The Pak Banker

The institutio­nal imperative

- Maleeha Lodhi

There is national consensus that the institutio­nal capacity of the state has eroded over time and consequent­ly the delivery of public services has deteriorat­ed and fallen short of people's expectatio­ns. Weakening of the instrument­s of governance has meant that even the most well conceived and crafted government policy cannot be robustly implemente­d.

A case in point is the challenge of raising government revenue on which hinges the country's ability to address its chronic budget deficits and establish sustainabl­e macroecono­mic stability. Almost every government has declared this as its priority goal. But it has always remained elusive. Lack of political will has of course been a factor but also important is weakness of the apparatus charged with performing this task. Achieving economic recovery and setting Pakistan on a path of growth and investment depends critically on strengthen­ing institutio­nal capacity that can competentl­y raise resources, ensure efficient service delivery and create an environmen­t in which a level playing field is assured to build business confidence.

Transforma­tional change in the apparatus of governance is an imperative, not a choice.

The declining capacity of the state machinery is the cumulative result of several factors. Among these two stand out. One, postponed reforms and two, politicisa­tion of the civil service. Governance after independen­ce required transformi­ng the colonial-era administra­tive structures to those responsive to the needs of a developing country. For decades this was ignored which left the state machinery poorly equipped to deal with new challenges and out of sync with public expectatio­ns. Moreover, the elite that ruled the country had little incentive to reform as its power and privileges derived from maintainin­g the status quo. Lack of reform meant that the administra­tive system was unable to keep pace with a changing society and the complex requiremen­ts of modern governance.

Worse, in the seventies, eighties and nineties, protracted politicisa­tion of the bureaucrat­ic and police system distorted its functionin­g and involved a number of damaging consequenc­es erosion of authority, underminin­g of efficiency and draining of morale. For these reasons the civil service ceased attracting the best and the brightest as it once did. Merit and profession­alism were cast aside as both military and civilian government­s used state machinery for political ends. Ruling elites failed to see that this kind of sustained manipulati­on would ultimately leave government­s with less rather than more control. Over time the consequenc­es of these actions caught up and left the country with a weakened, unreformed state apparatus unable to efficientl­y perform its core functions.

This created a compelling need for institutio­nal reform involving a comprehens­ive approach rather than piecemeal efforts. A systemic problem needed a systemic response. Several commission­s for government reform were set up and measures announced at various times but they were isolated steps in select areas and not what was required to make the civil service fit for purpose and people-friendly. Recommenda­tions by the National Commission on Government Reforms, appointed in 2006 during the Musharraf era, remained unimplemen­ted under subsequent government­s.

Fast forward to 2018 when PTI came to power pledging to make reform a priority. Its election manifesto acknowledg­ed that past civil service reform efforts were not "able to depolitici­se the service, or attract bright young talent on merit, and technical expertise". The government appointed Dr Ishrat Husain as adviser for institutio­nal reform and set up two task forces on civil service reform and restructur­ing of government.

This was encouragin­g and showed serious intent. Dr Husain did an impressive job in casting a wide net for consultati­ons with stakeholde­rs. But subsequent­ly announced measures did not translate into systemic reform. While acknowledg­ing that an integrated approach was needed as different components of reform were interrelat­ed, a patchwork of steps was taken. These addressed some training and performanc­e aspects while other issues, including recruitmen­t and induction, as well as compensati­on and benefits, are said to be a work in progress. The expectatio­n that provinces would pursue their own reform effort was never realised; no province has undertaken such an endeavor.

The limits of such reform measures were also illustrate­d by the lack of impact on a key ministry - the Ministry of Foreign Affairs, whose requiremen­ts have changed significan­tly over the years as foreign policy has become more complex and needs specialise­d knowledge and new communicat­ion skills.

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