Enabling a Paradigm Shift in Social Protection through BECKN

Delivery of social protection measures is a big challenge to any government; especially in a developing country.  Social protection program has three key components.

The first component is how we can uniquely identify the beneficiary and enrol them into the program. Digital Id revolutionised this part. The pandemic demonstrated that the countries which have established a foundation of digital id can manage the outreach much better than a country that is lacking in this area. Countries which have gone one step forward and have established a somewhat comprehensive registry of uniquely identified deserving beneficiaries did even better.

The second component is the payment system. Building on the foundation of Digital ID, in India we have introduced Unified Payment Interface (UPI) which is a completely open and interoperable protocol that has transformed the payment system.  As of now, UPI handles more than 1.25 billion transactions per month which is more than four times the volume of transactions handled by the Credit / Debit card network every month. We are now in the process of building a next layer on top of it to provide a digital voucher using completely open protocol. This could be a straightforward money voucher, or it could be a voucher that is meant for a specific product if the government wants to ensure that the benefits are provided in kind with respect to certain goods and services.

The third element is the market including the supply chain, and it is still a challenge. That is why the governments are forced to run the whole physical operation of procurement, supply chain management and retail shops. Often very very inefficiently.

BECKN foundation established by Nanden Nilekani has come out with a brilliant solution to this problem. It has published and open protocol specification which can completely revolutionize the marketplace.

What is the challenge it is attempting to solve?  Digital marketplace is a big boon; but the market is still heavily siloed.  It is increasingly becoming walled gardens of few players. Take for example retail. There are  a few large aggregators like amazon/ big basket/ Alibaba They are doing a great job; but, they are walled gardens. Same is the case with delivery or mobility or health service. It is a pain for the consumer who must look at multiple apps to make an ideal choice. This limits the choice and makes markets inefficient.

The service providers are also constrained. Unless you are a part of the aggregator platform you are at a big disadvantage in terms of discoverability.

BECKN protocol addresses this issue for both the service provider and the consumer. It is a paradigm shift; we are making internet, small business friendly and not small business internet friendly.

A simple adapter to the payment system or inventory management system based on BECKN protocol can provide any service provider equal access to the market whether he is big or small. Any frontend app which is comfortable to the consumer; could help him or her to access all the options seamlessly if it has a BECKN based connector to the network. It may be WhatsApp may be telegraph may be Google map or a special app provided by the government.

These mean simplification of service delivery [e.g. one stop payment, personalized workflows combining multiple services, granular view of events as and when they occur], freedom of choice for consumers, stitching of suppliers to fulfil a comprehensive service, much better (network driven) view of consumer demand and ability of suppliers to fulfil that demand

Such a marketplace has also the potential for bringing dramatic innovations in terms of option to the beneficiary. Once such an Open Benefit Delivery Network is in place, governments can focus on scheme design and enrolling the beneficiaries and reaching him the subsidy / financial assistance . Then leave the markets to make the best offer.

The beauty of this solution is that we are not talking about huge investment in a new platform or software solution. The service providers at a very low cost can be enabled to plug into the market. We are democratising the market just like HTTP democratised the internet. This is not a wishful thinking. We are helping the first solution built around BECKN to go live in India next month and few more are on the way.

It is time to give this a serious try and be an innovator to solve fundamental problems so that we can manage emergencies like the pandemic much better.

“He who is best prepared can best serve his moment of inspiration and desperation.” ― Samuel Taylor Coleridge

Uber Case and Public Policy Thoughts

A few years ago public transport in Delhi (as in most parts of India) was pathetic. The public transport buses were unsafe; especially for a girl who can be reasonably sure of being groped (at the least) if she dares to get into a city transport bus; especially alone. You had to rely on the local taxi stands to hire a taxi and they may not have a taxi available when you want. When you hail a taxi the driver would ask you where you are going. If your destination did not suit him, he would refuse to take you. When a taxi driver deigned to take you, he would refuse paying by the meter and make quote you a fare which is often 1.5 to 2 times the actual fair. When he used the meter, it would be a doctored one or he would take the most circuitous route to your destination if you were not familiar with the city. When you went shopping or visiting a friend there was very high uncertainty about getting a safe transport back. The auto rickshaw drivers also behaved the same fashion (They do that even today) .

When you get a taxi you had no idea who the driver was or what his name was. Often he brought along “his friend” along with him. If you asked him who that person was or didn't want this 'friend' to be in the car for your journey, the driver would get upset and refuse to take you. As you were desperate and had no other option you put up with these dramas. There was no authority with whom you could give a complaint. (You won't even consider complaining to the police) There have been many instances of such drivers misbehaving with passengers; especially ladies. Many of the regular black and yellow taxis still continue with such behaviour. A Canadian friend who has been visiting India for about two months told me that whenever she was travelling without an Indian friend with her, the driver refused accepting fare as per the meter.

The Metro has made a big difference in Delhi. In most other cities the metros are non-existent or limited. Then the radio taxis happened. Situation started to improve. With more and more operators joining the fray there was more competition and each of them added more features and services. Call centre support for cab booking and customer support, mobile apps, GPS tracking, online receipt, online payment and so on. With the improved supply you could be sure of getting a cab when you want. The service levels have significantly improved, there is more reliability and the quality and comfort of the vehicles too have improved. Although per kilometer charge is higher for these radio taxis, the total bill ended up being lower as the meters are not doctored and the driver is not taking circuitous routes. Even today the pre-paid cool cab charges from airport to my home in Mumbai ends up being more than the radio taxi charges including their service charge of Rs 60. With registered drivers of radio taxis who are also given some training and monitored to some extent customers feel safer than before. There had been hardly any major complaints about the behaviour of these drivers. I am not saying that everything is perfect. There are still areas for improvement.

Then the disaster hit. One unscrupulous driver has molested an unfortunate lady. It is an absolutely dastardly act. No doubt that the driver has to be punished suitably. We also have to improve the systems and processes to prevent such occurrences. But the knee-jerk reactions of administrative decision makers once again demonstrates the pathetic state of decision making founded on emotions and populism. This is not the first instance of ridiculous action by regulators and law enforcement agencies.

The Police has acted fast and has apprehended the culprit quite fast. This is commendable. DCP south has been giving twitter update on the investigation which is appreciable.  But one of the first policy decisions on this taken by the administration is banning Uber and similar services. Some states have followed suit in extending this ban to their states. By doing that, we have created a shortage in the market and this has opened avenues for un-scrupulous behaviour by cabbies. I am a regular user of taxis and I experience it. Many of my friends also share the same feeling.

Are the operations of Uber and OLA so dangerous that we need to ban it immediately? Not at all.

Let us look at this a little deeper. Uber had a system of driver verification. They relied on a document that was submitted by the driver. It appears that the character certificate that he submitted was forged and not issued by the Additional DCP as claimed in the certificate. Uber should have had a process of undertaking much more serious background check of its drivers and verification of the veracity of the documents that it receives. These service providers could also have better tracking systems. It will be easier for law enforcers and regulators to demand and monitor such good practices on organised entities like the radio taxi operators than enforcing such good practices by each cabby. By outright ban of these entities we are not reducing the risk rather increasing it.

