Reform of the Public Services in Pakistan [1 ed.] 9781608764822, 9781604565287

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Copyright © 2008. Nova Science Publishers, Incorporated. All rights reserved.

Copyright © 2008. Nova Science Publishers, Incorporated. All rights reserved.

REFORM OF THE PUBLIC SERVICES IN PAKISTAN

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REFORM OF THE PUBLIC SERVICES IN PAKISTAN

Copyright © 2008. Nova Science Publishers, Incorporated. All rights reserved.

SOHAIL MAHMOOD

Nova Science Publishers, Inc. New York

Copyright © 2009 by Nova Science Publishers, Inc. All rights reserved. No part of this book may be reproduced, stored in a retrieval system or transmitted in any form or by any means: electronic, electrostatic, magnetic, tape, mechanical photocopying, recording or otherwise without the written permission of the Publisher. For permission to use material from this book please contact us: Telephone 631-231-7269; Fax 631-231-8175 Web Site: http://www.novapublishers.com

NOTICE TO THE READER The Publisher has taken reasonable care in the preparation of this book, but makes no expressed or implied warranty of any kind and assumes no responsibility for any errors or omissions. No liability is assumed for incidental or consequential damages in connection with or arising out of information contained in this book. The Publisher shall not be liable for any special, consequential, or exemplary damages resulting, in whole or in part, from the readers’ use of, or reliance upon, this material. Independent verification should be sought for any data, advice or recommendations contained in this book. In addition, no responsibility is assumed by the publisher for any injury and/or damage to persons or property arising from any methods, products, instructions, ideas or otherwise contained in this publication. This publication is designed to provide accurate and authoritative information with regard to the subject matter covered herein. It is sold with the clear understanding that the Publisher is not engaged in rendering legal or any other professional services. If legal or any other expert assistance is required, the services of a competent person should be sought. FROM A DECLARATION OF PARTICIPANTS JOINTLY ADOPTED BY A COMMITTEE OF THE AMERICAN BAR ASSOCIATION AND A COMMITTEE OF PUBLISHERS.

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LIBRARY OF CONGRESS CATALOGING-IN-PUBLICATION DATA Mahmood, Sohail. Reform of the public services in Pakistan / Sohail Mahmood. p. cm. Includes index. ISBN 978-1-60876-482-2 (E-Book) 1. Public administration--Pakistan. 2. Civil service reform--Pakistan. 3. Administrative agencies-Pakistan--Management. 4. Pakistan--Politics and government--1988- I. Title. JQ629.A58M345 2008 352.3'67095491--dc22 2008013241

Published by Nova Science Publishers, Inc. ҂ New York

CONTENTS

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Preface

vii

Chapter 1

Background

1

Chapter 2

Past Initiatives During the Second Nawaz Government (1997-1999)

11

Chapter 3

Civil Service Reforms

13

Chapter 4

Musharraf Regime’s Reform Agenda

17

Chapter 5

Consolidation in the Functions of Federal Government

25

Chapter 6

More Experimentation Imperative

31

Chapter 7

The Establishment of Services on the Basis of Functions Only

33

Chapter 8

Need for Decentralized Recruitment Mechanisms

35

Chapter 9

Need for Ending Over-lapping Jurisdictions

37

Chapter 10

Merger of the Federal Shariat Court into the Supreme Court

39

Consolidation of Development Finance Institutions (DFIS) will Establish Better Delirium Metchnikov

41

Chapter 12

Emphasize Human Development

43

Chapter 13

Reform of the Education Sector

45

Chapter 14

Higher Education Reform: Future Agenda

51

Chapter 11

vi Chapter 15

Reform of the Civil Service

59

Chapter 16

A Modernisation Program of the Services of the Government of Pakistan

89

The National Public Service Modernization Unit (NPSMU)

91

Chapter 18

The NPSMU Work Plan

95

Chapter 19

The Principles of Total Quality Management

111

Chapter 20

New Strategies

117

Chapter 21

The Censorship Policy Issue

123

Chapter 22

Cluster Councils

125

Chapter 23

Areas of Urgency

137

Chapter 24

The GOP Quest for an Islamic Ethical Paradigm

149

Chapter 25

The New Code of Ethics

153

Chapter 17

Index

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Contents

155

PREFACE

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Pakistan, after fifty-nine years of existence, is at a historical crossroads. The country faces an acute crisis of governance. Problems with the administrative setup include poor planning, waste, mismanagement, inefficiency and the absence of a work ethic. Malfunction was the norm not the exception in the bureaucratic structure of the country. Excessive discretionary powers, overlapping of jurisdictions and the absence of clear-cut demarcations of authority and administrative control had weakened government performance. The gap between policy-making and policy-execution was wide partially due to weaknesses in the bureaucracy and the generally low quality of state personnel. Independent observers agree that the overall performance of the GOP was poor or lackluster at best. The crisis of governance in Pakistan mainly stems from a deficient federal setup and over centralization of power in the national government. The World Bank, among others, believes that Pakistan had suffered due to rampant corruption and weak government that had created serious economic imbalances.

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Chapter 1

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BACKGROUND Pakistan, after fifty-nine years of existence, is at a historical crossroads. The country faces an acute crisis of governance. Problems with the administrative setup include poor planning, waste, mismanagement, inefficiency and the absence of a work ethic. Malfunction was the norm not the exception in the bureaucratic structure of the country. Excessive discretionary powers, overlapping of jurisdictions and the absence of clear-cut demarcations of authority and administrative control had weakened government performance. The gap between policy-making and policy-execution was wide partly due to weaknesses in the bureaucracy and the generally low quality of state personnel. Independent observers agree that the overall performance of the GOP was poor or lackluster at best. The crisis of governance in Pakistan mainly stems from a deficient federal setup and over centralization of power in the national government. The World Bank, among others, believes that Pakistan had suffered due to rampant corruption and weak government that had created serious economic imbalances. During a visit to Pakistan in October 1997 James Wolfensohn had publicly stated these faults in the country’s economic and political system.1 Essentially Pakistan’s crisis of governance is emanating from a failed administrative system. Problems with the administrative setup include: poor planning, waste, mismanagement, inefficiency and the absence of a work ethic. Malfunction was the norm not the exception in the bureaucratic structure of the country. Overlapping of jurisdictions and the absence of clear cut demarcations of authority and administrative control had wrecking havoc with government performance. Independent observers agree that the overall performance of the 1

Dawn, October 27, 1997.

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Sohail Mahmood

Government of Pakistan was poor or lackluster at best. Government restructuring was haphazard and ill-planned. During the second Benazir rule the Prime Minister’s Secretariat seemed to be the only functioning institution in the Government. Over-centralization of powers in the hands of the prime minister had also made matters worse. We believe that this had happened because of the arrogance and egocentric personality of Benazir. She wrecked the efficient and orderly working of the government at all levels. The Government apparatuses were still in a mess with no easy solution in sight. We believe that a careful study of the problems of governance may yield insights of what was wrong in government and why? We highlight the most salient issues. The restructuring of the system of government was the need of the hour. Pakistan needed a much better administrative setup to fulfill the demands of sustainable development for the benefit of the people. The GOP had formulated a vision of good governance under a new reform program, which seeks to create a new partnership between the government, the private sector and the citizens. A government, small but effective, decentralized, responsible, customer oriented and professional was reinvented. A paradigm shift from infrastructure creation to knowledge creation and its utilization was envisaged. The GOP wishes to create a new politics, clean, stable, decent, and based on respect for the Opposition, for business, for the mass media, for academia and civil society institutions. A new economy to transform the inward-oriented, state driven, low- tech production structure into a dynamic outward-oriented, technologically competitive, partnership-based system driven by market and quality concerns. A new society characterized by the Islamic values of honesty, caring, innovation, team-play, duty, tolerance, respect, courtesy, excellence, quality, discipline and trust. Improvement in governance was not something new to Pakistan. Since independence, as many as 26 commissions and committees had looked into the issue. While recommendations of these committees and commissions did make a difference in some areas, there were still structural flaws that need to be addressed. Common themes recurring in the reports of the committees and commissions were: i)

Corruption: Because of the discretionary power at various levels of government, unfair considerations, motivated by illegitimate financial transactions or political and personal favors creep in. ii) Inefficiency: Public institutions fail to adequately provide law and order, justice, education, health, civic services and public utilities. Those

Reform of the Public Services in Pakistan

iii)

iv)

v)

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vi)

3

responsible for running these institutions perceive themselves as rulers and regulators rather than service providers and accountable to their clients. Ineffectiveness: State institutions become ineffective when it comes to meeting new challenges thrust upon society by changing local and international environment, new technology, social climate and expectations. Inaccessibility: The system was not participatory and the plans and policies were formulated without consulting those who were affected by those policies. Intractability: The public sector had grown out of proportion. It operates in areas which should be left to the private sector and even within its own legitimate areas of operations it can operate with a leaner strength. Lack of motivation and incentives: The incentives and motivations offered by the public service system do not attract the best people. It does not motivate them to improve personal skills or to work towards excellence.

In 1997, the GOP had set up a Commission for Administrative Restructuring (CAR) to recommend measures for the restructuring and rightsizing of the civil service. The CAR had reviewed the staff strength of all federal ministries and divisions for the purpose of rightsizing, professionalization, and corporatization. The CAR exists even today but was inactive for unknown reasons. The provincial governments were also engaged in number of initiatives for the promotion of good governance and institutional reforms. These initiatives had strong support and commitment of the federal government. Close inter-linkages between the GOP and the provincial governments were expected in the future in the form of counterpart good governance unit at the provincial level. Bad governance by previous regimes had resulted in the breakdown of the service delivery system. The public service did not have an adequate responsive mechanism to cater to the needs of the society. The GOP wishes to make a public sector performance oriented, efficient, effective and responsive to public needs. It also wanted to build a collaborative mechanism of governance between stakeholders and citizens. The GOP aimed at creating a public service that not only fulfills the demands of citizens but was also capable of meeting the requirements of the coming century. A wide range of reform and re-engineering of the public administration system was required. The GOP will carry out the task with great earnest. The implementation of the reform program will involve comprehensive planning and a reasonable time period. The main emphasis was on

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Sohail Mahmood

improving standing mechanisms and finding more effective ways of enforcing these mechanisms. Pakistan suffers from a crisis of governance. The efficiency and effectiveness of government departments were getting worse not better, with very few exceptions. The need for re-engineering the system of governance is being felt by many in Pakistan. It is unanimously agreed that the existing system is failing to deliver the services demanded by the public. Every one acknowledges this stark fact. Perhaps, never in the history of Pakistan had public perceptions been so negative about the bureaucracy. Problems had piled upon each other with no quick solution in sight. Obviously, there is some use of hyperbole in the print media that adds to public frustration and anger at government agencies. Nevertheless, public frustration is real and increasing. To its credit, the regime had somewhat stemmed the tide of bureaucratic malfunction. Having realized that there is no magic bullet or quick fix to Pakistan's governance problem, the Government had decided to tackle the issue in a serious and systematic manner. Fifty years of government mess is not easily ended. The central plank of good governance efforts is the reform of the civil service system. Essentially, this is seen as prerequisite for public sector reforms. However, civil service reforms were notoriously difficult to undertake. This is not unique to Pakistan. In the Developing countries, many international donors' agencies had come to emphasize reform in this area. These multilateral agencies were emphasizing that governance is the essential issue in project aid. For example, USAID had noted that "the finest planning and budgeting system in the world were of little use, if there were not quick and accurate means to track progress and to know the relationship between the planned events and actual events".2 The newly set up National Reconstruction Bureau (NRB) is working on a practical plan to overhaul the entire administrative machinery. The work of the NRB suffers from being a somewhat closed affair. It had been asked to ensure that unnecessary duplication of government tasks will end. Thus, the military regime is moving in the right direction. Lack of accountability had resulted in corruption of horrendous proportions, threatening the very basis of our society. The term “Ehtesab” had been abused to such an extent that it had lost its meaning. There is thus a need to reestablish faith in the process of accountability. No one disagreed with the General on this observation. However, the question is what the military regime intends to do about the problem? It hopes to tackle fundamental problems in a systematic way. One might take for granted the fact that the revamping of the 2

"The Effectiveness of Aid to Pakistan" (Islamabad: Economic Affairs Division, Government of Pakistan and UNDP, 1990) 1 A.9.

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Reform of the Public Services in Pakistan

5

civil service system had become necessary for a quick revival of the economy. The civil service system in the central government needs to be restructured for the purpose. The performance of the state bureaucracy is not as could be expected because of some existing structural flaws and bad working practices acquired over time. The Musharraf regime should pursue civil service reforms in all earnest. What is wrong with Pakistan’s civil service? The civil service had an overly centralized organizational structure. It is slow, ineffective, rigid and unimaginative. Discipline is lax and rules were not evenly enforced. Internal mechanisms of accountability had weakened over time. External accountability via parliament and the legal system had become ineffective. With time, professionalism had eroded. Politicization of the civil service and political interference had reduced the effectiveness of state machinery. The bureaucracy had simply not kept up with the modernization trends in other advanced countries. Pakistan faces a crisis of weakening state capacity and poor public sector management. There is a crying need to increase effectiveness and efficiency of its administrative system. What is the problem with the bureaucratic setup? Even after more than fifty-nine years of independence, the civil service had not been able to come out of the shadows of the colonial era. Colonial administration focused on law and order, the extraction of taxes, and export of primary commodities. The social and economic needs and desires of the ‘native’ population attracted minimum concern. Power was vested in the hands of small elite. Although, the colonial legacy varied from country to country a common set of features can be identified: ambiguity about the roles and relationship of politicians and public administrators; a tradition that senior civil service appointments should be allocated to generalist administrators, rather than to those having technical backgrounds; relatively high level of non-salary compensation for middle and senior level officers (for example free or highly subsidized housing); limited consultations with the public and little recognition for a role of the media; a reluctance to provide information to those outside of the administration; an emphasis on written communication and processing paper; an undue emphasis on the role of the office, rules and procedures rather than accomplishment of assigned tasks. To some extent, the colonial style of administration is still in vogue in Pakistan. Thus, we were behind the times. This state of affairs is tragic. Several previous attempts at reform failed to make a difference. Red tape and mal-administration is now legendary in public administration. The requirements of the contemporary era dictate the need for establishing an effective and efficient public administration. Pakistan had a weak administrative apparatus. Problems with the administrative setup include poor planning, waste, mismanagement, inefficiency, and the absence of a work ethic.

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6

Sohail Mahmood

Malfunction is the norm and not the exception in the bureaucratic structure of the country. Overlapping of jurisdictions and the absence of clear-cut demarcations of authority and administrative control had wreaked havoc with GOP performance. Independent observers agree that the overall state performance is poor or lackluster at best in all regions of Pakistan. The State restructuring efforts had been largely haphazard and ill-planned. Nearly all the state apparatuses were still in a mess with no easy solution in sight. All observers also agree that bureaucratic red tape in the civil service is legendary. People were sick and tired of administrative inefficiency, unresponsiveness, and arrogance. The World Bank, among others, had noted that the country faces problems, which includes the waning effectiveness and capacity of public institutions and weakness of local governments and other civil society organizations. These factors had severely reduced the effectiveness of public expenditures, undermined macroeconomic management, debilitated the environment, and worsened the other structural problems.3 Public frustration is real and increasing. The need for re-engineering the public service system is being felt by many in Pakistan. State performance is not as expected because of some existing structural flaws and bad working practices acquired over time. Honesty, integrity, and hard work were not sufficiently rewarded. Previously, unprecedented political interference in normal routine affairs of the government services badly hurt state performance. The existing state system in all regions of Pakistan had failed to deliver the myriad services demanded by the public. A careful study of the problems of governance may yield insights of what is wrong and why? However, a detailed analysis is beyond the scope of the present study. The Musharraf regime was prepared to launch a major institutional reform initiative to introduce accountability in the administration. It is keen to provide information that is previously denied to the public. This was to ensure accountability and transparency in its administrative system. The regime realizes that the ongoing planned interventions had to be designed and implemented within a strategic framework of reform initiatives. The military regime realizes the immensity of the problem. It is now in the process of studying the problems in some organized fashion. Thus, a beginning had been made. This should have been done years back though. Nonetheless, it is never too late. To its credit, the military regime had somewhat stemmed the tide of bureaucratic malfunction in Pakistan. Nevertheless, much more needs to be done. We were actually racing against time. Given the dismal state of affairs, a reform process must be immediately accelerated. The military regime’s main objective should be to urgently train 3

Country Brief: Pakistan (World Bank web page)

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Reform of the Public Services in Pakistan

7

government officials who can help create the conditions that shall assure Pakistan’s appropriate response and adaptability to new and unforeseen changes looming across the horizon. For the operation of an effective, efficient, and responsive public service, a wide range of reforms is needed. Several civil service reform commissions had done valuable work in the past. They may be urgently reviewed to find out what can be done immediately. The GOP had formulated a strategic reform agenda in the following areas: Having realized that there was no magic bullet or quick fix to Pakistan's governance problem, the GOP decided to tackle the issue in a serious and systematic manner. Fifty-two years of government mess was not easily ended. The central plank of good governance efforts was the reform of the civil service system. Essentially, this was seen as prerequisite for public sector reforms. However, civil service reforms were notoriously difficult to undertake. This was not unique to Pakistan. The GOP was convinced that the people themselves were the most important stakeholders of the whole effort. The GOP aimed at creating public services that not only fulfills the demands of common man but was also capable of meeting the requirements of the coming century. A wide range of reforms and re-engineering of the public service was required. The task was not easy, however. The implementation of the reform program required comprehensive planning and a reasonable gestation time period. The main emphasis was to be on improving standing mechanisms and finding more effective ways of enforcing these mechanisms. It bears repetition that all previous plans suffered most, not at the policy-level, but, at the implementation stage simply because the people were not involved in the decisions that were significant to them. It was reiterated that no valid design of a good governance model can be created that possibly might last very long. Such was the pace of change in our lives. Good governance was a very complex issue. The isolation of citizens from the significant process of government policy-making needed to be ended. The fundamental philosophy of GOP was based on a number of premises. Firstly, Pakistan needed to quickly change if it did not want to go down in the dustbin of history. Remember that the ability to adapt to changes in the global environment was seen as the most important determinant of national survival. Certainly, The GOP did not wish to jeopardize the nation’s future by taking hasty decisions today. For that reason decision-making at the top of organizations had to be democratically organized. Secondly, for relatively simple tasks in a stable environment, authoritarian centralized leadership meant that tasks were done faster and more effectively. But where flexibility and openness towards new ideas and tasks were required, tasks,

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Sohail Mahmood

which require a certain group loyalty, democratic structures, were far superior. The GOP believes strongly that the past top-down approach needs to be modified with a vital bottom-up segment duly incorporated. Citizens had the right to participate in all significant decisions affecting their lives. Democracy demanded it. Thirdly, modern organizations and modern societies were organized analogously to the system of science. Gaining and distribution of information was the central activity of these organizations. Decision-making was being done within organizations by majorities and not by compulsion. Teamwork was the central characteristic of the democratic form of organization. Self-responsibility and self-initiative was therefore to be promoted. A scientific bent of mind extolling research, analysis, and rationality was urgently needed. The Muslims had once excelled in science and technology in the Middle Ages and could do so gain. Pakistan was to be the laboratory of modern Islam. Fourthly, public backing for the reforms efforts had to be sought before any grand tinkering with the design was made. Without public backing of government initiatives, the chances of success were slim. Many reform efforts in the past failed because there was no institutional home for reformers. Corresponding support from civil service groups did not back the government efforts. Thus, the public was to be involved as a significant stakeholder in the whole reform process. In the past, there had been several national reform efforts, some of which were overlapping at best, and conflicting at worst. Public perception had increasingly become negative. Fifthly, the GOP believes that without institutionalization and accountability, haphazard efforts were bound to fail. Many developing countries were trying very hard to improve efficiency, transparency and accountability of their personnel and administrative machinery. What were the causes of government failures? The issue was debated earnestly the world over. There were no “great men” any more. Men who always knew everything or could do everything better. For modern societies, the concentration of power in one person or uncontrolled elite was extremely dangerous. Since wrong decisions were more probable. The GOP’s main objective was to urgently train government officials who could help in creating the conditions that assured Pakistan’s appropriate response and adaptability mechanism to new and unforeseen changes looming across the horizon. Sixthly, the GOP believes that Pakistan couldn’t fail in the modernization venture. The GOP was committed to establish efficient, responsive, and effective administrative machinery capable of delivering high quality public services. It aims at institutionalizing a culture of excellence in the civil service, and in

Reform of the Public Services in Pakistan

9

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building a sustainable capacity in the public sector. The GOP strives for the creation of a public sector, which not only meets the demands of citizens, but was also capable of meeting the challenges of the 21st century. The GOP seeks to create a new partnership between itself, the private sector and citizens. Effective implementation of the reform strategy was a function of a careful analysis, comprehensive planning, sequencing, and a reasonable gestation period. The plan was composed of the following strategic programs.

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Chapter 2

PAST INITIATIVES DURING THE SECOND NAWAZ GOVERNMENT (1997-1999)

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The Commission on Administrative Restructuring (CAR), established in 1997, had reviewed the size of the government. In state-owned financial entities, some 23,000 personnel were laid off and more than 650 non-performing branches were closed. A major cost reduction program was initiated with mandatory and voluntary retirement schemes in PIA under which 3,600 redundant employees left the organizations. Top management positions were also cut substantially. Cost cutting measures also included closing down of stations, outsourcing of functions, reducing operational waste and increasing productivity. Sui Southern Gas Company also removed 525 workers. The GOP was committed to restructure the civil service and had recently taken an initiative in that direction. The World Bank welcomed the GOP's commitment to retooling the public sector and carried out a study of civil service issues as a basis for helping the government design the reforms it had committed to under Policy Framework Paper. The report finalized in September 1998, covered the following five core areas which according to the World Bank required comprehensive reforms: (a) (b) (c) (d) (e)

Personnel and Wage Bill Management, Improving Performance and Accountability, Downsizing and obtaining new Skills, Devolution, Compensation Reforms.

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Sohail Mahmood

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Five technical committees were set up one for each core were to examine the World Bank's recommendations in detail and suggest various reforms keeping in view the social and economic and political conditions of Pakistan.

Chapter 3

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CIVIL SERVICE REFORMS Pakistan, like the rest of the world, is caught in a new era that was characterized by high rate of change. Governments had to keep pace with the great sea of changes enveloping them. These changes were taking place everywhere. These changes, highly complex in nature, had created enormous problems for all systems of governance, especially in countries like Pakistan. Government systems can age and become irrelevant for the purpose of solving current problems, or in benefiting from opportunities available of late. Pakistan, for example, was one such political system. Re-structuring of entire administrative systems was the need of the hour. We can learn from mistakes committed by others. Many countries had progressed remarkably in the march of re-engineering government systems. Experiments in altering public sector institutions had employed different institutional models. Re-engineering government involves restructuring public organizations and civil service systems. Organizational sizes, purposes, incentive assemblages, accountability procedures, authority distribution patterns, even organizational culture was changed. In order to achieve efficiency, effectiveness and fairness in public organizations fundamental change was required. Plus, these changes must be undertaken in such a manner that ensures the development process remains unhampered by lapses and shortcomings in present administration structures. There was a general apprehension that good governance requirements were not being met. The contemporary challenge was to formulate a reform strategy in which sequencing and prioritization were carefully laid out in advance. For example, goals, objectives and performance criteria of government agencies must be elaborated before any structural change was incorporated in the design of the system. Then, only a few critical agencies had to be taken up for detailed reforms.

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Early success, though modest, was critical for building credibility of government reforms measures. The central plank of good governance efforts was the reform of the civil service system. Essentially, this was seen as prerequisite for public sector reforms. However, civil service reforms were notoriously difficult to undertake. This was not unique to Pakistan. The GOP recognizes the need to increase effectiveness and efficiency of its administrative system. Lack of timely, reliable and accurate information was considered as constraint in efficiency of government operations. The GOP was prepared to launch a major institutional reform initiative to introduce accountability in the administration. It was keen to provide information that was previously denied to the public. This was to ensure accountability and transparency in its administrative system. The GOP realizes that the on-going and planned interventions had to be designed and implemented within a strategy framework of reform initiatives. The efficiency and effectiveness of government departments were getting worse not better, with very few exceptions. Perhaps, never in the history of Pakistan had public perceptions been so negative about the bureaucracy. Problems had piled upon each other with no quick solution in sight. Obviously, there was some hyperbole in the print media that adds to public frustration and anger at government departments. Nevertheless, public frustration was real and increasing. The background of many evils present in the system was improper incentives and controls. A plan was needed to improve the functioning of the entire public sector. First, specific problems had to be identified. For example, in the area of finance they were highlighted as: • •

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• • • • •

Financial management was poor and needs to be revamped. Regulations for maintenance of discipline were not systematically enforced. Dictates of accountability require civil servants to abide by laws and regulations pertaining to finance and other public spending. The GOP had to ensure that funds were managed efficiently and in a productive manner. Performance audit was weak and needs to be reinforced. Knowledge and skill in financial management was poor. Effectiveness of Financial Management in Public Sector Agencies

How do implement reform measures? Known measures were introduced to enhance effectiveness of financial management in public sector agencies. For

Reform of the Public Services in Pakistan

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example, these efforts can focus on the implementation of improved budgeting, accounting, and management systems. The performance of the state bureaucracy was not as expected because of some existing structural flaws and bad working practices acquired over time. Honesty, integrity, and hard work were not sufficiently rewarded. Political interference in normal routine affairs of the government services had hurt performance. Moreover, sloppiness, and poor work habits were tolerated and no action taken against bad officers. As a result, performance had suffered.

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Chapter 4

MUSHARRAF REGIME’S REFORM AGENDA The following proposals were to be considered:

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1. CUT GOVERNMENT SIZE One of the peculiar characteristics of our age was the near universal growth of the public sector reflective of an increase in expectations of government performance. The administration of the state had extended over diverse functions and activities both economic and social. Generally, state budgets had also increased as a percentage of GDP. Was that necessarily bad or good? It was hard to say. In West Europe state budgets increased from around 10% of GDP at the beginning of the century to about 35% in the 1950s. Budgets further increased to about 45% in the 1980s.1 In the countries of the former Soviet Union the average government spending in 1992 was 45% of GDP but fell to an average of 29% in 1995.2 In West Europe state budgets increased from around 10% of GDP at the beginning of the century to about 35% in the 1950s. Budgets further increased to about 45% in the 1980s. In the countries of the former Soviet Union the average government spending in 1992 was 45% of GDP but fell to an average of 29% in 1995.In the case of Pakistan the federal budget had also increased considerably over the decades. The figure for fiscal 1992-93 was Rs292 billion. In 1993 the GNP of Pakistan was $43.3 billion and the budget expenditure totaled $8.3

1 2

Percy Allum, State and Society in Western Europe (Cambridge, MA: Polity Press, 1995), 359. “Temporarily tight in Tbilisi”, The Economist, Aug. 3, 1996, 70.

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billion.3 The state budget being 19.16% of GNP in that year. In 1995 the federal budget increased to Rs434.7 billion. In the current fiscal year of 1996-97 the federal budget totals Rs500.2 billion. It had since been reduced. It was a worldwide phenomenon that states were expected to deliver more and more in terms of job security and economic well being of citizens. Nearly all over the world the number of governmental departments or agencies had grown as a result of an enlarged state role. This happened in Britain, France, Germany and Italy, among other countries. In the USA the federal government employees some 3.12 million employees, only 3% of all gainfully employed civilians, but if local and state employees were added than the figure reaches 16%. The comparative figures for Great Britain and France for the early 1980s were lower at 6% and 15% respectively.4 The GOP like its counterparts elsewhere had also grown over the decades. The question was whether the increase in size of the state had benefited the people in terms of better services and more development of the country? Some were of the opinion that the GOP had become bloated and needs to be cut down to size. The caretaker government of Moeen Qureshi (1996-97) had reduced the number of governmental ministries/divisions from 46 to 34. The attempt to cut government size failed as the successor Benazir Administration decided to reverse the trimming of the federal government. Earlier, the GOP desired to reverse the trend of ever-expanding government machinery. In 1997, Hafeez Pasha, then Deputy Chairman Planning Commission, claimed that it was the first time in Pakistan that the GOP was putting all emphasis on reduction of non-development expenditures by reducing the number of divisions and ministries in the Pakistan federal government. Pasha was then heading a committee on downsizing, which had proposed reduction of ministries from 26 to 18. The committee had also recommended the merger of many departments and divisions. The IMF desired that the GOP remove at least 100,000 out of 275,000 state employees in order to achieve a substantial cut in the expenditure. By carrying out the unpopular exercise will save about Rs10 billion annually. Another estimate puts the saving at Rs15 billion. The problem of mushrooming of government ministries needs to be tackled. The Benazir Administration had added nine independent ministries. The divisions constituted or approved by the Administration included: Statistics Division, Culture Division, Minorities Division, Federal Investigative Division, Aviation Division, Zakat and Usher Division, Maritime Division, Human Rights 3

“Basic Facts”, Contemporary Issues in Pakistan, Saeed Shafqat, ed., (Lahore: Gautam Publishers, 1995), 11.

