Building a better and just society necessarily implies inclusive growth. So if we focus on building a better and just society, inclusive growth will inevitably occur, for, a mansion in the middle of a slum is non-sustainable. What are the problems we need to fix first? We have a great constitution (better than that of many "advanced" countries) and even smart people but they are unable to perform. We have tied ourselves into knots so execution fails and transaction cost is pushed abonimably high making us one of the most difficult countries to do business in. There is so much friction in getting anything done with the government interfacing people and organisations that giving "speed money" is usually the only option available in moving forward. My list of essential things to do will help us achieve the major objectives that are stated at the end of this note. Itemisation below is random and not in the order of importance. This list can surely grow, however, at present i think these are among the things that have a high and quick impact and the best ICOR.
1. Justice delivery system must be made impeccable.
1.1 WRITING OF LAWS: We need to ensure that our laws are written unambiguously and with minimum amendments [i don't know why the final version cant be released instead of issuing amendments upon amendments and why not use hierarchical numbering of articles, viz. x.x.x instead of long convoluted references - e.g. "in section 7, in sub-section (1A), in clause (i), for the figures, letter and word "51A and 87", the figures, letters and word "51A, 76A and 87" shall be substituted."]. Intelligent and honest people having a far higher caliber than is the case now should be assigned the task of drafting our statutes. We continue to be slaves of the British legal system and our own drafting of laws is third rate. Our laws are written by people who are at best mentally challenged and at worst who are dishonest and used to a life time of lording over hapless citizenry. The language and intent are designed to encourage corruption or to encourage dishonest behaviour. We all know how our IT, Customs, Excise and State Tax departments function - what does compliance with various regulations cost the country? Everyone has seen how the bad drafting and intent of the rules encourage corruption - we need to train better and hire better legislators.
1.2 QUALITY OF JUDGES: The judges recruitment has to be vastly improved - we need far more intelligent and upright judges than is the case now. Majority of them are pompous self-righteous and out of synch with latest developments in technology and social thought. Quite a few are corrupt.
1.3 BACKLOG OF CASES: The speed of disposal has to be increased at least ten folds through better systems and of course through making the judges take less vacations. The entire bunch of lawyers and judges need to be equipped with Notebooks and online systems and libraries. The idea of maintaining paper based systems and journals is archaic - it is a huge time wasting system. The courts should work in two shifts, if not three shifts.
1.4 LEGAL AID FOR ECONOMICALLY WEAK PEOPLE: This is state's responsibility. Poor people should not come away with the feeling that justice is only for the rich. This is sadly the case now, their dignity and rights should be respected. The judges need to be trained and sensitised - just as call centre agents are monitored, many judges need to be monitored quietly. There is no transparency in judiciary functioning - how they are trained and promoted or demoted.
2. SYSTEMS improvements in government (smart govt.):
2.1 Each resident must have an id (e.g. UID's Aadhar)
2.2 Each business entity must have an id (at present only companies have this).
2.3 Single system for Goods and Services Taxes for the whole country. Existing taxes and returns filing should be scrapped totally - Excise, Customs duty, VAT, Service Tax and the system of government forms for exemptions or concessional rates should be eliminated. Most of the employees in these departments should be retired. Online filing will do away with manual systems and human interaction should be severely curtailed. Sample audit should be instituted and defaulters should be severely punished. Punishment for cheating should be a deterrent.
2.4 Online systems should be implemented for direct payments to beneficiaries. E.g. Education coupons for reduction or waiver of fees, Discount coupons for food and rations. Entire PDS (Public Distribution System) chain should be eliminated, the coupons should enable anyone to get the discount on purchases at any private shop and not just from a PDS shop.
3. SALARIES of MP, Legislators, Police should be hiked many times over. These salaries are too low considering the caliber of people required in these positions. A hefty salary hike will attract greater number of honest people to take up these jobs. Can a capable but "poor" person become an MP or police man today?
4. ELECTIONS should be allowed to be funded through official contributions. Candidates of recognised parties should be given free time on STATE TV networks and invited for debates on the important issues. Independent candidates spending their own resources should be given matching contributions by the state.
4.1 Election code of conduct must be watched closely. Patently absurd limits of expenses should be eliminated. There should be no limit on expenses provided there is full disclosure.
5. Universities and Institutes of higher and advanced studies - heavy dose of liberalisation is needed.
5.1 In education sector - FDI & private investment should be permitted; institutes should be allowed to define their own syllabus - market will decide the winners. Because of "blinkered policies" we have created shortages that outclass the yesteryear's "telephone connection queue of eight years in the general category and three years in the special category" or "scooter booking that had to be done five years before delivery". Today medical student aspirants pay Rs.5 million fee for doing a degree and hundreds of thousands school or college graduates vie for couple of hundred seats in engineering and MBA courses. Even children get into KG only after arranging donations. All this is because adequate options are unavailable - we have a "superb system" in place that "perpetuates shortages" and manipulators are the ones that benefit.
5.2 Government should spend lot more in creating superlative courseware by hiring the best teachers and then create systems for mass delivery using ICT. There is no need for teachers and professors to retire at 60 when we are facing such a shortage of good teachers.