A case has also been charged against Uber for cheating as they failed to take necessary measures to live up to the promises they have made.

It has been also reported that the same driver used forged certificate to get a permit to drive his cab in the capital. Are we taking action against the department or the officer for dereliction of duty in issuing this permit without verifying the documents presented? With commercial taxi licenses, people like him manage based on such fake documents, (which is not verified at time of issue of taxi permit) if these drivers operate as an independent taxi operator and commit such crimes, tracking them would be even more difficult and this could turn out to be even more dangerous.

When we prescribe more documents and verification processes, we also have to establish convenient and speedy mechanisms to issue these verification for genuine applicants. The sad thing is that it is a herculean task to get any kind of clearance documents and validation of the clearances from government departments unless you have “connections” or willing to pay “speed money” directly or through touts. This makes the whole process a bottleneck and avenue for corruption and encourages bypassing of such verification. Therefore we also have to establish processes for speedy verification and validation processes. For example the Police can consider making online verification of certificates issued by it. Further, the Police also could make it possible to get verification done in an easy and fair manner. It could also have exception handling mechanism to take into account practical problems. For example I came to Delhi from Mumbai and took up a rented apartment and I wanted a police verification done on my Proof of Address. I was going from pillar to post and I had to take help of a senior bureaucrat who is a friend to help me. Imagine the plight of an ordinary person who comes to a metro in search of a job. May be wider acceptance of Aadhaar Card would address this issue to some degree.

We see such knee jerk behaviour very often. Let me quote some more examples. Remember the A 320 air crash in Bangalore soon after Indian Airlines bought these aircrafts? Our reaction has been to ground the whole fleet of 320 for a very long period resulting in severe loss to the airlines. We are the only country in the world which did that.

When there was complaint against the overcharging by some Micro Finance intermediaries the reaction has been to ban such companies instead of establishing good practices and enforcing the same. When we do this the only option left to the poor customers is to fall into the clutches of money lenders with usurious interest rates.

When there is complaint against ill treatment or malpractices by some NGO we have instances of the whole community of NGOs harassed and treated shabbily resulting in genuine players avoiding such initiatives.

The government instead of improving its services, taking ownership of its duties and being accountable for its mistake place the whole blame on the private service providers. Swaminathan Anklesiaria Aiyer's comment regarding the Coal Scam in TOI is quite relevant in this context.  “The Government was found guilty of wrongful coal allocations, but suffered no penalty. Instead mine operators not found guilty of anything had to pay huge fines to the guilty government. .. Investors are increasingly apprehensive that Indian Institutions no longer provide stable decisions or secure property rights”

The regulator and the law enforcer have to keep in mind that it has a balancing act to do. On one side it should establish good practices and enforce them. It should prevent monopoly behaviour, it should ensure good practices are followed for the safety, security and convenience of the user. On the other hand they have to keep in mind that regulations and regulating agencies also have a development role to play; helping and supporting service providers to establish good practices and to evolve and thrive rectifying their mistakes.

It should be practical in managing the evolution of the regulation and market practices. As Judge Learned Hand one of the very respected American judges observed “Justice is the tolerable accommodation of the conflicting interests of society, and I don't believe there is any royal road to attain such accommodation concretely.”

If we make rules that cannot be practically followed, then we will not have decent service providers but we will be at the mercy of shady operators who operates outside the law. When mistakes and failures do happen, the reaction should not swing to the extreme. If the error is technical in nature and does not reflect willful and repeated irresponsible behaviour that can potentially cause disaster to the community then the penalty should commensurate with the mistake and solutions should be implementable. We need to help these entities to improve and not kill them. What often happens is that the regulators go heavy on technical errors  making it difficult for many genuine service providers and leaving the ground open to the fringe players who act outside the regulated market or without any service standards at all. Very often these shady operators make these regulators to clear way for them consciously or unconsciously by eliminating decent operators. 

"We live in a stage of politics, where legislators seem to regard the passage of laws as much more important than the results of their enforcement." - William Howard Taft

Reforms in Tax - A taxpayer’s wish list

[Excerpts of my speech at Conference on India 2.0 as a part of 37th SKOCH Summit at India Habitat Center, New Delhi September 2014] 

 “The only two things certain in life are taxes and death”. Why was taxes compared with morbidity and death and taxmen considered a villain? Because tax was considered legal extortion. The expected role of taxman was to make life difficult for those who don’t comply. The tax laws were complex and complicated that even genuine taxpayers ended up making mistakes. Instead of being an enabler catching these mistakes was the prime focus of the department. Complexity of the tax law was a aid in this enforcement by terror and a tool for the corrupt.

The modern tax department is attempting a shift in its focus. The shift is towards being an enabler, making it easy and convenient for the genuine taxpayer to comply.

This is one of the tectonic shifts that are happening in the environment for the tax administration. There are more. The quantum leap in the volume of trade and commerce in the economy is resulting in exponential growth in taxpayers and taxable transactions. The globalisation leading increased international trade and e-commerce are adding to complexities to tax administration. In India the impending transition to a nationwide transition to Goods & Service Tax (GST) is another big shift expected in the near future. (Though this near future shift has been eluding us for years, we hope it will fructify this time)

In this increasing complexity and exploding volume the challenges are manifold for the tax administration especially with shift in their focus and the attendant reforms it is attempting.

Let us take a look at some of the expectations the taxpayer have with respect to these reforms.

Simple, Up-to-date, consistent information online

To begin with the taxpayer expects simplification of laws which are easy to understand and comply with limited exception and a nationwide standardisation. We also expect comprehensive information available online. Today many of the tax administrations in our country have web portals and have made extensive information available online. But they often come with a caveat along the following lines. “The department does not claim this to be up-to-date or comprehensive. The taxpayer is expected to keep himself abreast of all latest notifications and amendments and the department is not responsible for any fashion for any error and omission in the information available in this site”

We need to go forward in our information dissemination. We need you to guarantee that “what is not published on our portal does not exist” I am not suggesting a utopian model. Many regulators and law enforcement bodies in the world have already reached this level of sophistication.

Will it be possible to publish your interpretation of confusing provisions very clearly? In this manner it would also be consistent in its dealing with the taxpayers across the country.  It could help in reducing the rent seeking behaviour of many assessing officers who attempt to interpret for their convenience.

Don’t ask for same information again and again

Various tax departments in the country ask the taxpayers same financial information multiple times. Can you establish a mechanism to collect financial information from the taxpayers once and share the same among them as needed? Only in case in which it needs additional information for specific investigative purpose it should contact the taxpayer again to provide the same.

Can we think about standardisation of data format?

Different tax authorities today specify different data formats and technology specific forms to submit the data. Could you consider establishing a technology agnostic data format like XBRL for collection of data? This would also require a standard taxonomy being developed for all financial reporting for various tax departments if not for all other regulators who require the same financial information.

Avoid calling me in person and when you call please don’t make me wait

Can you consider establishing processes that could avoid physical visits for routine matters? Tax payers should be able to interact with the officers over phone or mail for routine matters. Even when they are required to visit for some clarification they should be given advance intimation of the documents and information they have to bring and should give them appointment to and adhere to the agreed time and avoid making them wait.  

Can I pay tax from my account in my bank?

