The challenges the Indian government faces with lateral entry into administration

Source: The post the challenges the Indian government faces with lateral entry into administration has been created, based on the article “What the government doesn’t get about public administration” published in “Indian Express” on 21st August 2024

UPSC Syllabus Topic: GS Paper 2- Governance

Context: The article discusses the challenges the Indian government faces with lateral entry in administration. It argues that public administration differs greatly from corporate management, requiring systemic reforms rather than just bringing in private sector talent.

What is Lateral Entry and How is the Government Using It?

1. Lateral entry involves bringing professionals from the private sector into government roles, particularly at the mid-level.
2. The government sees lateral entry as a solution to administrative inefficiencies, believing that private sector talent can overcome the shortcomings of civil servants selected through the UPSC.
3. Successful examples include Nandan Nilekani, who created the Aadhaar system, and S Ramadorai, who developed a skill development system; both were given Cabinet Minister rank to ensure authority.

What are the Differences Between Public Administration and Corporate Governance?

1. Objective Clarity:

a) Corporate Governance: Focuses on clear, unchanging objectives like profit maximization and increasing stock values.

b) Public Administration: Deals with diverse, changing objectives across sectors like education, health, and security, which shift with government policies.

2. Operational Flexibility:

a) Corporate Governance: Operates with stable goals, allowing for consistent strategies.

b) Public Administration: Must adapt to varying policies and political leadership.

Interaction with Politicians:

a) Corporate Governance: Interacts with politicians on a case-by-case basis.

b) Public Administration: Requires continuous collaboration with politicians to implement policies.

Why is the Government’s Approach Criticized?

1. The government assumes that the flaws in public administration are due to individual officers rather than systemic issues.
2. Bringing in private sector professionals at lower levels, like joint secretary or director, is seen as ineffective due to existing bureaucratic constraints. Successful lateral entries, like Nandan Nilekani’s work on Aadhaar, occurred at higher levels with Cabinet Minister rank.
3. The civil service system is criticized for being outdated and rigid, deepening the bureaucratic model inherited from the British.
4. The real challenge lies in reforming the overall system, not just replacing individuals.

What Steps are Needed for Systemic Change?

1. Political Ownership: Central and state-level political support, led by the Prime Minister and Chief Ministers, is crucial.
2. Collaboration with States: Just as GST was implemented through state cooperation, administrative reforms require state acceptance.
3. Learning from Other Countries: Studying systems in Australia, New Zealand, and OECD countries for possible adaptation.
4. Periodic Meetings: Regular meetings between the Cabinet Secretary, DAR&PG, state chief secretaries, and GOI secretaries could improve coordination.

Question for practice:

Examine how the differences between public administration and corporate governance impact the effectiveness of lateral entry in the Indian government’s administrative system.