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158415242.Pdf Information Technology Governance and Local Public Financial Management Reform: The Case of Bangalore, India by Mitchell J. Cook MASSACHUSETTS INSTITUTE OF TECHNOLOGY B.A. Spanish Southern Nazarene University (2004) FEB 15 2018 M.A. International Affairs LIBRARIES The New School (2009) ARCHIVES Submitted to the Department of Urban Studies and Planning in partial fulfillment of the requirements for the degree of Doctor of Philosophy in Urban and Regional Planning at the MASSACHUSETTS INSTITUTE OF TECHNOLOGY February 2018 2018 Mitchell J. Cook. All Rights Reserved The author here by grants to MIT the permission to reproduce and to distribute publicly paper and electronic copies of the thesis document in whole or in part in any medium now known or hereafter created. Signature redacted Author Mitchell Cook Department of Urban Studies and Planning January 8, 2018 Signature redacted Certified by Professor Bishwapriya Sanyal Department of Urban Studies and Planning Dissertation Supervisor Signature redacted Accepted by__ Professor Lawrence Vale Chair, Ph.D. Committee Department of Urban Studies and Planning I Information Technology Governance and Local Public Financial Management Reform: The Case of Bangalore, India by Mitchell J. Cook Submitted to the Department of Urban Studies and Planning on January 8, 2018 in partial fulfillment for the Degree of Doctor of Philosophy in Urban and Regional Planning ABSTRACT Decentralization policy in India has coalesced in recent years around interrelated concerns over the transparency of local government financial management and reporting systems and the capacity of urban local bodies to implement modern performance budgeting and accrual accounting structures. This dissertation examines the relationship between these policy concerns in the case of Bangalore and looks deeply into the role of information technology providers in advocating for greater local government financial transparency and accountability through financial management information system projects. Utilizing the concept of legitimacy games I find that mechanisms to support coordination in project implementation are subject to partially predictable but ultimately uncontrollable contingent interactions of norms, values, and structural arrangements that surround government financial management information systems. The latter are largely unstable over time given frequent changes to administrative personnel and the broader authorizing environment. Consequently, coordination within information technology project implementation spurs competition in legitimacy games between information technology subcontractors and systems. Under such conditions, forms of collective action around political accountability in urban governance spur a double movement of information democratization and information closure in entrepreneurial issue networks. As a result, the extent of effective local government financial transparency becomes increasingly dependent on the internal characteristics and relative power of information gatekeepers. The findings of the case study contribute to new knowledge on the relationship between information technology and local public financial management procedures and practices. The notion of legitimacy games draws stark contrast to conventional assumptions surrounding competition in public sector outsourcing arrangements, namely that it is driven by the desire for larger contracts so as to maximize profits or that it bids down prices in government outsourcing. The case illustrates how behavioral incentives to link financial management information systems to public transparency and accountability mechanisms emerge in highly localized confrontations not as a concerted response to national policy. The real effect of such technologies on local state capacity has been limited in the case of Bangalore. In order to achieve more transformational impact, policymakers, public managers, and technology providers must carefully consider how to handle large volumes of financial information corresponding to irregular transactions. Thesis Supervisor: Bishwapriya Sanyal Title: Ford International Professor of Urban Development and Planning 3 Acknowledgements First, I would like to thank the government officials, engineers, revenue officers, and other participants in the study who graciously gave of their time during my fieldwork in Bangalore. They were my teachers and their stories of success, struggle, and tinkering gave me a temporary but powerful glimpse of the ins and outs of technology and financial management in urban governments in India. In particular I am indebted to individuals at the Indian Centre for Social Transformation. R. Sri Kumar and Raja Seevan opened up their organization and work to critical scrutiny by a stranger. I