The Hindu : `Second generation reforms should focus on cutting red tape'

Online edition of India's National Newspaper
Sunday, Mar 03, 2002

Southern States

Southern States - Tamil Nadu

`Second generation reforms should focus on cutting red tape'

By Our Staff Reporter

TIRUCHI MARCH 2. The second generation economic reforms should focus on tackling corruption and red-tape, the Central Vigilance Commissioner, N.Vittal, said today.

Studies revealed that if the corruption level in the country was brought down on a par with what obtained the Scandinavian Nations, investments could increase by 12 per cent and the GDP by 1.5 per cent annually.

A frontal attack on corruption and red-tape could also make the reform process more popular.

A three-pronged strategy of simplifying rules and regulations, empowering the people with right to information and prompt punishment should form the broad framework for launching an onslaught, Mr.Vittal said, delivering the convocation address at the Jamal Mohammed College here.

The reform process should also focus on productivitiy, carrying out a study on whether optimum results were derived from available infrastructure, in the irrigation, telecommunicaton and power sectors. Transmission losses accounted for nearly 22 per cent of the power generated in the country.

The domestic industry should identify laws which acted as a drain on productivity and call for appropriate changes.

With over 50 per cent of the country's workforce employed in the agriculture, it was essential to improve productivity and earnings.

he next stage of the reform process should focus on agro-based industries and explore ways of realising the potential of the sector fully. The Government should come out with a vision statement and act as a facilitator to promote growth in the sector, he said.

The Government decision on opening up the defence sector to private participation was an encouraging development.

This would help to bring about greater transparency in the defence procurement.

The various defence production facilities could be modernised by throwing them open to private participation.

The technologies developed by the Defence Research and Development Organisation should also be commercialised.

Later, Mr.Vittal presented degrees to over 550 students.

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