In this day and age of electronic connectivity can you allow me to pay all my taxes from my account of choice instead of asking me to open accounts in different banks by different tax authorities

What I am hoping are not impossible to be met. But it needs a change in mind-set. We can hope that we will reach there one day

To make a crooked stick straight, we need to bend it the contrary way. - Michel Montaigne

Digital India 2.0 Hoping for the best

[Excerpts of my speech at Conference on Digital India as a part of 37th SKOCH Summit at India Habitat Center, New Delhi September 2014]

If somebody asks me my opinion about the Indian Movie Industry my reply would be; “It is big and thriving, some of its productions are world class, exciting and memorable. But it has also created a lot of crap.”  My reply would be the same if anybody asks for my opinion on e-Governance in India.

Why do I say so? Let me give two metrics in support of my statement. Firstly as per DeiTY tracking system for electronic transactions we have had just about 2 billion electronic transactions in 2013 and in 2013 this number has already reached this number in the first 8 months. Impressing in a way. But for country with more than a billion population and internet penetration of 100 million (which itself is quite low and is an expression of poor internet infrastructure  and not enough relevant and convenient service offerings compared to 8000 million mobile phones) it is 20 an average of 20 transaction per month per person. When we consider that it covers both central and state services including online utility payments, it is not something to shout from the rooftops.

Secondly, let us take a look at the eGov Development Index (EGDI) of UN which it publishes every year. In the last few years India’s ranking has been hovering in the range of 110-120. In spite of India being a powerhouse in the world of Information Technology, we are so low in the world ranking of EGDI. We have even managed a drop in our ranking from 113 in 2008 to 118 in 2014. On the other hand South Korea holds top rank for past many years.

It is in this context that we should look at the Digital India 2.0 Program that has been announced recently. It has all the Right Intentions, Great Ideas and Enough Resource Allocation. But then, Is it much different from the NEGP of yesteryears?. If we look at NEGP, it also had right intentions, right ideas and enough resources when it was launched. But then why did it fail deliver what it should? The fundamental problem was in the “Implementation”.  Let us take a look at some key learning from our experience of yesteryears. The weakness was in the foundation itself of most of the projects; which includes stable citizen focus, leadership, procurement and contracting strategy, continuous improvements and business models. Let us go a little deeper.

Most of the e-Gov initiatives are “transformational Projects” and not automation of the existing stable processes. Such transformational projects would require a re-look at the existing processes and undertake a re-engineering of the processes with a citizen focus and taking full advantage of what technology can offer. When I say citizen focus it means that the workflow and processes should attempt to make it easy and convenient for the citizen to access the services online. When he asks for a service from one government department he should not be asked to get a document/ certificate from another government department. The departmental systems should be able to talk to the other departmental systems electronically to source/ verify information available with the latter. This in addition to facility for online application could significantly reduce multiple interactions that the citizens have to make with the government departments and the related rent seeking and harassment.

One of the challenges in integrating the systems of different departmenst was the absence of a mechanism for uniquely identifying a person. Now that penetration of UID in India has reached significant levels, this problem has nearly been solved. Therefore, it is important for every departmental automation project to incorporate UID tracking of beneficiaries to the extent possible.

Any transformational project will succeed only if there is a stable and visionary leadership; especially during the conceptualisation and roll-out. Whenever government managed to place such people in the leadership roles the projects benefited. In many cases the selection and transfer policies of the government does not take this into account at all. This means poor choice of mission leaders and or key people frequently getting transferred; especially in critical stages of the project. Such changes not just affect the momentum of the project but are also counterproductive. One of the key reasons of  failure of many e-Gove projects is this.

Establishment of transformational project cannot be handled like an event management. It is an evolutionary process; a journey and not a destination.  But normally many government departments treat all projects alike an event management. There would be a study of the current processes, some kind of process re-engineering, development of specification for developing the software application , choosing of technology solution, getting the solution developed/ customised and rolling out the solution. During this process there we seed involvement of senior officers.

Once it is rolled out it is left to the operating staff to take care. But what is needed for success is continuous improvements. There should be continuous tracking and refinement of the processes, to strengthen validations, communication and clarification for the users on the basis of feedback from the field. This review and refinement should be led by the senior officers responsible for the mission. Only then would it reach adoption and acceptance of a broader cross section of clients. Often the feedback from the field is not given due importance. By the time the normal governmental process gets the approvals for these amendments it would be too late. So much negative image would have been created that adoption would have really suffered. Many users would have written this off. If we take the few projects that has demonstrated significant acceptance like Tax Information Network of CBDT, MCA 21 of Ministry of Company Affairs, Passport Seva Project of Ministry of External Affairs UIDAI etc were those which had taken this philosophy of continuous improvement seriously.

In addition to these efforts for continuous information there is also a need for education and handholding of the users so that they get used to the new system and make fewer mistakes. Even in this dimension many projects do badly.

The other major area of failure is in the procurement and contracting process of the government. Many departments select the lowest cost bidder referred to as L1. This often significantly affects the quality; especially in cases of services because it is difficult to quantify quality and monitor it. Some departments attempted Quality Cum Cost Based Selection (QCBS). But very often most of the bidders are given technical scores which are very close to each other. This is often because the evaluators would like to play safe. In this case, the bid again becomes L1.

In the selection process it is important to have experts in the field who compliment the departmental officials who may often do not have sufficient subject matter expertise. Many departments do adopt SME. But the SMEs are often selected often based on their willingness to give free/ low cost service and readiness to say yes and not on the basis of the quality of expertise. We can’t expect much value addition in such cases.

Then some departments started experimenting with outcome oriented contracts with service providers. It is a brilliant idea in theory. Even in this case most of the departments mess up. Let us see how. To make outcome oriented project a success, there are two critical pre-conditions. (i) There should be clear articulation and agreement on specific outcomes and milestones. (ii) Achievement of outcome requires that both the client and the service provider play their role on an agreed upon schedule.

But in case of most government projects both the above preconditions are not met. Firstly the outcomes are not clearly articulated. Often they are described very broadly which could be interpreted in different ways. Such vague definitions lead to so much scope creep that the service providers lose significantly. Secondly the departments fail so badly in meeting their part of the deal. Often there is significant delay / failure in giving timely approvals, giving input by users, providing feedback on proposed solutions, signing off on specifications and so on. This lead to significant delay, scope creep and increase in required effort. Taking both these together for most of the service providers government projects are loss leaders. Because of this, many good and reputed IT service providers are very cagey in bidding for government project and keep away from government projects in most cases.

It is evident that unless the Digital India 2.0 addresses these above implementation issues it will not be able to do any better. It can be seen from the above that n normal government processes are not capable of handling transformational projects. It has never been designed to support innovation or flexibility or agility that are essential ingredients for successful implementation of transformational projects.

One obvious solution such limitation is to carve these as independent projects and hand these over to a Special Purpose Vehicle (SPV) which has been suitably structured with sufficient flexibility to take nimble decisions and relevant mid-course corrections when needed. It is also important to have the right kind of leadership, team with relevant expertise and experience and also a supervisory body that recognizes the different approach needed for these SPVs to succeed. Especially the leadership vision and courage to take decisions will be very critical. We have seen examples of such successes. But unfortunately we see that even when SPVs are established the bureaucracy involved in the establishing these SPVs build-in structural limitations that will restrict/ prevent the nimbleness of the organisation and or install unimaginative bureaucrats to its leadership which completely vitiates the ability of these SPVS to make any significant difference.

