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Subject: Governance

Important aspects of Society

  • Building a robust healthcare system

    The article focuses on the wide variation across the state in terms of the important health parameters and suggests prioritising health.

    Variation across the states

    • The efficacy of the public health system varies widely across the country since it is a State subject.
    • Public health system can be judged just by looking at certain health parameters such as Infant Mortality Rate, Maternal Mortality Ratio and Total Fertility Rate.
    • In Madhya Pradesh, the number of infant deaths for every 1,000 live births is as high as 48 compared to seven in Kerala. In U.P. the Maternal Mortality Ratio is 197 compared to Kerala’s 42 and Tamil Nadu’s 63.
    • The northern States are performing very poorly in these vital health parameters.
    • The percentage of deliveries by untrained personnel is very high in Bihar, 190 times that of Kerala.
    • Since health is a State subject, the primary onus lies with the State governments.
    • Each State government must focus on public health and aim to improve the health indicators mentioned above.
    • Unless all the States perform well, there will be no dramatic improvement in the health system.

    Steps needed to be taken

    • The governments — both at the Centre and the Empowered Action Group States — should realise that public health and preventive care is a priority and take steps to bring these States on a par with the southern States.
    • The Government of India has a vital role to play.
    • Public and preventive health should be his focus by holding the Empowered Action Group States accountable to the SDGs.
    • They must be asked to reach the levels of the southern States within three to five years.
    • An important measure that can make a difference is a public health set-up in these States that addresses primary and preventive health.

    Conclusion

    Unless we invest in human capital, FDI will not help.  Investing in health and education is the primary responsibility of any government. It is time the governments — both at the Centre and States — gave health its due importance.

  • Municipal finance reform through Finance Commission recommendations

    Transforming the financial governance of India’s municipalities

    • Interim report of the Fifteenth Finance Commission of India (XV FC) indicates that it could fundamentally transform the financial governance of India’s municipalities.
    • Final report for FY 2021-22 to FY 2025-26 is expected to be tabled along with the forthcoming Budget 2021-22.
    • Building on the track record of previous finance commissions, the XV FC Commission has significantly raised the bar on financial governance of India’s municipalities in the interim report in at least four specific ways.

    4 Provisions in the interim report

    1) Increase in the outlay for municipalities

    •  It has set aside Rs 29,000 crore for FY 2020-21 and indicated the intent to raise the share of municipalities in the total grants’ of local bodies including panchayats gradually over the medium term, from the existing 30 per cent to 40 per cent.
    • This could result in the outlay over five years being in the range of Rs 1,50,000-Rs 2,00,000 crore compared to Rs 87,000 crore during the XIV FC period.

    2) Ensuring financial accountability through conditions

    • Two very important entry conditions have been set for any municipality in India to receive FC grants:
    • 1) Publication of audited annual accounts.
    • 2) Notification of floor rates for property tax.
    • These two entry conditions lay strong foundations for financial accountability of municipalities and own revenue enhancement respectively.
    • Similarly, the Atmanirbhar Bharat Abhiyan links Rs 50,000 crore of additional borrowing limits for states to reforms in property taxes and user charges for water and sanitation.
    • There is also a thrust on municipal bonds and municipal finance reform conditions under AMRUT.

    3) Distinguishing between million-plus urban agglomerations, and other cities

    • The XV FC has adopted an approach of distinguishing between million-plus urban agglomerations, and other cities.
    • This is well-founded, based on the pattern of urbanisation in India, where 53 million-plus urban agglomerations comprising 250-plus municipalities account for approximately 44 per cent of the total urban population.
    • The remaining 4,250-plus municipalities comprise 56 per cent of the total urban population.
    • Of the remaining 56 per cent, there is a “long tail” of approximately 3,900 municipalities with 33 per cent of the total urban population.
    • The XV FC has now provided for 100 per cent outcome-based funding of approximately Rs 9,000 crore to 50 million-plus urban agglomerations (excluding Union Territories) with specific emphasis on air quality, water supply and sanitation and basic grants to the rest of the cities, with 50 per cent of the end-use tied to water supply and sanitation.
    • For the first time, there is also an acknowledgement of the metropolitan area as a unified theatre of action to solve complex challenges of air quality, water and sanitation, with implicit emphasis on inter-agency coordination.

