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Monday, June 7, 2010

Bureaucratic Subversion

The Bane of New India


When the government steered the Right to Education bill through Parliament, those of us who had fought for it through two decades were pleased. The important thing, however, is how the act would be notified. The language of the bill leaves a lot of gray areas. And well it might because bureaucrats wrote it and they will fully exploit the obfuscation. For example, they will come down heavily on private schools that cater to the poor in urban slums and rural areas and impose impossible conditions that such enterprises simply cannot fulfill.

There are too many vested interests: the government school system; the high-end private schools that have bribed their way into existence and above all, the alternative NGO schools that survive on government subsidies. With such firepower arraigned against it, the RTE bill will go the way of every well-meaning initiative of the government such the NREGA or the Sarva Shiksha Abhiyaan. The net outcome will be zero. And so everything will come to naught.

If this sounds cynical, then you should listen to my story about a small community on the outskirts of Delhi. This is an upscale community of successful professionals that includes about 30 houses. It is an oasis in the chaos of Delhi, with trees and birdsong. It’s a wonderful community where neighbors meet frequently to have a drink or dinner and to discuss issues of India’s development. The people who live there are respected professionals whose interests span public health, wildlife conservation, media, law and what have you.

The community came into being in the early 1990s. Because it was part of rural Delhi, it was offered no municipal services like water, sanitation or roads, never mind street lighting. Like pioneers, residents made their own arrangements: people built septic tanks, drilled bore wells and got their own garbage collection. Power was an issue until distribution was privatized, when the resident association petitioned the distribution company. Realizing these were high-end customers, the company quickly ensured that power cuts and fluctuations were minimized.

On the roads issue, the resident association petitioned the Delhi government arguing from a taxpayer viewpoint; so the road was built: badly but still motorable. It took several years including the fact that the first allotment of several crores was swallowed by the pirates of the Municipal Corporation of Delhi. Now this community faces water a problem because the bore wells have dried up. This is precious real estate but more important it represents the single major investment for most of the residents. Without water, their homes are worth nothing.

The association applied to the Delhi government for permission to drill a community bore well. It seemed a logical and eco-friendly thing to do. But between the local water authority, the local police and several residents who had bribed their way into deepening their bore wells, the application has been kicked around from pillar to post.

So here you have this huge Indian-style standoff: members of the community paid bribes to the water authority and the police to deepen their wells. As a result, other residents found their bore wells running dry. When the association sought to build a community well, some residents and recipients of their bribes in the water authority and the local police struck a dissonant note.

Between corrupt citizens, bureaucrats, police officials and local politicians, this pleasant community is caught in a cleft. It needs the rule of law to be enforced but the local government: the municipality and the police, are locked in various corrupt projects. Residents of the community are not without influence but stand divided because several members, who own houses there, are compromised because the deals they did to buy their houses don’t stand up to scrutiny.

This is a small localized community problem, to be sure. But its implications have a larger footprint. Even though the union government has introduced various enlightened policies, local governance is caught in a medieval time warp. In the matter of schools as well: a sweeping and enlightened law stands to be subverted on the rocks of bad governance. In notifying the RTE act, many activists fear the education bureaucracy will not let private schools for the poor flourish.

Then there is the issue of the RTE-mandated 25 percent quota for poor children in private schools. The vast majority of private schools, however, cater to the poor. So how will the quota be enforced? Clearly, framers of the bill were thinking of the elite private schools with no acknowledgment of the private schools for the poor.

Whether it is the private schools for the poor or the community bore well for the upscale Delhi community, governance is still held hostage to the ideology of the bureaucracy. The bureaucracy lords it over the poor and is prejudiced against the affluent (not rich). In the event, private schools for the poor will be held hostage to the bureaucracy’s prejudice against education as commerce; likewise the South Delhi community must suffer because the bureaucrats of the water authority dismiss it as an “affluent colony” that deserves nothing from the government.

In the end, the admirable RTE bill stands to be subverted by bureaucrats, who oppose all change. Residents of the affluent community will have to fight for their water against the very forces in charge of governance.

An edited version of this article appeared in Education World, June 2010.



