17. Governance Notes 12

Elaborate Notes

Multi-Actor Paradigm Model in Governance

The concept of governance has evolved significantly, particularly in the post-colonial context of nations like India. The Multi-Actor Paradigm marks a fundamental shift from a state-centric model to a more inclusive, networked approach involving various stakeholders in the process of public policy formulation and implementation.

• The Era of State-Centrism (1950s-1990s):

  • Historical Context: Following independence in 1947, India adopted a model of planned economic development heavily influenced by Nehruvian socialism. The state was envisioned as the primary agent of development and social change. This was formalized through the Industrial Policy Resolutions of 1948 and 1956, which reserved core industries for the public sector.
  • State Monopoly: The state exercised a near-absolute monopoly over the development process. The private sector was stringently controlled through a system often pejoratively termed the “License-Permit-Quota Raj.” This top-down, centralized approach assumed that a benevolent and capable state could best address the challenges of poverty, inequality, and underdevelopment.
  • Limited Role of Other Actors: The “third sector,” comprising Civil Society Organizations (CSOs) and Non-Governmental Organizations (NGOs), had a minimal and often peripheral role during this period. The private sector was seen as a subordinate partner, its activities circumscribed by state directives.

• The Paradigm Shift (Post-1991):

  • LPG Reforms: The balance of payments crisis of 1991 was a watershed moment. It compelled India to adopt the Liberalization, Privatization, and Globalization (LPG) reforms. This dismantled the license-permit raj and opened up the economy, fundamentally altering the role of the state from a primary ‘provider’ and ‘controller’ to a ‘facilitator’ and ‘regulator’.
  • Rise of the Private Sector: Liberalization created space for the private sector to become a major engine of economic growth and a key partner in development, particularly in infrastructure and service delivery.

• Emergence of the Third Sector (Post-2000):

  • The 21st century has witnessed a burgeoning of civil society. The failure of the state to adequately deliver public services and the negative externalities of unchecked market forces created a vacuum that CSOs and NGOs began to fill.
  • Movements like the one led by Mazdoor Kisan Shakti Sangathan (MKSS) in Rajasthan, which culminated in the landmark Right to Information Act (2005), exemplified the power of civil society in demanding accountability and transparency.

• The Contemporary Multi-Actor Landscape: Today, governance is no longer the exclusive domain of the government. It is a complex interplay of multiple actors:

  • State Actors: The Union Government, State Governments, and Local Self-Governments (Panchayati Raj Institutions and Urban Local Bodies), reflecting India’s federal structure.
  • Market/Private Sector: Domestic corporations and, in the age of globalization, powerful Multinational Companies (MNCs).
  • International Actors: Multilateral institutions like the World Bank, International Monetary Fund (IMF), and World Trade Organization (WTO), which influence domestic policies through loans, conditionalities, and global trade regimes.
  • The Bureaucracy: The permanent civil services remain the steel frame of administration, responsible for policy implementation.
  • Civil Society: This includes a diverse range of actors such as NGOs, Self-Help Groups (SHGs), Pressure Groups (e.g., farmer unions, trade unions), and citizen-led movements.
  • Media: Acting as the “fourth estate,” the media plays a crucial role in shaping public opinion and holding other actors accountable.
  • Collaborative Models: Hybrid models like Public-Private Partnerships (PPPs) have become common for large-scale infrastructure projects.