5.3 Higher education subsidy benefits the elite and the middle-class. The college fees ought to be much higher. The "middle-class" should take loans and study, the state's subsidy should be diverted to primary education of children and remove adult illiteracy, especially among women.
5.4 School attendance - students and teachers should be monitored through ICT (using Aadhar and biometric methods).
5.5 Universities and technical colleges must collaborate with the industry (or converse). USA is number # 1 innovator of the world, by a wide margin, in a great measure, because of its superb Universities - environment of collaborative working produces better prepared students and the institute itself reaps great returns - both monetary and non-monetary.
5.6 Graduates should be asked to teach adults who are illiterate in evening or early morning classes when the class rooms are idle. When we were in the college we had mandatory duty in NCC. We should now have "NLM" duty - National Literacy Mission - we have 27 mission mode projects - this should be the 28th Mission Mode project of Government of India.
6. There should be a huge drive to promote the idea of entrepreneurship. Merit should be respected.
1. Justice delivery system must be made impeccable.
1.1 WRITING OF LAWS: We need to ensure that our laws are written unambiguously and with minimum amendments [i don't know why the final version cant be released instead of issuing amendments upon amendments and why not use hierarchical numbering of articles, viz. x.x.x instead of long convoluted references - e.g. "in section 7, in sub-section (1A), in clause (i), for the figures, letter and word "51A and 87", the figures, letters and word "51A, 76A and 87" shall be substituted."]. Intelligent and honest people having a far higher caliber than is the case now should be assigned the task of drafting our statutes. We continue to be slaves of the British legal system and our own drafting of laws is third rate. Our laws are written by people who are at best mentally challenged and at worst who are dishonest and used to a life time of lording over hapless citizenry. The language and intent are designed to encourage corruption or to encourage dishonest behaviour. We all know how our IT, Customs, Excise and State Tax departments function - what does compliance with various regulations cost the country? Everyone has seen how the bad drafting and intent of the rules encourage corruption - we need to train better and hire better legislators.
1.2 QUALITY OF JUDGES: The judges recruitment has to be vastly improved - we need far more intelligent and upright judges than is the case now. Majority of them are pompous self-righteous and out of synch with latest developments in technology and social thought. Quite a few are corrupt.
1.3 BACKLOG OF CASES: The speed of disposal has to be increased at least ten folds through better systems and of course through making the judges take less vacations. The entire bunch of lawyers and judges need to be equipped with Notebooks and online systems and libraries. The idea of maintaining paper based systems and journals is archaic - it is a huge time wasting system. The courts should work in two shifts, if not three shifts.
1.4 LEGAL AID FOR ECONOMICALLY WEAK PEOPLE: This is state's responsibility. Poor people should not come away with the feeling that justice is only for the rich. This is sadly the case now, their dignity and rights should be respected. The judges need to be trained and sensitised - just as call centre agents are monitored, many judges need to be monitored quietly. There is no transparency in judiciary functioning - how they are trained and promoted or demoted.
2. SYSTEMS improvements in government (smart govt.):
2.1 Each resident must have an id (e.g. UID's Aadhar)
2.2 Each business entity must have an id (at present only companies have this).
2.3 Single system for Goods and Services Taxes for the whole country. Existing taxes and returns filing should be scrapped totally - Excise, Customs duty, VAT, Service Tax and the system of government forms for exemptions or concessional rates should be eliminated. Most of the employees in these departments should be retired. Online filing will do away with manual systems and human interaction should be severely curtailed. Sample audit should be instituted and defaulters should be severely punished. Punishment for cheating should be a deterrent.
2.4 Online systems should be implemented for direct payments to beneficiaries. E.g. Education coupons for reduction or waiver of fees, Discount coupons for food and rations. Entire PDS (Public Distribution System) chain should be eliminated, the coupons should enable anyone to get the discount on purchases at any private shop and not just from a PDS shop.
3. SALARIES of MP, Legislators, Police should be hiked many times over. These salaries are too low considering the caliber of people required in these positions. A hefty salary hike will attract greater number of honest people to take up these jobs. Can a capable but "poor" person become an MP or police man today?
4. ELECTIONS should be allowed to be funded through official contributions. Candidates of recognised parties should be given free time on STATE TV networks and invited for debates on the important issues. Independent candidates spending their own resources should be given matching contributions by the state.
4.1 Election code of conduct must be watched closely. Patently absurd limits of expenses should be eliminated. There should be no limit on expenses provided there is full disclosure.
5. Universities and Institutes of higher and advanced studies - heavy dose of liberalisation is needed.
5.1 In education sector - FDI & private investment should be permitted; institutes should be allowed to define their own syllabus - market will decide the winners. Because of "blinkered policies" we have created shortages that outclass the yesteryear's "telephone connection queue of eight years in the general category and three years in the special category" or "scooter booking that had to be done five years before delivery". Today medical student aspirants pay Rs.5 million fee for doing a degree and hundreds of thousands school or college graduates vie for couple of hundred seats in engineering and MBA courses. Even children get into KG only after arranging donations. All this is because adequate options are unavailable - we have a "superb system" in place that "perpetuates shortages" and manipulators are the ones that benefit.
