Workshop on Public Sector Governance in India

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1 Agenda Workshop on Public Sector Governance in India Organized by The Indian Institute of Public Administration in partnership with the Government of Japan and the World Bank Institute At The Indian Institute of Public Administration New Delhi October 29- November 2,

2 Opening Ceremonies Monday, October 29 th : Morning Registration Inauguration 9:30 am 10:00 11:00 am Chair: Mr. B.S. Biswas, Director, IIPA Introductory remarks by Dr. V N Alok, IIPA Welcome remarks by Mr B S Baswan, Director, IIPA Welcome remarks by Ms Isabel M Guerrero, Country Director, World Bank, India (TBC) Welcome remarks by Ambassador of Japan to India (TBC) (Name is to be announced) Inaugural Address by Mr Pawan Bansal, Union Minister of State for Finance (TBC) Workshop introduction by Vinod Shrma, IIPA and Dr Anwar Shah, World Bank, Washington, DC Group Photograph 11:00 11:15 am Fiscal Federalism Session 1: 11:15 12:30 pm Fiscal Federalism: Principles and Practices Speaker: Dr Anwar Shah, World Bank, Washington, DC This session will also examine conceptual underpinnings and practices for the assignment of taxing, spending and regulatory responsibilities and ensuring fiscal discipline and prudent fiscal management at national and sub-national levels. 2

3 Session 2: 12: :45 pm Fiscal Responsibility and Fiscal Discipline Speaker: Mr Mohan Nagarajan, Senior Economist, World Bank, New Delhi. Fiscal policy coordination to achieve fiscal discipline and fiscal sustainability represents a major challenge for large federal countries. This topic will examine legal frameworks for ensuring fiscal discipline and prudent fiscal management at sub-national levels as practiced in various countries. The incentive compatibility of various approaches in inducing fiscally responsible behavior will be examined Lunch Break 1:45-2:45 pm Monday, October 29, 2007 Afternoon Session 3: 2: :00 pm. Fiscal Policies for Regional Development Speaker: Mr V J Ravishankar, Senior Economist, World Bank, New Delhi (TBC) Regional inequalities represent a continuing development challenge in most countries. Analysis of international experience suggests that (i) regional development policies that rely on direct government intervention and tend to distort the market have failed to achieve the desired objective in most countries; and (ii) federal countries are more concerned and tend to do better in restraining regional inequalities, mainly because of the greater political risk these disparities pose for such countries. India's past experience with fiscal and other incentives to lure private investors to backward areas did not result in balanced development as intended; it resulted in tax raiding, fiscally harmful competition among states and less than potential economic performance of the national economy. The new liberalized policy climate today calls for a new approach to regional development. This session will examine public policy options to reduce regional disparities in the current economic environment. It will discuss the implications for the Finance Commission, the central Planning Commission, Ministry of Finance and line ministries, as well as for the State Governments. 3

4 State and Local Government Organization and Finance Tuesday, October 30, 2007: Morning Session 4: :15 am Local Government Organization and Finance: A Review of International Practices Speakers: International Overview - Dr. Anwar Shah, World Bank Japan Case Study: Professor Kiyohito Hanai, Seijo University This session will discuss alternative models of jurisdictional design of various local governments and criteria for assignment of responsibilities. It will provide a comparative international perspective on approaches to jurisdictional design, powers and functions of local governments. 11:15 11:30 am Session 5: 11:30 am 12:30 pm State-Local Fiscal Relations Speaker: Dr. V N Alok, Indian Institute of Public Administration, New Delhi With the passage of 73 rd and 74 th Constitutional Amendments, Part IX and IXA have been inserted in the Constitution for rural and urban local bodies respectively and state legislature has been made responsible to transfer functions listed in the newly created 11 th and 12 th Schedules. The state is also required to transfer the concomitant powers. New fiscal arrangement necessitates every State to constitute a finance commission (SFC) at regular interval of five years. It also requires National Finance Commission to suggest measures to augment states consolidated funds due to SFCs recommendations. This session will discuss the recent developments in the new State-local fiscal framework in India. 12: :30 pm Session 6: 12: :45 pm State and Local Government Finance including Borrowing Speaker: Mr P K Mohanty, Joint Secretary, Ministry of Urban Poverty, Government of India 4

5 For greater accountability, own source revenues must constitute the dominant source of financing local/municipal services. This session will discuss the menu of taxes and charges suitable for local/municipal government assignment and practices to ensure better exploitation of own revenue bases. It will also discuss the challenges faced at the state and local level for borrowing to meet critical infrastructure deficiencies. Lunch Break 1:45-2:45 pm Tuesday, October 30, 2007: Afternoon Session 7: 2: pm Budget Methods and Practices Speaker: Dr Anwar Shah, Lead Public Sector Management Specialist, World Bank, Washington Modern public expenditure management (PEM) has shifted the role of budget systems from the traditional function of financial control to maintaining fiscal discipline and improving efficiency in resource allocation and service delivery. Results-oriented budgeting, allocating resources based on output expectations, has often been advocated as a tool to improve public sector performance. The session aims to introduce the concept of results-oriented budgeting, compare good practices in a few countries, and discuss its potential for application in developing countries. Innovations in Public Management Wednesday, October 31, 2007: Morning Session 8: am Reinventing Government New Public Management Speaker: Dr Anwar Shah, Lead Public Sector Management Specialist, World Bank, Washington. In contrast to control-oriented public administration paradigm, the new public management seeks to enhance the performance of the public sector through managerial flexibility but accountability for results. Countries vary in pursuing better results in the public sector. Some countries like New Zealand and United Kingdom apply the model of make managers manage through performance contracts. Some other countries like Australia and Sweden develop the model of let managers manage by empowering public mangers with more trust and flexibility. Both theoretical knowledge and practical experiences will be reviewed in this session. 5