Copyright Rajiv Desai 2010

Friday, June 4, 2010

Last mile governance incubus

When the government steered the Right to Free and Compulsory Education Bill 2009 through Parliament, those of us who had fought for it for two decades were pleased. The important thing, however, is how the Act has been notified. The language of the newly enacted RTE Act leaves a lot of grey areas. And well it might because bureaucrats wrote it and they will fully exploit the obfuscation. For example, they will come down heavily on private schools that cater to the poor in urban slums and rural areas and impose impossible conditions that such enterprises simply cannot fulfill.
Having delayed the universalisation of primary and upper primary education for six decades, now there are too many vested interests. The government school system; high-end private schools that have bribed their way into existence and above all, the alternative NGO schools that survive on government subsidies. With such firepower arraigned against it, the RTE Act will go the way of every well-meaning initiative of the government such as the National Rural Employment Guarantee Act (NREGA) or Sarva Shiksha Abhiyaan. The net outcome will be zero or near zero.
If this sounds cynical, then you should pay heed to my story about a small comm-unity on the outskirts of Delhi. It’s an upscale community of successful professionals which includes about 30 households. The community came into being in the early 1990s. But because it was part of rural Delhi, it was deprived of municipal services such as water, sanitation and roads, never mind street lighting. Like pioneers, residents made their own arrangements: they built septic tanks, drilled borewells and arranged for the collection of garbage. Power was an issue until distribution was privatised, when the resident association petitioned the distribution company. Realising these were high-end customers, the company quickly ensured that power cuts and fluctuations were minimised.
These endeavours took several years and unearthed the fact that their first allotment of several crores was swallowed by the pirates of the Municipal Corporation of Delhi. Now this community faces a water problem because its borewells have dried up. This is precious real estate which represents a lifetime investment for most residents. Without water, their charming homes are worth nothing.
The residents’ association applied to the state govern-ment for permission to drill a community borewell. It seemed a logical and eco-friendly thing to do. But between the local water authority, the local police and several residents who had bribed their way into deepening their private borewells, the application was kicked around from pillar to post.
Consequently there’s a huge Indian-style standoff. As some members of the community paid bribes to the water authority and the police to deepen their wells, as a result other residents found their borewells running dry. When the associa-tion sought to build a community well, some residents and recipients of bribes in the water authority and the local police refused permission.
Between corrupt citizens, bureaucrats, police officials and local politicians, this pleasant community is caught in a bind. It needs the rule of law to be enforced but the local government, municipality and the police are locked in a conspiracy of corruption. Residents of the community are not without political influence but stand divided because several members who own houses there, are compromised because the deals they did to buy their houses don’t stand up to scrutiny.
Admittedly, this is a small localised community problem. But its implications have a larger footprint. Even though the Union government has introduced various enlightened policies, local governance is caught in a medieval time warp. In the matter of schools as well, a sweeping and enlightened law seems likely to be wrecked on the rocks of bad last mile governance. In notifying the RTE Act, many activists fear the education bureaucracy will invoke the provisions of the Act to eliminate the option that the poor fleeing indifferent government school education have to attend low cost private schools.
Then there is the issue of the RTE-mandated 25 percent quota for poor children in private schools. The vast majority of private schools, however, already cater to the poor. So how will the quota be enforced? Clearly, framers of the Act were thinking of the elite private schools with no acknowledgment of the private schools for the poor.
Whether it is private schools for the poor or the community borewell for upscale citizens, governance is still hostage to the ideology of the bureaucracy. The bureaucracy lords it over the poor and is prejudiced against the affluent (though not the super-rich). In the event, private schools for the poor will be trampled under the bureaucracy’s prejudice against education as commerce. Likewise the South Delhi community must suffer because bureaucrats of the water authority dismiss it as an “affluent colony” that deserves nothing from government.
In the end, the admirable RTE Act will be subverted by bureaucrats, who oppose all change. Similarly residents of the affluent South Delhi community will have to fight for their water against the forces in charge of local last mile governance.

(An edited version of this post will appear in http://www.educationworld.in, June 4, 2010.)

Thursday, June 3, 2010

American Life 3

New York City: My Daughter’s Hometown


So here I am back again in the city that never sleeps. The airline has a limo waiting to take me to Gramercy, where my gorgeous daughter has an apartment. Her timing was perfect. By 6 pm, when I got to her place, she pulled up in a cab right behind me and helped me lug my bag upstairs to her apartment. What happened in between was a huge hug and kisses and the limo guy looked on indulgently

I’m back in Manhattan to spend the weekend with my very clued-in daughter. The weekend was a rediscovery of the Lower East Side with its great bars and amazing restaurants. She spent the time showing me her life in this wannabe piece of real estate in Lower Manhattan, where most people, especially twenty-somethings like her, would give their right arm to live. She lives there and knows it in a way that appeals to my sense of hedonism and aesthetics.

Can you be jealous of your own daughter? Difficult question: but I have no hesitation in saying I am envious of her lifestyle. Plus she is so Manhattan; she buys milk with no hormones, grass-fed meat, nuts, berries, dates and also cheese, wine, figs, dates, strawberries and the occasional champagne.

