Governance and Corruption

Good governance is essential for development (see box 2.6). In Sikkim many of the elements that contribute to good governance have been eroded over the years. In particular, the large-scale recruitment of under-qualified persons to government posts has had an adverse impact on many areas of the economy and particularly on governance standards in the state. In per capita terms, Sikkim has the highest public sector employment in the country: There are over 11,000 employees on the muster roll of various government offices.

Misgovernance and corruption lower state revenues and increase the fragility of the financial system. Government expenditure increases as commissions to various people have to be accommodated; its composition also tends to shift from spending on operations and maintenance to spending on new equipment.

Governance in Sikkim in this century has to set a standard for other states to emulate. As the government increasingly moves out of many of its traditional spheres, it can begin a serious downsizing process, which will allow it to focus on better delivery of truly public services. Since the government has a vital role to play in fostering development, one way to rein in corruption is to ensure the broad-based participation of people in the process: development should involve all government branches, civil society and the business community and ensure their commitment to an anti-corruption agenda. Plan schemes should be reviewed and prioritised, as over the years several Plans have been continued and expanded incrementally. All the schemes should be thoroughly reviewed and prioritised; new schemes should be made contingent on the availability of resources.