• Challenges and Solutions in the Multi-Actor Paradigm:

  • Complexity and Conflict: The presence of multiple actors with often conflicting vested interests makes governance complicated. As witnessed in the public agitation against the three Farm Bills (2020-2021), unilateral decision-making by the state without stakeholder consultation can lead to widespread resistance and policy failure.
  • The Way Forward - Collaborative Governance:
    1. Network Governance: This concept, popularized by scholars like R.A.W. Rhodes (“The New Governance: Governing without Government,” 1996), suggests that the role of civil servants is not to command, but to steer and facilitate networks of interdependent actors. They must act as brokers and mediators.
    2. Use of Technology: E-governance tools and platforms (e.g., MyGov.in, PRAGATI) can ensure continuous interaction, feedback, and participation among all stakeholders, bridging geographical and informational divides.
    3. Enhanced Skills for Civil Servants: Bureaucrats need to supplement their traditional administrative skills with strong communication skills and emotional intelligence to manage negotiations and build consensus among diverse groups.
    4. Citizen’s Charter: Originating in the UK in 1991 and adopted in India since 1997, a Citizen’s Charter is a public commitment to standards of service delivery. To be effective, as recommended by the 2nd ARC Report (‘Ethics in Governance’), its formulation must involve all stakeholders, clearly defining timelines and responsibilities for both state and private actors.
    5. Social Audit: It is a mechanism for enforcing accountability and transparency, where the community collectively audits government-funded works. Its legal mandate under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005 is a prime example of institutionalizing citizen oversight. A social audit committee can be formed to monitor commitments made in a citizen charter.
    6. Foundational Principles: The decision-making process must be anchored in the core principles of Good Governance: Transparency, Consensus-orientation, Participation, Equity, and Accountability.

Max Weber’s Bureaucratic Theory of Organization

Max Weber (1864-1920), a pioneering German sociologist and political economist, provided one of the most influential analyses of modern state and administration in his magnum opus, Economy and Society (published posthumously, 1922). His theory of bureaucracy is rooted in a broader analysis of social power and authority.

• Three Types of Legitimate Authority: Weber argued that for any rule to be stable, it must be considered legitimate by its subjects. He identified three “pure types” of legitimate authority:

  1. Traditional Authority: Legitimacy is derived from long-established customs, traditions, and beliefs. Rulers inherit their position (e.g., a monarch, a feudal lord). Weber considered this system irrational as authority is vested in a person due to their lineage rather than their capability, and it is resistant to change. Example: The hereditary rule of the Mughal emperors in India.
  2. Charismatic Authority: Legitimacy is based on the followers’ devotion to a leader perceived to have exceptional, heroic, or even supernatural qualities (charisma). This authority is intensely personal and revolutionary but inherently unstable, as it depends on the leader’s continued success and faces a “problem of succession” upon their death. Example: The authority wielded by Mahatma Gandhi during India’s freedom struggle was not based on any formal office but on his perceived charisma and moral stature.
  3. Rational-Legal Authority: Legitimacy rests on a belief in the legality of enacted rules and the right of those elevated to authority under such rules to issue commands. Authority is vested in the office, not the person. This is the basis of modern states and bureaucracy. It is rational because it is based on impersonal rules and procedures designed to achieve specific goals efficiently. It is permanent and stable because it is not dependent on any single individual.

• Bureaucracy: The Instrument of Rational-Legal Authority: According to Weber, bureaucracy is the purest form of organization for exercising rational-legal authority. The term combines ‘bureau’ (French for desk/office) and ‘kratos’ (Greek for rule), literally meaning “rule by officials.” It signifies an administration conducted through trained professionals according to fixed rules. Weber presented it as an “ideal type”—a conceptual benchmark to compare and contrast real-world organizations.

• Features of the Weberian “Ideal Type” Bureaucracy:

  1. Merit-Based Recruitment: Officials are selected through open, competitive examinations based on technical qualifications and expertise, not patronage or birth. This is enshrined in the Indian Constitution through Article 315, which provides for a Public Service Commission for the Union and for each State.
  2. Hierarchy: A clear, hierarchical structure or “chain of command” where each lower office is under the control and supervision of a higher one.
  3. Division of Labor: Work is systematically divided into areas of fixed and official jurisdiction, allowing for specialization.
  4. Formal Rules and Regulations: Administration is governed by a consistent system of abstract rules. Decisions and actions are recorded in writing (“the files”), ensuring uniformity and continuity.
  5. Impersonality: Officials are expected to conduct their duties without personal feelings or favoritism. Rules are applied uniformly to all clients.
  6. Career Orientation: Employment in the bureaucracy constitutes a career. Officials are provided with tenure, a fixed salary, and prospects for promotion based on seniority or merit, insulating them from external pressures.
  7. Separation of Official and Private Assets: There is a strict separation between the official’s private property and the assets of the organization. The office cannot be appropriated by the incumbent.
  8. Political and Value Neutrality: Bureaucrats are expected to serve the elected government of the day faithfully and impartially, regardless of its political ideology. They must base their advice and actions on objective facts and established rules, not their personal values or beliefs. This is a cornerstone of a professional civil service.

Prelims Pointers

• The License-Permit-Quota Raj was the system of elaborate licenses and regulations that hindered private sector growth in India before 1991.
• The LPG (Liberalization, Privatization, Globalization) reforms were initiated in India in 1991.
• Mazdoor Kisan Shakti Sangathan (MKSS) is a CSO known for its pivotal role in the campaign for the Right to Information (RTI) Act.
• The Right to Information Act was enacted in 2005.
• Citizen’s Charter as a concept was first articulated and implemented in the United Kingdom in 1991. India adopted it in 1997.
• Social Audit is a process of community-based monitoring of public schemes. It was first given a legal mandate in India under the MGNREGA, 2005.
• Max Weber was a German sociologist who authored the book Economy and Society.
• Weber identified three types of legitimate authority: Traditional, Charismatic, and Rational-Legal.
• According to Weber, bureaucracy is the organizational form that exercises Rational-Legal authority.
• Key features of Weberian Bureaucracy: Hierarchy, Merit-based selection, Division of Labor, Impersonality, and Political Neutrality.
• PRAGATI (Pro-Active Governance and Timely Implementation) is a multi-modal platform used by the Prime Minister’s Office to monitor and review government projects.

Mains Insights

On the Multi-Actor Paradigm

• GS Paper II (Governance): The shift to a multi-actor paradigm represents an evolution in the role of the state—from being the sole ‘rower’ (provider of services) to being the ‘steerer’ (facilitator, regulator, and enabler). This new role requires building collaborative capacity rather than just administrative capacity.
• Cause and Effect Relationship: The perceived failure of the state-centric ‘command-and-control’ model to deliver efficient and equitable development outcomes (government failure) led to the embrace of the market and civil society. However, the subsequent realization of market failures (e.g., creation of inequalities, neglect of public goods) and the limitations of NGOs has reinforced the idea that no single actor can govern alone. A collaborative synergy is essential.
• Debates and Challenges:
  1. Accountability Deficit: In a multi-actor system, especially in Public-Private Partnerships (PPPs), accountability can become diffused. When a project fails, it is often difficult to pinpoint responsibility between the government agency and the private concessionaire.
  2. Balancing Interests: How can the state balance the profit-maximization motive of the private sector with the welfare objective of the public good? This is a central challenge in regulating private providers in health, education, and utilities.
  3. Legitimacy and Representation of CSOs: While CSOs can enhance participation, questions are often raised about their own internal democracy, funding sources, and whether they genuinely represent the communities they claim to speak for. This leads to the “NGO-ization” debate.
  4. Co-optation vs. Confrontation: The relationship between the state and civil society is complex. The state may try to co-opt CSOs by channeling funds, thus blunting their critical edge. Conversely, an overly confrontational stance can lead to policy paralysis.