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Division, and Intelligence Bureau. The Revenue Division was abolished. This was the controlling ministry of the Central Board of Revenue. It was placed directly under the finance ministry.5 At the same time the Benazir administration had indicated its resolve of trimming and revamping the bureaucracy in order to make it more efficient and economical. The Chatta Commission, named after MNA Hamid Nasir Chatta who headed it, was looking into the matter. Recommendations had yet to be made public when the Benazir administration was removed. We believe that the said commission was mere eyewash. In fact, the second Benazir Administration had increased government expenditure. Waste, mismanagement and poor planning were the hallmarks of her second term. For example, a full-fledged Ministry of Investment was especially established for the first spouse. The Privatization Commission was turned into another full-fledged ministry. Why create more bureaucracies without any good reason? Bureaucracies once created were difficult to dismantle. A separate ministry for human rights was not at all needed. The Law Ministry could have handled the work. After all, the whole issue of human rights was part of the larger picture of citizen rights, which was a concern of the said ministry. Unnecessary state expenditures were hurting the nation. Efficiency of government operations depends upon the civil service, which was the core of any state administration. Highly trained and competent government servants were needed to carry out good and clean administration. It was indispensable that the employees of the civil service and other government departments be better paid than what was now the case. The GOP must gradually cut the size of the state bureaucracies and the savings realizes can be utilized to create a better-paid and trained state service. The trend in the Western countries seems to point towards a smaller state bureaucracy. For example, in Britain the civil service strength was cut from 732,000 to 541,800 from 1979 to 1994. Further cuts were planned. In Pakistan the total number of state employee’s number some 3.5 million. We can and should reduce it by a million or so in year or two. Why should the GOP downsize? A better-paid public service was the only way to boost sagging morale. Also, the government services should be protected from undue political pressures and interference. Government servants were given tenure so that they can remain neutral. GOP performance was not as expected because of some existing structural flaws and bad working practices acquired over time. Honesty, integrity, and hard work were not sufficiently rewarded. Political interference in normal routine affairs of the government services was 4

Austin Ranney, Governing: An Introduction to Political Science, 6th ed., (Englewood Cliffs, New Jersey: Prentice Hall, 1993), 303. 5 The News, October 7, 1995.

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Sohail Mahmood

unprecedented and hurts performance. We strongly believe that state employees do need the security of tenure in order to resist such unwanted political obstructions. This does not mean to suggest that sloppiness, disregard, and poor work habits should be tolerated. They should not. Strict disciplinary action was taken against all such employees who indulge in these practices. All we were suggesting was that outright dismissal of state employees by political heads without due process of law was made impossible. Nothing less that a constitutional amendment was needed to ensure this development. One of the peculiar characteristics of our age was the near universal growth of the public sector reflective of an increase in expectations of government performance. The administration of the state had extended over diverse functions and activities both economic and social. Generally, state budgets had also increased as a percentage of GDP. Was that necessarily bad or good? It was hard to say. The state should perform only vital functions and leave the rest for the private sector. But rather than cut government size, the earlier civilian administrations were adamant on increasing it, notwithstanding its public pronouncements. The result of the frequent and ill-planned changes in the state setup was surely to add to the difficulty of future governments. We wish to point out that there was inherently nothing decisively wrong or bad in adding administrative structures to the government provided there was enough justification. In 1984 Italy had 28 ministries, Britain 22, Germany 17, while France had a grand total of 42.6 At the federal level in Pakistan the administrative machinery mainly comprises of the ministries, divisions and directorates. A Minister heads a ministry while a Secretary heads a division. There were currently a total of 34 divisions in the federal government. Apart from the regular federal departments, there were a number of and statutory bodies like the Election Commission, AGPR, Wafaqi Muhtasib (Ombudsman), National Accountability Bureau, State Bank of Pakistan, Federal Public Service Commission, etc.; autonomous agencies like AGPR, PAEC, WAPDA; state corporations like PTCL, SNGPL, PIA, NFC, OGDC, PIDC, PMDC, Utility Stores Corporation, etc. The total number of federal employees, according to the 1996 census, was 662,000, which was 23% of total government employment. The total number of employees in the federal corporations was 424,073, which was 15% of total government employment. The grand total of public sector employees was 2.7 million.7 It was commonly argued that the crisis of governance mainly stems from centralization of power in the 6 7

Allum, State and Society in Western Europe, op. cit., 358. Dawn, May 24, 1999.

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Reform of the Public Services in Pakistan

21

federal government. The total number of provincial employees, according to the 1996 census, was 1.7 million, which was 61% of total government employment.8 Earlier, the GOP had announced a “Golden Handshake Scheme” to reduce the size of several government agencies. Only some 80,000 had applied for the early retirement scheme by October 28, 1997. The response had been poor. In October 1997, the GOP sacked some 7,500 employees of United Bank Limited (UBL), the second largest commercial bank in the country. Habib Bank Limited (HBL), the largest commercial bank in the country, and the huge Agriculture Development Bank of Pakistan (ADBP) announced its own retrenchment moves. The two banks retired 7,486 employees under their “golden handshake” scheme. It was believed that HBL’s retrenchment scheme was in some ways less harsh than UBL. National Bank followed suit. A popular reaction soon occurred. Opposition parties severely criticized the GOP. This reaction was very much expected. Today the GOP had 35 divisions. Do we need all of them? Can we do with less? What was the meaningful logic behind the past enlargement moves? These questions need to be addressed urgently. Today, Pakistan had a Cabinet size of 60, which was somewhat large. The total number of effective ministers was only 19, however. Tough times need tough decisions. Overstaffing was the root cause of the problem facing the GOP and only a tough measure could possibly solve the issue. It must move now. The general public should back the move. Only tough measures can possibly eradicate the disease crippling Pakistan’s economic problems, which to some extent were due to the ills of the bloated state sector. Recent efforts by the GOP to downsize were in the right direction and should be applauded by the political parties and the people. Undoubtedly, the GOP had become bloated. Like elsewhere, most government employment must be in the local government system and not the federal and provincial governments. Today, the GOP was wary of carrying out the downsizing exercise for obvious political reasons. Throwing out people from jobs was never easy for any government, including a military-dominated one. However, critics argue that some bold measures were expected. The Musharraf regime must prove its seriousness about reform. The GOP should carry out these tough reform measures. We believe that these measures, if carried out gradually and methodically, will had a positive impact on government performance. A guarded optimism was in order because it seems that the GOP means business this time around.

8

Dawn, May 24, 1999.

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Sohail Mahmood

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2. INCREASE AVENUES FOR GREATER PUBLIC INPUT In Britain, Germany, France, and Italy new horizontal and control structures had been established alongside then traditional departmental hierarchical structures. All departments had a number of special advisory committees to help them in carrying out their administrative and legislative functions. Exceptionally significant were key ministries like education, finance, defense, public works, and agriculture. For the most part they were committees with a legal status. They vary widely in sphere of action, composition and structure. A common element was the participation of consultants and civil servants from outside, usually acknowledged experts in their field or representatives nominated by major interest groups active in the particular area. These committees fulfill a very important function in supplying the government with advice and information on technical problems, above all as regards the preparation of regulations and legislation. It was natural that these committees become the focus of various interest groups. Pakistan must learn from the European experience and develop entry points for outsiders in the decision-making process of the government. We must also institutionalize such public-private collaboration or at least exchange of views at a professional level. Thus the advisory committees connected with the finance ministry must had representatives of the federation of chambers of commerce and industry, representatives of the agriculture lobby, independent scholars from academia, representatives of the stock exchanges, etc. The Health committee must necessarily have experienced medical professionals and, more importantly representatives of the Pakistan Medical Association, and the representatives of the pharmaceutical industry. The federation of journalists and federation of newspaper editors were strengthened in order to assist the ministry of Information through their committee. In the education committee the representatives of the federation of university staff associations, federation of teachers associations, etc. will render advice to the ministry. A new federation of private schools management and another for the colleges and universities was established. Committees including independent financial experts from the private sector can work with the Finance Ministry on a permanent and regular basis to render appropriate advice and analysis. A little of this exercise does happen but more was surely needed in the interest of sound financial planning. In short what we were advocating was an institutionalized form of Shura and Ijma, a permanent consultation, which was an Islamic injunction. We must further develop bodies to operationalization this Islamic concept in areas where none existed before. This was strengthening civil society in the country something, which was very crucial for the rapid development of Pakistan. Consultation was a cardinal principle of

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good governance. Representatives of the targeted populations of particular sectional interests must always be taken into confidence. Failure to properly consult on time can result in botched and unworkable policy.

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Chapter 5

CONSOLIDATION IN THE FUNCTIONS OF FEDERAL GOVERNMENT

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The federal government had grown with time. There were now 35 ministries/divisions with 60 federal ministers, ministers of state, and advisors running this huge setup. For the sake of greater efficiency and effectiveness, the administrative machinery needed to be restructured? Common sense dictated that immediate consolidation and the GOP undertake integration measures. The following was a list of divisions in the federal government. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17.

Capital Administration and Development Aviation Cabinet Commerce Communications Culture, Sports, Tourism, and Youth Affairs Defense Defense Production. Economic Affairs Education Environment, Local Government and Rural Development Establishment Finance Food, Agriculture and Livestock Foreign Affairs Health Housing and Works

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Sohail Mahmood 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35.

Industries and Production Information and Media Development Interior Kashmir Affairs, Northern Areas and State and Frontier Regions Labor, Manpower, and Overseas Pakistanis Law, Justice and Human Rights Narcotics Control Petroleum and Natural Resources Planning and Development Population Welfare Railways Religious Affairs, Minority Affairs, and Zakat and Ushr Scientific and Technological Research Statistics Water and Power Women Development, Social Welfare, and Special Education. Parliamentary Affairs Revenue

NEXT STEPS 1.

2.

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3.

4.

5.

The divisions of Education and Scientific and Technological Research were to be merged into a new super ministry – the Ministry of Education, Science and Technology. The model to be adapted was that of Germany. A new Ministry of Transport was to be established merging divisions of Aviation, Communications (only the part that deals with shipping and transport), and Railways. The National Logistics Cell now under the control of the Planning and Development division shall also be shifted to the ministry. The model to be adapted was that of the USA. The Divisions of Commerce and Industry and Production were to be merged into the new Ministry of Industries and International Trade. We need to focus more on exports, and therefore the merger made sense. The model to be adapted was that of Japan. An independent agency to be called the General Services Administration was to be created to take care of the entire housekeeping functions of the federal government. Economies of

Reform of the Public Services in Pakistan

6.

7.

8.

9. 10. 11.

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12.

13.

27

scale was realizes in the procurement of essential goods and services. This was a new division that essentially merges all current efforts in the area. No new recruitment was planned for the purpose. The statistics division was merged into the Planning and Development Division. The Planning Commission was upgraded into a full-fledged Ministry of planning to serve as another super agency responsible for strategic planning and development activity in the entire country. In addition to the established Five-Year Plan concept, a Ten-Year Plan was introduced. The Pakistan GOP was the first attempt towards building the additional format. The current Establishment and Cabinet Divisions were contained in a Cabinet Secretariat under the charge of the Prime Minister himself. A new Ministry be created and be called Ministry of the Cabinet Office. The division of Parliamentary Affairs was merged into this ministry. The newly set up ministry were the heart of the GOP. The Minister for the Cabinet Office was considered as one of the most influential persons in the GOP. The model to be adapted was that of Britain. Population Welfare division was merged into the Women Development, Social Welfare, and Special Education. The new entity was called simply as Ministry of Human Services Narcotics Control was merged into Interior division. The divisions of defense and defense production were merged to be called the Ministry of Defense A Ministry of Housing and Urban Development was established by adding to the old Division of Housing and Works and additional emphases on urban development. For this urban development specialists will had to be recruited. A new ministry to be called the Ministry of Energy by merging was created by merging the Divisions of Petroleum and Natural Resources and Water and Power. Another new ministry by the name of Ministry of Telecommunications was created from the remaining portion of old Communications division dealing with the telecommunications and IT area.

The new structure of the GOP’s Ministries was: 1. Ministry of Agriculture (Food, Agriculture and Livestock division. Only a name change here)

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28

Sohail Mahmood 2. Ministry of Transport (divisions of Aviation, Railways and part of Communications) 3. Ministry of Cabinet Office (Divisions of Establishment, Cabinet, plus parliamentary Affairs, plus the newly set up General Services Agency) 4. Ministry of as Industries and International Trade (Commerce, Industries and Production divisions) 5. Ministry of Culture (Culture, Sports, Tourism, and Youth Affairs divisions. There was only a name change here) 6. Ministry of Defense (divisions of defense and defense Production) 7. Ministry of Education, Science and Technology (Divisions of Education and Science and Technology 8. Environment, Local Government and Rural Development division 9. Ministry of Finance (Divisions of Finance, Revenue and Economic Affairs. There was only a name change here) 10. Ministry of Foreign Affairs (no change) 11. Ministry of Health (no change) 12. Ministry of Housing and Urban Development (the old Divisions of Housing and Works plus additional emphasis on urban development) 13. Ministry of Information and Media Development (no change) 14. Ministry of Interior (Divisions of Interior and Narcotics Control) 15. Ministry Kashmir Affairs, Northern Areas and State and Frontier Regions (no change) 16. Ministry of Labor (Labor, Manpower, and Overseas Pakistanis division. Only a name change here) 17. Ministry of Energy (Divisions of Petroleum and Natural Resources and Water and Power) 18. Ministry of planning (divisions of Planning and Development, and Statistics) 19. Ministry of Justice (The current Ministry of Law, Justice and Human Rights. There was only a name change here) 20. Ministry of Human Services. (Divisions of Population Welfare, Women Development, Social Welfare, and Special Education) 21. Ministry of Religious Affairs, Minority Affairs, and Zakat and Ushr (no change) 22. Ministry of Telecommunications (remaining portion of old Communications division plus new emphasis on IT)

Other than the regular federal government Ministries and Divisions, recently established new independent agencies include:

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29

1. Monopoly Commission, 2. Securities and Exchange Commission. 3. Power Regulatory Authority

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More such regulators authorities need be established such as the Food and Drug Agency to regulate the entire areas of food and drugs. The GOP should plan for the creation of a pilot National Education Service, Health Service on the pattern of Great Britain, a National Parks Service, and an Agriculture Service to be patterned after the USA model. The choice of these particular services was because of their fundamental significance in our sustainable development agenda.

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Chapter 6

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MORE EXPERIMENTATION IMPERATIVE There was a need for new and better structures to deliver essential public services. Clearly there was some risk involved. Proper planning will mitigate the risk, however. The GOP will experiment in creating hybrids between traditional public sector departments/agencies and the private sector model of efficient private sector organizations. Pakistan can follow the model of Great Britain in this area, where hybrid organizations had proved largely successful. These hybrids called Quangos were something in-between private and public organizations. New government entities were created to bring the required efficiency in operation and performance. Good management will ensure the proper use of scarce resources, which had time and again proved a constant source of headache in many government departments. In these dynamic setups government agencies/departments were administered on the style of private corporations. The essential prerequisite was that management was recruited from the private corporate sector and it was given greater autonomy and control over its operation. Flexibility and better rewards are a principle of management, i.e. the chief executives of the corporations had much greater freedom to reward good performance and punish that which was bad. This ease of reward and punishment ensures greater productivity and performance improves. The greatest shortcoming of government sector was that good performance could not be easily rewarded nor was bad work that easily punished. Consequently, public sector performance suffered. Existing on meager salaries with cumbersome and lengthy promotion procedures these “public servants” had little desire to work exceptionally hard. Why should they? Hard and honest work was seldom rewarded. It was a basic truism that good performance must necessarily be quickly rewarded. Merely asking for sacrifice will not do!

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The basic reason why the establishment of Quangos was to be undertaken was take care of this significant issue. A crucially important characteristic of Quangos was that they will not be manned by generalist civil servants but by professionals, from both the state as well as the private sector. For the purpose, immediate lateral entry into civil service was permitted albeit on a limited scale. As a pilot the stateowned State Life Insurance Corporation will enter into partnership arrangements with private-sector insurance companies, and state hospitals to establish a consortium for providing health insurance coverage to federal government employees. The model to be copied was the huge Blue Cross and Blue Shield insurance consortium system in the USA. The entity was a sort of grand partnership arrangement between the state and private sectors. The GOP will provide all federal employees health insurance coverage of a similar nature. The current expenditure on providing medical services to government employees in Pakistan was astronomical. Anecdotal evidence suggests large amount of waste and fraud in the system. We need to do better in this area.

Chapter 7

THE ESTABLISHMENT OF SERVICES ON THE BASIS OF FUNCTIONS ONLY

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Public services were established on a purely functional basis as a requirement of efficiency and effectiveness. The Central Superior Services (CSS) and the Pakistan Civil Service (PCS) structures were amalgamated into functional ones. According to the Federal Public Service Commission (FPCS), the government services were divided into the following groups: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

District Management Group Police Service of Pakistan Accounts Group Office Management Group Commerce and Trade Group Foreign Service of Pakistan Income Tax Group Customs and Excise Group Information Group Railways Group Secretariat Group Economist and Planners Group

All these groups was transformed onto full-fledged services and new ones was added. Thus, we will had an Accounts Service, a Police Service, a Pakistan Revenue Service, a National Health Service, an Education Service, a District Management Service, an Agriculture Service, a National Parks Service, an Intelligence/Investigation Service, a Secretariat Service, etc.

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Sohail Mahmood

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Creating independent services was attempted before without much success. Also, the department of Pakistan Post Office was transformed into the Postal Corporation, which was later reverted back to the status of a department. The experiment had ended in a failure. We need to be more careful next time. To its credit, the GOP had decided to transform the CBR into the Pakistan Revenue Authority (PRA) or the Pakistan Revenue Service (PRS).

Chapter 8

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NEED FOR DECENTRALIZED RECRUITMENT MECHANISMS The GOP will create decentralized recruitment mechanisms. What this essentially meant was that instead of a single recruitment agency - the Federal Public Service Commission (FPSC) there was several of them. One for each service because the requirements of one service could be altogether different from another one. A single system of entry examinations (the CSS annual exams) did not make sense any longer. Every service was free to recruit in accordance with its own particular needs. Promotion and transfers will remain within the preserve of a single service. Once a young entrant joined a particular service he will not be able to move out of it except for a short period of deputation or Secondments. The maximum period of assignment outside the parent service was specified by law, say 5 years. The purpose was to create a sense of belonging, an espirit de corps, and loyalty to a particular service. A career-ladder based on specialization; departmental training and experience was offered. The attainment of expertise and quality performance required that proper training opportunity was available within each service. Performance and morale will improve with time. Each service will grow a distinct personality and culture. The most appropriate model was that of the USA government where public services were functional in nature in vertically designed bureaucratic structures. The great power and prestige of the DMG was curtailed as a result. Surely something that needed to be done. Past traditions and administrative structures will fail us in the coming 21st century.

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Chapter 9

NEED FOR ENDING OVER-LAPPING JURISDICTIONS

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The creation of a mechanism to gradually solve the problem of over-lapping jurisdictions across the federal and provincial governments. The GOP will carry out an elaborate exercise to identify all areas where there was overlapping of any sort and try to correct the problem. For example, there were a number of intelligence and investigative agencies in the country, namely: CID, BI, FIA, Special Branch in the civilian sector and the ISI and MI in the Army. Why do we need so many intelligence agencies? Surely, we can eliminate some of them with no bad affect on the security of the country. We need only one Federal Agency and only one counterpart provincial agency in each province, plus the Army’s two agencies can be consolidated into one.

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Chapter 10

MERGER OF THE FEDERAL SHARIAT COURT INTO THE SUPREME COURT

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The Federal Shariah Court had a separate entity from the Supreme Court. The question was why? The present Supreme Court had a Shariah Bench. Again, why create a separate bench? The Federal Shariah Court can be merged into the Supreme Court, as its separate existence was totally unnecessary. The country’s Constitution demands upholding of the Quran and Sunnah as a matter of normal government routine and practice. This move was not meant to undermine Islamization in the country but to strengthen it by removing its straightjacket and limitations. Islamization of all aspects of the country’s administration was the aim. There were absolutely no limits to the jurisdiction of Islamic laws in the country. It was for the new Supreme Court to decide what was and what was not permissible according to Islam. After all, courts had always been instrumental in establishing law in society. Let the Supreme Court rise up to the challenge as collective body. The very meaning of Pakistan’s existence demands it.

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Chapter 11

CONSOLIDATION OF DEVELOPMENT FINANCE INSTITUTIONS (DFIS) WILL ESTABLISH BETTER DELIRIUM METCHNIKOV

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Earlier, the Moeen Qureshi caretaker government had planned to consolidate some DFIs like the NDFC and RDFC, PICIC, and IDBP etc. Nothing came of it though. The GOP had also announced that it plans to merge a number of organizations. The RECP and CEC would be merged with the Trading Corporation of Pakistan.1 This move was welcome news. Management of airport premises was a case in point. Here again there was a conflict among various federal agencies, mainly the ADA and ASF on who was supposed to do what. To remove these muddles was easier said than done. To the credit of the Punjab Government, the Lahore City administration had been greatly streamlined in the last year or so.

1

Dawn, Dec.5, 1996.

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Chapter 12

EMPHASIZE HUMAN DEVELOPMENT

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More emphasis on human development was the need of the hour. The GOP will increase resources for social sector development. It felt that a fundamental change of direction was needed. The social sector was to be emphasized along with that of national security. Hunger, poor health and illiteracy posed an internal threat to the security of the nation. Shift towards a philosophy of humane development. Political participation by segments of society previously excluded was a central element of democratization. Development was increasingly seen as having a wider definition – more than simply the transition from poor to rich. Development also meant human dignity, safety, and justice of equality. The elimination of existing strong inequalities within society was central to successful development processes starting. Equality was the value, which was of considered as very important to successful modernization. Equality then was not meant equality in poverty, but above all equality of opportunity.

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Chapter 13

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REFORM OF THE EDUCATION SECTOR No nation can ever progress without emphasizing quality education. There was a broad consensus that, with few exceptions, the quality of education in state educational institutions had almost collapsed. The GOP was cognizant of this fact and had decided to turn things around on a high priority basis. The reform initiatives taken so far by the GOP had met with great public enthusiasm. Things were finally moving in the education area. The GOP had addressed a number of fundamental issues. The main obstacles to improved education facilities had to do with poor governance, inadequate resources, and lack of qualified staff, low staff motivation, lack of proper physical facilities, and the dearth of participation of end user groups. The main goals of the GOP reform program were: to improve resource use through improved management, third party inspection, and local control of service provision; universalization of primary education; raising enrollment levels in higher education; improving quality at all levels, especially higher education by strengthening indigenous Ph.D. Programs; linking technical and vocational education to market demand. The long-term purpose was to create a culture of excellence that will demand a high quality of service, both in the private as well as the state-sector. The GOP was employing the following instruments for the improvement of the education sector: strengthening of a regulatory framework to encourage private sector investment in education; involvement of local citizen groups in supervising the provision of these services; involving community development organizations in delivery of education services; and entrusting primary education in urban areas to local government institutions, where ever feasible. The Program envisages that state subsidies to higher education were rationalized while ensuring

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that poor talented students were not marginalized. A parallel scholarship program to guarantee universal access to the education system on merit alone will accompany this development. The GOP had already initiated the following measures for improving the quality of education. (1)

(2)

(3)

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(4)

Sufficient allocation of resources had been made to bring our education system at par with most developed countries in the region. Earlier, the education sector had been starved of funds. The education budget of the state universities was Rs458 million only in the 2000 fiscal year. Today, the GOP had increased the allocations for the education sector to a record level. This year’s allocation for the higher education area was Rs18 billion. The private sector was being actively encouraged to come forward to help the GOP in providing much needed educational facilities, especially in the primary and secondary areas. The main thrust was on the improvement of present facilities, to provide universal access to elementary education, and at the same time to fill the gap in adult literacy levels. The adult literacy rate of Pakistan was only 44% while that in India was 55%. The education enrolment ratio in Pakistan was only 43%, while that in India was 54%. The population with access to safe drinking water in Pakistan was 79% while that in India was 81%. There were 50 million adult illiterates in Pakistan today. There were only 44 million a decade ago. The GOP put great emphasis on the advancement of elementary education. A new emphasis on non-formal education had been incorporated to raise the adult literacy level in the country. Also, the NGO sector was being involved as partners in the cause. Relatively, substantial resources had been directed towards the achievement of the aim. Our curriculum was out of date and required major revision to cater to the needs of the 21st century. Academic experts were reformulating the curricula from primary to Ph.D. level so that by 2001 there was a single curriculum compatible with the best in the world. Not only will the curricula be revised and improved but also teaching methodologies and teachers themselves, professionally speaking, was vastly improved. The GOP was already stressing recruitment of teachers on strict merit and was revamping and strengthening teacher training. Thus, the GOP was emphasizing achievement of excellence at all levels in the education system.

Reform of the Public Services in Pakistan (5)

(6)

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(7)

(8)

47

The world has entered into the era of the Knowledge Revolution, which had given new meaning to literacy. From emphasis to just reading and writing the new thrust had moved on to computer literacy, given the significance of the new medium and tools available. We will have to restructure our schools fast. Initially, to start the process, 200 "smart schools" were being established per year. By 2010 Pakistan will had 2,000 of such schools. These "smart schools" program will trigger a snowball effect and eventually several thousand like schools was established in the private sector. The “smart schools” initiative had adopted a pragmatic approach keeping costs to a bare minimum. These schools will make use of facilities in the rural areas. These schools will, with marginal cost, provide an opportunity to the poor rural children to compete with the best schools. The "smart schools" will provide emphasis on science and electronics. They will produce scientists and computer specialists of the future. These schools were instrumental in bridging the rural urban gap and provide a level playing field to the rural poor. Equal opportunity was a fundamental goal of the GOP. A National Skills Program had been launched to impart technical education to youth to meet essential market determined training needs. Under the Program, technical and vocational training centers were being set up in government high school facilities. These centers will work in the second shift. The facilities of these schools were under utilized, as they were lying idle in the afternoons. Another emphasis of the Program was on gradually shifting education from general to science subjects. The Program will ensure proper monitoring of the Program. A regular system of inspections was laid in place. Strict accountability of personnel will ensure success of the Program. The GOP was turning around Pakistan's public-sector universities by improving governance, strengthening research, and Ph.D. programs. Given the problem of violence on campuses, university governance problems were being solved on a priority basis. A peaceful academic environment free of all violence was definitely established by eliminating student politics. A conference was held under the auspices of the GOP for the purpose of chalking out a working strategy. Under the GOP, two Ph.D. programs were being launched under which a total of 400 scholars were awarded Ph.D. ever year. The total number of Ph.D. graduates from Pakistani universities will increase from the current 50 to 300 in five years. One hundred scholars were sent abroad for their Ph.D. education. The scholars enlisted in the domestic Ph.D.

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48

Sohail Mahmood programs were given a stipend of Rs5, 000 per month and their tuition fee was waived. In addition, the university department administering the program was given a grant of Rs400, 000 to finance the research project. A national committee had been constituted to decide as to the number of scholars (out of the total 300) from each university and the discipline offered. The committee comprised of representatives of Kahuta Research Laboratories, PAEC, PCSIR, Punjab and Karachi universities. (9) Under a program named as “Teachers and Researchers Overseas Scholarships", the GOP will finance 100 scholars who managed to join the world's top five Ph.D. programs on their own. In other words, the GOP was ready to pick up the tab once these scholars got selected in these coveted programs. The GOP will only finance the first two years of their studies. The duly constituted national committee will ensure the implementation of the programs. Decisions were based on ascertaining actual needs of major employers in the country. The representatives of these employers were sitting on the said committee. The GOP will ensure a scientific mechanism to administer for the whole project. Ultimately, Pakistani universities were producing 1,000 Ph.D. graduates by the year 2010. (10) A tangible outcome of the new Program thrust was the inclusion of at least five Pakistani universities among the top ranking 50 universities of Asia. Emphasis of these Ph.D. programs was to create an indigenous body of knowledge relevant to our true needs and requirements. (11) A performance audit of all universities was conducted from next year. In the future, the funding arrangements for all universities and colleges were linked to their academic performance and reputation gained. The performance culture will thus be introduced. Also, all state universities were expected to generate their own resources through various incomes generating activities. (12) Under the overall guidance of the Allama Iqbal Open University, a quantum leap in the field of distance learning was being made. The university’s new program will not only be targeted to overseas Pakistanis, mainly in the Gulf region, but also students inside the country. The university was seeking collaboration with reputed institutions and faculties for its Masters level programs. The GOP was convinced that the overall potential of distance learning was immense and therefore was tapped with all earnest.

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(13) The GOP will send 100 of the top-ranking graduate students in the fields of science and technology to the world's best educational institutions. The selection was based on past educational performance of selected candidates. Scholarships for higher education were granted.

