Premium growth through structural reforms
OPINION— Former Niti Aayog Arvind Panagariya
India had been growing at an average of 7.5% over first 3 years of NDA govt. This was a period of bold but incremental reforms like liberalising FDIs, closing tax loopholes, financial inclusion, Aadhar + DBT, bankruptcy code, benami transactions, planning commission and monetary policy reforms, tight monetary & fiscal policy, PSUs & sectoral reforms, etc.
Demonetisation and GST were disruptive to the informal sector. They have brought down the growth rate a little, by perhaps 1%. The upside to these reforms should be a higher prospective growth rate of say 8% pa. India can grow for one or two decades at a high growth rate. But for this India must make 3 major reforms:
1) Labour laws
2) Land acquisition laws
3) Civil service reforms.
Comment:
Restrictive labour laws --> lack of formalisation --> small companies remain small --> failure to scale up, loss of competitive advantage & lower jobs growth -->
1. remove restriction, add safety net
2. facilitate MSME to flourish
Land acquisition laws --> poor EODB, corruption -->
1. digital land registry, Aadhaar, blockchain
2. guaranteed land title transfer
3. land from sick PSUs, land pooling, land leasing
4. streamline land laws, not reduce compensation
Tax evasion & corruption -->
1. clear norms, reduce opportunity
2. responsibility on taxpayer & official
3. collect data and prosecute
4. Aadhaar ID & blockchain
5. digitisation, formalisation
Poor quality --> faulty, compromised assessment—>
1. independent and honest administration board
2. frequent monitoring, Aadhaar ID, non human interactions
3. digital capture and data analysis, blockchain records
4. transparency and disclosure —reports, rankings
5. staff recruitment and training (incl ethics)
6. outcomes-based course correction
Poor quality --> faulty standards -->
1. policy is practical, realistic
2. formal training & certification
3. outcomes-based course correction
Poor quality --> faulty production -->
1. quality control over purchasing, storage
2. recruitment, training and incentives
3. quality enhancements in processes
4. quality control, reject substandard output
5. mechanisation & automation
6. competition and private sector
OPINION— Former Niti Aayog Arvind Panagariya
India had been growing at an average of 7.5% over first 3 years of NDA govt. This was a period of bold but incremental reforms like liberalising FDIs, closing tax loopholes, financial inclusion, Aadhar + DBT, bankruptcy code, benami transactions, planning commission and monetary policy reforms, tight monetary & fiscal policy, PSUs & sectoral reforms, etc.
Demonetisation and GST were disruptive to the informal sector. They have brought down the growth rate a little, by perhaps 1%. The upside to these reforms should be a higher prospective growth rate of say 8% pa. India can grow for one or two decades at a high growth rate. But for this India must make 3 major reforms:
1) Labour laws
2) Land acquisition laws
3) Civil service reforms.
Comment:
Restrictive labour laws --> lack of formalisation --> small companies remain small --> failure to scale up, loss of competitive advantage & lower jobs growth -->
1. remove restriction, add safety net
2. facilitate MSME to flourish
Land acquisition laws --> poor EODB, corruption -->
1. digital land registry, Aadhaar, blockchain
2. guaranteed land title transfer
3. land from sick PSUs, land pooling, land leasing
4. streamline land laws, not reduce compensation
Tax evasion & corruption -->
1. clear norms, reduce opportunity
2. responsibility on taxpayer & official
3. collect data and prosecute
4. Aadhaar ID & blockchain
5. digitisation, formalisation
Poor quality --> faulty, compromised assessment—>
1. independent and honest administration board
2. frequent monitoring, Aadhaar ID, non human interactions
3. digital capture and data analysis, blockchain records
4. transparency and disclosure —reports, rankings
5. staff recruitment and training (incl ethics)
6. outcomes-based course correction
Poor quality --> faulty standards -->
1. policy is practical, realistic
2. formal training & certification
3. outcomes-based course correction
Poor quality --> faulty production -->
1. quality control over purchasing, storage
2. recruitment, training and incentives
3. quality enhancements in processes
4. quality control, reject substandard output
5. mechanisation & automation
6. competition and private sector
2
Shared publicly
- ☼► National Medical Commission (NMC) Bill, 2016
(Reform of medical education system)---------------------------------------------
Rot in medical system is deep: It starts at the top @Medical Council of India!! Recent examples:
▬ Negligence
▬ Rip-off on hospital stays
Findings:
▬ conflict of interest
▬ closed shop for selecting regulators
▬ non transparent and ineffective system of inspections of medical colleges
▬ non uniform standards of medical education
NMC 2016---------------
NMC is a collaborative effort, and has wide political support. It breaks up the Council into logical parts, to reduce conflict of interest & develop domain expertise. State representation is useful. Experts in the boards will not only guide boards on complex matters but bring uniform high standards (eg from shared learning across the country & following best practise). Industry representation is a minority.
Emphasis on quality outcomes: learning & teaching----------------------------------------------
▬ content not prescriptive—but, realistic, necessary
▬ periodic ratings published — enough detail for public to judge, and institutes to improve
Selection / exit to undergraduate/ postgraduate------------------------------------------------------
National Common Entrance examinations are needed:
▬ test is common and independent of schools
▬ merits of candidate is placed well ahead of any other criteria (ie. money doesn't buy a place in medical school)
National Licentiate Examination :
▬ high minimum standards for current needs
▬ is it too arduous and long for students? Will colleges fudge marks?
Adequate supply of medical professionals---------------------------------------------------------------
NMC aims to increase supply to help raise the doctor-patient ratio to world norms. NMC eases norms for running medical colleges:
▬ one time accreditation
▬ allows higher fees for 40% of seats
▬ autonomously increase no of undergraduate seats
▬ autonomously start postgraduate courses
My Input---------------
○ Undergraduate
▬ entry selection (objective criteria developed though analysis of what has worked, common aptitude test)
▬ uniform high standards (needs core knowledge and skills)
○ Postgraduate
▬ no. of speciality placements (enough places, perhaps a little in excess of what is required)
▬ adequate facilities & work experience support.
▬ secondary selection (institutes with proven excellence, etc and doctors meeting qualifying criteria)
○ Accreditation
▬ system of inspections (ethics framework, established format)
▬ handle registration issues, inspection shortfalls
○ Ethics & regulations
▬ policy setting will need representatives of all hue
▬ hear disciplinary cases
REPLY Feb 1, 2018 - Medical education reforms : improve poor quality
---------------------------------------------------------------
Poor quality --> faulty, compromised assessment—>
1. Detailed report every 3 months and published.
2. Ranking of colleges — faulty inspections can be contested
3. Representative panel for choosing board members —broader prospective than industry concerns.
4. Split the functions of inspection, policy setting and running of colleges — reduces conflict of interest
5. Experts to guide policy & guideline setting
6. Domain expertise in inspections, ethics, disciplinary action, standards setting, managing overall supply, etc
7. One time accreditation — less opportunity for corruption
Poor quality --> faulty standards -->
1. Separate undergraduate & postgraduate boards to set standards.
2. Experts on panel to guide standards setting
3. Standards revised based on feedback on outcomes
Poor quality --> faulty production -->
1. National common admission tests. Merit based. Money becomes less of an issue in admissions?
2. High minimum levels of attainments in new graduates
3. Incentive for colleges to improve learning & teaching
4. Adequate facilities, work experience opportunities due to good standards setting and inspection regime
5. Successful colleges can increase intake—puts a premium on efficiency, innovation & results
6. Ease of running collegesREPLY Jan 26, 2018
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