On Max Weber’s Bureaucratic Theory

• GS Paper II (Governance) & GS Paper IV (Ethics): The Weberian model provides the foundational principles for the Indian civil services, emphasizing impartiality, integrity, and rule of law, which are crucial for good governance and ethical conduct.
• Relevance in Contemporary India:
  • The principles of meritocracy, hierarchy, and rule-based functioning are essential safeguards against nepotism, corruption, and arbitrary exercise of power in a diverse and complex country like India.
  • Political neutrality remains a vital ideal to ensure that the administrative machinery serves the constitution and the rule of law, rather than the transient interests of the ruling political party.
• Criticisms and Limitations:
  1. Rigidity and Red-Tapism: Critics like Robert K. Merton (“Bureaucratic Structure and Personality,” 1940) argued that the rigid adherence to rules can become an end in itself (goal displacement), leading to the infamous “red tape” that stifles innovation and efficiency. This makes the Weberian model ill-suited for the flexible and adaptive requirements of development administration.
  2. The Neutrality Paradox (GS-IV Perspective): Is absolute value neutrality possible or even desirable for a civil servant in a developing country with vast socio-economic disparities? There is a strong ethical argument that civil servants should possess foundational values like compassion, empathy, and a commitment to social justice, implying a pro-poor and pro-vulnerable bias rather than sterile neutrality.
  3. Weber vs. New Public Management (NPM): The Weberian model is often contrasted with the NPM paradigm, which emerged in the 1980s. NPM advocates for introducing market principles into public administration—focusing on ‘3 Es’ (Efficiency, Economy, Effectiveness), treating citizens as ‘customers’, and emphasizing performance outcomes over procedural compliance.
  4. Impersonality vs. Participation: The strict impersonality of the Weberian model can create a disconnect between the administration and the citizens, making it seem aloof and unresponsive. This is contrary to the contemporary emphasis on participatory governance and citizen-centricity.

Previous Year Questions

Prelims

1. With reference to the funds under Members of Parliament Local Area Development Scheme (MPLADS), which of the following statements are correct? (UPSC CSE 2020)

   1. MPLADS funds must be used to create durable assets like physical infrastructure for health, education, etc.
   2. A specified portion of each MP’s fund must benefit SC/ST populations.
   3. MPLADS funds are sanctioned on a yearly basis and the unused funds cannot be carried forward to the next year.
   4. The District Authority must inspect at least 10% of all works under implementation every year.

   Select the correct answer using the code given below: (a) 1 and 2 only (b) 3 and 4 only (c) 1, 2 and 3 only (d) 1, 2 and 4 only

   Answer: (d) 1, 2 and 4 only. (Statement 3 is incorrect as the funds are non-lapsable).

2. In India, which of the following reviews the independent regulators in sectors like telecommunications, insurance, electricity, etc.? (UPSC CSE 2019)

   1. Ad Hoc Committees set up by the Parliament
   2. Parliamentary Department Related Standing Committees
   3. Finance Commission
   4. Financial Sector Legislative Reforms Commission
   5. NITI Aayog

   Select the correct answer using the code given below: (a) 1 and 2 (b) 1, 3 and 4 (c) 3, 4 and 5 (d) 2 and 5

   Answer: (a) 1 and 2. (Parliamentary committees have oversight jurisdiction).

3. The term ‘Social Capital’ is often heard in the context of governance. It refers to: (UPSC CSE 2019) (a) The size of the population in a country. (b) The amount of capital invested in social infrastructure. (c) The level of mutual trust and harmony in a society. (d) The stock of knowledge and skills in a society.

   Answer: (c) The level of mutual trust and harmony in a society. (Social capital refers to the networks, norms, and trust that facilitate coordination and cooperation for mutual benefit).

4. Consider the following statements: (UPSC CSE 2021)

   1. The United Nations Capital Development Fund (UNCDF) and the Arbor Day Foundation have recently recognized Hyderabad as 2020 Tree City of the World.
   2. Hyderabad was selected for the recognition for a year following its commitment to grow and maintain the urban forest.

   Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2

   Answer: (b) 2 only. (Statement 1 is incorrect because it was the Arbor Day Foundation and the FAO, not UNCDF). This question reflects the role of global actors and local governance.