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Chapter 14

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HIGHER EDUCATION REFORM: FUTURE AGENDA No nation can develop in a sustained manner without quality education. The world had moved forward from an era of Industrial Revolution to the Knowledge Revolution where brains not muscle power matters most. Knowledge was also a cardinal Islamic value. The future belongs to the nations that had mastered the Information Revolution, so to speak. The world was changing quickly and unexpectedly. Changing events were here to stay. Where do we stand? Was Pakistan able to benefit from the Knowledge Revolution? Political scientists recognize that “information power” was becoming just as important as international affairs as country’s military, economic, social and political strengths. If we fail at reforming our education system we will fail to make Pakistan into the powerful modern Islamic state of our collective dreams. The GOP will have to act now. History will judge us. The efficiency and effectiveness of government educational institutions were getting worse not better, with very few exceptions. Every one acknowledges this stark fact. Decline in standards did not happen overnight. We had failed in providing decent education to our youth. We must make a resolve to turn things around. We can only fail at Pakistan’s peril. Nevertheless, even now it might not be too late to grapple the monster of bureaucratic inefficiency and ineffectiveness. As a matter of fact it was never too late. The GOP must reengineer the entire education system as it had failed to deliver. Easier said than done! Where do we begin? What should be our priority? Given scarce resources, what was the most cost-effective method of reform? There were neither quick fixes nor easy answers. Re-engineering government educational institutions must aim at an education

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system that not only fulfills the demands of today but was also capable of meeting the requirements of the coming century. A wide range of recommendations regarding reform of the education system had already been put forward. The implementation of these recommendations was problematic. It involves comprehensive planning and a reasonably gestation period. Main emphasis should be on improving standing mechanisms and finding more effective ways of enforcing these mechanisms. Ultimately, the GOP was responsible for the provision of quality education in the country. The contribution of the private sector, though welcome, was not the solution for our education mess. The outright privatization of educational institutions was a betrayal of public trust and should be seen as an action on the part of the GOP to ignore fulfilling its fundamental duties. Therefore, outright privatization of higher educational institutions WAS out of question. The GOP accepts its responsibility and will deliver in accordance with public expectations. It should be held accountable for its own performance in this area. The following reforms are proposed in the higher education sector: 1.

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2.

While, primary and secondary education was a birthright of every Pakistani citizen. College and university education was not. Given the scarcity of resources, the GOP to re-define the role of higher education in the country. College education was a privilege that must be earned by attaining academic excellence at the higher secondary level. Not every one was ready for college. Nor can they be allowed to waste state resources. Therefore, a two-track system be introduced, or improved if you may, the first was college leading to a bachelor’s degree and the other was that of the technical institute leading towards a diploma or certification. Most students were channeled into the second type of educational institutions. The GOP cannot subsidize education at this rate. For example, the students in most of our universities and colleges pay only a fraction of the cost. The state picks up the tab. It was not fair because a lot of students can afford to pay more yet the system does not demand it. Those who can afford to pay more were expected to pay their fair share of college or university education. Fees need to be increased while it must be guaranteed that poor students were not forced out of educational programs on the basis of need alone. Every student, regardless of family income, will get an education, if he or she meets the merit criteria. The state will give a Student Loan to all eligible candidates to complete their degree programs. The loans were

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3.

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4.

5.

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repayable after the student graduates in easy installment spread over a long period of time. The focal point or nucleus of the entire education system was the college or university teacher. Without good teachers other things hardly matter. We had failed to honor the profession like our forefathers. Teaching was a very noble profession. The GOP gives it more status and recognition than at present. Only the best and the brightest should enter it. The GOP will make the teaching profession more attractive than at present. Teachers deserve to be paid much more for their services than at present. They were held accountable for their performance also. Likewise, teachers must attain new skills and stress professionalism as a value. This was in line with our Islamic heritage. How do we do it? The highest priority was in personnel management and training in the education cadre. Both were revamped. Career advancement system needs to be reviewed. Merit was the only criteria for advancement. It was too much dependent on length of service. The best teachers were promoted faster. The criteria of promotion, other than service length, were rigid. For example, a qualifying criterion for promotion from the rank of an Assistant Professor to Associate Professor in a university was that the candidate must had published a certain number of research articles in reputed journals of international standing were required. What about a candidate who does not had the required research article, but instead had published several books? Clearly, this candidate deserves promotion if he indeed had published quality research work. The point was not to scrap the requirement of publications altogether but to make it more flexible. Rather than stress journal articles only it was prudent to let more scholarly evidence be forthcoming. It was for the selection board to decide if those publications merited the candidate’s promotion or not. It was not rationale to assume otherwise. Many such arcane rules stifle initiative and resolve of bright young instructors. The GOP will review the whole university promotion system and make it rational. The existing system of recruitment in university/college teaching was reviewed and changes in this respect, reforms introduced in other countries, should be examined. For example, a teacher was required to serve as a Teaching Assistant with a senior faculty member before being allowed to become Lecturer.

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7. 8.

9.

10.

11. 12.

13.

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14.

15.

The finest officers were posted as faculty members and head of training institutes. Expertise in the employment of IT was an integral part of teaching in all educational institutions There was a vigorous enforcement of the policy of linkage of training with promotion. Penalization for failure to attain qualification on training abroad funded through the government should be reinstituted. Rewards for innovative ideas were introduced. Cost reductions, cost effective provision of services and changes made for efficiency gains need to be rewarded. Teachers that do not perform satisfactorily were punished. Performance evaluation systems were not up to the mark. ACRs will not be kept secret from assesses. However, third part restrictions will remain in place. Student evaluations of teacher performance were introduced. After all, who was better judge than students who interact with him so often in the classroom? In short, teachers were held accountable for their performance in the classrooms. Therefore, better mechanism of control of teacher performance was introduced. Sloppy work will not be tolerated in the future. One of the criteria for promotions in the college teaching cadre was a third party qualifying examinations. There were periodical performance reports on colleges and universities and a system of inspections based on regularly maintained database was instituted. The Planning Commission will collaborate with the Ministry of Education to supervise the effort. The universities and colleges will had more functional autonomy. Heads of administration was made more accountable for their performance. More colleges were given degree-awarding status like recently given to Government College, Lahore, Forman Christian College, Lahore and Kinnaird College, Lahore. The system of examinations was reviewed. The annual system of examinations WAS too rigid and needs to be discarded. The semester system was introduced in the universities. It was working well in prestige institutions like IBA, Karachi and other good universities in the region, then why not here? The semester system was inherently more flexible and adaptive than the annual system.

Reform of the Public Services in Pakistan 16.

17.

18.

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19.

20.

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The BA degree course was extended to four years from the current two. The BA Honors 3-year course was initiated immediately, as already given in the GOP’s education policy. The MA “private” system was discarded. The GOP will not permit the further devaluing of our degrees by this system. Private study of a few “keybooks” for a few weeks does fulfill neither the basic condition of student-teacher interaction nor the fulfillment of a regular MA degree. Designating an M.A. degree as “private” and therefore, much easily available was a shameful act. The GOP was itself decreasing standards by adopting such a method. Then why blame others for not valuing our degrees? For example, thousands of candidates sit for the MA private examination in Political Science each year, simply because it was perceived as the easiest way to get an M.A. Clearly, something WAS wrong here. The point was that the GOP must make higher education harder and a more meaningful experience, and not the opposite. No wonder our degrees were not being accepted overseas. More evening diploma and certificate courses were introduced to make full use of existing facilities. They could supplement the income of the educational institutions. More evening degree courses were started also. There WAS a market for people desirous to pursue higher studies in the evenings. These people had full-time jobs and were not available in the daytime. The state universities will tap this student potential. The concept of distance learning had immense scope in a country like Pakistan. The potential utility of Allama Iqbal Open University was further extended. More courses for students inside Pakistan will to be provided. The current emphasis WAS on providing education to Pakistani students in the Gulf region. A giant education network covering every nook and corner of the country was established by the AIOU. More community colleges of the American type were started where admission requirements were less stringent and program lead to an Associate degree only. The time period for completion of degree course requirements was about half of the regular BA programs (i.e. two years). Plus, the community colleges provided avenues for a different clientage of students as the courses were primarily offered in the evenings and more importantly on the basis of public demands. This was fundamentally the implementation of the continuing

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21.

22.

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23.

education concept. The very nature of the community college was best suited for providing education catering to regional priorities, cultural aspirations, and local needs. Thus, community colleges established in rural areas and in small towns were better able to cater to the needs of the people in acquiring knowledge in the agriculture sciences. Similarly, community colleges in the big cities will cater to a different class of students with different demands and inclinations. The idea was to market educational packages according to local demand. Student Union activity was banned. However, political activity of defunct student political groups continues unabated. Politics on campuses had ruined the academic environment and ambience of our educational institutions. Peace on campus was guaranteed. Therefore, politics of any sorts was to be completed prohibited. All political parties, including the ruling Muslim League, will immediately dismantle their student wings. An All-Parties Pact was arranged for the purpose. All political parties and groups will guarantee the ban for at least ten years. After the period of the ban the union activity may be restored, if deemed feasible. Pakistan needs to reinvigorate state institutions and will need some respite, calm and peace for a few years at the minimum. The state universities and colleges will come up with a crash program to increase their revenues by providing more services. The mushroom growth of private educational institutions should be to be both regulated and periodically checked by the Higher Education Commission (HEC). There are more than 50 private universities in Pakistan, hundreds of colleges, and thousands of schools. Teaching was an essential service not to be made into a moneymaking venture. The Islamic tradition had given teaching a coveted place in its hierarchy. Quality education was an Islamic imperative. The GOP was responsible to stop widespread fraudulent activity in the name of higher education. At the same time, genuine educational ventures were encouraged. An elaborate technical process of national accreditation was established. For this the GOP will establish a National Accreditation Council for the purpose. Top education experts and other professionals will man this council. The requirements of accreditation was transparent and the process open to public scrutiny. Fraudulent institutions must be closed immediately.

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24.

25.

26.

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27.

28.

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The performance of the HEC was not satisfactory in this area. Much more was expected from the commission. Merit was the only criteria for entry in all types of educational institution. The GOP will gradually abolish all reserved seats after the stipulated constitutional quota protection period WAS over. The federal admission quota system was reviewed as it contradicted the merit principle. The merit principle was a basic Islamic value that could not be compromised in any circumstance. There was a strong thrust towards science and technology in our education system. If neighboring India could excel in the area so could we. Some of India’s Institutes of Technology were reputed to be the best in the world. We need to compete with India in the field of education. In order to bring all regions at par with each other in the field of education the GOP will concentrate on improving facilities in educationally deprived regions. Why cannot quality educational institutions be established in these backward areas? The GOP will provide much greater material incentives for students, teachers and administrators in these regions in order to improve educational performance. If quality education were available the people from these underdeveloped areas was able to find jobs on merit. Undoubtedly this will take time. Meanwhile, the GOP will push towards educational parity for all parts of the country. In a long-term plan the backward regions was given priority in resources. The effort of the National Commission for Human development (NCHD) needs to be strengthened. The NCHD’s scope and work in the field of non-formal education had great potential. The local NGOs were better involved in the provision of these services. More and better working partnership arrangement should be made with state institutions for the purpose. The NCHD be incorporated in the federal Education Ministry, as a specialized agency. Why does the NCHD have to be a separate entity? The GOP to observe a Primary Enrollment Day on the International Literacy Day. Senior state officials will visit various schools on that date to attend the enrollment ceremonies. No fee was charged for one whole year from the student who enrolls on that date. Gifts will also be given to these students. The purpose was to encourage primary school enrollment, especially in the rural areas. The must further increase primary school enrollment to 100% in the next few years.

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Chapter 15

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REFORM OF THE CIVIL SERVICE The GOP should establish a new and better civil service by introducing new management techniques and organizational structures. In the future the staff was better skilled and better trained. A more outward-looking approach, with greater concern for service users, was being adopted. In seeking value for money, the civil service was adopting a more business-driven approach. The GOP should create a civil service where decision-making at the very top was being democratically organized. It should realize that teamwork was the central characteristic of the democratic form of organization. Therefore, the GOP was promoting it. Also, self-responsibility and self-initiative was promoted in great earnest. The GOP should be making a sustained effort to uphold the operationalization of key principles on which the civil service was based: political impartiality, integrity, selection and promotion on merit, and accountability through parliament to the people. The GOP must believe that the quest for greater effectiveness and efficiency in the civil service was an unending one. The requirement to maximize the return from finite resources will not go away. The GOP should aim at creating a public service that not only fulfilled the demands of citizens but was also capable of meeting the requirements of the coming century. A wide range of reforms and re-engineering of the public administration system was required. The GOP should be carrying out the task with great earnest. The implementation of the reform program involves comprehensive planning and a reasonable gestation period. Emphasis was being placed not on creating new institutions but on improving standing structures and mechanisms, and finding more effective ways of enforcing these mechanisms. The GOP be committed to establish efficient, responsive and effective administrative machinery capable of delivering high quality public services. The

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GOP should desire to create a public service that was creative and was focused on customer satisfaction. Thus, the GOP should be aimed at nothing less than institutionalizing a culture of excellence in the public service and in building a sustainable capacity in Pakistan’s public sector. The successful implementation of the administrative improvement Programs was a function of detailed planning, sharing of ideas about the reform process itself, and the careful analysis of the country’s specific situation. In this quest of excellence, the GOP was to be entrusted with the responsibility of planning, implementing and monitoring administrative reform programs in the public sector. The GOP should be acting as a nucleus for coordinating and supporting all existing efforts at administrative reforms. The GOP’s modernization plan should be based on the following strategic programs: Incentives to Enhance Excellence and Innovation Accountability and Integrity in the Public Service The Citizens’ Charter Schemes in the Public Services Human Resource Development

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I. INCENTIVES TO ENHANCE EXCELLENCE AND INNOVATIONS In the quest for excellence in the public service, the GOP required that a culture of innovation, creativity, and efficiency be inculcated in all state agencies. These organizations were required to review and update procedures and regulations that were obsolete and implement effective work systems to ensure that their outputs satisfy customers. The public service must fully recognize the role played by a culture of excellence, creativity and innovations in the quality improvement effort and towards increasing public satisfaction. The GOP was fully committed to the concept of individual recognition. Besides individual recognition, the GOP also gives due recognition to public sector organizations through various awards. This recognition will act as a motivator for others. These awards shall represent the higher recognition by the GOP to organizations and individuals who had successfully implemented innovations. At the same time, all ministries, departments and statutory bodies, in their efforts to encourage their staff to strive towards excellence and be continuously innovative and creative, establish their own individual systems of

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recognition. This shall indicate that the values of excellence had been successfully institutionalized in the culture of the public service.

II. VALUES AND WORK ETHICS Civil servants whose job demand face to face interaction with the public, particularly those who man service counters were required to show kindness, patience and a willingness to serve the public. Values that should be continuously emphasized include being polite, courteous, friendly, patient and fair. These core values were the basis for the effective and efficient delivery of goods and services to the discerning public. It was the Government’s fervent desire that with the implementation of the Citizens’ Charter program civil servants will give due priority to values such as courtesy, politeness, humility, cooperation, efficiency, carrying out work expeditiously and fulfilling the requirements of their customers.

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Professional Values Fundamental to work excellence were basic values such as dedication, selfdiscipline, commitment, cooperation and moderation. The continuous practice of these virtues will invariably lead to greater productivity and quality in the workplace. Each and every civil servant should possess values that can help contribute and enhance their level of professionalism in the Civil Service. Examples of professional values include being knowledgeable, intellectual and possessing skills in areas such as management, information technology and communication. Other equally important values include being creative and innovative, motivated, accountable as well as possessing a high sense of integrity. Trust, responsibility, sincerity, dedication, cooperation and discipline were some examples of basic values that all civil servants should possess to ensure the smooth running of the Government administrative machinery. Within this context, a civil servant was expected to discharge his or her duties and responsibilities with sincerity, trustworthiness and cleanliness. Sincerity and trust were values observable through actions, such as in the judicious use of time, administering and spending public money according to set rules and procedures, avoiding excesses and corruption and completing work within prescribed time. On the other hand, cleanliness brings to mind two important dimensions, namely the moral and the physical. Being morally clean means placing a high premium on personal traits

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such as fairness, humility, non-discriminating, not susceptible to corruption and non-involvement in criminal activities. From the physical aspect, it means individual cleanliness in such aspects as dressing and appearance, while in a broader context it includes having a conducive working environment.

Leadership Attributes of a good leader do not entirely depend on absolute power, the ability to motivate, plan, develop and administer work and exploit the skills within the organization to achieve planned objectives. A leader should also possess positive work ethics and values in order to lead by example. Indeed, a leader of high moral values was one whose actions and behavior was seen to be fair, firm, courageous, responsible, reliable, noble and projecting wisdom. Although western management gurus had been emphasizing the importance of exemplary leadership in the recent decades, it was however not a recent phenomenon. Islam had already enjoined its followers on the importance of leaders setting good examples in their deeds and behavior through the Al-Quran and Hadith of the Prophet, peace be upon him.

Religious Values

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In essence, religious values were the pillar and source of strength for all the other values. Holding firm to their religious beliefs will invariably acts as a factor that restraint deviation from good conduct and behavior. At the same time, it helps to facilitate the internalization of noble values. A positive outcome of holding steadfastly to religious values would be an inherent commitment to good practices and productive work ethics.

STRATEGIES IN THE INCULCATION OF WORK ETHICS AND VALUES: To further strengthen its policies and programs on the inculcation of noble values, the Civil Service shall give due emphasis to the continuous implementation of strategies in the inculcation of work ethics and values. This shall include the following:

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1. Training, Courses and Seminars Training programs and courses conducted by the various public sector training institutions not only cover skills and knowledge but also emphasize on work ethics and values such as personal, leadership, professional and religious values. All Government training institutions especially had to inject elements of values and work ethics into their training curriculum. These include punctuality in attending classes and meeting deadlines for assignments, developing team spirit and harmonious relationship through work groups, group dynamics and physical training. Activities on values and ethics were also integrated into long term courses such as the Diploma in Management Science and the Diploma in Public Administration. These include conducting seminars on values and work ethics, having orientation weeks, holding religious talks, organizing community work and through sports activities.

2. Disciplinary Actions The Civil Service shall also institute new disciplinary proceedings against those who breach established work procedures, norms and values. Disciplinary action was developmental in nature, while reminding the guilty party on the accountability of his actions; it also acts as a deterrent to others. The detailed disciplinary procedures of the Civil Service were given out in a new “Public Officers Regulations” (Conduct and Discipline), “Public Service Disciplinary Board Regulations”, and the “Guidelines on Disciplinary Proceeding”.

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Next Steps (1) In line with the objective of the Civil Service to internalize these values among civil servants, various programs were outlined by the GOP. (2) Training institutes and Civil Service Academies design courses on the subject, seek approval, and commence teaching. New courses such as the Diploma in Management Science and the Diploma in Public Administration were introduced emphasizing the subject. The whole effort should be completed within a year.

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(3) Civil servants shall also given opportunities to further their education at the certificate, diploma, post-graduate and doctoral levels. All these programs shall teach work ethics and values. The GOP had evolved a viable anti-corruption strategy to combat the menace of corruption that comprises of the following actions: i.)

ii.)

iii.)

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iv.)

v.)

vi.)

Prevention by repairing corrupt systems and punishing the offenders: The GOP aims at a two-pronged strategy that will not only weed out corruption by punishing the corrupt but also rely on taking preventative measures. Thus, the GOP will emphasize the collection of information in order to raise the probabilities that corruption was detected and punished. The GOP will also increase the social consequences of corruption. It will carry out an elaborate propaganda exercise for the purpose. Involving the people in diagnosing corrupt systems: Successful campaigns against corruption must involve the general public. The GOP realizes that citizens can be of invaluable sources of information about where corruption was occurring and that it will consult them. Linking incentives to the output: Public sector wages were so low in Pakistan that survival had become impossible at times. Moreover, measures of success were lacking in the public sector, so that what officials earn was not linked with what they produce. The GOP had already announced a Pay Committee for the wage structure of the public sector employees. Democratization and constitutionalism: Strong legal and open government institutions help in controlling corruption considerably. Proper functioning of all state institutions can forcefully check arbitrary behavior and corrupt practices. With a strong public check on behavior of officials through institutions like the parliament and judiciary corruption will decrease. The rules had to be effectively enforced. Revamping training in the public sector: Trained and efficient public service will help reduce corruption and as such the reform of overall government structures will indirectly have an impact on incidence of corruption. The FIA was strengthened and involved more aggressively in fighting corruption. Promoting the media's “watch-dog” function: A vibrant media can help control bribery by exposing graft in government offices. Such investigative reporting was encouraged and rewarded by the GOP. The media can become an ally in the fight against corruption.

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vii.) Revamping GOP auditing services: GOP auditing services were being revamped and after the strengthening of the Auditor General Office reports were available for timely action and as such the normal accounting and legal arm of the GOP will become a potent instrument to fight corruption. Revamping the police services, courts, and civil society will also help eradicate corruption. viii.) Revamping of the Central Board of Revenue: Tax administration was a key area and was a fundamental prerequisite for success of the tax initiatives taken recently especially, when the tax rates had been lowered in the hope that more tax revenues was collected. The GOP intends to identify a few big tax evaders and corrupt officers and give them exemplary punishment. ix.) Economic measures enhancing deregulation and privatization: Any reform measure that increases competitiveness in the economy was expected to reduce incentives for corrupt behavior. A monopoly enterprise gives no choice or an alternative for the consumers to exercise and as such GOP intends to break monopolies in both the public and private sectors. The GOP had already established National Electric Power Regulatory Authority (NEPRA), Pakistan Telecom Agency (PTA) to ensure that inefficiency of the public agencies was not transferred to the consumers. Securities and Exchange Commission had also been established to oversee the proper functioning of stock exchange market. The GOP was committed to privatize all the commercial activities now under the public sector. Hopefully, it was able to sell some of its financial institutions fairly soon. The National Accountability Bureau had initiated an accountability process designed to expose previous wrongdoing, recoup ill-gotten gains, and restore public confidence in government institutions. Public accountability was essential for maintaining public confidence in governance, justifying state activities and ensuring the overall legitimacy of the state. An individual performs best in an organizational culture that was rewarding, and fair. It was possible to make systematic improvements by pursuing a practical strategy to improve integrity and accountability in the public service.

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Next Steps 1. Clear political will shown to fight corruption as it was entrenched in the system and cannot be eradicated overnight. Finding pockets of political support was crucial. Therefore, a broad-based non-partisan coalition to institutionalize the crusade was established. 2. Despite the recent pay increase, the public sector wages were still very low making sheer survival nearly impossible. It should be no surprise that corruption flourishes under such conditions. Therefore, an appropriate pay increase for the civil service was required in the next budget. From next year onwards a Cost of Living Allowance (COLA) was given to the entire public service every year. COLAs were common in many countries and need to be also introduced in Pakistan. 3. A trained and efficient intelligence service can reduce corruption. The FIA be strengthened to investigate white-collar crime and sophisticated corruption at the highest levels. Current investigation efforts were consolidated immediately, and unnecessary duplication of efforts was eliminated. 4. The media can become an ally in the fight against corruption vibrant media helps control bribery by exposing graft in government offices. Therefore, the media’s “watch-dog” function was promoted by rewarding investigative reporting. An awards scheme was formulated for the purpose.

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III. CITIZENS’ CHARTER SCHEMES IN THE PUBLIC SERVICES The concept of Citizens’ Charters refers to an explicit written commitment by government departments and state enterprises providing assurance that they will comply with the declared quality and performance standards. The Citizens' Charters proclaim that citizens were entitled to accept quality service to be based on inter-related principles. All government corporations, agencies or departments at all levels of administration was required to participate in the Citizens’ Charter Program. Citizens' Charters place emphasis on citizen demands for greater efficiency in public service delivery and their treatment as “customers” of the state agency. They emphasize the importance of exacting performance pledges from each government department. Essentially, they aim at bringing the state agency closer to citizens.

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The concept had been successfully applied in Britain, France, Hong Kong, Malaysia. It was now being introduced in India also. These governments emphasized in their charters the importance of exacting performance pledges from each of its departments and holding them accountable for achieving the promised results. The concept of Citizens’ Charters refers to an explicit written commitment by government departments and state enterprises providing assurance that they will comply with the declared quality and performance standards. The idea was that customers will had an idea and some expectation of what quality of service to expect from the GOP. At the same time, government departments or corporations can use these Charters as an indicator in evaluating their own performance. The implementation of this concept masks the culmination of efforts to institutionalize a quality culture in the GOP services. Thus, the Citizens’ Charter emphasizes the “demand-side” as opposed to “supply-side” of public performance. The Citizens' Charters proclaim that citizens were entitled to accept quality service to be based on six inter-related principles. These were:

1. Setting Standards for Performance Related to Quality Set, monitor and publish explicit standards for the services that individual users can reasonably expect. Plus, publish data on actual performance against these standards.

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1. Making Sure Citizens Receive Value for Money This principle, assuring that citizens receive value for money, was particularly radical inasmuch as it suggests that public services can and should be cost-out according to private sector measurements. Indeed, the driving precept behind the Citizens’ Charter was “Value for Money” (VFM). In the implementation of Citizens' Charters, service failures may occur. Standards might not be met or pledges in the charter remain unfulfilled. 2. Promoting Choice and Consultation with Citizens There should be regular and systematic consultation with those who use the services. Users’ views about services, and their priorities for improving them, should be taken into account in final decisions on standards. 3. Helping to Put Things Right When There Were Problems If things go wrong, an apology, a full explanation and a swift and effective remedy were appropriate.

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4. Being Open and Informative Provide full, accurate, and readily available and easy-to-understand information about how public services were run, what they cost, how they will perform and who was in charge. 5. Showing Courtesy and Helpfulness in Dealing with the Public Public servants should be courteous and helpful and normally wear nametags. All government departments and agencies to formulate specific Citizens’ Charters and to review the standards of quality services provided. It was eventually evident that the Citizens’ charter was instrumental in improving the quality of services, particularly in speeding up the delivery process. The implementation of the Citizens’ Charters concept requires actions on five key processes; namely: (a) (b) (c) (d) (e)

Formulation of the Clients’ Charter. Promotion of Clients’ Charter. Service Recovery. Monitoring. Evaluation and Improvement.

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FORMULATION OF CITIZENS’ CHARTERS A Citizens’ Charter must be well formulated to ensure its effective implementation. The process of formulation involves a number of steps, namely, identifying customers and their requirements, identifying major outputs, determining standards for such outputs, and preparing the Citizens’ Charter. The first step in this process requires departments or corporations to identify its customers and their requirements. The needs and requirements of customers were many and varied. Customers will generally demand goods and services that display quality characteristics such as reliability, safety, timeliness, courteous service and practicality. Several methods were used to identify customers and their requirements. These methods include the use of dialogue sections, interview with clients, questionnaires and feedback information. The concerned corporations or departments will then translate the requirements of customers in quality standards. In addition, standards of other organizations were also used as benchmarks. For example, the department of revenue can disseminate information on the charter to its staff as a preliminary

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step. A customer service committee was established in each division to identify customer requirements specific to it. These divisions can then prepare their respective Manual on Quality Standards that will then form part of the Organizations Charter. Below were given samples of Citizens' Charters that may be adopted:

A Patient’s Charter “When you go to an outpatient clinic you can expect to be given a specific appointment time and be seen within 60 minutes of that time.” “If you call an emergency ambulance, you can expect it to arrive within 30 minutes in an urban area or 1 hour in a rural area.” "If you go to an accident and emergency department you can expect to be seen immediately and had your need for treatment assessed. If you were admitted, you were given a bed within four hours.”

From The Passenger’s Charter “If you were delayed for more than two hours on any leg of your rail journey, we will normally offer vouchers to the value of 10 percent or more of the price paid for that journey.” “If, over the last year, your train service didn’t meet its punctuality or reliability targets, Pakistan Railways will offer you a discount when you renew your season ticket.”(New punctuality and reliability targets were that 80 percent of trains should arrive within 30 minutes of the scheduled time and that 90 percent of scheduled trains should run).

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Public Complaints Charter 1. Acknowledgement of written complaint 2. Action on complaint

5 days 2 weeks

Promotion of the Citizens’ Charter After the formulation process, promotion of the Citizens’ Charter to the members of the organization will ensure that each member understands the

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contents of the Charter. This was to elicit their commitment to the service standards stipulated in the Charter. The state organization also had to ensure that its Citizens’ Charter was disseminated to the public. Promotion was done through posters and brochures. Signs were displayed in strategic places within the premises of the offices where they were visible to the public.

Monitoring

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The continuous monitoring of the Citizens’ Charter was important to enable enterprises to evaluate their ability to fulfill the pledges made in the Charter. Mechanisms such as the Quality Control Circles can be used to monitor the performance of the agency. In addition, studying the weekly or monthly performance reports prepared by each division, unit or section within the agency can do monitoring. Channels to obtain feedback from customers on the quality of products or services rendered need to be established to re-evaluate the standards of products or services provided. A large number of GOP agencies to establish their monitoring systems. For example, a state hospital in Islamabad will monitor the quality of its output and services in relation to its written standards through a number of methods such as scrutinizing monthly reports, or hospital superintendent’s report, reports of studies conducted daily nursing report, minutes of meetings and the health department’s report. In addition, the hospital will also establish various channels to obtain feedback from its customers such as suggestion boxes, information on the personal particulars of senior officers which was displayed at the lobby, inquiry counters and the direct submission of complaints to the said hospital’s superintendent.

Evaluation and Improvement In any dynamic environment, a continuous improvement was a requirement for organizational efficiency. Changes in technology, complexity in customer preferences and tastes, increases in operational costs and developments in knowledge, necessitate public sector corporations to review and modify their work processes, operations, strategies, and management policies. Continuous improvement was essential in eliminating constraints that can hinder the smooth implementation of the Citizens’ Charter. Such constraints

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include the non-compliance to quality standards as stipulated in the Charter, defective output outputs that were no longer strategic or preferred by customers and unproductive practices. The implementation of the Citizens’ Charter by departments or agencies had to be accomplished in a systematic manner and the standards contained in these Charters had to be realistic, practical and achievable. In addition, various mechanisms were used to obtain feedback from customers to determine the degree of conformance of the quality standards as pledged in the Charters. The efforts undertaken by these government agencies in implementing the Citizens’ Charter will soon prove the high priority the GOP places on customer satisfaction.

