Mountains in Plains

India’s municipal accounting reform is one of the basic reforms required in the decentralization process of urban local bodies. Central and state governments and specific urban bodies have made efforts for the roll out of accounting reforms. It can be seen that the accounting reform activities are being undertaken in different directions, resulting in varying efficiencies and results. Although the reforms undertaken are an improvement from the earlier version of manually maintained single entry–based accounts, there is need for greater guidance and better direction.

Municipal accounting reform is a necessary tool for improving urban finances and governance. However, urban bodies lack the internal capacity, knowledge, and experience to undertake this reform process. Hence the urban bodies are bound to depend on external expertise for initiating the process, implementing the project, and sustaining and improving the process. The success of the reform depends on the planning ability and the inclusion of a comprehensive computer software module that is capable of meeting all the data requirements, satisfying analytical needs, and providing adequate reports and information to enable the municipal management to make informed decisions. This emphasizes the need for standardized modules capable of providing for narrow as well as wide networked systems and meeting the demands of various local conditions. The implementation needs to be done in a phased manner establishing a robust double entry accrual-based accounting system initially, improving this in the second phase through a financial management improvement program, and then attaining an e-governance system in the final phase.

This working paper provides guidance for implementing municipal accounting reforms based on Indian experience and can be used in other developing countries with necessary adaptation. The objectives of this paper are to highlight the importance of implementing accounting reforms in the urban local bodies, to inform the processes involved in the implementation, and thus to provide the way forward to improve urban local bodies’ financial status and overall management.

MARI Working Paper

Municipal service delivery touches the basic public amenities provided to the citizens. But the services provided as a governmental function are below the standard requirements, and unsatisfactory to the public. Government functionaries need to transform from being providers to regulators and monitors of the services. This calls for induction of outside skills into the municipal system to bring about changes. There is a general apprehension that private sector’s involvement would not be sustainable as it would escalate costs due to profit maximization motives, monopolistic attitudes and fears of failures.

Based on a research study a new municipal service delivery model has been formulated to overcome the above situation. The findings of this study are twofold: (i) the municipal system left to itself will collapse as there is neither organizational commitment nor employee motivation for committed delivery of services, and (ii) the private system left to itself cannot provide a sustainable long term service as it will be driven by profit motives and lack of social commitment leading to monopolistic approaches.

Differing from a simple outsourcing model, the research proposes an assignment model. According to this a new breed of enterprise system called Municipal Enterprises should provide municipal services under Municipal System through an Assignment Model. The model therefore is called Assignment Model of Municipal Enterprises and Systems or in short AMMES model.

The AMMES model of municipal service delivery is based on appropriate assignment of municipal areas to private service providers for service delivery. The research provides details of (i) implementation process, (ii) financial cost effectiveness, (iii) success parameters and (iv) protection against market failures. It also invents a new service sector for providing municipal service delivery. The model is universally applicable in all municipal bodies with appropriate adaptation.

Author: Dr. C.T. Abraham

I write this piece for the benefit of migrant parents and their children in understanding the realities of migration of families that take place more so in the current times than in the past. Migration affects emotional and social relationships and unintentionally creates new dynamics in social, economic and political spheres. This calls for greater sensitivity in human relations in the migrant’s societies and localities.

Migration is part of human history. Migrations have made great and significant changes in the course of human history. It is estimated that one out of every 35 persons worldwide is a migrant. Further it is estimated that 48 per cent of the migrants are women. Migration is a result of the operation of negative factors (push factors) in the areas of origin and positive factors (pull factors) at destinations. Migration affects every facet of life economic, social, demographic, political and even religious. Large scale migration has taken place from different parts of the world largely during post second world war period, and still the migration is an ongoing process with greater impacts. The main reason for the migration has mostly been the search for more comfortable life in terms of job opportunities, better living conditions, and better educational facilities. This migration happened to destinations both within the country and to foreign countries. There are also unfortunate migrations both into and out of countries due to war and social commotions although they are politically or socially compelled ones.

Migration is a deprivation. For some, migration is freedom from the struggles of the origins but for most it is a deprivation of the comforts of the origins. The compulsions associated with the migration leave great marks on the emotional attachments with the people and place on a permanent basis. The compulsions of migration cause anxieties, physical and mental stress in the course of adjusting to the new environment and conditions. The intensity of the compulsions for migration decides the ability and determination to withstand and adjust to the new situations.

Migration is a challenge. The migrant always faces the challenge from the new environment. The different geography, environment, climate, culture, people are all the different aspects of the challenge. The biggest challenge is the one relating to uncertainties, insecurity, fear of failure, and economic inadequacies. Human frailties are generally overcome by the migrant and face the challenges with the determination of do or die. There is a great sacrifice on the part of the migrant, especially in the initial stages of the migration as one has to forgo many pleasures of life to find resources to fight the challenges of life.

Migration is an opportunity. Along with the challenges migration provides many opportunities as well in the newfound land. The success of a migrant can be measured by the opportunities that have been utilized to enhance one’s capabilities, improve economic conditions, build up social network and also contribute to the society. Many use the opportunities to transform their own original traits and thus be able to adopt new value systems, and global outlook to bring about a new thought process.

Migration is a social transformation. Migration leads to developing new human networks leading to diverse interpersonal relationship dynamics creating a new social system. A new society gets evolved and developed. A social transformation takes place and a new society gets created. This transformation is felt within economic, religious, and political realms of the society. Migration leads to a new community life meshing with the old and the new. The old world in the migrant’s personality adjusts to the traits of the different world creating a self adjusted and newly brewed world. This new social life also brings about a new personality in the migrant which is capable of understanding the old and new and is able to look at social issues and world values with a new perception and openness. The migrant thus brings about a new social transformation.

Migrant’s children are a new society. It is interesting to note that the first generation migration leads to the formation of a new society through their second / third generation children. These children are beyond their first generation parents in all aspects. Unlike their parents the children don’t go through the pangs of migration but are ready to accept the new society in which they are grown. They don’t get affected by the forces which controlled their parents. They belong to a new thought process of a new society and a new world. Their value systems may get transformed and the parents should not get bewildered. The migrant’s children are in a better position to understand the old and the new worlds with a more balanced mind and approach. The migrant’s children are blessed with a better economic, social and emotional security and safeguards. This should enhance the chances of creating in them more balanced and capable personalities enabling them to achieve greater heights than their migrant parents.

The migrant’s mission is to create new and better world, accepting the challenges and utilizing the opportunities and pass on that mission to the new generation.

Dr. CT Abraham, PhD

First post: Snaps from a highly successful municipal accounting workshop held in Lucknow.