Minimum Government or
minimizing Government?
Madhu.S, Director (Projects)
CPPR

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Scenario2

Minimum government and maximum
governance
Role of State
Does Cabinet downsizing mean Minimum
Government?
2009 Administrative Reforms Commission
report envisaged a maximum of 20-25 super
ministries
http://economictimes.indiatimes.com/artic
leshow/35745619.cms?utm_source=contentof
nterest&utm_medium=text&utm_campaign=cpps
t
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What is downsizing?
Small government in size
 Limited government in role
 Delegating government in function
 Cutting cost
 Liberal perspective- Expanding markets
 State as a Social ContractVoluntary withdrawal or minimal stateSource: Deccan Chronicle, 31 May
2014

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Cont.4

Excesses of Over Government?
Who are the bureaucrats?
Arthur Sheldon in “State is Rolling Back”Competitive bureaucracy- phasing out
Margaret Thatcher, UK and Ronald Reagan, US
Republican Over government model vs Liberal
Free market model- Statism vs Anti-statism
Chinese Model- Shrinking to integrate state
with politics- Role of State Planning
Commission
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Government of the Busy, by the Bossy, for
the Bully5

To little or too much government?
Is there optimal size? Armey Curve- Growth of
economy and its relation with size of
government (tax burden)
Government system or Market system?

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Suggestions6

Rationalisation of departments and
government- Cost –Beneft analysis
Big Society(market) and small government:
Chinese example
Impact evaluation with performance metrics
for bureaucrats and score cards for
government departments
Integrating technology and adoption of
e-governance

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References“The State is Rolling Back”, Arthur Sheldon, Vol 2,
Liberty Fund
“The State,” Anthony de Jasay, Liberty Fund
“Antistatism and Government Downsizing: An
Historical perspective”, Mary O Furner, The Urban
Institute, December 1996
“Sizing the Government”, Kristoff De Witte-Wim
Moesen, Public Choice (2010) 145:39-35
“Government Size and Economic Growth”, Vedder and
Gallaway, Joint Economic Committee, December 1998
“Downsizing the Central Government: The case of
People’s Republic of China”, Hon S Chan, Vol 2, No.3,
1999
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THANK YOU

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