This pain pain and misery and misery is TOTALLY is TOTALLY unnecessaunnecessaryry

NATIONAL REFORM SUMMIT

5 to 8 April 2013, Haridwar

WELCOME!Sanjeev Sabhlok

Welcome!

Welcome to the lovely campus of Patanjali Phase 2 for the Sone Ki Chidiya National Reform Summit

Thank you for coming

You are uniquely interested in improving the governance of India From all across India. Significant time and cost.

Despite Short notice for this Summit Unknown entities running the Summit

Thank you for making the effort to come

You have the blessings of many Many senior people from across India unable

to make it due to short notice but send their blessings

They have sent their full support to deliver results

If after this Summit we can agree to work together we can expect significant support

India is looking for leadership. Our challenge is to rise to the occasion

But first, some housekeeping Accommodation: Block 4

Not 5 star but good enough for reformers Please wear ID card at Summit and for meals Restrooms - location Water Tea

Served at 10:30 am and about 3 pm We’ll get the tea and come back to our chairs

Lunch break around 12:30 pm for 45 minutes

Prohibitions in Patanjali campus Smoking and alcohol are strictly

prohibited in this campus. Please respect this policy very

stringently.

For any assistance please contact Freedom Team of India volunteers KK Verma Dipinder Sekhon Sureshan P Kamal Sharma Anil Sharma Suneeta Dhariwal Abhijeet Sinha Vardan Kabra Arvind Illamaran Vijay Anand, etc.

Please excuse any shortcomings Both BST and FTI are voluntary

organisations We have tried our best within very limited

resource and time constraints to organise this much needed Summit

Without Swamiji’s and Acharyaji’s support the logistics would have been impossible I thank them for taking so much interest in

creating a new India where we can all be proud of ourselves and our nation

Languages at the Summit

We’ll use both English and Hindi

Documents, once finalised will be translated into Hindi and other languages Draft Vision is already available in

Hindi

Why are we here?

We are sick of corruption, crime, injustice and misgovernance in India

We want to make India a Sone Ki Chidiya again.

It is time to fix things

But HOW do we fix thing? We need to know what to do.

If you become Prime Minister what will you do?

“Insanity: doing the same thing over and over again and expecting different results. Einstein”

Root cause of misgovernance: Policy/system design failure Policies are badly designed

Policy frameworks are not used System’s incentives are flawed

Inevitability of corruption Modern thinking (including Arthashastra) not

used Politicians make policy on whimsy, not analysis Bureaucrats are totally unaccountable

This Summit is about changing the system व्यवस्था� परि�वर्तन

Immediate goals for this SummitA high quality platform for all reformersLinking intelligentsia and grassroots reformers on a common platform for national reformAlignmentWithout alignment we’ll get a total khichri

vision agenda for change organisation (SKC Federation); and action plan including detailed Reform Board and

policy and organisational committees

Summit is a beginning. Real work will start after Action Plan agreed Real work will include

Policy and legislative workdetailed policies and bills

Grassroots work to explain reforms to the people

Organisational work fund raising, training of leaders etc.

The sooner we agree an action plan the sooner we can start work

What could working together look like? – this is to be decided We’ll discuss in detail on Day 3 and Day

4:

Imagine India gets a government that will listen. What should it do? Specify each step of what it

should do in the first six months Including detailed transition path

This is time to our homework Then good results will be certain

We should not hesitate to adopt the best ideas World best practice governance

frameworks Evidence based policy Public administration framework

Take on board recommendations from other reform initiatives Administrative/ Police reforms commissions, Recommendations of Nation Building Meet in

March in Delhi Recommendations of Chintan Shivir

Structure of the Summit

Day 1: Background and goals Vision

Day 2: Agenda for change Day 3: Organisation/structure (eg.

Federation) Day 4: Key decisions, resolutions and

action plan

Suggested protocols for sharing your thoughts How to indicate agreement:

Just nod. No need to speak up. Some “voting” may be sought

How to indicate disagreement Raise your hand to speak When opportunity is provided, provide a

summary Let’s remember: perfect is the enemy

of the good Even 80 per cent agreement might be enough to

move together in the same direction

Personal responsibility to implement suggestionsWe have a rule on FTI:The one who makes a suggestion gets it done

Setting up project Building project team Raising resources

Similar rule for this Summit: Only make suggestions that you are willing to lead – after the SummitAt the end of this Summit everyone will need to lead and coordinate various actions

