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Despite Growth, India Can Provide Services to its Poor

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Information about Despite Growth, India Can Provide Services to its Poor
Education

Published on May 1, 2008

Author: rahulogy

Source: slideshare.net

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" One of the Brilliantly Researched Presentation of all times..." - Nafisa Ma'm - GIDF Ahmedabad

These slides were presented at National Economic Planning 2008 @ IIPM Ahmedabad by Sparrow & Turner Group consits of Balasubramanian V.A, Rahul Guhathakurta, Samir Patel, Simit Shah.

Individual Scores @ NEP 2008 - IIPM Ahmedabad
1. Rahul Guhathakurta - 87
2. Balasubramanian V.A - 85
3. Simit Shah - 79
4. Samir Patel - 77

* All marks are obtained out of 100 including project report marks.
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Despite Growth, India CAN provide services to Poor

“ Blind Man” “ I am Blind… Please Help Me… ”

Source: Census of India Annexure III, GOI 2001 “ Poverty has induced unwanted regional imbalance”

Why services are failing for poor people? Public spending usually benefits the rich, not the poor. Money fails to reach frontline service providers. Service quality is low for poor people

Public spending usually benefits the rich,

not the poor.

Money fails to reach frontline service providers.

Service quality is low for poor people

But services can work for poor… By empowering poor people to Monitor and discipline service providers Raise their voice in policymaking By strengthening incentives for service providers to serve the poor

By empowering poor people to

Monitor and discipline service providers

Raise their voice in policymaking

By strengthening incentives for service providers to serve the poor

Propositions given by various Whitepapers More Land Reform More rapid poverty reduction More rapid bank branch expansion More female literacy More rural industrialization Ravallion and Datt (2002) Foster and Rosenzweig (2003) Burgess and Pande, (2000) Besley and Burgess, QJE, 2000 More rapid poverty reduction More rapid poverty reduction More rapid poverty reduction

Framework of Accountability Policy Makers Poor People Providers Source: World Development Report 2004

Concept of ‘Good Governance ’ Participation Transparency Efficiency Equity Accountability Gender-sensitivity Source: Empowering the Poor, Angelo Bonfiglioli UNCDF Senior Technical Advisor, 2003

Participation

Transparency

Efficiency

Equity

Accountability

Gender-sensitivity

Yardsticks of Budget Planning Proportionate Allocation of funds based on development oriented challenges. Eventual Effectiveness of Allocated Funds Performance Oriented Funding

Proportionate Allocation of funds based

on development oriented challenges.

Eventual Effectiveness of Allocated Funds

Performance Oriented Funding

WB Support to Change Policies into live Projects

DPC – A Decentralized Approach Tamil Nadu Rs 500 Crore Corpus Fund for District Planning Committee Source: All Villages Anna Renaissance Scheme – 2001,Tamil Nadu State Government 3.5 crore, constituting 56% of people live in villages V-1 V-4 V-2 V-3 Untied funds at local level = Rs.20 Lakh per village

Providers Public Sector Not-for-Profit Sector Private, for-profit Sector Ministry Department Agency/Bureau Public sector autonomous corporation Community owned Not-for-profit Organization Small for-profit firms Large for profit firms

Ministry

Department

Agency/Bureau

Public sector autonomous corporation

Community owned

Not-for-profit Organization

Small for-profit firms

Large for profit firms

We need a frontline Provider who is capable has access to adequate resources & inputs is motivated to pursue achievable goals

is capable

has access to adequate resources & inputs

is motivated to pursue achievable goals

“ Third Party ” ? Who? De-concentration Devolution Delegation Privatization Source: Decentralization in India: Poverty, Politics and Panchayati Raj, Craig Johnson Department of Political Science University of Guelph, Ontario

De-concentration

Devolution

Delegation

Privatization

Policymakers & Providers Services run by government ( control/comparison, CC ) • NGO manages district, cannot hire and fire (but can transfer staff), ( contracting in, CI ) • NGO can hire and fire, transfer staff, set wages, procure drugs, etc. ( contracting out, CO ) Source: World Development Report 2001 – Attacking Poverty

Educo Program – El Salvador EDUCO promoted parental involvement… … which boosted student performance ( % increase in test scores per visit ) Source: Making Services Work for Poor People Shantayanan Devarajan and Ritva Reinikka

Routes of Accountability

Eight Ways of Delivery & Monitoring Source: World Development Report 2004 Government provision or contracting Central-government provision Pro-poor politics Client power—experiment with contracts. Client power—experiment with providers Pro-rich politics Homogeneous clients De-concentrated central or local government provision with contracting Local or de-concentrated central government provision Pro-poor politics Client power—experiment with community control Client power—imitate market Pro-rich politics Heterogeneous clients Easy to monitor Difficult to monitor

Decentralization is a Key Local Policy Makers Poor People Providers Central Policy Makers The more people differ in their desires, the greater the benefits from decentralizing service provision.

Do’s & Don'ts Don’ts • Do not leave it to the private sector • Simply increasing public spending is not the solution • Do not depend on technocratic solutions Do • Expand information • Tailor service delivery arrangements/ customization

Biggest Qs on this issue? Managerial Reforms or Institutional Reforms or both? MRO – Maintaining ,Repairing or Overhauling? Centralize or Decentralize or both?

Managerial Reforms or Institutional Reforms or both?

MRO – Maintaining ,Repairing or Overhauling?

Centralize or Decentralize or both?

Our initiative towards sustainable development “ It would be nice if the poor were to get even half of the money that is spent in studying them.”

Bibliography World Development Report 2004 : Making Services work for poor World Development Report 2001: Attacking Poverty Indian Economic Review, Feb 2008 Overview of Rural Decentralization in India, Vol. 1, September 27, 2000 Empowering the Poor : Local Governance for Poverty Reduction ,Angelo Bonfiglioli UNCDF Senior Technical Advisor, United Nations Capital Development Fund. FARM PRODUCTIVITY AND RURAL POVERTY IN INDIA, Gaurav Datt and Martin Ravallion.

World Development Report 2004 : Making Services work for poor

World Development Report 2001: Attacking Poverty

Indian Economic Review, Feb 2008

Overview of Rural Decentralization in India, Vol. 1, September 27, 2000

Empowering the Poor : Local Governance for Poverty Reduction ,Angelo Bonfiglioli UNCDF Senior Technical Advisor, United Nations Capital Development Fund.

FARM PRODUCTIVITY AND RURAL POVERTY IN INDIA, Gaurav Datt and Martin Ravallion.

THANK YOU!

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