Ethics in Governance | Indian Polity for UPSC CSE PDF Download

 Page 1


Fourth report
Second AdminiStr Ative reformS commiSSion
Second Administrative reforms commission
Government of India
2nd Floor, Vigyan Bhawan Annexe, Maulana Azad road, New Delhi 110 011
e-mail : arcommission@nic.in    website : http://arc.gov.in
“Y ou must be the change 
you wish to see in the world.”
Mahatma Gandhi
JAnu Ary 2007
Page 2


Fourth report
Second AdminiStr Ative reformS commiSSion
Second Administrative reforms commission
Government of India
2nd Floor, Vigyan Bhawan Annexe, Maulana Azad road, New Delhi 110 011
e-mail : arcommission@nic.in    website : http://arc.gov.in
“Y ou must be the change 
you wish to see in the world.”
Mahatma Gandhi
JAnu Ary 2007
GOVERNMENT OF INDIA
SECOND ADMINISTRATIVE REFORMS COMMISSION
FOURTH REPORT
ETHICS IN GOVERNANCE
JANUARY 2007
Page 3


Fourth report
Second AdminiStr Ative reformS commiSSion
Second Administrative reforms commission
Government of India
2nd Floor, Vigyan Bhawan Annexe, Maulana Azad road, New Delhi 110 011
e-mail : arcommission@nic.in    website : http://arc.gov.in
“Y ou must be the change 
you wish to see in the world.”
Mahatma Gandhi
JAnu Ary 2007
GOVERNMENT OF INDIA
SECOND ADMINISTRATIVE REFORMS COMMISSION
FOURTH REPORT
ETHICS IN GOVERNANCE
JANUARY 2007
PREFACE
“ As human beings, our greatness lies not so much in being able to remake the world - that is the myth of the
atomic age - as in being able to remake ourselves”
Mahatma Gandhi
The Mahatma’s vision of a strong and prosperous India - Purna Swaraj - can never become a
reality if we do not address the issue of the stranglehold of corruption on our polity, economy and
society in general.
Governance is admittedly the weak link in our quest for prosperity and equity. Elimination of
corruption is not only a moral imperative but an economic necessity for a nation aspiring to catch
up with the rest of the world. Improved governance in the form of non-expropriation, contract
enforcement, and decrease in bureaucratic delays and corruption can raise the GDP growth rate
significantly. The six perceived governance quality measures, each an aggregate of a number of
sub-measures, are: voice and accountability; absence of political instability and violence; government
effectiveness; reasonableness of the regulatory burden; the rule of law; and the absence of graft. Of
these, the last two are the most directly significant in the context of ethical governance. ‘Rule of
law’ measures whether crime is properly punished or not; enforceability of contracts; extent of
black market; enforceable rights of property; extent of tax evasion; judiciary’s independence; ability
of business and people to challenge government action in courts etc. ‘Absence of graft’ measures
relative absence of corruption among government, political and bureaucratic officials; of bribes
related to securing of permits and licences; of corruption in the judiciary; of corruption that scares
off foreign investors.
There is a perception that the public services have remained largely exempt from the imposition
of penalties due to the complicated procedures that have arisen out of the Constitutional guarantee
against arbitrary and vindictive action. Those Constitutional safeguards have in practice shielded the
guilty against the swift and certain punishment for abuse of public office for private gain.
A major corollary has been the erosion of accountability . The huge body of jurisprudential precedents
has crowded out the real intent of Article 311, and created a heap of roadblocks in reducing corruption.
Such a provision is not available in any of the democratic countries including the UK. While the
honest have to be protected, the dishonest seem to corner the full benefit of Article 311. Hence there
is need for a comprehensive examination of the entire corpus of administrative jurisprudence to
rationalise and simplify the procedures. One of the indicators of lax enforcement is delay in sanctioning
prosecution of a delinquent by the competent authority. Reference may be made to the Annual
Report of the Central Vigilance Commission for the year 2004. Out of 153 cases for sanction, 21
cases were pending for more than 3 years, 26 cases between 2-3 years, 25 between 1-2 years. The
departmental enquiries are soft-pedalled either out of patronage or misplaced compassion.
“Y ou must be the change you wish to see in the world.”
Mahatma Gandhi
Page 4


Fourth report
Second AdminiStr Ative reformS commiSSion
Second Administrative reforms commission
Government of India
2nd Floor, Vigyan Bhawan Annexe, Maulana Azad road, New Delhi 110 011
e-mail : arcommission@nic.in    website : http://arc.gov.in
“Y ou must be the change 
you wish to see in the world.”
