Sam Pitroda for NIHA with Cabinet Rank… It is reported that Sam Pitroda may be appointed to head National Information Highway Authority (NIHA) with cabinet rank like Nandan Nilekani. That is a welcome move. In my blog dated July 8, 2009 on the budget, I had mentioned about “privatization of CEOs” for government projects and need to bring in people like Nandan Nilekani for large ticket government projects for effective implementation. In another blog on disinvestment I had mentioned about need to bring in people like Sam Pitroda to head Air India for restructuring purposes. I am happy to know that Mr.Sam Pitroda is tipped to head NIHA with cabinet rank. What I can see is a clear emergence of “A Creamy Layer” of executive wing of the cabinet manned by professionals. Hitherto, occasionally, even professionals have been made cabinet rank ministers for running ministries as was the case with PM himself. However, first time we see a distinct difference in role of a cabinet rank minister with concern for accountability for results. One would say that the cabinet ministers are all accountable. Well, yes! But there seems to be a sense of helplessness when it comes to performance evaluation and accountability of political class. This gets overshadowed by political considerations and compulsions of coalition. With cabinet ministers like Nandan Nilekani and Sam Pitroda the focus is on getting the best people for executing most difficult and path breaking government projects. National Information Highway Authority would deal with einitiatives of the government including egovernance, elearning, ehealth. It will establish national connectivity between India and Bharat. The digital divide is likely to be bridged providing for capturing more accurate data, implementation of projects, real time assessments and faster decision making. Integrity of data and speed of communications also means possibility of delegation of powers for implementation of projects cutting down the red tape. Each ministry functions with long terms plans as well as short term. But they are within ‘routine context” of a National 5 year Plan of the planning commission. In spite of all such plans and ministries, Rajiv Gandhi felt the need for his technology missions though they all were not necessarily successful. Rajiv Gandhi was looking at the essence of missionary zeal and sharp focus to execute the plans. Unfortunately, with the change of government, the plans are abandoned. Latest example is of national project for linking the rivers of north and south. Their foot prints are lost in the sands of time. These are the kind of projects which have the potential of a truly strategic lift off for the country. Be Unique ID Authority project or NIHA project, their strategic importance is very high for putting India into different trajectory of growth as a modern nation. In fact both of them are interlinked for mutual success. The ministries should not be burdened with such strategic projects since neither they have wherewithal to manage them nor political will. And yet these projects are highly critical for national development & growth. These
projects are needed by the nation, even if it is not on political agenda of any party for elections. A success or failure of any such project may not mean anything to common man and yet if not done it is a tremendous setback for the nation. The picture therefore emerging is that there should be a separate wing of cabinet for “Authorities” executing projects of truly strategic importance and far reaching consequences. They are not to be mixed up with the regulatory authorities. These projects are enablers for other ministries to implement their plans as detailed in National 5year Plans. Such projects should not be abandoned due to changes in government and must be guaranteed for completion by constitutional process. Since the ministers in charge of such projects are not elected representatives, they may be allowed to continue, even if there is a change in the government, till either their term is complete or the project is completed. We need similar treatment for projects in say agriculture & rural development. In UPA I and now in UPA II also, importance of agriculture was secondary to sports, or cricket, if I may say so. If Dr.Verghese Kurian was to head an “Authority” once again, we can have “White Revolution II ” which is needed. Or if Dr.M.S.Swaminathan could head an “Authority” to increase agricultural productivity, it can make considerable difference to our farmer’s lot (instead of loan waivers to avoid suicides). If an “Authority” on plasticulture is established on similar footing there would be tremendous potential for harnessing drip irrigation in the times of poor mansoons and increasing acreage under cultivation. We could just stop blaming El Nino every time and go on to cheer up farmers! Performance of power sector is poor with power generation lagging behind the targets with no major power plants commissioned since 2003. 1500 MW (largest Hydro Electric project in India) Nathpa Jhakri Power Project in Himachal Pradesh took 11 years to be completed in 2003 after planning for 30 years. Ultra Mega Power Projects (UMPP) have yet to kick off. We have perennial power shortages and black outs while we dream of making a Shanghai out of Mumbai. This is what happens if it is left to normal supervision of the concerned ministry. Any moves for addon cabinet minister? Any business organization has two distinct activities and therefore people to manage themone is strategic and the second operational or tactical. What we have had till now is governance in operational mode. Exceptionally, we have had few areas identified clearly with strategic importance such as “National Security Advisor” or “Special envoy of prime minister for Afghanistan”. Practically, every major and critical ministry has a scope to have another cabinet rank minister from privateprofessional category to transform the field and to raise the bar of performance. How is that for “Public Private Partnership”? By the time UPA II innings comes to a close, we should have fairly good experience and assessment of this model of executing projects of national importance. May be in future
we have key ministries split with cabinet rank ministers for strategic (professionals) and operational (political) goals for effective governance. As I can see the potential of this experiment, we may have to restructure the future cabinets on these lines for effective governance and delivery. If I may add, it would then be truly “inclusive” (of professionals) government. Dr. Man Mohan Singh has made path breaking decisions to induct Nandan Nilekani and now, as is reported, Dr. Sam Pitroda in waiting. May the breed of such performing authorities grow by the day! Vijay M. Deshpande Corporate Advisor, Strategic Management Initiative Pune August 13, 2009 Scroll Down for my other blogs Or Visit www.strami.com