5. Which of the following is/are the exclusive power(s) of Lok Sabha? (UPSC CSE 2022)

   1. To ratify the declaration of Emergency
   2. To pass a motion of no-confidence against the Council of Ministers
   3. To impeach the President of India

   Select the correct answer using the code given below: (a) 1 and 2 (b) 2 only (c) 1 and 3 (d) 3 only

   Answer: (b) 2 only. (The Council of Ministers is collectively responsible only to the Lok Sabha, making the no-confidence motion an exclusive power). This relates to the core state actors in governance.

Mains

1. “The emergence of Self-Help Groups (SHGs) in contemporary times points to the slow but steady withdrawal of the state from developmental activities”. Examine the role of the SHGs in achieving the developmental objectives and the role of the Government in promoting the SHGs. (UPSC CSE 2017, but relevant to last 5 years theme) Answer Approach:

   • Introduction: Define SHGs and briefly introduce the debate in the question.
   • Part 1 (Withdrawal of State?): Argue against the statement. Explain that the rise of SHGs is not a sign of state withdrawal, but a shift in the state’s role from a ‘provider’ to a ‘facilitator’. The state actively promotes SHGs through schemes like NRLM/DAY-NULM. It’s a move towards a multi-actor, participatory governance model.
   • Part 2 (Role of SHGs): Discuss the multi-faceted role of SHGs: financial inclusion, women empowerment, social change (tackling issues like dowry, alcoholism), skill development, and enhancing bargaining power. Provide examples.
   • Part 3 (Role of Government): Detail government initiatives: providing seed capital, capacity building, linking SHGs with banks (SHG-Bank Linkage Programme), and providing market access for their products.
   • Conclusion: Conclude that SHGs and the state are not substitutes but complements. The model represents a synergy within the multi-actor paradigm for inclusive development.

2. ‘The ideal solution of depleting ground water resources in India is water harvesting system’. How can it be made effective in urban areas? (UPSC CSE 2018, relevant theme) Answer Approach:

   • Introduction: Start by highlighting the severity of the groundwater crisis in India, citing data (e.g., from NITI Aayog’s Composite Water Management Index).
   • Part 1 (Water Harvesting as a Solution): Explain why water harvesting is an ideal solution—it is decentralized, cost-effective, eco-friendly, and helps recharge aquifers directly.
   • Part 2 (Making it effective in Urban Areas): Provide specific, actionable measures.
     • Policy & Legal: Mandatory rooftop rainwater harvesting provisions in municipal by-laws for new buildings.
     • Economic: Tax incentives for retrofitting old buildings, subsidies for equipment.
     • Infrastructural: Creating storm-water drains that lead to percolation pits, rejuvenation of urban water bodies (lakes, ponds), and creating ‘sponge cities’ with permeable pavements.
     • Community Participation: Public awareness campaigns (role of media, CSOs), involving RWAs, and demonstrating successful models.
     • Technology: Use of GIS mapping to identify recharge zones.
   • Conclusion: Summarize by stating that a multi-pronged approach involving policy, technology, and community participation (a multi-actor approach) is key to making urban water harvesting a success.

3. The role of Non-Governmental Organizations (NGOs) in the functioning of a democracy is to mobilize public opinion and strengthen participatory democracy. However, of late, their functioning is mired in controversies. Identify the major areas of controversy with respect to the functioning of NGOs. (UPSC CSE 2023) Answer Approach:

   • Introduction: Acknowledge the positive role of NGOs in a democracy as outlined in the question (mobilizing opinion, advocacy, service delivery).
   • Body (Areas of Controversy):
     • Funding and Foreign Influence: Issues related to the Foreign Contribution (Regulation) Act (FCRA). Accusations that foreign-funded NGOs work against national interests or to stall development projects.
     • Lack of Transparency and Accountability: Opaque financial records, lack of accountability to the communities they serve, and absence of internal democratic processes.
     • Misappropriation of Funds: Allegations of corruption and funds being used for personal gain by the founders.
     • Representativeness: Questions about whether a few urban-based NGOs truly represent the voice of the grassroots.
     • Advocacy vs. Partisan Politics: The blurring of lines between legitimate advocacy and engaging in partisan political activities to destabilize elected governments.
     • Self-perpetuation: Some NGOs are accused of becoming self-serving entities rather than focusing on their mission.
   • Way Forward: Suggest measures like promoting self-regulation, enhancing government oversight mechanisms without stifling genuine work, promoting domestic philanthropy, and using digital platforms for greater transparency.
   • Conclusion: Conclude by reiterating the importance of a vibrant and accountable NGO sector for a healthy democracy and the need to address the controversies to restore public trust.

