Existing laws provide the political executive with the means to make bureaucrats more accountable and efficient. To illustrate, the All India Service Rules provide for compulsory retirement of substandard bureaucrats after 15 years of service. This provision rules out the pitfalls which come with a guaranteed job for life, but unless it is utilised deadwood will stay on. A government which utilises this provision can invoke the support of the judiciary. The Supreme Court concluded, as far back as 1980, that compulsory retirement “is undoubtedly in the public interest and is not passed by way of punishment”. Similarly, successive pay commissions have pointed out that performance must influence pay for bureaucrats. The Seventh Pay Commission recommended the introduction of performance related pay for all categories of government employees.
If lifetime guarantees of a job and pay make for poor incentives, so do threats of prosecution for the wrong reasons. A considerable extent of developmental activity initiated by government is carried out through the private sector. Presumably, no private firm will bid for a contract unless there is profit. In this background, the existing law to prevent corruption needs an overhaul. According to the Prevention of Corruption Act, taking a decision which benefits somebody can be deemed an act of corruption even in the absence of evidence of a quid pro quo. This is a draconian provision which deters decision making and incentivises inaction. Bureaucrats who pursue their task with sincerity are not protected from irresponsible investigations long after retirement.
Since 2013, governments have tried to amend the law by bringing it into consonance with contemporary reality. It should not be difficult to pass this amendment as Congress and BJP are on the same page. Today there are sticks for good performance and carrots for poor performance. Turn babudom around by ensuring just the reverse is the case.
(Source: Editorial in The Times of India dated 29-01-2016)