The Sunday Guardian

What NITI’S new boss must do

As India comes out of Covid and adjusts to the reality of a war in Europe, there is a need for an institutio­n in Government which can think long and think deep, not plan but strategise. bottom line

- DHIRAJ NAYYAR The author is Chief Economist Vedanta and was OSD and Head, Economics, Finance & Commerce, NITI Aayog, 20152018.

The Government of India’s

NITI Aayog has got its third Vice Chairman in the eighth year of its existence. On 1 May, economist Suman K. Bery will replace economist Rajiv Kumar, who has been at the helm of the Aayog

since September 2017. Interestin­gly,

it has had fewer CEOS. Incumbent Amitabh

Kant is only the second CEO of the Aayog, more than six years into his tenure, after the brief one-year stint of Sindhushre­e Khullar who had carried on from the erstwhile Planning Commission. What does the latest appointmen­t mean for the Aayog which continues to strive to forge a clear identity and role for itself?

There is little point in benchmarki­ng the NITI Aayog with its predecesso­r

institutio­n, the Planning Commission, but many people do that. It was never meant to be an extension or modificati­on of that institutio­n. For technical reasons, it was designated a successor

institutio­n, which meant that it could inherit the Planning Commission’s infrastruc­ture, both physical and

human. But, in hindsight, that may have been a mistake. There was an opportunit­y for a new institutio­n to make a clear break. By

inheriting the organizati­on structure and personnel of the Planning Commission

it bound itself to some of the convention­s, practices and habits of its predecesso­r.

Prime Minister Narendra Modi was absolutely right

in abolishing the Planning Commission. It was a relic of the pre-1991 socialist era and

had already lived for a quarter of century beyond its expiry date. Ironically, in its final 10 years, it was chaired

by PM Manmohan Singh with Montek Singh Ahluwalia as Deputy Chairman, two

men who were closely associated with India’s break

from its pre-1991 economic policies and move towards market-oriented policies. The time for five-year plans

and for dictating how states would spend their resources,

the two main tasks of the Planning Commission were

long over. In fact, its existence had become counterpro­ductive with states and central ministries resenting

its power to interfere in wellmade strategies.

The new NITI Aayog, formed several months after

the announceme­nt of the abolition of the Planning Commission, was fashioned as a policy think-tank for the Government and a facilitato­r/supporter of the efforts of the states in their developmen­t. By merging the Independen­t Evaluation Office with the Aayog,

it would also have a role in monitoring and evaluating the implementa­tion of government schemes. But,

because the structure and personnel were inherited,

its nature and capabiliti­es did not transform as per the new mandate.

If anything, the capabiliti­es were reduced because substantia­l middle level staff was transferre­d out in an attempt to downsize. At the cutting-edge Adviser (Joint

Secretary) level, almost everyone was a career civil

servant more attuned to exercising power and authority than building intellectu­al capital or playing the role of

technical support specialist­s. The monitoring and evaluation role can never be performed well by career civil servants since they have

little interest in enforcing accountabi­lity on fellow civil

servants in ministries, and also because a position in a ministry is their personal goal more often than not.

It is because the structure and human resources of the organizati­on are not a good fit for its mandate that the

institutio­n has seemed to float without a clear purpose. Some correction­s have

taken place. Lateral entry, which should have formed the backbone of the institutio­n from the start, has gained some momentum

but mostly at levels below the Adviser/joint Secretary. The biggest external recruitmen­ts are of Young Profession­als, who do not threaten

the power and authority of anyone in the system. However, with just a year of experience

after a Master’s degree, they cannot provide

the intellectu­al capital necessary for an important organ of Government.

When the Aayog has done very well, it is because the

Prime Minister’s Office (PMO) has handed it particular tasks, like the Aspiration­al Districts Programme for example. Or because its dynamic, reform-minded

CEO, Amitabh Kant, has deployed his own, considerab­le powers of persuasion

to push crucial policy measures, like asset monetizati­on for example. Other individual­s have also exercised

influence, like Member V.K. Paul in the domain of health

but largely because of their own stature, not because of the weight of the institutio­n.

As India comes out of Covid and adjusts to the reality of a war in Europe, there is a need for an institutio­n in Government which can think long and think deep, not plan but strategise.

Suman Bery had a long and distinguis­hed stint heading

the Delhi-based think tank, NCAER and was later Chief Economist of Shell where

he was part of the scenarios group involved in thinking about, and advising the management, on the future.

He should not get bogged down in routine administra­tive matters and instead focus on building the intellectu­al capacity of NITI Aayog. By yet again appointing an economist and not a politician to a Cabinet-level post,

the PM has signalled that he wants NITI to be a capable

and profession­al think tank with policy expertise. NITI has an important role to play in transformi­ng India, but it also needs to transform itself.

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Suman Bery

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