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Public Administration in the 21st Century: A Global South Perspective

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DOI: 10.4324/9780367140106

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PUBLIC ADMINISTRATION IN
THE 21ST CENTURY

Public administration has experienced a fundamental rethinking of its basic objectives,

concepts and theories during the 21st century.
This book examines transformations happening in global societies, the economy and in
politics, to trace the trajectory of public administration as an academic discipline as well as being
a focus of social science research. It presents a reassessment of governance in heterogeneous
developing countries that goes beyond the traditional Weberian bureaucratic model, toward
new models of organization and management, informed by their legal, constitutional, economic
and political needs, aspirations and ground realities. This is especially important in relation to the
marginalized sections of society that primarily rely on citizen entitlements through public service
delivery systems. The author looks at widening the range and scope of public administrative
agencies with the gradual cooperation of multiple actors, such as the civil society, people at large
and even the private sector, in a partnering role. The author revisits the discipline to tackle
intellectual dilemmas that current governance theories and practices are confronting, or will have
to confront in future administrative situations.
There will be key discussions on mandates and challenges for the state regarding the rising
South; this book will be indispensable to scholars and researchers of politics, especially
governance and public policy, sociology and development studies. It will also be of interest
to bureaucrats, NGOs and government officials.

Rumki Basu is Professor of Public Administration and former Head of the Department of
Political Science at Jamia Millia Islamia, New Delhi, India. She was also Director of Sarojini
Naidu Centre for Women’s Studies, Jamia Millia Islamia. She has published 12 books and 40
journal articles on issues of public policy and governance, international organization and the
political economy of development in India. She has presented papers at the World Congress of
Political Science in Berlin (1994), Seoul (1997), Santiago (2009), Madrid (2012) and Poznan
(2016), in addition to participating in international workshops. She has received the Indian
Council of Social Science Research Teacher Fellowship Award and the Bharat Jyoti Award
(2013) from the India International Friendship Society. Basu’s prominent works include
Economic Liberalization and Poverty Alleviation: Social Sector Expenditures and Centre–State Relations
(2000); Public Administration: Concepts and Theories (2007); Globalization and the Changing Role of
the State (edited, 2008); Governance and Human Capital: The 21st Century Agenda (co-edited,
2011); Democracy and Good Governance: Reinventing the Public Service Delivery System in India (co-
edited, 2014); Public Administration in India: Mandates, Performance and Future Perspectives (2015)
and Governance in South Asia (co-edited, 2016).
This page intentionally left blank
PUBLIC
ADMINISTRATION IN
THE 21ST CENTURY
A Global South Perspective

Rumki Basu
First published 2019
by Routledge
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and by Routledge
52 Vanderbilt Avenue, New York, NY 10017
Routledge is an imprint of the Taylor & Francis Group, an Informa business
© 2019 Rumki Basu
The right of Rumki Basu to be identified as author of this work has been
asserted by her in accordance with sections 77 and 78 of the Copyright,
Designs and Patents Act 1988.
All rights reserved. No part of this book may be reprinted or reproduced
or utilised in any form or by any electronic, mechanical, or other means,
now known or hereafter invented, including photocopying and
recording, or in any information storage or retrieval system, without
permission in writing from the publishers.
Trademark notice: Product or corporate names may be trademarks or
registered trademarks, and are used only for identification and explanation
without intent to infringe.
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging-in-Publication Data
A catalog record has been requested for this book

ISBN: 978-1-138-05621-3 (hbk)

ISBN: 978-0-367-14009-0 (pbk)
ISBN: 978-0-367-14010-6 (ebk)

Typeset in Bembo
by Swales & Willis Ltd, Exeter, Devon, UK
To Sankar, in celebration of our forty-year-old friendship
This page intentionally left blank
CONTENTS

