Lateral entry avoids reservation by single-post classification.

LATERAL ENTRY

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Picture Courtesy: https://indianexpress.com/article/explained/upsc-lateral-entry-bureaucracy-reservations-9520211/

Context: The Union Public Service Commission (UPSC) has launched a fresh round of lateral recruitments from the private sector and other sources into senior posts in the bureaucracy.

Union Public Service Commission (UPSC)

●The UPSC is a central recruiting agency established by the Indian Constitution. Its foundation lies in Articles 315 to 323 of the Constitution, which outline its structure, powers, and functions.

●It operates independently of the government to ensure fair and transparent recruitment to the All-India Services, Central Services, and public services of Union Territories.

● Chairman and Members: The President appoints the Chairman and members, with no specific number mandated by the Constitution. However, there are nine to eleven members, including the Chairman.

●Qualifications: While no specific qualifications are required for the members, it is preferred that at least half of them have held high office under either the Government of India or a state government for at least ten years.

●Term and Removal: The Chairman and members serve a term of six years or until they turn 65, whichever comes first.

They can resign anytime or be removed by the President under specific conditions, including insolvency, paid employment outside their duties, or unfitness due to health.
Misbehavior, including conflicts of interest, can also be grounds for removal after an inquiry by the Supreme Court.

●Financial Independence: Their salaries and expenses are charged on the Consolidated Fund of India, ensuring they are not subject to parliamentary votes.

●Post-Office Employment: The Chairman cannot be re-employed in any government role after retirement, while members can only be appointed as Chairpersons of other public service commissions.

●Powers and Functions (Article 320-321)

Recruitment and Examination: The UPSC conducts examinations for the recruitment of candidates to various posts in the civil services, including the Indian Administrative Service (IAS), Indian Foreign Service (IFS), Indian Police Service (IPS), and other central services.
Advisory Role: The Commission advises the President of India on matters related to the recruitment and promotion of civil servants, including issues related to the conduct of examinations and the application of service rules.

About Lateral Entry

Lateral entry refers to the recruitment of professionals from outside the Indian Administrative Service (IAS) and other All-India Services into mid-to-senior level positions in the government.
Instead of solely relying on career bureaucrats who enter through competitive exams and promotions, this policy opens up opportunities for individuals from various sectors, including private industry, academia, and public sector enterprises.
Positions available under this policy include Joint Secretary, Director, and Deputy Secretary.

Lateral recruitment is a process where professionals from outside the traditional civil services are appointed to senior positions within the government. This method aims to infuse new talent and expertise into the bureaucracy, supplementing the existing pool of career bureaucrats.

Why Lateral Entry?

The central government's rationale behind this policy includes:
- - Infusing New Expertise: By recruiting professionals with domain-specific knowledge, the government aims to benefit from their specialized skills.
  - Increasing Efficiency: Lateral entrants are expected to bring innovative approaches and fresh perspectives to governance and administration.
  - Filling Skill Gaps: Certain positions may require expertise that is not always present within the existing bureaucratic structure.

Case Studies

●Lateral entry is not entirely new to India. Notable figures like Dr Manmohan Singh and Montek Singh Ahluwalia were brought into government roles from outside the traditional civil services.

Dr Singh's journey from an economist to India's Prime Minister and Montek Ahluwalia's rise to the Deputy Chairman of the Planning Commission exemplifies the potential success of such entries.
These examples show that experts from outside the conventional bureaucratic system can contribute significantly to governance.

●Reserve Bank of India (RBI): The RBI has successfully included lateral entrants into its structure, benefiting from their specialized financial expertise.

●Planning Commission: The Planning Commission, before its transformation into NITI Aayog, also included experts from various fields, which contributed to its effectiveness in planning and policy formulation.

●NITI Aayog: NITI Aayog, the policy think tank of the Indian government, has successfully utilized lateral entry. Professionals from diverse fields have been brought in to work on key projects, contributing to more effective policy-making and implementation.

