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Indian Economic Policy

Notes 2. Rules and Regulations : In this authority, rules must be followed meticulously. Functions are
clearly spelled out in rules.
3. Hierarchy : Here, the lower offices are under the control of the higher ones.
4. Contract : Bureaucracy has officials appointed through contract on the basis of professional
qualifications.
5. Control : Checks, unified control and disciplinary system is the hallmark.
6. Division of Work Leading to Specialisation : The work of the organisation is fixed which
leads to specialisation.
7. Efficiency : According to Weber, the decisive reason for the advance of bureaucratic organisation
has always been its purely technical superiority and efficiency over any other form of
organisation.
8. Neutrality : It is a political and neutral.
Now, we can discuss as to how this bureaucracy runs the administration to put the economic policies
into action to deliver the benefits of economic policy.
29.2 Delivery Mechanism in Implementation of Economic Policies

The understanding of Public Administration would help in knowing how this bureaucracy runs the
administration to put the economic policies into action to deliver the benefits of economic policy.
Public Administration : Administration may be defined as an activity which demands correct analysis
and accurate orientation to achieve the objectives of the organisations and meet the needs of the
people in an economic and efficient manner. Woodrow Wilson defined Public administration as a
detailed and systematic application of law. According to him, every application of law is an act of
administration. Similarly, L.D. White views Public administration as consisting of all those operations
having for their purpose the fulfillment or enforcement of public policy. Pfiffner defines Public
administration as a system that consists of doing the work of the Government, whether it be running
an X-ray machine in a health laboratory or coining money in the mint. This means public administration
is concerned with the implementation of public policy, as laid down by the competent authority
economically and efficiently for the benefit of the people and the country.
Development Administration : Development administration was introduced to manage new activities
such as economic policies. This was necessary because the Government has been entrusted to manage
economic and business activities and hence it was found difficult to manage the economic policy
with the traditional administration as it has the experience of mostly dealing with law and order and
justice. It may be noted that development is a process of growth in the direction of modernity,
particularly towards nation-building and socio-economic progress. In the words of K.S. Dadzie, the
final aim of development must be the constant increase of the well-being of the entire population on
the basis of its full participation in the process of development and a fair distribution of the benefits
there from. Therefore, the main aim of development should be to enrich the quality of life. In this
way, development Administration was introduced to ensure implementation of economic policies
sincerely.
Essentials of Development Administration : To be effective and efficient Development administration
should have the following :
1. Administrative Innovation : It is said that administrative innovation is the sine quo non for
development administration. According to Susanne MacGregor, there is need for ‘Life Cycle’ of
innovation to improve services which involves the following : conception, adoption, early trial
and error, mature implementation and routinisation, dominance, and replacement by newer
forms of things.
2. People’s Participation : The potential energy of the people should be utilised through their
involvement.
3. Definite Policies Programmes and Projects : These should reflect the needs of the people.
4. Monitoring : Monitoring and evaluation are needed to locate problems and inject improvements.

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