cbe pres good govern an ace

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The manner in which power is exercised inthe management of a country‘s economic and social resources for development

World Bank

The exercise of economic, political andadministrative authority to manage

a country‘s affairs at all levels …equitable, rule of law, with consensusUNDP



Economic liberalismprivate ownership, investment, equity

Political pluralismdemocracy, participation, decentralisation

Social developmenthuman rights, law, judiciary, press

Administrative accountabilitymore transparency, less corruption

aimed at economy, efficiency, effectiveness



IN THE PRIVATE SECTOR SEEKING TO:deregulate to remove restrictions, butensure compliance with agreed codes

IN ALL TO:reduce monopolies and cartels

• where corrupt benefits are increased byreducing supplies; and

increase competition, ownership• where profits are increased by supplying more

and better goods, services



Strategic Vision & Consensus Orientation

GoodGovernance

Accountable

Responsive

Transparent

Equitable &

Inclusive

Effective & Efficient

Rule of Law

Participatory



•Our administration is not performance based.

•Our Government structures are weak inthe enforcement of law and order, in oureconomic regulatory framework, in civil

administration (at all the levels).•Heterogeneity of social and economicinterests involved.



World bank has given World governanceindicators :Voice and AccountabilityPolitical stability and Absence of violenceGovernment EffectivenessRegulatory Quality

Rule of LawControl of Corruption



There is partial freedom.Higher class people leveraged.Though members of Parliament are the

representatives of the people but theywork 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 withsupport boughtfrom the Jharkhand Mukti Morcha.

Again, in July 2008, when the Left Front withdrew theirsupport from the UPA-1 over the Indo-US Nuclear

Cooperation Treaty and the Manmohan Singhgovernment, reduced to a minority, was confronted with

a confidence motion—and the stench of politicalcorruption rose again. Wads of currency notes,

allegedly paid to MPs to buy their vote to save thesinking Manmohan Singh government, were waved andthe 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 atthe to . ̀ ```



Improper implementation of policies.Public services largely dependant on the

government.High political pressures.



India ranks134 on the ease of doingbusiness.

Number of procedures.



Advantage to the rich culprits. Innocents punished.



India‘s rank on corruption index- 87 out of178.

Present everywhere.



Civil servants least efficient among theirAsian peers.

―Suffocating‖ – presents hurdles in the pathof the entrepreneurs.

Demand for bribes.



Audit advisory board.OrganizationPersonnel



600 million are NOT literate (based on the 3R‘s) 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) (ourestimate)

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,Law 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 NRI‘s 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 India‘s as world‘s 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 privateorganized sector and 97% to unorganized sector.

Relevance of Vocational Education and training,where 95% ofthe population is given an opportunity to learn

skills/trades/competence in 3000 areas.This is missing inINDIA!

Can get Engineers but not International qualities plumbersmasons 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 andcompetitive market forces.



Corporate Governance is the set ofprocesses, customs, policies, laws andinstitutions affecting the way the

corporation is directed, administered orcontrolled.

History of Corporate Governance in

INDIA after Independence.Companies Act (1956)



Primary securities law - the SEBI ActCII Code RecommendationsBirla Committee recommendationsNarayana 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 firmvaluation, which makes more investments attractiveto investors and leads to growth and employment.

Better operational performance. Reduced risk of financial crises, a particularly

important effect, as financial crises can impose largeeconomic and social costs.

Better relationships with all stakeholders

Source: Stijn Claessens “Corporate Governance and Development” Global CorporateGovernance 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 capitalWeakens 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 peaceAccess to justiceRule of law



Socially and educationally backwardclasses

Women and children



Population explosionEmployment and regional diversity



Administrative responseCapacity building



Unholy nexus between politicians ,business houses civil servants andcriminals.



Complex system of commandMonopoly of govt as service providerUnderdeveloped legal frameworkLack of informationWeak notion of citizen rights



Corruption and electoral reformsState funding of elections/partiesStrict accounting procedures



1. Selection, accountability and replacement of

Authorities

– Voice and accountability – Stability and lack of violence



2. Efficiency of institutions, regulations, resourcemanagement

– Regulatory framework – Government effectiveness

3. Respect for institutions, laws and interactions

among players in civil society, business, andpolitics

– Control of corruption

– Rule of lawhttp://hindu.com/2001/07/31/stories/13310613.htm

http://hindu.com/2001/07/31/stories/13310613.htm

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-profitinitiative that works towards better Bangalore with an active supportof the private corporates in the city and with an encouragement ofthe State government.

Bangalore Agenda Task Force :- was established by the stategovernment as a statutory body to strategise, look after, coordinateand 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 itsfinancial 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 Bangalore‘s 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 ofservices and public accountability;

All the reports that have been published have reported a widespreaddissatisfaction among the people.



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

Bombay First together with McKinsey & Co. prepared a Vision Plan for thedevelopment of Mumbai.

The Vision Plan envisaged the transformation of the city on eight growth levers – economic growth, transportation, other (social) infrastructure, housing, financingand governance.

This vision was to be achieved over a ten year period

formulation new structures for city management involving all concerning serviceproviders 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 inPhuket province of Thailand, turns around tobecome a vibrant city with more tourists than itsown population.

While State funded public toilets turneddysfunctional in many cities, an NGO shows theway to run them successfully in Mumbai and Pune.



Good governance provides a universal recipe witha gradually growing mix of deregulation,privatisation, civil service reform anddecentralisation which are deemed to produce

better governability across societies. E-governance initiatives provide an interesting

example in this regard as it reclines at the intricateintersection of technology, culture and politics.

The key to better corporate governance in Indiatoday lies in a more efficient and vibrant capitalmarket.



Good Governance focuses on

Legitimacy and Voice : ParticipationDirection : Strategic Vision

Performance : ResponsivenessAccountability : TransparencyFairness : Equity and Rule of Law

cbe pres good govern an ace

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