Thursday, July 5, 2007

Views on article published "A Counter to ERC Recommendations"



The writer seems to have conveniently ignored the basic philosophy of ERC. ERC had made many recommendations - staff cut among one of them - because the government sector was hugely overstaffed and in view of liberalization, there are number of areas where government's presence has become completely redundant. Can anybody tell what the government is doing in the areas of telecom, energy, labour, heavy industries, mines, rural development (which is purely a state subject) and purely private initiative like agriculture. The above list is only indicative and not exhaustive.

While the writer's contention that work force in judicial areas should be increased can be agreed to, his other arguments for increasing work force in education, health, rural development, etc. is contrary to ground reality and does not stand to reason.

For example, education. The Government has locked substantial resources and manpower in this area with the net result that in spite of the Government's presence we are one of the most illiterate country in the South Asia. Even a tiny country like Sri Lanka is doing much better than us. Humblest of private schools in remote rural area are doing much better than the government owned schools with better paid teachers and staff. Education sector does require public spending but, other innovative methods hitherto ignored are required to be looked into. Innovative methods like education vouchers, or management of government schools with local participation, etc. are required. Similalry health sector where government has made huge investment since independence have hardly been delivering. Schemes like health insurance with matching government contribution can yield much better results. You surely donot chop your finger which bleeds but you definitely avoid it getting injured again. The history of countries which have developed during the last century tells us that it is the huge dose of development which can increase employment and not schemes started by the government with the sole aim of employment creation. In fact they are bad economics and we have already seen the result of such bad economic policies which we have adopted since independence. Huge Government money is required in creating and improving infrastructural situation of the country which can give a push to economic growth. It is the sustained economic growth which can improve the economic conditions of the people by increasing employment prospects and not merely job craetion by the government sector.

Honest surveys and sincere efforts by the government are pious intentions. Government spending breeds corruption. The Government's job is to create ideal and fertile ground for citizens to prosper.

- V.P. Rajvedi

1 comment:

Anonymous said...

You are right Mr. Rajvedi, but I think Expenditure Reforms Commission was particularly appointed to downsize the government and to reduce its operations expenses. This Commission gave its reports on downsizing of the government force and even each government ministry and department was covered under its report making suggestions how to reduce manpower and cutshort operational expenses. It suggested closing down of many of government departments and mergers of many without keeping in mind what would happen to the sufferers.

Sunil Chaturvedi, Expenditure