Monday, October 27, 2014

Accountability issues in PPP

We have been seeing of late in New Public Management (NPM) about the changes required in Government’s role. A number of stages are required to get an approval for a project. Government tends to keep the process intact rather than the end result. All this is done to keep the government machinery accountable.

Accountable to.. (Willems & Dooren, 2011)
  1. Political mechanisms – future elections, political debate, questions of opposition
  2. Judicial review – questioning by the courts
  3. Superior authority – chain of hierarchical command, government auditors, regulatory bodies, ombudsman
  4. Groups – Citizens, Interest groups (NGO’s)

In India, the ‘5 C’s and 1 M’ which question government decisions are CBI, CVC, CAG, CJI and CIC. The M is of course Media (governancenow.com)

Now, the account holders (people, judiciary, authority) concentrate on the process and not the performance of accounting. It has become easier to hold someone accountable for a 'failure in finance and fairness' rather than on a 'failure in performance'.
What is required now is a change looking at efficiency and value for money.
Few solutions in this regard as mentioned in (Forrer et.al, 2010) are
  1. Cost- benefit analysis -  to show (people, judiciary and authority) that the project is done because of the benefits
  2. Get social and political support – by increasing transparency and involving people in decision making
  3. Performance measurement – based on implementation and benefit to people


Reference
  1. http://www.governancenow.com/news/regular-story/how-get-governance-going-plug-policy-paralysis
  2. Willems, T., & Van Dooren, W. (2011). Lost in diffusion? How collaborative arrangements lead to an accountability paradox. International Review of Administrative Sciences77(3), 505-530. 
  3. Forrer, J., Kee, J. E., Newcomer, K. E., & Boyer, E. (2010). Public–private partnerships and the public accountability question. Public Administration Review70(3), 475-484. 

2 comments:

Anonymous said...

The best example I would like to quote is the exploration and production policy of the government and reliance case where despite reliance manipulating Pre tax multiplier ratio government was not able to audit the company because there was no such agreement between them but after many hurdles and wasting a lot of time Supreme court gave the way for the audit on the reason that it involves public money.
And reliance was guilty of it, therefore we can say that all the deals in which tax payers money is involved the agreement should inherently have a clause and thus a law of the land should be made such that every possible infrastructure we project can be audited by the CAG or the CBI if need arises.

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