I’ve been visiting Manhattan since the early 1970s. I had a friend who introduced me to the genteel pleasures of the Upper East Side. I also came into the city for work and lived in fabulous hotels like The Plaza. But knowing the city through my daughter’s eyes is completely different. Clearly, she belongs there and makes me feel I too belong. And I can’t even begin to say how good it feels to have New York City as a second home.

So what is it about New York City, especially the Lower East Side that attracts bright young kids from all over the world to stay there? Chicago, where I virtually grew up, is a superb city. Its downtown Lakefront is seminally brilliant. Yet my daughter’s Lower East Side has character that is part gentrified but nevertheless is a neighborhood with ethnic diversity and post-modern slick.

I spent several weekends with her in the very recent past and she always managed to amaze me. We walked all over the place, went to great bars and ate in superb restaurants. When I was with her and drinking all these great cocktails and eating all this fabulous food, I thought to myself: my baby daughter is a New York girl: king of the hill; top of the pops.

Can a father be jealous of his daughter? No. I wish her well as one of the most fortunate members of the human race: not just to live in Manhattan but in the happening Lower East Side. I always tell my wife: if I ever had the chance to live and work there, I may have never relocated to India. In the event, nearly two decades since I moved to Delhi from the US, I have never regretted the relocation. But if I had been the suave sophisticate that my daughter is, India would never have featured in my life.

So I spent time with her in the city, walking the streets and in small parks that are things of beauty with gorgeous spring flowers; eating in wonderful restaurants and generally luxuriating in the ultimate urban experience. Between my warm and lovable daughter and the adventurous pleasure of Lower Manhattan, I was in heaven.

On the Monday, I took the flight to Chicago, comforted in the knowledge that I would be back within the week. I used always to spend more time in my hometown Chicago, than anywhere else in the US. For the past seven years, I seem to be spending more time in New York City, thanks to my daughter.

Manhattan may not be about blue skies and trees of green; it’s my daughter’s favorite song: Louis Armstrong’s “What a Wonderful World.” Truly, it is a wonderful world she lives in.




Copyright Rajiv Desai 2010

Friday, May 21, 2010

We Are Also Part of India’s Democracy

Keynote Speech at the Exchange4Media PR Summit
The Oberoi Hotel, New Delhi
May 21, 2010


Good morning,

Thank you, Anurag and your team, for organizing this PR Summit. I hope that over the years it grows and becomes a major platform for dialog within our profession.

I have titled my remarks: “We Are Also Part of India’s Democracy.”

I have stated my SOCO up front. As PR professionals, we are as much a part of India’s democracy as we are of its economy.

But PR is also about telling stories. So I’m going to tell you a story that I hope will give you a perspective on how our business has grown and developed and the challenges it faces.

Many years ago, when I came to India to set up IPAN, I used to tell the story of how PR became the world’s second oldest profession. We all know what the oldest profession is.

It has to do with Moses, who led the chosen people out of Egypt with the Pharaoh hot in pursuit. They found themselves stranded on the banks of the Red Sea. This was a huge problem. So Moses got his core strategy team together to look at the options.

There seemed to be none. His defense guy said they should stand and fight. His finance guy, who understood the salubrious impact of money, suggested the possibility of buying them out. But in their heart of hearts, his key advisers knew only a miracle could save them.

“Don’t worry,” said Moses, “I will part the sea and we will walk across to liberty. At that point, his PR guy spoke up, “Sir, if you can do that that I will get you ten pages in the Old Testament.”

So Moses performed the miracle and got his ten pages in the Old Testament.

I told this story 20 years ago, when PR consulting was a little known business. Times were simpler but mindsets were rigid. The press (and it was just the print media those days) did not entertain any releases or information from the corporate sector. For its part, the corporate sector saw PR as a free advertising.

Meanwhile clever operators like the public sector and some private sector firms managed to play the press like a fine-tuned fiddle. Just think, the public sector delivered very little but no questions were asked. It was the holy cow. I can remember the PR strategy of a Calcutta-based public sector firm: “Kill the story and I’ll get you two tickets on the Rajdhani.”

Some private entrepreneurs also cultivated friends in the press to oppose liberalization and reform. The notorious Bombay Club fought tooth and nail against foreign investment and against any changes in the license-permit raj.

Fast forward two decades and we find that the media are friendlier; our profession is recognized in its own right and is a significant player in the fast growing economy.

Recent developments have however cast a shadow that could affect our standing. I am referring to the current media attention on the role of PR firms in influencing choices in public policy. It is not at all surprising that the telecom sector is the source of stories about corporate sleaze and government corruption.

