Public Administration Reform and Rural Service ProvisionA 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

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

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?

Outline

1) Introduction

2) Conceptual Framework

3) International Paradigms in Administration Reform

4) Public Administration Reforms in India and China

5) The Case of Agricultural Advisory Services

6) Conclusions

Rural services and infrastructure

Agricultural research and extension

Drinking water

Health and education

Irrigation

Conceptual Framework

OutcomesSustainable

pro-poor development

Other factors

OPerformance of rural service provision* Priorities* Quality * Efficiency* Equity* Sustainability

PAbility of citizens to demand and supervise services

D

Capacity of administration to finance and supply services

S

good fitCharacteristics of service providers

A

Measures to improve capacity for service

delivery(e.g., staff, qualification, incentives, outsourcing)

MS

good fit

Measures to improve voice and

accountability in service delivery

MD

Characteristics of local communities

good fitL

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

International Trends in Administration Reform

Adapted from Fukuyama, 2004

Strengthof state(Capacity, effectiveness of public administration)

Scope of the state (Range of functions)

AB

CExpansion of functions

“Neo-patrimonial downward spiral”

1960s-1980s

DStructural adjustment 1980s/1990sE

Building state capacity

F

Addressing market failures

Demand-side approaches

Supply-side approachesof reform

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 electionsImproved rural service provision (Zhang et al., 2004)

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.

Governance Performance Indicators- based on surveys among businesses & citizens -

Kaufmann et al., 2005

Governance Performance Indicators

Change over time: Government Effectiveness

China

India

Change over time: Control of Corruption

China

India

Change over time:Regulatory Quality

Change over time:Voice and Accountability

China

India

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

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

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

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

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!

Thank you!

www.ifpri.org

r.birner@cgiar.org