    4) Common digital platform for municipal accounts

    • The report recommends a common digital platform for municipal accounts, a consolidated view of municipal finances and sectoral outlays at the state level, and digital footprint of individual transactions at source, the FC has broken new ground and demonstrated farsightedness.

    Role of the state governments

    • The ultimate responsibility for municipal finance reforms remains with state governments.
    • Constitutional bodies such as the finance commission can, at best, prepare the ground and provide incentives and disincentives.
    • We need municipal legislation to reflect progressive and enabling financial governance of our cities through five reform agendas:
    • 1) Fiscal decentralisation including strengthening state finance commissions.
    • 2) Revenue optimisation to enhance own revenues.
    • 3) Fiscal responsibility and budget management to accelerate municipal borrowings.
    • 4) Institutional capacities towards an adequately skilled workforce.
    • 5) Transparency and citizen participation (for democratic accountability at the neighbourhood level).
    • The first step needs to be predictable fiscal transfers from state governments to municipalities and other civic agencies on a formula-based approach as against the present practice of ad hoc, discretionary grants.
    • State finance commissions would need to emulate the XV FC and its predecessors, and emerge as credible institutions.
    • State governments need to ensure that state finance commissions are constituted on time, resourced right, and their recommendations taken seriously.

    Consider the questions “Financial governance of our cities faces several challenges. Discuss the reforms that could transform the financial governance of municipalities”

    Conclusion

    The state government must act on these reform agenda and ensure the transformation of financial governance of their municipalities.

  • Highlights of the Corruption Perception Index, 2020

    The Transparency International (TI)’s corruption perception index (CPI) was recently released for 2020.

    Another set of useful data in news to be noted by aspirants. Such data are essential and need to be memorized. One must note here. Such data recur every year. So it is not a big task to deal with such numbers along with other critical indices.

    About the Corruption Perception Index

    • The index ranks 180 countries and territories by their perceived levels of public sector corruption.
    • It uses a scale of 0 to 100, where 0 is highly corrupt and 100 is very clean.

    Global prospects

    • Denmark and New Zealand top the index, with 88 points. Syria, Somalia and South Sudan come last, with 14, 12 and 12 points, respectively.
    • Nearly half of countries have been stagnant on the index for almost a decade, indicating stalled government efforts to tackle the root causes of corruption.
    • More than two-thirds score below 50.

    India’s performance

    • The CPI score for India is constant this year as well as the previous year’s score.
    • India’s rank is 86 out of 180 nations with a score of 40.
    • It was ranked at 80th position out of 180 countries in 2019 with a score of 41.

    A comparison with neighbours

    • At 40, India’s score is below the average score of the Asia-Pacific region (31 countries) and global average, the CPI 2020 report stated.
    • India’s overall score is also two points less than that of China, which docked at 78th position, with a score of 42.
    • Pakistan, however, scored just 31 points, falling at the 144th position on the index.

    What does it mean for India?

    • India is still very low on corruption Index, the report said, noting that experts feel the CPI does not reflect the actual corruption level in any country.
    • The integrity score determines the corruption situation of a country.

    Recommendations made by TI

    To reduce corruption and better respond to future crises, Transparency International recommends that all governments:

    • Strengthen oversight institutions to ensure resources reach those most in need. Anti-corruption authorities and oversight institutions must have sufficient funds, resources and independence to perform their duties.
    • Ensure open and transparent contracting to combat wrong-doing, identify conflicts of interest and ensure fair pricing.
    • Defend democracy and promote civic space to create the enabling conditions to hold governments accountable.
    • Publish relevant data and guarantee access to information to ensure the public receives easy, accessible, timely and meaningful information.

