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Discuss the changes that have taken place in the role of the state, and in particular the bureaucracy, in the post-liberalization era in India.

Approach:

• Introduce by mentioning the conventional role of state and bureaucracy.
• Briefly explain the rationale of liberalization.
• Discuss the changes that have taken place in their roles in the post-liberalization era and conclude accordingly.

Answer:

The age of liberalisation began in India in 1991 with the introduction of extensive economic reforms. Prior to liberalisation, the government, and especially the bureaucracy, dominated the socioeconomic transition of the nation. In practically all areas of service delivery, including production, the bureaucracy played a significant role in addition to maintaining law and order and providing public goods. Overbureaucratization as a result caused obstacles for private business owners and inefficiency losses in the public sector.

Liberalization sought to remove unnecessary controls and enable enterprises to work smoothly and contribute in the process of economic and social development. This has led to change in the role of state viz.:

• Shrinking Role of State

o By de-licensing various industries and privatising PSUs, the state has focused on creating an environment that will encourage the private sector.

o Non-state players like the commercial sector and civil society are now progressively taking on some of the state’s traditional tasks, such as advocacy and mobilisation.

• New set of functions: The bureaucracy has come to assume new roles such as in ensuring fair market conditions by establishing Competition Commission of India.
• From Regulator to Facilitator: The state has assumed the task of facilitating other

developmental partners in policy formulation and developmental planning. For e.g. hangouts and hackathons conducted by ministries, democratic decentralisation under the 73rd and 74th constitutional amendment Acts.

• Result orientation: The state has shifted away from its prioritisation of process orientation and toward outcome orientation, accountability, and citizen participation in its operations.

The current catchphrase is “Minimum Government, Maximum Governance.” As a result, bureaucracy’s function is changing more and more from that of an inward-looking administrative wheel to that of a facilitator of social services on the one hand and a supporter of the free market on the other.