The Annual Report on the Implementation of the Citizens’ Charter Government corporations, agencies or departments at all levels of administration was required to prepare their Annual Report on the Citizens’ Charter. This report will focus on three main areas, namely, service standards that had been set in the Charter, the level of standards achieved and future commitments towards the Citizens’ Charter. The objective of this report was to enable government agencies to monitor their success in implementing their respective charters and to take more effective action to ensure quality in service delivery. In addition, these reports will enable the evaluation and monitoring of the status of implementation of the Charters in the public service as a whole.

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The Prime Minister’s Award for Quality An important element of the Citizens’ Charters approach was that it includes incentives for performance and awards that recognize distinguished public service. A similar approach had been tried successfully in the USA and Britain. The Prime Minister’s Award for Quality was a symbol of high quality of a public service, which was indicated by: • • •

High service quality standards Independent validation of performance Continuous improvement in both quality and customer satisfaction

The award was issued to a limited number of government organizations that had attained high performance in improving service to their clients. Agencies can

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then use the Quality Mark on their stationery and public relations material for a period of three years. It was considered a sign of great prestige.

Next Steps

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1. All ministries/divisions to formulate Citizens' Charters that fulfill the following requirements: (a) Set standards for performance related to quality. (b) Provide full, accurate, and readily available and easy-to-understand information about how public services were run, what they cost, how they perform and who was in charge. (c) Promote choice and consultation with citizen (d) Assurance that citizens receive value for money. Public services were cost- effective in accordance with private sector measurements. 2. The implementation of the Citizens’ Charter by departments or agencies was accomplished in a systematic manner and the standards contained in these Charters were realistic, pragmatic and attainable. Additionally, different means were used to obtain feedback from clients to ascertain the degree of conformance of the quality standards as promised in the Charters. 3. To reinforce effectiveness in the implementation of the Charters, all departments submit an annual report on the implementation of the Citizens’ Charter. 4. The “Charter Mark” scheme was introduced primarily as a symbol of public service quality, which was indicated by service quality standards, and continuous improvement in both quality and customer satisfaction. In the first year of the program at least five departments or state enterprises were awarded the “Charter Mark”. By year 2010 there were at least 50 national charters and hundreds of local charters published by among others, local authorities, hospitals, police departments and schools.

IV. HUMAN RESOURCE DEVELOPMENT There was a critical need to reengineer the services and training of GOP officials in order to meet the challenges of the 21st century. The existing

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arrangements had to be reordered in order to attract qualified personnel. The GOP needs to create a performance-based knowledge driven system that was both efficient and effective. State organizations do not have mission statements. Targets were not fixed. Responsibilities not given. Hard work was not rewarded and sloppy work habits not punished. In short, appraisal systems were ineffective at best and totally irrelevant at worst. Strategies for human resource development need to be overhauled immediately. Human resources were an organization’s most important aspect. In line with this philosophy, the public service fails to adequately focus on human resources development. Career development, enhanced training, performance appraisal systems were inadequate. Training must be a continuous learning process. Knowledge and skills of officers need to be upgraded. Training does not enable civil servants to cope with increasing job demands and to achieve greater levels of performance. Other than the training in CSS academies or military services, the training of departmental officers was largely insufficient. Management weaknesses were accentuated by problems of finding the right man for the right job. Some major areas of weaknesses had emerged as problems had surfaced in the fields of economic management, debt management, financial management, project management, tax administration etc. Operational excellence requires efficient management. State institutions were plagued by red tape, corruption, and lack of responsiveness to the emerging needs of the country. There was lack of proper direction in most organizations. These departments had become too much routine bound, rule oriented and follower of antiquated processes and procedures. The basic purpose for which they were created either no longer exists or had been lost along the way. Over-centralization was apparent. Rent seeking rules and regulations do not help the public, they sap their energies. The world was going through unprecedented speed of change. If Pakistan’s institutional development does not keep pace with world trends it will widen the country’s development gap with the rest of the world. Bureaucratic indifference, mismanagement, slowness, and sloppiness were now legendary. People were sick and tired of bureaucratic red tape, unresponsiveness and arrogance of the bureaucracy. The efficiency and effectiveness of government departments were getting worse not better, with very few exceptions. Every one acknowledges this stark fact. Never in the history of Pakistan had public perceptions been so negative about the bureaucracy. Problems had obviously piled upon each other with no quick solution in sight. There is a critical need to reengineer the services and training of Government officials in order to meet the challenges of the 21st century. In order to achieve

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excellence in the public sector the Government shall carry out the following reforms:1 1.

2. 3.

4.

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5.

1

Government organizations were established with specific functions. The work of the agency had to be undertaken both efficiently and effectively. At the moment there were no officially set performance indicators in the ministries and departments to scientifically measure organizational performance. There was no mechanism to measure, qualitatively and quantitatively, the achievement of the departments, if any. A systematic and comprehensive performance measurement system was vital to realize efficient and effective government operations. Changes were urgently required in enactment of new methods of management in our government departments. There was no efficiency plans applied to government departments.2 Even reforms were not planned properly. Instead of reforms being an on-going process they were on an ad hoc basis. Thus, the system suffers immensely. The pressure to respond to change was increasingly being felt at all levels, including top management. It was widely recognized that there was an urgent need to raise the national skill base as the critical element in the drive to improve Pakistan's international competitiveness. It was being reflected in the GOP's recognition of the need for continuous lifetime learning for those employed in the public service. Continuity and change also set out demanding program of change. Increasing pressure on resources and demand for better quality public services requires a continuous improvement in the performance of the public service. This improvement had to be sought as the scale and pace of change accelerates in an increasingly competitive global environment. The public service must had foresight and vision, joined with knowledge and experience. Civil servants, not only need to keep abreast advances in science and technology and other relevant fields, they must also deepen their comprehension of change. The public service will therefore need to make better use of

See unpublished document of the Good Governance Group, Planning Division, Government of Pakistan, 1998. 2 Ibid.

Reform of the Public Services in Pakistan

6.

7.

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8.

75

its employees. More widely, civil servants need greater computer skills to handle the data associated with these advances, and the important changes in accounting practice to be introduced. Better management skills will ensure that necessary change was implemented efficiently and quickly. The GOP must believe that an overall change towards better performance was needed if the public service was to meet the challenge of continuous improvement in an increasingly fastchanging world. A new program for training and development across the public service was launched. It was very well recognized that there was an urgent need to improve the skills of the public service personnel in order to improve the country's international competitiveness. The GOP lays particular focus on those dimensions of capacity building that mainly focus on management structures and personnel. The GOP shall implement a reform package ensuring that the public services perform effectively, efficiently and responsively. Accordingly, a program of action for training and development across the public sector was being envisaged. Personnel management weaknesses were accentuated by problems of finding the right man for the right job. For proper development, appropriate knowledge base and management skills had to be acquired. Countries, like Japan, had arisen because of attaining excellent management skills. For Japan, lack of capital or even physical resources did not pose an insurmountable obstacle on the path of development and prosperity. The ability to skillfully manage existing resources was the key to success. Personnel management had become a critical area that needs to be emphasized. In the public as well as private sector, efficiency requirements demand change. Personnel management weaknesses were accentuated by problems of finding the right man for the right job. Some major areas of weaknesses had emerged as problems had surfaced in the fields of economic, debt, financial, and project management, and tax administration. Operational excellence requires efficient management. Human resources were an organization’s most important aspect. In line with this philosophy, the civil service fails to adequately focus on human resources development. Career development, enhanced training, performance appraisal systems were inadequate. Training must be a continuous learning process. Knowledge and skills of officers need to be continuously upgraded.

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9.

10.

3

Ibid.

Training does not enable civil servants to cope with increasing job demands and to achieve greater levels of performance. Other than the training in CSS academies or military services, the training of departmental officers was largely insufficient. The GOP’s strategy at capacity building mainly focused on management structures and personnel. The reform ensured that the public services perform effectively, efficiently and responsively. The GOP shall create a performance-based and knowledge-driven system that was both efficient and effective. It was adopting a scientific approach to recruitment, advancement, remuneration, and evaluation of the public service. The GOP shall recognize the urgent need to improve the skills of its personnel to improve the country's international competitiveness. To achieve excellence in the public service, a new approach was implemented. It shall lay particular focus on those dimensions of capacity building that mainly focus on management structures and personnel. Significant effort and investment was put into improving quality throughout the public service. There was an ongoing focus on providing better service to customers, achieving standards, and increasing efficiency and effectiveness. Linking people management, process improvement, and value for money and service delivery will provide the new emphasis on training. A comprehensive program for training and development across the public sector was to be developed. Integral to the new approach was the requirement that the training and development of all employees at all levels was addressed. The costs of implementing the new approach will vary significantly between organizations. The GOP acknowledges that implementing the new training emphasis can mean a sizeable investment, not only in money terms, but also in time and personnel resources. But it was confident that it was an investment, which will yield benefits for state organizations. Personnel management weaknesses were accentuated by problems of finding the right man for the right job. Some major areas of weaknesses had emerged as problems had surfaced in the fields of economic management, debt management, financial management, project management, tax administration etc. 3

Reform of the Public Services in Pakistan (i)

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11.

12.

4 5

Ibid Ibid.

77

A new system of pay progression was introduced. To reinforce the arrangements for merit based incentives and rewards, it was proposed that pay progression through annual increments be linked to satisfactory performance rather than remain an automatic feature as at present. There was a fast track for achievers. Merit, for too long, had been relegated to a secondary position resulting in a public sector that does not respond to public needs and creates an aura of despondency. The Government shall introduce an accelerated promotion program. Pay progression itself may not be sufficient to retrieve merit from the dead weight of seniority. The complementary measure of accelerated promotion was equally necessary to draw it out. In the existing ACR Form, there was a provision for distinct assessment of high performers. Such assessment without the measures being presently contemplated was often subjective. Besides, the existing rules do not permit selectors to act up to such assessment even if it were objective. To provide incentive to the high achievers, it was proposed that the existing service rules/promotion procedures be revised to cater for accelerated promotion of public servants whose high performance in examination, training courses, attainment of the objectives of the organization and high rating for individual qualities, qualify them for it. To invest this recommendation with substance, it was proposed that the top three government officers in any departmental/service examination were declared eligible for accelerated promotion provided:-4 (i) He/she meets half the prescribed service length for promotion; and (ii) Fulfills other criteria laid down for promotion i.e. judgment of the Selection Board/Committee and proportion of credit assigned on the basis of ACRs. Individual performance appraisal systems were antiquated. The ACR system was modernized. An appraisal system, which places emphasis on a more comprehensive, fair and objective evaluation of annual work outputs and individual performance were designed. Half the weightage of assessment were on performance while the remaining half was on potential of the candidate.5

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Sohail Mahmood 13.

14. 15. 16.

17.

18. 19. 20.

21.

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22.

23.

6 7

Ibid. Ibid.

The finest officers were to be posted as faculty members and heads of training institutions including NIPA, Administrative Staff College, and Civil Services Academy. These institutions may be restructured to cater to current and future requirements. Additionally, LUMS, NUST, GIK Institute, all in the private sector, was put to use for retraining of officers. There was strict enforcement of policy of promotion linked to successful training. All professions were provided equal opportunities for career advancement. Senior positions in Federal Secretariat, autonomous bodies and other attached organizations were opened to all those eligible through horizontal mobility. The CV’s of all officers were to be maintained in a computer database in the Establishment Division. This database was used in making plans for postings and transfers, in accordance with job descriptions and TORs of officials.6 Penalization for failure to attain qualification on training abroad was re-introduced. Concerned departments shall carry out formulation of work targets and responsibilities for each individual (a job description). The annual work target of an individual was set only after the targets and performance indicators of the organization had been established. Necessary guidelines were provided to facilitate Government agencies in developing of annual work targets for each category of civil servants. Less attractive jobs and jobs in the backward regions were compensated. Circulation of officers can also serve as a mechanism for promoting national integration. Corruption laws, departmental rules, Establishment Division rules were to be streamlined. In order to provide discipline in departments and to mete out minor punishments the powers of the Minister were increased. A new setup to be called National University of Public Administration (NUPA) will function as the primary agency in the area of public sector training. The functions of NUPA were:7

Reform of the Public Services in Pakistan (a) (b) (c) (d)

24.

25.

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26.

27.

79

Coordinate all training and research activities in the public sector Conduct examinations for officials in the public sector Award diplomas, certificates and other academic distinctions Confer degrees on persons who had carried out independent supervised research, under prescribed conditions. Degree candidates will have to complete relevant course work elsewhere and had to pass a written qualifying examination. (e) Undertake quality research on issues of governance and public administration. A Government Services Act was passed to include the following provisions: Prohibition of unnecessary transfers. A minimum period of three years service at a particular post would become law; the principle of merit in recruitment and promotion of government servants were assured. All normal recruitment of government officers was through the Federal Public Service Commission (FPSC). Lower staff was recruited directly by concerned departments or agency/corporations. Greater transparency and fairness were ensured. The Government shall reconsider the quota policy. All quotas, it was argued, were inherently unfair and discriminatory. People from backward or rural areas and minority provinces do not had a claim for a job on the basis of their domicile alone. Justice demands that all applicants be treated at par: rural and urban; backward areas and developed areas; and all provinces of the republic. The principle of merit was too fundamental to modern bureaucracies and cannot be compromised. Political considerations were not acceptable as a remedy for past failures. Therefore, the quota policy was reexamined. Lateral entry into the government services were allowed once again. Jobs requiring skills and experience more readily found in the private sector were recruited directly. Exchange of personnel between the private sector and the public sector were encouraged. Rigid boundaries between the two sectors were not conducive to better mutual understanding and appreciation. Performance will only improve if public servants were well paid. There was no consistency between the packages being offered by the public and the private sector. A comparative analysis of remuneration available will show consistent deterioration in real incomes of public sector officials. A balance was achieved to attract professionals in the system and avoid perverse incentives for corruption. The GOP

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28.

29.

30.

31.

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32.

33.

8

Ibid.

realized that without progress in this area all other efforts at reform of the public sector were doomed to failure. A Pay Commission was instituted immediately for the purpose of recommending salary increases for the civil servants. There was inequity in the present system of fringe benefits leading to a tradition of irregular interventions in getting fringe benefits. The honest and the principled were victims in this environment. Monetization of fringe benefits may be started in phased. A system of performance contract with officers was recommended for heads of divisions and attached departments. The successful among them were provided bonuses based on performance evaluated on the basis of mutually agreed contract keeping in view the major targets to be achieved. The CSS examination system selects qualified graduates through an open competition. However, much more needs to be done in the area. The exam was being improved by making it more difficult, exact and relevant to the needs of the contemporary Civil Service. For the time being, the GOP was encouraging the best applicants from all backgrounds. In time, it was going to gradually increase the proportion of recruits with a scientific background; especially social sciences. The training of newly recruited officials at the Civil Services Academy was being revamped. This emphasis was an integral part of the GOP's effort to increase the quality of the Civil Service at every level, including the entry-level. Secondments or deputation appointments were being encouraged. This also included using private sector Secondments in departments and state enterprises on an ad hoc basis to work on project teams. Such exchanges contributed towards better communications and a better mutual understanding of both the needs of the GOP and the business sector. But, just as importantly, they brought fresh insights, specialist skills and different attitudes into the process of government itself. The GOP was the richer for this experience. All departments and state enterprises shall keep their skill-base under continuous review and shall take actions to recruit and develop staff to meet changing needs. There were four areas in particular where action was needed in pursuit of departmental objectives: 8 (a) A

Reform of the Public Services in Pakistan

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34.

35. 36.

81

sustained commitment to awareness training and development opportunities for senior staff to help them understand the environment in which they were working and keep pace with external developments, for example in relation to scientific and technological change; (b) A flexible approach to recruitment particularly at senior levels; (c) The continuing development of a stronger managerial culture. More emphasis on professional management training and qualification. The new emphasis was on developing awareness training opportunities. An increased awareness of the context in which the civil servants work was important for staff at all level. The staffs in departments and state enterprises needed to understand better the impact of the services their organizations provide. The pace of technological change means that there was an ever-increasing need for the public services to be fully aware of development that may impact on their future work. This was particularly true for development in engineering, technology and science and technological understandings enabled individuals to be intelligent workers. They could better see potential for improving working practices and service delivery. Awareness training also improved understanding of the international environment in which the work takes place. In addition, a proper appreciation of the significance of core values of the public service was to be kept in the forefront of the minds of civil servants. All departments shall identify areas where senior staff and the organization will benefit from better awareness training and will target training as appropriate, from seminars of all staff or for particular groups of staff to customized induction program for individual taking up new postings. The CV’s of all officers were being maintained in a centralized computer database and were used in making plans for postings and transfers, in accordance with various job descriptions and clearly defined Terms of References (TOR). Streamlining corruption laws, departmental rules, and Establishment Division rules for discipline in departments was being emphasized. The ACR system was being modernized. An appraisal system, which places emphasis on a more comprehensive, fair and objective evaluation of annual work outputs and performance of civil service personnel, was being designed. Work of an individual was measured in terms of time spent, quantity and quality of outputs. Detailed

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37.

38.

39.

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40.

41. 42.

weightage be given for key activities in different categories of employment. The ACR form was being revised to suit the change requirements of various public services. The ACR was made available to the assessed. However, third party restrictions were still applicable (i.e., no other person will had access to the ACRs, other than the assessed). The policy of the “Big Shuffle”, a remnant of the Martial Law era and a standard practice in Third World authoritarian regimes, was discarded. The shuffle alluded to constant transfers of state officials, which created great uncertainty, anxiety and apprehension in their minds. In the past officials had to endlessly maneuver to get next postings “fixed” or to stay in their place for long. Deliberate transfer of some officials from place to place had wrecked the efficiency and morale of the public service. Efficiency of all government operations suffered as a result. Therefore, all too frequent transfers were being prevented. All appointments, postings were for a minimum fixed period and free from external pressures. Tenure of posts was being provided. The inequity in the present system of fringe benefits was being discontinued. Monetization of fringe benefits was being started in phases. Special pay increments were being provided to efficient and hard working officials whose performance was found to be consistently excellent for a minimum stated period. Performance contracts were being instituted at the most senior levels of the government on the basis of which a system of bonuses was being put in place. For example, most heads of state enterprises and autonomous organizations will fall under this category. Formulation of work targets and responsibilities for each individual officer (a job description) was being formulated. The work target of every officer was being established through the mechanism of an open discussion between the supervisor and the officer to be appraised, like done in the Army. The annual work target of an individual is set only after the targets and performance indicators of the organization had been established. Clear career paths were being determined and overall across the board career planning was being strengthened. The new approach assumes that civil servants were worthy of trust, were generally honest, capable and desirous of excellent performance

Reform of the Public Services in Pakistan

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43.

44.

9

Ibid.

83

and that the reason they were not able to do so was because of the dearth of appropriate rewards. Instead of emphasis on negative sanctions the GOP was emphasizing an elaborate incentive and reward system for promoting excellence in the public service. Thus, the priority was on the "carrot" side as opposed to using the "stick" side only. Also, building trust was a fundamental value of any good governance system. This does not mean to suggest that punishment was being ignored altogether. Far from it. The GOP was streamlining and strengthening, wherever possible, corruption laws, departmental rules and procedures, and Establishment Division rules. Strict discipline was being imposed in all state institutions. Discretionary powers of officials were being curtailed and were eventually eliminated. The power of federal ministers to take disciplinary action against recalcitrant officials was being augmented. The current practice of designating officials as an Officer on Special Duty (OSD), purely as a form of mild punishment should be ended. Thus, corruption and sloppy work was being punished more effectively. Training needs to be revamped throughout the civil services and brought under better control. For a meaningful improvement in this area, the GOP had established the National University of Public Administrate (NUPA). The NUPA is the primary agency in the area of civil service training. Other functions of NUPA were:9 (a) Coordinate all training and research activities in the public sector; (b) Conduct examinations for officials in the public sector; (c) Award diplomas, certificates and other academic distinctions; (d) Confer degrees on persons who had carried out independent supervised research, under prescribed conditions. Degree candidates will have to complete relevant course work elsewhere and had to pass a written qualifying examination. (e) Institute and award research fellowships, assistantships and scholarships; (f) Undertake quality research on issues of governance and public administration; (g) Establish links with international institutions of similar nature for conducting joint research projects.; (h) Collaborate in establishing joint training Programs with foreign institutions. A new system of pay progression to reinforce the arrangements for merit-based incentives and rewards and as such introduction of an accelerated promotion Program was under consideration. Reforms in

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Sohail Mahmood this area included revision of the existing service rules/promotion procedures which catered for accelerated promotion of public servants whose high performance in examination, training courses, attainment of the objectives of the organization and high rating for individual qualities, qualify them for it. An ACR system placing emphasis on a more comprehensive, fair and objective evaluation of annual work outputs and individual performance was being designed. 10

45.

46.

47.

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48.

10

Ibid.

The GOP had decided to vest FPSC with the authority to make all appointments in BS-11 to 15 under the Federal Government. The FPSC was presently empowered to make all appointments in grade 16 and above. The provincial governments had also been advised to follow in the center's footstep by delegating similar powers to their respective public service commissions so that recruitment could be made on merit. Lateral entry into the government services was allowed once again. Jobs requiring skills and experience more readily found in the private sector were recruited directly. Exchange of personnel between the private sector and the public sector was being encouraged. The GOP believes that rigid boundaries between the two sectors were not conducive to better mutual understanding and appreciation. The GOP shall meet the long-standing demand of the government employees for a salary increase. It recently announced a 25% rise in basic salaries of all government employees up to grade 16 and 20% increase for grade 17 and above. The total wage bill was estimated to be at Rs100 billion. In order to achieve excellence in the public service the GOP was implementing a strategic program to develop human resources in the public service. For the purpose international standards for the effective training and development of an organization's employees was employed. A competency and skills audit scheme was being initiated to determine the training needs of all the departments. A dialogue had been initiated with the corporate sector for incorporating their best management and human resource practices into the public service. The GOP shall identify good practices and develop it further in other departments, wherever possible.

Reform of the Public Services in Pakistan 49.

50.

51.

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52.

11

Ibid Ibid. 13 Ibid 12

85

All departments and state enterprises shall keep their skill-base under continuous review and take actions to recruit and develop staff to meet changing needs. It was necessary to raise the level of skills, awareness and flexibility of the staff at all levels across the public service. The training programs should give all individual civil servants more responsibility for their own career development. The GOP wanted all state enterprises to develop training programs that fulfill the following conditions:11 (a) Training programs had been designed by employers and were based on existing best practice, against which organizations can be assessed.; (b) They offered focused training and development of the staff to achieve organizational goals; (c) Action to develop and use necessary skills in a well defined and continuing program; (d) Evaluation of progress towards goals, value achieved and future needs; (e) The GOP shall give a high priority to costeffective, better-targeted training, which offers value for money. It shall provide open and distance learning options offering flexibility. All departments must fulfill the requirement that the training and development of all employees at all levels were to be addressed. For many organizations, the major benefit of the approach should arise not from examining the roles and needs of senior management, but from focusing on the roles of the majority of their staff, and providing them opportunities to develop and grow in line with the organization's needs. The following benefits were to be demonstrated by a sharper focus on training and development:12 (a) Higher productivity; (b) More skilled workforce; (c) Better corporate image; (d) Better customer service; (e) Motivated workforce. All departments and state enterprises will set targets, quantifiable wherever possible, for improvement performance in these areas and monitor progress. These targets will reflect differing departmental functions and priorities. For the GOP was looking to departments to ensure, through their action plans, that they were addressing each important area, as necessary. Overall, in key areas of the public service, the GOP expects to see measurable improvements in:13

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Sohail Mahmood (i) (ii) (iii) (iv) (v)

(vi)

(vii)

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(viii)

(ix)

The use of open recruitment and inward Secondments or deputation. The take-up of other awareness training opportunities. The number of civil servants on both short and long-term assignments in external organizations. Mobility between departments and state enterprises and with other public bodies. The number of civil servants with relevant professionals or vocational qualifications will increase by at least 10% every year. Thus, the number of staff with such qualifications will work in areas where they were directly applicable, such as engineering, technology, science, customer service, IT, economics, law, statistics, purchasing, finance, audit and accountancy. Progress against these indicators was monitored centrally, drawing on information from departmental action plans as appropriate and from information collective centrally about the senior public service in the Establishment Division. The GOP will monitor progress in this area not only because it was essential that key senior policy advisors and administrators rise to the challenge, but because it expects senior administrator to give a lead to the rest of the civil service. Departments and state enterprises shall report progress against these targets in their action plans. Progress across the public service will continue to be monitored by the GOP. The GOP, in association with the Management Services Wing, Cabinet Division, will promote and support best practices. The ACR system was modernized to suit the changed requirements of the public service. The appraisal system places emphasis on a more comprehensive, fair and objective evaluation of annual work outputs and performance. Detailed weightage given for key activities in different categories of employment. For promotion purposes, only 50% weightage be placed on the ACR, the rest on overall potential of employee. Each officer builds up a curriculum vita that was readily understood. CVs of all officers maintained in a central database in the Establishment Division. The database used in making plans for postings and transfers, in accordance with job descriptions.

Reform of the Public Services in Pakistan (x) (xi)

(xii)

(xiii)

(xiv)

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(xv)

87

Job description for each officer was in line with departmental mission statement. Provide a work culture, which encourages learning and offers equality of opportunity. Devise systems of recognition for learning achievement, and formulate training schemes to improve staff performance in line with future anticipated needs. Inequity in the present system of fringe benefits was curtailed. Phased Monetization of fringe benefits, by taking simple examples first, and then moving towards difficult ones. A voluntary system of performance contracts for senior officers, in which they were provided bonuses, based on performance. The contracts were mutually agreed. Clear targets set and evaluated annually. A competency and skills audit to determine departmental training needs. New human resource strategies to match departmental strategic objectives. A high priority given to cost-effective, better-targeted training, which offers value for money. The strategies focus on performance improvement, improving skill-base and expertise, and behavioral change.

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Chapter 16

A MODERNISATION PROGRAM OF THE SERVICES OF THE GOVERNMENT OF PAKISTAN

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Quality management provides the foundation for the inculcation of a culture based on quality in all public organizations. All government agencies shall implement quality management programs in an integrated and systematic approach. Excellent performance was duly recognized and rewarded by various awards. It was expected that a number of provincial and district offices as well as local authorities will exhibit excellence in various aspects. The GOP will establish a National Public Service Modernization Unit (NPSMU) to plan and implement a comprehensive modernization program of the public services.

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Chapter 17

THE NATIONAL PUBLIC SERVICE MODERNIZATION UNIT (NPSMU) VISION The NPSMU was established to achieve excellence in the public services.

MISSION STATEMENT

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The NPSMU envisions assisting the Government in building the public sector’s response and service capability to a high standard. This standard will hopefully be both efficient and effective in fulfilling the various needs and requirements of the people.

ROLE The NPSMU shall play multiple roles:1 1. To creating public awareness of essential governance issues. 2. Provide a platform for a meaningful discourse and debate. 3. Development of a reform agenda for providing good governance. 1

Ibid

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Sohail Mahmood 4. To assist the Government in implementing the reforms 5. To help monitor the changes incorporated by reform measures. 6. To arrange for timely feedback response mechanism by developing a public/private initiative. Civic groups were involved in this exercise on a continuous basis. 7. To create a scientific mechanism through which periodic evaluation of reforms is undertaken. 8. To report on the outcome and effectiveness of reform measures undertaken by the Government through quality research. For this purpose, a research facility was established. 9. To create an efficient, effective and customer-oriented public service by optimum utilization of available resources in line with the GOP reform agenda program. 10. A nucleus for coordinating all existing reform efforts 11. A catalyst and primary agent of change 12. A facilitator in administrative reform programs 13. A central agency in government computerization and office automation 14. A consultancy in organizational development

FUNCTIONS

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In performing its role and responsibility, NPSMU undertakes the following functions:2 1. 2. 3. 4. 5. 6.

Improvement of Productivity and quality management Strategic IT systems planning Simplification of system and work procedures Financial management systems review Primary access point for Government Services Link on the Internet An electronic library facility

AREAS TO BE FOCUSED 1. Performance Indicators of Public Sector Organization. 2. Training Modules for Public Servants.

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3. Client Charter and Customers needs. 4. Modernization of Reporting System on Critical Indicators of Good Governance. 5. Debate on Major Public Policy Issue 6. Civil Service Reforms 7. Public awareness Campaign through national Media 8. Total Quality Management (TQM) Culture in the Public Sectors. 9. Issues of Corruption, Mismanagement in the Government Sector 10. The Employment of Information Technology in Government Organizations. 11. Quality Higher Education. 12. Conservation and Sustainable Development.

STRUCTURE The NPSMU shall be a part of the Planning Commission. It shall consist of five cells:3 (i)

Modernization of Financial Management Systems

Responsible for initiating new methods, procedures, rules and regulations and reviewing existing methods, procedures, rules and regulations pertaining to financial management so as to enhance efficiency, transparency, and accountability in the public service. (ii)

Work Systems Cell

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Responsible for programs aimed at improving the efficiency and effectiveness of systems and work procedures and their simplification. (iii)

Information Technology (IT) Cell

Responsible for fostering the use of IT in the public service. (iv) 2 3

Ibid Ibid.

