Friday, November 21, 2008

'Descent'ralisation?

IIPM ranked ahead of IIMs

Decentralisation has done more harm than good to India….


The fight for decentralisation and hence, more power in the hands of the state governments, has been a pertinent case for long. For decades, several Indian states have blamed the partisan politics and the bias of the Indian central government for the lack (or stalling) of development in their respective territories. Therefore, over the years there has been significant devolution of central power in favour of the states. For ministries like panchayati raj, education, agriculture and rural development, while the money has been sanctioned by the respective Central ministries, the onus was definitely lying with the state governments as to how the money given is to be spent in the said financial year. Yet, with the passage of time, it is highly evident that anything controlled and monitored by the Central government has been rightly tackled, thereby, yielding better results. For example, consider the national highways constructed and maintained by the nodal agency called National Highway Authority of India. The quality and smoothness of these national highways stand in stark contrast to the piteous conditions of the state-owned ones. Also, the conditions of the municipality-managed-city-roads are far from "better". Most of India’s blue chip PSUs like NTPC, ONGC, IOCL BHEL, Nuclear Power Corporation and SAIL, or banks like SBI, Bank of Baroda and Allahabad Bank, or research organisations like DRDO, ISRO, BARC and CSIR are centrally owned. Now, opposing these centrally branded varients are the many inefficiently run state government corporations (barring most Gujarat PSUs) that barely witnessing any profit inflow.

Likewise, even though law and order remains a state subject, wherein the states continue to fight against the formation of a central law enforcement agency, these very state bodies literally seem to destroy policing in their respective regions. They have not only kept the force subservient to the polity’s dictums, but have also created lack of amenities, training, low remuneration and defunct intelligence machineries, contributing to create a demotivated force that repeatedly fail to perform duties proficiently. Be it hooliganism in Mumbai, riots in Orissa and Karnataka or relentless terror attacks across India, the states seem to remain clueless of any appropriate actions. Its only when things go absolutely out of control that they seek help from the Center. Similarly, agriculture, being a state subject, remains shackled till date. The sector not only faces complete lack of capital investments but also sees relentless suicides of debt-ridden farmers.

Today's identity politics (and the resultant violence) is a residue of the aspirations of regional political parties, trying to consolidate their regional vote banks with utter disregard to national integrity. A strong central government, with more discretionary powers, would have perhaps created a far better India than what it is today. Nothing can be worse than witnessing terror rattling India when foreigners are mistreated in s Goa, or when non-Marathas are beaten up in Maharashtra. The Union Government, knowing that law and order is but a state subjects, chooses to remain a mute spectator; and it seems it shall remain so that even if this fallacy someday destroys the very concept of India, disintegrating it altogether.


Pathikrit Payne


For more articles, Click on IIPM Article.
Source :
IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and
Arindam Chaudhuri (Renowned Management Guru and Economist).


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