●International Examples: Countries like the United Kingdom and Singapore have successfully used lateral entry to bring in expertise. For example, Singapore's Public Service Division hires individuals from various sectors to fill high-level positions, ensuring that their governance is informed by diverse perspectives and skills.

Key Details of the Current Recruitment Round

Scope and Eligibility
- - Open Call: The government invites applications from “talented and motivated Indian nationals” to apply for senior positions such as Joint Secretary, Director, and Deputy Secretary in 24 Union government ministries.
  - Contract v/s Deputation: Applicants from the private sector will be appointed on a contract basis, while those from public sector undertakings and State/UT governments will be appointed on deputation. Directly recruited Central government employees are not eligible for these positions.
  - Experience and Age Requirements:
    - Joint Secretary: Minimum of 15 years of relevant experience; age between 40 and 55.
    - Director: Age between 35 and 45.
    - Deputy Secretary: Age between 32 and 40.
    - Tenure: The initial appointment will be for a period of three years, with the possibility of extension up to five years based on performance.

Lateral recruitment for these positions was first introduced in 2018. As of July 24, 2024, a total of 63 appointments have been made through this process, with 35 of these positions filled by candidates from the private sector. Currently, 57 of these lateral entrants are serving in various ministries and departments.

Arguments in Favor of Lateral Entry

Enhanced Policy Making
- - Policy-making is increasingly complex. Having professionals with specialized knowledge, such as experts in economics, technology, or public health, can provide valuable insights and lead to more effective policies.
  - For example, a cybersecurity expert might be better equipped to handle digital security challenges than a traditional bureaucrat.
Increased Efficiency and Competition
- - In the traditional IAS career path, progression can become routine and predictable.
  - Lateral entrants, who come from diverse backgrounds, can introduce new ideas and approaches, developing a more competitive and dynamic environment. This could potentially lead to better governance outcomes by challenging the status quo.
Addressing Officer Shortages
- - India faces a shortage of IAS officers, with estimates suggesting a shortfall of about 1,500 officers.

The Baswan Committee (2016) highlighted this issue and supported lateral entry as a solution.

By bringing in qualified individuals from other sectors, the government can address this staffing gap more effectively.

Age and Experience Discrepancies:
- - IAS officers are often recruited at a young age, which can limit their practical experience.
  - Lateral entrants, who have more years of professional experience, can bring a higher level of maturity and judgment to their roles.
Historical Success
- - Proven Track Record: Lateral entry has been successful in other contexts, such as the Reserve Bank of India (RBI) and the Planning Commission (now NITI Aayog). These institutions have benefited from the infusion of external expertise, suggesting that similar benefits could be realized in government roles.
Modernizing the Bureaucracy
- - Running a 21st-century economy requires a modern approach to governance.
  - Lateral entry helps to introduce fresh perspectives and specialized skills, essential for navigating today's complex challenges. This approach differs from outdated bureaucratic practices, promoting more innovative solutions.

The idea of lateral entry has been supported by several committees

●Surinder Nath Committee (2003): This committee highlighted the need for lateral entry to bring fresh talent and specialized expertise into the government. It was recognized as a way to address gaps in skills and knowledge within the traditional civil service.

●Hota Committee (2004): Building on the earlier recommendations, this committee supported lateral entry to enhance government efficiency and effectiveness. It advocated for incorporating specialists who could contribute to better governance and policy-making.

●Second Administrative Reforms Commission (2008): This commission strongly endorsed the concept, stressing that new ideas and skills from outside the traditional civil services could significantly benefit the government’s functioning.