5.2 Government should spend lot more in creating superlative courseware by hiring the best teachers and then create systems for mass delivery using ICT. There is no need for teachers and professors to retire at 60 when we are facing such a shortage of good teachers.
5.3 Higher education subsidy benefits the elite and the middle-class. The college fees ought to be much higher. The "middle-class" should take loans and study, the state's subsidy should be diverted to primary education of children and remove adult illiteracy, especially among women.
5.4 School attendance - students and teachers should be monitored through ICT (using Aadhar and biometric methods).
5.5 Universities and technical colleges must collaborate with the industry (or converse). USA is number # 1 innovator of the world, by a wide margin, in a great measure, because of its superb Universities - environment of collaborative working produces better prepared students and the institute itself reaps great returns - both monetary and non-monetary.
5.6 Graduates should be asked to teach adults who are illiterate in evening or early morning classes when the class rooms are idle. When we were in the college we had mandatory duty in NCC. We should now have "NLM" duty - National Literacy Mission - we have 27 mission mode projects - this should be the 28th Mission Mode project of Government of India.
6. There should be a huge drive to promote the idea of entrepreneurship. Merit should be respected.
6.1 Those who fail trying to do something new or daring are not always cheats. In India in the private sector, if an enterprise fails, the promoter is invariably branded a cheat who must be prosecuted. So the investors will file hundred of bogus cases which will swamp the courts who will typically act as saviours of the investors. In the public sector, an enterprise will simply not be allowed to fail or shut down when in fact it is nothing but a drain on the tax-payers - all this for the sake of few "labour class" employees who stand to lose their jobs.
6.2 We have ridiculous laws and attitude in India of discouraging entrepreneurship. Reward without risks is the credo of the timid and the mediocre. If a person in a senior public office makes a mistake, people and media will hound the person until his/her reputation is ground into dirt so CYA policy is the de facto standard. Therefore, manipulators thrive and there is no way, even for the best run businesses, but to hire agents and lobbyists (by paying them extraordinary fees) to do business with the government. If you have a smart solution that will work wonders for the country, as a small entrepreneur, you can forget ever succeeding in selling it to the government. Do we want manipulators to come up or entrepreneurs to come up in our society?
7. Use of surnames denoting caste should be banned
7.1 With immediate effect; every child born in the country should be given a name without surname that denotes caste or religion, e.g. Anil Kumar and not Anil Srivastava. Discrimination based on religion, caste or sect has no place in a civil society. We can rid ourselves of this malaise only by a government diktat otherwise we will be giving lectures about equality for the next ten generations.
7.2 There is no merit in reservations - it perpetuates discrimination. It should be phased out and in one generation, completely eliminated - by reducing reservations linearly by 5% p.a..
8. Government should reduce or increase its footprint in selected areas
8.1 Government should reduce its involvement in running businesses and industry and even various delivery systems in education, health, food distribution etc. These should be privatised or in PPP (public private partnership) mode. With UID's Aadhar the beneficiaries should be given direct aid and choices in encashing the entitlements.
8.2 Very long-term infrastructure projects or those ventures that have unlimited liabilities (e.g. building and running a Nuclear Power Plant), defence systems, space exploration, environment management, safety systems and basic science, R & D should be government's responsibility.
It is agreed by all that poverty alleviation means providing for - drinking water, sanitation, health, shelter, primary education AND connectivity (Mobiles and Internet). We have committed budgets for these at national and state levels. What is happening to achievements vs targets? I think if we do the above things, right people will get empowered and targets for inclusive growth will be more achievable. A better and just society will WANT inclusive growth. This can happen in one life-time by changing some of our systems and attitudes that reward merit.
7. Use of surnames denoting caste should be banned
7.1 With immediate effect; every child born in the country should be given a name without surname that denotes caste or religion, e.g. Anil Kumar and not Anil Srivastava. Discrimination based on religion, caste or sect has no place in a civil society. We can rid ourselves of this malaise only by a government diktat otherwise we will be giving lectures about equality for the next ten generations.
7.2 There is no merit in reservations - it perpetuates discrimination. It should be phased out and in one generation, completely eliminated - by reducing reservations linearly by 5% p.a..
8. Government should reduce or increase its footprint in selected areas
8.1 Government should reduce its involvement in running businesses and industry and even various delivery systems in education, health, food distribution etc. These should be privatised or in PPP (public private partnership) mode. With UID's Aadhar the beneficiaries should be given direct aid and choices in encashing the entitlements.
8.2 Very long-term infrastructure projects or those ventures that have unlimited liabilities (e.g. building and running a Nuclear Power Plant), defence systems, space exploration, environment management, safety systems and basic science, R & D should be government's responsibility.
It is agreed by all that poverty alleviation means providing for - drinking water, sanitation, health, shelter, primary education AND connectivity (Mobiles and Internet). We have committed budgets for these at national and state levels. What is happening to achievements vs targets? I think if we do the above things, right people will get empowered and targets for inclusive growth will be more achievable. A better and just society will WANT inclusive growth. This can happen in one life-time by changing some of our systems and attitudes that reward merit.
