Sanjeev Sanyal Speaks About The Importance of Process Reforms At India Economic Summit

Today, Sanjeev Sanyal, member of Prime Minister's Ecomic visory Council, attended Republic TV's India Ecomic Summit . Focus of his talk was government efficiency and process reforms. 

He began by quipping that se days, a lot of people are hearing about government efficiency, due to Elon Musk. 

Musk has proposed creating a Department of Government Efficiency in US. DOGE, if you will, which, coincidentally, used to be title of he of Venetian oligarchy. Musk, like many in Silicon Valley, has been influenced by James Burnham's seminal book - ‘ Manrial Revolution’.  

Sanyal stated that current Indian government, has been working on government efficiency for quite some time. 

Why do we need process reforms?

To highlight importance of process reforms and government efficiency, he gave example of protected monuments. He revealed that India has hundreds of protected monuments. t all of se are ancient temples, forts or Taj Mahal. He spoke about a protected monument near Kashmere Gate in Delhi. This monument, was dedicated to a British colonial officer. Apparently, a rar brutal fellow (unsurprising). However, his moral character isn't really point. 

Imperial regime built a monument dedicated to him and y included it in list of protected monuments. However, after India attained independence, this monument remained on list. Some deces later, this colonial officer's homeland, which is Ireland, said that y want statue dedicated to him. statue was sent to Ireland. Astonishingly, even after monument was shipped to Ireland, area where this chap's statue stood, remained in list of protected monuments. Needless to say, this is quite absurd. 

scourge of government inefficiency 

Sanyal's point? body responsible for maintaining list of protected monuments, was so inefficient, that y didn't even bor updating list. Sanyal suggested that re are numerous such government ncies, regulations, which almost like a cobweb, block nation's path of prosperity. 

To surprise of many in audience, Sanyal revealed that until pandemic, working from home was illegal in India! Crux of Sanyal's talk was that government inefficiency makes it harder for people to start a new business, makes people risk-averse. Sanyal suggested that a lot of regulations, well-indented though y may be, over time, become barriers. 

All governments in world, all large organizations as well, are bound to, overtime, develop sclerosis. Sanyal stated that process reforms are extremely important, even though y are underrated, because se are reforms that fix nuts and bolts of system. 

How process reforms are moving needle

He spoke about time it takes to close a business in India. To close down a business, one would have to jump through numerous hoops in India, coax a number of government officials. To close down a business! Imagine, grind one has to go through to start a business. good news? Due to certain process reforms, time is takes to close down a business in India has gone down considerably. Sanyal, in his talk, revealed that se days, one can close down a business more quickly in India, than y can in Singapore. 

Sanyal, concluded his talk, by saying that numerous such process reforms are underway. He quipped that y usually don't make it to helines, re is debate about m in news studios, but se reforms are burning away cobweb of pointless regulations, so to say, in numerous sectors. end result? India transforming into a dynamic society, where, let's say someone who wants to raise money to start a deep tech company, can do so without being harassed by ncies. 

se process reforms, needless to say, are necessary. Bureaucratic ncies, often develop a life of ir own. Moreover, incentive structure within bureaucracies in general are such that y are quite risk averse. result? Most bureaucratic ncies don't work on solving key problems, as one has to take some amount of risk to solve a problem. Inste, a lot of bureaucratic ncies just work to increase ir own power. Regular mowing of lawn is perhaps necessary to ensure a nation's flourishing.