Arguments Against Lateral Entry

Threat to Neutrality and Impartiality
- - Critics argue that lateral entry might compromise the neutrality of the civil service. There are fears that these positions could be filled by individuals with political or corporate connections, potentially compromising the impartiality of the bureaucracy.
Impact on Morale
- - Traditional bureaucrats, who have invested years in their careers, may feel demoralized if they see outsiders being recruited into senior positions. This could affect the overall morale and effectiveness of the existing civil service.
Constitutional Concerns
- - The Indian Constitution mandates that the UPSC is responsible for conducting exams and recruitment for civil service positions. By hiring directly from outside the system, critics argue that this policy compromises the UPSC’s authority and the established recruitment process.
Lack of Ground-Level Experience
- - Civil servants accumulate extensive experience at the grassroots level, which helps them understand and implement policies effectively. Lateral entrants might lack this crucial on-ground experience, potentially leading to less practical and effective policy-making.
Historical Failures
- - Previous attempts to bring private sector managers into public enterprises, such as Air India and Indian Airlines, have often been problematic. These experiences raise concerns about whether lateral entry will succeed in improving governance or merely replicate past failures.
Nepotism and Corruption Risks
- - There is a risk that lateral entry could lead to nepotism and corruption, as powerful corporate groups might place their allies in key government positions. This could further erode public trust in the bureaucracy.
Impact on Reservation Policies
- - Critics argue that lateral entry could compromise the reservation system designed to ensure representation for Scheduled Castes (SCs), Scheduled Tribes (STs), Other Backward Classes (OBCs), and Economically Weaker Sections (EWS).
  - Many social activists have voiced concerns that these posts could bypass reservation quotas, potentially denying marginalized communities their rightful share in governance.

Criticisms and Concerns

The lateral entry policy has faced criticism, particularly regarding its lack of reservation for Scheduled Castes (SC), Scheduled Tribes (ST), and Other Backward Classes (OBC). Key criticisms include:

●No Reservation Quotas: Unlike other government recruitment processes, lateral entry positions do not have reserved quotas for SC, ST, and OBC candidates. This omission is seen by critics as discriminatory and contrary to the principles of affirmative action.

●Potential Impact on Diversity: Critics argue that the lack of reservations may reduce diversity in high-level government positions and compromise efforts to address historical inequalities.

●Perception of Bias: Some opponents believe that the policy might be used to favour individuals with connections or specific ideologies, bypassing the merit-based approach of traditional recruitment.

Impact on Reserved Posts: The Government's Defense

The government justifies the lack of reservation in lateral entry positions by arguing that these roles are similar to "deputation" posts, which traditionally do not follow reservation policies.
The government assures that there is no reduction in the reserved posts due to lateral recruitment.
Single Post in Specific Domains: Each position filled through lateral entry is a single post in a specialized area. This means these roles are additional to the existing posts rather than replacements.
Deputation Basis: Candidates appointed through lateral entry from State Governments, Union Territories, or Public Sector Undertakings retain their charge in their parent departments. They are essentially on a temporary assignment and do not alter the existing reservation framework in their parent organizations.
No Centralized Data on Categories: The government has not maintained centralized data on the categories of persons appointed through lateral entry, but the system is designed to avoid affecting reservation policies.

Reservation System in India

●The reservation system in India is a policy aimed at providing equitable opportunities to historically marginalized communities by reserving a certain percentage of seats in public employment and educational institutions.

●This affirmative action seeks to address social and economic disparities that have affected Scheduled Castes (SCs), Scheduled Tribes (STs), Other Backward Classes (OBCs), and socially and economically backward communities.

●In India, the reservation system covers various areas, including:

Public Employment: A significant percentage of government job vacancies are reserved for SCs, STs, OBCs, and EWS. This is intended to ensure that these groups have a fair chance to secure government positions.
Educational Institutions: Reservation policies apply to admissions in higher education institutions such as universities and colleges. Seats are reserved in both undergraduate and postgraduate programs for SCs, STs, OBCs, and EWS.
Political Representation: There is a provision for reserved constituencies in the Indian Parliament and State Legislatures for SCs and STs. This ensures their representation in the legislative process.

●The reservation system is structured as follows:

Scheduled Castes (SCs): 15% of seats are reserved for SCs in public employment and educational institutions.
Scheduled Tribes (STs): 7.5% of seats are reserved for STs.
Other Backward Classes (OBCs): 27% of seats are reserved for OBCs.
Economically Weaker Sections (EWS): An additional 10% of seats are reserved for EWS in both public jobs and educational institutions.

