These are 17 goals, about which we have
discussed in detail in Unit 5 of this Course. The SDGs, built on the successes of
Millennium Development goals (MDGS) include new social and economic development
areas such as health, education, water, sanitation, climate change, economic inequality,
innovation, peace, social justice and so on.
1) Explain the concept of sustainable development.
.....................................................................................................................
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2) What are sustainable development goals?
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11.3 UNDERSTANDING HUMAN DEVELOPMENT

The concept of human development is based on the idea that expansion of a person’s
capability consequently expands his/her choices. While income is considered to be an
important component, it is also recognised that development means more than
accumulation of income and wealth. Alternatively, realisation of goals of human
development requires good governance to provide an enabling environment (Baru,
1998). The United Nations Development Programme (UNDP) brings out Human
Development Reports that indicate the parameters of human well-being examined from
various perspectives in different countries of the world. In the first Human Development
Report, published in 1990, the novel Human Development approach was introduced
which emphasised on enrichment of human life instead of enrichment of economy. Its
basic premise was “People are wealth of a nation” The Human Development Report
Office (HDRO), UNDP, defines Human Development as “expanding the richness of
human life, rather than simply the richness of the economy in which human beings live.
150
It makes the case for a human development approach where people are able to enjoy Sustainable
greater freedom, opportunities and choices. In other words, this approach promotes Human
Development
people-centric rather than growth-centric ideas along with the creation of an environment
of equitable opportunities and choices for everyone “to develop to their full potential
and to have a reasonable chance of leading productive and creative lives that they value
later”.
During the later half of the 20th century, a perception emerged that Gross Domestic
Product or GDP was not the suitable indicator of human well-being. While the 1960s
witnessed demand to divest GDP as a measure of well-being, 1970s and 1980s were
characterised by arguments for an alternative approach that transcended GDP to include
parameters such as fulfilment of basic needs, redistribution with growth and employment.
Today, human development approach consists of two dimensions:
1) Directly enhancing human abilities. This includes:
• Long and healthy life;
• Knowledge; and
• Decent standard of living.
2) Creating conditions for human development. This encompasses:
• Participation in political and community life;
• Environmental sustainability;
• Human security and rights; and
• Gender equality.
The above analysis of human development approach underscored whether people can
“be” and “do” things desired in a lifetime.
The practical aspect of the human development approach is expressed as Human
Development Index (HDI). HDI evaluates a country’s development based on the criteria
of human capabilities instead of economic growth per se. It does so by assessing overall
performance of core aspects of human development: a long and healthy life, being
knowledgeable and enjoying a decent standard of living. For example, a long and healthy
life is measured by life expectancy at birth; education criteria is measured by mean of
years of schooling for adults aged 25 years and more, and expected years of schooling
for children of school entering age; and standard of living criteria is measured by gross
national income per capita. The HDI is tabulated as the geometric mean of normalised
indices for each of the three core aspects of human development.
The concept of human development was pioneered by intellectuals, such as Mahbub
Ul Haq and Amartya Sen. According to this, human development is considered as
development of the richness of human life and not the wealth of the economy. Mahbub
Ul Haq appointed as the special advisor to the UNDP in 1989 initiated the publishing of
annual reports by the Human Development Report Office (HDRO), which subsequently
published the annual reports. Within less than 50 years of its genesis, it transformed into
a powerful agency mobilising governments and non-governmental organisations (NGOs)
as well as triggering innovative thinking in development economics. It steered focus to
the ‘human’ aspect of development policy of governments because it recognised “People
[as] the real wealth of a nation” and “Human development is the end - economic growth
a means”. Particularly, the first human development report stressed upon (1) formation
151
Governance : of human capabilities, for example improved health, knowledge and skills, and (2) use
Emerging of acquired capabilities, for example leisurely activities, productive purposes, cultural,
Perspectives
social and political pursuits.
Human development is considered as a process of expanding the real freedom that
people enjoy. It aims at providing better opportunities to people with a view to achieving
long and healthy life, access to knowledge and acceptable living standards. It
encompasses political, economic and social freedom, creativity, respect for human rights,
etc.
Comparing human development between global North and South, wide disparities were
observed in the spheres of education, technology and information systems. Haq (1992-
2007) found tertiary enrolment rate in the South to be only one-fifth of the North,
research and development expenditure to be only 4 per cent, and expenditure on scientific
and technical personnel to be only one-ninth. He surmised that the huge gaps in
technological progress and limited market opportunities would acutely disturb attainment
of human development. Haq believed that strong recommendations forwarded in the
1992 Human Development Report would ensure that “no single human being is ever
condemned by the sheer accident of birth but has equitable access to the entire range of
national and global opportunities to develop his or her full human potential. This alone
will transform the notion of one planet into one humanity and will create a new human
order”.
UNDP’s Human Development Reports have relied on Amartya Sen’s capability
approach as a conceptual tool to analyse existing developmental challenges. The capability
approach defined human development as a process that encompassed not only people’s
performance but also capabilities to perform and the scope to do and to be in this life.
Simply put, the capability approach articulated human development in terms of enlarging
choices. Along with Prof.Sudhir Anand from Oxford University, Amartya Sen developed
the methodology to evaluate human development, particularly Human Development
Index (HDI) followed by Gender-Related Development Index, Gender Empowerment
Measure and Human Poverty Index (HPI).
11.4 SUSTAINABLE HUMAN DEVELOPMENT: AN

OVERVIEW
The goal of Sustainable Human Development (SHD) emerged decisively at the 1995
World Summit for Social Development held in Copenhagen. Also known as the
Copenhagen Declaration, it promised to make development people-centric. This idea
of SHD appeared in the Human Development Reports too as a firm alternative to the
current development paradigm. The UNDP (1990-1997) framed it in terms of processes
that enlarged people’s capabilities and choices to facilitate fulfilment of their needs.
Unlike the development paradigm, it aimed at equitable distribution rather than economic
growth only, regeneration of the environment, and promoting empowerment and
participation of people especially prioritising the poor. It gave importance to people’s
welfare and security instead of income, consumption or productivity only, so that people
were both the ‘means’ and ‘ends’ of development. The attainment of the objectives of
SHD rested upon sound governance, equity, sincere North-South partnerships, and
active involvement and empowerment of the downtrodden (Nicholls, 1996).
The 1990s witnessed immense economic growth as well as increasing disparity between
the ‘haves’ and ‘have nots’. The period was marked by persistent poverty, rising
marginalisation, and disappointment with Keynesian principles of central planning and
152 neo-liberal models of market-led growth. After World War II, it was assumed that
poverty could be eradicated in developing countries by pursuing robust economic growth Sustainable
because the fruits of fiscal development would trickle down to the lowest sections of Human
Development
society helping the poor to live to the fullest. However, the trickle-down theory proved
to be inadequate because poverty not only persisted but also increased the rich-poor
divide marginalising particularly the women. A world-wide perception, therefore,
emerged that development ought to be sustainable and human. The support for the
convergence of human development and sustainable development rendered creation of
the new paradigm called Sustainable Human Development (SHD). This paradigm puts
more emphasis on multidimensional aspects of life, changes in economic spheres, political
culture, institutional frameworks, and social relationships along with gender relations,
and such other conditions which contribute to expansion of capacities and choices for
human lives to flourish (Plewis, et al., 1996). The Human Development Report 1994
concluded SHD to be “pro-people, pro-job, pro-nature which gives the highest priority
to poverty reduction, productive employment, social integration and environmental
regeneration”.
Amartya Sen opined that SHD could be a model for preserving environment, promoting
economic and social justice and improving human well-being through strengthening
essential freedom to augment human capacities. Sen’s capability approach refuted his
earlier conception of well-being as consumption-generated utility. Instead it dwelt upon
personal situation viewed with sympathy or concern, that is, a person’s standard of
living manifested by the ability to achieve all the objectives that he/she had reasons to
choose. Sustainable human development encompasses key concerns such as poverty,
security, human rights, gender empowerment, climate change, ecosystem preservation
etc. It requires policy measures promoting inclusive growth, expansion of productive
employment, microfinance, financial inclusion and pro-poor economic policies. In India,
the Mahatma Gandhi National Rural Employment Guarantee Act is in this direction.
Globally many schemes have been initiated to promote SHD.
While ‘development’ is not new to humanity, it started garnering attention only in the
1990s marked by the end of the Cold War accompanied by the dismal performance of
structural adjustment and stabilisation programmes, and re-search for a holistic definition
of development that went beyond economic growth. Inclusion of human rights was one
of the means to redefine development. While opinions prevailed that human rights should
be mainstreamed into development, there was little clarity on the methods to achieve
the same. Initially, the role of rights in the development discourse was perceived in the
form of ‘right to development’. The idea was floated in 1972 in the backdrop of debates
on the New International Economic Order. The right to development encapsulated
both political legitimacy and ethical authority assisting third world countries to justify
their combined demand for equitable resource distribution and political and civil human
rights. It also became the pivot in the third world countries’ struggle to make the United
Nations General Assembly (UNGA) adopt ‘right to development’. When it was finally
adopted in 1986, the UNGA resolution read as, “The right to development is an
inalienable human right by virtue of which every human person and all people are entitled
to participate in, contribute to, and enjoy economic, social, cultural and political
development, in which all human rights and fundamental freedoms can be fully realised”.
With time, the ‘right to development’ paradigm evolved into ‘rights-based development’
where rights were viewed as “fixed properties or legal certainties…because…its use
lies in two things that are both important for development specialists: one about claims,
and one about processes – in other words, one about ends and one about means”. This
approach constructed the objectives of development in terms of claims, duties, and
mechanisms that facilitated awareness about rights and arbitration on violation of rights. 153
Governance : In other words, the rights-based approach made a claim on the State through
Emerging interrogating State policy and discrimination and emphasising on accountability against
Perspectives
violation of claims. However, human-rights claims tend to be inherently political, with its
issues constantly shifting over time. It also questions the developmental processes which
bypass adherence to the principles of human rights.
1) What do you understand by human development?
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2) Explain the concept of sustainable human development.
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11.5 CONCLUSION
The concept of sustainable development, as we have discussed in this Unit, expanded
its ambit from environmental protection to harmonisation of economic activities, and
social development. As explained, human development is very broad encompassing
human security, individual freedom and rights to enable people lead a better life.
Sustainable human development relies upon ethics and cooperation between government
and citizens to resolve persistent problems, particularly relating to poverty and human
insecurity. It provides a framework to receive development assistance as well as initiates
global endeavours to ensure a decent standard of life to everyone in the present and the
future.
Sustainable human development requires active participation of the civil society to ensure
government accountability in public interest. Civil society can provide conditions and
roadmap for the State and the market. It was felt that poor and marginalised groups
might not be able to actively contribute so that power inequalities bedeviled civil societies.
Thus, measures should be adopted to enable their participation in decision-making and
make their voices heard in public domain. Moreover, establishing linkages with voluntary
sector (NGOs), corporate sector, United Nations and the Bretton woods institutions
would not only improve accountability and transparency but also streamline objectives
within the framework of SHD that would culminate in translation of policies into strategies.
154
Sustainable
11.6 GLOSSARY Human
Development
Bretton Woods Institutions: These are the World Bank and International Monetary
Fund which were set up at a meeting of 43 countries in Bretton Woods, New Hampshire,
USA in July 1944. The objective of this was to help rebuild the shattered post war
economy and to promote international economic cooperation.
Gender-related Development Index (GDI): It is an index designed to measure
gender equality. The aim of this is to add a gender-sensitive dimension to the Human
Development Index (HDI). This index along with Gender Empowerment Measure was
introduced in 1955 in the Human Development Report by the United Nations.
Gross Domestic Product: It is the monetary measure of the market value of all the
final goods and services produced in a period of time, often annually or quarterly.
Nominal GDP estimates are commonly used to determine the economic performance
of a whole country or region and to make international comparison.
Human Development Index (HDI): It is a statistical index of life expectancy, education
and per capita income indicators, which are used to rank countries into four tiers of
human development. This was created to emphasise that people and their capabilities
should be the ultimate criteria for assessing the development of a country, not economic
growth. It was developed by Indian Nobel prize winner Amartya Sen.
Human Poverty Index (HPI): It is an indication of the standard of living in a country
developed by the United Nations to complement the HDI.It concentrates on the
deprivation in the three essential elements of human life already reflected in the HDI:
longeivity, knowledge and a decent standard of living.
Millennium Development Goals (MDGs): These were the eight international
development goals for the year 2015 that had been established following the millennium
summit of the unions in 2000 with the adoption of UN Millennium Declaration. All 191
United Nations Member states at that time and around 12 international organisations
committed to help achieve MDGs by 2015.These goals are to eradicate extreme poverty
and hunger; achieve universal primary education; promote gender equality and empower
women; reduce child mortality; improve maternal health; combat HIV/AIDS, malaria
and other diseases; ensure environmental sustainability; and develop global partnership
for development.
New International Economic Order: It refers to a set of proposals put forth during
1970s by some developing countries through the United Nations Conference on Trade
and Development to promote their interests by improving their terms of trade, increasing
development assistance, developed country tariff reductions etc .It was meant to be a
revision of the international economic system in favour of third world countries.
Structural Adjustment and Stabilisation Programme: This refers to a package of
reform measures promoted by Bretton woods Institutions, US Congress Treasury and
several think tanks during the 1980s, which aimed to address the economic crisis,
especially of Latin American countries. The programme emphasised the need for sound
macro-economic and financial policies, trade and financial liberalisation, privatisation
and deregulation of domestic markets. It promoted minimal State that refrains from
economic intervention and focuses on sound monetary policy by letting the markets
work, getting the prices right, privatising etc.
World Happiness Report: It is a landmark survey of global happiness. It is an annual
publication of United Nations Sustainable Development Solutions Network which
155
contains rankings of national happiness and analysis of data from various perspectives.
Governance :
Emerging 11.7 REFERENCES
Perspectives
About Human Development. Retrieved from: http://hdr.undp.org/en/humandev
Baru, S. (1998). Mahbub ul Haq and Human Development: A Tribute. Economic and
Political Weekly. 33(35): 2275-2279.
Beaglehole, R. (2015). Sustainable human development—but how? The Lancet.
386(10007): 1934–1935.
Haq, Mahbub (1992). Human Development in a Changing World. Human Development
Occasional Papers (1992-2007). Retrieved from: https://econpapers.repec.org/paper/
hdrhdocpa/hdocpa-1992-01.htm
Harris, J. M. (2000). Basic Principles of Sustainable Development. Working Paper
00-04. Global Development and Environment Institute, Tufts University. Retrieved from:
http://econwpa.repec.org/eps/dev/papers/0106/0106006.pdf
Lele ,S.M. (1991). Sustainable Development: A Critical Review. World Development.
19(6):607-621.
Nath, S. (2015). Rethinking Sustainable Development as Sustainable Ecological
Services. Journal of Environmental Research and Development. 9(3A): 1031- 1036
Nicholls, L. (1999). Birds of a Feather? UNDP and ActionAid Implementation of
Sustainable Human Development. Development in Practice. 9(4): 396-409.
Our Common Future, Chapter 2: Towards Sustainable Development 1987. Retrieved
from http://www.un-documents.net/ocf-02.htm
Plewes, B., Sreenivasan, G. & Draimin, T. (1996). Sustainable Human Development
as a Global Framework. International Journal of the New Development Debate.
51(2): 211-234.
Rucki, K. (2014). The Four Propositions for Sustainable Human Development.
Retrieved from: http://ac4.ei.columbia.edu/files/2014/03/AC4-SHD-Project-Update-
10-31-14.pdf
Sen, A. (1989). Development as Capabilities Expansion. Journal of Development
Planning. 19:421-58.
United Nations Development Programme (UNDP). Retrieved from https://core.ac.uk/
download/pdf/6248876.pdf
What is Human Development? Retrieved from http://hdr.undp.org/en/content/what-
human-development

EXERCISES
• Sustainable development is development that satisfies the needs of the present
without compromising the capacity of future generations.
• It attempts to maintain the balance between economic growth, social
156
development and environmental concerns.
• Sustainable development is holistic, which aims at reviving growth, meeting Sustainable
essential needs for food, water, sanitation, conserving and enhancing resource Human
Development
base, reorienting technology and managing risk and so on.
• Sustainable development goals have been laid down in 2016 by the United
Nations General Assembly.
• There are 17 global goals, the realisation of which calls for action on part of
all nations to end poverty, protect the planet and ensure that people enjoy
peace and prosperity.
• They include social and economic development areas such as health,
education, water, sanitation, climate change, people, social justice and so on.
• Human development approach emphasises on enrichment of human life instead
of environment of economy.
• Human development approach makes a case for people to enjoy greater
freedom, opportunities and choices.
• It is people-centric than growth-centric.
• This approach consists of two dimensions: i) directly enhancing human abilities
through long and healthy life, knowledge and decent standard of living ii)
creation of conditions for human-development through social and political
participation, environmental sustainability, human security and rights and gender
equality.
• The concept of sustainable human development (SHD) involves actions and
processes that enlarge people’s capabilities, and choices to facilitate fulfillment
of their needs (SHD), emphasises on development being sustainable and
human.
• It is pro-people, pro-nature giving priority to poverty reduction, productive
employment, social integration and environmental regeneration.
• Amartya Sen considered SHD as a model for preserving environment, aim-
economic and social justice and improving human well-being through
strengthening essential freedom to augment human capacities.
157
UNIT 12 TRANSPARENCY AND
ACCOUNTABILITY*
Structure
12.0 Objectives
12.1 Introduction
12.2 Transparency: Conceptual Framework
12.3 Meaning of Accountability
12.4 Need for Transparency and Accountability
12.5 Mechanisms of Transparency and Accountability
12.6 Operationalisation of Transparency and Accountability
12.7 Conclusion
12.8 Glossary
12.9 References
12.0 OBJECTIVES
• Explain the concept of transparency and accountability;
• Discuss the need for transparency and accountability;
• Highlight the various mechanisms of transparency and accountability; and
• Make an appraisal of transparency and accountability in practice.
12.1 INTRODUCTION
The changing scenario of the globalised world has increased the expectations of people
for better quality and standard goods and services from the service providers. The
corporate giants and dwarfs moulded themselves according to the changing needs of
the people and attempted to meet the customers’expectations through better service
delivery. Public agencies too felt the impact of globalisation as also the need for
reforms in the administrative processes and practices. Transformation was visible in the
governance process. The main idea behind such reforms was providing better quality
goods and services to the citizens. Concepts such as accountability, transparency and
participation started gaining ground in the governance.
In the wake of rising corruption and corrupt practices as also the distrust of the citizens
towards the government and the governance process, the issues of transparency and
accountability became all the more important. Transparency and accountability have
become globally relevant and vital for good and effective performance and responsible
governance. The two major pillars in the architecture of good governance are
strengthening the relationships between the electorate and their representatives.
* Contributed by Dr. Sweta Mishra, Senior Assistant Professor, Department of Political Science,
158 Gargi College, University of Delhi
In this Unit we shall explain the concepts of transparency and accountability, examine Transparency and
the need, and its mechanisms. Accountability
12.2 TRANSPARENCY: CONCEPTUAL

FRAMEWORK
Transparency has become one of the key concepts of contemporary times.It refers to
openness in government policies and decisions. It means that the decisions taken and
their enforcement are done in a manner that follows rules and regulations. It implies that
the information is freely available and directly accessible to those who will be affected
by such decisions and their enforcement.
Transparency International defines transparency as a principle that allows those affected
by administrative decisions, business transactions or charitable work to know not only
the basic facts and figures but also the mechanisms and processes (Rai, 2011). It is
based on the premise of the free flow of information and its accessibility and availability
to those who are affected by the decisions, which are taken in the process of governance.
The information provided has to be understandable and of relevance to the concerned.
It refers to a situation in which the business and activities of the government are done in
an open manner without any secrecy so that people can trust that their elected
representatives are fair and honest. It means that all the government actions should be
scrupulous enough to bear public scrutiny. It also means that enough information is
provided and that it is in an easily communicable form and medium. A vigilant citizenry
is vital for the functioning of democracy. It facilitates accountable administration, prevents
arbitrariness in administration and makes it responsive to citizens.
In political and administrative sense, it corresponds to openness in governance about
all the decisions and actions. It includes freedom of information as a civil right, open
meetings, financial disclosure, budgetary review and audit and so on.
12.3 MEANING OF ACCOUNTABILITY