I hope the focus of the new PMO has on implementation will galvanise the various departments towards better performance.

Related Reading

If wishes were horses

“Exogenous and blind interpretation of statutes, topped with hustled implementation of laws leads only to more turmoil and less productivity.”  ― Henrietta Newton Martin

Don’t do me a favor; Grant me the right to demand

Depository’s act of India provided for one of the highest level of service level commitments to the account holder. It required that the depository should indemnify any losses to the investors resulting out of negligence from its part or from the part of its agents namely depository participants. Thus it gave the account holders the right to demand safety of their investment. At the time of enactment of this act, when about 25% of all settlement in the stock market used to have problems associated with paper and there were innumerable instances of investors losing their investment on account of frauds relating to share certificate, this stringent service level requirement appeared utopian and impossible to sustain.

This put enormous pressure on the new depository that was set up, registrars who were hitherto not used to respecting investor’s right and the brokers and bankers who were used to service on good effort basis. This Damocles Sword ensured that systems, processes, checks, balances and audit trail are built and maintained to meet this service level. In the last 15 years since first depository was established, the market intermediaries managed to live up to this service level with practically insignificant instances of breaches which necessitated the service providers to pay up.

What did the magic was the right given by the act of parliament to demand a certain service level without being felt as if we are being offered a favour. In the recent past the government has extended this principle in a number of areas; right to information, right to food, right to education and right to electronic service delivery.

All these are attempts to empower the citizen. Right to Information which was the first of such initiatives has been there for some time. The results have been very encouraging. As more people get to be aware of this right and learn to exercise it, the pressure for performance will build up. It was heartening to see that even children are learning to use this powerful tool. I was impressed by the Class 8 student Kavana Kumar from Karnataka who used this tool to get the garbage dump next her school cleaned by the municipality. These may be anecdotal evidence as of now. But these have potential to grow to stronger tools. Similarly when we give the citizen the right to demand and not stand in supplication for what is due for him we are triggering a paradigm shift.

Instead of being armchair critics who bemoan the degeneration of the society and the level of corruption with little compunction in using the same means to push our own agenda, we need to learn how to use these tools to make a difference. We should also encourage and support enactment of more such laws placing rights into hands of the citizen/consumer, to bring in more service orientation; especially from the people in positions of power both in private and in public sector. Then may be we will learn the meaning of "service with a smile" if not a grimace:-)


Safeguarding the rights of others is the most noble and beautiful end of a human being.” Kahil Gibran

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Matter of Right

Government of India had put out a draft bill on Electronic Service Delivery (ESD) for public comments. The key features of this scheme are

i) Every department of the government should mandatorily make its service to citizen available through electronic mode.

ii) This ESD should be made operational within five years of enactment of this bill. Extension for another three years will be allowed if there are valid reasons for this delay.

iii) Within six months of enactnment of this bill, every department should publish the list of services which will come within the ESD commitment.

iv) As in the case of the Right to Information Act (RTI), the proposed ESD act provides for Commissions at center and state level to ensure that the expectation under the act is delivered and failure is met with punitive action.

This right for ESD proposed to be guaranteed under an act of the parliament can be seen as maturing of various e-Governance initiatives that the government has been taking in a variety of fields for more than a decade. India is considered to be a powerhouse in the field of ICT and we practically run the back-office operations for the whole world. With this, this should be an easy target. But is it?

World e-Government ranking undertaken by United Nations gives India a rank of 119 out of 192 countries it surveyed in 2010. As my friend Neel pointed out, “How come even after more than a decade of e-Gov initiatives at the highest level, we still want six months for all departments to publish the list of services they can make available electronically and we need five to eight years for this to be fructify?” Reasons are many; but the following appear to be the most fundamental of them.

i) Many of the e-Gov initiatives are computerization of existing operations of the departments, heavily accented to MIS reports for internal consumption and upword reporting.

ii) Processes were not fine-tuned with a citizen focus. Committed service levels or actual performance levels were seldom benchmarked or published

iii) Solution implementation was more activity based than outcome based. Often vendors saw their role as software developers or as hardware suppliers and not as service providers.

iv) More attention was given to the automation of front end without getting the back-end streamlined and automated. In many instances sufficient consideration was not given to building electronic repository of the records and masters or ensuring high data quality which are the foundation blocks for electronic service delivery.

This problem is not unique to government computerization efforts. In many private sector companies also the computerization took this route. To begin with computer was a perk and status symbol for the boss. Then it became a department initiative. It was much later an integrated corporate wide strategy got evolved in progressive companies.

Similarly, in government initially it started as a privilege for the big bosses. Then it became a department initiative left to the interest of the head of the department. Integrated service delivery is still a dream. (read on "India gets a CIO- Part II")

Now when we attempt to make electronic service delivery a matter of right we have to give more attention to the lacuna highlighted above else we will not be able to live up to our promise or the expectation of our citizens and the commissioners will end up inundated with grievances.

Picard: Come back! Make a difference!
Kirk: I take it the odds are against us and the situation’s grim.
Picard: You could say that.
Kirk: If Spock were here, he’d say that we are irrational, illlogical human beings for going on a mission like this... Sounds like fun!

-Star Trek: Generations
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Even Elephants Can Dance

My friend Zakir Thomas is a revenue service officer; but he is more comfortable in developmental work than being an enforcement officer. At present he is the project director for Open Source Drug Discovery (OSDD) a unique initiative by Centre for Scientific and Industrial Research (CSIR) and is personally mentored by its DG, Dr. Samir Brahmachari.

Though concept of Opens Source development has been in practice for a long time (though not in this name), it has become quite popular with the advent of internet, more so with the availability of collaboration tools (now referred to as web 2.0) which has enabled communities across the globe to work on solutions to complex problems.

Internet itself is product of such collaboration and Linux, the Operating System, is one of the most known open sources software. There are hundreds and thousands of such initiatives out there today in a variety of fields. Sequencing of human genome can be seen outcome of such a participative effort. However, in fields like Pharma where the cost of research, testing and regulatory approval can be phenomenal, collaboration is considered suicidal. On account of such high cost Pharma companies have least interest in working on development of drugs for ailments which particularly affect the poor (TB, Malaria etc) or which affect few people are very limited. They are keener on development of drugs for lifestyle ailments like Blood Pressure and Coronary Diseases

It is in this area the model of open source development is attempting to play a role. Today there are only few such initiatives in the world like Tropical Drug Initiative (Participants from University of California Berkeley, Dukes University, University of Sydney), Institute of One World Health, TB Alliance etc.

OSDD initiated by CSIR is an initiative attempting to provide affordable health care to the developing world, presently focusing on development of drug for TB which today kills two people every three minutes in India. OSDD has taken of well with participation from about 4500 scientists/ students from 130 countries. It has completed mapping of TB bacteria genome a record time. It already has two molecules for TB in the pipeline. CSIR hopes that they will be able to bring out at least one drug for TB in the near future.