Implementation Cell

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Responsible for monitoring and evaluating the implementation of institutional reform directives. Productivity and quality efforts were going to be systematically monitored and evaluated by the NPSMU. It was expected that with the implementation of the quality program several outstanding state agencies will soon emerge. The program shall create a more effective and efficient organizational structure to deliver better public services. The NPSMU will operationalization the reform strategy through the implementation of the following measures: The GOP shall introduce various programs and implement them in consonance with its effort to provide quality services to the people. Productivity and quality efforts also need to be monitored and evaluated. Towards this end, public sector corporations and agencies were required to measure their performances at the individual and organizational level. Through this approach, each civil servant will strive to complete the job entrusted to him or her in the most efficient manner. A program was initiated to monitor the implementation of performance measurements among public sector agencies. Quality management was an important area of emphasis because it shall provide the foundation for the inculcation of a culture based on quality in all public organizations. In early 2007, a number of guidelines were issued to assist Government agencies at all levels in implementing its quality management programs in an integrated and systematic approach through Total Quality Management (TQM). This effort shall indicate a significant result through the emergence of a number of outstanding agencies in the future, hopefully. Beginning in 2007 excellent performance shall be duly recognized and rewarded by various awards. It was expected that a number of provincial and district offices as well as local authorities will exhibit excellence in various aspects.

Chapter 18

THE NATIONAL PUBLIC SERVICE MONDERNIZATION UNIT (NPSMU) WORK PLAN STAFF The NPSMU was staffed with officials of various professional orientations. The range of expertise and skills varies form financial management, organizational development, management sciences, business administration, and public administration to economics, information sciences and accountancy.

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As a deliberate measure, no permanent staff was hired. Only short-term (6 months) to long-term (2 years) contracts was given out. When will the NPSMU become functional? It was envisaged that NPSMU would become fully operational by January 1, 2007. The program will create a more effective and efficient organizational structure to deliver public services by adopting known management principles. The program shall operationalization the reform strategy through the following measures: (a) (b) (c) (d)

Mission Statements Standards Targets Value for Money

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Sohail Mahmood (i) (ii) (iii) (iv) (v) (vi) (vii) (viii)

Efficiency Plans. Performance Indicators Departmental Benchmarking Exercise. Employment of Business Excellence Model. Departmental Scrutiny. Quality Control Circle. Performance Management Studies. Strengthening the implementation of Total Quality Management (TQM).

The NPSMU will chalk-out a detailed plan for the purpose.

A. MISSION STATEMENTS Each department or organization shall have: A mission statement covering its role, clients, objectives, and incentives for raising efficiency of employees.

B. STANDARDS Each department shall state explicit standards of service that can be reasonably expected from it. Actual performance against these standards was monitored.

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C. TARGETS Targets were quantified objectives set by the administration of an organization to be accomplished in the future. Targets might also be in the shape of milestones. For example, to complete a project by a certain date.1 Targets were insignificant features of performance measurement. They were the keys to maintaining the pressure to improve performance. All Departments/organization will set annual targets, quantified wherever possible, for improving performance. Targets should ensure that they cover the right areas in terms of the results they 1

UK National Audit Office, Performance Measurement: What to Look for in VFM Studies, 1988,8

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want to achieve; were set at a sufficient stretching level; were stated in such a way that success or failure can be easily measured; were realistic or achievable; and must demonstrate a trend towards improved value for money, and standard of service.

Key Questions Had targets been selected for key activities? Were targets meaningful and clear? Were targets periodically revised? Was the target setting process well founded? What were the consequences for not meeting targets? These targets will, properly, reflect differing departmental functions and priorities. The Government was looking to departments/organizations to ensure, through their Action Plans, that they were addressing the most significant areas regarding overall performance as necessary. The MSW/Cabinet shall help departments in this domain.

The Target Setting Process The target setting process was basic to good performance management. The primary criteria for a well-established target setting process were that targets should be challenging, objective, continuous, optimal, and comparable. 2

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Challenging A balance needs to be achieved between challenging targets and fairness. If targets were too exacting, and as a result they were rarely if ever accomplished, then the administrators that were trying to meet them shall look into these targets were irrelevant. If on the other hand, the targets were too easy to achieve then they shall serve little purpose. Such targets were unlikely to assure enhancement and, on the contrary might promote carelessness. If targets were not sufficiently

2

UK National Audit Office, Performance Measurement: What to Look for in VFM Studie,16

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challenging one can expect to see performance significantly above the target level on a regular basis.3

Objective Targets should be objectively set in a manner that they support the Ministry’s objectives. Target setting was part of the agency planning cycle. Targets were set after investigation of past performance, review of future prospects, and options available to the organization.4

Continuous A degree of permanence was required for the exercise. One should be able to gauge trends from year to year. Performance measures should be changed only when required.

Optimal All organizations shall strive for good VFM and set targets at an optimum level within resource limits.5

Comparable

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In establishing targets comparisons should be possible within organizations and with other organizations considered as excellent performers.

Targets Should be Clear and Meaningful Targets should be designed in such ways that they were meaningful and measure what they purport to measure. They should be clear and definite. There 3

Ibid. 17. Ibi.18 5 Ibid, 17. 4

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were also related questions of whether targets can be met by staff when they were unable to affect the circumstances, which effect delivery. The issue was likely to be most applicable to administrators at the operational, rather than strategic level. Unless administrators control over most of the factors, which influence a meeting a target, the target was not likely to be practical. 6

Were Targets Reviewed and Revised on a Periodic Basis? Targets and performance against targets were reviewed regularly by the Government. If targets regularly achieved, the Government would expect to see them revised to make them more demanding. For targets that were not met, the Government shall expect to see documented explanations as to the reason why it so happened. Also, it shall require from the organization its intended action to be taken to meet the targets.

The Consequences of Not Meeting Targets Thorough analysis was made before judgment on the matter. There were cases in which targets were associated with salary or payments and financial penalties or other sanctions applicable if and when targets were not met. The Citizens' Charter program shall encourage state enterprises and organizations to compensate customers if targets were missed.7

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Criteria for Designing Targets, Monitoring Performance and Presenting Results:8 Clear: Targets should be clear, intelligible and exact. Each definition should be clear-cut and explicit, leaving no room for argument. Auditable: Targeted performance data should be recorded in a manner that the figures were auditable. Relevant: The targets should be able to direct the organization towards the achievement of its strategic objectives. 6

Ibid. 18 Ibid, 20. 8 Ibid, 37. 7

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Balanced: Targets should be balanced to cover dimensions for output, quality, costs, and time and should not lead to unwanted distortion of behavior. Detailed: They should be set with a sufficient degree to detail in order to send useful signals to managers. Focused: Key targets should be few in number, to ensure the right degree of focus from managers and to give management sufficient freedom to manage.

Setting Targets Objective: Targets should be set objectively by a formal process, and in the overall interest of departmental policy. Stretching: Targets should be stretching but achievable and fear. Their achievement must be under the control of their manager and the resources at his disposal. Stable: Balancing optimality, the targets should have some degree of continuity and stability, for ease of management, and presentation to customers. Optimal: When setting a target, a view should be taken of what its optimal value should be. This then becomes a goal, and the agency need not, and in some cases, should not necessarily go much beyond that level. Comparable: In seeking to stretch targets, comparison should be made with other agencies, recognized as good performance.

Presentation

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Validated: All published performance data should be independently validated. Well Presented: Statements of performance should be presented so that they were easy for managers and lay readers to interpret and use.

D. VALUE FOR MONEY (VFM) The Value for Money (VFM) perspective was that the customer knows what quality was and that public services need to be measured through the customer’s eyes in terms of economy (cost of the impact), efficiency (speed), and effectiveness (extent to which the objective was achieved). VFM takes stock of the fact that government departments and programs rarely face the discipline of

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the market. Public sector elements tend to establish their legitimacy through other means. VFM analysis, then, asks hard-nosed questions such as:

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(1) What value does the taxpayer or client gets for supporting the department or program? (2) Was the function supported needed at all? (3) If not, should the department be abolished? (4) If the government needs to continue to be involved in the service, could a private sector firm (“contracting-out”) nevertheless provide the function better? (5) If it cannot be contracted-out, could it be performed more efficiently and in a less costly way? Efficient and economical delivery of services within the resource constraints and independent validation of performance against standards. In the quest for an increase in quality of public service it was not essential that the Government invariably choose to cut costs. Value for money was widely recognized as a balance between cost and quality. Suppose we increase quality of a public service but at a phenomenal cost. Was it worth it? Given our budget constraints, most probably our answer would be in the negative. How does one balance quality and costs? This requires detailed review of departmental functioning. No two departments will had the same answer as they all perform different functions, sometimes incomparable. Essentially, we were on a learning curve the first year round. Hopefully, by the second year the issues would be more clarified. How does the Govt. monitor quality? The Government needs to be careful of an unnecessary heavy-handed approach to monitoring Civil Service performance. This was something new and was obviously suspect in the eyes of many government servants. Plus, old habits die hard. In Value for Money type of review the Government still had to make quality a central focus, notwithstanding the difficulty of operationalization of the concept in the state sector. Reviewing activities on a systematic basis was one of the most effective mechanisms for securing value for money Departments shall have to start efforts to promote a culture of quality and to encourage initiatives that enhance it. Departments or corporations shall have to evaluate price and quality together rather than separately when reviewing their performance. In seeking value for money the Civil Service shall adopt better management techniques. A wide range of considerations influences choice of techniques

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employed. The most urgent may be the need to minimize disruption of the core activity of the department or organization, and the likely impact on the staff. At the minimum, open, honest communication on objectives and actions was important to manage change in the departmental cultures. Top administrators and managers were expected to demonstrate clear commitment, leadership, and ownership of Government initiative. Overall, the case for change must be adequately explained to the staff.

I. Efficiency Plans

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Essentially, an Efficiency Plan was developed and employed as strategic management tool. An Efficiency Plan was a framework for making continuous improvements in performance. Departments/organizations had to make efforts to achieve better quality, cost-effective services. Organizations that employ a broad range of management techniques were seen as indicators of proactive management. Efficiency plans require a planned allocation of tasks to sub-units in accordance with the mission statement. Each agency/organization can publish its own Efficiency Plan as a stand-alone document or an integral part of its annual report. A quarterly report giving an outside assessment of achievements. Systematic and comprehensive performance measurements were employed for the purpose. A new appraisal system shall create for meeting the new requirements. Each organization will prepare a three-year plan to: (1) Set out how it intends to meet its objectives while staying within its running cost limits for the next three financial years. (2) Measures the effectiveness of the efficiency measures that had been taken in previous years, if any, both in assisting in controlling running costs and in improving performance in other ways. (3) Ensure that it was able to implement Government policy of promoting competition and encourage greater private sector involvement in the provision of Govt. services, as a means for improving value for money. (4) Show how it intends to measure performance and output in order to improve efficiency. (5) Bring together the full range of efficiency approaches so that they were able to establish priorities and ensure that they were focusing their efforts in the most effective manner.

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(6) Monitor the progress of reviews and actions throughout the year through Quarterly Reviews. (7) The GOP will publish an annual summary of such reports in a consolidated report. (8) The three-year Efficiency Plan shall prepare on an annual basis will pave the fundamental Strategic Review which takes place every five years. In taking an annual look at their efficiency objectives for the three years, organizations was in a better position to demonstrate progress in performance improvement.

II. Performance Indicators A set of performance indicators were developed for all departments and state organizations. Institutionalization of the mechanism for review to take place gradually. Measurements, both quantitative and qualitative, to assess organizational achievements, if any. Thus, the working of all Departments and Agencies/organizations was measured scientifically in terms of time-spent quantity and quality of outputs on an annual basis. Performance indicators applied were relevant, verifiable and suitable for each program and activity of the organization. Suitable benchmarks were designed for the performance evaluation.

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III. Departmental Benchmarking Exercise Government intends to carry out an exercise to benchmark the performance of departments against the private sector, wherever possible. The purpose of the exercise was to examine the value of benchmarking as a tool to support government’s continuing drive to improve the efficiency and effectiveness in the delivery of public services. Benchmarking helps in identifying the best practice. This can highlight the areas where civil service organizations can learn from the experience of others in meeting the challenge of improving the management of their operations within tight financial constraints. In addition, by building in an element of peer pressure amongst departments to improve and by challenging them to emulate the best, it can substitute (to some degree) for the real competitive pressure experienced in the private sector.

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The Comprehensive Annual Performance Evaluation Review will measure performance indicators that reflect, quantitatively and qualitatively, the sum total of achievements or failure, as the case may be, of predetermined targets.

IV. Employment of the Business Excellence Model The Business Excellence Model was a standard model of generic organizational performance for the purpose of benchmarking. It was essentially a model that reveals best practices and areas for improvement. The Govt. will carry out a pilot benchmarking exercise with the assistance of a private management consultancy hired for the purpose. 200 private sector firms developed the Business Excellence Model during 1989-91 under the aegis of the European Foundation for Quality Management (EFQM) across Europe. The model builds on other quality models developed in the USA and Japan. The model measures organizations against nine criteria; each weighted to take account of its relative importance in a quality organization. The criteria cover both the management activities of the organization (the “enablers”) and the results that it achieves (the “results”). The nine criteria and its relative weightage were as follows:

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Leadership (10%). Policy and strategy (8%). People management (9%). Resources (9%). Processes (14%). (50%). Business results (10%). Customer satisfaction (20%). People satisfaction (9%). Impact on Society (6%). (45%).

Total: Enablers

Total: Results

The model was adopted as a basis of business self-assessment. It provides a common framework for making comparison between management approaches used and results achieved. The model was adopted as a basis of benchmarking comparison in the Plan. Thus, the benchmarking exercise was meant to make it possible for the Govt. to measure performance in state organizations with others across the region. Better understanding of state organizations will identify areas

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for improvement. The Business Excellence Model was best understood as a tool useful to bring about significant improvements in performance of the state sector. Some of the approaches of the private sector apply equally to the area of public services. The exercise will also highlight areas of difference between disciplines of the public and private sectors. The Model will provide a structured framework, which will lead managers to consider their business in its totality and recognize interdependencies. The benchmarking exercise may indicate that even for organizations that were very different, in size, function and organization, it was nevertheless possible to seek common means of comparison or analysis to help in identifying best practice and areas of improvement. Benchmarking provides a way to extend this comparison to the private sector, and beyond the country. The exercise was launched starting February 2007. During the initial phase, participants might raise certain issues on the applicability of the Business Excellence Model. In specific, concept such as “competition”, “impact on society” and “customer” was difficult for some organizations to submit, given the nature of their work. Plus, the manner in which Government pursues departmental activity was different from the comparative autonomy held by most private organizations. However, it was gradually clear that these differences from private sector circumstances were often more apparent than real, and that after only minor assessment to definitions, the concept can be found to be applicable fully to the public sector. A pilot exercise will hopefully established that the model was valuable framework against to which evaluate organizational excellence in the public sector. Given the current situation of the public sector, the operational value of the self-assessment exercise against the Business Excellence Model was high, only in some cases. Management will have to be trained in applying the model.

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Next Steps (1) The NPSMU, GOP and MSW, Cabinet will coordinate for the purpose. The consent of management of selected corporations was sought before the project begins. The GOP will initiate the project. (2) PIA, PTCL, Sui Northern, PSO, OGDC, Fauji Fertilizer, Habib Bank was assessed in a pilot exercise. Representation from the state corporations to come from senior management, preferably from the planning section. The committee was composed of at least three individuals.

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Sohail Mahmood (3) The assignment was conducted jointly with a private sector management firm. The firm was identified by the NPSMU. A contract was negotiated for the purpose. (4) A database of best practice was established from the study. The report on the exercise was complied by the NPSMU. This report was distributed among all government corporations to help bridge the knowledge gap on the subject.

V. Departmental Scrutiny

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A scrutiny was conducted for the purpose of possible re-engineering of functions, in parallel with an assessment of how critical the function was to the organization’s mission. Departmental Scrutiny was undertaken to evaluate the performance of the state organizations or departments with a view to improve the efficiency and effectiveness of public services. In particular, to identify to what extent, through the introduction of new management techniques, government was able to: (a) Obtain better value for taxpayers’ money in the provisions of public services. (b) Delivery of quality service. (c) Provide users Generate innovative ways of providing services. (d) Enable staff to operate at higher levels of performance and with a greater sense of job satisfaction. (e) Brings together experience since launch, if applicable, or the last review and evaluates the performance of the Department or state organization; and its governance; and (f) Re-appraises the prior options considered before the Department was created, if applicable, taking account of developments since that time. (g) Provide the Ministry and the state organization or Department itself to look again at the arrangements which were put in place at launch, if applicable, or after an earlier review in the light of experience and to take account of any changes in external or internal circumstances. (h) Make recommendations for improvement. Also, it will provide a means of ensuring that the momentum of change was not lost. Scrutiny to normally take place at four-year intervals, although Ministers may commission an earlier scrutiny if circumstances change, for example, when privatization was regarded as a strong option.

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(i) Establish a better framework to be adopted for managing quality, as reflected by user requirements, covering each of the steps in the process. It can also assist in the revisions of the original framework document, if needed, to reflect the departments agreed objectives and managerial arrangement.

VI. Quality Control Circles (QCCs) The QCCs shall provide one of the tools of empowerment in the public sector whereby supporting staff was actively involved in the identification of operational problems and in recommending solutions. Through this process, supporting staff was provided the opportunity to utilize their skills and talents in initiating innovative ideas to increase the quality of services provided. Due to the importance of The QCCs, the management and the monitoring of its progress was restructured from 2007.

Next Steps

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(1) The GOP was given the responsibility of promoting and monitoring the progress in the implementation of The QCCs at all levels. (2) The GOP was made responsible for organizing the annual QCC convention for the public sector at the national level. (3) The NPSMU will encourage the establishment and implementation of QCCs. (4) Guidelines were issued by the NPSMU, in early 2007 for the purpose. (5) The NPSMU might collaborate with a private sector organization for the purpose. Consultants were hired for the program.

VII. Performance Management Study A Performance Management Study was a comprehensive management tool employed in assistance of improving organizational performance. Reporting information on performance was important because it provides the basis for the internal management monitoring and decision making. It also provides the means by which external accountability was achieved and performance was actively and effectively managed. Where necessary, the organization shall action to put things

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right. To complete the management process, the Government shall expect the achievement of organization to be fed back into the overall strategy of the organization. The NPSMU will spell out criteria for Performance Management Studies such as: 9 1. Strategic (measurement to enable monitoring of progress against the departmental strategic objectives) 2. Complete (measurement of efficiency, effectiveness, output, quality, service and financial performance) 3. Relevant (measure to be relevant to managers, department, and third parties); 4. Consistency in the terms used to describe and define targets, between years, between different targets and in comparison of other organizations) 5. Accurate (sufficient accuracy to enable judgment of performance level and in identification of significant changes from previous years); 6. Timely (measures to be produced promptly). There were numerous ways values can be achieved in performance management studies. They were: 1. 2. 3. 4.

Suggesting new and improved measures. Recommending approved measures for target setting. Drawing attention to gaps between actual and reported performance. Better and more accurate information collection and analysis and reporting. 5. Finding ways of closing the gap between planned and actual performance that might result in financial savings.

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The approach to designing Performance Management Studies was as follows: 1. Identification of key questions. 2. Application of appropriate techniques to answer these questions. 3. Arriving at well-founded and convincing findings and conclusions.

9

Ibid.

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Next Steps (1) NPSMU was given the responsibility of the implementation of PMS at all levels. (2) The NPSMU shall organize pilot Performance Management Studies in collaboration with a private management consultancy firm. Preferably, the selected state enterprise would be a blue chip state enterprise. (3) The NPSMU will encourage the establishment and implementation of PMS by conducting periodic workshops that shall include officials of various state enterprises targeted for the study. (4) Guidelines on PMS were issued by the NPSMU in early 2007 for the purpose. (5) NPSMU will select performance measures and targets and shall lay down criteria for reporting information. NPSMU will also approve performance. The Chairman, NPSMU will constitute a Committee for the purpose. (6) The NPSMU might collaborate with a private sector organization for the purpose. Consultants on short-term contracts were hired for the program.

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VIII. Strengthening the Implementation of Total Quality Management (TQM) TQM was a management process with an orientation towards satisfying customer need. It permeates every aspect of an organization's needs and permeates every aspect of an organization. It provides the basis for the transformation of the culture of the Civil Services, enabling it to strengthen and enhance its service delivery through improvements to systems and procedures, operational practices, organizational structures and work ethics. Under TQM, organizational structures become more flexible and were able to respond to the changing needs and expectations of customers. Systems and procedures were simplified to ensure better service delivery to customers. TQM enables civil servants to be imbued with the philosophy of "doing it right the first time" in carrying out their daily tasks.

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Chapter 19

THE PRINCIPLES OF TOTAL QUALITY MANAGEMENT

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Efforts to institutionalize Total Quality Management (TQM) into the work culture of the Civil Services was carried out through the implementation of NPSMU, GOP circular entitled "Guidelines for Total Quality Management in the Civil Service". This circular shall provide the methodology for implementing TQM in Government state enterprises. Emphasis was placed on seven management principles, which provide the basis for the successful implementation of TQM. The seven principles were:1 1. 2. 3. 4. 5. 6. 7. 8.

Top management support Quality strategy plan Customer focus Training and recognition Enhancing teamwork Performance measurement Quality assurance Capital equipment

1. TOP MANAGEMENT SUPPORT The implementation of TQM requires a comprehensive transformation in the operation of organizations, which can only be accomplished, with the support of

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its top management. The position of the top management, in terms of its power to make important and strategic decisions, makes it imperative that they initiate such change efforts. The commitment of the top management must be accompanied by their readiness to take concrete actions in terms of the formulation of a strategy best suited for their own purposes. The formulation of a Quality Policy was the first step towards the implementation of TQM. The policy was a written statement, which provides the direction for an organization in terms of the quality objectives with respect to its services and products to meet the needs and expectations of customers. The policy was the reference point in framing and implementing quality efforts throughout the organization. For example, the Quality Policy of two state agencies was: Capital Development Authority: CDA will promulgate the following pledge: "We pledge to become a model agency in development and service which places importance on customer orientation. Based on quality values, we will always uphold customer welfare and satisfaction by ensuring excellent work output at all times to achieve the aspirations of citizens".

Civil Aviation Authority (CAA): "We were committed towards making the CAA an excellent organization, providing services efficiently, effectively and of quality, fulfilling the aspirations of the local population and satisfying customer needs."

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2. STRATEGIC QUALITY PLANNING Strategic quality planning was an important prerequisite in ensuring that state enterprises produce quality outputs. Through strategic planning state enterprises were to identify accurately their customers prioritize customer requirements and determine outputs. The quality vision and objectives of the agency were determined. Strategies were formulated to ensure that they were in line with the demands of the changing environment.

1

Ibid.

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SAMPLE MISSION OF THE CIVIL SERVICES ACADEMY (CSA) With the objective of making the CSA as a Center of Excellence, we were dedicated and united in energy and thoughts to continuously lead and endeavor towards making CSA: *

A model of quality management in the public service.

*

A training academy capable of producing a model officer for the civil service based on the internalization of the code of ethics of the public service.

*

"Dedication, Honesty, Service, and Sincerity"

•

A training academy acknowledged in terms of effectiveness and efficiency in improving productivity of individuals through training.

•

A training academy renowned amongst the best in the region.

CORPORATE MISSION OF CSA

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To make the CSA a Center of Excellence for training. To achieve this mission all efforts was focused towards meeting five challenges as follows: (1) To make CSA a training academy renowned in Pakistan and the region. (2) To establish a mechanism, which was able to initiate individual development through the internalization of a culture, based on professionalism, excellence, integrity and positive Islamic values? (3) To develop CSA to a level recognized a model of quality management in the Civil Service. (4) To make CSA training academy that was recognized regionally in terms of effectiveness, efficiency and improvement of individual productivity. (5) To make CSA a training academy capable of producing model officers.

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3. CUSTOMER FOCUS Implementation of TQM works towards greater customer focus in government departments. In facilitating its customers, for example, a particular enterprise introduces information counters, hotline, and complaints units and dialogue sessions together with feedback from customers. The agency’s public relations office handles public complaints received through written and oral complaints even newspaper reports. The process for dealing with public complaints follows procedures clearly outlined by the department and readily available to the public. State enterprises provide modern facilities in their effort to provide efficient services. Agencies also produce information brochures to assist the public in their transactions with them. To ensure that the agencies provide quality services they institute workshops and seminars relevant to their operations.

4. TRAINING AND RECOGNITION

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Training in quality management was a prerequisite for achieving success in TQM. The implementation of TQM was dependent on a skilled and knowledgeable workforce. It was through proper training that workers become knowledgeable and skilled which was needed to produce excellent services. In a similar manner, recognition plays an important role in realizing TQM. In support of these principles, all public sector organizations establish their own training and recognition systems. This recognition was given in the form of quick promotions; the Departmental Excellent Service Award; offers for overseas and in country training opportunities; oral commendations during departmental meetings, etc.

5. QUALITY ASSURANCE Quality assurance focuses on planned and systematic actions for prevention of problems relating to quality to ensure desired outputs. The quality of products and services were assured when work processes and quality standards for every step in the production process was well documented. The TQM practices enable public sector organizations to reduce costs, improve work outputs, effect timesaving and increasingly enhance customer satisfaction. For example, a particular ministry might be able to reduce its

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operational costs through the reduction in the steps needed to get a particular task accomplished or the reduction paperwork needed for a particular task. This effort will contribute to the reduction time and energy of officials given to the task, reduction in printing costs and also costs related to managing the receipt and storage of such documents.

EFFORTS TO ENHANCE QUALITY MANAGEMENT SYSTEMS

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All state agencies continue efforts to improve the implementation of TQM by introducing ISO 9000 series of standards. These standards provide guidelines for the establishment of quality systems, which encompass organizational structures, responsibilities, procedures, processes and resources harnessed in implementing quality. The ISO 9000 series of standards to serve as guidelines for organizations to establish their own quality systems. The objective of these standards was to: (1) Provide confidence to customers on the consistency of product and/or service quality. (2) Achieve and maintain the standards of product and/or service quality. (3) Provide confidence to manage quality products and/or services. (4) Provide a credible tool of measurement for reviewing quality systems from time to time. (5) Enhancement of the TQM foundation and contribution towards continuous improvements in the public service. (6) Organizational Structure: The manner in which an organization was structured was important in determining the effectiveness of quality management systems. All state agencies will review their organizational structures for the purpose. Contraction or expansion of various functions was to be determined from the study. New units, task forces or committees were established wherever necessary.

8. CAPITAL EQUIPMENT Capital equipment such as buildings, machinery and vehicles were important inputs, which affect the quality of services provided. Equipment was maintained properly to ensure that they operate well during its life span. The maintenance of

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capital equipment, replacement of obsolete equipment, upgrading the capacity of equipment and renovations on buildings and other facilities was to be ensured by all agencies.

Chapter 20

NEW STRATEGIES Efforts will continue to be implemented to strengthen the culture of innovation in the Civil Service through the establishment of an "Innovation Bank" and ensuring follow-up action on innovations.

THE ESTABLISHMENT OF AN "INNOVATION BANK"

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The proposed "Innovation Bank" will serve, as a referral center where all documents on innovations submitted by Government organizations to NPSMU, GOP was kept. This will ensure that all information pertaining to innovations generated and the implemented in the Civil Service were readily obtained. Government organizations can now refer to this center to get information on existing innovations when carrying out their own improvement efforts and this will prevent the duplication of efforts and waste of resources.

FOLLOW-UP ACTIONS Follow-up actions and monitoring was conducted with relevant ministries to obtain feedback on the implementation of innovations made by organizations under them. Its objective were to ensure the standardization of innovations for the benefit of organizations doing similar types

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NEXT STEPS (1) (1). All agencies and departments to formulate a Mission, a Corporate Vision and Long Term Corporate Master Plan (2007-2010), which be communicated to every member of the organization. (2) All agencies will submit a Comprehensive Annual Performance Evaluation Review that will measure performance indicators reflecting, quantitatively and qualitatively, the sum total of achievements or failure, as the case may be, of predetermined targets.

V. INFORMATION AGE GOVERNMENT

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The GOP gives great importance to developing an Information Age government in Pakistan. In the past, progress in the field was hampered because there was no central coordinating agency. It was for the first time that an elaborate national IT policy had been formulated. The country's future will depend on how fast it incorporates IT developments. Through the development of IT, the GOP will inculcate the value of excellence, and increase productivity across the public sector. The planned IT infrastructure will facilitate the provision of value-added services, enhancement of performance and improvement of decision-making. The following initiatives had already been taken: 1. The employment of IT in the public services was focused on infrastructure development. Modernization Programs involving the use of IT were being planned meticulously and implemented in a systematic manner. Measures will also be undertaken to ensure integrity and uniformity in the use of applications through the introduction of international standards. The GOP believes that use of IT will had a positive effect in contributing towards the inculcation of a work culture based on excellence. Productivity will increase and there was greater uniformity and increased use of standard applications across the Public Sector. Thus, the enhancement of IT infrastructure will facilitate the provision of value-added services, enhancement of performance and improvement of decision making. 2. Under a new National IT Project a number of pilot projects had been developed for "electronic government” in the three major state departments: police, justice and district administration. The new

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4.

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5.

6.