Accountability is the key component of good governance. It is the obligation of an
individual or organisation to account for its activities, accept responsibility for them and
to disclose the results in a transparent manner. It is explaining and justifying what has
been done, what is being done currently and what is being planned. It is about giving
information on the available resources and regular evaluation to determine if the goals
are being met. It is the process of carrying out the representatives’ assigned mandate,
and the willingness to face the consequences of their official actions, which would be
published through the acts of periodic reporting (Vijaylakshmi, 2006). In simple terms,
accountability is answerability for one’s actions or behaviour. In the concept of
governance, it is the mechanism or methodology through which a public agency or
public official fulfils assigned duties and obligations.
Accountability is also defined as answerability for performance or the obligation to
report to others. It is a process of being called to account to some authority for one’s
actions, or of giving an account (Mulgan, 2000). It means to explain, justifyand answer
questions about how resources have been used and to what extent. It is a form of
introspection by institutions to examine their operations and at the same time have a
critical review from outside.
Accountability can be described as a force on external behaviour to ensure that there is
firm compliance with specific policies and directives. It can be seen as a constraint on 159
Governance : arbitrary use of powers. It is a mechanism of making governance effective through
Emerging bettering or improving service delivery and governmental answerability.
Perspectives
Accountability, thus, entails an element of control by bringing within its ambit not only
bureaucracy, but legislature, executive and judiciary as well. It has to ensure answerability
as well as proper enforcement for violating certain laid down norms. It involves making
politicians, administrators, governmental, non-governmental and private sector
organisations, accountable for their activities. It is a necessity for ensuring public officials’
answerability to citizens through political executives.
In general, accountability is ensured through adherence to organisational rules and
regulations, complying with laws, following professional code of conduct and being
responsive to all key stakeholders. In the present globalisation scenario there are several
stakeholders including market, civil society, citizens, media and involvement of all in the
governance process makes accountability complex.
12.4 NEED FOR TRANSPARENCY AND

ACCOUNTABILITY
In a democracy, people elect their representatives and give them the power to rule and
govern on their behalf. In return they expect that the elected representatives will make
policies and programmes for the benefit of the people. In other words, it becomes the
duty of the government to work in the interest of the citizens, ultimately leading to their
welfare. In delivering goods and services and performing welfare role, the government
spends a huge amount of money a major chunk of which comes from tax payers.In
such a scenario, the government becomes answerable to the public and it has to give an
account of money spent, whether the development goals have been realised, and the
benefits are reaching the masses, whether the various policies and programmes of the
government are leading to welfarism and the government funds are handled in accordance
with rules and regulations. The citizens have a right to know all these and thus they
need to be informed about the decisions and actions of the government. Keeping all
this in view, it becomes important that the government functions in a transparent manner
and is made accountable for its decisions and actions.
Transparency and accountability in governance is required because of the following
reasons:
• Expansion of government’s role and activities: In India, the main aim of the
State after independence was to bring about socio-economic change and speedy
development. The collapse of colonialism opened an entirely new area of
administration and governance which focused on developmental goals and poverty
eradication. The new policies included the areas of human concern such as
development of women, children and physically challenged, marginalised sections
and so on. All this led to expansion of government departments with overlapping
boundaries for work. In such a scenario, the need for accountability and
transparency was felt so that one could keep a check on the functioning of various
departments.
• The concept of delegated legislation : As the States’ functions and areas of
operation expanded, we saw a simultaneous increase in delegated legislation. The
legislature delegated its power of legislation to executive. As a result, the permanent
executive became both the formulator and implementer of laws. This led to increase
in the powers of the executive. Thus, to keep a check on the powers and functions
160 of the executive, accountability and transparency became necessary.
• Politics-bureaucracy nexus : In a democratic country like India which is Transparency and
committed to welfarism, we see a close collaboration and cooperation between Accountability
the politicians and the bureaucrats. This sometimes forces the bureaucracy to get
committed to the government. The bureaucrats instead of being committed to the
policies get committed to ruling party’s agenda. In such a situation, the bureaucracy
becomes highly politicised and neutrality takes a back seat. This calls for suitable
checks.
• Check corruption and corrupt practices : There has always been a fear that the
system may become corrupt, due to absolute power. This was very true for India
as it was on the path of speedy socio-economic development and in order to
achieve this goal, the government and administration were vested with vast powers.
There are many instances of government indulging in corrupt practices, be it
misuse of governmental machinery during elections, favouring their near and dear
ones in appointments and promotions, disregarding constitutional norms, rules
and procedures to serve their own interests, political patronage and so on.While
A.D. Gorwala Report exposed this aspect as early as 1950s, in current times we
come across several such instances. The quantum of black money, politics of
opportunism, various scams and scandals are a proof that we need a mechanism
to check corrupt practices.
• Apathetic nature of the citizens : In a democracy, people’s participation should
not only be limited to electing their representatives. They need to play a larger
role. But in a country plagued with so many social evils, illiteracy, poverty,
unemployment, people are not active participants. As a result, the benefits and
fruits of development do not reach the needy.
The citizens for long have been treated as vote-bank. The politicians used them for their
own political motives. Huge amounts of money were spent on development programmes
and projects, but the real development was nowhere to be seen. Had the citizens been
aware and been active participants, they would have always questioned the misuse of
money and power. In such a scenario, it becomes all the more important to make the
system transparent and accountable.
The above points make it clear that there was an urgent need for accountability and
transparency in the system. It was necessary to check that laws work as they are
prescribed and that too without any delay and wastage; that politicians and administrators
exercise lawful and sensible administrative discretion; they recommend new policies
and propose changes in existing policies; and enhance citizens’ confidence in the
administrative institutions of government (Bhattacharya, 2001). Apart from this, it is
required for controlling abuse of bureaucratic power and discretion to ensure that policy
enforcement is as per standards and quality, and that it could facilitate continuous
improvement in governance (Ibid.).
1) Explain the concepts of transparency and accountability.
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161
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Perspectives .....................................................................................................................
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2) Give reasons that necessitate transparency and accountability.
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12.5 MECHANISMS OF TRANSPARENCY AND

ACCOUNTABILITY
In view of the gaps mentioned above, the demand for answerability, responsiveness
and transparency gathered momentum in democracy across the world and India was
no exception to this. As a result, a number of mechanisms have been initiated towards
this in India from time to time.
Accountability calls for:
• Making laws work with minimum waste and delay
• Exercising appropriate administrative discretion
• Recommending new polices and proposing changes in existing policies and
programmes
• Enhancing the confidence of citizens and government
• Access to information and freedom of expression
• Responsiveness of public agencies to the citizens’ needs
There are various mechanisms of ensuring accountability and transparency. These
encompass parliamentary control over expenditure through questions, cut motions in
parliament, parliamentary committees, auditing, public interestlitigation, judicial decisions
and so on.
We shall discuss some of them now:
Central Vigilance Commission
The Central Vigilance Commission, set up in 1964, as a follow-up of the
recommendations of the Santhanam Committee, by the executive resolution of the
Government of India, is an institution which makes the public officials and administration
accountable for their acts. It is a non-statutory body which falls within the jurisdiction
of the Ministry of Personnel. It is conceived as the apex vigilance institution which is
free from any executive authority, monitoring all vigilance activities. The jurisdiction of
the Commission covers all employees in public undertakings, corporate bodies and
other institutions working under the central government, the Delhi Metropolitan Council
and the New Delhi Municipal Committees.
Over the years, there has emerged a web of vigilance agencies in the country. These
162
agencies are responsible for ensuring accountability of public servants through the Transparency and
vigilance mechanism. It is a body for reviewing and keeping vigilance over all Accountability
organisations but it does not take any action against them.The advisory role of the
commission extends to all matters of vigilance administration referred to it by the
departments/organisations of the government.
Comptroller and Auditor General
The Comptroller and Auditor General (CAG), a Constitutional authority, is another
accountability mechanism in India. It is the guardian of the public purse and it is the
duty of CAG to see that only authorised expenditure in made out of the Consolidated
Fund of India. The office of CAG carries out its duties in an autonomous manner and
is independent of any kind of executive control. The CAG presents its report to the
Parliament through the Public Accounts Committee. It ensures that the money shown
in accounts is utilised for the prescribed purpose and the expenditure conforms to the
authority which governs it. Some of the major scams in India such as Bofors,2G-
3Gspectrum, Coalgate and Commonwealth Games, have been exposed by the CAG.
Lokpal and Lokayukta
The first Administrative Reforms Commission (ARC), constituted in 1966, gave priority
to the problem of redressal of citizens’ grievances and recommended the creation of
Ombudsman type institution in order to remove the sense of injustice from the minds of
adversely affected citizens and also to instil public confidence in the efficiency of the
administrative machinery (Jain,1996).The ARC recommended the establishment of two
special authorities designated as Lokpal and Lokayukta to deal with the complaints
against administrative acts of Ministers and Secretaries at the central and state levels
respectively.
The Lokpal and the Lokayuktas were to be independent of the executive as well as the
legislature and the judiciary. The investigations and proceedings were to be conducted
in private and were to be informal in character. Their appointment, as far as possible,
was to be non-political. Their proceedings were not to be subject to judicial interference.
The recommendations of the ARC were accepted by the Government of India, and
accordingly in May, 1968 a Bill named Lokpal and Lokayukta Bill, 1968 was
introduced in the LokSabha and was passed by it on August 20, 1968 and was then
sent to the RajyaSabha for consideration. However, the bill could not be passed as the
LokSabha was dissolved in December 1970.
The Bill was once again introduced in the LokSabha in 1971, but could not be passed.
Since then several attempts were made to establish these institutions. However, the Bill
was finally passed as a result of civil society movement led by Anna Hazare. The Lokpal
and Lokayukta Act came into force from 16 January 2014.
In the meanwhile, some of the states initiated the Lokayukta Bill. Odisha has been the
first state to pass the Lokayukta Act and create the institution of Lokayukta in 1970,
followed by Maharashtra in 1972, Rajasthan in 1973, Bihar in 1974, UP in 1975,
Karnataka in 1979, Madhya Pradesh in 1981, Andhra Pradesh in 1983, Gujarat in
1986, Punjab in 1995, and so on. The Lokayuktas have the power to start investigations
at their own initiative and can call for relevant files or documents, from the state
government, if necessary for their investigation.
Citizen’s Charter
Citizen’s Charter is a non-agency devise for people’s participation. It is a document
representing an effort to focus on the commitment of the public organisations towards 163
Governance : its clients/citizens. It is a manifestation of public organisations’ desire to provide quality
Emerging services to its clients. The idea behind the charter is tapping citizen’s responses to the
Perspectives
actual working of government organisations and to build efficiency and effectiveness of
public services.
The concept was first initiated in Great Britain when a white paper was issued in the
form of Citizen’s Charter in 1991. This was followed by other countries like Australia,
Canada, Malaysia, India, etc., for providing better services to citizens.
It is a concept based on government-citizen relationship. It views public services through
the eyes of those who use them i.e., the citizens. Although citizen’s charter is not
enforceable by the citizens, it provides a tool for improving the public delivery system
based on certain standards, quality and time frame. It gives more power to the citizens
and also more freedom to choose.
The key elements of citizen’s charter are:
• Standards – setting, monitoring and publication of standards of service that the
user can expect. This enables citizens to understand what they can expect from
the organisation and approach accordingly.
• Information and openness – full and accurate information should be readily
available in a simple language. This would include those who are involved in the
service delivery. The availability of timely and appropriate information to the citizens
adds to their satisfaction and enhances the prestige of civil service in their eyes.
Charters should also provide the details pertaining to official hierarchy, where
citizens can get information and in case of non-availability of the concerned officer,
an alternative should be provided in the charter.
• Choice and consultation – public sector should provide choice wherever available,
in consultation with those for whom the services are being made available. It
should enable citizens in giving feedback to public offices, on the basis of which
they can improve their delivery system further.
• Courtesy and helpfulness – it should ensure that citizens receive courteous
response from public officials when they come to public offices. The public offices
should treat all citizens with equanimity so that no citizen feels discriminated at the
hands of the public personnel.
• Putting things right – the charter has to ensure that the services are provided
within the norms. If something goes wrong either in the quality or standard of
services, immediate apologies should be offered to citizens and at the same time,
citizens should be offered alternative solutions. The redressal system should be
quick enough to cater to citizens’ complaints.
• Value for money – it is about efficient and effective delivery with minimum utilisation
of resources.
Thus we see that the components of the citizen’s charter are a reiteration of the norms
which are integral to the foundation of accountability of public administration. There is
no doubt that the citizen’s charter strategy, if formulated and implemented in an objective,
conscious and committed manner to give the citizens their due, can lead us towards
good governance (Jain, 2002). Citizen’s charters are a good example of the changing
the attitude of government towards citizens.
Social Audit
Social audit is an innovative mechanism for ensuring transparency and accountability. It
164
came into prominence in the wake of 73rd Constitutional Amendment Act, which gave Transparency and
Constitutional status to Panchayati Raj Institutions. It scrutinises the efficacy of any Accountability
public utility within a social relevance framework. It is an effort undertaken to ensure
that the work done by the government is actually benefitting the citizens. It is a process
that enables an organisation to assess and demonstrate the social, economic and
environmental benefits of its programmes and their impact on various stakeholders
including the public. It assesses whether the expenditure has made any difference to
the well-being of the community and whether it has led to development and welfarism.
Social audit evaluates the performance of the organisation on the basis of its core
community values and how far it has impacted the different social groups prevailing in
the society.
Social audit is a very effective tool for strengthening grassroots democracy. It provides
an opportunity to the citizens to scrutinise the development initiatives which ultimately
benefit the citizens. It is a continuous process which ensures that all the decisions and
their rationale are made public as soon as they are made. It has to be integrated into
public service delivery.
Right to Information
Right to information has emerged as a prominent concern in the field of governance and
is regarded as one of the most important social innovations of this century in the field of
accountability and transparency. It continues to be advocated as a pertinent component
of policy packages to improve governance in developing countries. In fact, it has
become an important instrument through which openness, transparency and
accountability can be brought about in the governance process and citizens’ grievances
redressed. It also strengthens the foundations of grass roots democracy through people’s
participation in local governance and development activities. In other words, Right to
Information is a basic necessity of good governance.
Right to information has been derived from the Universal Declaration of Human Rights
(UDHR) 1948. According to Article 19 of UDHR, “everyone has the right to freedom
of opinion and expression without any interference and to seek information, receive
and impart ideas through any media regardless of frontiers”. It is a fundamental human
right and the touchstone for all freedoms to which UN is consecrated (UNGeneral
Assembly Resolution, 1946).Sweden was the first country to provide this freedom to
its citizen’s way back in 1766. This freedom was part of the Freedom of the Press Act.
It was incorporated as a reaction towards excessive administrative secrecy as also
press censorship. It was followed by Finland in 1951, Denmark and Norway in 1970,
United States of America in 1966. Britain had the Official Secrets Act, which was put
aside when the Freedom of Information Act was enacted there in 2000 and amended in
2005.
In India, the Right to Freedom of Information is not explicitly provided for in the Indian
Constitution. However, Article 19(1)(a) of the Constitution, which confers the Right to
Freedom of Speech and Expression, includes the Right to Information when read with
Article 19 of United Declaration on Human Right (UDHR). Even the Supreme Court
of India interprets this Right as part of Article 19(1)(a). The Supreme Court way back
in 1975, expressed this proposition in a landmark judgement in the state of UP vs. Raj
Narain Case (Chadah, 2006).
Since this judgement, the Supreme Court has time and again talked about giving right to
freedom of information to the citizens. Apart from this, there has been political
commitment too with regard to the citizens’ Right to Information. In 1977, the Janata
165
Governance : Party promised an open government and declared that it would not misuse the intelligence
Emerging services and governmental authority for ‘personal and partisan ends’ (Guha Roy,2003).
Perspectives
The second attempt in this direction was made in 1989. The Government was not
ready to disclose information relating to Bofors and other deals (Guha Roy,1990) The
National Front in its Election Manifesto talked about its commitment to ‘open government
and declared in very clear terms that it would guarantee the citizen’s Right to Information
through Constitutional provisions.Gradually the demand for Right to Information got
intensified and took the shape of mass movement initiated by Aruna Roy in Rajasthan.
A people’s organisation called Mazdoor Kisan Shakti Sangathan through series of public
hearings made the government respond to the demands of information and accountability.
It gave an opportunity to the people to demand information on expenditure on
developmental activities ensuring accountability and redressal of grievances.
Subsequently, the National Democratic Alliance (NDA) government introduced the
Freedom of Information (FOI) Bill, 2000 in the Parliament which was finally passed in
2002 and was enacted in 2005.
Right to Information opens up government’s records to public scrutiny, thereby arming
citizens with a vital tool to inform them about what the government does and how
effectively; thereby making the government more accountable. Transparency in
government organisations makes them function more objectively thereby enhancing
predictability. Information about functioning of government also enables citizens to
participate effectively in the governance process. In a fundamental sense, Right to
Information is a basic necessity of good governance (Government of India, 2006).
One of the key provisions of RTI is self-disclosure of information in public domain.
According to this where adequate information is available, citizens can demand services
and claim rights due to them from appropriate authorities and officials.
In a system seething with corruption and becoming increasingly insensitive to the
problems of the disadvantaged citizenry, RTI has shown promise of empowering citizens
to ensure accountability and act as an enforcer of good governance (Gandhi, 2009).
The RTI Act is a torch-bearer that can lead to more open, accountable, responsive and
people-friendly governance.
Ensuring transparency and accountability requires electoral reforms, improving the
efficacy of institutions including police and judiciary.
12.6 OPERATONALISATION OF TRANSPARENCY