I asked Zac what has made this possible. “A few People with commitment and Tools that made collaboration possible” he replied. He introduced me to two fellow scientists who were with him then who is working from Institute of Genomics & Integrative Biology(IGIB). Sridher Sivasubbu is a PhD in fish genetics and Vinod Scaria a medical doctor who is equally comfortable with computers. Both of them are young and highly qualified to have picked up high paying jobs in private sector in India or abroad. But they have decided to dedicate at least few years of their life to this initiative. Their energy level, enthusiasm and commitment for bringing multidisciplinary skills through collaboration to develop better drug for TB is awe-inspiring.

There are more of such dedicated scientists across the labs who share this passion. Zac suggested that I read the book “Geek Nation” by Angela Saini in which she has dedicated an entire chapter (titled The impossible drug) on this collaborative effort of a number of committed professionals from multiple labs across India to find a cure for TB. (This book is worth reading as it gives an interesting perspective on the dream, hope and possibility of India becoming a scientific super power).

What OSDD has done is to make the platform available to for these professionals to collaborate among each other and with the best around the world who are willing to join. I hope that OSDD is able to build on this momentum and don’t get ossified to a white elephant when the pioneers move on.

It is a commendable achievement for a government institution to work on such revolutionary models. We see such islands of excellence in many parts of the government. What is unfortunate is that often there is no mechanism to sustain this momentum. When the pioneers move on there is no planned succession. Successors are not selected keeping in mind the requirement of such exceptional institutions; but following a process which is meant to manage routine operations. And that is the tragedy of governance we face often.

Elephants can dance; so long as we play the right music…

"It is the long history of humankind (and animal kind, too) those who learned to collaborate and improvise most effectively have prevailed." - Charles Darwin

Related Readings

Competitive Advantage - A case for blogs and wikis

If wishes were horses

Dare to Differ

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Taming the Corruption Tiger

Corruption (‘private gain at public expense’) has always been a matter of concern for the mankind since time immemorial. Many people love to eliminate this completely; but this is a disease which we may never be able to eradicate totally.

We see wide disparity in the level of corruption across the countries. Transparency international undertakes an annual survey and publishes Corruption Perception Index (CPI) of countries. No single country has ever got the perfect score of 10. Only five countries out of 182 get score above nine, 23 above seven and 47 above 5. India with a score of 3.3 has a rank of 87 which falls in the middle.

One of the interesting revelations of the CPI is the strong correlation between human development, economic progress and CPI. Is it that the economic progress reduces the incentive for corruption or the low corruption facilitates economic progress? It is both. There is a strong mutual dependency between economic progress and CPI. Chile is one of the few countries  that has managed to move from being a developing country to an almost developed country in the last few decades. Chile is also one of the very few developing countries with a high CPI score (7.2) giving it a rank of 21, which a level USA.

Corruption is a part of human nature. What can control it are the mechanisms in place to restrict it. The legal infrastructure and the strength of enforcement determine how easy it is to get away with corruption. (I don’t deny the influence of culture in corruption. But I strongly believe that this culture of corruption is not hardwired into the brain of certain class of people making them more corruption prone. Some people may find it easy in comparison to others to behave with less civic sense and in more socially unacceptable manner. Strong enforcement and an environment that is conducive can limit this cultural bias and bring about better discipline. Denmark today with a CPI score of 9.3 is the world topper. Remember the famous quote from Hamlet "there’s something rotten in the state of Denmark". Another example from home is the extent of cleanliness and efficiency Delhi metro has managed in its trains and stations which is significantly of higher degree compared to any other public utilities)

We in India have been struggling to manage this high level of corruption. The Anti Defection Law and the Right to Information (RTI) Act definitely help in this direction. The Jan Lokpal Bill has been struggling to get acceptance by the parliament for more than four decades (The recent high profile initiative by Anna Hazare of Civil Society was an attempt to force the government to take a definite action on this) We still don’t have a proper whistle blower protection act.

Legal enablement is definitely a necessary requirement; but, it is not a sufficient condition. Strong Judiciary can ensure justice; but, today we have a serious problem of a large number of pending cases blocking the judicial machinery. “Justice thus delayed is Justice denied”. RTI is an excellent tool to bring about transparency. But the resource constraints can prevent this from scaling up.

When we look at the disparity in the level of corruption across countries, the major differentiator is the extent of corruption and inefficiencies in the areas that affect day-to-day life of the citizens, whether it is to get some clearance, approval or certificate or to run their business. Corruption in high places and in areas with high stakes is the most difficult to control anywhere in the world. But if we manage the former, 90% of the irritant value may be removed for the society as a whole. When we take care of this petty corruption, it may also help to bring to open high-end corruption because  the dealing hands have all the incentive to blow whistle as they do not benefit from corruption anymore and thus no more are they partners in crime.

Today the progress in information Technology provides us with significant opportunities to improve governance processes. IT enabled Governance (IteG) can help improve process efficiency, it can help in bringing about better transparency, it can measure performance efficiency and publish the same, it can provide analytical support for risk management, it can reduce leakage and so on which are all elements that can bring about improvement in governance and reduce opportunities for corruption.

It will also help easy outsourcing of service delivery without loss of control enabling government to focus on policy making and policy administration. The income Tax Department’s outsourcing of PAN issuance, the Ministry Company Affairs online initiative and the Ministry of External Affairs initiative of Passport Processing etc are examples of successful implementation of this model. In each of these case we have witnessed significant improvement in turnaround time and elimination of petty corruption.

The IT enabled Governance (ITeG) is still in its early stage. It was not so far away when we could observe the PCs in a typical government department placed at the boss’s cabin with secretary using this as a word processor. Those days are gone. But we still have a long way ahead. Even when a catalytic role is played by some central authorities, it is often limited to budgetary control by purse holders with limited appreciation of the larger role of technology enablement. This is akin to what happens in the corporate sector when the controller (Finance and Administration) is in the driver’s seat as far as computerisation is concerned. What we need is to evolve a nationwide strategy for ITeG and develop a framework for managing ITeG Projects with respect to people, process and technology.


The accomplice to the crime of corruption is frequently our own indifference ~ Bess Myerson

Related reading

Amateur’s tips on e-Governance
Give us the Facts
To be or not to be (Part 1) - The Art of Cooking
The art and ethics of lying - Part II

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Looking for “the One”? A Cynic’s Fantasy

‘Matrix’ is one of my favorite science fiction movies. In this movie, most of the human beings live the life in a virtual reality (the matrix), while their bodies are used as an energy source by the machines that have conquered the earth. A few humans have managed to escape the matrix and build up a resistance movement to break the matrix. The ruling machine class will do everything within their power to suppress this resistance. The movie is about this conflict and confrontation for the right to be free and not be a just a tool for select few!

Sometimes when I look around, I feel that this movie Matrix, to a great extent portrays the real world. The driving force as well as the reason for the existence of ruling class of politicians and business men is Power and Money. The politics mostly focuses on creation of power and the business mostly focuses on creation of riches and they help each other with their specialization and they exchange Power for Money and Money for Power.