Why do I say it is not surprising? Let me digress a little: to the early 1980s, when I lived in the US. We had formed a group called India Forum that met weekly to consider developments in India. All of us were struck by the emergence of Rajiv Gandhi. In the event, many of us including my good friend Sam Pitroda took our first tentative steps to engage with India.

Our focus was on telecom because that was Sam’s field. At the time, the sector was in a primitive state. There were not enough phones and existent phones rarely worked. It was a project to make long distance calls, impossible to get connections. In fact, it was said that the entire telecom bureaucracy made money from providing out-of-turn connections.

We took the matter up with Rajiv Gandhi. The task was to convince him that the sector was vital to economic growth and to change political mindsets that held telephones to be a luxury. As such, Rajiv put his heft behind our recommendation that India should go in for digital rather than analog technology.

The rest is history. But the baggage is still there. The telecom sector seems to be a magnet for sleaze and murkiness as the recent controversy shows. And our profession risks being stigmatized unless we make some forceful interventions.

In a recent email interview to a leading financial paper, I was asked about lobbying and what the reporter saw as concomitant sleaze. She did highlight my responses in her front-page story and I believe I may have even helped her re-look at the lobbying controversy in which it was alleged that a PR firm tried to influence the choice of telecom minister and subsequently telecom policy.

There is nothing wrong in trying to influence public policy. Indeed, in a democracy, everyone has the right, nay the duty, to challenge wrong-headed legislation or to advocate for new policies to deal with changing situations. Over the years, I have chalked up many, many case studies in which we actively influenced government decisions in areas as diverse as consumer products; financial services; cable and satellite television; power generation; water management; public health and primary education.

Our strategy was to win media support, raise the debate in various public forums and to seek out articulate spokesmen and credible third-party endorsements.

To ensure that our profession does not get besmirched by the dirt and corruption of illegal methods, we need to make the following assertions:

1. Lobbying is a legitimate activity. It does not mean the exchange of money and favors to achieve a desired outcome. Bribery and corruption are illegal.

2. Lobbying is not relevant in India because of the sheer lack of transparency in government and politics. Legislators do not have backup policy staff; bureaucrats are too control-minded to be open to legitimate suggestions.

3. An advocacy strategy may be the most effective way to influence public policy. This involves working with the media and other influentials to advocate our views to policymakers.

4. The claims in the media are wildly exaggerated. I find it difficult to believe that a PR executive can influence the selection of cabinet ministers.

5. The gratuitous remarks by civil society activists about the pernicious impact of lobbying should be dismissed out of hand. They are themselves power brokers and fixers. Their prescriptions have crippled the economy, especially in the areas of infrastructure and agriculture.

On the other hand, the media also have much to answer for. You would think triviality is the first as in the sad spectacle of Sania Mirza; Shashi Tharoor; Lalit Modi; the IPL. Obsessed with trivialities, the media and their concomitant sources, the pr guys, tend to hijack the public debate.

There are other issues such as the nexus between the marketing people of corporations and the “brand managers” in the media. Just recently, The New York Times ran a story about how the major media are selling editorial space and time.

What’s happening is a travesty. If you undermine Indian democracy, you take away a major advantage we enjoy in the world.

On the economy, while I lament the Leftist thinking that still dominates intellectual life in India; I have to say that rampant commercialism is a bad thing. If we acquiesce in “treaties” and “packages,” we are selling our profession short, making it the equivalent of advertising.

It’s not just these subversive agreements, we are all called upon to measure our contribution in terms of advertising spends.

Our profession has its roots in Mahatma Gandhi. He used an advocacy strategy in which he staged events to influence the press and the government and petitioned the courts to in order to assert his rights under the law. That defeated first, the racist government in South Africa and then the colonial British government in India.

His SOCO: it is possible to change things.

I know there is a deep-rooted cynicism in the public debate that the only way to get things done in India is to bend rules, pay bribes or resort to blackmail.

Of course, these things happen. But if we are ever going build our profession as a legitimate part, not just of the economy but of India’s loud and raucous democracy, we have to stand for skepticism not cynicism; debate and negotiation, not surrender and compromise. Above all, we must stand for transparency.

This may sound impractical given the fact that media are willing to sell editorial space for a consideration. But then, I for one did not come to India to spark the PR consulting business only to see it flounder in murk and opacity.

I repeat: our business is squarely rooted in the Gandhian tradition. This sounds so idealistic that many of you would be blameless if you think I am naïve. Thank whatever Gods there be, our founding fathers who wrote our Constitution were not cynical. Else, we would have been like Pakistan, or Iran or any of the multifarious countries who are called the developing nations.

