Breaking Free of the SILOcked Bureaucracy

“More than availability of money, it is the presence of siloes and lack of convergence that is the problem”, Said PM Modi while addressing the webinar on positive impact of Union Budget on rural development.

The term silo is derived from the Greek σιρός (siros), “pit for holding grain. Silos are tall vertical storage towers/containers which are used for bulk storage of grain, coal, carbon black, sawdust, wood chips etc. When the world is now shifting to new technologies and products, being specially designed to unite employees and merge workplaces in more ways than ever before, the Indian bureaucracy is still struggling with the threat of organizational/departmental silos. The reason behind the administrative and work inadequacy of government departments is ‘governance among departments’.

Traditionally the kind of policies and working framework most of the Indian bureaucratic setups generally have are so complex and full of layers that it becomes a cumbersome task to work a way out. Those working in such a setup, have always had their hands full with files (digital and otherwise) to move, reports to send and repetitive bulky processes to follow. Such a routine, when followed for a long time, starts to shatter creativity and block ideas, reducing productive participation. Over time, such an atmosphere turns into an abstract behavioral environment, wherein people begin to show a reluctance towards any kind of ‘Change’, towards ‘New opportunities’, and towards working with a different team, different media, different mindset. The Indian government setup has been experiencing this very syndrome ever since its democratic inception.

SILOcratic nature develops over time, but the fact that the current government has already recognised this as a ‘problem’ and is well-aware of it, brings both relief and ray of hope. The removal of unnecessary laws and regulations and efforts towards ease of doing business and ease of living are some of the much needed reforms which have taken center stage. PM Modi said, “The Budget has made essential allocations for every scheme like PM Awas Yojana, Gramin Sadak Yojana, Jal Jeevan Mission, connectivity of North-East, broadband in villages”.

Banking on the power of modern technology, many other efficacious initiatives are worth paying attention to, these include Broadband facilities in villages, ‘Vibrant Village programme, that was announced in the budget and is important for the border villages, ‘Financial inclusion’, that has ensured better participation of women in the financial decisions of the families, and the ‘Svamitva Scheme’, which is helping in properly demarcating residences and land in villages (with 40 lakh property cards already been issued). With measures like Unique land identification PIN, dependence of rural people on the revenue officials will decrease. A heartfelt dream of achieving the target of 4 crore water connections under the Jal Jeevan Mission with state governments to stay vigilant about the quality of the pipelines and water that is proposed to be provided under the mission.

With great awareness, comes great resolution, which then paves way for betterment and development. This is well reflected in the new measures and initiatives which are seeds of New India, where even rural areas stand strong and empowered.

Data-Driven Rural Development

“You see,” Gandhi began, “the centre of power now is in New Delhi, or in Calcutta and Bombay, in the big cities. I would have it distributed among the seven hundred thousand villages of India. That will mean that there is no power… nobody could deprive them of their assets. There will then be voluntary cooperation between these seven hundred thousand…,” These words of Mahatma Gandhi were noted by American journalist Louis Fischer in his book “A week with Gandhi” (4 to 10 June 1942).

We are told to be living in a global village and this terminology has come into existence because of the exponential rise in connectivity across the globe but how connected are villages of India? Not only this question is being answered but available modern technology is being utilized to connect and compound the growth of the Indian villages through a multi prong approach.

The Rural Connectivity GIS Data that has been made public by the Ministry for Rural Development today, is a classic example of this. Data for over 8 lakh rural facilities, 1 million+ habitations & 25 lakh kilometers of rural roads was collected & digitized using the GIS platform developed for the ambitious Pradhan Mantri Gram Sadak Yojana (PMGSY). This information will now act as building blocks to further the planning and implementation of developmental projects in India’s rural areas. The initiative is being governed by PMGSY’s nodal agency NRIDA, which, apart from signing MoUs with three GIS firms, has collaborated with Gati Shakti with an objective to exchange the data for the better planning and implementation of both the schemes.

