Go for PPP in education, health

Since the new government headed by Manmohan Singh assumed charge, there is a feeling

RELATED ARTICLES

that there will be renewed effort to ensure social equity and adopt a sustained model of inclusive growth. In spite of high gross domestic product growth, introduction of NREGA and farm loan waiver schemes, a large section of our population has not been able to lead a life of dignity.

There has been very little development in terms of basic education and healthcare. The underprivileged sections of our society have gained very little apart from the intended benefits of various pro-poor schemes, such as NREGA. Not only children in rural India, even those belonging to less privileged and BPL families in urban centres hardly have access to education. They also do not get any worthwhile medical care from government-run hospitals.

In spite of its best intentions and progressive leadership, the government’s apparatus in both these sectors is miserable. There seems to be no move to translate the government’s will into action. The central and state governments have huge infrastructure in terms of primary and middle schools, and government hospitals. This infrast-ructure should not be allowed to languish.

Public-private partnership (PPP) with non-profit organisations run by corporate hou-ses, credible NGOs and other charitable organisations could administer these critical assets for the larger benefit of the society. But, the government has to make sure that this model ensures social equity by providing education and healthcare to the less pri-vileged groups.

The government’s infrast-ructure can be utilised under the PPP model to provide education and medical care on quasi-commercial terms. This infrastructure can be put to dual use, and if the intention of the private partner is honest, this can bring about a qualitative change in our efforts to deliver social equity.

The money earned by providing these facilities to those who can afford them can be used to meet the cost of providing these services to those who cannot pay for them. The budget allocated by the central and state governments for these schools and hospitals can be made available to these units under the PPP model.

There are a large number of entrepreneurs, companies and NGOs that devote their time and resources for the social sector. These initiatives are not only about discharging corporate social responsibility (CSR), but also earn them additional prestige. It has been observed that most companies now have a CSR wing. Such efforts were started by the House of Tatas in early 20th century and were later emulated by the Birlas.

Today, there are many companies who have taken a quantum leap in creating social infrastructure for the be-nefit of the masses.

The government needs to work out a mechanism to id-entify the right companies and NGOs by looking into the-ir track record. A high-powered committee can be set up for this purpose or an advisory committee can be constituted drawing people from the field of education and healthcare to guide the new PPP model and enable those involved in it to discharge their responsibilities in the best possible way.

A model memorandum of understanding (MoU) must be prepared and its terms designed in such a manner that it ensures social equity and fully protects the interests of the less privileged and BPL families. This should be followed by a regular audit of these units to ensure that the terms are complied with. Pu-nitive clauses could be incorporated so that these terms are not flouted.

The assets created by the government are invaluable and their ownership should remain with it. The PPP model should be limited to operational aspects and government should reserve the right to terminate the MoU if its terms are flouted or the objectives of the initiative are not fulfilled. A personal undertaking can be obtained from companies and NGOs so that the direct responsibility of administering the MoU is plac-ed on them.

It is impossible for the government to cover all the regions in the country and all its assets. However, it can make a beginning by involving the private sector in a few initiatives and monitoring their results. If the results are encouraging, more regions and units can be covered.

This proposal may not be an ideal or workable solution, but can be a step forward from the bleak scenario at present. At present, there is no accountability. The administrative machinery has failed to deliver in the education and health sectors.

A change is needed to ensure delivery of social equity to the common man. The

government cannot afford to turn a blind eye to this problem. Setting up a high-powered commission to implement the PPP model could be one answer.

The writer is chairman, Ambuja Cements and Ambuja Cement Foundation

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
Image CAPTCHA
Copy the characters (respecting upper/lower case) from the image.

FC NEWSLETTER

Stay informed on our latest news!

EDITORIAL OF THE DAY

  • Retail investors need to be drawn to bond trading

    A country requires both a healthy capital market and a liquid debt market for vibrant economic growth. India has had the first for a long time.

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Urs Schöttli

Japan’s living national treasures

While the world is fascinated by the economic “miracles” in ...

Robert Clements

Cherish good times and accept bad ones

Initially, I was angry and confused, I was even repentant…,” ...

Bubbles Sabharwal

Mothers just see things differently; they can’t help it

Before we begin on mothers, I have to share this ...