  • How PFMS is ensuring transformation via digital inclusion

    The article highlights the role played by the Public Financial Management System (PFMS) in promoting the good governance.

    About PFMS

    • With the objective of bringing in transformational accountability and transparency and to further promote good governance, the Indian government envisioned Public Financial Management System (PFMS).
    • PFMS has evolved as an end to end solution for Processing, Monitoring, and reconciling financial flows of Central Govt.
    • Today, PFMS has empowered governance to become more responsive, accountable, and transparent.

    Mandate of PFMS

    • Through Cabinet decision, PFMS has been mandated the following:
    • It acts as a financial management platform for all plan schemes and allows for efficient and effective tracking of fund flow to the lowest level of implementation for the planning scheme of the Government.
    • It is mandated to provide information on fund utilization leading to better monitoring, review, and decision support system to enhance public accountability in the implementation of plan schemes.
    • To result in effectiveness and economy in Public Finance Management through better cash management for Government transparency in public expenditure and real-time information on resource availability and utilization across schemes.

    Achievements of PFMS

    • PFMS can be credited to the transformation of Direct beneficiary transfers space in financial governance in India.
    • An estimated 102 crore DBT transactions were done through PFMS in FY 19-20 amounting to about ₹2.67 lakh crore.
    • Through efficient use of technology, PFMS is estimated to have saved about ₹1 lakh crore in direct beneficiary transfers.

    4 Factors that could determine the successful evolution of PFMS in future

    • Agility in terms of Onboarding/Integrating all Govt. accounts: Only after ensuring significant coverage, the true execution of the concept will take place.
    • Effective data management capabilities: PFMS will have to add significant data management capabilities in order to ensure better monitoring/review to deliver on the idea of a decision support system for effective cash management or management of idle float in the system.
    • Constantly upgrading: Adaption to rapid changes in technology is another key area that would call for a considerable amount of focus both in terms of gradation and monitoring.
    • Collaboration with the banking system: Lastly, one of the most critical factors for the successful execution of PFMS is its integration with the banking systems.
    • The Banks and PFMS will have to actively partner to ensure faster coverage/integration of all the Govt. entities.

    Consider the question “Governance in India has long been marred with structural challenges like transparency, lack of accountability and sustainable and inclusive growth. In light of this, discuss the role played by the Public Financial Management System in tackling these challenges.” 

    Conclusion

    The PFMS has revolutionized the ways public finances are managed in the country. With constant improvement and increasing coverage, the scope of PFMS is ever-increasing. Going ahead, PFMS will not only be seen as a tool for managing planned expenditure but will also add new meanings to Direct Beneficiary transfers, data-driven cash management, and e-Governance in India.

  • [pib]Rajasthan becomes the 5th State to complete ULB reforms

    Rajasthan has become the 5thState in the country to successfully undertake Urban Local Bodies (ULB) reforms stipulated by the Department of Expenditure, Ministry of Finance and has thus become eligible for additional reform linked to borrowing.

    Which are the four other States?

    : They are Andhra Pradesh, Madhya Pradesh, Manipur and Telangana, who have completed ULB reforms.

    Now try this PYQ:

    Q.The Constitution (Seventy-Third Amendment) Act, 1992, which aims at promoting the Panchayati Raj Institutions in the country, provides for which of the following?

    1. Constitution of District Planning Committees.
    2. State Election Commissions to conduct all panchayat elections.
    3. Establishment of State Finance Commissions.

    Select the correct answer using the codes given below:

    (a) Only 1

    (b) 1 and 2 only

    (c) 2 and 3 only

    (d) 1, 2 and 3

    What are the ULB reforms?

    The four citizen-centric areas identified for reforms are:

    1. Implementation of One Nation One Ration Card System
    2. Ease of doing business reform
    3. Urban Local body/ utility reforms
    4. Power Sector reforms.

