Public sector management

PUBLIC SECTOR GOVERNANCE AND MANAGEMENT - Emerging Dimensions: N. Vittal, S. Mahalingam; Vikas Publishing House Pvt. Ltd., 576, Masjid Road, Jungpura, New Delhi-110014. Rs. 450.

PUBLIC SECTOR enterprises (PSEs) are the legacy of the approach adopted by government for managing the economy, after Independence when we adopted the Nehruvian socialist model. Today we have a wide-ranging set of PSEs, which are given the responsibility for covering different economic activities from the manufacturing of steel and refining oil to running of hotels and baking of breads.

Mr. Vittal and Mr. Mahalingam, in this wonderfully gotten-up book under notice, try to distinguish between governance and management. They also elaborate notwithstanding excusable grammatical errors and pardonable repetitions, the virtues of ``zero tolerance of corruption''. They say ``Management deals with the whole process of handling the physical, human and financial resources available with the company to get the specified results and governance relates to creating the overall framework under which the whole management functions'' and talk elaborately on the ``rule of law'' which should prevail and not the ``rule of the ruler''.

Confusion in goals is the main ailment while culture shock, excessive manpower, lack of vision are the other maladies that are affecting our PSEs no doubt. How to nurture corporate ethics and integrity is well discussed while emphasising that it is the people in an organisation and basic honesty that matters.

Discussing the impact of globalisation on Indian industries the authors analyse each of the elements of globalisation that affect the Indian industry.

Talking about vital issues in public service management the authors rightly point out that ``If we want to build a greater sense of accountability in organisation, what we need is clearer enunciation of the objectives of organisation and we must also remove the various safety cushions that have been built around the systems that help individuals escape punishment.''

The 29 suggestions like ``better public service, remove safety cushions to bureaucracy, go in for extensive OD and HRD techniques, open system of annual confidential reports, building values and complete thrust to IT and computerisation'' are laudable though they seem impracticable in our present ethos unless the CVC (Central Vigilance Commission) sets up a precedence in their own organisation since they are constitutional authority. More than half of the book, not unexpectedly, is dedicated to the interesting topic of corruption. Perhaps the CVC can, for a change, try to minimise, if not eliminate, corruption at the lower levels for small things like refund of income tax, small time sales tax payers, not charging for filing of FIRs or getting no traceable certificates from police, or even start with stopping ``mamuls'' for getting the birth or death certificate or exorbitant exploitation in burning ghats and burial grounds. For effective management of resources the authors have quoted orders of May 1997 that the ``CVC should normally not take cognisance of anonymous complaints'' but Indians know very well about the witch-hunting by those who have power and hence will never come forward. It is surprising that a member of administrative service of the calibre and experience of Mr. Vittal has allowed a wrong notion that ``even though bureaucracy may be considered anti-innovation, there is scope for innovation.'' Excellent or extraordinary is too small a word to appreciate the work done by Mr. Vittal and Mr. Sam Pitroda in the Telecom sector where the country is topping in the world. Even now the work done by the retired member of the administrative service in this sector is something tremendous. The points about reservation and empowerment without crutches are well argued.

The chapter ``Technology option'' is very interesting and well written. How to overcome India's major weakness in the era of technology? Make computers operate in Indian languages, put rugged computers in all schools and change the curriculum suited for the present, are all worthy suggestions.

The seven genuine Swadeshi formulae emphasise that ``Swadeshi should operate on the proven principle of success of capitalism that is enlightened self-interest.'' Should the public sector follow Rama or Krishna philosophy? The ultimate analysis shows the Ramakrishna philosophy.

For the new ``avatar of PSEs'' the authors suggest ``a global vision in the PSEs can be systematically cultivated by OD interventions and the use perhaps of global consultants like McKinsey.'' Why call in these multinationals when we have excellent persons to deal with such issues?

The distilled 36 years of experience of Mr. Vittal should be taken as a case study for training our civil servants, of course, after analysing some of the incidents, which to a naked eye seem autocratic.

The action plan for zero tolerance to corruption is laudable; particularly the ones regarding mobilising youth and encouraging whistle- blowing. The strong words reflect the seriousness with which the topic is dealt with but whistle-blowing can be done when one is sure of no witch hunting.

The last chapter deals with disinvestments and the long-term strategies indicated are really worth considering. Seeing what is happening to BALCO disinvestments through disincentives rather than disinvestments through incentives as has been done in Telecom, seems to be the right route as indicated by the authors.

Robert Klitgard is right when he says ``most systems can stand some corruption and it is possible that some truly awful systems can improve by it; but when corruption undercuts the rules of the State e.g. the justice system, or banking and credit, it devastates economic and political development. Corruption that allows polluters to foul rivers or hospitals to extort exorbitant or improper payments from patients becomes environmentally and socially corrosive.''

This message is well brought out in the book but the authors should know well that if so much money is spent on attacking corruption and so much redtapism and bureaucracy are created that the costs and losses in efficiency outweighed the benefit of reduced corruption, such efforts are counterproductive.

This is what happened in a case where the CVC insisted on a censure at least of an officer who could not withstand the humiliation and who appealed to the President who referred the case to the UPSC who felt that the officer needs to be commended and not commented and the censure was withdrawn. Like disincentive for disinvestments there should be disincentive for having brought such cases.

As claimed by the authors each of the chapter tries to bring out some specific aspects and also makes constructive suggestions (though the general feeling is the CVC is obstructive) to tackle the problems faced by the Indian public sector in the present market driven economy. The book is a good read for laity and researchers alike but of doubtful value to students of management, though of definitive value to public administration students.

N. RAMASWAMI

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