Despite Growth, India  CAN  provide services to  Poor
“ Blind Man” “  I am Blind… Please Help Me… ”
Source: Census of India Annexure III, GOI 2001 “ Poverty has induced unwanted regional imbalance”
Why services are failing for poor people? <ul><li>Public spending usually benefits the rich,  </li></ul><ul><li>not the po...
But  services  can work for poor… <ul><li>By empowering poor people to </li></ul><ul><ul><li>Monitor and discipline servic...
Propositions   given by various   Whitepapers More Land Reform More rapid poverty reduction More rapid bank branch expansi...
Framework of  Accountability Policy Makers Poor People Providers Source: World Development Report 2004
Concept of  ‘Good Governance ’ <ul><li>Participation </li></ul><ul><li>Transparency </li></ul><ul><li>Efficiency </li></ul...
Yardsticks  of  Budget  Planning   <ul><li>Proportionate Allocation of funds based  </li></ul><ul><li>on development orien...
WB Support to Change  Policies  into live  Projects
DPC  –  A  Decentralized  Approach Tamil Nadu Rs 500 Crore Corpus Fund for District Planning Committee Source: All Village...
Providers Public Sector Not-for-Profit Sector Private, for-profit Sector <ul><li>Ministry </li></ul><ul><li>Department </l...
We need a frontline  Provider  who <ul><li>is capable </li></ul><ul><li>has access to adequate resources & inputs </li></u...
“  Third Party  ” ? Who? <ul><li>De-concentration </li></ul><ul><li>Devolution </li></ul><ul><li>Delegation </li></ul><ul>...
Policymakers &  Providers Services run by government  ( control/comparison, CC ) •  NGO manages district, cannot hire and ...
Educo   Program – El Salvador EDUCO promoted parental involvement… … which boosted student performance ( % increase in tes...
Routes of  Accountability
Eight Ways of Delivery & Monitoring Source: World Development Report 2004 Government provision or contracting Central-gove...
Decentralization  is a Key Local Policy Makers Poor People Providers Central Policy  Makers The more people differ in thei...
Do’s &  Don'ts Don’ts •  Do not leave it to the private sector •  Simply increasing  public spending is not the solution •...
Biggest Qs on this issue? <ul><li>Managerial Reforms or Institutional Reforms  or both? </li></ul><ul><li>MRO – Maintainin...
Our  initiative  towards sustainable development “ It would be nice if the poor were to get even  half of the money that i...
Bibliography <ul><li>World Development Report 2004 : Making Services work for poor </li></ul><ul><li>World Development Rep...
THANK YOU!
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Despite Growth, India Can Provide Services to its Poor

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" One of the Brilliantly Researched Presentation of all times..." - Nafisa Ma'm - GIDF Ahmedabad

These slides were presented at National Economic Planning 2008 @ IIPM Ahmedabad by Sparrow & Turner Group consits of Balasubramanian V.A, Rahul Guhathakurta, Samir Patel, Simit Shah.

Individual Scores @ NEP 2008 - IIPM Ahmedabad
1. Rahul Guhathakurta - 87
2. Balasubramanian V.A - 85
3. Simit Shah - 79
4. Samir Patel - 77

* All marks are obtained out of 100 including project report marks.

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  • Despite Growth, India Can Provide Services to its Poor

