21. Public Administration and Corporate Governance
- Author:
- C. P. Chandrasekhar
- Publication Date:
- 05-2025
- Content Type:
- Special Report
- Institution:
- India International Centre (IIC)
- Abstract:
- I met Shri B. G. Deshmukh twice, once when he was Cabinet Secretary and the second time when he kindly called on me when I was the Cabinet Secretary. On the first occasion, I was the Chairman of the Spices Board in Ernakulam. A Mumbai-based exporter had complained to him that my policies were keeping the cardamom market very high, thus preventing exports. I met the Cabinet Secretary and explained to him that the exporter was a ‘bear’ in his operations and wanted to use government machinery to bring prices down after he had underquoted to importers abroad. He understood immediately. Meanwhile, the Commerce Ministry was upset that the Cabinet Secretary had gone directly to a field officer instead of to the Ministry. However, I came to understand later that this was Shri Deshmukh's style of work. He felt that it would save time and effort to hear directly from the field. This view was reinforced when Shri Deshmukh called on me after I had taken charge as Cabinet Secretary. This visit was important for me as it gave me a few pointers on how I should conduct my work. Shri Deshmukh told me that it was his practice to visit different state headquarters and meet young officers and hear from them. I followed his lead a little differently. I wrote to all Chief Secretaries, asking them to send a list of important issues pending in each state for want of approval from the Government of India. After I received the lists, I held meetings at which the Secretaries and state representatives were present. In this process, many issues were resolved. Another method I followed was to take plane loads of Secretaries to the weaker states to resolve their problems as fast as possible. The Secretaries would sit with their counterparts and try to solve as many problems as feasible at their level. The residual issues were then discussed at a meeting held by me and we would try to settle them or indicate definite time limits by which they would be resolved. We visited Assam, the northeast, Jammu and Kashmir, Chhattisgarh and Jharkhand for such meetings. A third method which I initiated—and which continues—was to hold annual meetings of Chief Secretaries. All these ideas came to me after my discussion with Shri Deshmukh and his suggestion that work will proceed apace only if there is close coordination between the Centre and the States—cooperative federalism at the administrative level, in short. I will now deal with the dissimilarities between corporate governance and public administration, and how it would be incorrect to think that wholesale application of corporate governance principles, or lateral entry of corporate employees into government, is the solution to transformation of administration. To some extent, my logic has been explained in a chapter in my book (2022: 204–17).
- Topic:
- Governance, Domestic Politics, and Public Administration
- Political Geography:
- South Asia and India