They control all the resources. They extract the resources and convert them to products for their comfort or to increase their wealth. The common man treated as nothing but another resource; labor in the production process, the slave at their beck & call and the customer for what they produce which is a way to increase their wealth. They play with their policies so that this large mass of living resource is pacified, subdued and remain docile. The movies, the games, the TV and the religion are all used as means to keep the common man in a state to stupor. Slowly and steadily higher proportion of wealth shifts to this ruling class.

Occasionally we see some making an attempt to better the life of the society at large, to treat common man more fairly, to enable inclusive growth, to stop over exploitation of the earth’s resources, to sustain the environment and to bring about peace and harmony. This initiative is immediately snubbed. Look at some of the recent examples; Anna Hazare and Bhushans of Civil Society, Mr Thomas, former CVC, Mr. G V Ramakrishna and C B Bhave, former chairman of SEBI, Mr Tharoor former Minister, Sanjiv Bhat the IPS officer from Gujarat who has decided to take a position, Sreedharan,cheif of Delhi Metro and a host of not so famous and not so recent examples can be picked from politics, bureaucracy and social service.

Although corruption, fraud, exploitation, murder and terrorism are common currencies used by many (or most?) among ruling classes (both in business and in politics) technical faults, minor errors in judgment and even fabricated stories are blown out of proportion and exploited to suppress those who try to make a difference. I don’t claim these people are completely devoid of any errors. No human beings are. But the difference is that they mostly strive for the good of the society without being driven only by private agenda, their intentions are mostly honorable and they try to do the right thing in their endeavors, .

Unlike in Matrix there is not going to be “the One” with superhuman abilities to save the world. The change can only come from small contribution from each one of us. We need to learn to differentiate between technical faults of those who mean good and shenanigans of those who work to maximize only their private interest. We need to support these few good men instead of indulging in self righteous criticisms about those who try or making excuses for our inaction. We need to support the former, pardon their occasional errors in judgment and support them to go forward and perform. And for this we need to learn few tricks from the ‘bad’. If we don’t learn to do this, there may be no hope in this battle. Take it or leave it…

"What is the reason? Soon the why and the reason are gone and all that matters is the feeling. This is the nature of the universe. We struggle against it, we fight to deny it; but it is of course a lie. Beneath our poised appearance we are completely out of control". Merv the Frenchman in Matrix Reloaded.


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Some Inconvenient Questions

[I am a concerned citizen of the world. I worry about the doom that is projected for this mother earth on account of the irresponsibility of “we the people.” Recently I came across some contrarian thoughts in few books that I read (referred below) which raises some questions on the current popular thinking. I have attempted to draw attention to some highlights. Those interested can read up more.This may be a bit heretical but I believe it is worth being alive to these issues]

In 1798, an Austrian Monk Robert Thomas Malthus, who was also a political economist,  predicted a gloomy future for the mankind because he believed that population would increase at geometric progression and the food supply would grow at arithmetic progression resulting in collapse of the mankind. In 1898 another eminent British scientist, Sir William Crookes, argued that unless nitrogen could be chemically fixed from air by some scientific process, the human race would not be able to feed itself from the land available. They were not being paranoid. Their predications were based on facts, based on scientific estimation of arable land, based on the prevailing productivity of land, based on availability of fertilizer and based on their estimation of population growth. [1]

In the same year (1898) delegates from across the globe gathered in New York for the first international urban planning conference. Their main cause of concern was management of horse manure which had exploded to un-manageable problem in all major cities of the world. In 1894 Times London had predicted that by 1950 every street in the city would be buried nine feet deep in horse manure. Somebody in New York predicted about the same time that by 1930 horse shit would rise to Manhattan’s third-storey windows. All policy efforts to mitigate the problem offered no solutions. Urban planning conference broke up in three days instead of the planned 10 day schedule. [2]

Within 15 years after Sir Crookes made his predication a German Scientist Bosch invented a technology for large scale production of inorganic nitrogen fertilizer. Today almost half of the nitrogen in our body would have passed through such a factory. The invention of internal combustion engine was the environmental savior. It managed within two decades to address the problem that was driving nations around the world nuts. They also released significant land for farming which was hitherto being used to feed the horse and other draught animals.[3]

These solutions to the society’s vexing problems were not found by means of depopulation of society or by policy directions that reduced travel and commerce. It came about from human ingenuity and innovation. The internal combustion engines improved mobility, revolutionized travel and agriculture and helped the mother earth to sustain seven billion people without falling into the Malthusian trap.

With the exploding usage of these IC engines, today we are faced with the negative externalities of greenhouse gases (incidentally the methane gas produced by the ruminating animals produce 50% more greenhouse impact than the transport sector!) from this technological magic and we are worried about future of our energy options and global warming. In the same way the urban planning conference on horse manure failed to produce results, the Copenhagen Summit on climatic control was unproductive. The reason was not lack of intention. But because the marginal cost of discipline is much more than the benefit; not just for individuals, but also for countries. Garett Halden has nicely explained this “tragedy of commons”; the problem of free riding.[4]

We have to have innovations to address this. Not just knee-jerk relations based of fads and fashions. The renewable energy sources today have not reached the level of scalability to solve the global energy problem. Many of them, on a total input-output ratio of energy spent and energy output is quite inefficient and often a net consumer of energy. Matt Ridley has pointed out this conundrum with an interesting analysis. “Today about 125 kwh per day is the average energy consumption of a British national. Let us assume that we managed to brig it downto100 kwh which is to be supported with 25% each from nuclear, wind and solar, 5% each from bio-fuel, wood, wave tide and hydro. Then there would be sixty nuclear power stations, wind farms would cover 10% of entire land, solar panels covering an area the size of Lincolnshire, eighteen Greater Londons growing bio-fuels, forty seven new forests growing fast rotation harvested timber, hundreds of miles of wave machines off the coast, huge tidal barrages in the Seven estuary and Strangford Lough and 25 times as many hydro dams in the rivers as there are today’ Still with frequent power cuts.” [5]

We need to incentivize and encourage game-changing innovations and not hope for altruistic actions by individuals and countries represented by their political masters or jump at everything that sound green or organic without analyzing its true cost and benefit. We cannot be carried away by such dreams and take retrograde steps of arresting economic growth that would do injustice to billions of global citizens who hope to share some part of the benefit of human progress, massive drives to bio-fuels that will reduce land under cultivation leading to food shortage or hijack more rain forests. If we take this path the cure we are attempting will end up being a bigger disaster.

“Our dilemma is that we hate change and love it at the same time; what we really want is for things to remain the same but get better.” Sydney J. Harris
Related Reading: Question of Existence
References
[1], [3],[5] The Rational Optimist, Matt Ridley
[2] From Horse Power to Horsepower, Eric Morris
[4] The Corruption Conundrum, V Raghunathan
Super Freakonomics, Steven D levitt & Stephen J Dubner
The Price of Everything, Eduardo Porter

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Give us the Facts

When India got its independence in 1947 as an outcome of partition there was large scale migration across the India-Pakistan borders. From West Pakistan, more than 300,000 refugees (this does not include thousands who moved to Delhi, Mumbai etc.) migrated to eastern Punjab leaving behind about2.7 million hectares and they were looking for land to settle down and farm. As against this, the total land left behind by Muslims who migrated to Pakistan was only 1.9 million hectares. The government had a huge challenge of allocating land to these refugee farmers equitably.

