Insights from Amit Varma's Podcast with Karthik Muralidharan: The Bureaucrat’s Burden (Episode 375)

Had the pleasure of listening to Karthik Muralidharan on "Seen and the Unseen." Having worked in the social impact space for over a decade and witnessing some of the systemic challenges firsthand, I've always wondered how to make sense of such a complex system and explain the challenges in simple terms. Karthik, in his latest book (Accelerating India's Development - which I'm reading), talks about some of these issues - but the podcast provided a compelling set of insights on what the challenges are and what has worked over the last several decades for India. Though one post won’t do justice to the 4+ hour long podcast, this is an attempt to capture some key insights that I found quite compelling.

Outcome-Oriented Culture ??

In many government schemes, success is often measured by the number of projects completed rather than the outcomes achieved. This focus on inputs rather than outputs leads to a misalignment of incentives and a lack of real impact on the ground. Shifting the focus from scheme implementation to outcome orientation can make the entire system more efficient and effective. Karthik highlighted that by setting annual outcome targets, governments can ensure that their initiatives lead to tangible improvements rather than just procedural compliance.

For instance, focusing on literacy and numeracy outcomes (a current focus area across states) rather than the number of schools built can drive more meaningful progress in education. This perspective is also valuable for Corporate Social Responsibility (CSR) initiatives, where there's often more emphasis on ticking boxes than evaluating the quality of impact on the ground. ??

Decentralizing Administration ???

India has only 16 public employees per 1,000 people, compared to China's 57 per 1,000, debunking the popular perception that China is highly centralized. In states like Bihar and Uttar Pradesh, the numbers are even lower, with just 3 and 6 public employees per 1,000 people, respectively. This indicates a significant lack of administrative capacity and accessibility, leading to slow and ineffective governance.

Karthik discusses how decentralizing administration and bringing governance closer to the people can enhance the efficiency and responsiveness of public services. For instance, in the mid-1980s, N.T. Rama Rao led a significant reform in Andhra Pradesh, restructuring administrative divisions from large blocks of 200,000-250,000 people to smaller mandals of 60,000-75,000 people. This reform aimed to bring the government closer to the people. Research by one of Karthik’s PhD students found significant improvements in the delivery of public goods in villages near the new mandal borders, showcasing the success of this local governance enhancement.

Higher Pay and Accountability ??

Higher pay for government employees does not necessarily translate into better outcomes due to a lack of accountability and performance incentives. In fact, Indian low-mid level Govt employees are among one of the highest paid public servants in the world. Karthik also points to how Indian teachers are paid more than their counterparts in many developing countries, yet the outcomes do not reflect this investment. An RCT in Tamil Nadu showed that increasing pay for Anganwadi teachers by 20% did not lead to improved outcomes, highlighting the need for accountability alongside better compensation.

Reforming the UPSC and an Alternate Track for the Top 2% ??

The Union Public Service Commission (UPSC) exam is renowned for its integrity, but it is inefficiently utilized. Only the top 0.2% make it into the elite services, leaving many qualified candidates untapped.

Karthik proposed creating an empaneled list of the top 1-2% of candidates who do not make the final selection. These individuals could be offered three to five-year contracts in various government departments, with opportunities for renewal or permanent positions based on performance. This approach would leverage the high-quality recruitment process more efficiently and augment state capacity with motivated professionals.

Strengthening District Administration ??

District collectors in India manage over 50 departments but are often severely understaffed, limiting their effectiveness. Augmenting the district collector's office with additional young professionals can significantly enhance their capacity to analyze data, make informed decisions, and implement policies effectively. Karthik proposed hiring two young professionals for each district collector on fixed-term contracts. These professionals would have the authority of government employees and be responsible for tasks such as data analysis, meeting reviews, and presentations. This augmentation would enable district collectors to manage their vast responsibilities more effectively, leading to better governance outcomes.

Impact of Illam Thedi Kalvi on Foundational Literacy and Numeracy in Tamil Nadu ??

One particularly fascinating insight was about the Illam Thedi Kalvi scheme in Tamil Nadu, which has revolutionized the state's education system. Government classrooms here are usually overcrowded and hard to manage, but this program, offering a ?1000 monthly stipend, has attracted many young women eager to step out of their homes. Despite the modest pay, the opportunity to engage with the community and gain a sense of purpose is a huge draw for them.

The result? Smaller, more manageable classroom sizes and personalized attention for students, leading to better foundational literacy and numeracy skills. Additionally, these young women are gaining confidence and social connections, making the program a win-win. It's a great example of how smart initiatives can transform education and empower communities simultaneously.