Not letting the Supreme Court order on the two oil PSUs derail the reforms process, the North Block is drawing up a broad framework on how to proceed with the next phase of policy reforms.Following a recent decision taken by the Finance Ministry and ‘‘partner’’ Asian Development Bank, six advisory committees are being set up to look into policy initiatives in macroeconomic management; government finance and state government finances; agriculture, food security and rural development; trade policy and industrial performance; transport and infrastructure development; and energy infrastructure development.The advisory committees are to come up with concrete policy initiatives for reforms—and not vague or general recommendations—in these areas within two years. These panels will meet from time to time to take stock of the situation.Apart from North Block heavyweights such as chief economic advisor Dr Ashok Lahiri, advisor to the Finance Minister Dr Vijay Kelkar and additional secretary in the ministry Dr Pradipto Ghosh, the advisory committees will include leading economists and experts like Mihir Rakshit, Dr Suman Berry, Dr Shankar Acharya, Dr R.K. Pachauri, Subir Raha and others. ‘‘As we have realised over the years, reforms process in our country succeeds only when it is home-grown. Hence the initiative of forming a broad framework for the future reforms process in the six critical areas which the ministry has shortlisted,’’ says Dr Lahiri.According to him, as there is no shortage of experts from within the country, it makes more sense to involve them and broadbase the process instead of going in for consultants.Almost the entire cost of the exercise, estimated at around Rs 50 crore, would be borne by ADB. According to ministry officials, ADB would put in $7 million of the total cost of around $8.5 million. The Finance Ministry would pay the remaining $1.5 million but that too would be imputed cost in terms of services and other helps in kind. Elaborating on the process, Lahiri said the six advisory committees would be in charge of the thematic papers, and would be helped in their assignment by ‘‘hub institutes’’. The hub institutes include the National Council of Applied Economic Research (NCAER), National Institute of Public Finance and Policy (NIPFP), TERI, IIM (Ahmedabad) and ICRIER.The ministry doesn’t seem unduly worried over insulating the policy intiatives from the politics of reforms. Lahiri says their intention is to form broad policy parameters and that the researchers may have their own political beliefs which would be reflected ‘‘in a rational manner’’.