How this Summit will be run

Moderators: Sanjeev and Shantanu Kamal Sharma, Anil Sharma and others may be asked

to help

1) We’ll go through key documents2) We’ll seek agreement/ improvement

Let’s avoid raising non-critical issues Where appropriate we’ll split into smaller groups There will be a few presentations on specific

topics Judicial Reforms Arthakranti

Access to documents to be discussed Participants were requested to print

and bring copies of relevant documents

If you don’t have a copy please request your neighbour to share with you If absolutely necessary, an FTI volunteer

may be able to provide a copy

A bit about me

IAS 1982 batch, PhD Economics from USA Taught at Lal Bahadur Shastri National Academy

Political reform work Preliminary political work, February 1998 Resigned Jan. 2001to pursue reform through politics Gave up in 2005 after three attempts, wrote book

(2008) (Breaking Free of Nehru) One last attempt, from December 2007 – started

Freedom Team of India to find good leaders After 15 years (1998-2013), some real hope

now – with Swami Ramdev’s vision for India

Who are Freedom Team of India members? About 50 active but another 100+

inactive members Committed to liberty and prosperity in

India A key requirement for joining FTI is

commitment to contest elections. Members include former civil servants/

defence officers/ MBAs/ IITians/ Supreme Court lawyer/ school principal/ nuclear scientist/ social activists

Who is attending this Summit? Grassroots reform movements

Bharat Swabhiman Trust, with tens of lakhs of members

Farmers movements and representatives with lakhs of members

New generation political parties Lok Satta

Intellectuals and reformers Senior defence, civilian officials and business

executives Senior academics and educational leaders Young leaders from middle class India

Here’s wishing us all the best!

Let’s put our best foot forward!

Let us realise the seriousness of India’s many problems and agree to work together AS A SINGLE TEAM

Next: Shantanu Bhagwat, former Foreign Service officer

WELCOME ADDRESS #2

Shantanu Bhagwat

WELCOME ADDRESS #3

Jaideep Arya, BST

CONDENSED INTRODUCTION

Everyone to participate

Introductions – condensed version ONE MINUTE MAXIMUM, PLEASE

Name Organisation (if any) City

Also please provide the above information each time you speak in front of larger group

USING WHAT’S ALREADY THERE

A bit of background

Nation Building Meet, 2,3 March 2013: Focus on systemic reform 1. Systemic reform

“Search for individual remedy has led us to ignore the system-wide issues. Focus on individual problems will leave us in a mess”

Other recommendations 2. Importance of values 3. Need for citizen leadership 4. Both non-political and political action

For systemic reform: Two main questions What should a government do?

Are there limits to what a government can do?

How do we arrive at these limits (eg. net benefit test)

How should it do it? How can a government comprising self-

interested politicians and bureaucrats do what we want it to do? (public choice theory)Policy that doesn’t consider both these

issues will be fundamentally flawed

The “What” must be well thought out“Bad administration, to be sure, can destroy good policy, but good administration can never save bad policy.”

- Adlai E Stevenson Jr

The “How” must also be well thought outPolicy that is unable to pierce the veil of incentives during implementation is bad policy

Good policy considers implementation issues

World best policy framework10 questions to eliminate bad policy1: What would happen without any role for government2. Identify problem/s with the base case and explain why these are problems3. First principles test (should government intervene at all)4. What can government do about the problem/s?5. Freedom test

10 questions that eliminate bad policy, contd.

6. Strategic gaming test7. Government failure test8. Real experience test9. Cost benefit test10. Transition path

Illustration: NREGA/ health and safety laws/ permissions to start a school or business

This is what we want government to do

Goal

This is what we get

OurGoal

Bureaucrat

(black box)

…. by failing to think about the politician’s and bureaucrat’s incentives

Bureaucrat’s goal

Chanakya wanted a strong, minimal state, with control over incentives

Two axes: liberty, incentives

Liberty

Incen

tives

(Reminder: incentives include disincentives)

VISIONEveryone

I’ll highlight key aspects of the VisionThen we’ll take a break to readWe’ll split into small groups to discuss

Then we’ll have a general discussion and improve it (we’ll make notes on whiteboard)

Vision is based on

Systemic focus on reform, not piecemeal Individual liberty and accountability Incentives and markets Optimal regulation: neither too much nor

too less regulation that is based on evidence

Approach in the vision is proven to work well both in India and elsewhere

Proposed vision for New India #1We want an India:Where our governments fully respect us as masters of the nation. Where we are free to pursue our happiness and spiritual goals so long as we don’t harm others.Where our children are ambitious and know they will be rewarded on their merit, not because of whom they know.

