The Cabinet Resolution establishing NITI (National Institution for Transforming India) Aayog, as a replacement for sixty years old Planning Commission, makes an interesting reading of what may well be the guiding spirit of this new institution. As the new team at NITI Aayog begins to take forward the aspirations enshrined in this Cabinet Resolution, seven over-arching cornerstones of its functions emerge:

In an important way, the mandate of this new entity is vast and comprehensive, without specifying particular domains of policy. The Aayog can begin to operationalise the above principles without necessarily inducting within itself all the domain expertise it requires. In fact, a lean and facilitating structure of the Aayog, with strong networking capacities, can draw on the enormous domain knowledge that already exists in the country. Much of this expertise is in the private sector, outside the government institutions. Both for-profit and not-for-profit private sector---individuals and institutions—can be called upon to function as task force, work groups, and other temporary mechanisms to accomplish a particular set of policy tasks, and then be disbanded to carry on.

A second major imperative for the Aayog is to understand that its mandate is not limited to national government alone. Today, the relevance of such support to various state governments is far more critical. State governments lack strong domain knowledge, and their capacity to harness such expertise varies greatly across the country. Most planning boards in state governments do not function adequately. Aayog can perhaps act in such  a non-partisan  manner (since it does not have resource allocation roles at all) so that all state governments can benefit from its support.

Finally, the Aayog can identify several constitutional mechanisms that bear close links to some aspects of its responsibilities. Two such mechanisms are particularly relevant. First is the State Finance Commission (SFC). Most of these SFCs have not been able to realise their full potential, including integration with National Finance Commission, due to a variety of political and technical constraints. Aayog can facilitate realisation of fuller potential of SFCs in each of the states.

A second mechanism is District Planning Committee (DPC); in most states, DPCs have not been properly constituted, or empowered or resourced to perform the most crucial integrative planning function in each district of the country. Aayog can support processes which enable DPCs to realise their full potential, thereby ‘mid-wifing the re-birthâ of the Planning Commission in each of the more than 600 districts of the country.

The essence of the mandate of NITI Aayog, therefore, is to find ways in which the Rajniti (policy of the state) can be harmonised and integrated with Lokniti (policy of the people). Politics of  effective governance needs to be played out at the interface of Rajniti and Lokniti. It is in effectively mediating this interface through open conversations of different perspectives, experiences and expertise that the Aayog can become most productive and useful to the people of India tomorrow.

Rajesh Tandon
Founder-President, PRIA, New Delhi
Pongal-Sankranti Janaury 2015

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