UPA-II's big ideas undone by poor implementation
Business Standard Editorial Comment | New Delhi April 8, 2014 Last Updated at 21:40 IST
The record of the United Progressive Alliance's (UPA's) second term is full of dashed hopes. There was no shortage of big ideas when it took office. Some of them were even transformative; others were essential reform. But there were failures at every step. Insufficient attention was paid to co-ordination between various wings of the government; political conviction did not go deep enough; the legal groundwork laid was frequently faulty; and planning for proper implementation and evaluation came too late in most cases. This newspaper, as part of a series on UPA-II's report card, has already examined three such ideas: the unique identification (UID) scheme, or Aadhaar; fuel price deregulation; and the right to education (RTE). In each case, some combination of these problems has ensured that a good idea has not been allowed to reach its full potential. Frequently, last-mile problems have derailed the project.
Aadhaar will probably hurt the UPA's constituents, especially the Congress, the most. It engendered the most hope. Across India, the poorest of the country's citizens lined up to get an identity - for lack of proof of identity is one of their most pressing problems. Aadhaar was conceptualised as a lightweight utility that could be used by various agencies for identification. But, early on, problems developed. Short-sighted opposition by empire builders in the home ministry meant that a conflict developed between the UID project and a leftover population register plan from the National Democratic Alliance years meant to establish the number of illegal immigrants. The lightweight nature of Aadhaar was immediately compromised, and proof of address and citizenship began to be asked for at enrolment. Meanwhile, the government struggled to frame an essential data privacy law, faced by opposition from activists - and disorder in Parliament meant that the UID project could not even be granted statutory backing. This helped enable the courts to pass a series of anti-Aadhaar orders that may cripple its adoption, and leave the scheme dead in the water after the UPA passes. Aadhaar's problems have affected other reforms, too. For example, direct transfers of cooking gas subsidy, which were to stem leakage and shut down the black market, have been rolled back after political pressure from within the Congress party. The deregulation of fuel prices should have been a priority for the government the moment the fiscal deficit came under pressure after the financial crisis. But it delayed for far too long - from fear of its allies. Diesel deregulation was patchy - involving dual pricing for different consumers - and has not gone the full distance, stopping at a Rs 5 per litre subsidy.
Fuel price rationalisation may be more beloved by macroeconomists than consumers. But even the UPA's welfarist schemes such as the RTE have stumbled on implementation. Inputs and spending were prioritised over outcomes; this means that quality standards did not improve sufficiently. In its 2014 manifesto, the Congress has had to accept this failure, by saying the focus of the main education mission will be shifted from quantity to quality. The restrictions and regulations in the RTE Act on private schools increase costs, but are far from certain to impact quality at all. Had the UPA approached the RTE and other issues such as Aadhaar and fuel price rationalisation with greater will, and with more co-ordination and planning, it could have left a less complicated legacy than it has.
Aadhaar will probably hurt the UPA's constituents, especially the Congress, the most. It engendered the most hope. Across India, the poorest of the country's citizens lined up to get an identity - for lack of proof of identity is one of their most pressing problems. Aadhaar was conceptualised as a lightweight utility that could be used by various agencies for identification. But, early on, problems developed. Short-sighted opposition by empire builders in the home ministry meant that a conflict developed between the UID project and a leftover population register plan from the National Democratic Alliance years meant to establish the number of illegal immigrants. The lightweight nature of Aadhaar was immediately compromised, and proof of address and citizenship began to be asked for at enrolment. Meanwhile, the government struggled to frame an essential data privacy law, faced by opposition from activists - and disorder in Parliament meant that the UID project could not even be granted statutory backing. This helped enable the courts to pass a series of anti-Aadhaar orders that may cripple its adoption, and leave the scheme dead in the water after the UPA passes. Aadhaar's problems have affected other reforms, too. For example, direct transfers of cooking gas subsidy, which were to stem leakage and shut down the black market, have been rolled back after political pressure from within the Congress party. The deregulation of fuel prices should have been a priority for the government the moment the fiscal deficit came under pressure after the financial crisis. But it delayed for far too long - from fear of its allies. Diesel deregulation was patchy - involving dual pricing for different consumers - and has not gone the full distance, stopping at a Rs 5 per litre subsidy.
Fuel price rationalisation may be more beloved by macroeconomists than consumers. But even the UPA's welfarist schemes such as the RTE have stumbled on implementation. Inputs and spending were prioritised over outcomes; this means that quality standards did not improve sufficiently. In its 2014 manifesto, the Congress has had to accept this failure, by saying the focus of the main education mission will be shifted from quantity to quality. The restrictions and regulations in the RTE Act on private schools increase costs, but are far from certain to impact quality at all. Had the UPA approached the RTE and other issues such as Aadhaar and fuel price rationalisation with greater will, and with more co-ordination and planning, it could have left a less complicated legacy than it has.
