The 2nd ARC 13th Report: Main Issues and Recommendations

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The Second Administrative Reforms Commission (ARC) 13th Report titled “Organisational Structure of Government of India” focused on enhancing the efficiency, accountability, and responsiveness of the government. Here is a summary of the main issues identified in the report, along with the recommendations offered, which are relevant for writing answers in Civil Services Main Examination for GS Papers.

Main Issues Identified

1. Bureaucratic Redundancies

Issue: There are overlapping roles and responsibilities across different ministries and departments, leading to inefficiencies, duplication of efforts, and delays in decision-making.
Example: For instance, both the Ministry of Environment and Forests and the Ministry of Water Resources handle aspects of water management, causing coordination problems and conflicting decisions in policy implementation.
Fact: The existence of multiple agencies for disaster management—like the National Disaster Response Force (NDRF) and the state-level disaster agencies—often leads to delayed responses due to bureaucratic red tape.

2. Rigid Hierarchical Structures

Issue: The traditional hierarchical system slows down decision-making, as every issue is escalated to senior officials, delaying critical actions and responses.
Example: During the implementation of the Goods and Services Tax (GST), decisions involving procedural changes required clearance from multiple layers of bureaucracy, leading to a slow rollout in certain states.
Fact: Research shows that centralized hierarchical decision-making often leads to “bottlenecking,” especially in times of crisis (e.g., disaster response in flood-affected areas like Kerala in 2018).

3. Centralization of Powers

Issue: Excessive concentration of decision-making authority at the highest levels (such as in central ministries) leads to delays and inefficiency, disempowering officials at lower levels.
Example: In the case of the Swachh Bharat Mission, delays in fund disbursements and approval processes at the central level slowed the pace of implementation at local levels.
Fact: According to the Centre for Policy Research (CPR), centralized planning during the COVID-19 pandemic resulted in delayed procurement of medical supplies and equipment, hampering response efforts at the state and district levels.

4. Accountability Issues

Issue: Lack of clear accountability structures leads to inefficiency, passing the blame, and lack of ownership for projects.
Example: The collapse of a flyover in Kolkata in 2016 revealed a lack of accountability across multiple agencies involved in infrastructure projects, with no one entity taking responsibility.
Fact: A 2017 CAG report pointed out a lack of accountability in the Public Distribution System (PDS), leading to large-scale pilferage and inefficiencies in food grain distribution.

5. Multiplicity of Agencies

Issue: The existence of too many agencies with overlapping roles creates confusion and inefficiency in governance and policy implementation.
Example: In the energy sector, the Ministry of Power, Ministry of New and Renewable Energy, and the Central Electricity Authority have overlapping jurisdictions, causing delays in achieving renewable energy targets.
Fact: The ARC highlighted that fragmented agencies in sectors like healthcare (such as the Ministry of Health and Family Welfare and state health departments) complicate the rollout of national programs like Ayushman Bharat.

6. Lack of Coordination

Issue: Poor coordination between central and state governments, ministries, and agencies leads to poor execution of policies and programs.
Example: The Pradhan Mantri Awas Yojana (Urban) suffered in some states because of lack of coordination between state housing boards and central authorities, resulting in delays in housing delivery.
Fact: In 2016, the central and state governments struggled to align on forest rights policies, resulting in conflicts between development projects and environmental regulations.

7. Skill Deficiency and Lack of Specialization

Issue: Civil servants often lack the necessary domain expertise, limiting their ability to effectively formulate and implement policies.
Example: In sectors like healthcare, IAS officers without prior experience in public health often head crucial departments like the Ministry of Health, impacting policy formulation and implementation, as observed in the initial stages of the COVID-19 crisis.
Fact: A World Bank report pointed out that India ranks low in terms of specialized bureaucratic expertise compared to other emerging economies, leading to ineffective administration in sectors like agriculture and finance.

8. Outdated Personnel Policies

Issue: Rigid recruitment and promotion policies, based largely on seniority rather than merit, discourage talent and innovation.
Example: The delayed implementation of police reforms is often attributed to the lack of younger, more innovative officers in leadership roles due to the rigid promotion system in Indian Police Services (IPS).
Fact: A report by the Indian Institute of Public Administration (IIPA) noted that outdated personnel policies prevent lateral entry of specialists, limiting new ideas and expertise in governance.

