Tuesday, 3 February 2015

NITI Aayog, You and Me….


NITI Aayog, You and Me…. 

The government of India constituted the NITI Aayog. NITI Aayog replaces the 65 year old planning commission.  NITI is a Sanskrit word that loosely translates as ‘policy’. The government has aptly given NITI an appropriate long form. National Institution for Transforming India. I am not sure if it’s the other way round. Long form condensed into an acronym.  Anyways, the point is now we have the NITI Aayog.

As the Chairman of the Aayog, our Prime Minister Mr. Narendra  Modi  kick starts the first meeting of NITI Aayog on 6th February 2015.

So what should be different with the NITI Aayog compared to the planning commission that we had for good 65 years? 

Here are the three things that may not only differentiate but have a positive influence on the people of our country.



1.       Identifying the real definition of GDP :

GDP or Gross Domestic Product is a measure of gross economic activity. This really does not differentiate between a good activity and a bad activity. The GDP looks at the value, not worth. As the famous economist Tim Harford puts it, ‘a Brazilian wax may have the same value as the cost of a week’s food for a poor family’.

 

a.       What money can’t buy :

Philosopher Michael Sandel explains in his book What money cannot buy that many things that produce goodness in people’s lives such as dignity, trust in one’s neighbors and a sense of fairness are not measurable in money terms. Therefore they are excluded from GDP calculations.

Measuring quantitative things itself is difficult at a macro level. So if we add qualitative aspects like dignity, trust etc, it will be even more difficult to have a score or a number that is comparable.

 

b.      The economics of innocent fraud :

John Kenneth Galbraith writes in The economics of innocent fraud, ‘Good performance is measured by the production of material objects and services. Not education or literature or the arts but the production of automobiles, including SUVs…The best of human past is the artistic, literary, religious and scientific accomplishments that emerged from the societies where they were the measure of success.’
 

Integrating quantitative and qualitative aspects to measure the real progress should be an important task on NITI Aayog’s agenda. 

2.       Education :

The first education policy in India came in 1968. This document established 10+2+3 education model. We got the second policy in 1986 that focused on access and equity. For the last 29 years now there is no new education policy in our country whereas there has been a fundamental shift of what is required in terms of knowledge and skills.

The government has recently outlined a vision for education policy.  The broad contours of this policy under 33 themes are uploaded on www.mygov.in .

 

Some of the framework points are:

a.       Internationalisation of higher education

b.      Public-Private partnership in higher education

c.       Improving quality of education

d.      Outcome based teaching-learning model in elementary schools

NITI Aayog needs to play an important role in ensuring that the framework is robust enough to take care of current and future knowledge and skill requirements.

3.       Financial Inclusion :

We hear stories of money being borrowed at 5% per month by a sahukaar (money lender). There are many movies depicting this pain where the borrower spends (and sometimes ends) his life servicing the debt.  Jan Dhan Yojana is a big and important step that can curtail this to a large extent. The Aayog needs to chart the future course so that it creates a win-win for the account holder as well as the banks or financial institutions.

 

In a nutshell, we need a balanced score card for measuring the progress of our nation and our countrymen.

 

NITI Aayog will do a great job if it creates one. In the real sense then it will be an institution for transforming India.

 

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