As all this government exclusive data so far gets released in public domain, it not only sets a momentum to take connectivity to an all new high but also presents scores of drive thru opportunities for startups, academia, governments, and civil societies to have a share and build on the data access. The data as big and nuanced as this is bound to bring a multi-sectoral spin in India’s technological rise, by acting as a catalyst for facilitating quick convergence of rural and urban Indian systems in terms of opening markets, augmenting startup ecosystem, pave way for more infrastructural projects, digital buying and delivery, e-commerce, targeted pickups, transportation, strengthening supply chains etc. The Rural Connectivity GIS data access will widen the spectrum of growth and expansion for seekers, entrepreneurs, administrative and governing bodies, at the same time contributing to the Self-reliant India campaign. Access to correct and comprehensive DATA is going to play a pivotal role in building systems, of the people, for the people, by the people of India.

Vigyan Sarvatra Pujyate

For popular science in India, it has been a roller coaster ride from ‘Vigyan Mandir’ experiment of 1953 to upcoming ‘ Vigyan Sarvatra Pujyate’ week-long celebration being held from February 22 to 28 simultaneously in 75 locations across the country. India is perhaps the only country in the world to adopt ‘scientific temper’ in its constitution. Article 51A(h), under Fundamental Duties, states, “[It shall be the duty of every citizen of India] to develop scientific temper, humanism and the spirit of inquiry and reform.” The Science, Technology and Innovation Policy of 2020 states that in order for India to “march ahead on a sustainable development pathway …towards achieving an ‘Atmanirbhar Bharat’, a greater emphasis may be needed on developing traditional knowledge systems, developing indigenous technologies and encouraging grassroots innovations”.

Perhaps the implementation methodology of ‘Jai Jawan, Jai Kisan, Jai Vigyan’ is by celebrating various achievements in the field of science and technology over the 75 years, as being done over next week. It is refreshing to see popular science discussions are going to be held in various Indian languages, including Kashmiri, Dogri, Punjabi, Gujarati, Marathi, Kannada, Malayalam, Tamil, Telegu, Odiya, Bengali, Assamese, Nepali, Maithili, and Manipur. The event would display the country’s scientific legacy and technology prowess that has helped find solutions to defence, space, health, agriculture, astronomy, and other sectors. The event is jointly being organized by the Department of Science and Technology, Department of Biotechnology, Council of Scientific and Industrial Research, Ministry of Earth Sciences, Department of Atomic Energy, Department of Space, Indian Council of Medical Research, All India Council for Technical Education, and Defence Research Development Organisation.

Vigyan Sarvatra Pujyate also aims to inspire India’s youth and help them navigate into building a progressive nation; bring to the fore stories of people in science and their achievements; reinforce the commitment of the scientific community towards the economic and social development of the country. It also highlights the work being done by the R&D organizations from across the country. In this post-COVID-19 world, it is absolutely certain that popularity of science has to reach grassroots in regional languages for any society to thrive.

Soak, Scrub, Rinse – Fresh FTAs are Back!

Layering is a term used in Money Laundering to define the process of hiding the source of illegal money by progressively adding legitimacy to it. Trade is the modern method of war and peace, where it is very likely that a hostile country may use seemingly fair deals to route otherwise not-allowed business and pursue hidden agenda.

In 2016, India served notices to 57 countries seeking termination of bilateral investment treaties (BITs). Further, in 2019, India pulled out of the Regional Comprehensive Economic Partnership (RCEP). The bold move was essential given China’s obvious dominance in the trade agreement and India’s unwillingness to open the gates of its market to Chinese producers who are known for subsidisation issues and dumping practices. Such advances become even more relevant today, as many states across the globe after having hit by the COVID pandemic and having experienced the US-China trade war ripples, are looking for alternatives and new deals and destinations.

Right after Prime Minister Narendra assumed the office in 2014, India began putting efforts to streamline trade relations with the rest of the world by overhauling its FTA strategy. It began with reviewing the existing FTAs with ASEAN (FTA for goods, 2010), Japan (2011), South Korea (2010), Malaysia (2011), Singapore (signed in 2005), Sri Lanka, and others. In 2015, as GoI signed pending agreements with ASEAN, it parallelly set up another committee, headed by the then-chief economic adviser Arvind Subramanian, to review the other existing FTAs, amid fears that unchecked pacts may be resulting in widening trade imbalances.

Reversing a seven-year freeze, Government of India spent the year 2021 in studying & fixing the flaws and flows in its international trade strategies and was able to align India’s trade trajectory by decluttering the issue of free trade agreements (FTAs). Though India had signed an FTA (CECPA) with Mauritius last year but the major move has just begun.