AND ACCOUNTABILITY
The discussion on the various mechanisms with regard to transparency and accountability
in the preceding sections makes clear that no doubt there have been various initiatives
from time to time in this direction. But what is important is their operationalisation. We
need to know whether the initiatives taken are really beneficial in ensuring accountability
and transparency in the system and governance process. Citizens have become an
essential component in enforcing accountability. Along with this, a transparent system
that allows for answerability to public conduct becomes a necessity.
When we refer to the operationalisation of the transparency and accountability
mechanisms, we see that Right to Information (RTI) is a very potent weapon and its
positive role has been witnessed especially at the grassroots levels in the Mahatma
Gandhi National Rural Employment Guarantee Act (MGNREGA).The MGNREGA
guidelines stipulate that all information be displayed to the public through display boards
166 and paintings on the walls of the panchayat offices. Apart from this, there is also a
provision that all the MGNREGA accounts and their summaries at the gram panchayat Transparency and
level should be made publicly available for scrutiny (Aiyar and Samji, 2012). Accountability
RTI at the grassroots level is being implemented through social audits of MGNREGA.It
has been successfully implemented, in some states, with the unique partnerships between
governments and civil society organisations (CSOs). Andhra Pradesh in 2006, embarked
on a process to institutionalise social audits for all MGNREGA programmes in the
state. The government collaborated with CSOs and built up a 35-member team which
could facilitate and manage the audit process. During the audit, details of government
expenditure on MGNREGA are verified, assets developed are assessed and information
on it is shared with village communities. The audit ends with a public meeting, where
the findings of audit are shared in the presence of local government officials and politicians
(ibid.).
The government - civil society partnership is also visible in Rajasthan. In November
2007, the Rajasthan government collaborated with the Soochna Evam Rojgar Adhikar
Abhiyaan, to develop a decentralised worksite management system. The purpose of
this Abhiyaan has been to create a pool of trained worksite managers that take daily
measurements of worksites and determine daily output. The key emphasis is on
transparency (ibid.).
In Delhi, a voluntary organisation called Parivartan, has been quite successful in
facilitating the use Right to Information in addressing their grievances, getting the pending
works done by the government departments and also inspecting the government works.
It is helping the poor people in getting ration cards or receiving their ration quota on
Antyodaya card under the public distribution system by exercising the RTI (Guha Roy,
2006).
There are some glaring examples when the Lokayukta has come forward and tried to
weed out corruption prevailing in the various state institutions. In 2010 in Karnataka,
major irregularities in mines in Bellary, including those owned by Obulapuram Mining
Company and by the prominent politicians, who were then ministers in the Government
of Karnataka had been exposed by Lokayukta. The Lokayukta’s Report uncovered
major violations and systemic corruption in iron-ore mining in Bellary. It recommended
banning all exports of iron ore and limiting iron ore production for captive production of
iron and steel. Lokayuktas if given a free hand, can definitely function towards building
a transparent and accountable system.
The emergence and use of e-governance or digital governance, in the governance process
has further ensured transparency and accountability. The main idea behind e-governance
is to bring government services to the beneficiaries in a transparent, speedy, easy and
efficient way. The ICT-based governance opened new economic opportunities, brought
transparency in public-private transactions, insights into outsourcing processes and
accountable administration. It introduced a minimum guarantee against arbitrary
exchanges and government procurements and some form of standardisation of
procedures (Nath, 2016).
The state level e-governance projects such as Akshaya in Kerala, Gyandoot in Madhya
Pradesh, Digital Saksharta Abhiyan in Haryana, SWAGAT in Gujarat, APSWAN and
TWINS in Andhra Pradesh, Bhoomi in Karnataka, E-mitra in Rajasthan, Lokvani Project
in Uttar Pradesh etc., are a proof that ICT is extensively being used in the various
government departments for enhancing efficiency, transparency, accountability and
providing better services to the people. The application of electronic means in the
interaction between government and citizens (G2C) and government and business (G2B)
167
as well as in internal government operations (G2G) has simplified and improved
Governance : democratic government and business aspects of governance (Saxena, 2005). By
Emerging providing online access and information to the citizens with regard to land records,
Perspectives
caste and income certificates and various other government services, things have become
very simple and easy for the citizens. Just by a click of the mouse, they get things
readily available at their doorsteps. E-governance and digitalisation is changing the
way governments are addressing the problems of the citizens and delivering them.
Digitalisation will go a long way in making the system accountable and transparency.
We have discussed in detail about the impact of ICT on governance in Unit 8 of this
Course.
There are challenges in the operationalisation process. There is need for strong political
will, bureaucratic commitment, and awareness on part of citizens that can bring the
desired change.
1) List the various mechanisms for ensuring transparency and accountability.
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
2) Give some initiatives towards operationalisation of transparency and accountability
in governance.
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.....................................................................................................................
.....................................................................................................................
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12.7 CONCLUSION
Thus, we can say that accountability and transparency are vital to the functioning of
democracy especially in India. They help in keeping a check on the use and misuse of
power of the government and keeps the public informed. There are complex issues
which involve involvement of multiple actors to contest it. Active participation from all
segments of the society is required to further strengthen it and question the arbitrary
actions and decisions of the government. The role of the civil society too becomes
important. We have seen how Anna Hazare and his team compelled the government to
come up with the Lokpal Bill which was long overdue. The media too has to play an
effective role in furthering the flow, authenticity and quality of information. It has to
become a responsible and an active participant in increasing awareness among people,
lending a voice to the voiceless and generating debate on the use and misuse of RTI and
exposing corrupt practices of the government without any fear or favour (Mishra, 2009).
The experience gained so far, is a clear indication that we are moving towards a more
transparent and accountable system. It is hoped that in near future with more and more
use of digitalisation in the administration and administering of basic facilities to the citizens,
effective accountability and transparency is achieved.
168
Transparency and
12.8 GLOSSARY Accountability
E-governance : It is electronic governance. When governance is done by using ICT,
it is called e-governance. In other words, it is governing through an electronic mode. It
is the performance of government functions through the applications of ICT, the most
important and well known part of which is internet. Thus, it is a process of reforms in
how government works, shares information and delivers services to internal and external
clients.
Ombudsman : It is the earliest democratic institution for the redressal of public
grievances. It is a device for controlling the ever growing powers of bureaucracy. It is
effective in taking necessary corrective measures against cases of maladministration or
wilful neglect on the part of the administration. An Ombudsman is generally considered
as a person who is commissioned to protect citizens against any possible
maladministration.
SWAGAT : It refers to State-wide Attention on Public Grievance by Application of
Technology in Gujarat. It is an ICT based application to improve the public redressal
system relating to government services.
12.9 REFERENCES
Aiyar, Y. & Samji, S. (2012).Guaranteeing Good Governance: Understanding the
Effectiveness and Accountability Mechanisms. The NREGA Act Design, Process
and Impact, NREGA Knowledge Network. Retrieved from www.indiagovernance.
gov.in/files/strengtheningpublicaccountability.
Bhattacharya, M. (2001).New Horizons of Public Administration. New Delhi, India:
Chadah, S. (2006).Right to Information Regime in India: A Critical Appraisal. The
Indian Journal of Public Administration.52(1).
Gandhi, S. (2009). Right to Information – A Tool to Improve the Governance of
India.Retrieved fromhttp://www.bcasonline.org.
Government of India.(2006). First Report on Right to Information: Master Key to
Good Governance. New Delhi, India: Second Administrative Reforms Commission.
Jain, R. B. (1976). Contemporary Issues in Indian Administration. New Delhi,
India: Vishal Publications.
Good Governance. New Delhi, India: Deep and Deep Publications.
Mishra, S. (2009). Right to Information and Decentralised Governance.The Indian
Journal of Public Administration.55(3).
Mulgan, R. (2000). Accountability: An Ever-Expanding Concept in Public
Administration. Public Administration.78(3): 555-573.
Narayan, S. (2013, November 15). A Question of Accountability. The Hindu.
Nath, S. (2016). Significance of e-Governance. In Alka Dhameja & Sweta Mishra
(Eds.), Public Administration, Approaches and Application.New Delhi, India:
Pearson.
Rai, V. (2011).Transparency in Governance.In R.K. Mishra (Eds.), Transparency in
Governance. Bhubaneshwar, India: The Indian Institute of Public Administration, Odisha
Regional Branch.
169
Governance : Roy, J.G. (1990). Open Government and Administrative Culture in India. The Indian
Emerging Journal of Public Administration. 36(3).
Perspectives
Roy, J. G. (2003). Right to Information: A Key to Accountable and Transparent
Administration. In Alka Dhameja (Ed.), Contemporary Debates in Public
Administration. New Delhi, India: PHI.
Roy, J. G. (2006). Right to Information Initiatives and Impact, Occasional
Paper.New Delhi, India: Indian Institute of Public Administration.
Saxena, A. (2005). e-Governance and Good Governance: The Indian Context. Indian
Journal of Political Science.66(3), 313-328.
Sengupta, A. (2013). Activist Verdicts.Front Line. Chennai
Venkatesan, S. (2013, November 1). Oral Instructions undermine Accountability:
Supreme Court. The Hindu.

EXERCISES
• Transparency refers to openness in government policies and decisions.
• Accessibility of information to those who will be affected by the decisions.
• Accountability is answerability for one’s actions or behaviour.
• Obligation of an individual or organisation to account for its activities, accept
responsibility and disclose results in a transparent manner.
• Increase in government’s role and activities.
• Delegated legislation.
• Ensure suitable checks in politics-bureaucracy nexus.
• Check corruption and corrupt practices.
• Apathetic nature of the citizens.
• Central Vigilance Commission.
• Comptroller and Auditor General.
• Office of the Lokpal and Lokayukta.
• Social Audit.
• Right to Information.
• Role of Right Information as a potent weapon in the implementation of
MGNREGA at grassroots level.
• Important role played by Lokayuktas in recent times especially in the state of
Karnataka.
• Use of ICT based governance in several states through projects such as
Akshaya, Gyandoot, and Swagat etc.
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BLOCK 4
LOCAL GOVERNANCE
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172
UNIT 13 DECENTRALISATION AND LOCAL
GOVERNANCE*
Structure
13.0 Objectives
13.1 Introduction
13.2 Concept of Decentralisation
13.3 Importance of Decentralisation
13.4 Dimensions of Decentralisation and Local Governance
13.5 Decentralisation Pattern in India: Historical Background
13.6 Features of 73rd and 74th Constitutional Amendment Acts, 1992
13.7 Functioning of Panchayati Raj Institutions: An Appraisal
13.8 Assessment of the Functioning of Urban Local Bodies
13.9 Conclusion
13.10 Glossary
13.11 References
13.0 OBJECTIVES
• Explain the concept of decentralisation;
• Discuss the importance of decentralisation;
• Analyse the dimensions of decentralisation;
• Explain the decentralisation pattern in India both rural and urban; and
• Appraise the functioning of rural and urban local bodies in India.
13.1 INTRODUCTION
There has been a wave of efforts globally to reform the State especially since late
eighties and early nineties. The basic idea behind this was to bring the private players
and the market forces in the governance process along with the State thereby lessening
its burden as also making it more effective and accountable. Decentralisation is one
such reform effort which was globally advocated. Accordingly, many countries
decentralised State powers to the sub- national governments and shifted some of its
powers to the periphery. India was no exception to this.
Decentralisation has become one of the most politically correct ideals for better
governance in today’s time. It is seen as the means by which the locus of power shifts
* Contributed by Dr. Sweta Mishra, Senior Assistant Professor, Department of Political Science,
Gargi College, University of Delhi 173
Local from the inefficient, corrupt and rent-seeking central governments to more accountable,
Governance responsive and transparent local governments. It encourages greater political
participation and increases the responsiveness of the government institutions ultimately
improving the planning and implementation of the development schemes and programmes.
In developing countries such as India, it is seen as a progressive strategy to promote
development by identifying the needs and preferences of the people through their direct
participation in governance especially at grassroots level.
Local governance through decentralised institutions is said to foster participation,
transparency, effective implementation of plans and programmes at grass roots level,
harnessing the available human resources besides empowering the marginalised sections
of the society.
In this Unit, we shall discuss the concept of decentralisation, its importance and
dimensions, pattern of panchayati raj and urban local bodies and appraise their
functioning.
13.2 CONCEPT OF DECENTRALISATION

We must be very clear about the meaning of decentralisation if we have to grapple with
its issues and concerns. Decentralisation has emerged as a prominent issue in the literature
of public administration and is regarded as one of the most important politico-
administrative innovations of this century. It has been and continues to be advocated as
an important component of policy packages to improve governance in developing
countries, especially in the context of disillusionment, which has set in on account of
central planning. The centralist regimes find themselves overburdened with complex
and widespread socio-economic problems for which they have no answers, as the
governments have sought to create more socially equitable patterns of economic growth
to meet the basic needs of the poor. In case of India, efforts in this direction have been
made since independence. There have been strong voices in favour of decentralisation
and to have a third tier of governance where local decisions will be taken by the people.
The term decentralisation is understood differently by different individuals or groups. It
is essentially a mechanism through which power is transferred from the central government
to the lower levels of government or field organisations. Decentralisation means dispersal
of authority among a number of individuals or units. Decentralisation is not only a device
for the delegation or dispersal of administrative authority, but it is also a democratic
method of devolution of authority.
Decentralisation refers to the physical location of facilities and the extent of dispersal of
authority throughout an organisation. Hence, it is an arrangement by which the ultimate
authority to command and the ultimate responsibility for results is localised in units
located in different parts of the country. It is argued that assigning of functions and
responsibilities, for their efficient and effective performance, to the decentralised lower
levels where they are allowed to decide many matters and a few cases involving major
policies or interpretations are referred to the higher levels of the organisation is yielding
results.
The concept of decentralisation, as it applies to India, presents a different approach to
the decentralisation of political and administrative powers. It was apparently intended
to conform to be the model of democratic decentralisation in which powers and funds
are transferred from higher-level institutions to elected bodies at the local level (Jayal,
2007). Having its mixed goals of democracy, decentralisation and development, it implies
devolution of governmental powers and responsibilities, decentralisation of political
174
institutions, development of local leadership and strengthening the efforts for economic Decentralisation
modernisation. It is the process whereby the government divests itself completely of and Local
Governance
certain duties and responsibilities and devolves them on some other authority (Mishra,
1989).
To be precise, decentralisation is an ideological principle associated with objectives of
self-reliance, democratic decision making, popular participation in government, and
accountability of public officials to citizens. It is a prime mechanism through which
democracy becomes truly representative and responsive (Arora and Goyal, 1995).
Decentralisation is a political decision, and its implementation, a reflection of a country’s
political process. It is dispersal of authority among the lower levels of organisation and
its field offices. It, thus, creates a sense of responsibility in local decision making agencies
with more or less independent existence and powers. It is sharing the decision-making
authority with lower levels in organisations, thereby improving their efficiency,
effectiveness and responsiveness (Chakrabarty and Chand, 2012).
13.3 IMPORTANCE OF DECENTRALISATION

Decentralisation has been looked at as a singularly useful mode of administration to
deliver the public services from convenient local centres close to the clients’ locality and
thus more responsive to local needs. The developing world has undergone some form
of decentralised governance in line to meet peoples’ demands (Islam, 2007). Bringing
administration to the doorsteps of the citizens and establishing a direct relationship
between the citizens and the administration has been the driving force behind
decentralisation in most of the developing countries.
The urge for decentralisation has come from many sources. Firstly, it has been prompted
by the need to deliver the basic public goods such as food, housing and water from
local units of administration. Secondly, most people in the developing countries live in
rural areas, which are away from the national capital located in distant urban areas.
Administration has to penetrate the rural areas and link these up with the nation as a
whole. Thirdly, in many countries sociological diversities manifest themselves in ethnic,
linguistic and religious differences. Administration needs to be decentralised in response
to regional diversities.
Fourthly, regional and local resources can be utilised for the area development purposes,
only if administration would move out to the regions and localities. Decentralisation,
therefore, facilitates local planning and development with the help of local responses
leading to better development outcomes. Fifthly, decentralisation has its own value in
political and administrative terms. Politically, local participation in development activities,
with intensive response paves the way for meaningful articulation of local demands.
Planning thus becomes much more realistic and receives ready political support. From
the administrative point of view, local capability to govern local areas increases through
sustained participation in local decision making. Decentralisation is expected to release
local energies and enlist local support for development activities. In the process, the
local community can steadily attain political and administrative maturity. Finally, it is
needed to institutionalise participation of citizens in development planning by creating
alternative means of decision making.
In the words of Rajni Kothari (1988) “decentralisation is an alternative system of
governance based on a people-centred approach to sorting out local level problems. In
the entire process, people are located at the centre of power so that they become the
basic engine of the development process and not, as hitherto, merely its beneficiaries”
175
Local
Governance 13.4 DIMENSIONS OF DECENTRALISATION AND
LOCAL GOVERNANCE
Decentralisation, as we have seen, is an important component of policies to improve
governance in the developing countries and is often regarded as a necessary precondition
for socio-economic and political decentralisation. In this context, different dimensions
of decentralisation can be identified, viz., administrative, political, functional and fiscal.
These dimensions reflect, in general terms, increasing and often sequential stages of
progress in achieving the objectives of decentralisation (Jain, 2003). Let us now study
these dimensions of decentralisation.
 Political Decentralisation
Political decentralisation refers to transfer of political powers and functions from the
central levels of government to the lower levels of governments which are elected by
the local citizens and which have some degree of local autonomy. It means that the
powers and functions, which are concentrated in the hands of the higher level political
organs be decentralised to the lower level political organs that have been democratically
elected by their constituencies (Mishra and Sweta, 2006).In other words, it means
devolution of powers and functions to the local bodies i.e., panchayats and municipalities.
In India, the process of political decentralisation which started in 1959, on the
recommendations of Balwant Rai Mehta Committee, finally got implemented in 1993,
by way of 73rd and 74th Constitutional Amendment Acts. As a result, now there are
governments at five levels viz., central, state, district, block and village, making the
governance process more representative with locally elected representatives paving,
the way for greater peoples’ participation.
 Administrative Decentralisation
Administrative decentralisation refers to the transferring of authority, resources and
responsibilities to the lower officials in the administrative hierarchy of organisations. It
may also mean decentralising powers or functions to the subordinate units. It involves
placing planning and implementation responsibilities to functionaries and elected
members. It aims at providing better facilities and services to the people through the
local authorities.
In India, though the development process started way back in 1950 after the setting up
of erstwhile Planning Commission, yet we could not achieve the developmental goals.
The main reason for this was that the welfare policies and programmes, which were
meant for the people top-down and the local people could not get any benefits of these
policies and programmes, as the local perspective was missing. Administrative
decentralisation makes local governance bottom up and responsive.
 Functional Decentralisation
Functional decentralisation refers to transferring subject specific functions to local tiers
in order to enable them to discharge their responsibilities in an effective and efficient
manner. It means that the sphere of activity of each tier should be clearly specified, and
each tier should be allowed to function independently. Functional decentralisation is an
essential condition to strengthen the units of participatory development and decentralised
governance.
In India, there was absence of clear cut functional jurisdiction so far as the local tiers
were concerned. With the passing of the 73rd and 74th Constitutional Amendment Acts,
176 1993, the issue of functional decentralisation has been taken care of. However, still
there is no clarity with regard to the functional jurisdiction of each local tier. In many Decentralisation
states, the functions are delegated through executive orders rather than transferred and Local
Governance
through a piece of legislation (Mishra, 2006, op.cit.).
 Financial Decentralisation
It involves devolving powers with regard to taxation, funds and expenditure upon local
bodies in order to first improve the financial position and then giving them the financial
autonomy for planning and implementation as per the local needs. Devolution of funds
upon the local bodies by the State is important in order to augment financial capacity of
the local bodies. In order to provide the local bodies’ scope to prepare plans as per
local needs, and then to incur expenditure, financial decentralisation becomes important.
The local bodies in India could not function properly because of lack of funds. They
had to depend on the devolutions and the grants-in-aid from the state governments.
This problem has also been taken care of to some extent after the passing of 73rd and
74th Constitutional Amendment Acts. The Acts empower the local bodies to levy and
collect the taxes.
Thus, we see that the various dimensions of decentralisation got operationalised only
after the passing of 73rd and 74th Constitutional Amendment Acts, in order to improve
local governance.
13.5 DECENTRALISATION PATTERN IN INDIA:

