The manner in which power is exercised in the management of a countrys economic and social resources for development

World Bank

The exercise of economic, political and administrative authority to manage a countrys affairs at all levels equitable, rule of law, with consensus
UNDP

 Economic Political Social

liberalism

private ownership, investment, equity

pluralism

democracy, participation, decentralisation

development accountability

human rights, law, judiciary, press

Administrative

more transparency, less corruption aimed at economy, efficiency, effectiveness

IN THE PRIVATE SECTOR SEEKING TO: deregulate to remove restrictions, but ensure compliance with agreed codes IN ALL TO: reduce monopolies and cartels
where corrupt benefits are increased by

reducing supplies; and

increase

competition, ownership

where profits are increased by supplying more

and better goods, services

Strategic Vision & Consensus Orientation Participatory Rule of Law Effective & Efficient Equitable & Inclusive Good Governance Accountable

Transparent Responsive

Our administration is not performance based.

Our

Government structures are weak in the enforcement of law and order, in our economic regulatory framework, in civil administration (at all the levels). Heterogeneity of social and economic interests involved.

World bank has given World governance indicators : Voice and Accountability Political stability and Absence of violence Government Effectiveness Regulatory Quality Rule of Law Control of Corruption

 There

is partial freedom. Higher class people leveraged. Though members of Parliament are the representatives of the people but they work for their own vested interests.

 Retail

horse trading. Governments formed on the basis of the personal interests of the members. Open trading of parties and groups

. First, the Narasimha Rao government was saved with support boughtfrom the Jharkhand Mukti Morcha. Again, in July 2008, when the Left Front withdrew their support from the UPA-1 over the Indo-US Nuclear Cooperation Treaty and the Manmohan Singh government, reduced to a minority, was confronted with a confidence motionand the stench of political corruption rose again. Wads of currency notes, allegedly paid to MPs to buy their vote to save the sinking Manmohan Singh government, were waved and the drama of active horse-trading was caught in a sting operation. While the 'cash-for-votes' is still being 'investigated', the public is largely convinced about the existence of murk and muck in our political actions at the top. ````

 Improper

implementation of policies. Public services largely dependant on the government. High political pressures.

 India

ranks134 on the ease of doing business. Number of procedures.

 Advantage

to the rich culprits. Innocents punished.

 Indias

rank on corruption index- 87 out of

178. Present everywhere.

 Civil

servants least efficient among their Asian peers. Suffocating presents hurdles in the path of the entrepreneurs. Demand for bribes.

 Audit

advisory board. Organization Personnel

600 million are NOT literate (based on the 3Rs) 300 million unemployed/employable age 18 to 50 (our estimate) 46 million registered with employment offices (GOI) 26 million born every year (GOI) 762 million or 71% below the age of 35 years (GOI) 290 million below poverty line @ Rs. 10/day (GOI) 490 million below poverty line @ US$ 1/day (WB) (our estimate) 700 million below poverty line @ US$ 2/day (WB) (our estimate) Per capita US $ 525 per person per year, US $ 1.64/day (GOI)

Drop out rate kindergarden to 10+2 is 94% 6% go for higher and technical knowledge in 15000 colleges 70% of all graduates are Arts graduates 30% in Medical,I.T.,Software,Engineering,Commerce,Science,La w and special subjects. About 3% of the youth achieve relevant education. Balance 97%-how to address there aspirations??

Rs. 78000 crore or US $18billion/yr spent on education. 10% by Central Govt. and 90% by State Govt. 4% of GDP spent on education-not enough more required 9% of GDP or US $25 billion required per year. Educational cess may mobilize additional US $ 1.5 billion/year. Central and State Govt. are in deficit by 11% of GPA Private participation from citizens and NRIs is a solution.

Facilitator and not a controller Remove License Raj All subsidies from higher education are to be diverted to Primary and Secondary education. Allow education to be recognized as an enterprise. Allow tax breaks in investment in education till 2025. Recognize that education business is US $2500 billion/yr.And is 5 times bigger than I.T and Software.

Promote 100% literacy. Decontrol and deregulate education as was Industry in 1991. Allow private participation in Education with minimum of 25% free education for the SC/ST and below poverty line population. 100% Enterprise skills education in schools, class 1st to 12th. 95% of population for vocational education and training Link up Industry-enterprise-training-research on a dynamic basis Make Indias as worlds Educational Hub for primary to higher and vocational education. Good education will result in good governance in India.

Only 1% of new jobs go to Government,2% TO private organized sector and 97% to unorganized sector. Relevance of Vocational Education and training,where 95% of the population is given an opportunity to learn skills/trades/competence in 3000 areas.This is missing in INDIA! Can get Engineers but not International qualities plumbers masons etc. Education and Training is a big employment generator. Capitation fees will be resolved by decontrol and deregulation. Fee structure for 15000 colleges cannot be decided by a group of Supreme court judges,but only by free and competitive market forces.

