This paper discusses the dynamics of economics, politics, and governance and its implications for the Indian economy in general and the governance issues of educational institutions in particular. Independent India was founded on a democratic framework and an operational governance structure. The vision was to attain the specific economic and social goals that the country had set for itself. What is puzzling is the fact that despite the ideal combination of economics, politics, and civil service, the expected results were not achieved. What might have happened is the development of a substantial gap between the economically sound and the politically feasible policies, on the one hand, and the disharmony between the different levels of the administrative machinery, on the other. The author agrees with the renowned economist, Hanson, who found an answer to the problem not in the theory of planning or the people making the plans but with the unrealistic assumptions about the likely responses of the people. For instance, it was assumed that the people elected to power, the citizens of the country, and the labour and management of the public enterprises would all work selflessly to achieve the economic objectives of the country. In reality, however, regional and sectional interests dominated the political and economic decisions making the Indian economy self-centric, narrow, and wasteful. The channelization of economic benefits to the special interest groups led to the lop-sided distribution of wealth. To add to this was the political corruption which was accepted as an unavoidable feature of the electoral process. Another blow came from the public sector enterprises which, instead of generating public savings, led to the accumulation of internal public debt and lower investment. What is unfortunate is that all this continued for a long time despite the realization that they were going against the basic assumptions of the post-Independence policy framework. Taking the issue of fee determination in the case of IIMs, the author feels that it is again a complex interplay of the three elements - economics, politics, and governance. The economic issue from the public policy point of view is: why the larger subsidy from public funds and for whose benefit? While it is a popular political move to grant subsidies, it is a matter of conscious political choice as to which target group should get the benefit. Towards making India's vision a reality, the author suggests the adoption of pragmatic and flexible approaches with the contemporary realities in mind. The steps would include: simplifying administrative procedures managing fiscal deficit through fiscal policy changes ensuring accountability through legal reforms avoiding bureaucratic interference eliminating administrative discretion While a lot needs to be done in all these areas, the author is confident that with the economic potential of the country and the innate ability of the people of this country, it would definitely be possible to realize the full potential within the next two decades.
Catalan brinkmanship tool for political rivalry in Spain
