Regina Birner Development Strategy and Governance Division IFPRI Public Administration Reform and Rural Service Provision A 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 Introduction Conceptual Framework International Paradigms in Administration Reform Public Administration Reforms in India and China The Case of Agricultural Advisory Services Conclusions

Rural services and infrastructure Agricultural research and extension Irrigation Drinking water Health and education

Conceptual Framework L Characteristics of local communities good fit Measures to improve voice and accountability in service delivery MD Outcomes Sustainable pro-poor development Other factors O Ability of citizens to demand and supervise services D Performance of rural service provision * Priorities * Quality * Efficiency * Equity * Sustainability P Measures to improve capacity for service delivery (e.g., staff, qualification, incentives, outsourcing) MS Capacity of administration to finance and supply services S good fit Characteristics of service providers A

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 Strength of state (Capacity, effectiveness of public administration) B A Building state capacity F Addressing market failures Demand-side approaches Supply-side approaches of reform C Expansion of functions “Neo-patrimonial downward spiral” 1960s-1980s D Structural adjustment 1980s/1990s E Scope of the state (Range of functions) Adapted from Fukuyama, 2004

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 elections Improved 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 India China

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