    The set of reforms stipulated by the Department of Expenditure are:

    (a) The State will notify:

    • Floor rates of property tax in ULBs which are in consonance with the prevailing circle rates (i.e. guideline rates for property transactions) and;
    • Floor rates of user charges in respect of the provision of water supply, drainage, and sewerage which reflect current costs/past inflation.

    (b)   The State will put in place a system of periodic increases in floor rates of property tax/ user charges in line with price increases.

    Why need such reforms?

    • Reforms in ULBs and the urban utility reforms are aimed at the financial strengthening of ULBs to enable them to provide better public health and sanitation services to citizens.
    • Economically rejuvenated ULBs will also be able to create good civic infrastructure.

    Back2Basics: Municipal Governance in India

    • Municipal or local governance refers to the third tier of governance in India, at the level of the municipality or urban local body.
    • Urban Local Bodies (ULBs) are small local bodies that administer or govern a city or a town of a specified population.
    • They are vested with a long list of functions delegated to them by the state governments.
    • These functions broadly relate to public health, welfare, regulatory functions, public safety, public infrastructure works, and development activities.
    • There are several types of Urban Local Bodies in India such as Municipal Corporation, Municipality, Notified Area Committee, Town Area Committee, Special Purpose Agency, Township, Port Trust, Cantonment Board, etc.

    Development through history

    • It has existed since the year 1687, with the formation of Madras Municipal Corporation, and then Calcutta and Bombay Municipal Corporation in 1726.
    • In the early part of the nineteenth century, almost all towns in India had experienced some form of municipal governance.
    • In 1882 the then Viceroy of India, Lord Ripon, known as the Father of Local Self Government, passed a resolution of local self-government which lead to the democratic forms of municipal governance in India.
    • In 1919, a Government of India Act incorporated the need of the resolution and the powers of democratically elected government were formulated.
    • In 1935 another Government of India act brought local government under the preview of the state or provincial government and specific powers were given.

    Changes after the 74th Amendment (1992)

    • It was the 74th amendment to the Constitution that brought constitutional validity to municipal or local governments.
    • Until amendments were made in respective state legislation on an ultra vires (beyond the authority) basis and the state governments were free to extend or control the functional sphere.

  • Back in news: DNA Bill, 2019

    Noted Parliamentarians have filed a dissent to the Parliamentary Standing Committee’s report on DNA Technology (Use and Application) Regulation Bill 2019.

    Q. A statutory protection for private data is necessary for the enforcement of DNA Technology (Use and Application) Regulation Bill, 2019. Critically analyse.

    What is the news?

    • The finalized Draft Report recognizes the potential dangers of indexing the DNA profiles of non- convicts, especially convicts and suspects, it has still retained these objectionable provisions.
    • These MPs have claimed that the Bill does not take into account public concerns over privacy violations and targets Dalit, Muslims and Adivasis by way of DNA sample collection.
    • The fear is that the law could be used for caste or community-based profiling.

    Other issues

    • The bill would not be a panacea to the problems of an inadequate criminal justice system, the MPs stressed.
    • He flagged the example of the United Kingdom, where the number of crimes solved by DNA evidence had been reducing even though the number of profiles in the system was going up.

    DNA Technology (Use and Application) Regulation Bill, 2019

    • The primary intended purpose for the enactment of the bill is for expanding the application of DNA-based forensic technologies to support and strengthen the justice delivery system of the country.
    • The utility of DNA based technologies for solving crimes, and identifying missing persons, is well recognized across the world.
    • Other aims include Speedier justice delivery and an Increased conviction rate.
    • Bill’s provisions will enable the cross-matching between persons reported missing and unidentified dead bodies found in various parts of the country, and also for establishing the identity of victims in mass disasters.
    • By providing for the mandatory accreditation and regulation of DNA laboratories, the Bill seeks to ensure the data remain protected from misuse or abuse in terms of the privacy rights of our citizens.
    • The Bill has two major components: the DNA databanks and the DNA Regulatory Board.

