AUTONOMY OF INDIAN INSTITUTIONS

1. In the anxiety to get the economic reforms going on, well meaning economists, intellectuals and business persons still continue to pamper political and bureaucratic class. In India the continuity of feudal – colonial outfit in the mindsets of people is very strong. The socialist fervour of post independence India brought the government control to areas, which were never controlled by government from Maurya, to Gupta to Mughal to British periods, for example to trade (except for tax collection) to industry, to academia, to religious bodies etc.

2. The earlier tussle between Union HRD Ministry and IIT-ITM’s is only a tip of the iceberg – or rather a fashion – show – comic – strip! The recent actions by HRD Ministry vis-à -vis Central Universities and (IIT’s often without prior consultations are indicative of the future directions. In reality over years, the State Governments have taken full control of most of the School and Higher Education within the State. Though private sector flourishes even the better ones are surviving only because they are mastering the techniques of servility to politician bureaucrat controls on them. In the name of public interest, everything from admissions to exams to teacher selection are controlled. No wonder innovations are not coming up. Most of the ‘Acts’ creating these ‘autonomous’ institutions have been quietly peppered with the words ‘Govt (Central or State). Therefore the courts further empower these inefficient (often corrupt) Govt. machineries further by their rulings.

3. Central government was better in this connection (relatively). But during the recent years, Central Universities etc have been heavily controlled by HRD – something which not well known as media does not consider them important. But bulk of human resources come from them! In the early years having President of India, PM as Visitor, Chancellor etc was considered good. But this allows the bureaucracy to get in. Has Shantiniketan been saved? It has PM as Chancellor (Acharya) always & President as Visitor.

4.Under the name of accountability to the Parliament or State Legislatures, all Institutions (PSU, Academic, S&T Lab, Tasks etc) have been controlled. Even many in the Private Sector (totally private without any Government fund or project) can be covered by one Act or another. If one seriously look into the details. See what happed ONGC disinvestments! Most laws were made under British time or post independent India. British wanted control on the natives. In the post-independent India, the governance started with the total mistrust of private efforts and therefore most operative laws have provisions for government to march in and control in public interest. Information can be collected in public interest by persons in Govt bodies or departments or in Ministries (to arm twist privately). This is the way in which Govt. control, Government’s right to inspect etc get “monetised” as corruption. It is happening now, people talk about it in hushed tones. Look at the Registration of Societies Act or on Trust or even Companies Act! There are many Damocles swords on private individuals. The current practices need not be a precedent for an “innovative” Minister or a bureaucratic. He/She can use a copy book interpretation of law. Courts will not be able to save when the Devil quotes Scriptures! It is against this background IIT’s IIM’s have to be seen. Even financial autonomy will not help them as the Acts and Memorandum of Association’s would all contain difficult phrases empowering the Government on various details from budget to personnel selection, to many operational details.

5. You may wonder why I am raising these issues. Politics in India is getting very difficult and requires lots of money power. In the earlier days “milch cows” were PSU’s and Government contracts. But they (PUS’s) are coming down in volumes and are often drying up. It is the private money that is now getting into business. Education, Religious Trusts, Schools, Colleges, Social Service Organisations, Foundation etc. Therefore the control seeking politics and bureaucracy – Black Money systems, will seek new pastures into the wealthy private sector premises – be it an IT Company, BT venture, Business School or Primary School or Temple or Old type Manufacturing Company. There are many emotional issues which can be used against them, for example. Social justice issues, environmental concerns, foreign agency connection,, health issues, affordability of prices (‘you name it’). Unfortunately for India, most of the existing Laws, (Acts, etc) can be cleverly interpreted to empower Government to ‘poke into’ the affairs of a private effort even though they are financially autonomous. THIS IS THE REAL SORRY STATE OF AUTONOMY IN INDIA FOR MODERRN INSTITUTIONS like companies, services, non-profit institution, School, Colleges etc. Only business that may thrive would perhaps be legal profession, as every body will be going to the Courts to seek remedy. But for reasons, I have briefly described above, it is unlikely that the courts can help! Also consider the delays! Also even Court orders can be “nullified” by a new legislation, when the “political” interests coincide (often these will coincide in matters of making money through power!).

6. Therefore, I believe that one crucial element to be ensures in our public life and transactions is TRUE AUTONOMY OF INSTITUTIONS. The plethora of laws/procedures for public accountability through Government should be replaced by something different (Not another Regulatory Commission as it will also suffer from Government hand over). Also public opinion should be created through various subtle (and not – so – subtle) means, making people understand that trust on private institutions is vital for the future of the nation in fact for the weak and the poor (and not a Government’s coordination). Creation of such a climate is vital for economic reforms to come about and sustain. In this context, it is not enough to compare English words of British or US Laws. We have to see how they work in Indian social context and ruthlessly cut out phrases which may allow a corrupt or a fanatic Government machinery to stifle institutional autonomy.

7. All concerned citizens have to think about a new paradigm of autonomy. There can be accountability without monopoly agencies sitting in judgement. It can be like the Chartered Accountants system and use the mandatory placing of the information on websites.

8. In fact the country has to graduate from its National Independence to Institutional Independence so that truly private entrepreneurship can blossom in the country (creating wealth and social security).

First written on 18th April 2004 with limited circulation. Then touched up on 18th April 2006,sent to a few persons. This is a general version for public attention – dated 18 January 2007