HISTORICAL BACKGROUND
Decentralisation and local governance has been a major concern in India since long. It
goes back to Lord Mayo’s Resolution of 1870, which advocated decentralisation and
made arrangements for strengthening the municipal institutions and involving more and
more Indians in these bodies. Lord Ripon’s Resolution of 1882 too strongly advocated
the cause of decentralisation of administration through the establishment of local self-
governing institutions. The British administration was not prepared to accept the Ripon
thesis as they questioned the competence of Indians to manage local administration and
feared a general weakening of field administration under a local self-government regime.
The Resolution of 1882 was hailed as the Magna Carta of local government.
The Decentralisation Commission Report, 1909 and the Government of India Acts
1919 and 1935 also favoured local governance. The Government of India Act 1919
introduced ‘Dyarchy’ in the provinces and local self-government became a transferred
subject under the charge of a popular minister of the provincial legislature. The Act
increased the taxation powers of the local bodies, lowered the franchise, reduced the
nominated element and extended the communal electorate to a large number of
municipalities. After the Act of 1919, panchayats became legal entities, losing their
traditional prerogative powers. The Act of 1935 for the first time introduced a federal
form of government and conferred ‘Provincial Autonomy’ on the provinces and
envisaged self-government for the country as a whole.
The second phase of the debate in post-Independence India was staged on the floor of
the Constituent Assembly. Panchayati Raj was an important component of Mahatma
Gandhi’s vision of future India in which economic and political powers would be
decentralised and each village would be self-reliant economically. It was in deference
to the wishes of the Mahatma Gandhi that Article 40 of the Constitution of India was
adopted, stipulating that “the State shall take steps to organise village panchayats and
endow them with such powers and authority as may be necessary to enable them to
function as units of self-governments”. The Article only talked about creation of 177
Local panchayats and was silent on the creation of urban bodies. The only reference to urban
Governance self-government was made in two entries viz., Entry 5 of List 11 of the Seventh Schedule
and Entry 20 of the Concurrent List.
In India, after independence, the first attempt in the direction of rural local governance
was the inauguration of Community Development Programme in 1952, followed by
National Extension Scheme in 1953. Both these programmes could not deliver goods.
As a result, the Balwant Rai Mehta Committee was constituted to enquire into the
questions of economy and efficiency and suggest other measures for the re-organisation
of Community Development Programme. The Committee came out with the suggestion
of a three tier system of rural local government. This pattern was Zila Parishad at the
district level, Panchayat Samiti at the Block/tehsil/taluka level and Gram Panchayat at
the village level. Following the recommendations of the committee, the first Panchayati
Raj Institution (PRI) was formed in Nagaur district in Rajasthan on 2ndOctober, 1959.
The movement gathered momentum all over the country. By the end of 1963, most of
the states had enacted legislation to introduce Panchayati Raj within their jurisdiction.
However, after initial enthusiasm and promising start, the Panchayati Raj institutions
began to deteriorate rapidly and could not function as institutions of local governance.
In 1977, another Committee, popularly known as the Asoka Mehta Committee was
appointed by the then Janata Government and was entrusted with inquiring into the
functioning of Panchayati Raj Institutions and suggest measures to revitalise them. The
Committee outlined the reasons for the decline of PRIs, such as haphazard programmes,
non-performance, rise of vested interests (Sugar lobby being an example in Maharashtra),
lack of adequate financial resources, etc. The concept of Panchayati Raj itself got lost
in a haze of conflicting interpretations (Mishra, 1981). The Committee recommended a
two-tier system of PRI with Zila Parishad at the district level and Mandal Panchayat at
the base level. The Karnataka government took the recommendations of the Committee
seriously and adopted a new system of Panchayati Raj in 1985. West Bengal and
Andhra Pradesh followed suit.
After the publication of Asoka Mehta Committee Report and its experimentation in
states of Karnataka, West Bengal and Andhra Pradesh, hectic activities at the central
level started towards strengthening grass roots democratic organisations and achieving
the goals of real democratic decentralisation. Some of the Committees set up by the
Central Government are Committee on Administrative Arrangements for Rural
Development (CAARD) 1985, L.M. Singhvi Committee for the Concept Paper on
Panchayati Raj Institutions, 1986, Sarkaria Commission 1988, P.K. Thungon Committee
1988, etc.
The net result of the recommendations of these committees and commissions was that
a proper environment was created in favour of giving new thrust to the concept of
democratic decentralisation. All political parties by and large arrived at the conclusion
that it was high time to give Constitutional status to PRI’s and Municipalities. The result
of such consensus was the introduction of 64thand 65thConstitutional Amendment Bills
in July, 1989 in the Parliament. The Bill was passed in the Lok Sabha. However, it
failed in Rajya Sabha due to serious apprehensions regarding the timing and the intention
of the Bill and could not become the part of the Constitution. After the defeat of the
64thand 65th Amendment Bills, the National Front Government introduced in the Lok
Sabha on 4th September 1990 the74th and 75thConstitutional Amendment Bills 1990.
However, this Bill died an unnatural death, when the Janata Dal Government collapsed
before passing the Bill.
178 In June 1991, the government introduced two new amendment bills in the Parliament
and on December 22, 1992, the Bills were passed by the Parliament and are now Decentralisation
known as the Constitution (73rdand 74thAmendment) Acts 1992. By April 23, 1994, and Local
Governance
all the states had completed the process of enacting fresh legislation on strengthening
the PRIs and municipalities.
1) Discuss the importance of decentralisation.
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2) Explain the various components of decentralisation.
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13.6 FEATURES OF 73rdAND 74th

CONSTITUTIONAL AMENDMENT ACTS, 1992
The Constitution of India defines Panchayats as institutions of local self-government in
rural India. The 73rd and 74th Amendment Acts, 1992 have Constitutionalised the
Panchayats and Municipalities and is a step in the direction of speeding up the process
of decentralisation and giving strength as well as stability to local institutions. They are
historic in nature as they have got the potential to transform the existing character of our
democracy (Palanithurai, 2009). Some of the features of the Acts are as follows:
 It has made mandatory for all the states to set up three tier (in smaller states
having less than 20 lakh population – two tier) bodies both in the rural and the
urban areas.
 Periodic elections to all the tiers at regular interval of five years and, if dissolved
earlier, fresh elections to be held within six months.
 Reservation of seats for SCs and STs in all the panchayats and municipalties at all
the levels in proportion to their population.
 One third reservation of seats for woman in panchayats and municipalities.
 All posts at all levels (with two exceptions) to be filled by direct elections.
 Indirect elections to the post of chairman at the intermediate and apex tiers.
179
Local  Creation of a State Election Commission to conduct elections to PRIs and municipal
Governance bodies.
 A State Finance Commission to be set up in each state every five years in order to
review the financial position of the PRIs and municipal bodies.
 Devolution of powers to the panchayat bodies to perform 29 functions and to the
municipal bodies to perform 18 functions as suggested in the Eleventh and Twelfth
Schedules respectively.
 Organisation of gram sabhas and ward committees.
 The 74thConstitutional Amendment provides for constitution of District Planning
Committee (DPC) and Metropolitan Planning Committee (MPC) to prepare a
development plan.
Article 243M of the 73rd Constitutional Amendment exempts application of this Act to
certain areas in the country. These areas are Fifth Schedule Areas, Sixth Schedule
Areas, 1996 (PESA) and other tribal areas.
The tribal communities are the marginalised sections who have been for long isolated
from the main stream development process. At the same time their customs and traditions
are to be protected and remain uninterrupted. Their indigenous traditional institutions
which play an important role are to be maintained. In order the strengthen the grass
roots democracy in tribal areas, the Part IX of the Constitution which deals with
panchayats has been specially extended through an Act of Parliament called Panchayats
Extension to Scheduled V, Areas Act (PESA)1996.This provides for certain exclusive
and wide ranging powers to gram sabhas and panchayats in these areas.
13.7 FUNCTIONING OF PANCHAYATI RAJ

INSTITUTONS: AN APPRAISAL
Mere legislative enactments do not ensure effectiveness and viability of the PRIs in the
states. What is important is their operationalisation. Even after more than two decades
of passage of the 73rd Amendment Act, their functioning reveals the fact that at the
operational level, there are large variations among the states.
Gram Sabha is the basic unit of Indian democracy. According to Article 243A of the
Indian Constitution “ A Gram Sabha may exercise such powers and perform such
functions at the village level as the legislature of a state may by law provide.” The
elected representatives are made accountable to the electorate through the Gram
Sabhas. Hence they have to be vigilant and sensitive to their own problems and only
then the PRIs can be successful. At the same time, it has to meet periodically with
maximum participation of the people. Initially, this was not happening and the benefits
did not reach the needy. However, in some states the Gram Sabhas started meeting on
a more regular basis and the benefits of the rural development programmes started
reaching the common man (Sharma, 2007).
At the same time in some cases, increased participation of the local community is also
being witnessed. In the state of Kerala, where the first Gram Sabha was organised way
back in 1996, more than two million persons participated in it. In general, the gram
sabhas were a huge success and generated public debate on development all over
Kerala (ibid.) In Madhya Pradesh, the gram sabhas got a new status through a state
law to ensure holistic development of villages. In West Bengal absolute power has been
given to the Gram Sansad/Gram Sabha in respect of selection of beneficiaries under the
180 poverty alleviation programmes (Mathew, 2007).
The Eleventh Schedule, which assigns 29 subjects to the PRI’s have been added in the Decentralisation
body of the Constitution. It was expected that, the State Legislature, by law, would and Local
Governance
endow such powers and authority to panchayats so that they could function as institutions
of self-government. But the powers and functions were not actually transferred to the
PRIs in the true sense of the term, as no detailed executive instructions regarding
devolution were issued.
The sphere of activity of each tier under each item has not been defined and is left to the
discretion of the concerned state governments. As a result there exists variation from
state to state with regard to assigning of powers and functions to each tier of PRI. In the
state of Karnataka, for example, the state government has retained many regulatory,
controlling, and supervisory powers, which in fact takes away the autonomy of the
PRIs (Aziz, 2007). The experience gained so far is that, at the district level, various
departments/agencies implement programmes and function under the overall supervision
and control of the District Collector. The PRIs, therefore, have to be content with
backseat driving (Vittal, 1998).
Under governmental direction, each level is now conducting ‘activity mapping’. The
activity mapping now being undertaken by states is being done in the expectation that it
will clearly identify the functions that are to be performed at each level of the panchayats.
This will help in assessing the revenues required, and assigning its sources. In addition it
will help in the devolution of functions to implement these activities (Mathur, 2013).
The functioning of the PRIs with regard to the mandatory provision for reservation of
seats for the Scheduled Castes (SCs), the Scheduled Tribes (STs) and one third
reservation for women (including women from the SCs and the STs) reveals that in
spite of the reservation for the above category, the problem has not been completely
solved. In most states, democratic decentralisation has made politics more inclusive of
women, SCs and STs, but has done far less to empower them (Jayal, 2006).
Initially by and large, only those individuals were elected from reserved constituencies,
who had the patronage of the dominant sections of the society and who functioned like
the mouth piece of the affluent sections in the formal meetings of the PRIs. Women
members acted on behalf of the male members of their family. But slowly this scenario
started changing and today the situation is much better. Today, the democratic base of
women has been widened. Indeed, around 80 per cent of all women elected are from
reserved seats. It has also motivated many women to contest elections and participate
in the political process (Mathur, 2013). Women members have performed well in states
like Kerala, West Bengal, Karnataka and Madhya Pradesh. They have taken up many
serious issues, relating to the development of their areas. They have fought against odds
and taken up issues, which cater to the vital needs like children’s education, safe drinking
water, primary health care facilities for women, nutrition, etc.
For example, a woman Sarpanch of Chandsamand Gram Panchayat in Karnal district
of Haryana has developed a three pond system under MGNREGA with the purpose to
treat the grey water and further use the same for gardening, kitchen gardening and
irrigation purposes. Similarly, another Woman Gram Pradhan of Namkhana Gram
Panchayat in West Bengal has ensured functional standing committees on women and
children. She has emphasised on self-help group formation .joyful learning and nutritious
food for the children (Sinha, 2018).
According to Pattanaik (2010), “it is clear that women’s leadership in panchayats is
transforming India. These elected women – now role models to the other women in
their communities – are altering the development agenda to address issues critical to
181
village life. The success stories number in millions. Women throughout India- from Orissa
Local to Assam to Uttar Pradesh to Bihar— are ensuring that roads are repaired, electricity is
Governance brought to their villages, schools are built, medical services are available, water resources
are made safe, local savings groups are formed , and the list goes on and on”.
Another important issue in the functioning of panchayats is the finance. Though many
provisions have been made in the Act with regard to improving the financial status of the
panchayats, still the financial autonomy of the PRIs is restricted. Only in the state of
Kerala there is large degree of autonomy as 40 per cent of funds under general sector
were in untied form. States like Gujarat, Karnataka, Madhya Pradesh and Maharashtra
provide substantial funds to zila parishad, but even they do not give much scope to
PRIs in terms of autonomy, as funds are invariably tied to a particular programme or
scheme (Mishra, 2006, op.cit.).
PRIs do not have the incentives to raise revenues. The major proportion of the transfers
is scheme-based. They have to depend on the devolutions and the grants- in- aid from
the state governments. Besides, most of the states have not transferred funds for the
subjects transferred to the PRIs. Decentralisation without strong resource base is
therefore likely to have pitfalls if not accompanied by enhanced financial capabilities.
Though the fiscal capabilities of the PRIs and Nagar Palikas are expected to improve
in the wake of Finance Commission exercise, what is important is a strong fiscal base
accruing from sources internal to them. Moreover, many taxation powers and other
financial provisions like auctioning the gram panchayat financially beneficial properties
like fisheries, ponds, pastures, and others will ultimately improve the financial position
of PRIs (Mishra, 2005).
The Fourteenth Finance Commission (FFC) recommended substantial increase in the
quantum of resources allocated to the rural and urban local bodies. This is nearly more
than three times the allocation provided to the panchayats by the Thirteenth Finance
Commission.
The PRIs and municipal bodies should be encouraged to take steps for innovative
resource mobilisation such as generation of income from entrepreneurial activities,
productive loans, public contribution, tax sharing and tax assignments, matching grant
incentives for tax collection instead of totally depending on the governmental grants.
Besides, proper tax collection machinery at panchayat/municipal level is required. PRIs/
urban local bodies should get a share of more elastic and productive taxes like sales
tax. They may be assigned all or part of sales tax proceeds of the area within their
purview.
Another important aspect observed in the functioning of the PRIs is the problem of
coordination among the three levels of PRIs on the one hand; and bureaucracy and
NGOs on the other. This is giving rise to:
 Ambiguities related to the distribution of powers and functions amongst the three
tiers of PRIs mentioned in the Eleventh Schedule.
 Lack of clarity on the role of PRIs as planning and implementing agencies.
 Absence of understanding with regard to the relationship between the PRIs and
local level bureaucracy.
 Problem of open competition between the PRIs and NGOs. These factors
aggravate the complexities of coordination and raise doubts with regard to the
usefulness of PRIs (Mishra, 2003).
182
There are measures being taken to improve the functioning of PRIs. These include: Decentralisation
and Local
• Evolving a participatory culture and strengthening coordination between Governance
PRIs and other bodies functioning at grass roots level.
To sort out the problem of coordination, what is required is to weave and develop
a new and responsible participatory culture at the local level. Besides, there should
be necessary amendment in the panchayati raj and municipal acts of various states,
which is possible only if there is a strong political and administrative will. PRIs and
urban local bodies need to be made responsible both, for planning and for
implementation of development programmes for the local community, and their
capabilities in this regard need to be enhanced.
• Innovative measures to improve the functioning of PRIS.
Many states are experimenting with innovative measures towards improving PRIs.
To maintain transparency in the implementation of rural development schemes in
the state, the Assam government has ordered the constitution of vigilance and
monitoring committees in each block (ibid.). Democratic decentralisation, could
truly give voice to the people, but it requires enhancing participation, especially by
the people who are often marginalised, and increasing the accountability of public
officials at local levels (Panchayati Raj Update, August 2002).The need is to
appreciate the importance of making people aware and of educating them through
well-organised educational programmes. In a way, people’s participation needs
to be internalised by the PRIs. On the whole, the functioning of PRIs in various
states during the last two decades presents a mixed picture. It has provided an
element of continuity and enlarged the participatory process at the grassroots
level. The periodic shuffling and reshuffling of leadership by way of regular elections,
and increase in the level of politicisation of local community will certainly ensure
the success of the PRIs in the foreseeable future.
• Strengthening the Financial Base of PRIs
The devolution of financial resources is another area that is getting attention. As discussed
earlier in this Unit, the FFC has provided for a substantial increase in the quantum of
resources to PRIs. Also funds are directly been given to gram panchayats to deliver the
basic services. The FFC has recommended giving two types of grants to PRIs. These
are basic and performance grants.
• Capacity Building
The capacity building of elected representatives is being done through several
programmes. The Ministry of Panchayati Raj (MoPR) through various schemes such
as Rashtriya Gram Swaraj Yojana (RGSY), Rashtriya Gram Swaraj Abhiyan (RGSA),
Panchayat Mahila Evam Yuva Shakti Abhiyan (PMEYSA) and so on are attempting to
bring in mechanisms to build their capacities and empower them. The State Institutes of
Rural Development in many states are entrusted with the task of conducting suitable
training programmes to enhance their leadership skills. In addition NGOs are also
providing extensive training to PRI functionaries.
• Coordination between PRIs and other Institutions at Grassroots Level
There are efforts being made for networking between PRIs and other NGOs, self-help
groups, voluntary organisations for effective local governance. For example in Kerala,
self-help groups promoted by Kudumbashree are working with the elected
representatives. In states like Maharashtra, Assam, Rajasthan this convergence between
PRIs, self-help groups and community based organisations is taking place, facilitating
the monitoring of schemes and programmes of gram panchayat. 183
Local
Governance 13.8 ASSESSMENT OF THE FUNCTIONING OF
THE URBAN LOCAL BODIES
So far as the functioning of urban local bodies is concerned, it presents a similar picture
as that of the rural local bodies. There is lack of uniformity with regard to the functioning
of the urban local bodies (ULBs). No doubt, the 74th Amendment Act has revived
them, but the actual situation is that they still face a number of problems.
With regard to functional devolution, we see that there is absence of clear-cut functional
jurisdiction. The 18 subjects, as mentioned in the twelfth schedule, on which the urban
local bodies are to make laws have not been devolved uniformly. States like Himachal
Pradesh, Haryana, Rajasthan and Chhattisgarh on an average have devolved sixteen
functions to ULBs out of 18 listed in the Twelfth Schedule, but some key functions such
as roads, regulation of slaughterhouses, water supply and sewerage and urban planning
including town planning are yet to be devolved to ULBs.
It is also worth noting that though the sixteen functions are devolved to ULBs but little
of this is actually in the hands of municipalities, as the core decision making power rests
with the state government or district administration. At the same time, overlapping of
functions between various departments is also a reality (Occasional Paper Series.No.4,
2008).
In many states, the functions are delegated through executive orders rather than
transferred through a piece of legislation so that, it is apprehended, they can be withdrawn
easily. Some of the states have transferred their schemes of local nature along with
funds and functionaries. They have adopted a pragmatic approach of giving supervisory
and controlling power to local bodies while retaining the power of appointment/dismissal
and promotion/demotion with them. Kerala has shared its plan budget with its local
bodies to the extent of 40 per cent (Chaubey, 2004).
The devolution of funds upon municipalities by the state is important in order to augment
the financial capacity of the municipalities. The functioning of ULBs reveals a different
picture. The ULBs still have to depend on grants from state and central governments.
The municipalities on their own are not able to raise sufficient resources to be able to
cover their costs, and are therefore increasingly dependent on state transfers for financial
sustenance. The octroi or in lieu /octroi compensation are the major untied grants which
all municipalities get from the state government. However, it is also not completely
untied. A portion of the grant is tied – to be used by ULBs only for meeting establishment
/ administration expenditure, while the remaining amount can be used for other purposes.
The bad financial situation in turn affects adversely the expenditure priorities of the
municipality (Occasional Paper Series, op.cit.).
The financial position of the ULBs has been very well presented in the Twelfth Finance
Commission report. It has summed up the financial problems of the ULBs in the various
states as follows:
 Poor revenue realisation by municipalities – negligible tax and non-tax revenue.
 Excess dependence on state transfers, even for day to day expenses.
 Excess expenditure on establishment.
 Irregular disbursements of octroi compensation grant which also adversely affects
the day-to-day functioning of municipalities.
 Poor accounting practices leading to lack of clarity on financial situation.
184  Mounting arrears of payments like pension and provident funds (ibid).
If one has an overview of the working of the ULB’s, attention is automatically attracted Decentralisation
towards the non-functional character of the DPC. It was for the first time the DPCs and Local
Governance
under Article 243Z (d) have got Constitutional status by way of 74th Constitutional
Amendment Act. But unfortunately the DPCs have been made ineffective. Though most
states have taken the steps to constitute the District Planning Committees (DPCs),
there are variations in the composition and functioning of the DPCs. For example, the
MLAs and MPs are either the members or special invitees of DPC in all the states
except Kerala (Mishra, 2006, op.cit.).
In states like Rajasthan, Tamil Nadu and Uttar Pradesh, they have been given voting
rights. In still some other states like West Bengal, MLAs and MPs can become the
members of the DPC and have voting rights by the special government order. Yet,
another variation is visible in Tamil Nadu where one-fifth of total block chairpersons in
the district are the members of DPC by rotation. In no other state, the Chairpersons of
Gram Panchayats and Block Panchayats are members of the DPC (ibid.). In Haryana
and Tamil Nadu, bureaucrats had been made chairs of these committees, and in Madhya
Pradesh, ministers had been put in charge of them – in violation of the amendment’s
spirit (Datta, 2003).
A study conducted by Participatory Research in Asia (PRIA) on urban governance
highlights the fact that DPC in Himachal Pradesh is a weak link in the planning process
in the state. It is due to: (a) lack of an organic linkage between panchayat, panchayat
samiti, zila panchayats and ULBs regarding plan preparation and implementation, (b)
paucity of funds, and foremost the lack of strong political and administrative will to
make them work. In Chhattisgarh, the DPC is unfortunately not yet functional though it
has been constituted in all the districts. The state government, in contravention of its
own rules, constituted DPCs in 2005 in all districts by nominating all members instead
of holding elections. The DPC is chaired by state ministers, which is another major
problem. This ensures that the DPC works only as an arm of the state government with
no capacity for independent functioning (Occasional Paper Series, op.cit.).
The need of the hour is that the DPCs should be made effective and the district plan
prepared by the PRIs and Municipalities should be approved by the state government
without any change. It is also desirable that the DPC may issue guidelines to the lower
level units in regard to their annual action plan and consolidated five year plan. The
situation is much less encouraging as far as the Metropolitan Planning Committee (MPC)
is concerned.
Another problem area of ULB’s is the participation of SCs/STs, OBCs and women in
these bodies. The very presence of large numbers of poor people in local councils,
mainly on account of seat reservations, is a very significant development in the local
political landscape of most parts of India where they were previously excluded from
public life and political participation (Robinson, 2005).They are participating in protests
and rallies against low wages, faulty implementation of schemes, etc. Thus, things are
not as bleak as some of the problems we have discussed here depict. Many positives
have happened and the scenario is changing.
1) Enumerate the features of 73rd and 74th Constitutional Amendment Acts.
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Local .....................................................................................................................
Governance
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2) Analyse the lacunae in the functioning of PRIs.
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3) Discuss the problems faced by urban local bodies.
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13.9 CONCLUSION
Decentralisation has firmly been established both in rural as well as urban areas. Local
democracy has deepened, political participation broadened and representation diversified
as a result of 73rdand 74thConstitutional Amendment Acts. Decentralisation has provided
an institutionalised arena where the local population could participate in local government
decision making. The decentralisation process has now given rural and urban local
bodies an opportunity to assume greater responsibility for rural and urban governance.
The new system of decentralised governance has provided an element of continuity and
enlarged the participatory process at the grassroots level. The states have taken certain
measures to transfer functions and devolve funds upon the local bodies.
Despite this, the local bodies at the grassroots level are faced with insurmountable task
of addressing the problem of governance. The experience brings to the fore the need of
addressing the challenges faced by the local bodies to meet the desired standards of
governance. And in this process State has a vital role to play, so that the right kind of
system of governance is established at the grassroots level. In operationalising the
panchayat and municipal acts, the State has a vital role to play in providing support for
building of local institutions, legal framework and in creating an enabling environment
for people to participate and take the advantage of opportunities. The need of the hour
is positive intervention by the State through policies for human resource development
and institutional development which are critical as these would strengthen the process
of decentralisation. Besides, in the era of globalisation, the central as well as the state
governments will have to provide critical support to local institutions in terms of
infrastructure and institution building, as globalisation has impacted the village life.
Transparency, accountability, effective planning and efficient delivery of goods and
186 services can go a long way in improving decentralisation pattern in India.
Decentralisation
13.10 GLOSSARY and Local
Governance
Finance Commission : It is the Commission set up every five years by the President
of India under Article 280 of the Constitution. Its function is to recommend sharing of
taxes levied by the union government on the states. Till now fifteen Finance Commissions
have been set up to recommend devolution of taxes and other fiscal matters.
Kudumbashree : It is the community organisation of self-help groups of women. The
name Kudumbashree in Malayalam language means prosperity of the family. It is
community network that covers the entire State of Kerala. It consists of a three tier
structure with neighbourhood groups as primary level units, area development societies
at the ward level, and community development societies at the local government level.
These work on range of issues such as health, nutrition, agriculture besides income
generation activities.
Panchayat Mahila Evam Yuva Shakti Abhiyan (PMEYSA) : It is the scheme that
attempts to empower the male and female elected representatives through several
measures.
Rashtriya Gram Swaraj Abhiyan (RGSA) : It is the programme to revitalise the
Panchayati Raj institutions through strengthening gram sabha, the capacities of panchayats
and promote devolution of powers and responsibilities to panchayats.
Self Help Group : It is a small voluntary association of people, generally from the
same socio-economic background. They come together for the purpose of solving
their common problems through self-help and mutual help. The self-help group promotes
small savings among its members and it is kept with a bank.
13.11 REFERENCES
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Aziz, A. (2007). The Decentralisation Experience in Karnataka: How Clientelism and
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Chakrabarty, B. & Chand, P. (2012). Public Administration in a Globalizing World:
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Kothari, R. (1988). State Against Democracy: in Search of Human Governance.
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Sharma (Eds.), Decentralization Institutions and Politics in Rural India. New Delhi:
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Mathur, K(2013). Panchayati Raj. New Delhi: Oxford University Press.
Mishra, S.N. (1989). New Horizons in Rural Development Administration. New
Delhi: Mittal Publications.
Mishra, S.N. (1981). Rural Development and Panchayati Raj. New Delhi: Mittal
Publications.
Mishra, S.N. (2005). The 73rd Constitution Amendment and the Local Resource Base:
A Critical Appraisal. In S.S. Chahar (Ed.), Governance at Grassroots Level in India.
New Delhi: Kanishka.
Mishra, S.N. & Mishra, S. (2002).Decentralized Governance. New Delhi: Shipra
Publications.
Mishra, S. (2006). Understanding Decentralization in Contemporary Settings. In
Decentralisation and Local Governance MPA-016. New Delhi: School of Social
Sciences.
Occasional Paper Series No.4. (2008).Democratic Decentralization of Urban
Governance.New Delhi: PRIA.
Palanithurai, G. (2009). Decentralisation in India Critical Issues from the Field.
New Delhi: Concept Publishing Company.
Pattanaik. (2010). Women in Panchayat. Kurukshetra. 66(6).
Robinson, M. (2005). A Decade of Panchayati Raj Reforms: The Challenge of
Democratic Decentralization in India. In L.C. Jain (Ed.), Decentralization and Local
Governance. New Delhi: Orient Longman.
Rondinelli, D.A. &Cheema, S.G. (2013). Implementing Decentralization Policies: An
Introduction. In Dennis A. Rondinelli & G. Shabbir Cheema (Eds.), Decentralization
and Development Policy Implementation in Developing Countries. Sage
Publications.
Sharma, R. (2007). Kerala’s Decentralization The Ideal in Practice. In Satyajit Singh
and Pradeep K. Sharma (Eds.). Decentralization Institutions and Politics in Rural
India. New Delhi: Oxford University Press.
Vittal, C.P. (1998). Devolution of Powers and Functions to Panchayati Raj Institutions.
Kurekshetra. 26(7).
188
Decentralisation
13.12 ANSWERS TO CHECK YOUR PROGRESS and Local
EXERCISES Governance