Building on the three pillars of trust, transparency and talent, India has signed ‘India-UAE Comprehensive Economic Partnership Agreement’- the first-ever trade pact with the Gulf Nation, which promises accelerated growth in both nations with goods trade projected to reach $100 billion in 5 years. The comprehensive trade agreement was signed during India-UAE virtual summit on Friday, February 18, 2022, in presence of Prime Minister Narendra Modi and Crown Prince of Abu Dhabi, Sheikh Mohamed bin Zayed Al Nahyan along with Deputy Supreme Commander of the UAE Armed Forces. The Indian side led by Minister for Commerce and Industry Piyush Goyal signed the path-breaking agreement with the UAE side led by Abdulla bin Touq Al Marri, UAE Minister of Economy. The agreement is being hailed for possibilities towards large scale employment generation in both countries.

Signing trade pacts alone cannot augment economic exchanges. Harnessing of true trade benefits has been backed with a chain of measures taken over the last couple of years such as introducing various ease of doing business reforms, incentivisation schemes like PLIs, rationalisation of duties, tightening the Rules of Origin (RoO) norms under FTAs (to keep in check the dumping of imports and re-routing of goods), promoting GI tagged products etc. Enormous efforts have also gone into promoting districts as export hubs by identifying products with export potential in each district. Major steps taken by the government to further boost imports include releasing of more than Rs. 56 crores against pending tax refunds of exporters, notifying Remissions of Duties and Taxes on Exported Products (RoDTEP) rates, Rebate of State and Central Levies and Taxes (RoSCTL) Schemes, and launch of Common Platform for Issuance of Certificates of Origin to facilitate trade and to increase FTA utilization by exporters.

Indeed, India seems to be ready now and is looking at FTAs with nations that have values of democracy, transparency and mutual growth. FTAs that are currently under negotiations are – with UK, Australia, EU, other Gulf Countries, Canada and Israel.

Digital Rupee vs RBI’s CBDC

Digital transactions in India are seeing unprecedented growth and indeed for a large chunk of the population, rupee has become digitised. In this context, RBI’s Central Bank Digital Currency (CBDC) becomes nuanced for really appreciating its usefulness. One advantage of digital currency could be segregation of spending from savings. CBDC is likely to act as only a spending instrument, and become the catalyst for efficiency enhancement of the informal sector.

Presently, ₹ is both an instrument of savings as well as for spending, and the dual role makes the availability of banking services vital for efficient business operations. Present digital transactions are facilitated by commercial and other banking service providers. This leaves unbanked or difficult banking experiencers like those dwelling in slums and remote villages vulnerable to the VUCA world.

One of the unfortunate realities of rapid pace of urbanisation is slum dwelling in Cities. People migrating from rural settlements to more informal settlements in and around the city in bids to find work are subjected to a highly volatile business environment. Even if there is no wage or price earning opportunity, informal sector workers still have the goods and services to offer to each other, but nobody has money to pay for them. With no buffer and no surplus money to inject into the informal sector, availability of wage earning tasks in season and thereafter no source of income creates huge uncertainty. This is where a coupon-like setup provided by CBDC can save the day. One underlying case study can be the use of Bangla Pesa in Kenyan slums.

As Bangla Pesa is entering the 10th year of its existence, it has become a role model for poverty alleviation. Mombasa has more than 60k Bangladeshi slum dwellers who have used a complimentary voucher system by the name of Bangla Pesa which uses M-Pesa APP to transact in this alternative currency. Slum dwellers had goods and services but no money at all, thereby wasting time and rotting goods. Bangla Pesa came into being as a real measure of value of goods and services allowing a barter system to evolve instead of wasted opportunities. Users say that, “You can’t steal Bangla Pesa and it has no corruption. You take money to get rich but not to eradicate poverty. Use of Bangla Pesa indicates somebody who doesn’t have money is going to get help.”

Use cases of CBDC can be built around the experiences of Bangla Pesa. Not to mention that RBI taking direct liability and making this token based, solves a major issue of cryptocurrencies i.e. Transactional Privacy. DBT transactions can become more efficient and effective using such CBDC and not to forget the benefits manifesting to a local villager who will no longer need to travel distances to receive cash from the bank and also pay high percentages as remittances charges.