Proposed vision for New India #2 Where environment is created in which

everyone is enabled to earn their own roti, kapda aur makaan.

Where prosperity is rightfully earned and not stolen or redistributed.

Where everyone, including the poorest, get an equal opportunity to achieve their potential:

everyone gets access to immediate emergency health care, with the poor also given access to basic care through social insurance.

Proposed vision for New India #3 Where we are safe from criminals and from

marauding politicians, policemen and bureaucrats.

Where there is quick and proportionate justice:

Where rogues and criminals cannot become MPs and MLAs:

Where government officials are fully accountable, corruption is totally eliminated and black money is declared and brought back to India.

Proposed vision for New India #4 Where citizens are able to produce and trade

without the nanny state’s control: Where our property is safe: Where the government facilitates clean water,

sufficient roads, power, ports and railways, and other critically needed infrastructure.

Where the government operates within its means, taxes are low, debt is paid off, and our currency is not made worthless because of inflation.

Principles of good governance 1) Democracy and subsidiarity (वि�के� न्द्री�केरण)2) Strong accountability mechanisms3) The government performs its basic role very well4) After doing its basic roles properly, the government can perform a few additional functions5) Transitional arrangements

Values for a New India

1) Samagra Bharat2) Equal opportunity 3) Individuals are the foundation of Bharat4) Family as key social unit5) Freedom to pursue spiritual and material goals6) Freedom comes with accountability7) Truth and the scientific method8) Diversity and tolerance9) Freedom of occupation and trade

Key immediate goals #1

Security for everyone and quick justice Total elimination of corruption in three

years Strong rupee not degraded by inflation Removal of obstructions on production

and trade Access to high quality schools for the

poorest Total elimination of poverty in three years

Key immediate goals #2

Low taxes because government will only perform key roles

High quality infrastructure including transport, power, and water

Motivating good people into public life through electoral reforms

Better prices for farmers till prices are deregulated

15 minutes to read the VisionPlease make notes (if you’ve not already done so)

Please break into small groups These groups should discuss

whether the vision makes sense Any opportunities for

improvement

Any major disagreements?

Please raise the issue individually

Please do not repeat what has been said before

Show of hands

Assuming we will now revise the Vision to make key improvements, do we now agree with the vision?

AGENDA FOR CHANGEEveryone

New participant introduction About ten new participants have

registered today Introductions only of the new

delegates Name Organisation City

Thanks for the yoga class todayWe must think not just about the nation but about our body

What we did on the first day

Introductions and background Discussion and agreement to

vision by voting A tentatively modified vision may

be shared in the next day or two Not to be treated as a final copy

Improved version will be published on SKC website for wider consultation in the coming weeks

Initial team for SKC movement Those who broadly agree with draft

Vision are now part of the INITIAL TEAM that will deliver this vision to India

All new participants assumed to have agreed to the Vision

This is a “quarter finals” version They will get a chance to input in the coming

days

Key task for tomorrow

How exactly we will work together will be decided tomorrow

Today Agenda for Change

Time of various sessions today 9:30 am – 12:30 morning

session including one tea break

2:30 pm – 6:30 pm with one tea break

Plan for tomorrow

Bonding exerciseAfter lunch (at 1 pm or so) the TEAM will be taken by bus to visit a number of places in Patanjali campus and around, and Aarti at Har Ki Pauri

How many wish to go? Bus will be arranged accordingly

BASIC IDEOLOGY

Shantanu Bhagwat

An Agenda (Manifesto) for Change This is a preliminary draft

Requires much more work over the next 2-3 months

The agenda will need to be supplemented by detailed policies Bills Strategic plans

Plan for this session

I’ll highlight some aspects of the Agenda

We’ll then split into small groups to discuss

Then we’ll have a general discussion and improve it

But first we’ll have one presentation now (Arthakranti) and one in the afternoon (on justice)

AGENDA FOR CHANGETax policy: Arthakranti

AGENDA FOR CHANGE

Main agenda contd.

Back to key aspects of the Agenda I’ll now go through key aspects of the agenda

Leash the government #1

Ensure a constitutional leash on government Key amendments to the Constitution, and

fundamental review The government must always recognise

citizens as the master Citizens must directly decide, where possible No unnecessary secrets from the people

(transparency) Citizens must directly supervise the government,

wherever possible Lowest responsible level of government must decide

wherever possible [subsidiarity]

Leash the government #2

The government must not assume to be our master Treat us all the same Don’t tell us what to do Don’t tell us what we can or can’t say Don’t interfere in our religious beliefs and

affairs Don’t tell us which occupation or trade we

can undertake Don’t touch our property!

