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Report No. 35041-INNo. Report Report No. India35041-IN ReformingPublicServices inIndia India Reforming Public Services in India Drawing Lessons from Success Public Disclosure Authorized Public Disclosure Authorized February 28, 2006 Poverty Reduction and Economic Management Sector Unit South Asia Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Document of the World Bank Public Disclosure Authorized Public Disclosure Authorized HWSSB Hyderabad Water Supply and Sewerage Board VAO Village Accountant Officer IAS Indian Administrative Service VEC Village Education Committee IIM-A Indian Institute of Management, Ahmedabad VPT Village Public Telephones IIM-B Indian Institute of Management, Bangalore VSNL Videsh Sanchar Nigam Limited IS0 International Standards Organization WDP Women’s Development Program ITA Indian Telegraph Act WHO World Health Organization ITC India Tobacco Company WLL Wireless-in-local-loop JP Janpad Panchayat The World Bank Vice President: Praful C. Patel, SARVP Country Director: Michael F. Carter, SACIN Sector Director: Sadiq Ahmed, SASPR Task Manager: Vikram K. Chand, SASPR Acknowledgements This report has been prepared by Vikram K. Chand. It has benefited from several technical papers commissioned directly for the study by Suresh Balakrishan (Making Service Delivery Reforms Work: The Bangalore Experience), Subhash Bhatnagar (E-Seva in Andhra Pradesh), Jonathan Caseley (Registration Services in Maharashtra and Karnataka), Prema Clarke and Jyotsna Jha (Education Reform in Rajasthan), Sangeeta Goyal (Comparing Human Development Outcomes in Tamil Nadu and Karnataka), Sumir La1 (The Politics of Service Delivery Reform), Rahul Mukherjee (Telecom Reform), R. Sadanandan and N. Shiv Kumar (Hospital Autonomy in Madhya Pradesh), E. Sridharan (Electoral Financing), A.K. Venkatsubramanian (The Political Economy of Public Distribution in Tamil Nadu), and N. Vitta1 (Anti-Corruption). In addition, this report has profited from papers commissioned for the Shanghai conference on “Scaling up Poverty Reduction,” SASHD for its work on “Attaining MDGs in India,” and the Water and Sanitation Program (WSP), New Delhi for its Voice and Client Power (VCP) studies initiative. Pooja Churamani and Arindam Nandi provided research assistance for this report. Vidya Kamath provided administrative support. Helpful comments were provided by Shantayanan Devarajan, Chief Economist of the World Bank’s South Asia Region, as well as Shekhar Shah, Kapil Kapoor, and Stephen Howes of the World Bank. Peer reviewers for this report were M. Helen Sutch and Jose Edgardo Campos, both of the World Bank; Samuel Paul, Chairman, Public Affairs Center (PAC); and N.C. Saxena of the National Advisory Council. Many individuals from several states, including officials, scholars, and activists spent time with the team sharing their views. Without their generous help, this study would not have been possible. We are particularly grateful to P. I.Suvrathan, Additional Secretary, Department of Administrative Reforms and Public Grievances, Government of India, and R. Gopalakrishnan, Joint Secretary in the Prime Minister’s Office for providing written comments on this report. We are also grateful to B.K. Chaturvedi, Cabinet Secretary, for hosting a seminar to discuss this report. In addition, we would like to thank the Planning Commission for organizing a presentation on this report to its members. The report has also been presented at seminars organized by the La1 Bahadur Shastri National Academy of Administration, the Indian Institute of Public Administration, as well as the Center for Policy Research (New Delhi) and an NGO, Initiatives of Change. The final report has benefited greatly from these discussions. TABLE OF CONTENTS EXECUTIVE SUMMARY ......................................................................... i Chapter One :Introduction ...................................................................... 1 Chapter Two : Promoting Competition ...................................................... 7 India’s Telecom Revolution...................................................................... 7 Competition in Market Services to Farmers ................................................... 11 Chapter Three : Simplifying Transactions .................................................... 15 One-Stop Service Centers ........................................................................ 15 Andhra Pradesh’s E-Seva Model ...................................................... 15 Kerala’s Friends Program ............................................................ 18 IT For Farmers.................................................................................... 20 Computerizationof Land Records in Karnataka .................................... 20 Some Challenges in the Implementation of E-Governance................................ 23 Gujarat’s Computerized Interstate Check-posts .................................... 24 CARD in Andhra Pradesh............................................................... 25 Chapter Four : RestructuringAgency Processes ............................................. 29 State-Wide Agencies ............................................................................... 29 The Registration Department in Maharashtra .......................................... 29 The Karnataka State Road and Transport Corporation ............................... 32 City Agencies ....................................................................................... 35 The Hyderabad Water Supply and Sewerage Board ................................. 36 Bangalore : Making City Agencies Work ? ............................................ 38 Surat after the Plague. 1994-2005........................................................ 43 Chapter Five : DecentralizingTeacher Management ....................................... 48 The Madhya Pradesh Experience ................................................................. 48 Chapter Six : Building Political Support for Program Delivery ........................ 57 Comparing Human Development Outcomes in Tamil Nadu vs . Karnataka. 197 1-2001.. 57 Chapter Seven : Strengthening Accountability Mechanisms ............................... 64 Civil Service Reform : Transfers in Karnataka ................................................. 64 Unveiling Secrets : Access to Information in Rajasthan. Delhi and Karnataka ............ 67 Anti-Corruptions Institutions ..................................................................... 72 The Karnataka Lok Ayukta ................................................................ 73 Strengthening the Central Vigilance Commission ................................... 75 Public Interest Litigation .......................................................................... 77 Chapter Eight : Lessons for Improving Service Delivery ................................. 80 The Enabling Environment........................................................................ 80 The Role of Political Leadership., ..................................................... 80 Politicians and the Civil Service ........................................................ 81 Instruments For Improving Service Delivery .................................................... 82 Promoting Competition.................................................................. 82 Simplifying Transactions ................................................................ 82 Restructuring Agency Processes ....................................................... 83 Decentralization .......................................................................... 84 Building Political Support for Program Delivery .................................... 85 Strengthening Accountability Mechanisms........................................... 85 Cross-Cutting Issues ................................................................................ 87 The Role of Civil Society ................................................................ 87 Corruption in Service Delivery......................................................... 88 Strategy and Tactics of Reformers ..................................................... 89 Sustaining Reforms ....................................................................... 91 Transplanting Lessons................................................................... 92 Bibliography ........................................................................................... 94 Boxes Box I : Do Indian Voters Reward Performance? The Problem of Anti-Incumbency ..................... Box 2 : Instruments and cases studied in this report ........................................................................ 6 Box 3 : Gujarat’s Smart-Card Driving License ............................................................................. 23 Box 4: Building Capacity for E-Governance: Andhra Pradesh’s Chief Information Officers (CIO) Program............................................................................................................................ 27 Box 5: The Role of Ideas in Reform in Madhya Pradesh .............................................................. 50 Box 6: Community Participation in Hospital Management: MPs Rogi Kalyan Samiti (RKS) Model ................................................................................................................................ 51 Box 7: Rajasthan’s Experience in Reforming Primary Education in the 1980s and 1990s