Sardar Tarlok Singh of Indian Civil Service, as the director general of rehabilitation in this region, managed this process with clear and simple guidelines which were enforced pretty well. To address the variation in productivity of land across regions, he defined a ‘standard acre’ which was the area that could yield specified quantity of rice. To address the lesser area available for allotment compared to what was left behind, he introduced a ‘graded cut’. As per this each party received only a specified fraction of the land area left behind by them. This hair cut, administered in a stepped fashion, was lowest for smaller land holding and highest for the highest slab.

The biggest challenge was verifying the authenticity of the claims. He addressed the same through open assemblies of refugees from the same village. False claims were punished by reducing allocation and even imprisonment which were strictly enforced. He was able to make allotment of 250,000 properties within 18 months from March 1948, when he started collecting claim applications. [1] (Compare this with the efficiency of administration of various development schemes run by the government these days even with availability of more people and better technology.)

Thus the most difficult problem of verification of claims was addressed through transparency. Peer verification, social audits and village assemblies were mechanisms used by generations. But as the society got larger, government procedures more complex and often opaque and exception handling ad-hoc, various government approvals, benefits and programs became inefficient and avenues for misappropriation.

Right to Information Act (RTI) is a good beginning. But the resources available for this are so limited that it will be practically impossible to scale up the transparency drive. The resources get clogged in meaningless queries, which often is the intention of those raising the queries. RTI is a good tool to dig deeper; but not a tool that can scale up easily.

To give momentum to the march towards more transparency, we need to have a system in place that continuously publish time series data to be published by various government departments on its expenditures, programs, exceptions, benefits, sanctions and approvals. At present most of the information dissemination by various government departments is nothing more than a public relation exercises. There are certain departments in certain states taking excellent initiatives. But often they remain as individual effort which dies down after the initiator has left or remain as islands of excellence.

What is needed is an institutional framework for publishing granular data in electronic form that can be queried and analyzed. The progress in Information Technology and better connectivity make this eminently possible and affordable. Various agencies can then access this data and make observations and conclusions. Some people may make simple queries for clarifications. Some pope will undertake extensive analysis of the data to identify trends or patterns or to measure efficacy of various schemes. Transparency Portal of Brazil is an excellent example for such an initiative.

This may be inconvenient for many and such people will always try to object and raise excuses. Some try to hide behind so called ‘privacy issues’. I agree privacy is important. But privacy is for private matters. When it comes to most government expenditure and government benefits, the public has the right to know how this has been spent and who the recipients are. Sometimes we hide behind strategic and security concerns. Certain information may have to be always confidential. But some can be released after time delay. We have to be very selective when we classify information on the basis of such consideration and it should not be a means to obfuscate. We should have mechanisms in place that would dispassionately evaluate the sensistivity to classify information as confidential.

This is a trend that we see around the world. An interesting example is how the data relating to government support during the recent financial market crisis in USA has been released. The central bank and industry lobbies resisted tooth and nails releasing this data. In December 2010, Dodd-Frank financial law forced the central bank to release the data relating to trillions of dollars of loans it extended to the various banks under trouble. However, it did not release the details of the loans under the discount window. Supreme Court has now rejected the objection by the banking industry and has forced central bank to release this data also[2].

It makes sense for the government to have a coordinated effort with help of experts to study the functioning of each department and develop an institutional framework and a time bound plan for defining the scope of data release. Let us publish time series data at the most granular level; details of individuals and entities who receive any kind of government patronage, input, aid or subsidies given against the quality and quantity of their output, details of companies found to have been engaged in corrupt practices, details of fund transferred to each department and how it has been spent as so on. Mário Vinícius Claussen Spinelli, Secretary of Corruption Prevention and Strategic Information, Brazilian Office of the Comptroller General has beautifully described the Three Laws of Open Government Data:

• If it can’t be spidered or indexed, it doesn’t exist
• If it isn’t available in open and machine readable format, it can’t engage
• If a legal framework doesn’t allow it to be repurposed, it doesn’t empower


In the beginning there was nothing. God said, "Let there be light!" And there was light. There was still nothing, but you could see it a whole lot better. ~Ellen DeGeneres

[1] India after Gandhi, Ramachandra Guha
[2] Fed To Disclose Discount Window Crisis-Lending Data Thursday


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If wishes were horses…

I recently read an interesting observation about growth prospects for India. During the first millennium AD, and even before, India was an evolved society. It had world class educational institutions (Nalanda, Taxila etc) which attracted students and scholars from around the world; it had world renowned commercial centers which had trade relationships with many continents, and it demonstrated leadership in area of philosophy, mathematics, literature and astronomy. It was the era of knowledge and reasoning.

The second millennium was the era of engineering and industrial revolution which practically bypassed India. The colonial suppression would have definitely contributed to this. But, as per the above article it was also a manifestation of how Indian brain is wired, which makes it more comfortable with knowledge and logic than technology and applied science.

The third millennium again is that of knowledge and learning, which are comfort areas for the Indian brain. In fact the planning commission in early 2000 had set up a task force under the chairmanship of Dy Chairman of Planning Commission to evolve strategies for becoming a knowledge superpower.

I don’t know how correct is this analysis with respect to the competitive edge of Indian society in this knowledge economy. But there can be no argument about the fact the key drivers for today’s growths are information and collaboration. The most important infrastructural requirements for these key drivers are connectivity to link people and capability to use the modern tools that facilitate information flow and collaboration.

Today India is acknowledged as a powerhouse in the area of Information Technology. We are the back end development center for the whole world. Graduates in every field of science, whether it is engineering, physics, chemistry and mathematics appear to be drifting to computer programming and many more into IT Enabled Services.

Therefore, it appears that we have the aptitude, the infrastructure and the human resources necessary in this most important field and we are well poised to build on this. But when we go a little deeper, we see some underlying weaknesses.

A global ICT index called “Connectivity Score Card” based on a Study created by Professor Leonard Waverman, London Business School, and economic consulting firm LECG, commissioned by Nokia Siemens Networks has been tracking the level of sophistication of ICT infrastructure across the world for last few years. It is a broad based matrix taking into account availability of infrastructure and usage & skills in the area of ICT among consumer, business and government sectors. This study has ranked countries which are segregated into two groups called innovation driven and resources driven as per the categorization of world economic forum. The former contains mostly developed economies and latter more of developing economies. India forms a part of the resource driven countries and with a score of 1,82 out of 10 it ranks 21 among 25. The only four countries which have ranks lower than India are Kenya, Nigeria, Bangladesh and Pakistan. Malaysia with a score of 7.14 has the top place among the resources driven economies.

What do we learn from this contradiction? We have outstanding strengths in the field of ICT which is one of the key requirements for a knowledge economy. But, this skills and strengths are concentrated in few Islands of excellence. Therefore, we need to have a focused strategy and attention (a little more than that gets wasted in telecom scams) for wider availability of ICT infrastructure for us to exploit this opportunity. Somebody once asked Dr R A Mashelkar what would be his ultimate wish for India. He had no difficulty in responding quickly. “High quality connectivity to every citizen at affordable cost and skill to use it effortlessly and meaningfully.” Then, as Mat Ridley would say, ideas will have more sex and multiply.

