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Economic Civil Service in India
Essay Contents:
- Essay on the Subject Matter of Economic Civil Service
- Essay on the Management Pool for Civil Servants
- Essay on the Functions of Economic Civil Services
- Essay on the Qualities of Economic Services
Essay # 1. Subject Matter of Economic Civil Service:
Since the dawn of independent era, the role of our independent state has undergone a complete transformation. It has ceased to be only a regulatory state. It has assumed the role of a welfare state. Hence it not only maintains law and order but also strives for ameliorating the lot of the half-famished and half-naked teeming millions.
It owns a vast field of natural resources. It is a great manufacturing and trading concern as well. As such, it is engaging itself in all sorts of commercial activities. With the growth of these activities of the state, the importance of bureaucracy has also become manifold.
However the civil services which prior to attainment of independence shouldering the policing and regulatory activities of an alien government have not undergone a change in their outlook. They have, as such, failed to carry on the burden of highly technical and specialized activities of our dynamic society.
Our developing society is in dire necessity of dedicated and devoted civil services, imbued with the new social values and ideas.
Three types of services are required for our newly emerged welfare state, viz., administrative, technological and economic. The third category of services are required in the wake of the planned economy movement launched in post-independent India.
Since 1948, Government of India has embarked upon a programme of nationalization and industrialization with a rapid speed. However, the problem of manning the vast economic activities has posed a question whether or not a separate economic civil service be constituted.
It is being increasingly realized that the existing civil services equipped with general qualifications are not capable of performing functions which have grown on account of switchover to planned economy. They lack the qualities of initiative, enterprise, or originality and constructiveness of mind, of human understanding and democratic contact of scientific training and acquaintance with social studies.
Though the public ownership has replaced the private ownership and the Government has become virtually the owner of what was previously the monopoly of a few capitalists yet the officials still remain in the ivory towers.
They remain segregated from the public. Instead of seeking co-operation from them, they believe in administering them. Hence it is increasingly felt that 19th century civil service approach is not applicable to the 21st century problems—complex and complicated.
According to Professor Greaves, the civil services lack in adaptability and the “development of new public services outside the ambit of the civil service in the form more specially of the Economic Services and Public Corporations—is a reflection on the ability of the civil service structure to adapt itself to the growing needs of the social services state.”
Under these circumstances the emergence of economic civil service seemed to be the crying need of the hour.
The question engaged the attention of the leaders on the top and also the planners of the country’s economy. The Planning Commission deputed A.D. Gorwala in 1951 to report whether the present administrative set-up and methods were adequate enough to implement the plan or a separate body of civil services was required for the purpose.
Gorwala gave his considered opinion as such. He did not favour the establishment of a separate Economic Civil Service. However, he did point out that the present system of entrusting this responsibility to the existing civil services was not desirable.
He recommended that “from this point of view it would seem to be desirable to bear in mind while recruiting, for instance, to the I.A.S. the necessity of choosing some specialists in particular fields of economics like Industry, Finance, Transport, etc.” and that “it might be worthwhile to send selected people abroad for two or three years’ research in specialized field.”
“They would then get that proper perspective of the various links in the economic system which the policy making official in the financial and industrial field must have.”
What Economic Civil Service to Comprise of?
Economic Civil Service will comprise four types of personnel viz.:
(a) The personnel competent to render advice to the government at the highest level of economic policy,
(b) The low level personnel competent to collect and present the economic data which is to form the base of economic policy,
(c) The personnel equipped with managerial experience and caliber associated with efficient business,
(d) The personnel having knowledge of economics more suited for certain secretariat and executive posts.
Essay # 2. Management Pool for Civil Servants:
The Report entailed a lot of controversy. The force of circumstances silently worked out a solution though an imperfect one. An Industrial Management Pool was created in 1957. It consisted of 200 permanent personnel of the status of Central Services Class I.
The Pool was organised in seven grades on different pay scales, viz.,
Grade I—Rs. 2,750 fixed.
Grade II—Rs. 2,500 fixed.
Grade III—Rs. 2,000—125—2,225.
Grade IV—Rs. 1,600—100—2000.
Grade V—Rs. 1, 300,-60—1,600.
Grade VI—Rs. 1,000—50—1,400.
Grade VII—Rs. 600—40—1,100.
Besides the above grades for senior officers, provision was made for junior officers in the scale of Rs. 350—25—500—30—620.
The above grades have become manifold since the 5th and 6th pay commissions Reports. Keeping in view equivalence with other services, comparable grades have been maintained in case of economic civil services. These services are prestigious services and are manned by men of calibre and those who have nose for economics.
