Friday, May 30, 2014

Signs of action

Media had accused NaMo in the worst possible manner for being a dictator, a self-centred egotist. The same person has replied not in words, but through action - by humbly asking to request for removal of story of his life from state textbooks in his tweet.

The best news of the day was his plan to introduce performance based incentive for government employees. This is truly in line with his mantra of "minimum government, maximum governance". Currently, there is nothing in the government system which provides recognition and reward to well performing capable officers. The current system does not reward hundreds of good deeds but a single error despite being well-intended can finish the career. Organizational experts would tell you such an organizational design is recipe for a high cost, low performing organization which is what we have been getting all along from the bureaucracy in this country. I have seen the movement from "Cholbe na" in Bengal to "Can do, Will do" attitude in Gujarat and let me tell you, it fills you with energy and enthusiasm. But, let me not be biased and not take away the credit of the last UPA government for "in-principle approval" of this scheme. But, the key would be honest execution wherein this does not become a tool in the hands of seniors and politicians for rewarding their cronies. After all, any policy or strategy is only as good as its execution. Post successful execution at the centre, the state governments irrespective of political affiliations must emulate the same and must try to make the whole government system "performance oriented".

Being a majority government not dependent on any bargaining, the government has already started taking decisive action as seen by news of FDI in defence, rail & infrastructure. FDI should not be viewed as selling out assets of the nation or mortgaging the family silver to the foreigners. Rather, it has to be seen as a means for channelizing global capital (both financial as well as technical) for fast-tracking of growth plans. Today, the country is importing critical defence equipment from foreign players by spending from our foreign exchange reserves. By attracting FDI, it will be able to develop domestic manufacturing in these segments. This will lead to multiple benefits such as - (i) Generation of large number of jobs (ii) Strong development of technical skills (iii) development of an ecosystem which in future can even be used for export of these products - thus changing an FX consuming stream to an FX generating stream (current account deficit reduces). Obviously, this will take a long time to materialize and will need a positive and favourable environment at every stage.

Achche Din....

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