Preface viii
Acknowledgements xii

1 The changing world of the 21st century: building new

administrative capacities 1

2 The discipline of public administration today 14

3 The public and its policies 30

4 Democracy, the state and the citizen 52

5 Good governance to governing development today:

comparative research studies 65

6 Public administration in the 21st century: dilemmas

and challenges 82

7 Summing up 100

Index 107
PREFACE

The transition from an era of “government” to “governance” has brought

public administration to the forefront of seminal changes in the operational
context of developed and developing countries in the 21st century. Public
administration, as an academic discipline, is changing rapidly due to the impact
of globalization, the changing ideologies of government and the resultant
changes in public agendas and discourses across the globe. Since World War
II, the role and function of governments had witnessed an unprecedented
increase, in both developed and developing societies; this being largely due to
the fact that “development” was considered a state (public sector) activity.
Since the 1980s, the world has seen a reverse swing; with the term globaliza-
tion being created for the paradigmatic shift of emphasis towards a market
driven, private sector led development model, with a basic philosophy to roll
back the “administrative” state by reducing the size of the government and by
streamlining public expenditure.
Changes in public administration in the 20th century was, in large part, a
reflection of the changing nature, function and ideology of governments in
different parts of the globe. Practicing traditional public administration came
under persistent attack from neoliberal economists: the “public choice” school
who have spearheaded philosophical arguments for reducing the size and spend-
ing of the public sector.
In this book, it will be argued that today’s agenda for public administration, as
reflected by the New Public Management (N.P.M.) paradigm, may have to be
reversed or substantially revised in accordance with the needs, aspirations, ground
realities and field practices of developing countries, who want the state to remain
proactive and interventionist on behalf of the marginalized, whilst delivering “devel-
opment” promises, implementing public policies and transferring citizen entitlements
through effective public service delivery systems. This is the unfinished agenda
 Preface ix

of public administration in the South, which has to be brought to fruition in the 21st
century.
The rise of the South is one of the concurring narratives (parallel to the grand
narrative of globalization) which will dominate world politics and economies in
the 21st century. The importance of China and India in this context should be
clearly understood; as the 21st century is often referred to as the “Asian Century”.
Today, China and India are strong economic powers, both having withstood the
global economic recession since 2008. Together they account for one-third of the
world population. In the 20th century, global politics was viewed from a North-
centric perspective. New developments in the discipline and practice of public
administration will be influenced by the rise of the South in the 21st century.
Waves of democratization have swept the globe, transforming state-citizen
relations and the way administration functions in the South. Globalization
induced changes in the “what” and “how” of public administration, triggering
administrative reforms which have swept through the public sector over the last
two decades in several countries. N.P.M. introduced the rationale of debureau-
cratization and fiscal prudence in public expenditure. The logic behind it was
accepted by ex-socialist states and the developing world, presuming that “wasteful
and incompetent” bureaucracies had led to the failure of the “socialist” experi-
ment and “development administration” in the Third World in the first place.
However, N.P.M. reforms could only help the South marginally, and not in any
fundamental way.
The developed “South” introduced development through proactive state
intervention in key sectors of the economy, human development and state
sponsored innovations in indigenous technology—an ideal model for others to
follow. “Developmental” states are unlikely to wither away anywhere in the
South, as the concept of “good governance” has been universally accepted.
Although, development is not a rigid concept. Governing development is an
ongoing endeavour in any country. Both developed and developing countries
need to administer development models, plans and strategies so as to successfully
deliver public goods and services to the people. When implementing all of these,
the “state-market divide” will have to be clearly demarcated by political mandates
in all countries.
What does it mean to be an effective public administrator in the 21st century?
Public governance is the art of managing collective goals of society through joint
endeavours in the public sphere: government bureaucracies, private sector admin-
istrations and voluntary sector bodies, involved in the development of the
“commons”, have to work together to provide essential public services to
citizens.
If public administrators have to work in evolving democratic societies, in
direct competition with the private sector and under changing ideological
regimes, they need to radically rethink how they should govern in the modern
age. New modes and procedures have to be learnt; there will be less paperwork,
but digitalized records have to be stored because people (armed with Right to
x Preface

Information laws) will interfere or intrude whenever they want to “know”

