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Public Administration Reform and Rural Service Provision A Comparison of India and China

Public Administration Reform and Rural Service Provision A Comparison of India and China. Regina Birner Development Strategy and Governance Division IFPRI. Role of the Public Administration. Plays an important role for economic development Strong and independent public administration

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Public Administration Reform and Rural Service Provision A Comparison of India and China

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  1. Public Administration Reform and Rural Service ProvisionA Comparison of India and China Regina Birner Development Strategy and Governance Division IFPRI

  2. Role of the Public Administration • Plays an important role for economic development • Strong and independent public administration • one of the key characteristics of the “developmental state” • “Asian growth miracles” – all have a strong public administration • Nevertheless: • Public administration often considered as a “black box” • Largely neglected in studies of agricultural development

  3. Role of the Public Administration for Agricultural and Rural Development • Providing basic services and infrastructure in rural areas • Water supply, health, education, transport • Providing a legal and regulatory framework for agriculture • Land administration, contract law, cooperative law, food safety and environmental standards, etc. • Helping to resolve market failures in agricultural development • Agricultural research, extension and training • Agricultural credit and insurance • Providing agricultural infrastructure • e.g., irrigation • Question addressed in this presentation: • How can reforms of the public administration contribute to better rural service provision?

  4. Outline • Introduction • Conceptual Framework • International Paradigms in Administration Reform • Public Administration Reforms in India and China • The Case of Agricultural Advisory Services • Conclusions

  5. Rural services and infrastructure Agricultural research and extension Irrigation Drinking water Health and education

  6. L Characteristics of local communities good fit MD Other factors Measures to improve voice and accountability in service delivery D Ability of citizens to demand and supervise services P Performance of rural service provision* Priorities * Quality * Efficiency * Equity * Sustainability O OutcomesSustainable pro-poor development good fit S MS Capacity of administration to finance and supply services Measures to improve capacity for service delivery(e.g., staff, qualification, incentives, outsourcing) A Characteristics of service providers good fit Conceptual Framework

  7. Changing Paradigms on the Role of the Public Administration • 1950s to 1970s • Paradigm: State intervention required for development • Expanding the range of state functions  administration • Example: Large-scale rural development programs • 1980s to 1990s • Paradigm: Structural adjustment – “Getting prices right” • Down-sizing public administration • New Public Management (NPM) approach • 1990 to 2000s • Paradigm: “Getting institutions right” • Building state capacity, promoting good governance • From “one-size-fits-all” to “good fit”; enabling state

  8. F Demand-side approaches Supply-side approachesof reform Building state capacity C Expansion of functions “Neo-patrimonial downward spiral”1960s-1980s Addressing market failures E Structural adjustment 1980s/1990s D International Trends in Administration Reform Strengthof state(Capacity, effectiveness of public administration) B A Scope of the state(Range of functions) Adapted from Fukuyama, 2004

  9. Public Administration Reform in China • Supply-side approaches • Far-reaching reforms in 1993 and 1998 • Reduction of state functions (280 functions abolished) • Reduction of administrative staff • Central/provincial level: 50 %, local level: 20 % • Increasing qualification of staff, more service-orientation • Division of administrative functions, delegation • E-government • Demand-side approaches • Fiscal decentralization, starting in 1980s • Introduction of village committees and village elections • Improved rural service provision (Zhang et al., 2004)

  10. Public Administration Reform in India • Supply-side approaches • Department of Administrative Reform since 1964 • Numerous Commissions and Committees • Resistance against change by elite services as well as labor unions • Differences among states in implementation • Strong e-government initiative • Demand-side approaches • Constitutional Amendments in 1992 started far-reaching political, fiscal and administrative decentralization • Considerable variation in implementation • Effects on service provision differ among states • Affirmative policies (reservation of seats) • Transparency: Right to Information Act, social audits, etc. • Civil society initiatives: Citizen report cards, etc.

  11. Governance Performance Indicators- based on surveys among businesses & citizens - Kaufmann et al., 2005

  12. Governance Performance Indicators

  13. Change over time: Government Effectiveness China India

  14. Change over time: Control of Corruption China India

  15. Change over time:Regulatory Quality

  16. Change over time:Voice and Accountability India China

  17. Effects of General Administrative Reform • Difficult to assess from aggregate indicators! • Reforms may have been effective in reducing deterioration of service provision? • Reforms may have contributed to saving financial resources? • Need to learn more from reform experience! • Empirical research needed that looks inside the “black box” of public administration • Surveys among members of the public administration • Analyzing benefits and costs – including transaction costs - of reform

  18. The Case of Agricultural Extension:Similarities between India and China • Capable public sector agricultural extension was essential for Green Revolution • During the 1990s, public sector agricultural extension systems deteriorated • Qualification and morale of staff declined • Lack of operational resources • Variety of alternative approaches emerged • Commercialization, contracting-out • Farmers’ organizations providing extension • Renewed political interest in revitalizing extension • Related to increased attention to agriculture in view of rural distress

  19. Agricultural Extension: Differences between China and India • Decentralization: • China: Complete decentralization of extension in 1993 • Mixed results • Lack of political priority – non-extension tasks • India: Implementation of decentralization left to states • Limited implementation in most states • Institutional Innovations: • China: Various forms of contracting • Demand-driven services (e.g., “share” contract) • India: Agricultural Technology Management Agency • Autonomous agency with farmer representation

  20. Extension reform policies • Reform suggestions for China (Project Study Group, Research Center for Rural Economy) • Far-reaching reduction of extension personnel • Concentration on core functions • Outsourcing and commercialization, competition • Farmers’ associations, cooperatives and village cadres should have say in extension management • Reform suggestions for India (Policy Framework by Ministry of Agriculture) • Role of public extension for poor farmers acknowledged • Outsourcing, competition and privatization where possible • Demand-side approaches, following the ATMA model • Focus on mainstreaming of women

  21. Conclusions • Public sector management reforms in India and China followed general trends - with important variations. • Demand-side measures easier to apply in democratic systems than in one-party regimes; however, China did introduce village-level elections. • Supply-side measures that involve large-scale restructuring or reduction of personnel are difficult to implement in democracies. • More research is needed to provide empirical evidence and evaluate different models of reforming rural service provision. • Promote learning different reform experiences!

  22. Thank you! www.ifpri.org r.birner@cgiar.org

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