Mahatma Gandhi
JAnu Ary 2007
GOVERNMENT OF INDIA
SECOND ADMINISTRATIVE REFORMS COMMISSION
FOURTH REPORT
ETHICS IN GOVERNANCE
JANUARY 2007
PREFACE
“ As human beings, our greatness lies not so much in being able to remake the world - that is the myth of the
atomic age - as in being able to remake ourselves”
Mahatma Gandhi
The Mahatma’s vision of a strong and prosperous India - Purna Swaraj - can never become a
reality if we do not address the issue of the stranglehold of corruption on our polity, economy and
society in general.
Governance is admittedly the weak link in our quest for prosperity and equity. Elimination of
corruption is not only a moral imperative but an economic necessity for a nation aspiring to catch
up with the rest of the world. Improved governance in the form of non-expropriation, contract
enforcement, and decrease in bureaucratic delays and corruption can raise the GDP growth rate
significantly. The six perceived governance quality measures, each an aggregate of a number of
sub-measures, are: voice and accountability; absence of political instability and violence; government
effectiveness; reasonableness of the regulatory burden; the rule of law; and the absence of graft. Of
these, the last two are the most directly significant in the context of ethical governance. ‘Rule of
law’ measures whether crime is properly punished or not; enforceability of contracts; extent of
black market; enforceable rights of property; extent of tax evasion; judiciary’s independence; ability
of business and people to challenge government action in courts etc. ‘Absence of graft’ measures
relative absence of corruption among government, political and bureaucratic officials; of bribes
related to securing of permits and licences; of corruption in the judiciary; of corruption that scares
off foreign investors.
There is a perception that the public services have remained largely exempt from the imposition
of penalties due to the complicated procedures that have arisen out of the Constitutional guarantee
against arbitrary and vindictive action. Those Constitutional safeguards have in practice shielded the
guilty against the swift and certain punishment for abuse of public office for private gain.
A major corollary has been the erosion of accountability . The huge body of jurisprudential precedents
has crowded out the real intent of Article 311, and created a heap of roadblocks in reducing corruption.
Such a provision is not available in any of the democratic countries including the UK. While the
honest have to be protected, the dishonest seem to corner the full benefit of Article 311. Hence there
is need for a comprehensive examination of the entire corpus of administrative jurisprudence to
rationalise and simplify the procedures. One of the indicators of lax enforcement is delay in sanctioning
prosecution of a delinquent by the competent authority. Reference may be made to the Annual
Report of the Central Vigilance Commission for the year 2004. Out of 153 cases for sanction, 21
cases were pending for more than 3 years, 26 cases between 2-3 years, 25 between 1-2 years. The
departmental enquiries are soft-pedalled either out of patronage or misplaced compassion.
“Y ou must be the change you wish to see in the world.”
Mahatma Gandhi
Integrity is much more than financial honesty. Public office should be treated as a
trust. There are two facets to corruption: (1) the institution which is highly corrupt;
(2) individuals who are highly corrupt. There is a need to work on public profiteering and
also value to be attributed to the services rendered by officers. Interlocking accountability
is a process by which evaluation could be done easily and accountability ensured.
Building trust and confidence requires an environment where there is a premium on
transparency, openness, boldness, fairness and justice. We should encourage this.
Clearly, the absence of rules is not the problem. One cannot mandate honesty. The
rule of law can only defeat the perverse mind. However, it cannot defeat the perversity of
the heart. In to the words of Aleksandr Solzhenitsyn: “The line separating good and evil
passes not between states nor between classes… but through the middle of every human
heart”. We have no destinies other than those we forge ourselves. He who administers
government by means of his virtues may be compared to the Pole star which keeps its
place and all other stars turn towards it. When the ruler himself is right, the people
naturally follow him in his right course. If governance is by men who are derelict, the
governed will suffer. We have to keep in mind Plato’s injunction:
“The punishment suffered by the wise who refuse to take part in government,
is to suffer under the government of bad men”
Good governance must be founded on moral virtues ensuring stability and harmony.
Confucius described righteousness as the foundation of good governance and peace. The
art of good governance simply lies in making things right and putting them in their
right place. Confucius’s prescription for good governance is ideally suited for a country
like India where many of our present day players in governance do not adhere to any
principle and ensure only their own interests.
