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Chapter - VIII


Governance Reforms

Governance relates to the management of all such processes that, in any society, define the environment which permits and enables individuals to raise their capacity levels, on one hand, and provide opportunities to release their potential and enlarge the set of available choices, on the other. The State is responsible for creating a conducive environment for building individual capabilities and encouraging private initiative.


Efficient governance requires efficient institutions and the efficiency and effectiveness of

institutions in turn; depend on their adopted delivery mechanism and the supportive framework of rules and procedures. Each of these needs to work in harmony with the other to discharge the functions for which the institutions have been created, “only then one would expect the institutions to fulfil their stated

objectives and carry out their assigned responsibilities in managing the affairs of the society.


For improving governance includes improved people’s participation, effective decentralization of

governance, involvement of civil society, especially voluntary organizations and the crucial right to information. Civil services reforms aimed at improving transparency, accountability, efficiency, fair play and honesty, procedural reforms for public-government interface to get rid of the system of unnecessary rules, procedural regulations and controls, reform of revenue system and mobilization of resources and

judicial reforms with a view to hastening the process of delivery of justice.


To make governance meaningful and effective, systematic and professional programme/project

formulation, synergy and co-ordination between different government departments and agencies, rationalization of centrally sponsored schemes using zero-based budgeting and more effective monitoring and evaluation.


It has been pointed out that entrepreneur setting up an industrial unit need a very large number of

permissions from various departments, each of which results in harassment and delay and even corruption. The cumbersome procedures result in high transaction cost. Sweeping reform of these regulatory systems

is needed to reduce the transaction costs of doing business.

Simplified procedures and one-window

arrangements to improve the business climate will help in this direction.


“Prevention is better than cure”. This maxim of universal application, holds good in administration

and more so in respect of prevention of corruption, as it would be much better to devise systems and measures to prevent corruption rather than to investigate case and prosecute public servants through a

complex and time-consuming process.

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