The number one benefit of information technology is that it empowers people to do what they want to do. It lets people be creative. It lets people be productive. It lets people learn things they didn't think they could learn before, and so in a sense it is all about potential. Steve Ballmer


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Never Rode & Never Fell

“If Thomas is corrupt, (I don’t want to defend him, let justice system decide) is there something wrong with what defines corruption in India. I can be wrong ....what do you think?” My friend Antony wrote to me.

I had read the news items regarding the controversy relating to appointment of Mr PJ Thomas as the Central Vigilance Commissioner (CVC). With the cursory reading of the news items I was under the impression that he could be one of the corrupt officers who had managed to slime his way to the prestigious post. I was taken aback by Antony’s mail.

I asked around. I talked to his college mates, his colleagues in the IAS and his family friends who knew him as a person. Everybody told me that he is a man of high integrity and a brilliant officer. I read the Supreme Court Judgment relating to the writ petition as to the legality of his appointment. This judgment was only about the legality of the appointment and does not in any way take a view on the merit of the Palmolein case which is pending in the court of Special Judge. As to what I have understood from my talks with the various people who are of the know of this case, though he got embroiled in this case when he was the secretary, Department of Food and Civil Supplies of Kerala State when the Palmolein controversy erupted, he may not have been beneficiary or may not have consciously abetted the controversial decision.

This questionable import of Palmolein took place in 1991. Subsequently in the last 20 years, this matter has been tossed around in legal and procedural wrangles without any decision. Instead of undertaking thorough investigation as to who erred in his judgment, or who was negligent or who was corrupt to fix responsibility and take necessary action, this case had become a political tool in the fight between two political parties and their leaders dragging the career of a few officers for few decades.

I am sure that it is this conviction that Mr Thomas is an honorable and capable person to take the role of CVC that prompted the Prime Minister and Home Minister to recommend his name for this post and not because they thought they have a pliable officer who would play by their tune.

I am not qualified to comment on the merit of the case. But in my mind, this case is a classic example of the perverse incentive that influences the decision making process of our bureaucracy. As Mr Thomas has observed in his petition “it is routine for officers in the discharge of their duties to have cases slapped against them, many of which are trumped up or politically motivated. In an environment where a bureaucrat bears the brunt of protests against governmental action, it is necessary that an objective view be taken of how officers function.”

Instead of taking such objective assessment of the process followed in decision making, if we find fault with the outcome of the decision with the benefit of hindsight, and we allow such matters to be enmeshed in legal wrangles without any conclusion for decades, we have a serious problem. Honest and good officers get penalized and tainted for their life for having taken a judgment call. This worry and concern often act as a deterrent to take a bold stand or to interpret the laws and procedures for the right cause without any private agenda. On the other hand the unscrupulous officers realize that the legal processes may get dragged for years without any result and in the meantime they can maximize their private interests and that of their political mentors.

If we don’t find ways to protect and support good officers we have no moral right to complain about the inaction of the bureaucrat. Take it or leave it ...!

It is the spirit and not the form of law that keeps justice alive. Earl Warren


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Paving the last mile

My post “Last mile to the bottom of the pyramid” discussed how targeted delivery of subsidies and benefits can reduce leakage, improve efficiency of delivery and stimulate demand in the economy. In this post I discuss three critical components for targeted delivery.

Unique Identification: The first and foremost requirement for targeted delivery is unique identification of recipients. “Aadhar”, the biometric based unique identity for residents, addresses this issue. Especially, an infrastructure for verification of identity by matching the biometric signature (say finger print) of the recipient against the master database of UID effortlessly and cheaply from any part of the country would be an extremely powerful tool. This may sound like science fiction or a costly option for our country. Experts do point out that the current state of technology makes this quite feasible and affordable as we can have a standardized process for identity verification for variety of applications. With the increase in volume of usage, the cost would only drop further.

Enrollment of eligible person: The second component is the ability to filter out the individuals who are not eligible for specific subsidy or benefit. Today each agency that is responsible for providing an entitlement goes through extensive processes for enrolling eligible persons. If we take a deeper look, we can see that there are many common eligibility parameters for most of the entitlements. For example one or more indicators like age, sex, income, educational qualification etc are common for most of the subsidies and benefits. I agree that there are some efforts like BPL and APL list, differentiated ration cards etc in certain states which are attempts in this direction. But, there are hardly any agencies that have implemented an infrastructure using the power of modern technology to build and maintain such databases which can be easily accessed and referred to by other systems using a published standard interface.

If we are able to establish one or more entities that would build and maintain databases of individuals against their Unique Id (Aadhaar), various parameters which go into determination of entitlements, there will be tremendous efficiency gains and cost reduction in the process of enrollment. These databases should also have mechanism for reverse flow of information from the administering agencies which will help in continuous update of these parameters. These would be essentially utilities that focus on the IT enabled data management which help the implementation agencies to focus on policy administration.

Some people may point out that such integration of data is an intrusion into privacy. However, conceptually it is just like the credit bureaus like CIBIL that maintains credit history of individuals using data sourced from banks and financial institutions.

Distribution Channel for subsidies: The third critical component in targeted delivery is the distribution channel. As the various subsidies are provided by means of reduced price of products or service, there is a need to manage the distribution of these discounted products along with market priced products. If this movement is not strictly controlled and monitored there could be significant leakage. This would require each of the agencies to make significant investment and effort for this process control which often forces state management of distribution that sometime compromise quality of service.

One of the most efficient ways to address this is standardization of manner for delivering subsidized products. The highest level of standardization is when the subsidy is in the form of a money transfer. In this case the goods will move in market price and the eligible person will get the subsidy credited to a bank account which is easily accessible. In this way the process of benefit distribution is not product based but beneficiary based which can be same for variety of products or services from kerosene to education. The agency responsible can then plug into a standardized payment mechanism at very low cost. Further tweaking the eligibility condition will also require very little or no tweaking of payment system.

In this model the agency distributing the subsidy can focus on product/ service distribution. Moreover, there may not be any need to restrict such distribution through government controlled agencies and can be handled by a number of private and public service providers helping competition and resulting improvement in service quality. Government can focus on administration of eligibility and administration of the subsidy. This monetization of benefit can also leave the choice of how to use this entitlement to the beneficiary.

Criticism for this model is that the beneficiary may misuse the entitlement irresponsibly and the state will not be able to influence the behavior of the target audience. Even this can be addressed by mechanisms like transferring the subsidy to the account of lady of the house (It is a well researched fact that women of the house are normally more responsible with money. Similarly the better status of the Nair woman of Kerala who historically had the economic power on account of a matrilineal society could also support this) or dependent on compliance to certain conditions.

This can also be addressed by a minor tweak of payment system. In this case each of the subsidies can be treated as an entitlement credited to the account which can be used only against purchase of the prescribed service. As far as the payment system is considered it is very much like handling multicurrency accounts which is a well established process.

Tail piece: This post attempts to highlight the possibility of establishing two critical infrastructure utilities which in conjunction with the Aadhar can significantly improve the subsidy and social security administration. This cannot be achieved overnight. But it makes sense to give focused attention to the above as we have established Unique Id Authority of India.

In the end, it all comes to choices to turn stumbling blocks into stepping stones.Amber Frey

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