• Decentralisation is considered as a useful mode of administration to deliver
public services.
• Facilitates utilisation of regional and local resources for development purposes.
• Fosters local planning and development.
• Ensures sustained participation in local decision making.
• Institutionalises participation of citizens in development planning.
• Political decentralisation that refers to transfer of political power and functions
from the central to lower levels of government.
• Administrative decentralisation which implies transfer of authority, resources
and responsibilities to lower levels of administrative hierarchy.
• Functional decentralisation which involves transfer of subject specific functions
to local tiers for their effective and efficient implementation.
• Financial decentralisation that involves devolving powers pertaining to taxation,
funds and expenditure to local bodies.
• See Section 13.6
2) Your answer should include the following points.
• Large variations among the states in the operation of PRIs.
• Absence of detailed executive instructions regarding devolution of powers to
PRIs under the Eleventh Schedule.
• Despite reservation of seats for women, SCs and STs, lack of effective
measures to empower them.
• Restricted financial autonomy and lack of incentives to raise resources.
• Problem of coordination among the three levels of PRIs and between
bureaucracy and NGOs.
• Absence of clear cut functional jurisdiction.
• Overlapping of functions between various departments.
• Delegation of functions through executive orders rather than transfer through
legislation.
• Ineffective revenue realisation.
• Poor accounting practices.
189
UNIT 14 INCLUSIVE AND PARTICIPATIVE
GOVERNANCE*
Structure
14.0 Objectives
14.1 Introduction
14.2 Context of Citizen Participation in India
14.3 Inclusive Governance
14.3.1 Constitutional Framework for Inclusive Society
14.3.2 Institutional Framework for Inclusive Society
14.4 Participative Governance

14.4.1 Participative Structures in India
14.4.2 Participatory Tools
14.5 Inclusive and Participative Governance: Key Issues and Challenges

14.6 Conclusion
14.7 Glossary
14.8 References
14.0 OBJECTIVES
• Appreciate the context of citizen participation in India;
• Explain the relevance of inclusive governance;
• Describe the significance of participative governance; and
• Identify the key issues and challenges of inclusive and participative governance.
14.1 INTRODUCTION
In the past few decades, there has been a rising concern in advancing ‘sustainability’
for development. Central to this concern is the increasing global agenda towards re-
examining the capacity of State and non-state actors to foster ‘development outcomes’
with people irrespective of caste, creed, race, religion, gender, disability, and income
levels. In 2011, the former President of India Dr. A.P.J Abdul Kalam in his lecture
delivered at Harvard University, envisioned for a “clean environment without
pollution, prosperity without poverty, peace without fear of war and a happy
place to live for all citizens of the world. What is needed is the participation of
multiple nations, multiple institutions and people from across the globe towards
common objectives” (Economic Times, 2011). In a developing country context, there
has been a considerable shift in widening the scope for people’s participation through
governance structures that are transparent and accountable. Specifically, these shifts
* Contributed by Dr. R Anitha, Former Faculty, Rajiv Gandhi National Institute of Youth
190 Development, Sriperumbudur, Tamil Nadu
intended to accelerate changes in the fundamental structure and functioning of State Inclusive and
from a ‘closed’, ‘centralised’, ‘rigid’, and ‘static’ system to an ‘open’, ‘decentralised’, Participative
Governance
‘flexible’, and ‘dynamic’ system.
With multiple centres of power and layers involved in decision making, different ways
have been explored to strengthen democracy in both developed and developing
countries. In this Unit, we shall discuss the functioning of democracy through inclusive
and participative governance and the key issues and challenges in implementing such
innovative practices.
14.2 CONTEXT OF CITIZEN PARTICIPATION IN

INDIA
Let us begin this section with the case of Bhopal Gas Tragedy. In December 1984, a
highly toxic leak of methyl isocyanate gas from the pesticide plant UCIL (Union Carbide
India Ltd) in Bhopal claimed the lives of over 5000 and injuries to 5 lakh individuals
(The Hindu, 2019). Such industrial disaster is a wake-up call for ongoing and upcoming
corporate projects to comply with the environment standards. A Report of Indian Institute
of Toxicology Research, Lucknow, on the Bhopal Gas tragedy indicates that within the
radius of 3.5 km from the factory and beyond, the soil and groundwater have been
contaminated with cancer and birth defect-causing chemicals (The Hindustan Times,
2015). Such worst industrial disasters, raises questions on several issues pertaining to
governance vis-à-vis social and environmental justice, safety of human lives, flora and
fauna, rehabilitation for victims, restoring normal life etc. Even after 35 years of the
tragedy, people of Bhopal continue to suffer because of the effects of harmful substances.
In this tragedy, people were completely unaware of the hidden disaster and we may
only speculate that a structured citizens’ involvement could have averted it. The need
for citizen participation has been seriously felt only in the wake of such injustice.
There have been several instances where efforts to foster environment friendly practices
were neglected by industries and this made the government to bring in ‘people’ as
development actors. In 1994, people’s involvement becames mandatory with the
promulgation of Environment Impact Assessment (EIA) notification. It states that
environmental clearance is possible only after public consultation in projects related to
mining, thermal power plants, river valley, infrastructure (road, highway, ports, harbours
and airports) and industries (Government of India, 2006). Although, EIA is a decision
making tool available for people to review the potential social and environment impact,
the success of EIA depends on the people’s ability to define the problems that are likely
to affect them. In essence, more joined-up dialogues and partnerships between State,
citizens, and non-state actors are likely to increase coordination and innovation. Above
all, it has the potential to prevent disasters.
Several state governments, with the aim to be accountable, transparent and responsive
towards delivery of public services, have embraced the rights-based approach for a
citizen friendly experience. Under this approach, states, such as, Madhya Pradesh,
Bihar, Maharashtra and several others enacted legislation for Right to Public Services
(RTPS). In fact, Madhya Pradesh became the first state to implement the law. This Act
clearly delineates front office and back office operations for catering to the needs of
citizens and to ensure time bound service delivery, citizen service centres have been
established. However, the challenge in implementing this legislation includes building
capacities of field level officers at two levels: (a) need for time bound citizen services
and (b) potential implications of delaying or denying of the services. We shall be discussing
this further in Unit 15 of this Course. 191
Local On the one hand, we have several initiatives and programmes meant for prompt citizen
Governance service delivery. On the other, citizen participation has been seen as an important
development dimension by the State. In fact, the nature of citizen participation has
evolved in India through ‘inclusive’ and ‘participative’ contexts; firstly, ‘inclusive’
context includes empowerment of marginalised sections, restoration of human dignity,
and sustainable livelihood etc.; secondly, ‘participative’ context includes citizens’ ability
to develop alternatives, time and cost effectiveness, and stakeholder responsiveness
etc.
The ensuing section discusses deeply about citizen engagement and participation through
meaningful networks vis-à-vis inclusive and participative governance.
14.3 INCLUSIVE GOVERNANCE

To begin with, let us understand about inclusive governance in India with reference to
gender responsiveness. In 2013, the Ministry of Women and Child Development formally
guided the state governments to adopt gender-responsive budgeting in all departments
and local bodies. To expedite the process, the Ministry informed the states to establish
a Task Force on Gender Budgeting. The concept of gender responsive budgeting was
adopted to tackle gender inequality in policy making at all levels of government. Gender
budgeting includes Part A which deals with women-specific schemes (100% resource
allocation) and Part B which deals with pro-women schemes (30% resource allocation).
For instance, Budget 2019 proposed to increase the gender budget allocation to Rs
131,700 crore for the year 2019-20. In fact, the budget makes a comprehensive financial
outlay for women’s safety, employment, nutrition, social upliftment, education, health
and maternal benefit (Ashraf, 2019).
Ever since ‘inclusive governance’ has gained prominence in social science literature,
several approaches have been adapted according to the nature of the social science
discipline vis-à-vis Basic Needs, Alternative Models of Production, Sustainable
Livelihood, Rights-based etc. However, the present unit confines the discussion to State
interventions for inclusive governance at three broad levels:
• Constitutional Framework – It provides basic structure for inclusive societies;
• Institutional Framework – It promotes and enforces laws and policies; and
• Proactive Approach – To counter specific forms of exclusion.
14.3.1 Constitutional Framework for Inclusive Society

In the information age, scholars and practitioners have not surprisingly been keen to
ask the question, ‘how to engage citizens for a meaningful interaction between
state and society?’ Logically, democratic institutions were built with the objective to
educate citizen in shaping the production and consumption of available resources. In
order to facilitate fair and equitable distribution of resources for the marginalised groups,
Constitution made a commitment to ensure political, social, economic, and cultural
rights for all its citizens. It is the nature of these constitutional commitments which elevated
the position of people from a mute ‘subject’ to an ‘empowering citizen’ who could
shape the way resources are produced and consumed. To illustrate, the fundamental
rights from Article 14-16 of the Indian Constitution indicate that every person who lives
within the country are equal before law and no one will be discriminated to realise their
rights, based on religion, race, caste, gender, and place of birth (Basu, 2007). In case
of violation of the fundamental rights by the State or any public authority, the citizen is
empowered to approach the court for ‘judicial remedy’. Let us understand this
192 perspective through the following example.
Case Example: India’s First Transgender Police Inclusive and
Participative
In 2017, Prithika Yashini from Tamil Nadu became India’s first transgender Sub- Governance
Inspector of police. Despite possessing eligibility conditions for the post, the Tamil
Nadu Uniformed Services Recruitment Board (TNUSRB) disqualified her candidature
based on gender. However, she filed her grievance in Madras High Court and
subsequently the Board had to notify transgender as the third category (Madhav, 2017).
Currently, Prithika along with 21 transgenders is part of the police cadre. Prithika’s
campaign for transgender employment in public services was lauded by the Court and
wider society. This incident can be cited as a classic example of the Fundamental Right-
Article 16 which indicates that no citizen shall be discriminated or considered ineligible
by the State based on religion, race, caste, gender, descent, and place of birth or any of
them.
14.3.2 Institutional Framework for Inclusive Society

Can inclusive society be achieved without socially responsible business? The answer to
the question needs to be examined under the lens of ‘Triple Bottom Line’(TBL) approach.
Dimensions of Triple Bottom Line (TBL)
According to Slaper and Hall (2011), TBL was developed by Elkington and opines
that it has changed the landscape of state and non-state actors to measure their
performance in sustainability context vis-à-vis environmental, social, and economic
dimensions. These dimensions will be discussed below:
Environmental Dimension
The environmental dimension includes the impact of industries on local natural resources.
Besides, it includes profiling the quality of air and water in terms of harmful substances,
quantity of water consumption, electricity and fuel energy, safe disposal of hazardous
waste and waste management, usage of land, public transport facility.
Social Dimension
The social dimension includes the rate of unemployment, participation of women labour
force, rate of crime ratio, health and well-being, access to education and government
schemes, community and recreation activities.
Economic Dimension
The economic dimension includes the flow of money and capital and its subsequent
impact on personal income, per capita, individual household income, and job creation.
According to Slaper and Hall (op. cit), the development dimensions of TBL include
3Ps: People, Planet, and Profit. Based on above mentioned dimensions, every company
is liable towards society and environment and based on these lines. Corporate Social
Responsibility (CSR) gained significance especially in the post globalisation era. These
dimensions are inclusive and as already mentioned it caters to the needs of 3Ps and
enables the concerned corporate to appropriately apply to their requirements depending
on the project and community.
The idea of CSR is intrinsically linked to the development discourse which enables
industries to contribute positively for uplifting the socially excluded. By adapting to the
TBL dimension to development, CSR seeks to integrate their core business strategy
towards social and environmental impacts. In a way, CSR intends to build sustainable
communities by exploring new ideas and new modes of livelihoods by partnering with
government and other stakeholders. 193
Local Corporate Social Responsibility (CSR)
Governance
CSR in Indian context have been in vogue in the form of philanthropic endeavor since
pre-independent times. With widening inequalities vis-à-vis gender, income, health,
digital, and education, the need to bridge these inequalities was constantly pondered
over by national and international agencies. As a result, Government of India came up
with the National Voluntary Guidelines (NVGs) for Social, Environmental and Economic
Responsibilities of Business and the CSR section within the Companies Act, 2013.
CRISIL Foundation Report on CSR expenditure, points out that during the period
2015-2018, the Indian companies had spent over Rs 50,000 crore (The Economic
Times, 2019). The report highlights that the highest social expenditure during the financial
year 2018 was in education and skill development sector, followed by health and
sanitation, and rural development projects. From this data, it can be understood that
CSR could be a viable instrument for the development of disadvantaged, vulnerable,
and marginalised communities. In the long run, it is estimated to renew sustainability in
collaboration with state and other non-state actors. Let us discuss further through the
following example.
Case Example
In compliance to the Companies Act, 2013 and Department of Public Enterprises (DPE)
Guidelines, 2014, Oil and Natural Gas Corporation Limited (ONGC) has evolved its
own policy on Corporate Social Responsibility and Sustainable development. Let us
look into one of its successful project in Kashmir. On February 21st, 2019, ONGC
was honored with Federation of Indian Chambers of Commerce and Industry (FICCI)
CSR award for its community project in Baramulla and Uri (Jammu and Kashmir). In
collaboration with the Indian Army and NGO, Research and Extension Association for
Conservation Horticulture and Agro-forestry (REACHA), ONGC undertook CSR
projects in skill development, education, and rehabilitation work. Notably, the public
sector company has been positively impacting the lives of the youth in Kashmir since
2016 (ONGC, 2019). The skill development courses have been certified by Associated
Chambers of Commerce and Industry of India (ASSOCHAM) and National Skill
Development Corporation (NSDC). ONGC reported that around 150 girls have been
trained in Fashion Designing, Stitching and Tailoring and hundreds of youth have been
trained in Hospitality and Retail Sales. Further, about 60-70% youth have been trained
for a sustainable livelihood by setting up their own entrepreneurship ventures (REACHA,
2019).
Proactive Approach to Counter Exclusion
Despite efforts to foster political, social and economic inclusion, there have been instances
of exclusion especially in the context of differently abled population, transgender,
marginalised, and vulnerable. In order to bridge these inequalities, governments look
for development alternatives so as to create equal opportunities for all. One of the
development alternatives that we are going to discuss here is the social enterprise
framework. Development advocates believe that in order to achieve the United Nations
Sustainable Development Goals (SDGs), the social enterprise framework could be
considered as an alternative as it enables economies to reinvest surpluses back into
social and environmental purposes.
Social Enterprise Framework
A social enterprise is the collective commitment of a community of people who seek to
build sustainable local economy. It intends to reduce inequalities and social stigma
194 attached with exclusion. British Council’s Report on ‘Social Enterprise: An Overview
of Policy Framework in India’ (2015), points out that the ecosystem for social enterprises Inclusive and
in India have been active since 2005. Significantly, there have been social investments Participative
Governance
to create potential value by pooling resources through grants and capital investments.
The government schemes, such as, Credit Enhancement Guarantee Scheme for
Scheduled Castes and Venture Capital Fund for Scheduled Castes provided financial
access to the economically backward sections. In 2014, with the objective to make
entrepreneurial response to social issues, India Inclusive Innovation Fund was started
(British Council, 2015). Reserve Bank of India (RBI) has made access to easier credit
for small and medium enterprises, marginal farmers etc. As a result, the ecosystem is
favourable for multiple actors, such as, incubators, academicians, national and
international donors, workshops, training etc., to create ‘social value’. In this section,
let us understand how does social enterprise framework impacts the lives of the vulnerable
with special reference to differently abled.
Having understood the significance of inclusive governance in Indian context, let us
discuss from the perspective of participative governance in the ensuing section.
1) What do you understand by the term ‘Triple Bottom Line’?
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2) Describe the context of Corporate Social Responsibility in India.
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3) Explain briefly the role of social enterprises in tackling exclusion.
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14.4 PARTICIPATIVE GOVERNANCE