more. Previously, the “public” were never really a part of the policy making,
implementation or evaluation process, due to bureaucratic “immunity” and laws
of secrecy. Times have changed, their work will be more open to scrutiny and
social audit. This is a healthy change in the context of Third World bureau-
cracies, who were notoriously non-transparent, unanswerable and non-accoun-
table, in their work or in their behaviour towards the public. Aspiring public
administrators must understand that they have to co-govern, not only with
other stakeholders, whether they are private sector employees in a private-
public partnered project or the beneficiary public target group in a welfare
administration program.
There are numerous textbooks which look at public administration; this
book invites the reader to explore the tasks and mandates of public governance
in the 21st century, whilst keeping in mind the mandates in the developing
world. Public bureaucracies do not need to shrink in size, because from a
“development administration” to a “governing milieu”, through a consensually
agreed Minimum Agenda of Good Governance, public administration will have
to be at a commanding level. This book makes a strong argument for revisiting,
rethinking, reinventing and eventually refounding, public administration from a
South-centric perspective. It is my belief that the principal dilemmas and
challenges of public administration lie in developing countries–where the
philosophy of “doing much more with much less” (N.P.M.) cannot be ratio-
nalized. Governing development will require additional investments (public and
private), and the public will require more accountability and more openness
with the diversification of bureaucratic mandates. Governments cannot be run
like business; the privatization of public services does not necessarily serve the
“public interest”. Not all civil servants are “corrupt” or “incompetent”; bureau-
cratic failures have a much deeper structural meaning in the context of devel-
oping countries.
Drawing on my own experiences in India (the world’s largest democracy), I
have carefully selected the major themes of this book, all the while keeping in
mind the Asian, African or Latin American reader who will empathize with the
effort it takes towards achieving democratization and bringing in a new bureau-
cratic culture of “legality, rationality, citizen centricity, public accountability and
responsiveness” in administration. Readers in the developed world, who have
acquired a basic understanding of the major themes and issues, are more likely to
delve deeper into the dilemmas and challenges involved, and thus become more
engaged in informed debates about the developing world. This is not a conven-
tional textbook about public administration, but an introductory reading which
begins, and seeks, to answer the following questions:

• Is there a need to re-evaluate the role and mandates of government and

public administration in the context of the emerging contradictions of
globalization and the rise of the South?
 Preface xi

• How, and for whom, does public administration work in heterogeneous

developing societies?
• What are the new mandates and challenges in the 21st century, especially in
the context of the developing world?

At the advent of the 20th century, emphasis was placed on industrial productivity,
organizational efficiency and strong control mechanisms for the strengthening of the
structural and procedural components of public administration. In the 21st century,
focus has shifted toward human development and broadening people’s choices: these
choices can be infinite and can change over time. We now live in a “knowledge”
economy where “information” can, and will, change societies. E-governance is an
invaluable tool of transparent, accountable citizen centric administration. The
“public” are now truly at the centre of “public administration” like never before.
Public administration has historically reflected the changing socioeconomic
and political concerns of contemporaneous times and its impact on the functions
of government. At present, it faces contradictory ideological and functional
pressures which are pulling it towards an expansionist agenda (the agenda from
the South) and a reductionist agenda (North-centric agenda). The onus rests on
the public administration of every state to re-establish its raison d’être in
accordance with particular legal, constitutional, economic and political needs of
every nation, from time to time.
ACKNOWLEDGEMENTS

Whilst writing this book I have greatly benefited from the works of eminent
scholars of public administration. I owe a deep sense of gratitude to all of them. I
have acknowledged my intellectual sources and references at the end of each
chapter, not only to acknowledge my indebtedness but to also facilitate further
reading. Regarding facts and data, as far as possible, official documents which are
easily available in the public domain have been relied upon. Finally, I must
confess to have borrowed from my earlier publications (books, book chapters and
journal articles): there are quite a few to be listed here. Special efforts have been
made to make this book student-friendly and easy to comprehend. I am grateful
to Aakash Chakrabarty and Rimina Mohapatra at Routledge (India) for their
encouragement, assistance and patience in getting this book published, despite my
delays and difficulties in meeting deadlines. I would like to express my gratitude
to my daughter Devanjali and my husband Sankar Basu, for their encouragement
and valuable support at all times. I apologize for all errors inadvertently made.
1
THE CHANGING WORLD OF
THE 21ST CENTURY
Building new administrative capacities

As a scholar of public administration, I think it is time to re-evaluate the functions

of government in diverse political settings from a public administration perspec-
tive in the rapidly globalizing and changing world of the 21st century. There are
193 sovereign nations who are members of the United Nations, two-thirds of
them belong to the developing world, while the rest are either underdeveloped
or are part of the developed world.1
What does it mean to be a public administrator in this global age? There are a
few mandatory functions every public administrator will have to perform irre-
spective of the ideology of the political regime, e.g., collection of taxes, main-
tenance of law and order, provision of public goods and utilities, such as roads
and public safety, banking and currency, water and power. These functions are
known as system maintenance functions. The rest are referred to as context-
specific because they vary from government to government across the ideological
spectrum. Theories of public administration offer clues to the diversified and
changing tasks of public administrators. Public administrators help shape and
implement public policies framed by different governments in different state
locales.
What is the environment in which policies are being made in today’s world?
There are images of the emergent new world order in popular discourse, which
have, for example, announced the arrival of a borderless world, the rise of the
South, networked national governance and the emergence of an Asian century.
Such images have been created by the seminal shifts and deep transformations that
have occurred in global politics since the closing decades of the last century—the
end of the Cold war, advancement of globalization and the slow but persistent
rise of the Global South (developing countries) in world affairs. Recurring
regional conflicts, unexpected alignments among states, cross-border migrations
and changing power equations, have surfaced at such a pace that fresh thinking
2 The changing world of the 21st century