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information system being introduced in the police department was going to link 1,300 police stations, the total across the country, into a single network of records. Thus, data regarding crime and other information was instantaneously available all over Pakistan through this computer network system. The National Data Registration Authority (NADRA) had introduced a registration system for the issuance of new computerized national identity cards, passports and permanent residency cards for overseas Pakistanis. The NADRA launched a new identity card scheme for overseas Pakistanis proving their original citizenship. This card was equivalent of the "green card" issued by the US government and will facilitate holders in traveling to and from Pakistan, buying property in Pakistan, and opening bank accounts, etc. This service was being launched as per demands of overseas Pakistanis themselves. The GOP will focus on the development of IT infrastructure. Programs involving the use of IT were being planned meticulously and implemented in a systematic manner. Measures will also be taken to ensure integrity and uniformity in the use of IT applications through the introduction of international standards. The GOP was also vigorously promoting electronic commerce and a special task force had been formed for the purpose. Representatives from the private sector and IT specialists were involved. The GOP was establishing an efficient record management system in the public service. Information was now speedily retrievable by those requiring it. Unnecessary delays were eliminated. Computerized file management system was being introduced in key ministries like finance and planning. On-line records management system was introduced in various departments like transport, police, education, health, etc. An improved records management system was guaranteeing that a fast retrieval of records through "one-stop facility" was created for essential services like telephones, gas, utilities, and water. The GOP was providing a much greater public access to state information. All current information sources on the computer network and Internet was linked in a giant network - Federal Government Link (FGL) - for easy success. The setting up of the FGL will facilitate local and foreign businessmen and investors in obtaining information on the administrations. The users were being provided with a choice in information retrieval whereby information can be channeled on-line, through fax or delivered to their required destinations. A small service

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Sohail Mahmood was being charged for this service. Citizens were also able to use the FGL as a resource center. Initially, the following type of information was being made available: a complete profile of all government departments and ministries giving their functions, top personnel, current laws governing their administration, service rules and regulations; various important publications of all departments and state agencies and their addresses including those of branch offices; commerce related information like, laws on business, trade export/import taxation etc. The FGL also includes derailed public interest information on PIA, Railways, PTCL, WAPDA, PTV, Pak. Radio etc. The information includes description of the services, the relevant conditions, forms used, payments charged and the names, designations and telephone numbers of contact persons; latest tender advertisements issued by the big government departments/agencies; current news which were considered to be of importance such as changes to the names and address of government agencies and information on any new developments in the public sector which were relevant to the citizens; information on import duties, export, opportunities available and regulations pertaining to export and sales tax on various items, which were contained in official customs and excise tax codes. The establishment of the FGL was in recognition of the needs of the private-sector and the general public for timely and speedy information. The FGL will provide an efficient and reliable information retrieval service. Thus, the various information contained in the FGL will lead to a more open and transparent government and alleviate the misconceptions about the state sector. 7. Efforts were already underway to create District Management Information System units in the districts, which will carry information that will help the police and the line departments to improve their working. The idea behind this initiative was to enable the district teams to work more efficiently and effectively by having timely access to all information related to their specific fields. 8. A development communication system was being developed to fill the vacuum of information flows between various departments, and also between the federal and provincial governments. There was a need for establishing a resource agency that will provide information on all activities in the area of development. The development communication system will collect, analyze, disseminate information relating to development issues, activities and processes. The objectives of the communication system are: (a) To promote debate on development issues

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among various target audiences; (b) To provide a unified, cohesive voice on development activities; (c) To develop linkages with current development communication systems employed by various departments and agencies and to induct them into the new system in a phased manner; (d) To build an in-house technical capacity for developing communication modules, especially for the electronic media. By its very design, the system was being gradually phased into the existing arrangements, building capacity along the way. The electronic media was effectively targeted for carrying specific messages to be prepared by the system. CD-ROM containing information on the GOP was prepared. 9. The GOP was organizing development Expos at the divisional level to bolster economic performance. The GOP was bringing all stakeholders together on one platform at the divisional headquarters. The purpose was to open new vistas for communication with different publics for the country. These Expos would involve and target divisional and district administrations, line departments, federal agencies, NGOs, international donor agencies, local business group media and local government authorities. It was providing a forum where stakeholders will share information. Expos will create awareness about development activities at divisional level and will identify resource wastage, if any. These Expos will also mobilize the local community for more effective participation in the development of the locality. 10. Information Technology (IT) was effectively used as a management tool for the promotion of good governance. IT was crucial in improving systems and work procedures of the civil service. The GOP envisages the creation of an information-rich society, which was an important prerequisite f movement towards greater economic development. Consequently, an emphasis on IT will enable the country to prepare itself to face the challenges of the new Information Age. Towards this end, it was critical that the civil service provides facilities for easy access to public domain data such information on rules and regulations, procedures, personnel, services of various departments or organizations. 11. The GOP will create an Information Age government by 2010. It will employ new technology to meet the requirements of business and citizens, and not fall behind technological developments. The GOP will modernize the business of government itself. The GOP’s goal was: (a) Furnish modern, efficient and appropriate means for business and citizens to communicate with government and to obtain services; (b) Make government a learning organization by developing a modern mechanism

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to store and disseminate information; (c) Continue to work in partnership with business and the NGO sector to promote better IT use; (d) Establish a secure Intranet within the government. Provide onward links to provincial and local authorities; (e) Establish a secure platform for the management of electronic government records. (f) From 2007, public services through the computer network were available 24 hours a day, seven days a week. The public was able to access these services in community centers and public libraries across the country. 12. From 2007, individual taxpayers and businesses were able to file income tax returns to the CBR and register for GST etc., over the Internet. The GOP will expand facilities further.

Chapter 21

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THE CENSORSHIP POLICY ISSUE The GOP should be formulating its Internet censorship policy. Like elsewhere, the governance of the Internet was problematic for the GOP. The pros and cons of cyberspace were being hotly debated the world over. As the use of the Internet had grown concerns about its uses and abuses had surfaced, and questions about whether and how governments might exert control over the "Net" inevitably had followed. Below were contrasting viewpoints and concerns about cyberspace. On the one hand were the Western libertarians who advocate free speech and were disdainful of any state intervention. These people were suspicious of government, disdainful of any censorship. Enthusiasts see the Internet as a sort of Utopia, not because everything on it was admirable, but because it was there at all. The Internet defies centralized authority; its mantra was "do your own thing".1 Thus everyone and anyone should be able to access the Internet with ease. This was the "great equalizer" of all times. On the other hand, were concerns about the control of the Internet? Theoretically, anyone could post information, but the reality was that government, corporations and academic institutions controlled the main content of the Internet. The ease with which it was possible to alter information or merely to shade the truth by selectively culling out unfavorable information was a real concern. The question was: who was the custodian of the world information? Although the Internet was supposedly available to anyone with a modem and the ability to use it, race, gender, income and age skewed the profile of users. Access was unlimited in theory, but the cost of the technology and the steep learning curve of the computer neophytes restrict it. If electronic communication were the

1

Kegely and Wittkopf, World Politics: Trends and Transformation, 6th ed. (New York: St. Martin's 1997), 252.

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future, what will become of the vast majority of people who can only stand by and watch the worldwide exchange of electrons?2 How will poor countries like Pakistan control the negative aspects of the Internet? A lot of filth and garbage in the form of pornography, violence and sex in songs was passed on the Internet like on TV and the cinema screen. What was acceptable in the West was not necessarily acceptable in the Islamic world. Islamic values were somewhat different than European. At least, Muslim countries cannot and will not allow the garbage in. These countries had the responsibility to protect their youth from the decadence of the Western culture. It does not mean to suggest that this was a blanket criticism of the West or the Internet. Only a part of it, the rest was admirable and to be copied. Islamic countries need to debate this aspect of the so-called Western cultural "invasion". Although the issue was legitimate there was needless paranoia about it. The issue needs to discuss it in a dispassionate manner. The problem had a technical dimension. Governments cannot keep the garbage out in the first place even if we want to. Screen filters and censors can be circumvented. Islamic countries need to cooperate at the regional level to solve the problem. The ruling governments owe it to the future generations. The GOP envisions an Islamic world region as a prosperous and vibrant area but built on its own value-systems not on imported Western ones. Again, this does not seem to suggest that all of Western culture was debased and worthy of rejection. Certainly not. The Muslims need emulate some of its aspects. It was on the issue of Internet's impact on society that the GOP begs to differ from the Western libertarian outlook. The GOP hopes that the West realizes that a totally homogeneous (read Westernized) global society was not conducive to the progress neither of humanity nor for global peace. Diversity, in cultural practices, was admirable and therefore should be encouraged. Remember there were no superior of inferior civilizations. They were just different. Let us develop in our own way in our own style. Let the Internet be censored by responsible governments.

2

Ibid.

Chapter 22

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CLUSTER COUNCILS The GOP had initiated a scheme to bring improvements in technology to the industrial sector to boost their international competitiveness. A number of clusters were being established in various fields that bring together the private sector, research and development institutions, and the GOP. These clusters provide cooperation to achieve improvements in technology, raise quality, reduce costs and assist the industrial sector to become responsive to changes in the conditions of the world market. The overall objective was to make quality the hallmark of industrial productivity through required supportive mechanisms. The main idea of a cluster was to develop a close relationship between private industrial concerns and the educational institutions through research oriented Programs that drive industrial growth. Essentially, it was an agglomeration of key industries, supporting sectors, infrastructure, and institutions that were interlinked and interdependent, generally because of some shared technological or skill base. The defining characteristic of a cluster was high connectivity, within the cluster; firms form strategic alliances with suppliers and even competitors. They also draw on a common labor pool, which serves to diffuse new knowledge and skills rapidly throughout the cluster. Firms in turn form strong links with local institutions, particularly universities. Outside the cluster firms were connected to a global network of subcontractors, affiliates and vendors. Among the most frequently studied examples of clusters were the information product cluster in Silicon Valley, the electronics cluster around Osaka and the software cluster in Bangalore. These regional economies were admired for their long-run strong performance and high rate of innovation. A main advantage of focusing economic policy on "clusters" instead of "industries" was that cluster-based policy places emphasis both on the health of

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the supporting industries and institutions and on links between them and leading, higher-profile firms. Pakistan's agriculture and industrial structure should increasingly take advantage of the competitive benefits provided by effective clustering of firms and, more generally, by increasing linkages among firms (subcontracting, specialization in components, etc.). Clustering can be especially advantageous to groups of small and medium firms, but was seen as more and more important even for fairly large firms, which aspire to compete in today's world markets. One way to look at clusters was to conceive of them as having a life cycle along which they were continuously emerging, expanding, and transforming. An emphasis on suppliers was one of the core features of cluster-based economic development. One reason for this was that around the world, large and small firms had increasingly chosen to out-source their sub-assemblies and services. Increased out-sourcing creates numerous market opportunities for highvalue-added suppliers of parts and services, each of which can often support firms across a number of different sectors. A second reason suppliers had become prominent was because of the increased importance of close buyer-supplier linkages. Suppliers develop specialized skills, while their ties to a number of different customers permit them to achieve economies of scale. Buyers had access to a pool of suppliers and can choose the most appropriate one for each project. Close cooperation was required for "just-in-time" scheduling on the production side and for meeting precise delivery schedules on the distribution side. Clusters were also a response to the global shift in competitive advantage to an era of knowledge-based industrial development. A major accompanied development was in the field of science and technology. The purpose of the scheme was to create a research culture by strengthening the research institutions in the country. The GOP was linking FDI and technology transfer initiatives to these clusters. The private sector was being involved in building the research network. The GOP will facilitate venture capital investments in these clusters. Research and development was coordinated among various departments to develop these clusters. The GOP was establishing several Industrial Cluster Councils to create a nexus between the country's education system and the job market. Pakistan must drive its industrial development on a cluster-based strategy in order to deepen the industrial structure around key strategic industries. To identify and focus on sectors with high growth potential, it was important to create regional clusters of industries based on significant small and medium enterprises (SMEs) presence, labor intensity, competitive strength and potential growth rate.

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For this purpose, in order to make access to capital within the reach of SMEs, all possible regulatory bottlenecks should be removed and a network of support institutions and experts to help address SME's technical marketing and managerial needs be developed as soon as possible. Technology improvements had to be brought into our industries to boost their international competitiveness. A scheme to create industrial clusters in various fields which will bring together private sector, research and development institutions, and the GOP, was established in high potential fields such as sports, surgical goods, engineering goods, textiles, chemicals, garments etc. These clusters will provide cooperative technological improvements, raising quality, reducing costs and making these industries responsive to changes in the world market conditions where quality was going to be the hallmark of trade. Given the shift in competitive advantage in favor of knowledge-based industry, a major strategic intervention was required in science and technology. As in other sectors, the purpose of governmental action was to create a culture of research, by strengthening the research superstructure, especially the national innovation system; providing incentives for research in the form of open grants, or through a science and technology trust fund; providing protection to the results of research (through stronger patent laws); and creating and supporting an international linkage program of Pakistani and foreign institutions. The GOP was creating conditions for tapping overseas Pakistani talent by attracting it to serve in the country's institutions, primarily as short-term consultants on contract-basis. Finally, it was linking foreign direct investment to technology transfer programs. The private- sector was being involved in the strengthening of the research network, through governance of existing institutions, and also through applied research and development work for which venture capital funding and governmental support was available, and through Cluster Councils to promote research and development activity in each industry. Industrial development in the country was being centered on export of those products that had high-income elasticity. Around these products there will take place development of both forward and backward linked industries, so that both specialization and complementarily may be achieved in the interest of Pakistan's economy. In today's economic environment, isolated firms were unable to penetrate new markets and sustain market share in traditional markets. Instead, the path to competitiveness was found in linkages between buyers and suppliers, in shared resources between complementary firms that cooperate creating change even while competing, and in specialized inputs from responsive public and private organizations that supply workers, technology and physical infrastructure. At the expanding stage clusters had many vertical connections that comprise producers of basic expanding cluster might include a wide variety of producers of

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competitive textile fibers, materials, machinery, design, sewing, packaging and marketing and distribution services. The horizontal linkages may include different types of textiles, machinery and clothing makers that enable transfer of innovations back and forth, from industrial clothing to sports to consumer clothing, for example. By this time many specialized textile and apparel research, training, as creating change through industrialization led by the private-sector as well as financing and related business service, organizations had emerged that do not exist elsewhere. The Industrial Cluster Councils include representative from concerned industrial associations, chambers of commerce and industry, provincial Small Industries Development Corporations, provincial departments of industries, technical training centers and institutes, local administrations, banks, DFIs, Board of Investment, Ministry of Industries and Production, and the Ministry of Science and Technology. The GOP was establishing clusters in the fields of sports goods, surgical goods, engineering goods, textiles, chemicals, and garments. The Cluster Councils scheme was establishing four technology centers in the areas of surgical goods, fans, industrial electronics and bed sheets. Business plans had been prepared by the foreign and local consultants, in close collaboration with the concerned sectoral associations that had indicated some interest in sharing the financial as well as management responsibilities of these centers. The Ministry of Science and Technology and Planning and Development Division were collaborating in the implementation of the cluster scheme. The Deputy Chairman, Planning Commission was in charge of the program.

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VII. EXPORT RESTRUCTURING Attraction of foreign savings depends on the creation of a favorable investment climate, maintaining political stability, curbing corruption, improving bureaucratic efficiency, and building communications infrastructure, investing in human resources. The ICOR depends on improvements in resource allocation among sectors (e.g. between tradable and non-tradable), among types of firm (public vs. private, large vs. small-scale), and type of technology. It also involves investing in human resources, and in dynamic productivity enhancement measures. An important contributor to the mobilization of public savings and foreign investment was policy credibility. In the past, governments introduced minute and unanticipated changes in tax and tariff rates, exemptions, controlled prices, or credit availability, frequently and at will. The result was that on the one hand the conditions of unpredictability discouraged long term investment, and on

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the other hand the policy stance encouraged diversion of private sector resources into lobbying and influence peddling. Policy credibility requires the revamping of the system of SROs, planning voluntary restrictions on the GOP's flexibility over tax and tariff policy as well as prices, and involving the parliament and the Opposition to endorse major policy innovations. The GOP will move in this direction. The GOP was aware of the implications of the recent developments in the WTO regime. It had visualized that export initiative will lead to an annual growth of 9 percent in export revenues, resulting in an increase in the ratio of exports to GDP from 14 to 20 percent by 2010. Imports were projected to rise at only 5 percent per year, thus reducing the payments deficit to only 2 percent of GDP by the end of the period. The main goal was to create a culture of export from the top to the bottom of society, and including civil society institutions in a major way. Media institutions, professional associations, community development organizations, educational and research institutions, and NGOs, need to be involved in creating such a culture. The GOP was involved in providing market intelligence, support for marketing expenses of firms establishing links with buyers in growing economies, providing technical transfer especially in management skills and methods to trade related industry, support for background research in export potential, improve the efficiency of the duty drawback package, strengthening institutions dealing with certification standards, and measures. The Program was strengthening institutions, both state and private, dealing with the WTO. It was targeting foreign direct investment primarily for export production. The private sector itself was taking the lead in investment and marketing. However, industrial associations were being encouraged to open trade offices in key partner countries, gradually replacing government commercial offices abroad. The GOP was cognizant of the fact that development of trade becomes mired when unrealistic objectives were set and whenever the economic environment simply does not support increased production. In short, the economic fundamentals had to be in place. All observers of the country's economic situation agree that maybe the worst part of the crisis was over. The external shocks to the economy resulting from the May 1998 nuclear explosions had been absorbed to a large extent. The economy was now stable. The GOP was now moving quickly forward to meet the two basic challenges to the country's export sectordiversifying its narrow export base and concentration in relatively low valueadded products. The GOP had decided to initiate a reform agenda that will emphasize three strategic directions:

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Sohail Mahmood (a) Accomplish rapid institutional change for the creation of a supportive environment conducive to increased trade. (b) Focus on changing market conditions, trends and opportunities made available in the new global economy. (c) To make best use of the liberalization underway as a result of the new WTO regime. (d) To take broad measures to improve Pakistan’s overall competitive position in global markets. For example, it will further promote brand names already well established in the international markets and also introduce “Made in Pakistan” labels as marks of national pride and excellence.

The GOP was pursuing a policy of liberalization of the trade regime in tandem with that of WTO. It was pursuing a number of measures to enhance exports as quickly as possible. The GOP realizes that the most crucial aspect of the implementation strategy was that it shows an unwavering commitment to implement the reform in full. The exports for fiscal 1999-2000 were at $9 billion and had climbed to about $14 billion today

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MEASURES 1. Enlarging the scope of items eligible for export refinance. Also, a welldesigned system of export financing was being prepared. Interest rates were cut from 13% to 11% in 1997 and since then to 8% for purposes of export financing. 2. Rationalization of duty draws back rates of more than 300 exportable items. 3. Drastic reduction in the number of SROs relating to duty drawbacks. 4. Reduction in maximum duty on imports from 45% to 35%. 5. Gradual replacing of non-tariff barriers to trade with tariffs. 6. The reduction in customs tariff and rationalization of the tariff structure by decreasing categories from five to four (35%, 25%, 15%, and 10%). 7. Custom duties on thousands of items covered under 3239 tariff lines had been reduced. 8. Electricity tariff for industrial and consumers had been reduced. 9. Bank interest rates had been reduced. The GOP's State Bank of Pakistan reduced the REPO (3 days) rate from 18% to 14% in April 1999. The

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10. 11.

12.

13. 14.

15. 16. 17.

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18.

19.

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REPO was the inter-bank floating rate. The Treasury bill weighted average of 12 months had also been reduced to 11.8%. The permission to import items, excepting those that concern national security, religious sensibilities or purely health grounds. Review of all customs rules and procedures with the aim of improvement in the context of export promotion. Gradually all cumbersome procedures were eradicated. More involvement of the Planning Commission in strengthening the trade sector. The Commission was more fully aware of the implications of developments in the WTO regime and will assist the GOP in better tapping the huge potential for trade expansion. It will make the country better prepared to make use of the opportunities available. Simultaneously, steps were taken as part of an overall strategy, under Planning Commission guidance, to meet the requirements of WTO and be in a state of greater preparedness to deal with the concerns of our global customers. More emphasis on increased trade in services and making better use of special treatment currently available to Pakistan as a developing country. Incentives provided to export industries to increase value-added production. Increased emphasis on TQM and productivity will become the topmost priority in our production and service sectors. Making the textile quota policy fully transparent on a first-come, firstserved basis, thus reducing significantly the kickbacks of the past. Improving governance of all the state institutions regarding the trade sector. Reorganization and reform of the Export Promotion Bureau ensuring that the future role of the bureau was more dynamic than at present. Establishment of more Export Processing Zones (EPZs) in the country like in Lahore and Rawalpindi in proximity to the newly set up industrial zones. The EPZ in Karachi had chalked out a strategy to achieve an export target of $1 billion in the next three years by taking the following measures: (a) Organization of the EPZA along modern and professional lines in order to provide better services to foreign investors; (b) A maximum number of incentives will remain valid for at least 10 years. The GOP will assure them at the highest level possible through sovereign guarantees, (c) Extensive and aggressive marketing campaign to lure foreign direct investments.

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Sohail Mahmood 20. Withdrawal of 30% cash margin requirements for bank letter of credits for export purposes. 21. The launching of an Rs25 billion export-refinancing scheme and facility to cover 95% of export proceeds at the inter-bank exchange rate. 22. Small and Medium Enterprise Development Authority (SMEDA) was working to boost fisheries export to the level of $500 by the year 2001. A number of actions had been taken to achieve the objective. 23. In the 1999-2000 trade policy The GOP reduced the income tax on exportable packed food items, including fish from 1% to 0.5%. 24. A 90% depreciation allowance had been announced for five years on the new packaging industrial units in order to encourage the export of packed food items. 25. Income tax rate on the untrimmed precious and semi precious stones had been slashed from 1% to 0.5%.

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X. CHAMPIONS OF REFORM PROGRAM The Champions of Reform (COR) program aims at the development of the volunteer spirit in the country. It seeks to make citizens full partners in the implementation of the GOP. These volunteers were the new “Champions” of reform and, essentially, act as agents of change to supplement the GOP's reform efforts. The main purpose of the Program was to provide an opportunity to citizens for meaningful participation in the policy-making exercises both at the national and local levels. Thus, these COR volunteers were carriers of the reform agenda presented by the GOP Reform program and, by the virtue of their ownership, ensure its sustainability. In fact, they were the concrete realization of the basic belief of the GOP reform program to bridge the trust gap in the country by forging a grand partnership between the GOP, the private sector and citizens. The COR initiative was essentially an outcome of the GOP’s participatory development approach. A network of more than 5000 volunteers had already been established. Participants include a cross-section of Pakistani society. The profile breakdown of COR membership was as under: Professionals--------------------Educationists--------------------Retired Persons-------------------Students--------------------------Civil Servants--------------------Businessmen------------------------

1550 650 507 490 480 350

Reform of the Public Services in Pakistan Others-----------------------------

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1100

The distribution pattern of COR volunteers in accordance with educational qualifications criteria were: Professionals-------------------Ph.D. ---------------------------Masters-------------------------Graduates-----------------------Intermediate---------------------

650 200 1600 1700 750

The GOP should not create new bureaucratic structures unnecessarily. There already exists a plethora of existing institutions in the country. Therefore, in line with the GOP philosophy a very loose arrangement for the COR initiative was being established. Basically, the emphasis was on the actualization of the global slogan of NGOs – “Think globally, act locally” Therefore; emphasis was being placed on generating local enthusiasm for meeting local needs. The GOP organizes chapters in every part of the country emphasizing community development and activism. These chapters were to be linked to a district setup, and finally to the Prime Minister’s secretariat in Islamabad. An advisory council was being established at the central level to assist local chapters in various project evaluations for the purposes of possible assistance. It was for local chapters to galvanize volunteers for various community projects on a self-help basis with minimum involvement of the GOP. Thus, the spirit of true volunteerism was being rekindled in the country, as it once flamed ever so brightly in the early days of the republic. Through the reform program the spirit of 1947 will live again. We will create a better Pakistan, as a result.

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4.

MANAGEMENT OF LARGE CITIES

Rampant urbanization had put tremendous pressure on the GOP to deliver services to an increasing population. Social decay, crime, and loss of community feelings had resulted because of the inability of the GOP to properly handle the situation. Shantytowns, around and in some of the big cities, was proof of a lack or proper planning to manage urban development? Problems had over time piled up and, if let unchecked, will prove explosive, politically speaking. The GOP believes that the problems in all the cities differ only in quantum, but nature of the problem was the same. The main problems identified were the following: -

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Sohail Mahmood 1. 2. 3. 4. 5. 6.

Conditions of public services were very poor. The capacity of local agencies was limited. Technical quality of public service programs was very poor. Lack of accountable administrative set up at the local levels. Lack of a consistent state policy. Functions of cities were dependent upon appropriate government structures. The mess created in all big cities was the result of nonfunctioning of elected local bodies. 7. No large city had been able to develop a decent mass transit system, waste collection management, parks system.

Future Urban Renewal Strategies

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The GOP was now addressing the issues on a priority basis. Key objectives of a reform strategy were: (1) Urban renewal Programs were being developed for all major cities. Due emphasis was being placed on long-range planning to resolve the myriad nature of urban problems. (2) To help control the rapid urbanization phenomenon and to cater for future needs the GOP was undertaking long-term planning of small towns in every region of the country. (3) The quality of city life was being improved. Better water and sanitation services were being provided. Current subsidies for essential services were being removed gradually. Subsidies were invariably abused. The poor and needy were being supported through independent poverty alleviation Programs and social security networks, rather than the provision of cheap and subsidized utilities and services. (4) Utility services were being overhauled on a priority basis. Currently, utilities like electricity, gas and telephone sector companies were badly managed. Ordinarily, there should be no great problems in management of these utilities. But lack of coordination of these agencies with the local bodies had added to public miseries. The WAPDA was once suffering from inefficiency, corruption, overstaffing and even organized crime. Things have definitely improved in the organization. Strong action by the Army had helped to clean up the public utility. The control of the “Mafia” had been largely broken. Similar action in KESC was

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being contemplated. The privatization of the entire power distribution system will eventually end problems in the area. (5) Efficient function of cities was primarily dependent upon appropriate local government structures. The mess created in all big cities was the result of an absence of elected local bodies over a long period of time. (6) Local Governments were being made more independent and effective. They were being encouraged to become financially autonomous by generating their own revenues. (7) A transport authority was being established in every large city to properly administer an efficient public transport system. Wherever possible, a modern mass transit system was being introduced. The use of cars in congested downtown areas was actively discouraged. The role of private transport sector was being clearly defined and regulated. Also, the private corporations were being involved in construction of the road systems on a toll paid basis. (8) Taking immediate steps for the regularization and improvement of Katchi Abadis and slums through self-help and community participation as undertaken in the Orangi Pilot Project model. (9) Launching credit schemes at the micro-level for home improvement and incremental housing construction for the localities of the poorest of the poor. (10) Strict zoning of city lands was being undertaken. Residential and commercial were being clearly demarcated. Stiff punishments for illegal use of residential areas for commercial purpose was being meted out under new laws for the purpose. The “Qabza” groups were to be eliminated once and for all. (11) The House Building Finance Corporation was giving out loans to the public that was payable in easy installments stretching for long periods. The working of the HBFC was being streamlined to make it more efficient.

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Chapter 23

AREAS OF URGENCY A. REVAMPING OF WASTE DISPOSAL AND SANITATION FACILITIES Current facilities were inadequate, particularly for the poor areas. Past measures had been mostly ill planned and short-term. In collaboration with multilateral agencies and NGOs, the GOP will chalk-out a long-term plan for the purpose. Areas were taken to provide affordable and sustainable services. Use and adoption of appropriate technologies was guaranteed. The GOP took immediate action to provide adequate water and sanitation services in all urban areas. Efforts had been made to identify key issues at strategic level rather at tactical or operational level.

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B. AUGMENTATION OF WATER RESOURCES Pakistan was going to face acute water shortages in the next fifty years. We need to plan ahead. Scarce water resources needed to be better protected. The contamination of surface water and ground water had resulted in threats to public health. Plus the impact on the environment was catastrophic. Therefore, the GOP will undertake a long-term master plan for the purpose of development and protecting our scarce water resources.

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C. REMEDIAL OF INSTITUTIONAL INADEQUACIES The management of our urban areas lacked from many defects, such as: 1. 2. 3. 4. 5. 6. 7. 8.

Ineffective monitoring, surveillance and enforcement of standards and Lack of integrated management. Legal, administrative and social constraints. Lack of appropriately qualified management/technical/human resources. Insufficient involvement of users and the private sector. Centralized planning and management. Lack of standards and appropriate by laws Duplication of institutional work. No clear-cut or well-defined distribution of responsibilities.

The problem of our urban areas cannot be resolved without bringing in drastic changes in the present set up. The people was allowed, supported and helped to participate in decision-making at the local-level. The issues pertaining to local government had been treated separately.

D. ENVIRONMENT PROTECTION STRATEGY Environmental pollution was usually categorized into the following four types: air, water, solid will waste, and noise pollution. The following were the main causes of the aforementioned types of pollution: -

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I. High Population Density Concentration of a large number of people in a small area. For example, in the Walled City of Lahore, more than 10000 persons lived in an acre of land. In planned settlements, the Town Planners will control the density of population through density zoning techniques, etc.