With the Constitutional commitment to provide equality and equity to all, India has time
and again taken steps to ensure citizen participation in governance, such as, Public 195
Local Interest Litigation (PIL), Citizen’s Charter, Right to Information (RTI), social audit
Governance mechanism etc. These governance mechanisms have already been discussed in Unit 3-
Governance Framework in India. In this section, let us discuss the participatory institutions
and citizen tools for participation.
14.4.1 Participatory Structures in India

Participatory institutions have been formed with the intention to move forward the political,
social, and economic development agenda of the Constitution. To illustrate, Oommen
(The Hindu Business Line, 2015) cites a successful practice in grassroots democracy.
During the eleventh Five Year Plan, under the initiative of District Planning Committee
(DPC) of Kollam district, Kerala, the Integrated District Development Plan was evolved
successfully with the participation of multiple stakeholders. One of the notable
achievements of this plan was it could integrate the rural-urban plan within a period of
four years. In the ensuing sub-section, let us understand about the participative context
of governance at local level.
Rural Governance
Rural development has always been at the centre stage of development since
independence. However, in the wake of globalisation era, the challenges were multitude
especially in terms of protecting the rights of villagers. With the view to devolving 3Fs –
funds, functions, and functionaries, the central government enacted the 73rd Constitutional
Amendment Act (CAA) in 1992. The framework provides adequate representation of
marginalised communities and women, instituting State Finance Commission for smooth
flow of funds, establishment of Village Development Plan and District Planning Committee
etc. It provides a fillip to represent community as a whole as it has provisions for
reservation of women and marginalised in contesting elections.
Gram Panchayat
Gram Sabha is seen as an empowerment platform for discussing and passing resolutions
to encounter social problems like lack of community health, education etc. In this regard,
women’s participation has been crucial towards community health development. Firstly,
on the occasion of International Women’s Day in 2017, the Ministry of Panchayati Raj
(MoPR) honored around 6000 women panchayat leaders in achieving the Open
Defecation Free (ODF) Village (Government of India, April-June 2017). This is one of
the sustainable endeavours of rural governance with special reference to women’s political
empowerment.
Secondly, to create responsive local governance, the Fourteenth Finance Commission
has allocated Rs. 2,00, 292 crores for panchayats. In order to utilise the funds, the
MoPR has issued guidelines and manuals to evolve Gram Panchayat Development
Plan (GPDP). By including local priorities and needs in a fair and transparent manner,
the funds could be integrated with sustainable initiatives.
Thirdly, to encourage village panchayats for optimal utilisation of child development
funds, the Ministry has instituted an award for Child Friendly Gram Panchayat in March
2019. Keeping in view of inclusive child development, the award intends to incentivise
the villages that are proactive towards immunisation, nutrition, sanitation, school
enrollment and dropout rate, playground, drinking water facilities, mid-day meal scheme,
girl child hygiene etc. (MoPR, 2019).
In the subsequent paragraph, let us understand participative governance in urban context.
196
Urban Governance Inclusive and
Participative
With the intention to addressing the challenges of urbanisation, the central government Governance
enacted the 74th Constitutional Amendment Act (CAA) in 1992. It configured a structural
framework for electing governments at the local level and for their effective functioning.
The Act mandates compulsory reconstitution of municipal bodies within a stipulated
time frame and explicitly acknowledges a central role for the Urban Local Bodies (ULBs)
within the Constitutional framework and provides for devolution of funds, functions,
and functionaries to them. The constitution of Ward Committees in municipalities,
Metropolitan Planning Committees, and District Planning Committees for preparation
and consolidation of plans of spatial, economic, and social development marks a
paradigm shift from a traditional top down approach to bottom up approach. In essence,
the Act envisages identifying potential stakeholders at the local level for collaborative
partnerships.
In the recent years, there have been several initiatives by non-state actors in addressing
critical issues confronting cities, such as, financing municipal infrastructure, benchmarking
civic services, instituting citizen friendly initiatives etc. Let us further our understanding
through the following example.
Case Example: Innovation in Metropolitan Governance: Citizens’ Budget
The participatory budgeting campaign in Bangalore is a partnership between the citizens
and Greater Bangalore Municipal Corporation (GBMC). The initiative was launched in
December 2016 by the Public Affairs Centre (PAC), a Bangalore based think tank
which believes in collaborative partnership between the citizens, ward councilors, civic
officials, and other stakeholders. With the aim to collecting scientific data at the ward
level and to promote the concept of neighbourhood level budgets, the initiative intends
to build sustainable communities. For instance, at the neighbourhood level, open and
structured dialogues take place between the ward councilor, civic officials, and community
on budgets and civic projects. The participatory budgeting had been given due publicity
through a mobile web application and an online campaign titled “I Change My City”.
Besides, citizenship festival was conducted to collect the inputs from school, college,
and community groups. The GBMC ascertained to implement 12, 468 citizen inputs in
the 2017-18 budget. By prioritising citizens’ inputs in the budget, the Mayor and
Municipal Commissioner of the city, stay committed to the principle of ‘citizens as
development actors’ in letter and spirit (Janaagraha, 2018-19).
14.4.2 Participatory Tools

With the objective to empowering communities, various participatory tools have been
used by the concerned stakeholders. For instance, Participatory Rural Appraisal (PRA)
is a powerful tool to map village level resources, such as, water bodies, sanitation,
schools, primary health centres etc., which facilitates planning and evaluation of rural
projects. Indeed, it has also been called as Participatory Learning and Action (PLA)
because of its ability to develop a deeper understanding of social realities.
Social Mapping
Social mapping is one of the most popular methods in PRA that focuses on mapping
habitation patterns, individual households, social infrastructure like roads, drainage
systems, presence of libraries, playgrounds, drinking water facilities, etc. According to
National Institute of Rural Development and Panchayati Raj, one of the defining features
of social map is, it is designed by local people and not by experts. The idea is to enable
policies and plan as relevant to local people so as to build ownership among the 197
Local community for any government schemes. Interestingly, social map serves as a monitoring
Governance and evaluation tool for conceiving projects in terms of physical and social context of the
villages.
Participatory tools are flexible and innovative and they have been applied in disaster
prone areas to mitigate disasters, preparing evacuation maps at the time of disaster,
mapping unsafe places for women and girls etc.
The Case of Community Score Card (CSC)
In 2005, the Government of India launched the National Rural Health Mission (NRHM)
with the mission to reduce Infant Mortality Rate (IMR) and Maternal Mortality Ratio
(MMR). One of the social accountable strategies of NRHM is to mobilise the rural
communities in developing village health plans by working closely with the Village Health
and Sanitation Committee (VHNSC) and other stakeholders. Similarly, World Vision
(WV), an NGO functioning in India to mobilise community knowledge on quality
healthcare through its Project - Maternal and Neonatal Health through Birth Spacing
and Advocacy (MOMENT) aims to develop Social and Behaviour Change
Communication among rural women. Let us discuss the joint efforts of NRHM and
MOMENT in one of the districts of Uttar Pradesh (UP).
One of the World Vision’s (WV) social accountability approaches is the Citizen Voice
and Action (CVA) which aims to improve citizens’ interface with the concerned
stakeholders by making them answerable to the services delivered. It is to be understood
that the nature of ‘Community Score Card’ (CSC) is not just dissemination of scorecard,
rather, the objective is to foster community dialogue with the service providers so as to
create sustainable framework for delivering results. ‘Community Score Card’ is a social
accountability tool which is used to assess the quality of health services in terms of
‘improvement in availability and quality of essential drugs, increase in facility-
based delivery, reduced clinic and hospital waiting times, increased immunization
coverage, new incentive systems for doctors to visit remote areas, better sanitation,
new infrastructure, such as, maternity wards, improved relations between staff
and patients’.
To gain community support, WV members conducted discussions with the panchayat
heads, Accredited Social Health Activist (ASHA), Auxiliary Nurse-Mid Wives (ANMs),
Community Development Officer (CDO), family members of daughter-in-laws, such
as, mothers-in-law, husbands, and other relevant stakeholders. Primarily, gram panchayats
were educated about their access to Government Untied Funds which are allocated by
the Government to improve social and health services (Otchere, 2017). Initially, people
of Hardoi village assessed the accessibility and quality of health services. Based on the
performance measures of the services delivered, nearly 40 VHSNCs were revived and
since then coordination improved among the panchayat heads, ANMs, CDO, and the
community. To illustrate, nine out of seventeen village heads received the government
untied funds of Rs. 35,000 to revive the ANM sub-centres and eventually women
utilised this centre for immunisations and ante-natal care. Based on the concerted efforts
of the community, local and state bureaucracy, NGOs, and other stakeholders, the
accountability mechanisms in health sector has been strengthened in the districts.
Citizen Led Environmental Impact Assessment Toolkit (CLEIA)
It is an innovative toolkit that encourages community-based dialogue with the
stakeholders at key stages of Environment Impact Assessment (EIA). According to
Public Affairs Centre (PAC), CLEIA enables citizens’ to have structured data about
198 the grievance with which they could take collective action with the project proponents
or clearance authorities (Lakshmisha, 2016). To illustrate, PAC had conducted an Inclusive and
impact assessment study of the Pradhan Mantri Gram Sadak Yojana (PMGSY) in Participative
Governance
collaboration with the National Rural Road Development Agency and the World Bank
as part of the project on ‘Citizen Monitoring of PMGSY Roads’ across Jharkhand,
Karnataka, Odisha, Rajasthan, and Uttarakhand. Primarily, this exercise was done to
assess the benefits of road construction and its effect on vegetation, land, water, livelihood,
drinking water, other resources, and ecology of the villages. The volunteers of the study
were trained by PAC team on the toolkit.
Based on the socio-economic front, the citizen survey concluded that the construction
led to improved road connectivity, access to markets, schools, hospitals, and job creation.
However, the project did impact the local environment and ecology, especially, in terms
of felling of trees, agriculture, livelihoods, contamination of drinking water sources and
water bodies. Further, it was documented that in all the states the construction caused
soil erosion and reportedly affected the agricultural practices. It was thus inferred through
the study that although the project proponents have had significant effect on planting of
trees, the need to mitigate the negative environment impacts on the local ecology was
underscored.
Social Media and Disaster Response
Recently, the significance of social media has become highly relevant especially during
disasters. Social media technologies include Facebook, Twitter, WhatsApp, Youtube,
and such allied technology applications that are capable of connecting the users with
the global community even when there is a collapse of communication network. In this
sub-section, let us discuss the social media usage and its impact on disaster response.
Case Example: The Kashmir Floods (2014)
During the Kashmir floods of 2014, people were stranded in remote areas due to huge
destruction of roads, collapse of power supply and communication networks. The rescue
teams were looking for alternative action. However, the Indian army and the National
Disaster Response Force (NDRF) were able to undertake swift rescue operations
through social media updates of citizens through Facebook page, Twitter, and WhatsApp
group. The social media posts were verified by a team of officials for its authenticity.
Later, the Army had reported that it was able to rescue around 12,000 people (Najar,
2014) from the flood affected areas. Through this example, we could understand the
way citizens innovatively partnered with government using social media technologies.
In fact, it not only saved time and cost of the government but also the life of affected
people.
In the ensuing section, let us discuss briefly the key issues and challenges of inclusive
and participative governance.
1) Describe the role of participative institutions in urban context.
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199
Local .....................................................................................................................
Governance
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2) What is the purpose of social mapping?
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3) Explain the significance of Community Score Card.
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14.5 INCLUSIVE AND PARTICIPATIVE

GOVERNANCE: KEY ISSUES AND
CHALLENGES
With the state and non-state actors around the world reinforcing on the agenda ‘inclusive
and participative governance for development’, contemporary governments have thus,
renewed their commitment towards sustainability. Nevertheless, the challenges are many
in terms of caste, class, gender, capacity building of elected representatives and other
stakeholders. Despite Constitutional amendments in governance, the local governments
are not yet able to meet the resource needs owing to the challenges as mentioned
above. The ‘inclusive and participative context’ is more relevant in local scenario as it
has the capacity to directly engage the citizens. Let us understand the issues and challenges
given below:
Gender Imbalance
With 50% reservation in local bodies, yet, women are not able to realise their political
empowerment. The constitutional arrangement enables all women irrespective of caste,
class, education, and income to participate, however, the patriarchal attitude, lack of
political and administrative understanding restrict them from performing development
functions.
Lack of Citizen Awareness
There have been a whole lot of participative and inclusive structures in the country for
women and marginalised sections, however, lack of awareness on government schemes
inhibits their economic and social participation. To illustrate, majority of untied funds
meant for village development go under utilised at the end of the financial year. Another
aspect is in relation to access to loans and subsidies, the government has initiated various
schemes and programmes exclusively for small, and medium enterprises including the
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establishment of National Bank for Agriculture and Rural Development (NABARD), Inclusive and
nevertheless, people are still unaware about their financial prospects. In 2016, with the Participative
Governance
objective to create financial awareness in a village in Tamil Nadu, NABARD conducted
Financial Literacy Awareness (FLA) programme for the self-help groups and marginal
farmers. This was primarily organised to enable the poor and vulnerable sections to
make use of social security schemes of the government (The Hindu, 2016).
Lack of Adequate Capacity Building Training
People at the local level are still inadequate in terms of capacity building. For example,
to develop an integrated plan for the district, a joined up dialogue and involvement are
yet to scale up in several districts of India. Training programmes on micro planning,
disaster resilience, gender sensitisation and budgeting, girl child safety, mental health
status etc. are yet to get reflected in the plan process.
Other Issues and Challenges
Some of the other challenges are:
• Geo-spatial mapping of resources at village level;
• Scientific collection of citizen feedback on public services at a large scale;
• Involvement of multiple stakeholders with the community;
• Documentation of governance innovations by local people; and
• Security and privacy of sharing of ward level data.
Besides, the above mentioned issues and concerns, there may be context specific
challenges in the concerned department or district or village. These could be holistically
addressed only with the unfolding of grassroots democracy. According to Goldbard
(2010), “Citizens can be reached and engaged if they are offered ways to take
part that are interesting and satisfying in themselves, that combine learning and
doing, that engage not only their participation, but their creativity”. As pointed
out, creative ways of involving citizens is the need of the hour.
14.6 CONCLUSION
In the process of advancing people’s participation, there has been a rising global concern
to re-examine the capacity of state and non-state actors. With ‘sustainability’ being the
mission of state and non-state actors, adequate development indicators were instituted
to examine the social well-being and environment protection. Unlike the neo-liberal
doctrine that focuses on expansion of capital markets over social investments, the CSR
initiatives of companies have been working towards building sustainable communities
by integrating their business strategies and social value. To develop alternatives in financial
inclusion, social enterprise sector seem to be a viable option. Several participatory
tools have been evolved to provide citizen feedback on public service delivery with the
aim to improving the standards and to benchmark best practices. However, the success
is determined by the quality of citizen participation and their attitude towards nation
building. From the case examples discussed in this Unit, it can be understood that
democracy can become feeble and futile without the presence of formal and informal
linkages for citizen participation.
201
Local
Governance 14.7 GLOSSARY
Development Outcomes: Development outcomes indicate the impact of public policies
in reducing poverty and inequality in all forms. In developing country context, it is the
capability of the excluded groups to access, participate, and thrive in education,
employment, and business endeavours.
Infant Mortality Rate: It is the number of deaths per 1000 live births of children
under one year of age.
Maternal Mortality Rate: It is the number of registered maternal deaths due to birth
or pregnancy related complications per 1,00,000 registered live births.
Neo-liberal: It refers to freedom of market and minimum interference from the
government.
Social Value: It refers to a company’s mission towards positively contributing to the
lives of poor and marginalised.
14.8 REFERENCES
Ashraf, S. (Financial Express, January, 2019). Budget 2019 for women: Here’s the
budget allocation for women in the last budget. Retrieved from: https://
www.financialexpress.com/budget/budget-2019-for-women-heres-the-budget-
allocation-for-women-in-the-last-budget/1448716/
Basu, D.D. (2019). Introduction to the Constitution of India (24thed.). Nagpur:
Wadhwa Publishers.
British Council (December, 2016). Social value economy: A Survey of the Social
Enterprise Landscape in India. Retrieved from: https://www.britishcouncil.in/sites/
default/files/british_council_se_landscape_in_india_-_report.pdf
British Council (October, 2015). Social Enterprise: An Overview of the Policy
Framework in India. Retrieved from: https://www.britishcouncil.org/sites/default/files/
social_enterprise_policy_landscape_in_india_british_council.pdf
Choudhary, D. (March, 2017). How Intellectually Disabled individuals are turning
waste flowers into powdered colours and are selling them in Walmarts across the
country. Retrieved from: https://www.theoptimistcitizen.com/waste-flowers-powdered-
colours/
Economic Times (2011, November 01). A P J Abdul Kalam’s vision for a better,
richer world in 2030. Retrieved from: https://economictimes.indiatimes.com/view-point/
a-p-j-abdul-kalams-vision-for-a-better-richer-world-in-2030/articleshow/
10548491.cms?from=mdr
Goldbard, A. (2010). The Art of Engagement: Creativity in the Service of Citizenship.
In Connected Communities, ed. James Svara and Janet V. Denhardt, Phoenix: Alliance
for Innovation.
Government of India. (March, 2019). New Award for Child Friendly Gram Panchayat
Retrieved from https://www.panchayat.gov.in/documents/10198/1836504/
CF_%20GP%20Ltrs.pdf
Government of India. (February, 2019). Gram Panchayat Development Plan.
Retrieved from: https://www.panchayat.gov.in/documents/10198/355951/
PS120219.pdf
202
Government of India. (April-June 2017). Gramoday Sankalp. Vol. 1(1) Retrieved Inclusive and
from: https://www.panchayat.gov.in/documents/10198/1836109/English% Participative
Governance
20News%20Letter.pdf
Government of India. (2006). Environment Impact Assessment Notification.
Retrieved from: https://parivesh.nic.in/writereaddata/ENV/EnvironmentalImpact
AssessmentNotification-2006/so1533.pdf
Janaagraha. (2018-19). Citizens’ Budget. Retrieved from: http://www.janaagraha.org/
files/publications/CBI-Report-2018-English-Online.pdf
Lakshmisha, A. (et.al). (2016). Strengthening Citizen Involvement in Environment
Impact Assessment. Retrieved from: http://pacindia.org/wp-content/uploads/2018/05/
strengthening_citizen_involvement_in_EIA.pdf
Madhav, P. (2017, April 04). Prithika Yashini, India’s first transgender police officer,
wins acceptance. Retrieved from: https://www.indiatoday.in/india/story/prithika-yashini-
india-first-transgender-police-officer-tamil-nadu-969389-2017-04-04
Najar, N. and Barry, E. (2014, September 12th) Embrace of Social Media Aids Flood
Victims in Kashmir. Retrieved from: https://www.nytimes.com/2014/09/13/world/asia/
embrace-of-social-media-aids-flood-victims-in-kashmir.html
National Institute of Rural Development and Panchayati Raj (NIRDPR). Participatory
Rural Appraisal. Retrieved from: http://www.nird.org.in/nird_docs/gpdp/pra.pdf
Oommen, M.A. (The Hindu BusinessLine, 2015). Decentralisation has fallen off the
agenda. Retrieved from: https://www.thehindubusinessline.com/opinion/decentralisation-
has-fallen-off-the-agenda/article9272167.ece
ONGC. (2019). ONGC CSR work in Jammu and Kashmir recognised by FICCI.
Retrieved from: https://www.ongcindia.com/wps/wcm/connect/en/media/press-release/
ongc-csr-work-jammu-kashmir
Otchere, S. (et.al). (2017). Social accountability and education revives health sub-
centres in India and increases access to family planning services.Retrieved from:
https://journal.cjgh.org/index.php/cjgh/article/view/177/411
REACHA. (2019). ONGC CSR Projects. Retrieved from: at http://www.reacha.org/
ongc-csr-project
Slaper, F. T. and Hall, J. T. (2011). The Triple Bottom Line: What Is It and How
Does It Work? Retrieved from: http://www.ibrc.indiana.edu/ibr/2011/spring/pdfs/
article2.pdf
The Economic Times (2019, March 1st). India Inc spent over Rs 50K cr on Corporate
Social Responsibility in FY15-18: Crisil. Retrieved from: https://
economictimes.indiatimes.com/corporate-news/india-inc-spent-over-rs-50k-cr-on-
corporate-social-responsibility-in-fy15-18-crisil/articleshow/68211299.cms
The Hindu, (January, 28th, 2019). Bhopal Gas Tragedy: SC to hear in April Centre’s
plea for enhanced compensation. Retrieved from:https://www.thehindu.com/news/
national/bhopal-gas-tragedy-sc-to-hear-centres-plea-for-enhanced-compensation-in-
april/article26110312.ece
203
Local The Hindu. (July, 2016). NABARD conducts financial literacy programme in village.
Governance Retrieved from: https://www.thehindu.com/news/national/tamil-nadu/NABARD-
conducts-financial-literacy-programme-in-village/article14487265.ece
The Hindustan Times. (2015, February 24th). Bhopal Gas tragedy: Possibility of
UN assessment of contamination spread. Retrieved from: https://www.hindustantimes.
com/bhopal/bhopal-gas-tragedy-possibility-of-un-assessment-of-contamination-spread/
story-cx3mg3b5d0GwSgh9pSP5KJ.html

