Transforming Jharkhand
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Report of the Chief Minister ’s Committee for the Development of Jharkhand TRANSFORMING JHARKHAND THE AGENDA FOR ACTION Report of the Chief Minister’s Committee for the Development of Jharkhand Bibek Debroy, Laveesh Bhandari and Vishal Singh April 7, 2011 Transforming Jharkhand – The Agenda for Action Contents Executive Summary ................................................................................................................................. 5 Section 0: Preface ................................................................................................................................. 15 Section 1: Jharkhand – Where Do We Stand Today?............................................................................ 16 Section 2.1: Ensuring Growth ............................................................................................................... 25 Section 2.2: The Peoples’ Development Agenda .................................................................................. 31 Section 2.3: The Inclusion Agenda ........................................................................................................ 33 Section 2.4: Abdication by the State ..................................................................................................... 34 Section 3.1: Reinventing the Government – Augmenting Human Resources ...................................... 36 Section 3.2: Reinventing the Government – Incentivizing Human Resources ..................................... 39 Section 3:3: Reinventing the Government – Prioritization of Resources ............................................. 45 Section 3.4: Reinventing the Government – Governance and E-Governance ...................................... 51 Section 4: Law and Order ...................................................................................................................... 55 Section 5.1: The Social Sector – Introductory Comments .................................................................... 60 Section 5.2: BPL, PDS, Annapurna, Antyodaya, ICDS, MDMS ............................................................... 63 Section 5.3: Health ................................................................................................................................ 66 Section 5.4: MGNREGS .......................................................................................................................... 68 Section 6: Urbanization Issues .............................................................................................................. 71 Section 7.1: Physical Infrastructure – Roads ......................................................................................... 76 Section 7.2: Physical Infrastructure – Electricity ................................................................................... 82 Section 7.3: Physical Infrastructure – Water ........................................................................................ 92 Section 7.4: Physical Infrastructure – Rural Housing ............................................................................ 95 Section 8.1: Increasing the Efficiency of Inputs – Labour ..................................................................... 96 Section 8.2: Increasing the Efficiency of Inputs – Land ....................................................................... 107 Section 8.3: Increasing the Efficient of Inputs – Forests ..................................................................... 112 Transforming Jharkhand – Agenda for Change 3 Section 8.4: Increasing the Efficiency of Inputs – Mines .................................................................... 112 Section 8.5: Increasing the Efficiency of Inputs –Capital/Entrepreneurship ...................................... 118 Section 9: Fiscal Issues ........................................................................................................................ 122 Section 10: In Conclusion .................................................................................................................... 125 Appendix ............................................................................................................................................. 132 Transforming Jharkhand – Agenda for Change 4 Transforming Jharkhand – The Agenda for Action Executive Summary 1. Jharkhand is a state with immense opportunities but unmet expectations. These opportunities can be unlocked with a comprehensive reform process that has the following elements. a. Have an inclusive agenda of development where the requirements of the masses are at the forefront of administrative action. This includes employment and self- employment avenues, basic needs and requirements, and safety and security. b. Strengthen and make more efficient the ability of its administration to deliver a good environment for (i) living and (ii) earning. This requires creating an economic ecosystem that facilitates entrepreneurship for large, medium, small and micro enterprises; both in the organized and unorganized domains. c. Ensure a 360 degree monitoring of government actions; this requires monitoring within the government as also by outside entities. The government and its senior functionaries need to be answerable to the people of the state. 2. To reiterate, the Committee believes that the only way by which long term economic development can be sustained is if all segments of society are a part of that process. Hence development should not be confused with industrialization or corporatization. Industrialization is but one element of a much larger process of improvement in lifestyles, 7opportunities and the environment. 3. In line with these objectives the report establishes the following principles. a. The first set of reforms should be able to generate improvements in growth and also government tax and non tax revenues within a short span of time. These can then be used to invest in efficiency improvements. A virtuous cycle needs to be created, with benefits from actions in one stage used to generate greater benefits in the next. b. The ability to move on a path of greater progress is to a large extent dependent upon the ability of the government functionaries to perform individually and as a group. Hence improvement in administrative abilities of the state forms a significant part of this report. c. All round progress requires all round action; however human capital and expertise is limited both within and outside the government, and will take some time to build. Hence the state government needs to partner with organizations outside the state, these include sector specialist organizations such as NSDC, ILFS, NHB, IDFC, etc. At the same time Public Private Partnerships need to be accelerated in all domains. d. Decentralization is an established principle and needs to be made an integral part of the government’s reform process. Greater delegation of responsibilities is required towards the local bodies (both ULBs and PRIs). Within the government lower tiers need to be provided greater decision-making powers. Moreover, many of the Transforming Jharkhand – Agenda for Change 5 functions and responsibilities can be delegated to private entities whether they are commercial, cooperatives and communities or non-profit organizations. e. Civil society needs to be strengthened and that implies that the government needs to make interaction between NGOs and government functionaries an integral part of governance. f. Greater information availability and citizen redressal is another synergistic component of this larger process. E-governance, information boards in rural areas, annual development reports; independent monitoring of government actions and their impact is another set of reforms that will be critical in guaranteeing sustainability of reforms. 4. Rapid economic growth is both an objective and an outcome of people oriented reforms. The committee estimates that with no reforms growth till 2025 will stagnate at about current levels, with limited reforms would be about 10 percent, but with deep structural reforms can be in the region of 15 percent annually. High growth will generate additional tax revenues that are many times the current tax revenues. This in turn can enable a far deeper set of investments in enhancing welfare and development expenditures. 5. The various sections recommend the following specific actions. For greater details refer to the indicated paragraph number in the main text. Set targets for improvements in human development outcomes (poverty, education, health) that can be monitored (2.2.1) Get JPSC and JSSC to prepare list of posts required in each Ministry/Department, including PRIs/ULBs (3.3.1) Rationalize departments and streamline them (3.1.3 and 3.3.1) Devolution of functions to local bodies (3.1.3) Redefined role of secretaries greater delegation to lower levels in hierarchy (3.1.3) Central deputations to be controlled better (3.1.3) Increasing efficiencies in JPSC such as through objective tests (3.1.4) Incorporate transparent definition of domicile and criteria for qualification (3.1.4) JPSC to recruit higher level posts (3.1.5) JSSC to recruit lower level posts (3.1.5) Staggered (not in one go) appointments across all domains (3.1.6) Contract technically qualified people at various layers of the government (3.1.6) Reinventing role of DC towards welfare and development (3.2.1) Creating separate position for revenue and magisterial functions (3.2.1) Announce clear policy on promotions