1. 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

2. 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

3. 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?

4. Outline Introduction Conceptual Framework
International Paradigms in Administration Reform
Public Administration Reforms in India and China
The Case of Agricultural Advisory Services
Conclusions

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

6. 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

7. 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

8. 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

9. 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)

10. 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.

11. Governance Performance Indicators - based on surveys among businesses & citizens -
Kaufmann et al., 2005

12. Governance Performance Indicators

13. Change over time: Government Effectiveness
China
India

14. Change over time: Control of Corruption
China
India

15. Change over time: Regulatory Quality

16. Change over time: Voice and Accountability
India
China

17. 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

18. 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

19. 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

20. 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

21. 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!

22. Thank you!