EXERCISES
i) Triple Bottom Line (TBL) was developed by Elkington.
ii) It has three dimensions, namely, environment, social, and economic.
iii) It has changed the landscape of the way businesses are run.
i) CSR operates based on TBL approach.
ii) It intends to build sustainable communities.
iii) It partners with the state and other non-state actors.
i) Exclusion refers to keeping away the differently-abled, vulnerable and
marginalised communities from mainstream development.
ii) It could be linked with the United Nations Sustainable Development Goals.
iii) It aims to bridge social inequalities.
i) It provides structural framework for constituting municipal bodies.
ii) It delineates the powers to urban local bodies in terms of 3Fs (funds, functions,
and functionaries).
iii) It envisages identifying potential stakeholders for collaborative partnerships.
i) It is one of the popular methods in PRA to map social resources.
ii) It is unique as it is designed by people.
iii) It is flexible and innovative.
i) It is used to assess the quality of public services.
ii) It is used as a decision making tool.
iii) It fosters community dialogue in fixing responsibilities.
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BLOCK 5
GOOD GOVERNANCE INITIATIVES IN INDIA
206 blank
UNIT 15 PUBLIC SERVICE GUARANTEE
ACT, CITIZEN’S CHARTER, RIGHT
TO INFORMATION, CORPORATE
SOCIAL RESPONSIBILITY*
Structure
15.0 Objectives
15.1 Introduction
15.2 Public Service: Meaning
15.3 Factors Promoting Effective Public Service Delivery in India
15.4 Public Service Guarantee Act
15.5 Citizen‘s Charter
15.6 Right to Information
15.7 Corporate Social Responsibility
15.8 Conclusion
15.9 Glossary
15.10 References
15.0 OBJECTIVES
• Explain the meaning of public service;
• Identify the factors promoting effective public service delivery;
• Discuss the provisions and impact of Public Service Guarantee Act;
• Describe the concept and significance of Citizen’s Charters;
• Examine the significance of Right to Information; and
• Analyse the significance of Corporate Social Responsibility.
15.1 INTRODUCTION
Administration is an integral part of citizens and vice versa; the two are completely
intertwined. The basic aim of administration is the welfare of the people that is, providing
them the basic amenities of life. The success of any administrative system depends on
the efficient and effective delivery of these services to the citizens. The administration
on its own cannot provide effective goods and services to its citizen. It needs their
support and cooperation. In other words, citizens should become active participants in
the process of service delivery and should cooperate with administration. Since we talk
of governance, citizen-centric administration is a key aspect.
* Contributed by Dr. Sweta Mishra, Senior Assistant Professor, Gargi College, University of
Delhi. 207
Good Governance In fact, in the contemporary context, the powers and functions of the State have increased
Initiatives in India manifold and the scope of administration has widened. In this process, it has acquired
immense discretionary powers and prerogatives. It is generally felt that in the exercise
of vast administrative powers, there is always scope for malpractices, corruption and
harassment of the citizens. It is being increasingly realised that the existing mechanism
for the redressal of the citizens’ grievances is inadequate to safeguard the citizens against
the arbitrary use and misuse of power by the administrators and public authorities. In
addition citizens interact with administration every day for getting basic services such as
water, electricity and so on. Bhattacharya (2008) categorises citizens’ interactions with
administration into five forms- clients, regulatees, litigants, participants and cutting edge
encounters. Many a times it makes them dissatisfied with the provision of services. This
realisation has given rise to the need to bring administration closer to citizens and regain
their trust in the former. The good governance initiatives are steps in this direction.
We have discussed about the concept of good governance in Unit 2 of this Course. In
this Unit, we shall orient you with some of the initiatives taken in India such as Public
Service Guarantee Act, Right to Information, Citizen’s Charters, and Corporate Social
Responsibility.
15.2 PUBLIC SERVICE: MEANING

Public service is associated with government and it is offered and guaranteed by the
administrative bodies to its citizens. Public services offer the most common interface
between the citizens and the State. Their functioning and delivery shape peoples’ sense
of trust in and expectations of government. The government through its various tiers –
central, state and local – aims to provide equitable standards of living by opening up
schools and hospitals, running an efficient public delivery system, and improving the
standard of living of the people. These services are provided by the government to its
citizens, either directly or by financing the private players.
Public service means all the goods and services, including functions, obligations,
responsibility or duty, to be provided by a public authority (Citizen’s Charter Bill 2011).
Public services are those services which are mainly, or completely, funded by taxation.
These services do not normally operate for financial profit or require an immediate
payment for goods and services prior to delivery (Flynn, 1990). They are primarily of
non- commercial character and are free of market competition. These services are
provided on equitable basis and the resources are allocated according to need. Public
service to a large extent caters to the consumers who do not have much choice in the
market.
A public service is associated with the government and it is offered by the administrative
bodies to the citizens living within its area of jurisdiction. It provides a medium of common
interface between people and the government. These services are to be provided within
a stipulated time frame under the Public Service Guarantee Act/ Right to Services Act
in India. Some of the common public services which are to be provided as per the Act
are the issuing of birth, caste, marriage and domicile certificates, electric connections,
voters identity card , ration card, copies of land records and so on. The nature of these
services is monopolistic, oligopolistic and mandatory.
15.3 FACTORS PROMOTING EFFECTIVE PUBLIC

SERVICE DELIVERY IN INDIA
Public service delivery, in a developing country like India, is an important and integral
part of the governance process. Without a proper delivery mechanism in place we
208
cannot deliver public services to the citizens. Since independence, many efforts have Public Service
been made in this area, but desired results could not be achieved for some reason or Guarantee Act,
Citizen‘s Charter,
the other. The public service delivery has been plagued with shortcomings in the
bureaucratic system as also the political malpractices. Corruption in public distribution Corporate Social
system and fair price shops has been very alarming. According to a data, an estimated Responsibility
58 per cent of the subsidised food grains issued from the central pool do not reach the
target groups i.e., the below poverty line families, and around 36 per cent is siphoned
off in the supply chain (Planning Commission, 2009).
In such a scenario, the public service delivery was bound to suffer and the worst victims
of this were the marginalised people living in the rural areas. During the nineties, with the
reform era in place, efforts to make public service delivery gathered momentum. Since
then a number a measures were adopted to enhance and promote the public service
delivery in India. Some of these factors are discussed below:
There has been a global wave of efforts to reform the State especially since late eighties
and early nineties. The concept of good governance with emphasis on adherence to
rule of law, accountability, responsiveness, transparency triggered various initiatives.
Decentralisation: It is one such reform effort advocated throughout the globe.
Accordingly, many countries decentralised State powers to the subnational governments
and shifted some of its powers to the periphery. India was no exception to this. It
formalised decentralisation by establishing local governments through 73rd and 74th
Constitutional Amendments in 1992. Though decentralisation of finances and functions
started way back in the 19th century, it was the 73rd and 74th Amendments that brought
decentralisation to the forefront.
Decentralisation has become one of the most politically correct ideals for better
governance in today’s time. It was seen as a means to reform the State in order to
improve effectiveness of development programmes and schemes, public service delivery
and thereby speedening up the process of development. It was also seen as a means
for widening and deepening the roots of democracy, bringing government closer to the
people, thereby fostering greater people’s participation, civic virtue, protection of civil
liberties and government accountability (Mullen, 2012).
Decentralisation has been looked at as a singularly useful mode of administration to
deliver the public services from convenient local centres close to the clients’ locality and
thus more responsive to local needs. The developing world has undergone some form
of decentralised governance in line to meet peoples’ demands (Islam, 2007). Bringing
administration to the doorsteps of the citizens and establishing a direct relationship
between the citizens and the administration have been the driving force behind
decentralisation in most of the countries.
Citizen’s Awareness and Demand for Better Public Services: The contemporary
times is witnessing information upsurge and people demanding better public services.
Community Mobilisation: This is one of the key factors impacting effective public
service delivery. People mobilising in form of self-help groups, community based
organisations and so on, assert their rights in demanding effective public services.
Technology
Technology in current scenario influences public service delivery. It impacts governmental
functioning, sharing of information and delivery of services to the internal and external
clients. It also ensures transparency and accountability in the delivery of public services
as also in the governance process. The information and communication technology 209
Good Governance brings government services to the beneficiaries in a transparent, speedy, easy and efficient
Initiatives in India way. The ICT-based governance opened new economic opportunities, brought
transparency in public-private transactions, insights into outsourcing processes and an
accountable administration. It introduced a minimum guarantee against arbitrary
exchanges and government procurements and some form of standardisation of
procedures (Nath, 2016).
The application of electronic means in the interaction between government and citizens
(G2C) and government and business (G2B) as well as in internal government operations
(G2G) has simplified and improved democratic government and business aspects of
governance (Saxena, 2005). By providing online access and information to the citizens
with regard to land records, caste and income certificates and various other government
services, things have become very simple and easy for the citizens. Just by a click of
the mouse, they get things readily available at their doorstep.
E-governance and digitalisation is changing the way governments are addressing the
problems of the citizens and delivering them. Digitalisation will go a long way in making
the system accountable and transparent and also ensure better and efficient delivery of
public services.
The State level e-governance projects like Akshaya in Kerala, Gyandoot in Madhya
Pradesh, Digital Saksharta Abhiyan in Haryana, SWAGAT in Gujarat, APSWAN and
TWINS in Andhra Pradesh, Bhoomi in Karnataka, E-mitra and Rajasthan Sampark in
Rajasthan, etc., are a proof that ICT is extensively being used in the various government
departments for enhancing efficiency, transparency, accountability and providing better
quality and time bound services to the people. We have discussed this in detail in Unit
8 of this Course.
On the whole, the impact of technology on governance has been encouraging. It
represents a win- win situation for all the stake holders – the private sector, market,
government; increases efficiency and effectiveness, citizens get more convenient services
with greater transparency and less corruption. The innovative E-government applications
have been already been implemented in isolated pockets. However, the real challenge
is to have wide scale impact. Making E-government wide spread involves bridging the
digital divide, enabling access to internet to rural areas and setting up into kiosks. A
major task is to build institutional capacity for government reforms.
15.4 PUBLIC SERVICE GUARANTEE ACT

The public services law in India owes its origin from the Citizen’s Charter of UK, which
was promulgated in 1991. It is not a legal document in the strict sense of law. It is an
agreement of contract entered into between the citizens and the public servants, which
provides for competent and time bound delivery of services. It sought to add consumer
rights to the list of citizens’ rights, and thereby equipping them with the means of seeking
personal redress if the services which they received were inadequate and not as promised.
The main idea behind the charter was to make public services accountable, i.e., if the
public service which people have paid for is not of good quality, then why should they
not get their money back? This way they would have the right to purchase it from any
shop or service provider in the private sector which is providing them better services.
The public service guarantee act is also known as Right to Public Services Act in some
states. It provides for legislation and statutory laws that guarantee time bound delivery
of services by the government to the citizen and provides mechanism for punishing the
errant public servant who fails to provide the service stipulated under the statute, within
210 stipulated time.
The introduction of Right to Services Act in India has given a powerful weapon in the Public Service
hands of citizens of India. The era before its inception witnessed tormenting state of Guarantee Act,
government departments where citizens had to go through unspoken hassles, corruption,
delayed services with lack of transparency by some errant public servants with a sense Corporate Social
of impunity in their government departments. In consideration for growing incidents, Responsibility
complaints and to introduce a statutory mechanism that could control such activities,
the Right to Public Services Legislation was enacted.
The Right to Services Act is considered to be one of the most effective ways to reduce
corruption in India, enhance transparency in public sector operations and provide public
accountability. It is a state legislation and the states have complete discretion to adopt,
implement and limit the Act in whatever manner they deem fit. Currently, there are
twenty states that have implemented this Act and it represents duty towards citizens by
providing them standard, quality, transparency and timely delivery of public services, in
addition to an enforceable grievance redressal mechanism.
Madhya Pradesh was the first state to enact the Right to Service Act on 18th August
2010 and Bihar became the second state to implement it on 25th July 2011. The other
states which followed the suit are Delhi, Punjab, Rajasthan, Kerala, Uttar Pradesh,
Uttarakhand, Himachal Pradesh, Odisha, Jharkhand, Haryana, West Bengal, Gujarat,
Jammu & Kashmir, Goa, Maharashtra, Karnataka, Chhattisgarh and Assam.
Main Provisions of the Act
The main provisions of the legislations in various states provide for granting of “right to
public services”, to the public by the designated official within the stipulated time-frame.
Under the legislation, the public services are to be granted as a right and are generally
notified separately through gazette notification. Some of the common public services
which are to be provided within the fixed time frame as a right under the Acts, include
issuing caste, birth, marriage and domicile certificates, electric connections, voter’s
card, ration cards, copies of land records, etc. If the designated officer fails to provide
the public services within the stipulated time or rejects to provide the service, the
aggrieved person can approach the First Appellate Authority. The First Appellate
Authority, after making a hearing, can accept or reject the appeal by making a written
order stating the reasons for the order and intimate the same to the applicant, and can
order the public servant to provide the service to the applicant. An appeal can be made
from the order of the First Appellate Authority to the Second Appellate Authority, who
can either accept or reject the application, by making a written order stating the reasons
for the order and intimate the same to the applicant, and can order the public servant to
provide the service to the applicant or can impose penalty on the designated officer for
deficiency of service without any reasonable cause, which can range from Rs. 500 to
Rs. 5000 or may recommend disciplinary proceedings. The applicant may be
compensated out of the penalty imposed on the officer.
So far as the general procedure under Public Service Guarantee Act is concerned,
once they submit an application to the public officer for the preferred service, citizens
receive an acknowledgement. After that, the officer is ideally supposed to render the
preferred service within the stipulated time from the date of the acknowledgement. As
per the prescribed rules of government offices, acts and provisions as applicable on
any respective government office, every service should be provided to the applicant
within the fixed time frame unless there is some genuine reason. But, if the said officer
fails to render the services within the given time-frame, the applicant is empowered by
the Act to approach the First and Second Appellate Officers. The Appellate Officer
shall instruct and bind the officer to provide the service to the applicant as they have the 211
Good Governance power and authorities to impose the penalty, summon designated officers and instruct
Initiatives in India them to produce related documents. Any delay after the given instructions by the Appellate
Officer shall attract fine on the delaying officer as per the State Provisions of the Act.
Even the Appellate Officer can be penalised under this Act if he/she fails to perform his/
her service or fails to give the substantial reason for non-performance or delivery of his/
her service.
Impact of the Act
With around twenty states adopting the Act, it exhibits actual efforts made to curb
corruption and foster transparency in government departments, which can help the
citizen to avail public services without any hassle. However, the question that arises
after the adoption of Right to Public Service Act is how well its implementation has
transformed the existing system? The answer is right here! It is evident that there are
variations in the Public Service Acts of the state with regard to the services they provide
and the penalty mechanism for the failure to provide the public services. Each state has
laid down penalty on failure to deliver the service within the set time and amount of
penalty provided by states differ. The impact of the Act depends on every state’s
implementation order. If the implementation is strong, the legislation can play an
instrumental role in curbing corruption and tracking the workflow in each government
department. Amongst all the states mentioned above, Karnataka has won accolades.
The past figures revealed that in a month long pilot study, one lakh applications were
filed and out of them, 87,000 have been successfully disposed of. It is true that some of
the participating states have had poor implementation and some have the good
implementation.
So far as the central level is concerned, the Central Government proposed Citizen’s
Charter and Grievance Redressal Bill, 2011 or Right of Citizens for Time Bound Delivery
of Goods and Services and Redressal of their Grievances Bill, 2011 on the same lines
as that of Right to Services Act. It still has to be passed in the Parliament. It shall apply
to central government departments, constitutional bodies, statutory authorities, Public-
Private Partnerships and NGOs mainly funded by central government.
1) What do you understand by public service?
.....................................................................................................................
.....................................................................................................................
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2) What are the factors that promote effective public service delivery?
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212
..................................................................................................................... Public Service
Guarantee Act,
..................................................................................................................... Citizen‘s Charter,
3) Explain Public Service Guarantee Act. Corporate Social
Responsibility
.....................................................................................................................
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15.5 CITIZEN’S CHARTER

Citizen’s Charter is a non-agency devise for people’s participation. It is a document
representing an effort to focus on the commitment of the public organisations towards
its clients/citizens. It was with the motto of ‘Putting People First’ that the Citizen’s
Charter initiative came up as a written declaration by government departments enlisting
a set of commitments, standards of service delivery and redressal and remedial actions
in case of non-compliance with the same. It includes adoption of an explicit statement
of standards in the form of a charter. It is a manifestation of public organisations’ desire
to provide quality services to its clients. The idea behind the Charter is tapping citizen’s
responses to the actual working of government organisations and to build efficiency
and effectiveness of public services.
The concept was first initiated in Great Britain when a white paper was issued in the
form of Citizen’s Charter in 1991. The other governments like Australia, Belgium, France,
Portugal, Spain, Canada and United States of America, followed the suit for providing
better services to citizens. These countries have adopted citizen’s charter, containing
rights for the citizens, as part of their national strategic objective. A rights-based approach
to public service delivery is also followed in India.
It is a concept based on government-citizen relationship. It views public services through
the eyes of those who use them i.e., the citizens. Although citizen’s charter is not
enforceable by the citizens, it provides a tool for improving the public delivery system
based on certain standards, quality and time frame. It gives more power to the citizens
and also more freedom to choose. The key elements of citizen’s charter are: standards,
information and openness, choice and consultation, courtesy and helpfulness, putting
things right and value for money.
The Sevottam model is designed as an assessment tool by Department of Administrative
Reforms and Public Grievances(DARPG) in 2006. SEVOTTAM is the ‘Nine Criteria
Model for Citizen Centricity’, meaning Uttam Seva or excellence in service delivery. It
is a three-module assessment tool that sets a benchmark which is to be complied with,
while enhancing customer satisfaction, monitoring performance or assessing efficient
and continual improvements in service delivery. Department of Posts, Gol Dak Khana,
New Delhi was awarded the first Sevottam Certification in March 2008. Certified as
an Indian standard IS 15700:2005 by the Bureau of Indian Standards in December
2005, it integrated the citizen-centric initiatives into one model. The model synthesises
the nine compliance criteria into the following three modules: a) Charter Effectiveness,
b) Public Grievance Redressal, and c) Service Delivery Capability. Sevottam guidelines
make it as a necessity to enhance delivery capability by specifying satisfaction indicators
213
Good Governance for stakeholders. These can be assessed by conducting surveys or consultations with
Initiatives in India the citizens who are the main customers and by establishing new schemes for the same.
Employee punctuality, promptness and behaviour are essential conditions for carrying
out operations in an organisation (Government of India, 2014).
Thus we see that the norms of the citizen’s charter are a reiteration of the norms which
are integral to the foundation of accountability of public administration. There is no
doubt that the citizen’s charter strategy, if formulated and implemented in an objective,
conscious and committed manner to give the citizens their due, can lead us towards
good governance (Jain, 2002). Citizen’s Charters is a good example of the changing
attitude of government towards citizens as also effective and efficient public service
delivery.
15.6 RIGHT TO INFORMATION