Unleash the people

What a government should, or may do “Must do” or core (first order)

functions Some additional (second order)

functions Government should entirely avoid

“third order” functions

First order functions (which a government must perform well) Administrative system Economic and regulatory policy Defence Police/ internal security Justice Foreign affairs Sound money

Second order functions

Infrastructure Roads Public transport Water Energy

Reasonable equal opportunity Elimination of poverty School education Basic health care for the poor Emergency health care for all

Eliminating corruption and criminality from our political system Reduced opportunity for corruption

Less discretion, less interference by government

Better incentives Barriers against entry of bad

people into politics Positive incentives to attract good

people into politics

We’ll now split into 6 groups

Chapter 5: Eliminating corruption ANIL SHARMAChapter 6: New machinery of government KK VERMAChapter 7: Doing more with less [KAMAL SHARMA]Chapter 8: Defence, foreign policy, internal security [DIPINDER SEKHON]Chapter 8: Justice, agriculture, industry policy[SUNEETA DHARIWAL]Chapter 9: Infrastructure and equality of opportunity [VARDHAN KABRA]Each group should read and then discuss

Participants can rotate across different groups every half hour

Key feedback on agenda for change Points to be noted on the whiteboard

Next step Improving the draft agenda for

change Publishing a revised document for

wider consultation

DAY 3: OPTIONS FOR FORMING A TEAM

New participant introduction New participants please introduce

yourself

Name Organisation City

Please get your card during the tea break

Today’s sessions

9:30 am – 12:30 morning session including one tea break

2:30 pm – 6:30 pm with one tea break

Plan for tomorrow (Monday) 9:30 am – 12:00 noon including one

tea break

Closure of the formal part of the Summit 1 pm: Excursion (Patanjali campus

and around, and Aarti at Har Ki Pauri)

Will come back by 9 pm

Review of Day 2

We discussed the draft Agenda for Change We received suggestions for improvementNext steps on Agenda for Change FTI will propose a revised draft that is

consistent with: Vision Policy framework

More revisions through consultation within SKC Federation and general public

Unique opportunity to work together and change India A unique opportunity is now available

There is potential to influence the next government

We need to finalise reform proposals and detailed policies in the next six months

Three options for working together:- next slides

Option 1: Google group

We can create a google groupPros:

Very easy; low cost No long term commitment to work together

Cons People who can’t use email will be left out No ability to raise funds without bank account No ability to hold meetings/ events/ advance

the movementUNDESIRABLE OPTION

Option 2: Legal entity with individual vote Organisation in which each member has a

single vote. Pros:

Allows fund raising and legal accountability Cons:

Organisations like BST won’t be able to join They also won’t see the benefit of re-enrolling

their members individually Very limited ability to do anything meaningful

Option 3: Legal entity with organisational and individual vote Pros:

Allows fund raising and legal accountability Large organisations like BST, Lok Satta, farmers

movements may consider join since weightage is given to their size

Smaller organisations will get appropriate decision-making role.

Federation can become a think tank for member organisations

Once a decision is taken, LAKHS of people can be quickly informed

Mr Ramesh Gupta’s experience with a FederationHow did the Federation get

formed?What are the kinds of things it

did?What are the key advantages

of a Federation?

FTI has already lodged SKC Federation for registration In anticipation that SKC Federation will

be a useful model, FTI has lodged SKC Federation Trust Deed for registration

Bank account will be opened after registration.

Membership of Federation

In the first year no membership fee is envisaged. This will let people join and determine whether the

SKC Federation is fit for purpose

Different types of membership have been proposed, but can be revised in due course Foundation Member Ordinary Member Individual Member Honorary Member

Initial Board

Initial Board will be nominated by Settlor and Trustee from among those who join

Initial Board will: Establish rules and processes for election Conduct elections to the new Board within

one year

Proposed structure of the SKC Movement

What about political party?