    Criticisms of the Bill

    Matter of Consent

    • Written consent is required from everyone for their DNA samples to be collected, processed, and included in the database except for those who have committed crimes with a punishment of 7+ years or death.
    • However, similarly, specific instruction is missing for the collection of DNA samples for civil matters.
    • Such matters include parentage disputes, emigration or immigration, and transplantation of human organs.
    • The Bill also doesn’t state that the consent has to be voluntary.

    Civil Disputes

    • It is not clear if DNA samples collected to resolve civil disputes will also be stored in the databank (regional or national), although there is no index specific for the same.
    • If they will be stored, then the problem cascades because the Bill also does not provide for information, consent, and appeals.
    • If a person’s DNA data has entered the databank, there is no process specified by which they can have it removed.
    • All of these issues together could violate the right to privacy.

    The authenticity of DNA Labs

    • There’s also the question of whether the DNA labs accredited by the Regulatory Board are allowed to store copies of the samples they analyze.
    • And if so, how the owners of those samples can ensure the data is safe or needs to be removed from their own indices.
    • It’s unclear if the Regulatory Board will oversee other tests performed at the accredited labs.
    • This could become necessary because, unlike one’s biometric data or PAN number, the human genome contains lots of information about every individual.

    Overreaching access to identity

    • So a test undertaken to ascertain a person’s identity by analyzing her DNA will in the process also reveal a lot of other things about that person, including information about their ancestry i.e. information that the individual has a right to keep private.
    • The Bill does not specify which parts of an individual’s DNA can be analyzed to ascertain their identity.
    • The more parts are subjected to analysis, the more conclusively a person’s identity can be established.
    • But this can’t be used as a license to parse more than is necessary because then the DNA lab is also likely to reveal more information than it has the right to seek.

    The way forward: Data protection

    • The bill can become oppressive without a robust data protection law.
    • Statutory protection for private data is critical because it provides a mechanism for enforcement of rights, grievance redressal, and independent oversight.
    • When the data being collected is as sensitive as DNA, it requires additional protection.

  • What is the ‘Top 25’ drive initiated by Mumbai police?

    The Mumbai police have started a drive titled ‘Top 25’ aimed at keeping under check history-sheeters and those they believe could create trouble.

    Preventive detention laws in India have come to be associated with gross and frequent misuse.

    What is the ‘Top 25’ drive of the Mumbai police?

    • The Mumbai police commissioner has asked all police stations in the city to make a list of the “top 25” criminals and ask them to sign a bond of good behavior failing which they would have to pay a fine.
    • The aim is to rein in criminal elements and those the police believe could create a law and order problem in the city.
    • While this practices that is termed “chapter proceedings” has been followed in the past, the amount a person would usually forfeit was around Rs 10,000 – Rs 15,000.
    • Now, the amount has been raised up to Rs 50 lakh.

    How is the police calculating the surety amount now?

    • The police are now going through the bank details and tax returns of the person and the surety amount is set in accordance with the annual income of the offender or his family.
    • The police believe that the threat of having to pay a high amount will act as a deterrent and that a few thousand as surety amount did not have the desired effect.

    What are Chapter Proceedings?

    • Chapter proceedings are preventive actions taken by the police if they fear that a particular person is likely to cause law and order trouble.
    • These proceedings are unlike punitive action taken in case of an FIR with an intention to punish.
    • Here, the police can issue notices under sections of the Code of Criminal Procedure to ensure that the person is aware that creating a nuisance could result in action against him.
    • Recently, the Mumbai police initiated chapter proceedings against an extremely chauvinistic news reporter and media head.

    Rights of the accuse

    • On receiving such notice, a person can appeal before the courts.
    • In fact, in the past, courts have come down strongly against chapter proceedings in some cases.
    • In 2017, while striking down a notice issued to the owner of a bar, the Bombay High Court said: “chapter proceedings cannot be initiated on the basis of an incident of trivial nature”.