Right to Information has emerged as a prominent concern in the field of public
administration and is regarded as one of the most important social innovations of this
century in the field of accountability and transparency and also public service delivery.
It continues to be advocated as a pertinent component of policy packages to improve
governance in developing countries. In fact, it has become an important instrument
through which openness, transparency and accountability can be brought about in the
governance process, citizens’ grievances redressed and public services delivered in a
better and efficient way. We have discussed this as a tool of accountability in Unit 12
of this Course.
Right to information has been derived from Article 19 of Universal Declaration of Human
Rights (UDHR) 1948. It is a fundamental human right and the touchstone for all freedoms
to which UN is consecrated (UN General Assembly Resolution, 1946). Sweden was
the first country to provide this freedom to its citizen’s way back in 1766.
In India the Right to Freedom of Information is not explicitly provided for in the Indian
Constitution. However, Article 19(1) (a) of the Constitution includes the Right to
Information when read with Article 19 of United Declaration on Human Right (UDHR).
The Right to Information Act was enacted by the government in 2005.
Right to Information opens up government’s records to public scrutiny, thereby arming
citizens with a vital tool to inform them about what the government does and how
effectively; thereby making the government more accountable. Information about
functioning of government also enables citizens to participate in the governance process
effectively. In a fundamental sense, Right to Information is a basic necessity of good
governance (Government of India, 2006).
In a system seething with corruption and becoming increasingly insensitive to the
problems of the disadvantaged citizenry, RTI has shown promise of empowering citizens
to ensure accountability and act as an enforcer of good governance (Gandhi, 2009).
The RTI Act is a torch-bearer that can lead to more open, accountable, responsive and
people-friendly governance.
Right to Information (RTI) is a very potent weapon and its positive role has been
witnessed especially at the grassroots levels in the Mahatma Gandhi National Rural
Employment Guarantee Act (MGNREGA).The MGNREGA guidelines stipulate that
all information be displayed to the public through display boards and paintings on the
walls of the panchayat offices. Apart from this, there is also a provision that all the
MGNREGA accounts and their summaries at the gram panchayat level should be made
214
publicly available for scrutiny (Aiyar and Samji, 2012). RTI at the grassroots level is Public Service
being implemented through social audits of MGNREGA. Guarantee Act,
RTI has been successfully implemented and there are examples which clearly show that Right to Information,
citizens and civil society groups are now legally demanding information on the functioning Corporate Social
Responsibility
of state-sponsored rural development and welfare schemes by using RTI. Sabar Ekta
Manch, a Gujarat based NGO, used RTI in 2006, to get information on the minimum
wage being paid to MGNREGA workers. It was found that the workers were not
being paid the amount as mandated under MGNREGA. On the basis of this information,
a request seeking resolution of the irregular payment to the workers was filed in the
Gujarat High Court (Trapnell, 2014).
In November 2007, the Rajasthan government collaborated with the Rozgar Evam
Soochna Ka Adhikar Abhiyaan, to develop a decentralised worksite management
system. The purpose of this Abhiyaan has been to create a pool of trained worksite
managers that take daily measurements of worksites and determine daily output. The
key emphasis is on transparency (ibid).
In Delhi, a voluntary organisation called Parivartan, has been quite successful in
facilitating the use of Right to Information in addressing their grievances, getting the
pending works done by the government departments and also inspecting the government
works. It is helping the poor people in getting ration cards or receiving their ration
quota on Antyodaya card under the public distribution system by exercising the RTI
(Guha Roy, 2006).
In 2004, the slum dwellers with the help of a Delhi based NGO, Satark Nagrik
Sangathan, made use of Delhi RTI Act for having access to ration shop records. It was
found that the shopkeepers were siphoning off rationed wheat, rice and sugar on regular
basis and selling it to fake ration-card holders (Trapnell, op.cit).
These examples are a clear indication of the fact that citizens are using RTI for a wide
range of issues relating to public service, like primary and secondary education, health
care, sanitation, water supply, electricity and pension to name a few. RTI has no doubt
brought a sea change in the governance process and has made public service delivery
effective and efficient.
15.7 CORPORATE SOCIAL RESPONSIBILITY

Corporate Social Responsibility (CSR), a governance-centric approach to citizen’s
welfare, is an obligation on the part of the corporates to act in a manner which will serve
the best interests of the society. The concept of CSR is based on the premise that it is
not only the State through public policies which is responsible for societal development
but the corporates also need to be responsible for such initiatives. The companies are
made responsible to take care of not only their work force but contribute to societal
development. It makes corporates integrate social and environmental concerns into
their business operations and involve stakeholders in their activities. It also stresses on
accountability, transparency and social and environmental investment as the key aspects
of corporate social responsibility. It is a commitment by business by investing in socio-
economic activities that can lead to societal betterment.
CSR covers three aspects which are as follows:
i) Traditional corporate philanthropy, i.e., charity for socio-cultural and religious
purposes.
215
Good Governance ii) Corporate social responsibility, with a focus on sustainable development and
Initiatives in India attending to stakeholders’ priorities.
iii) Ethical business based on social values and the stakeholders’ long-term interests.
CSR is not a new concept. J.R.D. Tata recognised that business does not operate in
isolation from society. Over the years, several business houses in India have shown
their concern for social responsibility through their contribution in the field of education,
health and rural development programmes. There have been attempts by Tatas, Birlas,
Bajajs and others since independence in the fields of education, health and so on.
The business houses understood the need for contributing to economic growth, increase
in employment, development of backward regions, health facilities, etc. They have also
contributed to the ecological balance, increasing exports, encouraging ancillary industries
and welfare of local communities where their plants are located. In other words, these
business organisations provided a platform to undertake individual or collective social
efforts toward charity (Sood and Arora, 2006).
Today CSR is articulated in a new fashion, underlining the contextual peculiarities involving
the role of the State, civil society organisations and also the corporate houses. There
has been a fundamental change in its nature from philanthropy-based model of CSR to
one in which community as stakeholders becomes most critical. In the changed scenario,
apart from profit, the corporate houses should also take care of human rights, business
ethics, environmental concerns, community development and other relevant socio-
economic issues (Chakrabarty, 2016).
Traditionally, CSR activities by corporate houses in India were predominantly determined
by culture, family traditions and so on. During freedom struggle, Gandhiji’s theory of
trusteeship influenced the activities of corporates towards social development. After
independence, the expansion of public sector witnessed certain CSR activities. From
1980s till date a drastic change is visible with the traditional philanthropic attempts
transforming CSR into coherent and sustainable business strategy with multi-stakeholder
involvement. We have examples of Wipro, Infosys, Mahindras and several companies
working in areas of gender equality, women’s empowerment, environmental sustainability,
health, education and so on.
The new guidelines on CSR has made it mandatory on all companies to invest at least
2 per cent of average net profits of the company made during the three immediately
preceding financial year, in pursuance of the company’s CSR policy. The enactment of
Section 135 of the Companies Act 2013 made CSR spending and reporting mandatory
for the first time and brought CSR initiatives of Indian corporates under the purview of
corporate law. It aims at corporate sustainability. The provisions under this is mandatory
for companies with net worth of Rs.500 crore or more or those with turnover of Rs.1000
crore or more or those companies with net profit of Rs. 5 crore more.
Thus, we see that CSR is about the social agenda of the companies for a wider reach.
The business houses are expected to be compassionate of the poor and the
underprivileged. They are expected to relate to the reality and cannot persuade the
government to make policies that help a few (Tehelka, 2009). Apart from this, the
business houses should meaningfully address India’s socio-economic concerns because
these concerns being key to company’s growth are also linked with the growth of the
country. In other words, there has to be a meaningful cooperation between the
government, civil society and corporate houses for efficient and quality public service
delivery. CSR is thus a safety valve demonstrating the social concern of the corporate
houses for the poor and down-trodden. CSR integrates business ethics and social
216 accountability.
Check Your Progress 2 Public Service
Guarantee Act,
Note: i) Use the space given below for your answers. Citizen‘s Charter,
ii) Check your answers with those given at the end of the Unit. Corporate Social
Responsibility
1) How does Citizen’s Charter help in service delivery?
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
2) Explain the importance of RTI.
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
3) What is Corporate Social Responsibility?
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
15.8 CONCLUSION
The delivery of various goods and services has been one of the basic responsibilities of
the state as also an imperative in independent India for human development. In a country
like India, public service serves mostly the marginalised people of the society. The poor
have always depended on essential public services for their survival and for breaking
the vicious cycle of poverty. But the benefits of public service delivery could not reach
the poor as most of them lacked awareness about these services as also their inability
to articulate their grievances.
A number of good governance reforms have been attempted time and again with an aim
to create honest, efficient and result-oriented public service so that it impacts the lives
of the real beneficiaries in the true sense of the term. The concepts like good governance,
public-private partnership, decentralisation, citizens’ charter, right to information and e-
governance, has no doubt, changed the face and quality of public service delivery in
India. Once the public service guarantee act is in place, one is quite hopeful that public
service delivery in India will go a long way in ensuring better quality services to the
citizens.
217
Good Governance
Initiatives in India 15.9 GLOSSARY
TWINS : Twin Cities Network Services Project was implemented in Andhra Pradesh
which provides a variety of services at one stop to the citizens of Hyderabad and
Secunderabad, the twin cities with the combined population of four million. The
department functionaries interact with the citizens to deliver a variety of services like
payment of utility bills, issue of birth and death certificates, issue of driving licences, etc.
The centre handles 3000 transactions a day of which 80 per cent involves the payment
of utility bills. The project has been named E-Seva and has been extended to 18 other
locations through partnership with the private sector.
15.10 REFERENCES
Aiyar, Y. & Samji, S. (2012). Guaranteeing Good Governance: Understanding the
Effectiveness and Accountability Mechanisms: The NREGA Act Design, Process and
Impact. Retrieved from www.indiagovernance.gov.in/files/strengtheningpublic
accountability.
Bardhan, P. (2002). Decentralisation of Governance and Development. Journal of
Economic Perspectives. 16(4): 185-205.
Chadah, S. (2006). Right to Information Regime in India: A Critical Appraisal. The
Indian Journal of Public Administration.52(1): 1-17.
Chakrabarty, B. (2016). Corporate Social Responsibility. In Shivani Singh (ed.).,
Governance Issues and Challenges. New Delhi, India: Sage.
Flynn, N. (1990). Public Sector Management. Hemel Hempstead, Harvester, UK:
Wheatsheaf.
Gandhi, S. (2009). Right to Information – A Tool to Improve the Governance of
India. Retrieved from http://www.bcasonline.org.
Government of India. (2006). First Report on Right to Information: Master Key to
Good Governance. New Delhi, India: Second Administrative Reforms Commission.
Government of India. (2010). A Handbook for Designing and Implementing
SEVOTTAM Complaint: Citizen’s/Client’s Charter & Grievance Redress
Mechanism. New Delhi, India: Department of Administrative Reforms and Public
Grievances.
Government of India. (2011). The Right of Citizens for Time bound Delivery of Goods
and Services and Redressal of their Grievances Bill, Lok Sabha No.131. Retrieved
from https://www.prsindia.org/administrator/uploads/media/Citizen%20charter/
Right%20of%20Citizens%20for%20Time%20Bound%20Delivery%20of%20Goods
%20and%20Services%20and%20Redressal%20of%20their%20Grievances%
20Bil,%202011.pdf
Islam, Md. N. (2007). Decentralised Governance in India: Yesterday, Today and
Tomorrow. In M.R.Biju, Decentralisation An Indian Experience. Jaipur, India:
National Publishing House.
Good Governance. New Delhi, India: Deep and Deep Publications.
Kothari, R. (1988). State Against Democracy: in Search of Human Governance.
218 New Delhi, India: Ajanta.
Mullen, R.D. (2012). Decentralisation, Local Governance, and Social Wellbeing Public Service
in India. London, UK: Routledge. Guarantee Act,
Nath, S. (2016). Significance of e-Governance. In Alka Dhameja and Sweta Mishra Right to Information,
(eds.), Public Administration, Approaches and Applications. New Delhi: Pearson. Corporate Social
Responsibility
Government of India. (2009). Social Sector Service Delivery: Good Practices
Resource Book. New Delhi, India: Planning Commission.
Roy, J. G. (2003). Right to Information: A Key to Accountable and Transparent
Administration. In Alka Dhameja (ed.), Contemporary Debates in Public
Administration. New Delhi, India: Prentice Hall of India.
Roy, J. G. (2006). Right to Information Initiatives and Impact. Occasional Paper.
New Delhi, India: Indian Institute of Public Administration.
Saxena, A. (2005). E-Governance and Good Governance: The Indian Context. Indian
Journal of Political Science. 66(3): 13-328.
Singh, S.K. & Singh, A.W. (eds.). (2018). Corporate social Responsibility in India:
Emerging Issues and Challenges. New Delhi, India: Serials Publications.
Sood, A. & Arora, B. (2006). The Political Economy of Corporate Responsibility in
India. Paper no. 18. Geneva, Switzeland: United Nations Research Institute for Social
Development.
Trapnell, S.E. (2014). Right to Information: Case Studies on Implementation.
Washington DC., USA: The World Bank.

EXERCISES
• Public service includes all the goods and services, including functions,
obligations, responsibilities or duties to be provided by a public authority.
• These are primarily non-commercial in nature and are mainly funded by
taxation.
• It is a medium of common interface between people and government.
• Issuance of birth, caste, marriage certificate, voters identity card, ration card
etc., are public services.
• Decentralisation
• Citizen’s awareness and demand for better public service
• Community mobilisation
• Technology
219
Good Governance 3) Your answer should include the following points:
Initiatives in India
• Public Service Guarantee Act also known as Right to Public Service in some
states, provides for legislation and statutory laws that guarantee time bound
delivery of services by the government to the citizens.
• It provides for mechanism for punishing errant public servants who fail to
provide service stipulated under the statute, within stipulated time .
• The Act implemented by nearly twenty states attempts to provide standard,
quality services in a timely and transparent manner.
• Citizen’s Charter is a rights–based approach to public service delivery.
• It is a tool for improving public service delivery system based on certain
standards, quality and time frame.
• It gives importance to standards, information and openness, choice and
consultation, courtesy and helpfulness to be adhered to in public service
delivery.
• Right to Information is an instrument to ensure openness, transparency and
accountability in government process.
• Information given to citizens enables their participation in governance.
• It is a tool of people’s empowerment.
• Corporate Social Responsibility (CSR) is an obligation on the part of
corporates to invest in socio-economic activities that can lead to societal
betterment.
• It makes corporates integrate social and business operations and involve
stakeholders in their activities.
220
SUGGESTED READINGS
Bhattacharya, M. (2011), New Horizons of Public Administration. New Delhi, India:
Chakrabarty, B. & Bhattacharya, M. (Eds.). (2008), The Governance Discourse: A
Reader. New Delhi, India: Oxford University Press.
Chakrabarty, B. & Chand, P. (2012). Public Administration in a Globalizing World:
New Delhi, India: Sage Publications.
Chakrabarty, B. & Chand, P. (2017). Public Administration from Government to
Governance. Hyderabad, India: Orient Black Swan.
Dhameja, A. & Mishra, S. (Eds). (2016). Public Administration: Approaches and
Applications. New Delhi, India. Pearson.
Medury, U. (2010). Public Administration in the Globalisation Era. The New Public
Management Perspective. New Delhi, India: Orient Black Swan.
Mishra, S.N. & Mishra, S. (2002). Decentralized Governance. New Delhi, India:
Shipra Publications.
Palanithurai, G. (2009). Decentralisation in India Critical Issues from the Field.
New Delhi, India: Concept Publishing Company.
Sahni, P. & Medury, U. (Eds). (2003). Governance for Development Issues and
Strategies. New Delhi, India: Prentice Hall.
Sapru, R.K. & Sapru, Y.S. (2014). Good Governance through E-Governance. New
Delhi, India: Sage Publications.
221

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PRINT PRODUCTION COVER DESIGN

BLOCK 1 GOVERNMENT AND GOVERNANCE: CONCEPTS

Unit 1 Globalisation: Role of State, Market and Civil Society 13

Unit 2 Governance: Conceptual Dimensions 24

Unit 3 Governance Framework in India 37

Unit 4 Stakeholders in Governance 55

BLOCK 2 GOVERNANCE AND DEVELOPMENT

Unit 5 Changing Dimensions of Development 69

Unit 6 Strengthening Democracy through Governance 83

BLOCK 3 GOVERNANCE: EMERGING PERSPECTIVES

Unit 7 Governance Challenges and Changing Role of Bureaucracy 97

Unit 8 Information and Communication Technology and Governance 109

Unit 9 Role of Media 123

Unit 10 Corporate Governance 134

Unit 11 Sustainable Human Development 147

Unit 12 Transparency and Accountability 157

BLOCK 4 LOCAL GOVERNANCE

Unit 13 Decentralisation and Local Governance 173

Unit 14 Inclusive and Participative Governance 190

BLOCK 5 GOOD GOVERNANCE INITIATIVES IN INDIA

Unit 15 Public Service Guarantee Act, Citizen’s Charter, Right to

Suggested Readings 221

* Contributed by Ms.Sanghamitra Nath, Assistant Professor, Bajkul Milani Mahavidyalaya,

1.3 GLOBALISATION: GENESIS

1.4 PERSPECTIVES ON GLOBALISATION

1.6 GLOBALISATION AND THE MARKET

1.7 GLOBALISATION AND THE CIVIL SOCIETY

1.11 ANSWERS TO CHECK YOUR PROGRESS

2.3 GOVERNANCE: CONTEXTUAL USES

2.4 FORMS OF GOVERNANCE

2.9 ANSWERS TO CHECK YOUR PROGRESS

3.3 Operational Framework of Governance: Role of Non-state Actors

3.4 Governance Indicators

3.2 OPERATIONAL FRAMEWORK OF

3.2.1 Constitutional Supremacy

3.2.3 Role of Political Executive

3.2.4 Role of Administrative Executive

3.2.5 State and Local Governance

3.2.6 Role of Judiciary

Note: i) Use the space given below for your answers.

2) What is the role of Parliament in representative democracy?

3) Describe the various tools of accountability.

4) Highlight the role of Judiciary in India.

3.3 OPERATIONAL FRAMEWORK OF

3.3.2 Role of Civil Society

3.4 GOVERNANCE INDICATORS

3.4.1 Voice and Accountability

3.4.2 Political Stability and Absence of Violence

3.4.3 Government Effectiveness

3.4.4 Regulatory Quality

3.4.5 Rule of Law

3.4.6 Control of Corruption

3.8 ANSWERS TO CHECK YOUR PROGRESS

4.3 STAKEHOLDER THEORY

4.4 STAKEHOLDERS IN GOVERNANCE PROCESS

4.5 SIGNIFICANCE OF STAKEHOLDERS IN THE

4.6 STAKEHOLDER INVOLVEMENT IN