9. Weak Inter-Ministerial Communication

Issue: Communication gaps between ministries slow down policy execution, project implementation, and crisis management.
Example: In the aftermath of Cyclone Fani (2019), delays in coordination between the Ministry of Home Affairs and Ministry of Power delayed power restoration efforts in Odisha.
Fact: According to a report by the NITI Aayog, poor communication between the Ministries of Railways, Urban Development, and Transport caused delays in metro projects across multiple cities.

Recommendations

1. Functional Restructuring

Recommendation: Ministries and departments should be restructured to eliminate redundant functions, clarify roles, and improve efficiency.
Example: Merge ministries with overlapping functions—such as combining the Ministry of Power and Ministry of New and Renewable Energy—into a single entity responsible for energy security.
Fact: The UK undertook similar restructuring efforts by merging several smaller departments into the Department for Business, Energy & Industrial Strategy (BEIS), significantly improving policy coherence and resource management.

2. Delegation of Powers

Recommendation: Decision-making powers should be decentralized to empower lower-level officials and improve responsiveness.
Example: State-level authorities should have more autonomy in project execution, such as granting district magistrates the authority to approve funds for small-scale rural infrastructure projects.
Fact: In Brazil, decentralization reforms allowed local governments to independently manage healthcare projects, leading to improved service delivery in remote areas.

3. Strengthening Accountability Mechanisms

Recommendation: Establish clear accountability frameworks with defined roles and responsibilities for each level of government.
Example: Introducing a system where officials are held accountable for project outcomes, with performance audits by independent bodies like the Comptroller and Auditor General (CAG).
Fact: In Singapore, public sector officials undergo regular performance reviews, with clear accountability for lapses, resulting in one of the most efficient bureaucracies globally.

4. Integrated Departments and Agencies

Recommendation: Consolidate departments and agencies with similar functions to improve coordination and reduce duplication.
Example: Integrating all road transport agencies under the Ministry of Road Transport and Highways to ensure smooth policy formulation and implementation.
Fact: Canada’s government restructured its transport and infrastructure agencies, streamlining processes and reducing administrative overlap.

5. Coordination Mechanisms

Recommendation: Institutionalize better inter-ministerial and inter-departmental coordination mechanisms to ensure policy coherence.
Example: Creating empowered groups of ministers (EGoMs) for critical sectors like health and infrastructure, ensuring faster decision-making.
Fact: The creation of the U.S. Department of Homeland Security merged multiple agencies, leading to better coordination in national security and disaster response.

6. Specialization in Civil Services

Recommendation: Encourage civil servants to develop sector-specific expertise by providing opportunities for lateral entry and specialized training.
Example: Introducing lateral entry for professionals with expertise in sectors like health, education, and finance to lead specific ministries or departments.
Fact: In France, the École Nationale d’Administration (ENA) trains public servants in specialized fields before assigning them to relevant departments.

7. Revamping Personnel Policies

Recommendation: Reform the recruitment and promotion systems to prioritize merit and performance over seniority.
Example: Introducing a fast-track promotion system for high-performing officers in the civil services, based on annual performance appraisals.
Fact: New Zealand reformed its civil services in the 1980s by introducing a merit-based system, which significantly improved government efficiency and innovation.

8. Strengthening Training and Capacity Building

Recommendation: Provide continuous, high-quality training to civil servants to build their capacity in management, leadership, and domain-specific skills.
Example: Establishing a National School of Governance to provide training to civil servants in emerging areas like cybersecurity, urban planning, and disaster management.
Fact: Singapore’s Civil Service College regularly updates training curricula to ensure that public officials remain at the cutting edge of policy innovation.

9. Use of Technology

Recommendation: Leverage technology to streamline decision-making, improve communication, and enhance service delivery.
Example: Expanding e-governance initiatives like the Government e-Marketplace (GeM) to enable quicker procurement processes for public-sector projects.
Fact: Estonia is a global leader in e-governance, with nearly all public services available online, reducing bureaucratic delays and improving transparency.

10. Establishment of Independent Regulatory Agencies

Recommendation: Set up independent regulatory agencies in key sectors like energy and transport, reducing political interference and ensuring operational efficiency.
Example: An independent agency to oversee the telecom sector would ensure transparent policy formulation, free from political influence.
Fact: The Federal Energy Regulatory Commission (FERC) in the U.S. regulates energy sectors independently of government control, ensuring more efficient energy policies.