    Back2Basics: Arrest vs. Preventive Detention

    An ‘arrest’ is done when a person is charged with a crime. An arrested person is produced before a magistrate within the next 24 hours. In case of preventive detention, a person is detained as he/she is simply restricted from doing something that might deteriorate the law and order situation.

    • Article 22 of the Indian Constitution provides safeguards against the misuse of police powers to make arrests and detentions.
    • Clause (2) of Article 22 reads that every person who is arrested and detained in custody shall be produced before the nearest magistrate within a period of twenty-four hours of such arrest excluding the time necessary for the journey.
    • Clause (4) of the article states that no individual can be detained for more than 3 months unless a bench of High court judges or an Advisory board decides to extend the date.
    • Clause (5) states that the detained individual should be made aware of the grounds he/she has been detained (in pursuance of the order) and should provide him/her with an opportunity of making a representation against the case.
    • Parliament may by law prescribe the circumstances under a person may be detained for a period longer than three months under any law.

  • Amendment to the CSR Rules

    The Corporate Affairs Ministry has amended the rules for Corporate Social Responsibility (CSR) expenditure to allow companies to undertake multi-year projects, and also require that all CSR implementing agencies be registered with the government.

    Q.What do you mean by CSR? Discuss the role of CSR activities in social transformation.

    What is Corporate Social Responsibility (CSR)?

    • CSR is a type of business self-regulation that aims to contribute to the societal goals of a philanthropic, activist, or charitable nature by engaging in or supporting volunteering or ethically-oriented practices.
    • It rests on the ideology of “give and take” i.e. to take scarce resources from the environment for running a business, and in turn to contribute towards economic, social, and environmental development.

    CSR in India

    • India is the first country in the world to make corporate social responsibility (CSR) mandatory, following an amendment to the Companies Act, 2013 in April 2014.
    • Businesses can invest their profits in areas such as education, poverty, gender equality, and hunger as part of any CSR compliance.

    All companies with a net worth of Rs 500 crore or more, a turnover of Rs 1,000 crore or more, or net profit of Rs 5 crore or more, are required to spend 2 per cent of their average profits of the previous three years on CSR activities every year.

    What are the new amendments?

    • The amended CSR rules allow companies to set off CSR expenditure above the required 2 percent expenditure in any fiscal year against required expenditure for up to three financial years.
    • There lies an ambiguity whether the rule would apply for expenditure undertaken prior to the amendment.
    • The government is thus allowing corporates that have in good faith incurred excess CSR expenditure in the past to set it off against future CSR expenditure requirements.

    Other key changes

    • The amended rules require that any corporation with a CSR obligation of Rs 10 crore or more for the three preceding financial years would be required to hire an independent agency to conduct an impact assessment of their entire project with outlays of Rs 1 crore or more.
    • Companies will be allowed to count 5 percent of the CSR expenditure for the year up to Rs 50 lakh on impact assessment towards CSR expenditure.

    What are the changes required for implementing agencies?

    • The new amendment restricts companies from authorizing either a Section 8 company or a registered public charitable trust to conduct CSR projects on their behalf.
    • A Section 8 company is a company registered with the purpose of promoting charitable causes, applies profits to promoting its objectives, and is prohibited from distributing dividends to shareholders.
    • Further, all such entities will have to be registered with the government by April 1.

    Impact of the move

    • The change would impact CSR programs of a number of large Indian companies that conduct projects through private trusts.
    • It would mean such private trusts would either have to be converted to registered public trusts or stop acting as CSR implementing agencies.

  • What is Herd Immunity?

    The initial findings of the fifth round of serological survey conducted in Delhi suggest that over 56 percent of the people have developed antibodies against Covid-19 implying achievement of herd immunity.