Confucius emphasizes the righteousness for life and character building. This is in
conformity with Dharma or righteousness as taught by all religions in the world and
preached in Buddhism very predominantly in its fourth noble truth. He also emphasizes
that man himself must become righteous and then only there shall be righteousness in
the world. This is comparable with what Gandhiji said, “Be the change you wish to see in
the world”.
So, in the ultimate analysis, it is a question of ethics. Ethics is a set of standards that
helps guide conduct. One of the problems is that the present codes of conduct are not
direct and to the point. They are full of vague sermons that rarely indicate prohibitions
directly . For formulating a code of ethics, it would be useful to keep in mind the advice of
Napoleon who said, ‘Law should be so succinct that it can be carried in the pocket of the
coat and it should be so simple that it can be understood by a peasant’.
While it may not always be possible to establish the criminal offence of
misappropriation in a court of law, the Government servant can still be removed from
service for causing serious monetary loss to the State. An engineer may have deliberately
permitted the construction of a defective irrigation dam or building. It may not be possible
to get him convicted in court on charges of corruption but he could be removed from
service on grounds of incompetence. A tax official may have connived to allow the leakage
of revenue for return favours in the future. Such conduct may not provide the ingredients
of a criminal offence but can lead to his exit from service.
The standard for probity in public life should be not only conviction in a criminal
court but propriety as determined by suitable independent institutions specifically
constituted for the purpose. We have broadly copied the British model of governance.
Ministers in Tony Blair’s government have had to resign on such minor improprieties as
a telephone call to the concerned person to fast track the issue of a visa for the ‘nanny’ of
the Minister’s child or the grant of British citizenship to a generous contributor to a
cause supported by the Government. Such principles were upheld and pronounced by
Jawaharlal Nehru in the Mudgal case in which the said Lok Sabha Member was expelled
by Parliament on 24
th
 September, 1951 even when the Member volunteered to resign.
The Mudgal case is often cited as the noblest example of the early leadership’s efforts at
setting high standards of conduct in parliamentary life.
W e need to reverse the slide by prescribing stringent standards of probity in public
life instead of providing shelter to public figures of suspect integrity behind the argument
of their not having been convicted in a court. The standard should be one of not only the
conduct of Caesar’s wife but of Caesar himself.
The solution to the problem of corruption has to be more systemic than any other
issue of governance. Merely shrinking the economic role of the state by resorting to
deregulation, liberalization and privatization is not necessarily the solution to addressing
the problem. Prevalent institutional arrangements have to be reviewed and changes made
where those vested with power are made accountable, their functioning made more
transparent and subjected to social audit with a view to minimize discretionary decisions.
All procedures, laws and regulations that breed corruption and come in the way of efficient
delivery system will have to be eliminated. The perverse system of incentives in public
life, which makes corruption a high return low risk activity, need to be addressed. In this
context, public example has to be made out of people convicted on corruption charge
Page 5


Fourth report
Second AdminiStr Ative reformS commiSSion
Second Administrative reforms commission
Government of India
2nd Floor, Vigyan Bhawan Annexe, Maulana Azad road, New Delhi 110 011
e-mail : arcommission@nic.in    website : http://arc.gov.in
“Y ou must be the change 
you wish to see in the world.”
Mahatma Gandhi
JAnu Ary 2007
GOVERNMENT OF INDIA
SECOND ADMINISTRATIVE REFORMS COMMISSION
FOURTH REPORT
ETHICS IN GOVERNANCE
JANUARY 2007
PREFACE
“ As human beings, our greatness lies not so much in being able to remake the world - that is the myth of the
atomic age - as in being able to remake ourselves”
Mahatma Gandhi
The Mahatma’s vision of a strong and prosperous India - Purna Swaraj - can never become a
reality if we do not address the issue of the stranglehold of corruption on our polity, economy and
society in general.
Governance is admittedly the weak link in our quest for prosperity and equity. Elimination of
corruption is not only a moral imperative but an economic necessity for a nation aspiring to catch
up with the rest of the world. Improved governance in the form of non-expropriation, contract
enforcement, and decrease in bureaucratic delays and corruption can raise the GDP growth rate
significantly. The six perceived governance quality measures, each an aggregate of a number of
sub-measures, are: voice and accountability; absence of political instability and violence; government
effectiveness; reasonableness of the regulatory burden; the rule of law; and the absence of graft. Of
these, the last two are the most directly significant in the context of ethical governance. ‘Rule of
law’ measures whether crime is properly punished or not; enforceability of contracts; extent of
black market; enforceable rights of property; extent of tax evasion; judiciary’s independence; ability
of business and people to challenge government action in courts etc. ‘Absence of graft’ measures
relative absence of corruption among government, political and bureaucratic officials; of bribes
related to securing of permits and licences; of corruption in the judiciary; of corruption that scares
off foreign investors.