Remember the SOCO; our profession is as much a part of our democracy as it is of the economy.

And by the way, the term SOCO was invented by my team at Hill & Knowlton in Chicago in the early 1980s.



Copyright Rajiv Desai 2010

Wednesday, April 21, 2010

Good Policy

Need Governance


In many ways, the government has embarked on a path breaking route, in terms of both domestic and foreign policy.

To begin with, there is the issue of fertilizer subsidies. In one fell swoop, by targeting subsidies on the basis of nutrients, the government has changed the game. Now farmers will look to nutrients other than urea. This will increase yields dramatically. Urea-based fertilizers were good and government policies championed their use. Over the years, it became clear that they had passed the point of diminishing returns. Everywhere in the world, governments promoted suplhur-based and other nutrients in the mix to increase yields and protect the soil.

With all the noise about food inflation, the government has pointed to the exploitative role of middlemen in the journey that farm products make from the fields to the market. The finance minister made several references to the need for organized retail in the grocery business, most recently at the CII national meeting in Delhi.

Coming to taxes, the finance minister, in his budget speech, cut individual taxes while increasing some indirect levies. The idea is sterling: put more money in the hands of middle class families and let them decide what they can or cannot afford. If I am considering buying a car and it costs a few thousand rupees more, it is my call. By putting economic decisions in the hands of citizens, the government has made a major paradigm shift.

On internal security, the government has made major moves. It has taken on the Maoist movement in central India with force. The most recent incident in Dantewada only underscored the Prime Minister’s six-old assessment that Maoists pose the most significant threat to national security. True, there are complaints of security forces riding roughshod over the militants. But then, Dantewada showed that the Maoists are not known for their grace and diplomacy either. This tough approach seeks not only to contain the insurgents but to send a clear message that this is a hard government that will not stomach violent agitations.

On the national security front, the government has embarked on a new course. While initiating talks with Pakistan, it authorized a major Air Force exercise in the desert of Rajasthan to demonstrate its fighting capabilities. It was a brilliant move to invite most defense attaches of diplomatic missions and to leave out the representatives of China and Pakistan. The idea clearly was to exhibit hard power.

To reinforce the government’s hard line, the Prime Minister went to Saudi Arabia and urged the authorities there to weigh in with Pakistan to control the various terrorist groups that operate from there. It’s clear the Pakistan government has neither the wherewithal nor the will to reign in various terrorist groups that have a free run within its borders. A Saudi nudge could go a long way to boost the crippled Zardari government and the rogue elements within its army and the intelligence agency.

The emphasis on infrastructure is a key feature aspect of the government’s priorities. Roads, ports, airports, railroads are being built. The trouble is that corrupt and inept government agencies are in charge and its users are citizens, who lack civic consciousness. Thus it gets caught up in the bottlenecks caused by lackadaisical enforcement and scofflaw citizens.

Many cities now have modern airports; they are like white elephants because the minute you step outside there is total chaos. It’s the same thing for the highways. We recently traveled to Chandigarh from Delhi. The road is a work in progress and there are significant flyovers and wide pavements. But there is total traffic chaos. Even as you rev to the top speed of 90 kilometers an hours, you find yourself having to deal with vehicles going the wrong way, underpowered trucks, three-wheeled vehicles, bullock carts, cycle rickshaws, handcarts, herds of cows and sheep and scariest of all, daredevil pedestrians trying to cross the highway. There is simply no policing, no signage or any other accoutrements that go with modern highways. It’s almost as though modern amenities are made available to people with a medieval mindset.

Tragedy is the police have no authority to enforce the law. Even worse, they don’t even know the law. Just recently, I stopped a police car on the spanking new expressway that connects Delhi and Gurgaon to the airports. I told the police officer that the unchecked use of the expressway by two- and three-wheeled vehicles was a major traffic violation. I told him there were signs that these vehicles were not allowed. He told me to mind my own business. The government needs also to show its hard self here as much as it is doing with the Maoists in central India.

In the end, you have a modernizing government that is beset by a crude political class, a malignant bureaucracy and a pre-modern citizenry. As such, even though the government pursues enlightened policies, the ship of state seems to be caught on the rocks of casteism, communalism and corruption.

Bureaucrats blame crass politicians and the ignorant citizenry. Politicians castigate the bureaucracy. Citizens berate politicians and bureaucrats. It’s a sort of beggar-thy-neighbor view that enables the entire system to elude responsibility. If everyone’s to blame, then nobody is accountable.

This is the challenge for India that the world deems as an up and coming power.



An edited version of this article appeared in The Times of India, April 21, 2010


Copyright Rajiv Desai 2010