    Herd Immunity

    • Herd immunity is when a large number of people are vaccinated against a disease, lowering the chances of others being infected by it.
    • When a sufficient percentage of a population is vaccinated, it slows the spread of disease.
    • It is also referred to as community immunity or herd protection.
    • The decline of disease incidence is greater than the proportion of individuals immunized because vaccination reduces the spread of an infectious agent by reducing the amount and/or duration of pathogen shedding by vaccines, retarding transmission.
    • The approach requires those exposed to the virus to build natural immunity and stop the human-to-human transmission. This will subsequently halt its spread.

    Sero-surveys in Delhi

    • The results of the latest serosurvey in Delhi have led researchers and experts to surmise that a large section of the city’s population has already developed antibodies against Covid-19.
    • The presence of antibodies among a large percentage of the population could be a reason for the decline in the daily number of Covid-19 cases.
    • As more people are able to resist infection, it will help to break the chain of transmission of the virus.
    • Five serological surveys have been carried out in Delhi so far, including the present one, which was conducted in January.
    • The survey conducted by NCDC in July last year suggested the presence of antibodies in 23 percent of those surveyed.
    • In August, the survey conducted by the Delhi government showed 29.1 percent had antibodies.

    The relevance of such surveys

    • Carrying out repeated serological surveillance on the same population gives an idea of how the disease is behaving.
    • It is always good to have surveillance regularly to understand the trends.
    • Having robust surveillance is always beneficial, it may not be too close, but it may help us in giving an idea, even of the natural history of the disease.

    What do the data suggest about herd immunity?

    • Many researchers believe that if 60 percent or more of the population has developed antibodies against Covid-19, there is a possibility of acquiring herd immunity.
    • In Delhi, it is quite indicative, as the number of cases is also going down. This shows that we are moving closer towards acquiring herd immunity.

  • Leveraging government-private thought partnerships

    Thought partnership between government and the external players can aid in informed policymaking. The article deals with these issues and suggest forging of more of such partnerships. 

    Government working together with external partners

    • Policymaking requires multiple rounds of consultations and co-working with different entities, including collaboration between the government and external partners.
    • Over the last few years, there has been increasing evidence of the government and external partners working together on complex policy problems.
    • The government has formalized the induction of private individuals into the system by opening up lateral entry.
    • Several central government ministries and entities, such as NITI Aayog, routinely recruit private individuals as consultants, officers on special duty, or young professionals.
    • Given the staggering vacancies in the central government, such support is critical since civil servants are generally overburdened and under-resourced.

    What is thought partnership and how it works

    • Thought partnerships are a structured mechanism for private entities to lend relevant strategic expertise to the government on policy design, evaluation, and implementation.
    • It is also not always feasible for the government itself to fund projects involving private partners, more so when such projects are unconventional thought partnerships.
    • Several domestic and international philanthropies and impact investing firms are already investing in critical sectors in developing countries including India.
    • However, much of this funding goes into supporting projects or interventions that work in limited, contextual settings rather than systemic or sectoral transformation programs.
    • It is here that philanthropies and impact investing firms can make a huge difference.

    Past thought partnerships

    • In 2005, the Ashok Lahiri Committee report stated that there was not enough knowledge about external capital flows and controls in India.
    • The committee’s recommendation resulted in the establishment of the National Institute of Public Finance and Policy, Department of Economic Affairs research program.
    • The program led to the creation of a rich body of world-class research on capital controls and flows in India that was used to inform government policy on the matter.
    • In 2015, the Ministry of Corporate Affairs constituted a research secretariat headed by the Vidhi Centre for Legal Policy, to support the Companies Law Committee to make “informed decisions”.
    • The National Institute of Financial Management is working with the Department of Economic Affairs to provide legal research and technical assistance on Indian and foreign financial markets, policy analysis, formulation as well as the conduct of impact assessment studies on decisions taken by the Securities and Exchange Board of India.

    Consider the question “What is thought partnership and how it could help in making informed policymaking? What are the challenges in forging thought partnerships?”

    Conclusion

    It is in the public interest that more thought partnerships are forged and funded to channel external expertise and skills towards finding scalable solutions to the pressing policy challenges the country faces.