I was recently reading about the state of corporate governance in India and of the focussed way in which we have framed the issue for corporate regulators like the Corporate Affairs Ministry and SEBI over the years. Since 2000 and again in 2003 with 2 committees to formulate thought on corporate governance from the investor protection point of view for SEBI resulted in incorporation of certain compliances and public disclosures under Stock Exchange Listing Agreements for listed companies. In 2013, the new Companies Act was enacted which further strengthened the Board responsibilities for corporate governance. There are therefore a reasonable amount of safeguards around how companies are run-since ordinary and institutional investors are invested in them. Profitability is indeed a big driver for better regulation, as it is for innovation.
What is the status of our other public goods-especially the state of security? From the consumer’s point of view, 1.every law abiding citizen should be able to see police as the first person one turns to in case one becomes a victim of crime-not as someone to fear and go to as the last resort, and 2. every law abiding citizen should feel a sense of safety in her city.
Although there are a lot of anecdotal misgivings about non_approachability of police, there are no reliable measurements about the fulfilment of these consumer expectations. The data on policing is all one sided-that which the police records in their crime registers. There is no independent evaluation of the delivery of the above stated public expectation from security services of the state.
I have been a passionate advocate for these independent evaluations in the form of annual Crime Victimisation Surveys at the police station level for many years but the cost of such surveys is apparently a factor to not undertake this program in our country. However if we want real and lasting ‘reforms’ in Indian police, money should be put on goals oriented performance and delivering satisfaction to people on the state of security. Currently the focus of financing is on shortfalls or upgrading of equipments, motor vehicles and infrastructure. Crime Victimisation Surveys can reorient financing to the deficits areas of people led demands and therefore lead to more public satisfaction with police performance. Fulfilling the funding needs thrown up from the Surveys will yield better output in police performance at the police station level-which is exactly what ‘police reforms’ sets out to do.
Both the above stated goals are measurable for a year on year performance by the jurisdictional police stations in every city, town or village. And they will be a good metric against which to see the police dept’s statistics. The broad picture on the state of security will gradually become truer and therefore more trustworthy. What it needs is the will to implement these reforms.