 Corporate

Governance is the set of processes, customs, policies, laws and institutions affecting the way the corporation is directed, administered or controlled. History of Corporate Governance in INDIA after Independence.
Companies Act (1956)

 Primary

securities law - the SEBI Act CII Code Recommendations Birla Committee recommendations Narayana Murthy Committee recommendations

Principle 1: Performance Orientation Principle 2: Nomination and Compensation Committees Principle 3: Disclosure Principle 4: Audit Committee Principle 5: Code of Conduct Principle 6: Conflicts of Interest Principle 7: Environmental and Social Commitment Principle 8: Conduct of the Board of Directors Principle 9: Responsibilities of Investors Principle 10: Role of Directors in Turnaround Situations

Increased access to external financing by firms, which can lead to greater investment, higher growth, and more employment creation. Lower cost of capital and associated higher firm valuation, which makes more investments attractive to investors and leads to growth and employment. Better operational performance. Reduced risk of financial crises, a particularly important effect, as financial crises can impose large economic and social costs. Better relationships with all stakeholders

Source: Stijn Claessens Corporate Governance and Development Global Corporate Governance Forum Focus I Publication, www.gcgf.org

Brings stability to markets Strengthens competitiveness (companies and economies) Strengthens institutions Improves risk mitigation Promotes investment, lowers cost of capital Weakens corruption Strengthens lending Promotes reform of state-owned enterprises Promotes successful privatization Builds transparent relationships between business and state Helps to combat poverty

 Threat

to peace Access to justice Rule of law

 Socially

and educationally backward

classes Women and children

 Population

explosion Employment and regional diversity

 Administrative

response Capacity building

 Unholy

nexus between politicians , business houses civil servants and criminals.

 Complex

system of command Monopoly of govt as service provider Underdeveloped legal framework Lack of information Weak notion of citizen rights

 Corruption

and electoral reforms State funding of elections/parties Strict accounting procedures

1. Selection, accountability and replacement of Authorities Voice and accountability Stability and lack of violence

2. Efficiency of institutions, regulations, resource management

Regulatory framework Government effectiveness

3. Respect for institutions, laws and interactions among players in civil society, business, and politics Control of corruption Rule of law http://hindu.com/2001/07/31/stories/13310613.htm

 Social

Accounting/Auditing; Lokayukta; Lokpal; CAG; & Citizen Vigilance.

Bangalore Forward :- Bangalore Forward is a private non-profit initiative that works towards better Bangalore with an active support of the private corporates in the city and with an encouragement of the State government. Bangalore Agenda Task Force :- was established by the state government as a statutory body to strategise, look after, coordinate and monitor the development activities in Bangalore.

Fund Based Accounting System:a) Initiated by Bangalore Forward with financial support of private corporates; b) As an instrument for achieving reforms in municipal accounting; c) To enable it to undertake its core services efficiently and to enhance its financial capacity substantially; d) Other improvements like improved organization performance, better transparency and accountability and efficient resource mobilization/utilization; e) Earlier BMC used single entry accounting which had inherent limitations. FBAS uses double entry accounting to overcome this.

Citizen Report Card:-

Public Affairs Centre (PAC) instituted this on Bangalores public service providers
citizens provide a feed back on the quality, efficiency and adequacy of services and the problems they face in their interactions with service providers The feedback is used to rate the performance of various service providers; Also, it helps in sensitising the public at large about the state of public services; exerting pressure on government and service provides to improve the quality of services and public accountability; All the reports that have been published have reported a widespread dissatisfaction among the people.

Vision Mumbai: Transforming Mumbai into a World-Class City:-

Bombay First together with McKinsey & Co. prepared a Vision Plan for the development of Mumbai.
The Vision Plan envisaged the transformation of the city on eight growth levers economic growth, transportation, other (social) infrastructure, housing, financing and governance. This vision was to be achieved over a ten year period formulation new structures for city management involving all concerning service providers and agencies & participation of private sector as well Formation of task force to analyze & implement Mumbai Vision

The secret of good governance is public, private participation Can you imagine a battered nation like Afghanistan providing 24-hour water supply in some of its provinces? A tsunami-devasted coastal village, Patong in Phuket province of Thailand, turns around to become a vibrant city with more tourists than its own population. While State funded public toilets turned dysfunctional in many cities, an NGO shows the way to run them successfully in Mumbai and Pune.

Good governance provides a universal recipe with a gradually growing mix of deregulation, privatisation, civil service reform and decentralisation which are deemed to produce better governability across societies. E-governance initiatives provide an interesting example in this regard as it reclines at the intricate intersection of technology, culture and politics. The key to better corporate governance in India today lies in a more efficient and vibrant capital market.

Good Governance focuses on

Legitimacy

and Voice : Participation Direction : Strategic Vision Performance : Responsiveness Accountability : Transparency Fairness : Equity and Rule of Law