4. “Institutional quality is a crucial driver of economic performance”. In this context, suggest reforms in Civil Service for strengthening democracy. (UPSC CSE 2022) Answer Approach:

   • Introduction: Explain the statement by linking institutional quality (rule of law, bureaucratic efficiency, low corruption) with economic growth and investment climate.
   • Body (Reforms in Civil Service): Structure the reforms around key areas:
     • Recruitment & Training: Moving beyond a generalist approach to encourage specialization (domain expertise). Mid-career training modules focusing on new governance paradigms (NPM, network governance).
     • Performance Appraisal: Shifting from seniority-based promotions to a merit-based system. Implementing a robust 360-degree performance appraisal system.
     • Accountability & Transparency: Strengthening accountability mechanisms like the RTI, social audits, and citizen charters. Ensuring robust whistleblower protection.
     • Neutrality and Integrity: Measures to insulate civil servants from arbitrary political interference (e.g., fixed tenure for key posts as suggested by the Supreme Court in T.S.R. Subramanian vs. Union of India, 2013).
     • Citizen-Centricity: Training in soft skills, emotional intelligence, and inculcating a service orientation.
     • Mission Karmayogi: Briefly mention this initiative as a step in the right direction towards creating a more competent and future-ready civil service.
   • Conclusion: Conclude that these reforms are essential to transform the bureaucracy from a rigid, rule-bound institution into a dynamic, citizen-centric, and efficient arm of the state, thereby strengthening both economic performance and democracy.

5. The jurisdiction of the Central Bureau of Investigation (CBI) regarding lodging an FIR and conducting a probe within a particular State is being questioned by various States. However, the power of the States to withhold consent to the CBI is not absolute. Explain with special reference to the federal character of India. (UPSC CSE 2021) Answer Approach:

   • Introduction: Briefly introduce the CBI as a premier investigative agency established under the Delhi Special Police Establishment (DSPE) Act, 1946. State the central issue: the tension between the Union’s need for investigation and the States’ constitutional powers over ‘police’.
   • Part 1 (States’ Power to Withhold Consent): Explain that under Section 6 of the DSPE Act, the CBI needs the ‘general consent’ of the state government to investigate cases within its territory. Mention that several states have recently withdrawn this general consent, requiring the CBI to seek case-specific consent.
   • Part 2 (Power is Not Absolute): Explain the exceptions where state consent is not required:
     • Supreme Court/High Court Orders: The constitutional courts can direct the CBI to investigate a case anywhere in the country without state consent, as their jurisdiction overrides the DSPE Act. Cite relevant cases like State of West Bengal & Ors. vs. Committee for Protection of Democratic Rights, West Bengal & Ors. (2010).
     • Investigation of central government employees or cases related to central government affairs.
   • Part 3 (Federal Character): Analyze the issue from a federal perspective. The states’ power to withhold consent stems from ‘Police’ being a State List subject (Entry 2, List II), upholding federalism. However, the Union’s need to investigate inter-state crimes, corruption involving central officials, and matters of national importance requires a central agency. The Supreme Court’s power acts as a balancing mechanism.
   • Conclusion: Conclude that the issue reflects the classic federal tension in India. While states’ rights must be respected, they cannot be used to shield corruption or obstruct justice in matters of national importance. A cooperative federalism-based mechanism is needed to resolve such standoffs.