    1. 1. Despite Growth, India CAN provide services to Poor
    2. 2. “ Blind Man” “ I am Blind… Please Help Me… ”
    3. 3. Source: Census of India Annexure III, GOI 2001 “ Poverty has induced unwanted regional imbalance”
    4. 4. Why services are failing for poor people? <ul><li>Public spending usually benefits the rich, </li></ul><ul><li>not the poor. </li></ul><ul><li>Money fails to reach frontline service providers. </li></ul><ul><li>Service quality is low for poor people </li></ul>
    5. 5. But services can work for poor… <ul><li>By empowering poor people to </li></ul><ul><ul><li>Monitor and discipline service providers </li></ul></ul><ul><ul><li>Raise their voice in policymaking </li></ul></ul><ul><li>By strengthening incentives for service providers to serve the poor </li></ul>
    6. 6. Propositions given by various Whitepapers More Land Reform More rapid poverty reduction More rapid bank branch expansion More female literacy More rural industrialization Ravallion and Datt (2002) Foster and Rosenzweig (2003) Burgess and Pande, (2000) Besley and Burgess, QJE, 2000 More rapid poverty reduction More rapid poverty reduction More rapid poverty reduction
    7. 7. Framework of Accountability Policy Makers Poor People Providers Source: World Development Report 2004
    8. 8. Concept of ‘Good Governance ’ <ul><li>Participation </li></ul><ul><li>Transparency </li></ul><ul><li>Efficiency </li></ul><ul><li>Equity </li></ul><ul><li>Accountability </li></ul><ul><li>Gender-sensitivity </li></ul>Source: Empowering the Poor, Angelo Bonfiglioli UNCDF Senior Technical Advisor, 2003
    9. 9. Yardsticks of Budget Planning <ul><li>Proportionate Allocation of funds based </li></ul><ul><li>on development oriented challenges. </li></ul><ul><li>Eventual Effectiveness of Allocated Funds </li></ul><ul><li>Performance Oriented Funding </li></ul>
    10. 10. WB Support to Change Policies into live Projects
    11. 11. DPC – A Decentralized Approach Tamil Nadu Rs 500 Crore Corpus Fund for District Planning Committee Source: All Villages Anna Renaissance Scheme – 2001,Tamil Nadu State Government 3.5 crore, constituting 56% of people live in villages V-1 V-4 V-2 V-3 Untied funds at local level = Rs.20 Lakh per village
    12. 12. Providers Public Sector Not-for-Profit Sector Private, for-profit Sector <ul><li>Ministry </li></ul><ul><li>Department </li></ul><ul><li>Agency/Bureau </li></ul><ul><li>Public sector autonomous corporation </li></ul><ul><li>Community owned </li></ul><ul><li>Not-for-profit Organization </li></ul><ul><li>Small for-profit firms </li></ul><ul><li>Large for profit firms </li></ul>
    13. 13. We need a frontline Provider who <ul><li>is capable </li></ul><ul><li>has access to adequate resources & inputs </li></ul><ul><li>is motivated to pursue achievable goals </li></ul>
    14. 14. “ Third Party ” ? Who? <ul><li>De-concentration </li></ul><ul><li>Devolution </li></ul><ul><li>Delegation </li></ul><ul><li>Privatization </li></ul>Source: Decentralization in India: Poverty, Politics and Panchayati Raj, Craig Johnson Department of Political Science University of Guelph, Ontario
    15. 15. Policymakers & Providers Services run by government ( control/comparison, CC ) • NGO manages district, cannot hire and fire (but can transfer staff), ( contracting in, CI ) • NGO can hire and fire, transfer staff, set wages, procure drugs, etc. ( contracting out, CO ) Source: World Development Report 2001 – Attacking Poverty
    16. 16. Educo Program – El Salvador EDUCO promoted parental involvement… … which boosted student performance ( % increase in test scores per visit ) Source: Making Services Work for Poor People Shantayanan Devarajan and Ritva Reinikka
    17. 17. Routes of Accountability
    18. 18. Eight Ways of Delivery & Monitoring Source: World Development Report 2004 Government provision or contracting Central-government provision Pro-poor politics Client power—experiment with contracts. Client power—experiment with providers Pro-rich politics Homogeneous clients De-concentrated central or local government provision with contracting Local or de-concentrated central government provision Pro-poor politics Client power—experiment with community control Client power—imitate market Pro-rich politics Heterogeneous clients Easy to monitor Difficult to monitor
    19. 19. Decentralization is a Key Local Policy Makers Poor People Providers Central Policy Makers The more people differ in their desires, the greater the benefits from decentralizing service provision.
    20. 20. Do’s & Don'ts Don’ts • Do not leave it to the private sector • Simply increasing public spending is not the solution • Do not depend on technocratic solutions Do • Expand information • Tailor service delivery arrangements/ customization
    21. 21. Biggest Qs on this issue? <ul><li>Managerial Reforms or Institutional Reforms or both? </li></ul><ul><li>MRO – Maintaining ,Repairing or Overhauling? </li></ul><ul><li>Centralize or Decentralize or both? </li></ul>
    22. 22. Our initiative towards sustainable development “ It would be nice if the poor were to get even half of the money that is spent in studying them.”
    23. 23. Bibliography <ul><li>World Development Report 2004 : Making Services work for poor </li></ul><ul><li>World Development Report 2001: Attacking Poverty </li></ul><ul><li>Indian Economic Review, Feb 2008 </li></ul><ul><li>Overview of Rural Decentralization in India, Vol. 1, September 27, 2000 </li></ul><ul><li>Empowering the Poor : Local Governance for Poverty Reduction ,Angelo Bonfiglioli UNCDF Senior Technical Advisor, United Nations Capital Development Fund. </li></ul><ul><li>FARM PRODUCTIVITY AND RURAL POVERTY IN INDIA, Gaurav Datt and Martin Ravallion. </li></ul>
    24. 24. THANK YOU!

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