There is a perception that the public services have remained largely exempt from the imposition
of penalties due to the complicated procedures that have arisen out of the Constitutional guarantee
against arbitrary and vindictive action. Those Constitutional safeguards have in practice shielded the
guilty against the swift and certain punishment for abuse of public office for private gain.
A major corollary has been the erosion of accountability . The huge body of jurisprudential precedents
has crowded out the real intent of Article 311, and created a heap of roadblocks in reducing corruption.
Such a provision is not available in any of the democratic countries including the UK. While the
honest have to be protected, the dishonest seem to corner the full benefit of Article 311. Hence there
is need for a comprehensive examination of the entire corpus of administrative jurisprudence to
rationalise and simplify the procedures. One of the indicators of lax enforcement is delay in sanctioning
prosecution of a delinquent by the competent authority. Reference may be made to the Annual
Report of the Central Vigilance Commission for the year 2004. Out of 153 cases for sanction, 21
cases were pending for more than 3 years, 26 cases between 2-3 years, 25 between 1-2 years. The
departmental enquiries are soft-pedalled either out of patronage or misplaced compassion.
“Y ou must be the change you wish to see in the world.”
Mahatma Gandhi
Integrity is much more than financial honesty. Public office should be treated as a
trust. There are two facets to corruption: (1) the institution which is highly corrupt;
(2) individuals who are highly corrupt. There is a need to work on public profiteering and
also value to be attributed to the services rendered by officers. Interlocking accountability
is a process by which evaluation could be done easily and accountability ensured.
Building trust and confidence requires an environment where there is a premium on
transparency, openness, boldness, fairness and justice. We should encourage this.
Clearly, the absence of rules is not the problem. One cannot mandate honesty. The
rule of law can only defeat the perverse mind. However, it cannot defeat the perversity of
the heart. In to the words of Aleksandr Solzhenitsyn: “The line separating good and evil
passes not between states nor between classes… but through the middle of every human
heart”. We have no destinies other than those we forge ourselves. He who administers
government by means of his virtues may be compared to the Pole star which keeps its
place and all other stars turn towards it. When the ruler himself is right, the people
naturally follow him in his right course. If governance is by men who are derelict, the
governed will suffer. We have to keep in mind Plato’s injunction:
“The punishment suffered by the wise who refuse to take part in government,
is to suffer under the government of bad men”
Good governance must be founded on moral virtues ensuring stability and harmony.
Confucius described righteousness as the foundation of good governance and peace. The
art of good governance simply lies in making things right and putting them in their
right place. Confucius’s prescription for good governance is ideally suited for a country
like India where many of our present day players in governance do not adhere to any
principle and ensure only their own interests.
Confucius emphasizes the righteousness for life and character building. This is in
conformity with Dharma or righteousness as taught by all religions in the world and
preached in Buddhism very predominantly in its fourth noble truth. He also emphasizes
that man himself must become righteous and then only there shall be righteousness in
the world. This is comparable with what Gandhiji said, “Be the change you wish to see in
the world”.
So, in the ultimate analysis, it is a question of ethics. Ethics is a set of standards that
helps guide conduct. One of the problems is that the present codes of conduct are not
direct and to the point. They are full of vague sermons that rarely indicate prohibitions
directly . For formulating a code of ethics, it would be useful to keep in mind the advice of
Napoleon who said, ‘Law should be so succinct that it can be carried in the pocket of the
coat and it should be so simple that it can be understood by a peasant’.
While it may not always be possible to establish the criminal offence of
misappropriation in a court of law, the Government servant can still be removed from
service for causing serious monetary loss to the State. An engineer may have deliberately
permitted the construction of a defective irrigation dam or building. It may not be possible
to get him convicted in court on charges of corruption but he could be removed from
service on grounds of incompetence. A tax official may have connived to allow the leakage
of revenue for return favours in the future. Such conduct may not provide the ingredients
of a criminal offence but can lead to his exit from service.