Nothing prevents members of SKC Federation from forming a separate political party or creating a coalition of parties to directly seek the mandate of the people of India to implement the necessary reforms

We will not discuss the political option since the first stage is to find out What we want to do Whether we are willing to work as a team

Organisational Committees - brainstorm Fund raising - Sureshan Financial systems management – KK

Verma Membership management - Anil Sharma Training and development - Arvind,

Dipinder Media and communications - Suneeta

Others: think tank (in due course)

Policy Committees #1

General governance1. General economic policy (including investment, licensing, trade, labour market flexibility, etc.)2. Property rights and land administration (including land acquisition, tribal land management, national parks, eminent domain, mining rights, etc.) 3. Local government (including urban and rural self-government)4. Urban planning (including linkages with local government governance and structures)

Policy Committees #2

First order functions of government 5. Defence (including defence R&D, defence industry and technologies)6. Police (including prisons and internal security)7. Justice (including all tiers of justice system, and principles of harm and justice)8. Sound money (e.g. money, monetary policy, finance and banking)

Policy Committees #3

Second order functions of government9. General infrastructure (including key principles and frameworks such as funding options)10. Poverty removal and social minimum (social insurance) 11. School education (including early childhood education)12. Health (including preventative, primary, and hospitals)13. Vocational education (including skills, apprentices and guilds)

Policy Committees #4

14. Higher (including professional) education15. Agriculture (including irrigation)16. Energy (including energy generation, distribution and use)17. Water (including rivers policy and potable water supplies)18. Transport (including public transport, etc.)

Policy Committees #5

Possible third order functions19. Environment (including wildlife and nature tourism)20. Archaeological artefacts and heritage (including heritage tourism)21. Industry (including industrial estates, SEZs, innovation and general R&D)

Special topic committees

Bringing black money back to India

Details of SKC Federation Trust Deed Given limitations of time, we’ll not

discuss the details of the deed. Please read at your leisure.

If there are any specific suggestions for improvement, please email to me at sabhlok@gmail.com

Formal membership process requirement If you wish to formally join as an

organisational member, the Governing Body of your organisation should resolve: a) to join the SKC Federation b) to nominate its representative/s to the

Federation Please seek your Governing Body’s approvals We’ll shortly send out formal membership

forms and also publish on SKC website

Today: Expression of interest in joining SKC Federation If you are interested in joining,

please complete the form provided Also keep a spare copy for your own

information

Next step

We need to get 1000s of organisations enrolled and lakhs of individual members

Please widely share information regarding the SKC Federation so we can get all major organisations and reform individuals involved

Raising funds for SKC Federation FTI will provide a small amount of seed money

to the SKC Federation.

We’ll seek assistance of member organisations in opening an office in Delhi

We should all contact people who want a MUCH BETTER India and raise a corpus of at least Rs.5 crores in the coming weeks, to allow SKC Federation to implement its action plan.

Where to contribute today?

FTI is collecting funds for this project Any savings after meeting costs for this

Summit will be transferred to SKC Federation.

SKC Federation’s own bank account In the coming days SKC Federation will

have its own bank account and you should directly pay into the Federation.

AGENDA FOR CHANGE

Justice

ACTION PLAN

Opening an office in Delhi

Suggestions for such an office invited

National Reform Board

What should be the attributes of members of NRB?

National Reform Board

Please suggest names NRB membership

First NRB meeting in end-April Outline of steps leading to first meeting

of the NRB

Agenda for NRB meeting Discussion of Vision Discussion Agenda for Change Finalisation of Policy Committees Authorisation to convene Policy Committee

meeting

Membership of organisational Committees Fund raising Financial systems management Membership management Training and development Media and communications Physical office

DAY 4:

Closing day

9:30 am to 12 noon including tea

11:45 am Vote of thanks

12 noon -1 pm: Get bags and have lunch (from 12:30 pm

1 pm: Departure on excursion – how many are going?

8 to 9 pm: Return to Phase 2

What we have agreed so far

Vision (subject to improvements) Agenda for Change (subject to

improvements) SKC Federation as our platform to

work together Action plan

Action plan

Membership form will be published and sent to those who expressed interest

SKC Federation office will be opened in the next week after finalisation of formalities

National Mentors Council (NMC) will be activated

Revised Vision and Agenda for Change will be sent for comment to those joining SKC Federation

National Mentors Council meeting will be held in end-April/early May to discuss key documents and strategies

Action Plan contd.

Policy Committees will be finalised and first meetings will be held in May to: Improve Agenda for Change Create detailed policies Create detailed Strategic Plans

Building a wave

Communicating key messages to the people

Slogans

11:30 am Closing comments Suneeta Dhariwal Sanjeev Sabhlok

Vote of thanks by Anil Sharma

Concluding Address

Dr Jaideep Arya

Thank you