6 10: :00 am Session 9: 11:00 am 12:15 pm Combating Corruption and Malfeasance Speakers: Dr Anwar Shah, Lead Public Sector Management Specialist, World Bank, Washington Mr Vikram Menon, World Bank, New Delhi Corruption is a symptom of failed governance. Dysfunctional governance arises because citizens lack the information about government performance in delivering services and are powerless to demand accountability from a government that fails to serve the public interest. This session will critically examine traditional policies to combat corruption and present a neo-institutional economics perspective on alternate approaches to curtail corruption. Session 10: 12: :30 pm 12: :45 pm Public Financial Management: Internal Controls and External Oversight Speaker: Mr A K Awasthi, Director General, Commercial, Office of the CAG This session will examine the functioning of a modern Internal Audit system, reviewing organizational principles and standards, the value added of internal controls, risk management, audit committees, problems and reforms, the role of professional bodies, and insights on how to sell internal audits to the rest of the organization. It will also place external audit in the accountability chain and review planning and programming, incentive structures, organization and independence of Supreme Audit Institutions, the role of Public Accounts Committees and civil society, and the evaluation of government performance. Lunch Break 1:45-2:45 pm Wednesday, October 31, 2007: Afternoon Session 11: 2: pm Procurement Speaker: Joel Turkewitz, Senior Public Procurement Specialist, World Bank, New Delhi. 6

7 Government procurement has been identified as a key area for improving transparency and efficiency in public finance management. This session examines the administrative structure of the procurement system, the objectives, strategies, and the legal framework. It will also discuss issues relating to corruption and the challenges and opportunities in e- procurement initiatives. Official Dinner 7: 30 pm (TBD) Service Delivery Thursday, November 1, 2007: Morning Session 12: :45 am Public Service Delivery: Practices, Reforms and Lessons Speaker: Mr Vikram Chand, Sr Public Sector Management Specialist, World Bank, New Delhi This session will focus on successful innovations in service delivery across India and identify common factors that explain why these innovations worked. In addition, this session will draws lessons from these innovations that might help improve service delivery across sectors and facilitate the transplanting of success stories to other settings. 10: :00 am Session 13: 11:00 am 12:15 pm Monitoring Service Delivery Performance Speaker: Prof Pranab Banerji, Indian Institute of Public Administration, New Delhi on Food Security and Public Distribution System 12: :30 pm Session 14: 12: :45 pm Finance and Provision of Education: Speaker: Mr B S Baswan, Director, Indian Institute of Public Administration, New Delhi Improving the quality of and access to education is an important policy objective in all countries. This session will discuss approaches to finance and provision of various types of education practiced in different countries. Tax, grant, voucher and user finance options will be explored. Alternative service delivery arrangements including public-private partnerships will be discussed. Lunch Break 1:45-2:45 pm 7

8 Accountability and Transparency Thursday, November 1, 2007, Afternoon Session 15: 2: :00 pm Governance, Transparency and Voice Prof Sekhar Singh, Formerly with Indian Institute of Public Administration, Delhi Election of public officials, client financing, advisory councils, and direct participation in the delivery of services are all ways of giving clients greater voice. This session explores right to information, citizen-centered governance and the various options for creating an enabling environment for responsive, responsible and accountable governance. This session explores alternatives that works best in terms of giving consumers voice and choice and in terms of effective and efficient delivery of services [This session is being scheduled here due to the availability of speaker] Session 16: 4: :00 pm Finance and Provision of Health: Efficiency and Equity Speaker: TBD, World Bank, New Delhi Parallel with education provision, health is another prominent component of basic social services particularly for the poor. The session will provide a view on respective roles of various governments and the civil society in the finance and provision of health. The roles of fees and charges and various grants and performance monitoring mechanism will be highlighted. Friday, November 2, 2007: Morning Session 17: am E-government Speaker: Mr Ajay Sawhney, Joint Secretary, Training, Department of Personnel and Training, Government of India The session will discuss the impact of e-government on improving delivery of Government services. Key elements of a country level strategy will be identified. A number of examples of different types of e-government applications would be discussed. 8

9 Reasons for success and failure of e-government projects will be analyzed. Features of e- government applications that can help reduce corruption will be identified. The session will conclude with critical success factors in implementing e-government. 10: :00 am Session 18: 11:00 am 12:15 pm Governance: Concepts and Measurement Speaker: Dr Anwar Shah, Lead Public Sector Management Specialist, World Bank, Washington D.C. The session will define various concepts of governance, their measurement and provide a critical review of available worldwide governance indicators. 12: :30 am Friday, November 2, 2007: Afternoon Session 19: 12:30 am 1:30 pm Finance and Provision for Calamity Relief Speaker: Prof Vinod K Sharma, Indian Institute of Public Administration, New Delhi Workshop Closing and Valediction 1:30-2: 15 am Lunch 2:15-3:00 pm 9

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