will never forget the Saturday morning I strolled into their office hoping to simply walk out with some basic public finance data. Instead, I was treated to eight hours of sweeping and incisive details on the nature of change in local government. The dedicated staff at the Indian CST - Uzma, Vikram, Prashant, D'Souza, and others - was exceedingly helpful, gracious, and kind. I would like to thank my dissertation committee - Bish Sanyal at MIT, Paul Smoke at NYU, and Bob Buckley at the New School and NYU Abu Dhabi - for their support over the years that it took to design and complete this dissertation project. I am exceedingly grateful for Paul and Bob, who supported me from outside MIT during a time of considerable transition in the International Development Group at DUSP. I am also grateful to other faculty and staff at DUSP - Gabriella Carolini, Balakrishnan Rajagopal, Yu-Hung Hong, Kirsten Greco, and Sandra Wellford - for academic and administrative support during my time at MIT. I owe much to Michael Cohen at the New School, who encouraged me to apply to MIT and has been a mentor and intellectual soundboard for nearly a decade. Om Prakash Mathur was a source of ideas and deep knowledge during the initial stages of the research. I was fortunate to have received financial and organizational support for my research from the Department of Urban Studies and Planning (MIT), the Fulbright-Nehru Student Research Program sponsored by the United States India Education Foundation (USIEF), the Center for International Studies at MIT, and the Priscilla King Gray Public Service Center at MIT. Chetan Vaidya at the Delhi School of Architecture and Planning graciously offered to serve as an institutional affiliation in India. Some of the fondest memories I will hold of my time at MIT are of the friends I made in the department. I was inspired and awed by (in no particular order!) Devanne Brookins, Kian Goh, Alpen Sheth, Karthik Rao Cavale, Lyndsey Rolheiser, Tony Vanky, Aditi Mehta, Lili Knorr, and Lily Pollans and am grateful for their wit, humor, and collegiality over the years. I owe an enormous debt of gratitude to Eric Chu which is far too long to list here. During my time in Bangalore, Arpan, Anusha, Gaurav, Sheela, Apeksha, Subesh, Uma, Jamie, Tausif, Alice, Maya, and Scott each contributed in unique ways to lifelong memories. Closer to home I would be remiss not to thank friends in New York - John and John, Shu-Ping, Jay, and Matt - for coming to visit me in India. In addition, gratitude is owed Peter and Scott, Matt and Miska, Adam and Armando, Nealon and Cezanne, and Cyril for the endless supply of gaiety you bring to life. I would never have been able to do this without the love and support of family - Michael, Kim, Misty, Chad, Maegan, and Colby - all of whom are relieved I now have one less excuse to miss family events. Janae and David, too. And all the kids! Daxon, Denton, Londyn, Beckett, Shiloh, Elijah and Finley bring so much joy to my life. I am forever grateful to my parents, Julie Hodge and Randy Cook, who have given their time, money, and love to ensure I had the opportunity to pursue my dreams even as they took me further and further away from them. "Oh the places you'll go," indeed. Finally, I've saved the best for last. Words cannot do the job of accurately expressing the profound gratitude and love I have for my husband, Paul Neenos, who put his career on hold and moved to India for my fieldwork. His patience and belief in me were essential to completing the dissertation. 4 From lending a listening ear to proofreading drafts, his support has been unceasing and unwavering every step of the way. It is the greatest privilege in the world to spend life by his side. 5 Table of Contents TABLES AND FIGURES .......................................................................................................................... 8 COMMON ABBREVIATIONS.................................................................................................................9 CHAPTER 1: INTRODUCTION............................................................................................................10 1.1 A NEW IMPERATIVE FOR MUNICIPAL FINANCE REFORM IN INDIA ................................................ 10 1.2 INFORMATION TECHNOLOGY AND LOCAL FINANCIAL MANAGEMENT IN INDIA ........................... 16 1.3 T HE C A SE OF B A NGA LO RE ................................................................................................................ 19 1.4 R ESEA RCH PRO BLEM ........................................................................................................................ 26 1.5 T HEORETICAL A PPROACH ................................................................................................................
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