It’s Organisation:
In the initial stage, the Pool was kept under the supervision and control of the Home Ministry but at a later stage was put under the supervision of the Department of Personnel, and the Cabinet Secretariat. The Ministries of Commerce and Industry, Steel, Mines, Fuel and Transport and Communication also participated in its day to day working. Other public utility ministries became participatory at a later stage.
The Pool was required to manage the senior manage posts in the public enterprises whether directly owned by the Government or by Public Corporation or the Companies in which Government nature concerning general management, finance, accounts, sales, purchase, stores, transportation, personnel management, and welfare and town administration fell within government purview.
Process of Recruitment:
The services constituting the Pool were free from Civil Service Rules. It was correctly realized that recruitment through a competitive examination in general academic subjects, could hardly requisition the competent services for the business management. Hence appointment to these services was required to be made through selection.
A Selection Board comprising the chairman or a mem
ber of the Union Public Service Commission, a non-official member, Managing Directors, General Managers of State undertakings and representatives of participating ministries is required to make the preliminary selection.
Its recommendations are to be then placed before the U.P.S.C. which is to make the final selection and certify the names of the eligible to the Government. Recruitment may not be restricted to candidates applying for absorption in the Pool in response to advertisement. The Board may consider the names recommended by the Ministries.
Qualifications:
The qualifications for eligibility to the Pool are:
(i) Degree of a recognized Indian university or an equivalent thereto,
(ii) Between the age of 27 and 47, and
(iii) Preferably possessing industrial or managerial experience for five years.
Conditions of Service:
Neither the seniority rules nor system of automatic increments are followed. Merit is the criterion for promotion both in the lower as well as in the higher grade. The decision regarding promotion is to be taken by the Board of Directors of the Corporation or Company under whom the officer is working.
However, it is subject to confirmation by the controlling authority on the advice of the Central Advisory Board. Since there is no seniority list, all officers can hope for promotion to higher ranks. This ensures more objective and scientific standards for rating the efficiency of the officers. There is no retirement age and no system of pension to the retired personnel.
Evaluation of Pool System:
Though the constitution of management Pool was a commendable step, yet it has its limitations:
(a) The Budget control and accounts posts have been kept out of its purview. All such posts (e.g. posts in River Valley Project) may be kept under its purview,
(b) A separate Economic Civil Service may be constituted with a hierarchical superstructure admitting greater divergences and maximum interchangeability. More flexibility of grading will attract talent and allure merited individuals,
(c) There is a necessity of creating similar services for the states as well as they are the backbones of our social, economic and political structure. It will be still better if State cadre of the Economic Civil Service personnel is created to help and guide the state services, analogous to IAS and IPS which help and guide state services.
The management pool system has been abolished. It will not be out of place to point out that during the previous years, the Central Government constituted a number of other specialized services in the economic and financial field.
Indian Statistical service and Indian Economic service are the examples. These are Class I services having grades equivalent to that of Central Services. They have to compete for the post through UPSC.
However, their examination is not clubbed with IAS and Allied services. They are manning important public enterprises and some important assignments in Planning Commission. Evidently, the Government is striving to solve this problem in its traditional way by creating small specialized services for each Department.
However, this has not satisfied the critics. Even the Administrative Reforms Commission has expressed dissatisfaction against these piecemeal changes.
Essay # 3. Functions of the Economic Civil Services:
The functions of the Economic Civil Services have been well explained in Five Yearly Plans. They are:
(a) Formulation and execution of economic policy,
(b) Administration of public controls,
(c) Administration of public enterprises of our industrial or commercial character.
(d) State Trading,
(e) Organisation of development councils for industries,
(f) Managing certain departments such as Industrial, Commerce and Economic Affairs,
(g) Implementation of certain development plans.
Essay # 4. Qualities of Economic Civil Services:
Since the Economic Civil Services have to perform special tasks, they are to be embodiment of following human and technical qualities:
(a) An understanding of the social and cultural values cherished by the community,
(b) A thorough grounding in the economic principles and organisation,
(c) An intensive training in business methods and techniques,
(d) Democratic leadership,
(e) A first-hand experience in business enterprises and management,
(f) Equipment with basic knowledge of a social welfare programme and administration,
(g) Possession of knowledge and experience in public relations.
While referring to qualifications of Economic Civil Service, Gorwala remarks, officers of this class could not in any case come from raw degree holders.
Economic grounding would certainly be of some use to those holding posts in departments where decisions have often to b made in the light of economic data and trends but there would be no particular advantage in confining recruitment to these posts to those with degrees in Economics. An officer with general ability could be given the necessary economic training during the earlier years of service.