The standard for probity in public life should be not only conviction in a criminal
court but propriety as determined by suitable independent institutions specifically
constituted for the purpose. We have broadly copied the British model of governance.
Ministers in Tony Blair’s government have had to resign on such minor improprieties as
a telephone call to the concerned person to fast track the issue of a visa for the ‘nanny’ of
the Minister’s child or the grant of British citizenship to a generous contributor to a
cause supported by the Government. Such principles were upheld and pronounced by
Jawaharlal Nehru in the Mudgal case in which the said Lok Sabha Member was expelled
by Parliament on 24
th
 September, 1951 even when the Member volunteered to resign.
The Mudgal case is often cited as the noblest example of the early leadership’s efforts at
setting high standards of conduct in parliamentary life.
W e need to reverse the slide by prescribing stringent standards of probity in public
life instead of providing shelter to public figures of suspect integrity behind the argument
of their not having been convicted in a court. The standard should be one of not only the
conduct of Caesar’s wife but of Caesar himself.
The solution to the problem of corruption has to be more systemic than any other
issue of governance. Merely shrinking the economic role of the state by resorting to
deregulation, liberalization and privatization is not necessarily the solution to addressing
the problem. Prevalent institutional arrangements have to be reviewed and changes made
where those vested with power are made accountable, their functioning made more
transparent and subjected to social audit with a view to minimize discretionary decisions.
All procedures, laws and regulations that breed corruption and come in the way of efficient
delivery system will have to be eliminated. The perverse system of incentives in public
life, which makes corruption a high return low risk activity, need to be addressed. In this
context, public example has to be made out of people convicted on corruption charge
and the legal process in such cases has to be expedited. This hopefully, will also address
the growing permissiveness in the society, in the more recent times, to the phenomenon
of corruption. In addition, with changes in economic policy regime, regulatory bodies
that guide and monitor the functioning of the relevant economic agents, lay down the
rules of conduct in the interest of consumers and devise such practices that help in efficient
functioning of the system, will have to be established in many sectors of the economy
that are now being opened up. At the same time, social monitoring through empowered
autonomous and credible structures will have to be established even for the highest of
the public offices. Right to information has to be the starting point for some of these
changes.
The focus should be on e-governance and systemic change. An honest system of
governance will displace dishonest persons. As Gladstone so aptly said, “The purpose of
a government is to make it easy for people to do good and difficult to do evil”.
We always find alibi for our lapses by quoting trespass from other democratic
institutions, by resorting to a blame game. The executive/civil services blame interference
by the political executive or legislatures and vice versa; legislators blame the judiciary
and vice versa – the main problem lies in each one leaving space for others to occupy. If
any of the democratic institutions leaves space, the mafia or extra-constitutional authority
occupies that space. Realization of its own authority and discharging its sphere of
responsibility, developing accountability and responsiveness are the real solutions to the
conflicting situations of eroding democratic polity. I conclude by quoting an ancient
subhashit (good message) -
“Rivers do not drink their waters themselves, nor do trees eat their fruit, nor
do the clouds eat the grains raised by them. The wealth of the noble is used solely
for the benefit of others.”
New Delhi (M. Veerappa Moily)
January 16, 2007 Chairman
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Administrative Reforms and Public Grievances
Resolution
New Delhi, the 31
st
 August, 2005
No. K-11022/9/2004-RC. — The President is pleased to set up a Commission of Inquiry to
be called the second Administrative Reforms Commission (ARC) to prepare a detailed
blueprint for revamping the public administration system.
2. The Commission will consist of the following :
(i) Shri Veerappa Moily - Chairperson
(ii) Shri V . Ramachandran - Member
(iii) Dr. A.P . Mukherjee - Member
(iv) Dr. A.H. Kalro - Member
(v) Dr. Jayaprakash Narayan - Member
(vi) Smt. Vineeta Rai - Member-Secretary
3. The Commission will suggest measures to achieve a proactive, responsive, accountable,
sustainable and efficient administration for the country at all levels of the government.
The Commission will, inter alia, consider the following :
(i) Organisational structure of the Government of India
(ii) Ethics in governance
(iii) Refurbishing of Personnel Administration
(iv) Strengthening of Financial Management Systems
(v) Steps to ensure effective administration at the State level
(vi) Steps to ensure effective District Administration
(vii) Local Self-Government/Panchayati Raj Institutions
(viii) Social Capital, Trust and Participative public service delivery
(ix) Citizen-centric administration
(x) Promoting e-governance