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II. Traffic Congestion The presence of a large traffic volume on narrow roads and streets. With population, the traffic volume had also increased in urban areas. For example, in Lahore, the number of registered motor vehicles had increased more than 8 times during the last 15 years, while the population doubled and length of roads increased by 30 percent only.

III. Dangerous Living Quarters Development of industrial and commercial uses near living areas that may be hazardous to human health. For example, industries and workshops were commonly found in the slum areas of Lahore. Similarly, tanneries were located in the middle of residential areas of Kasur City, which were causing an increased incidence of cancer in the city.

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IV. Inadequate Waste Collection, Treatment and Disposal Sites Current facilities of collection, treatment and disposal of solid, liquid and gaseous waste were inadequate. For example, in Lahore, untreated industrial waste and raw sewage were disposed off into river Ravi. The smoke and gases were also emitted out of industries without any treatment. Similarly, there was no proper system of domestic solid waste collection and disposal. More than 50 percent of solid waste does not reach the dumping grounds. Some of the solid will waste was burnt openly and adds poisonous gases to the air. Tire burning during agitation was also an example of this practice. The GOP was taking immediate steps to conserve the natural environment and reduce pollution levels in our human settlements. The town planners had a very important role in this connection, since they were responsible for not only planning of a new areas and improvement of existing slums but also for the development control in cities and their rural hinterlands. The following reform measures were to be executed to ensure sustainable development of urban areas:

1. Decentralization of Central Business District Functions In order to remove congestion and concentration of traffic in the Central Business Districts (CBDs) of large urban areas, the future growth of cities should

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be planned according to Multiple Nuclei theory of land use zoning. It means that new local district centers should be established to reduce burden on the main city center. This will reduce movements (i.e. number of vehicular trips) to the existing CBDs and curtail the trip lengths considerably resulting in reduction in the fuel consumption, travel costs and travel fatigue. Local development authorities or municipalities can develop the new local district centers by purchasing land on market price. The additional money generated from this profitable venture can be used to finance the development of trunk infrastructure and open spaced.

2.Separation of Civic and Administrative Uses from Commercial Area The new CBDs can be planned in such a manner that adequate buffer zones in the form of parks and open spaces were created between commercial/shopping areas and the civic and administrative uses. This will reduce concentration of traffic in the CBD areas resulting in reduced level of noise and air pollution.

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3. Proper Zoning of City Lands ¾ Haphazard and unplanned commercialization of urban areas was ceased. Proper zoning and demarcation of land use for various purposes. ¾ Residential and commercial use of land was clearly demarcated by city governments. Proper zoning of land to clearly demarcate different uses, i.e. residential, industrial and commercial areas. All residential areas were separated from the other two. The industrial areas may be located with a suitable buffer of green areas between them and the other two. Also, the change over of once designated residential areas to commercial use was stopped. ¾ Violation of building regulations was strictly checked. Plus, unambiguous building control regulations were prepared and there were no discretionary powers. 4. Rule of Pedestrians on Commercial and Residential Streets Some commercial areas can be designated as pedestrian areas by providing parking lots at a suitable distance. Similarly, in high density, low-income areas, lanes can be designated as pedestrian streets with low cost brick pavements. This will help to control the noise and air pollution caused by vehicular traffic. 5. Development of Industries and Public Facilities near Rural Areas In order to reduce the migration trend of villagers towards urban centers for jobs and facilities, there was a need to develop rural areas by locating industries and public facilities such as education and health in rural areas. Moreover, farm to

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market roads was developed so that rural people may easily commute to urban centers and do not need to migrate to cities permanently. Town planners, at the regional planning level, adopt these policies and activities.

6. Provision of Open Spaces and Parks In all new residential colonies and industrial areas at least 20 percent of the total area was reserved for open spaces and parks so that the air remains clean and healthy. For existing congested areas, small open spaces were procured by purchasing old, dangerous buildings and converting them into small open spaces through NGOs and CBOs (community based organizations). 7. Revamping of Refuse Collection and Disposal Services Provision of refuse depots and bins and location of dumping grounds and incinerators be properly planned in all cities. The local NGOs/CBOs were involved in proper refuse collection and creation of awareness among people. The recycling and disposal of refuse be done in collaboration with the private sector companies, CBOs and NGOs. A pilot partnership Program was initiated between the CDA and the private sector outfit “Garbage Busters” in Islamabad.

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8. Development of Workers Colonies While preparing zoning plans, provision must be made of providing labor colonies near industries, staff colonies near large government establishments, and flats for shopkeepers near the commercial areas, so that distances to work places may be reduced and walking down to the work place may be encouraged. If all new areas were developed this way, the problem of traffic congestion on roads and the resultant noise and air pollution in cities was reduced. 9. Provision of Mass Transit System In large metropolitan areas such as Lahore, Islamabad, Karachi, Peshawar, Hyderabad etc., mass transit system such as light rail, local bus etc. should be provided in a planned manner. The existing schemes for Lahore and Karachi were to be upgraded for the purpose and also to serve as pilots. 10. Development Planning Control Town planners in all cities were to be appointed for proper strategic planning and development.

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11. Development of Housing for the Poorest of the Poor The housing of the poorest of the poor had been neglected. Regularization and improvement of Katchi Abadis and slums through self-help and public participation, as in Orangi Pilot Project model. Micro credit schemes were initiated for home improvement and incremental housing construction. Provincial and local governments to streamline the scheme.

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12. Provision of Housing for the Middle-Income Section of the Population Shortage of housing in the middle income sectors was caused by lack of incentives for private sector participation in the task. A sufficient subsidy in markup for housing loans was provided. Commercial banks were encouraged to initiate 20-30 year mortgage loans for individuals to buy homes from private builders. Private builders, banks, Ministry of Housing, Planning and Finance to coordinate in order to start these mortgage schemes on the pattern of those in USA. The following measures to be undertaken immediately: 1. Transfer of Land Costs (Stamp Duty) to be reduced to 5% from the Current of 20% of Value of Land 2. More public-private partnership was formed for urban development. The model in Lahore was duplicated in all other provincial capitals, and Islamabad. The entities should have their own Board of Directors. 3. The system of Urban Development Authorities like LDA, CDA needs to be reviewed. Unnecessary duplication of efforts at this level was curtailed. Jurisdiction issues remain unsettled and control was not demarcated. Functions of different agencies were not spelled out clearly. 4. Coordination between various city organizations was institutionalized. Clear overall responsibility to manage the cities was vested with city governments. A single unit of government was responsible for the whole city. All agencies providing various services to the city were brought under the direct control of the mayor, elected by the people. The mayor, be clearly in-charge and responsible for the management of the city. 5. Plan construction of future cities as the population of urban areas was increasing very rapidly. Also focus on development of new small towns in every part of the country.

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5. PUBLIC-PRIVATE CITIZENS' PARTNERSHIP The GOP was creating a vibrant civil society, which it sees as an essential pre-condition for the country's progress. It was aware of the fact that NGOs had played a vital role in the provision of social services and eradication of poverty in various parts of the world and in various communities within Pakistan. Therefore, the GOP was encouraging NGOs and provides financial support to them, especially those working to provide social services and in alleviation of poverty. It was fully committed to strengthen rural and urban grassroots level organizations that were pursuing community development initiatives. In order to improve and strengthen government’s delivery of essential services a grand partnership with a number of NGOs and community-based organizations (CBOs) was taking place. Similarly, under the Prime Ministers Literacy Commission, a number of NGOs were being supported to reach the large segment of the population. Also, these public organizations were being involved in meeting immediate concerns of the population including hygiene, family size, health, sanitation and water supply. The GOP acknowledges the vital role of NGOs in the development process, especially in provision of essential social services in remote rural areas. The GOP was in the process of establishing a sound and transparent enabling regulatory framework for them. It was encouraging a process of debate, consultation and dialogue between itself and the NGOs for developing the required policy framework. The NGOs were being allowed to work independently provided their work does not fall beyond the requirements of the law and public interest. The GOP will not try to control or supervise NGO/CBO activity. It will however monitor the use of funds to ensure proper use in the public interest. In the past, the GOP was directly intervening to expedite social and economic development agenda of the country. This set up required little, if any, ongoing private sector involvement other than the discrete periodic dialogues. The new paradigm calls for a fundamental change - institutionalizing private sector and civil society involvement in the planning and implementation process. The Prime Minister approved the setting up of Pakistan Business Council, which comprises public and private representatives. The Council was assisting the GOP in planning, implementing and monitoring reforms agenda. Recently, a Pakistan Business Summit, chaired by the Prime Minister was held to encourage participation of private sector in finalization of Ninth Five-Year Plan to make the planning process participatory. Earlier, under the GOP a national level consultation meeting was held attended by over 500 experts and other stakeholders. Thus, the measures helped institutionalize a mechanism of consultation between the GOP and the private sector.

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NEXT STEPS

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1. Create a vibrant civil society, as an essential pre-condition for the country's progress. For the purpose, encourages NGOs, especially those working to provide vital social services to the needy. 2. Strengthen rural and urban grassroots level organizations that were pursuing community development initiatives. In order to improve and strengthen delivery of essential services, a partnership with reputable NGOs and community-based organizations was executed. The regime should desire to tap into their considerable expertise and resource base for the country’s sustainable development. It should encourage them by providing financial support. The Musharraf regime should establish a sound and transparent enabling regulatory framework for NGOs and CBOs. It should embark upon a process of debate, consultation and dialogue between itself and NGOs for the development of a policy framework for their proper functioning. To its credit, the Musharraf regime was aware of the need. Omar Asghar Khan, late al minister, had once declared that no institutional reform policy, no matter how good it looks on paper, can be implemented without the active participation of the people. It can be hoped that the military regime will take the necessary steps to achieve this desired partnership. Even before the establishment of the local governments, the regime had instructed local officials to get input from the newly elected local government officials in some parts of the country. How should the Musharraf regime proceed? It should articulate a grand design and vision for Pakistan in the new century. The regime should follow the example of Franklin D. Roosevelt’s “New Deal” initiative in 1932. According to this approach, the US federal Government undertook a massive job-creation program all over the country through a number of state programs especially set up for the purpose. The Musharraf regime must kill two birds with one stone. Build the local government infrastructure, and mitigate the rural-to-urban migration phenomenon. In addition, give an opportunity for the establishment of direct democratic practices at the local level. It is here that the future aspirants of political careers should receive their first training in democracy. It is important that mistakes of the past be avoided, rather than plan for boondoggles like the Yellow Cabs Scheme, Mera Ghar Scheme, Green Tractors Scheme, and the like. Instead, the military regime must go for massive infrastructure projects of small size, mostly in rural areas, that can produce maximum employment opportunities. The regime’s efforts at decentralization and devolution must occur simultaneously with this grand infrastructure program. The purposes of the program were manifold: (1) to

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provide jobs, (2) stop rural-to-urban migration, and (3) establish the third tier of Government. The state should build local schools, hospitals, roads, parks, sanitation facilities, roads, and the like. Let the people through the District Boards decide what their priorities were. The Federal Government should only guide them with technical assistance. Comprehensive planning is the need of the hour. Stronger district government systems were a possible solution and a vital element of the programmed turnaround of the country Roundtable mechanisms at the regional level were to be established that should start anew the direct democracy experiment. A true partnership between the important stakeholders is envisioned. Thus, the various state agencies should be brought together on one forum with locally active NGOs and CBOs. Remember that the state cannot do it alone, especially in poor countries like Pakistan, where resources were scarce and the task immense. Therefore, it is even more important that collective efforts be made. Such is the immensity of the sustainable development task before the nation. A true partnership approach is urgently needed. The Musharraf regime must also implement a new conservation strategy suitable for the country. Some progress had been made in this direction. The Musharraf regime had embarked upon a process of debate, consultation and dialogue between itself and NGOs for the development of a policy framework for their proper functioning. In the area of conservation, the GOP will enter into a broad-based alliance with reputable international NGOs like IUCN- the World Conservation Union and WWF. The purpose of exercise was to chalk out a viable plan of action to protect the environment and promote conservation efforts. Similarly, in the area of sustainable development the GOP will work with AKRSP, Sungi, NRSP, Orangi Pilot project, etc. The GOP will create Divisional Roundtables for Conservation and Development, as explained above. It will also seek collaboration in specific programs. For example, the Sindh Katchi Abadi Authority (an entity set up by the GOP in 1987) can collaborate with UNDP, a district administration in Sindh, and the Planning Commission, to work out collaboration for the purpose of development of a particular division. The purpose was to link the concerned officials of the entire government system - federal, provincial, district and local governments – with both international agencies like UNDP, WWF, IUCN, etc. and local NGO network. A similar initiative can be started in Peshawar division, NWFP where IUCN, Govt. of NWFP, UNDP, who were already working together for conservation and development.

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NEXT STEPS 1. There was a need for establishing a sound and transparent regulatory and enabling framework for NGOs. The required NGOs legislation will cater to that need. 2. Encourage a voluntary adoption of a Code of Conduct for all NGOs respecting Islamic values. 3. Institutionalize a mechanism for a debate, consultation and dialogue between the NGOs and the GOP. For the purpose, a policy framework in close consultation and collaboration with the NGOs was to be prepared. 4. A comprehensive national policy for NGOs was developed. NGOs were held accountable for their activities. Registration process of NGOs was simplified. There was a simplification in the reporting format of NGOs that were small in size. Autonomy and independence of NGOs be preserved. In sum, the GOP encourages NGOs to become partners in the development efforts.

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7. GENDER ISSUES The GOP was cognizant of the fact that Pakistan cannot progress without the development of the females. The 1998 census shows already significant improvement in the status of women over time. Sex ratio had improved from 110.4 males per 100 females in 1981 to 108.1 males per 100 females. Female literacy though still low had more than doubled from 16.0 to 32.6% over 1981-98 period compared to 61.4% for the males. Accordingly, it was committed to eliminate discrimination against women and will effectively try to provide them equal opportunity for development. The GOP had launched a scheme where women were provided specific credit lines that can only be used by them. The purpose was to help them attain financial independence by having businesses of their own. The Social Action Program had a strong emphasis on the welfare of the females. The targets for increase in enrolment and schools for the girls far outweigh the schools for boys. The same was true for health facilities. It needs to be noted that water schemes and sewage schemes especially in the rural areas essentially benefit the females. The following steps had been taken to enhance status of the women and to protect their rights:

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(ii) (iii) (iv) (v) (vi) (vii) (viii) (ix)

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The reintroduction of reserved seats for women in Parliament as well as the Provincial Assemblies. Plus, reintroduction of reserve seats for women in local government institutions. Establishment of Women Police Force and Women Police Station Appointments of women as judges of the High Courts. Establishment of Family Courts presided by women judges Introduction of a special scheme for the welfare of 'mother and child' Introduction of Health Workers Scheme to assist women in rural areas A national plan of action for women rights had been launched Financial and legal assistance was being provided to all women in distress. Creation of First Women Bank

NEXT STEPS 1. Remaining within the Islamic framework, all laws that that discriminate against women, especially family laws, Hudood Ordinance, and the Law of Evidence were eliminated. It was eliminating all such discrimination wherever possible, in accordance with the injunctions of Islam.

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8. THE CORPORATE SECTOR The influence of the corporate sector had increased over the lives of people everywhere. A lot of material affluence had resulted by the dynamic activity of large business corporations. Citizen groups were demanding that earning profits was not enough that corporations need to be socially responsive as well. In other words, businesses were supposed to be more than moneymaking entities and turn into responsible corporate citizens. They must contribute their share towards the protection of the environment and promote sustainable development. Thus, more was expected from them than ever before. Some had responded positively. Corporations were to be guided by corporate codes of conduct to regulate their behavior. For example, the Conventions of the International Labor Organization protect rights of workers such as freedom of association, the outlaw of slave labor, child labor, and discrimination, and uphold the right of collective bargaining. Generally, the corporations were also expected to promote democratic values and governance wherever possible. The overall global trend points towards

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ethics becoming a key factor in not only the public services but also the corporate sector. Societal norms were changing everywhere pushing towards reform of corporate behavior.

Chapter 24

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THE GOP QUEST FOR AN ISLAMIC ETHICAL PARADIGM The GOP desired to introduce an Islamic ethical paradigm in the country’s corporate governance structures. What was exactly an Islamic ethical paradigm? Simply, a framework of knowledge and practices springing from the belief that God was perfect, wise, and caring towards all creation. Islam was eternal, universal and had been practiced completely at least once in the early period, and more importantly was practiced again in the future. This much was the basic part pertaining to faith. From the faith springs forth all human activity, knowledge sources, and national visions. In other words Islam must guide everything under the sun, so to speak. A common belief among Muslims being that Islam was a complete code of life where the spiritual and the mundane cannot be separated. The message of Islam covers every activity both at the individual and the societal level. In Islam material existence was not an end in itself it was the path towards God and His mercy. The religion emphasized individual and collective responsibility towards creating a righteous and just society. Hence, the cliché “Islam was the Solution” a common slogan for Muslims worldwide,

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VALUE STRUCTURE 1. Hard Work and Honesty The basic rule in Islam was to work hard and earn for yourself and your family. In fact, it was even preferred over retirement in the worship of Allah. The cardinal Islamic value was that of justice and fairness. The Quran commands: “And the sky He had uplifted; and He had set the measure, that you exceed not the measure, but observe the measure strictly, nor fall short thereof” (55-7-9)

The Holy Prophet commanded that Muslim give a wage earner his due before his sweat on his brow dries up (meaning within no time) Hard work was preferred in Islam. The Prophet emphasized pride in wages collected through work. He himself worked hard throughout his life. Honesty and truth in dealings was a strict Quranic command. The Quran commands Muslims to be honest in their business dealings with others and not to cheat, or lie. Muslims were asked to keep promises made and uphold contracts entered with other parties.

2. Social Justice

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The Holy Prophet always emphasized justice as a cardinal Islamic value. In this tradition, the Khulafah-i-Rashidun also emphasized justice in the early days of Islam.

3. Peace The very word Islam comes from the root salaam meaning peace. The mission of the Prophet Muhammad was to establish peace in the world.

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4. Human Dignity

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Islam enjoins human dignity to all irrespective to their religion, caste, creed, gender, or economic status. The welfare of humanity was a cardinal value of Islam. In short, Islam calls for a society based on justice, truth, benevolence, security, peace, good neighborly behavior, and human dignity. The question was why these Islamic values were not seen in our societies today? Why we did not live up to the golden rules of Islam? We will readily concede that Muslims had failed to live up to their own faith. This does not mean to suggest that Islam had failed only that it was never fully tried in contemporary times. What was the Islamic teaching about modern business practices? Earning money honestly, in accordance with the Shariah, was an act of worship in Islam. However, Islam will expect a strict code of conduct to be followed in this regard. What was an Islamic Corporate Code of Conduct appropriate for our age? Any code so devised must be enforceable by the state.

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Chapter 25

THE NEW CODE OF ETHICS In our rapidly changing world, universal standards had become ever more essential. Without them, it was difficult to establish more practical and justifiable forms of governance. Keeping this in mind, the following value code was suggested for consideration: • • • •

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• • • • • • • • •

Justice and fairness to all Practice honesty in all business conduct. The creation of a corruption-free business environment. Be truthful in dealing with the tax authorities. Report actual income and expenditures Practice truth in selling. All deceptive claims by businesses must be curtailed. Meaning that advertisement claims should not mislead and deceive the general public. Adopt clean business practices emphasizing the adherence of contractual obligations Business activity that was environment-friendly No exploitation of labor, especially child labor Accountability, as a precondition of good governance in the corporate sector also. Obligation of corporations to give back to the local community, i.e. contribute towards its development Fairness, meaning that collusion and price-fixing was banned Exorbitant profit seeking be curtailed in the name of fairness Contribute to the common good Consider the impact of their actions on the security and welfare of others

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Promote equity, including gender equity Protect the interests of future generations by pursuing sustainable development and safeguarding the global commons Preserve our Islamic cultural and intellectual heritage Become active participants in the GOP’s governance initiatives Work to eliminate corruption.

9. HUMAN RIGHTS

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The GOP resolved to safeguard and protect the rights of every Pakistani citizen. It was committed to develop and improve liaison with the NGOs working in the field. The GOP will make better efforts to protect the human rights of the weaker segments of society, especially women, children, and minorities. It will improve and expand the Human Rights Mass Awareness and Education Program.

INDEX

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A academic, 47, 48, 52, 56, 79, 83, 123 academic performance, 48 access, 46, 82, 92, 119, 120, 121, 122, 123, 126, 127 accountability, 4, 6, 8, 13, 14, 47, 59, 63, 65, 93, 107 accounting, 15, 65, 75 accreditation, 56 accuracy, 108 achievement, 46, 74, 87, 99, 100, 108 ACR, 77, 81, 84, 86 activism, 133 acute, 1, 137 ad hoc, 74, 80 adaptability, 7, 8 administration, 3, 5, 6, 13, 14, 17, 19, 20, 39, 41, 54, 59, 65, 66, 71, 73, 75, 76, 79, 83, 95, 96, 118, 120, 145 administrative, 1, 4, 5, 6, 8, 13, 14, 20, 22, 25, 35, 59, 61, 92, 134, 138, 140 administrators, 5, 57, 86, 97, 99, 102 adult, 46 adult literacy, 46 advertisement, 153 advertisements, 120 advisory committees, 22 affect, 37, 99, 115 affiliates, 125

age, 6, 13, 17, 20, 123, 151 agent, 92 agents, 132 agriculture, 22, 56, 126 aid, 4 air, 138, 139, 140, 141 air pollution, 140, 141 Allah, 150 alternative, 65 ambiguity, 5 ambulance, 69 anger, 4, 14 anxiety, 82 apparel, 128 applied research, 127 argument, 99 Army, 37, 82, 134 Asia, 48 assessment, 77, 102, 104, 105, 106 assignment, 35, 106 association, 86, 147 associations, 22, 128, 129 attention, 108 attitudes, 80 auditing, 64 aura, 77 authority, 1, 6, 13, 84, 123, 135 automation, 92

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Index

autonomous, 20, 78, 82, 135 autonomy, 31, 54, 105 availability, 128 awareness, 81, 85, 86, 91, 93, 121, 141

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B bank account, 119 banks, 21, 128, 142 bargaining, 147 barriers, 130 behavior, 62, 64, 65, 100, 147, 151 behavioral change, 87 benchmark, 103 benchmarking, 103, 104, 105 benchmarks, 68, 103 benefits, 76, 80, 82, 85, 87, 126 benevolence, 151 betrayal, 52 birds, 144 blame, 55 bottlenecks, 127 bottom-up, 8 boys, 146 breakdown, 3, 132 bribery, 64, 66 brick, 140 Britain, 18, 19, 20, 22, 27, 29, 31, 66, 71 buffer, 140 buildings, 115, 141 bureaucracy, 1, 4, 5, 14, 15, 19, 73 burning, 139 business, 2, 21, 59, 80, 95, 104, 120, 121, 128, 147, 150, 151, 153 business environment, 153 buyer, 126

C campaigns, 64 cancer, 139 candidates, 49, 52, 55, 79, 83 capacity, 5, 6, 9, 60, 75, 76, 115, 121, 134 capacity building, 75, 76

capital, 75, 115, 126, 127 CAR, 3, 11 cardinal principle, 22 cardinal value, 151 career development, 85 caretaker, 18, 41 catalyst, 92 CDA, 112, 141, 142 censorship, 123 centralized, 5, 7, 81, 123 certificate, 55, 63 certification, 52, 129 changing environment, 112 channels, 70 chemicals, 127, 128 child labor, 147, 153 children, 47, 154 citizens, 2, 3, 7, 9, 18, 59, 64, 66, 67, 72, 112, 120, 121, 132, 147 citizenship, 119 civil servant, 14, 22, 32, 61, 63, 73, 75, 76, 78, 80, 81, 82, 85, 86, 94, 109 civil service, 3, 4, 5, 7, 8, 11, 13, 14, 19, 32, 59, 66, 75, 81, 83, 86, 103, 113, 121 civil service reform, 4, 5, 7, 14 civil society, 2, 6, 22, 65, 129, 143, 144 civilian, 20, 37 classes, 63 classroom, 54 classrooms, 54 clients, 3, 68, 71, 72, 96 clothing, 128 clustering, 126 clusters, 125, 126, 127, 128 codes, 120, 147 COLAs, 66 collaboration, 22, 48, 109, 128, 137, 141, 145, 146 collective bargaining, 147 colleges, 22, 48, 52, 54, 55, 56 collusion, 153 colonial, 5 combat, 64 commerce, 22, 119, 120, 128

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Index commercial, 21, 65, 129, 135, 139, 140, 141 commercial bank, 21 commercialization, 140 commitment, 3, 11, 61, 62, 66, 67, 69, 81, 102, 112, 130 commodities, 5 commons, 154 communication, 5, 61, 102, 120, 121, 123 communication systems, 121 communities, 143 community, 45, 55, 63, 121, 122, 129, 133, 135, 141, 143, 144, 153 compensation, 5 competency, 84, 87 competition, 80, 102, 105 competitive advantage, 126, 127 competitiveness, 65, 74, 75, 76, 125, 127 complementary, 77, 127 complexity, 70 compliance, 70 components, 126 composition, 22 comprehension, 74 compulsion, 8 computer, 47, 75, 78, 81, 119, 122, 123 computer skills, 75 computerization, 92 concentration, 8, 129, 139, 140 concrete, 112, 132 conduct, 62, 147, 151, 153 confidence, 23, 65, 115 conflict, 41 congestion, 138 connectivity, 125 consensus, 45 consent, 105 conservation, 145 consolidation, 25 constitution, 39 constitutional, 20, 57 constraints, 70, 101, 103, 138 construction, 135, 142 consultants, 22, 127, 128 consulting, 3

157

consumers, 65, 130 consumption, 140 contamination, 137 continuing, 55, 81, 85, 103 continuity, 100 contracts, 82, 87, 95, 109, 150 control, 1, 6, 22, 26, 31, 45, 54, 64, 66, 83, 99, 100, 123, 124, 134, 138, 139, 140, 142, 143 controlled, 123, 128 coordination, 134 COR, 132, 133 corporate governance, 149 corporate sector, 31, 84, 147, 148, 153 corporations, 20, 31, 66, 67, 68, 70, 71, 79, 94, 101, 105, 106, 123, 135, 147, 153 corruption, vii, 1, 4, 61, 64, 65, 66, 73, 79, 81, 83, 128, 134, 153, 154 cost-effective, 51, 85, 87, 102 costs, 47, 70, 76, 100, 101, 102, 114, 125, 127, 140 course work, 79, 83 courts, 39, 65 coverage, 32 covering, 55, 96, 107 creativity, 60 credibility, 14, 128 credit, 4, 6, 34, 41, 77, 128, 135, 142, 144, 146 creep, 2 crime, 66, 119, 133, 134 criticism, 124 crying, 5 CSS, 33, 35, 73, 76, 80 cultural, 56, 124, 154 cultural practices, 124 culture, 8, 13, 35, 45, 48, 60, 65, 67, 81, 87, 89, 94, 101, 109, 111, 113, 117, 118, 124, 126, 127, 129 curriculum, 46, 63, 86 customer preferences, 70 customers, 60, 61, 66, 67, 68, 70, 71, 76, 99, 100, 109, 112, 114, 115, 126, 131 cyberspace, 123

158

Index

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D database, 54, 78, 81, 86, 106 debt, 73, 75, 76 decay, 133 decentralization, 144 decentralized, 2, 35 decision making, 107, 118 decision-making process, 22 decisions, 7, 8, 21, 67, 112 defects, 138 defense, 22, 27, 28 deficit, 129 definition, 43, 99 degree, 52, 54, 55, 71, 72, 98, 100, 103 delays, 119 delivery, 3, 45, 61, 66, 68, 71, 76, 81, 99, 101, 103, 109, 126, 143, 144 demand, 45, 52, 56, 61, 67, 68, 74, 75, 84 democracy, 144 democratization, 43 density, 138, 140 depreciation, 132 deregulation, 65 desire, 31, 60, 61, 144 desires, 5 developed countries, 46 developing countries, 8 deviation, 62 devolution, 144 dignity, 43, 151 diplomas, 79, 83 direct investment, 127, 129, 131 directives, 93 discipline, 2, 14, 48, 61, 78, 81, 83, 100 discourse, 91 discretionary, 1, 2, 140 discrimination, 146, 147 discriminatory, 79 disseminate, 68, 120, 121 distance learning, 48, 55, 85 distress, 147 distribution, 8, 13, 126, 128, 133, 135, 138 division, 20, 26, 27, 28, 68, 70, 145 domain, 97

donor, 121 donors, 4 downsizing, 18, 21 drinking water, 46 drugs, 29 due process, 20 dumping, 139, 141 duplication, 4, 66, 117, 142 duties, 52, 61, 120, 130 dynamic environment, 70

E early retirement, 21 economic, 1, 5, 12, 17, 20, 21, 51, 73, 75, 76, 121, 125, 126, 127, 129, 143, 151 economic development, 121, 126, 143 economic fundamentals, 129 economic performance, 121 economic policy, 125 economic problem, 21 economic status, 151 economics, 86, 95 economies, 125, 126, 129 economies of scale, 126 economy, 2, 5, 65, 100, 127, 129, 130 education, 2, 22, 25, 26, 27, 28, 29, 33, 45, 46, 47, 49, 51, 52, 53, 55, 56, 57, 63, 93, 119, 126, 140, 154 educational institutions, 45, 49, 51, 52, 54, 55, 56, 57, 125 educational programs, 52 educational qualifications, 133 elasticity, 127 election, 59 electricity, 134 electronic, 92, 118, 119, 121, 122, 123 electronics, 47, 125, 128 electrons, 124 electrostatic, iv emergence, 94 employees, 11, 18, 20, 21, 32, 64, 75, 76, 84, 85, 96 employers, 48, 85 employment, 20, 21, 54, 82, 86, 118, 144

