(Sample Material) Gist of Important Articles from IIPA Journal
Topic: Revamping the Role of Government as a Regulator O.P. Minocha
Owing to the emerging trends of globalisation along with liberalisation and privatization, during the last two decades, there have been significant changes in the role of government, particularly in the developing countries. Some of these countries are still in the process of restructuring their administrative system. This emerging trend has a large number of implications for policy-makers, administrators and academicians. Since July 1991, to implement “New Economic Policy”, a number of policy options and administrative initiatives have been experimented in India. Even the second Administrative Reforms Commission in its approach paper on “Reforms in Governance and Administrative” has highlighted some of these issues. The Commission, as per terms of reference is engaged in, “to suggest a framework for possible areas where there is need for governmental regulation (regulators) and those it should be reduced”.
A large number of developing countries had received loans from the World Bank and/or from the international fund agencies. The loans were conditioned on the promise, that, the recipient countries would adopt free-market policies and bring about structural adjustment. Those structural adjustment programmes aimed at both macro-economic and macro-economic changes. On the micro side, the main objective was to improve efficiency in the use of resources by removing price distortion, opening up more competition and removing administrative control (deregulation). It also aimed at reducing government’s intervention in areas where private sector can operate more efficiently. Thus, the structural adjustment aimed at less government, free trade and greater role of private sector. This is opposed to the philosophy of state intervention for economic development and commanding heights of public sector.