Way Forward

Develop Clear Guidelines: Establish detailed guidelines for the recruitment and integration of lateral entrants. These guidelines should outline the criteria for selection, the roles and responsibilities of lateral entrants, and the mechanisms for performance evaluation.
Implement Robust Integration Programs: Design comprehensive orientation programs to help lateral entrants acclimate to the public sector environment. These programs should include training on government processes, public sector ethics, and policy implementation.
Monitor and Evaluate Performance: Set up effective monitoring and evaluation systems to assess the performance of lateral entrants. Regular feedback and performance reviews will help ensure that they are contributing positively to governance and making necessary adjustments.
Ensure Reservation Compliance: Develop strategies to ensure that the lateral entry system respects and integrates the reservation policies. This could involve setting aside a certain percentage of lateral entry positions for candidates from reserved categories or ensuring that these categories are adequately represented in the selection process.
Promote Long-Term Engagement: Encourage lateral entrants to view their roles as long-term career opportunities. Providing career development support and opportunities for advancement within the public sector can help in retaining talent and ensuring their full integration into the system.

Ensuring Transparency and Effectiveness for lateral entry
Selection Process and Fairness	●Transparency: The recruitment process for lateral entry must be transparent to build trust and confidence in the system. This involves clear communication about the criteria, process, and rationale behind appointments. An impartial body like the UPSC, which has experience in managing recruitment for government positions, should oversee this process to ensure that selections are based on merit and suitability rather than political influence. ●Impartial monitoring: To avoid perceptions of bias or favouritism, the selection process should be managed by an independent committee with diverse representation. This committee would be responsible for ensuring that candidates are evaluated based on their skills, experience, and potential to contribute to public administration.
Long-Term Commitment	●Career Perspective: For lateral entry to be effective, entrants should view their roles as long-term career options rather than temporary assignments. A longer tenure allows lateral entrants to fully understand the intricacies of government work, contribute meaningfully to policy-making, and integrate better into the bureaucratic system. This approach also aids in retaining talent and ensures continuity in leadership and expertise. ●Integration and Growth: By committing to a longer-term role, lateral entrants can develop a deeper understanding of the public sector’s unique challenges and opportunities. This prolonged engagement helps in aligning their specialized skills with the goals and values of public administration.
Pilot Programs and Expansion	●Testing the Waters: Initiating lateral entry with a pilot phase allows the government to test and refine the system before broader implementation. This approach helps identify potential issues and make necessary adjustments. The current limited number of positions provides a controlled environment to evaluate the effectiveness of the system. ●Broader Implementation: Based on the results of the pilot phase, the initiative can be expanded to include more ministries and roles. This broader application can introduce diverse expertise and perspectives into various areas of governance, enhancing overall effectiveness.
Addressing Value System Differences	●Private v/s Public Sector Values: One of the fundamental differences between the private sector and government roles is their underlying value systems. While the private sector focuses on profitability and efficiency, government work prioritizes public welfare and equitable service delivery. New entrants from the private sector must navigate this transition carefully, aligning their expertise with the values and objectives of public administration. ●Value Alignment: To bridge this gap, lateral entrants should undergo orientation programs that emphasize the principles and goals of public administration. Understanding the mission of public service and how it differs from private sector objectives is crucial for successful integration.

Conclusion

Lateral entry into public administration offers a valuable opportunity to bring specialized skills and fresh perspectives into the government. By addressing concerns related to transparency, fairness, integration, and alignment with public sector values, the system can be refined to enhance its effectiveness. Careful planning, clear guidelines, and robust monitoring will ensure that lateral entry contributes positively to governance and aligns with the broader goals of public administration.

Source:

Indian Express

Wikipedia

The Hindu

New Indian Express

Business Standard

PRACTICE QUESTION

Q. Evaluate the arguments in favour of lateral entry into the Indian bureaucracy. How does introducing professionals from outside the traditional civil services contribute to enhancing public administration and what specific expertise might they bring that could address current shortcomings in government operations?