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Index empowered, 84 empowerment, 107 energy, 113, 114 engineering, 3, 4, 6, 7, 13, 51, 59, 81, 86, 106, 127, 128 enhancement, 115 enlargement, 21 enrollment, 45, 57 enterprise, 65, 109, 114 enthusiasm, 45, 133 environment, 3, 6, 7, 47, 56, 62, 70, 74, 80, 81, 112, 127, 129, 130, 137, 139, 145, 147, 153 equality, 43, 87 equipment, 111, 115 equity, 154 ethical, 149 ethics, 62, 63, 109, 113, 147 Europe, 17, 20, 104 European, 22, 104, 124 evening, 55 evidence, 32, 53 examinations, 35, 54, 79, 83 exchange rate, 132 excise tax, 120 execution, 1 exercise, 18, 21, 22, 37, 64, 65, 92, 98, 103, 104, 105, 106, 145 expectations, 3, 17, 20, 52, 109, 112 expenditures, 6, 18, 153 expertise, 35, 87, 95, 144 experts, 22, 46, 56, 127, 143 exploitation, 153 explosions, 129 explosive, 133 export promotion, 131 exports, 26, 129, 130 external shocks, 129 extraction, 5 eyes, 100, 101

F failure, 34, 54, 78, 80, 97, 104, 118 fairness, 13, 61, 79, 97, 150, 153

159

faith, 4, 149, 151 family, 52, 143, 147, 150 family income, 52 farm, 140 fatigue, 140 faults, 1 fax, 119 fear, 100 February, 105 federal budget, 17 federal government, 3, 18, 20, 25, 26, 28, 32 fee, 48, 57 feedback, 68, 70, 71, 72, 92, 114, 117 feelings, 133 females, 146 fibers, 128 filters, 124 finance, 14, 19, 22, 48, 86, 119, 140 financial institution, 65 financial performance, 108 financial planning, 22 financial support, 143, 144 financing, 128, 130 firms, 104, 125, 126, 127, 129 fish, 132 fisheries, 132 flexibility, 7, 85, 129 floating, 131 focusing, 85, 102, 125 food, 29, 132 foreign direct investment, 127, 129, 131 foreign investment, 128 formal education, 46, 57 framing, 112 France, 18, 20, 22, 66 Franklin D. Roosevelt, 144 fraud, 32 freedom, 31, 100, 147 fringe benefits, 80, 82, 87 frustration, 4, 6, 14 fuel, 140 fulfillment, 55 funding, 48, 127 funds, 14, 46, 143

160

Index

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G garbage, 124 gas, 119, 134 gaseous waste, 139 gases, 139 gauge, 98 GDP, 17, 20, 129 gender, 123, 151, 154 gender equity, 154 General Services Administration, 26 Germany, 18, 20, 22, 26 gestation, 7, 9, 52, 59 girls, 146 global economy, 130 global markets, 130 goals, 13, 45, 85 God, 149 goods and services, 27, 61, 68 governance, 1, 2, 3, 4, 6, 7, 13, 14, 20, 23, 45, 47, 65, 79, 83, 91, 106, 121, 123, 127, 131, 147, 149, 153, 154 government, 1, 2, 3, 4, 6, 7, 8, 11, 13, 14, 15, 17, 18, 20, 21, 22, 25, 26, 28, 31, 32, 33, 35, 37, 39, 41, 45, 47, 51, 54, 64, 65, 66, 68, 71, 73, 74, 77, 79, 80, 82, 84, 89, 92, 100, 101, 103, 106, 114, 118, 119, 120, 121, 123, 124, 128, 129, 134, 135, 138, 140, 141, 142, 143, 144, 145, 147 government expenditure, 19 government failure, 8 government policy, 7 graduate students, 49 grants, 127 grassroots, 143, 144 Great Britain, 18, 29, 31 ground water, 137 groups, 8, 22, 33, 45, 56, 63, 81, 92, 126, 135, 147 growth, 17, 20, 56, 125, 126, 129, 139 growth rate, 126 guidance, 48, 131 guidelines, 78, 94, 115 guilty, 63

H hands, 2, 5 head, 54 headache, 31 health, 2, 32, 43, 70, 119, 125, 131, 137, 139, 140, 143, 146 health insurance, 32 heart, 27 high growth potential, 126 high school, 47 higher education, 45, 46, 49, 52, 55, 56 homes, 142 homogeneous, 124 honesty, 2, 153 Hong Kong, 66 horizon, 7, 8 hospital, 70 hospitals, 32, 72, 145 house, 135 housing, 5, 135, 142 Housing and Urban Development, 27, 28 human, 19, 43, 73, 75, 84, 87, 128, 138, 139, 149, 151, 154 human activity, 149 human development, 43 human dignity, 43, 151 human resource development, 73 human resources, 73, 75, 84, 128, 138 human rights, 19, 154 humane, 43 humanity, 124, 151 humility, 61 hybrid, 31 hygiene, 143

I id, 3, 8, 51, 75 ideas, 7, 54, 60, 107 identification, 107, 108 identity, 119 illiteracy, 43 imbalances, 1

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Index implementation, 3, 7, 9, 15, 48, 52, 55, 59, 60, 61, 62, 67, 68, 70, 71, 72, 93, 94, 96, 107, 109, 111, 112, 114, 115, 117, 128, 130, 132, 143 imports, 130 inactive, 3 incentive, 13, 77, 83 incentives, 3, 14, 57, 64, 65, 71, 77, 79, 83, 96, 127, 131, 142 incidence, 64, 139 inclusion, 48 income, 52, 55, 122, 123, 127, 132, 140, 142, 153 income tax, 122, 132 incomes, 48, 79 independence, 2, 5, 146 India, 46, 57, 66 indicators, 74, 78, 82, 86, 102, 103, 104, 118 indigenous, 45, 48 individual development, 113 induction, 81 industrial, 125, 126, 128, 129, 130, 131, 132, 139, 140, 141 industrialization, 128 industry, 22, 127, 128, 129 ineffectiveness, 51 inefficiency, 1, 5, 51, 65, 134 inequity, 80, 82 Information Age, 118, 121 information retrieval, 119 Information System, 120 information technology, 61 Information Technology (IT), 93, 121 infrastructure, 2, 118, 119, 125, 127, 128, 140, 144 injunction, 22 innovation, 2, 60, 117, 125, 127 input, 144 inspection, 45 inspections, 47, 54 institutional change, 130 institutional reforms, 3 institutionalization, 8

161

institutions, 2, 3, 6, 13, 45, 48, 49, 51, 52, 54, 55, 56, 57, 59, 63, 64, 65, 73, 78, 83, 123, 125, 126, 127, 129, 131, 133, 147 instructors, 53 instruments, 45 insurance, 32 insurance companies, 32 integration, 25, 78 integrity, 6, 15, 19, 59, 61, 65, 113, 118, 119 intelligence, 37, 66, 129 intensity, 126 interaction, 55, 61 interest, 22, 100, 127, 128, 130, 143 interest groups, 22 interest rates, 130 interference, 5, 6, 15, 19 internalization, 62, 113 international, 3, 4, 51, 53, 74, 75, 76, 81, 83, 84, 118, 119, 121, 125, 127, 130, 145 International Labor Organization, 147 international markets, 130 international standards, 84, 118, 119 International Trade, 26, 28 Internet, 92, 119, 122, 123, 124 intervention, 123, 127 interview, 68 investigative, 37, 64, 66 investment, 45, 76, 128, 129 investors, 119, 131 Islam, 8, 39, 62, 147, 149, 150, 151 Islamic, 2, 22, 39, 51, 53, 56, 57, 113, 124, 146, 147, 149, 150, 151, 154 Islamic law, 39 Islamic world, 124 isolation, 7 Italy, 18, 20, 22

J James Wolfensohn, 1 January, 95 Japan, 26, 75, 104

162

Index

job satisfaction, 106 jobs, 21, 55, 57, 78, 140, 145 journalists, 22 judge, 51, 54 judges, 147 judgment, 77, 99, 108 judiciary, 64 jurisdiction, 39 jurisdictions, 1, 6, 37 just society, 149 justice, 2, 43, 118, 150, 151 justification, 20

loans, 52, 135, 142 lobby, 22, 70 lobbying, 129 local authorities, 72, 89, 94, 122 local community, 121, 153 local government, 6, 21, 45, 121, 135, 138, 142, 144, 145, 147 location, 141 long period, 53, 135 long-term, 45, 57, 86, 95, 134, 137 low-income, 140 loyalty, 8, 35 lying, 47

K M Kashmir, 26, 28 knowledge, 2, 48, 56, 63, 70, 73, 74, 75, 76, 106, 125, 126, 127, 149

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L labor, 125, 126, 141, 147, 153 land, 138, 139, 140 land use, 139, 140 law, 2, 5, 20, 35, 39, 79, 86, 143 laws, 14, 39, 78, 81, 83, 120, 127, 135, 138, 147 lead, 55, 61, 62, 86, 100, 105, 113, 120, 129 leadership, 7, 62, 63, 102 learning, 48, 55, 73, 74, 75, 85, 87, 101, 121, 123 learning process, 73, 75 legislation, 22, 146 legislative, 22 liberalization, 130 life cycle, 126 life span, 115 lifetime, 74 limitations, 39 linkage, 54, 127 links, 83, 122, 125, 126, 129 literacy, 46, 47, 146 livestock, 25, 27

machinery, 4, 8, 18, 20, 25, 59, 61, 115, 128 macroeconomic, 6 macroeconomic management, 6 magnetic, iv maintenance, 14, 115 major cities, 134 Malaysia, 66 males, 146 management, 5, 6, 11, 14, 22, 31, 45, 53, 59, 61, 62, 70, 73, 74, 75, 76, 81, 84, 85, 89, 92, 93, 94, 95, 97, 100, 101, 102, 103, 104, 105, 106, 107, 108, 109, 111, 112, 113, 114, 115, 119, 121, 122, 128, 129, 134, 138, 142 manifold, 144 market, 2, 45, 47, 55, 56, 65, 101, 125, 126, 127, 129, 130, 140 market share, 127 marketing, 127, 128, 129, 131 markets, 126, 127, 130 mass, 2, 134, 135, 141 mass media, 2 measurement, 74, 96, 108, 111, 115 measures, 3, 11, 14, 21, 25, 46, 64, 65, 77, 92, 94, 95, 98, 102, 104, 108, 109, 128, 129, 130, 131, 137, 139, 142, 143 media, 2, 4, 5, 14, 64, 66, 121 medical services, 32

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Index membership, 132 men, 8 merit-based, 83 messages, 121 methodology, 111 metropolitan area, 141 Middle Ages, 8 middle income, 142 migration, 140, 144 military, 4, 6, 21, 51, 73, 76, 144 Ministry of Education, 26, 28, 54 minorities, 154 minority, 79 misconceptions, 120 mobility, 78 models, 13, 104 modernization, 5, 8, 43, 60, 89 modernize, 121 modules, 121 momentum, 106 money, 59, 61, 67, 72, 76, 85, 87, 97, 101, 102, 106, 140, 151 monitoring, 47, 60, 70, 71, 93, 101, 107, 108, 117, 138, 143 monopoly, 65 morale, 19, 35, 82 mortgage, 142 motivation, 3, 45 movement, 121 MSW, 97, 105 multilateral, 4, 137 muscle, 51 muscle power, 51 Muslim, 56, 124, 150 Muslim League, 56 Muslims, 8, 124, 149, 150, 151

N nation, 7, 19, 43, 45, 51, 145 national, 1, 7, 8, 43, 48, 56, 72, 74, 78, 93, 107, 118, 119, 127, 130, 131, 132, 143, 146, 147, 149 National Health Service, 33 national identity, 119

163

national security, 43, 131 natural, 22, 139 natural environment, 139 needs, 3, 5, 6, 8, 14, 18, 35, 46, 47, 48, 53, 54, 56, 57, 68, 73, 75, 77, 80, 83, 84, 85, 87, 91, 92, 97, 101, 109, 112, 120, 124, 127, 133, 134, 142, 146 network, 55, 119, 122, 125, 126, 127, 132, 145 New Jersey, 19 New York, 123 NGO, 46, 122, 143, 145 NGOs, 57, 121, 129, 133, 137, 141, 143, 144, 145, 146, 154 NIPA, 78 noise, 138, 140, 141 non-tariff barriers, 130 normal, 6, 15, 19, 39, 64, 79 norms, 63, 148 nuclear, 129 nucleus, 53, 60, 92 nursing, 70

O obligations, 153 obsolete, 60, 115 offenders, 64 on-line, 119 open space, 140, 141 openness, 7 optimism, 21 oral, 114 organ, 133 organization, 8, 59, 62, 69, 70, 73, 75, 77, 78, 81, 82, 84, 85, 96, 98, 99, 102, 103, 104, 105, 106, 107, 109, 112, 115, 118, 121, 134 organizational culture, 13, 65 organizational development, 92, 95 organizations, 6, 7, 8, 11, 13, 31, 41, 45, 60, 68, 71, 73, 74, 76, 78, 81, 82, 85, 86, 89, 94, 97, 98, 99, 102, 103, 104, 105, 106, 108, 111, 114, 115, 117, 121, 127, 128, 129, 141, 142, 143, 144

164

Index

organized crime, 134 orientation, 63, 109, 112 outpatient, 69 output, 64, 70, 71, 100, 102, 108, 112 outsourcing, 11 ownership, 102, 132

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P packaging, 128, 132 Pakistan, 1, 2, 4, 5, 6, 7, 8, 12, 13, 14, 17, 18, 20, 21, 22, 27, 31, 32, 33, 34, 39, 41, 46, 47, 51, 55, 56, 60, 64, 65, 66, 69, 73, 74, 89, 113, 118, 119, 124, 126, 127, 130, 131, 133, 137, 143, 144, 146 Pakistani, 47, 48, 52, 55, 127, 132, 154 paper, 5, 11, 144 paradigm shift, 2 paranoia, 124 Parliament, 147 partnership, 2, 9, 32, 57, 121, 132, 141, 142, 143, 144 passports, 119 pedestrian, 140 peer, 103 penalties, 99 perception, 8 perceptions, 4, 14, 73 performance, 1, 3, 5, 6, 13, 15, 17, 19, 20, 21, 31, 35, 48, 49, 52, 53, 54, 57, 66, 67, 70, 71, 72, 73, 74, 75, 76, 77, 78, 80, 81, 82, 84, 85, 86, 87, 89, 94, 96, 97, 98, 99, 100, 101, 102, 103, 104, 106, 107, 108, 109, 118, 121, 125 performance appraisal, 73, 75, 77 performance indicator, 74, 78, 82, 103, 104, 118 performers, 77, 98 periodic, 92, 109, 143 permit, 55, 77, 126 personal, 2, 3, 61, 70 personality, 2, 35 perspective, 100 petroleum, 26, 27, 28 pharmaceutical, 22

pharmaceutical industry, 22 philosophy, 7, 43, 73, 75, 109, 133 pilots, 141 planning, 1, 3, 4, 5, 7, 9, 19, 22, 27, 28, 31, 52, 59, 60, 82, 92, 98, 105, 112, 119, 129, 133, 134, 138, 139, 141, 143, 145 play, 2, 91 PMS, 109 poisonous, 139 police, 65, 72, 118, 119, 120 politeness, 61 political, 1, 2, 5, 6, 12, 13, 19, 21, 51, 56, 59, 65, 128, 144 political parties, 21, 56 political stability, 128 politicians, 5 politics, 2, 47, 56 pollution, 138, 139, 140, 141 poor, 1, 5, 14, 15, 19, 21, 43, 45, 46, 47, 52, 124, 134, 135, 137, 142, 145 poor health, 43 population, 5, 46, 112, 133, 138, 139, 142, 143 pornography, 124 poverty, 43, 134, 143 poverty alleviation, 134 power, 1, 2, 8, 20, 35, 51, 62, 83, 112, 135 powers, 1, 2, 78, 83, 84, 140 pragmatic, 47, 72 premium, 61 preparation, 22 preparedness, 131 pressure, 74, 96, 103, 133 prestige, 35, 54, 72 prevention, 114 prices, 128 primary school, 57 primary school enrollment, 57 principle, 22, 31, 57, 67, 79 printing, 115 priorities, 56, 67, 85, 97, 102, 145 private, 2, 3, 9, 20, 22, 31, 32, 45, 46, 47, 52, 55, 56, 65, 67, 72, 75, 78, 79, 80, 84, 92, 101, 102, 103, 104, 105, 106,

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Index 107, 109, 119, 120, 125, 126, 127, 128, 129, 132, 135, 138, 141, 142, 143 private education, 56 private sector, 2, 3, 9, 20, 22, 31, 32, 45, 46, 47, 52, 65, 67, 72, 75, 78, 79, 80, 84, 101, 102, 103, 104, 105, 106, 107, 109, 119, 120, 125, 126, 127, 128, 129, 132, 138, 141, 142, 143 private sector investment, 45 privatization, 52, 65, 106, 135 proactive, 102 procedures, 5, 13, 31, 60, 61, 63, 73, 77, 83, 84, 92, 93, 109, 114, 115, 121, 131 producers, 127 production, 2, 27, 114, 126, 129, 131 productivity, 11, 31, 61, 85, 113, 118, 125, 128, 131 profession, 53 professional management, 81 professionalism, 5, 53, 61, 113 professionalization, 3 professions, 78 profit, 153 profits, 147 program, 2, 3, 7, 11, 45, 46, 47, 48, 55, 56, 59, 61, 72, 74, 75, 76, 77, 81, 84, 85, 89, 92, 94, 95, 99, 101, 103, 107, 109, 127, 128, 132, 133, 144 promote, 86, 97, 101, 120, 122, 127, 130, 145, 147 propaganda, 64 property, 119 prosperity, 75 protection, 57, 127, 147 PTA, 65 public, 2, 3, 4, 5, 6, 7, 8, 11, 13, 14, 17, 19, 20, 21, 22, 31, 35, 45, 47, 52, 55, 56, 59, 60, 61, 63, 64, 65, 66, 67, 70, 71, 72, 73, 74, 75, 76, 77, 78, 79, 81, 82, 83, 84, 85, 86, 89, 91, 92, 93, 94, 95, 100, 101, 103, 105, 106, 107, 113, 114, 115, 118, 119, 121, 122, 127, 128, 134, 135, 137, 140, 142, 143, 147, 153 public administration, 3, 5, 59, 79, 83, 95 public awareness, 91

165

public domain, 121 public expenditures, 6 public health, 137 public interest, 120, 143 public money, 61 public relations, 72, 114 public sector, 3, 4, 5, 7, 9, 11, 13, 14, 17, 20, 31, 60, 63, 64, 65, 66, 70, 74, 75, 76, 77, 78, 79, 83, 84, 91, 94, 105, 107, 114, 118, 120 public service, 3, 6, 7, 8, 19, 31, 35, 59, 60, 64, 65, 66, 67, 71, 72, 73, 74, 75, 76, 81, 82, 83, 84, 85, 86, 89, 91, 92, 93, 94, 95, 100, 101, 103, 105, 106, 113, 115, 118, 119, 122, 134, 147 punishment, 31, 65, 83

Q qualifications, 86, 133 quality improvement, 60 quality of service, 45, 67, 68, 107, 115 quality research, 53, 79, 83, 92 quantum, 48, 133 questionnaires, 68 quotas, 79

R race, 123 radical, 67 rail, 69, 141 range, 3, 7, 52, 59, 95, 101, 102, 134 rationality, 8 reading, 47 real income, 79 reality, 123 recognition, 5, 53, 60, 74, 87, 111, 114, 120 recycling, 141 reduction, 11, 18, 114, 130, 140 reforms, 3, 4, 5, 7, 8, 11, 12, 13, 52, 53, 59, 60, 74, 91, 92, 143 regional, 56, 124, 125, 126, 141, 145

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166

Index

regional clusters, 126 regional economies, 125 regular, 20, 22, 28, 47, 55, 67, 98 regulations, 14, 22, 60, 73, 93, 120, 121, 140 regulators, 3, 29 regulatory framework, 45, 143, 144 rejection, 124 relationship, 4, 5, 63, 125 reliability, 68, 69 religion, 149, 151 religious, 62, 63, 131 religious belief, 62 replacement, 115 reputation, 48 research, 8, 47, 48, 53, 79, 83, 92, 125, 126, 127, 128, 129 research and development, 125, 127 residential, 135, 139, 140, 141 resource allocation, 128 resources, 31, 43, 45, 46, 48, 51, 52, 57, 59, 73, 74, 75, 76, 84, 92, 100, 115, 117, 127, 128, 137, 138, 145 responsibilities, 61, 78, 82, 115, 128, 138 responsiveness, 73 restructuring, 2, 3, 6, 13 retired, 21 retirement, 11, 21, 150 retrenchment, 21 retrieval, 119, 120 returns, 122 revenue, 68 rewards, 31, 77, 83 rice, 140 rights, 19, 146, 147, 154 risk, 31 rural, 47, 56, 57, 69, 79, 139, 140, 143, 144, 146, 147 rural areas, 47, 56, 57, 79, 140, 143, 144, 146, 147 rural people, 140

S sacrifice, 31

safe drinking water, 46 safeguard, 154 safety, 43, 68 salaries, 31, 84 salary, 5, 80, 84, 99 sales, 120 sanctions, 83, 99 sanitation, 134, 137, 143, 145 satisfaction, 60, 71, 72, 104, 106, 112, 114 savings, 19, 108, 128 scarce resources, 31, 51 scarcity, 52 scheduling, 126 scholarship, 46 scholarships, 83 school, 22, 47, 56, 57, 72, 145, 146 school enrollment, 57 science, 8, 47, 49, 57, 74, 81, 86, 126, 127 scientific, 8, 48, 76, 80, 81, 92 scientists, 47, 51 scrap, 53 secondary education, 52 secret, 54 secretariat, 133 Securities and Exchange Commission, 29, 65 security, 18, 20, 37, 43, 131, 134, 151, 153 self, 8, 59, 61, 104, 105, 133, 135, 142 self-assessment, 104, 105 self-discipline, 61 self-help, 133, 135, 142 sequencing, 9, 13 series, 115 service provider, 3 service quality, 71, 72, 115 services, 2, 4, 6, 7, 8, 15, 18, 19, 27, 29, 31, 32, 33, 34, 35, 45, 53, 54, 56, 57, 59, 61, 64, 67, 68, 70, 72, 73, 74, 76, 79, 81, 82, 83, 84, 89, 91, 94, 95, 100, 101, 102, 103, 105, 106, 107, 112, 114, 115, 118, 119, 120, 121, 126, 128, 131, 133, 134, 137, 142, 143, 144, 147 settlements, 138, 139 sewage, 139, 146 sex, 124

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Index shade, 123 shape, 96 sharing, 60, 128 shipping, 26 shocks, 129 short period, 35 short-term, 95, 109, 127, 137 sign, 72 signals, 100 Silicon Valley, 125 skills, 3, 53, 61, 62, 63, 73, 75, 76, 79, 80, 84, 85, 87, 95, 107, 125, 126, 129 slums, 135, 139, 142 small firms, 126 SME, 127 SMEs, 126 smoke, 139 social, 3, 5, 12, 17, 20, 43, 51, 64, 80, 134, 138, 143, 144 social sciences, 80 social security, 134 social services, 143, 144 socially, 147 society, 2, 3, 4, 6, 22, 39, 43, 65, 105, 121, 124, 129, 132, 143, 144, 151, 154 software, 125 solid waste, 139 solutions, 107 Soviet Union, 17 specialists, 27, 47, 119 specialization, 35, 126, 127 speech, 123 speed, 73, 100 spiritual, 149 sports, 63, 127, 128 spouse, 19 springs, 149 stability, 100, 128 stakeholder, 8 stakeholders, 3, 7, 121, 143, 145 standard model, 104 standardization, 117 standards, 51, 55, 66, 67, 68, 69, 70, 71, 72, 76, 84, 96, 101, 114, 115, 118, 119, 129, 138, 153

167

standards, 67, 69, 95, 96 state enterprises, 66, 67, 72, 80, 82, 85, 86, 99, 109, 111, 112 state intervention, 123 state-owned, 11, 32 statistics, 27, 86 statutory, 20, 60 stock, 22, 65, 100 stock exchange, 22, 65 storage, 115 strategic, 6, 9, 27, 60, 70, 71, 84, 87, 99, 102, 108, 112, 125, 126, 129, 137, 141 strategic management, 102 strategic planning, 27, 112, 141 strategies, 62, 70, 87 strength, 3, 19, 62, 126 stress, 53 stretching, 96, 100, 135 structuring, 13 students, 46, 48, 49, 52, 54, 55, 57 subjective, 77 subsidies, 45, 134 subsidy, 142 suffering, 134 supervisor, 82 suppliers, 125, 126, 127 supply, 67, 127, 143 Supreme Court, v, 39 surface water, 137 surgical, 127, 128 surprise, 66 surveillance, 138 survival, 7, 64, 66 sustainability, 132 sustainable development, 2, 29, 139, 144, 145, 147, 154 sweat, 150 systematic, 4, 7, 65, 67, 71, 72, 74, 89, 94, 101, 114, 118, 119 systems, 13, 15, 54, 60, 64, 70, 73, 75, 77, 87, 92, 93, 109, 114, 115, 121, 124, 135, 145

168

Index

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T talent, 127 tangible, 48 targets, 69, 78, 80, 82, 85, 86, 87, 96, 97, 98, 99, 100, 104, 108, 109, 118, 146 tariff, 128, 130 task force, 115, 119 tax rates, 65 taxation, 120 taxes, 5 taxpayers, 106, 122 teacher performance, 54 teacher training, 46 teachers, 22, 46, 53, 54, 57 teaching, 46, 53, 54, 56, 63, 151 technical assistance, 145 technological, 81, 121, 125, 127 technological change, 81 technological developments, 121 technology, 3, 8, 49, 57, 61, 70, 74, 81, 86, 121, 123, 125, 126, 127, 128 technology transfer, 126, 127 telecommunications, 27 telephone, 120, 134 tenure, 19 textile, 128, 131 textiles, 127, 128 The Economist, 17 theory, 123, 139 third party, 45, 54, 82 Third World, 82 threat, 43 threatening, 4 threats, 137 time, 3, 5, 6, 7, 15, 18, 21, 23, 25, 31, 34, 35, 46, 53, 55, 56, 57, 60, 61, 62, 67, 69, 76, 80, 81, 100, 103, 106, 109, 114, 115, 118, 126, 128, 133, 135, 146, 150 tolerance, 2 top management, 74, 112 top-down, 8 trade, 120, 127, 129, 130, 131, 132 trade policy, 132 tradition, 5, 56, 80, 150

traffic, 139, 140, 141 training, 35, 46, 47, 53, 54, 63, 64, 72, 73, 75, 76, 77, 78, 79, 80, 81, 83, 84, 85, 86, 87, 113, 114, 128, 144 training programs, 85 traits, 61 transactions, 2, 114 transfer, 82, 126, 127, 128, 129 transformation, 109, 111 transition, 43 transparency, 6, 8, 14, 79, 93 transparent, 56, 120, 131, 143, 144, 146 transport, 26, 119, 135 travel, 140 Treasury, 131 trend, 18, 97, 140, 147 truism, 31 trust, 2, 52, 61, 82, 127, 132 trust fund, 127 trustworthiness, 61 tuition, 48

U uncertainty, 82 UNDP, 4, 145 uniformity, 118, 119 universities, 22, 46, 47, 48, 52, 54, 55, 56, 125 university education, 52 unpredictability, 128 urban, 27, 28, 45, 47, 69, 79, 133, 134, 137, 138, 139, 140, 142, 143, 144 urban areas, 45, 137, 138, 139, 140, 142 urban centers, 140 urbanization, 133, 134 USAID, 4 users, 59, 67, 106, 119, 123, 138

V vacuum, 120 validation, 71, 101

Index values, 2, 60, 61, 62, 63, 81, 108, 112, 113, 124, 146, 147, 151 vehicles, 115, 139 vehicular, 140 venture capital, 126, 127 victims, 80 violence, 47, 124 visible, 70 vision, 2, 74, 112, 144 vocational, 45, 47, 86 vocational education, 45 vocational training, 47 voice, 120 volunteerism, 133 vouchers, 69

169

welfare, 112, 146, 147, 151, 153 Western countries, 19 Western culture, 124 Western Europe, 17, 20 wisdom, 62 women, 146, 147, 154 work ethic, 1, 5, 62, 63, 109 workers, 11, 81, 114, 127, 147 workforce, 85, 114 workplace, 61 World Bank, 1, 6, 11, 12 writing, 47 wrongdoing, 65 WTO, 129, 130, 131

Y W yield, 2, 6, 76

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wages, 64, 66, 150 walking, 141 waste, 1, 5, 11, 32, 52, 117, 134, 138, 139 water, 119, 134, 137, 138, 143, 146 water resources, 137 weakness, 6 wear, 68 web, 6

Z Zakat, 18, 26, 28 zoning, 135, 138, 139, 140, 141