regarding the impact of state and non-state actors in relation to political admin-
istrative regimes have become an absolute imperative. Turbulence in the Middle
East, the short lived “Arab Spring” and its “democratizing” effect on the entire
region, the rise of new terror axes in different parts of the world, the “national
interest” compulsions of the U.S.A., Russia and other smaller regional powers to
intervene in troubled waters, have led to serious global ramifications. The gross
violation of human rights in Syria and Iraq have triggered unprecedented situa-
tions in intrastate conflicts and interstate wars. Middle East wars between 2014–
17 have left more people displaced and homeless than any period of 20th century
history.2 Even after World War II the “refugee” crisis did not assume such serious
proportions. These global events did have serious repercussions for the domestic
politics and governance capacities of states hit by civil war or interstate conflicts.
Laws and constitutions work during “normal” periods of civil governance; in
conflict-hit states these norms do not work and citizen rights are never fully
protected. For citizens living in conflict zones or during times of civil war (as
millions of people did and still do), violations, curtailment or suspension of rights
is the norm for both citizens and immigrant populations. The U.N.’s Interna-
tional Migration Report (2017) estimates that there were 258 million migrants in
2017. Between 1990 and 2017, the immigrant population has increased by over
100 million. We now live in a truly “globalized” world where more and more
people are leaving their country of birth for places which have better opportu-
nities and a greater chance of access to higher standards of living. Contrary to
popular belief, that the West hosts the largest immigrant (legal or illegal) popula-
tion, it is developing countries that bear the burden of immigrants worldwide.
Although the U.S. is still home to the greatest number of immigrants in the
world, in 2017, India was the largest source of immigrant populations. In the 21st
century, every state will have to absorb and provide for both citizens and non-
citizens in equal measure, stretching their governance capacities to the limit.
Throughout the greater part of the 20th century, states and public institutions did
not deliver the same package of citizen entitlements, which is universally
recognized today as a Minimum Agenda of good governance: protection of
social, economic and political rights that are required for human beings to flourish
and develop their capabilities. In the 21st century, can we expect less violence
and conflict to lead to a greater protection of human rights for all citizens through
the agencies of the state and instruments of public governance?3 Let’s hope we
can. Although, looking at the world today, it is perhaps not difficult to guess that
inequality will continue to remain the most intractable public policy challenge in
all states, even in the 21st century.
Today, global politics tilts towards multipolarity, the gradual lessening of
violence, “regionalization” of world politics with state and non-state actors,
both of which influence internal policies of states. Religious fundamentalism
raises its ugly head every now and then, terrorism continues, and although
“democratization” is the current buzzword, it will take decades before the world
becomes fully democratic. Across the world, experts lament that democracy is
 The changing world of the 21st century 3

eroding, backsliding, withering or buckling under authoritarian pressures. If the

21st century is to be dominated by China and India, there are a number of good
reasons why this may happen. China and India remain the world’s two most
populous countries, home to one third of mankind. The recent upsurge in the
growth rates of these two countries, apparently bucking the trend during the
financial crisis that spread from the U.S.A. in 2007 to most of the developed and
developing world, attracted the attention of scholars to the developmental
trajectories of Asia’s two largest powers. Both are currently undergoing capitalist
transformations from socialist/mixed economy models of growth. China is a
“hard” state, retaining its strong authoritarian one party regime with above
average policy outcomes in most sectors; whereas India’s democratic state
previously under-performed in most developmental sectors, but over the last
two decades it has begun to do much better.
China has many firsts: it is the world’s most populated nuclear state with
the world’s largest armed personnel and police force. China holds a remarkable
record of growth: it is the only country which grew at a rate of 10% for 30
years, enabling the largest number of people to exit poverty (500 million)
between the years 2002–12. It has the second largest economy, with the
highest foreign exchange reserves, and is the second highest remittance receiv-
ing country in the world. Furthermore, it has one of the highest savings and
investment rates in the world. It is also number one in the production of gold
and interestingly, despite its professed ideological stance (socialistic), houses the
highest number of billionaires in any city (Beijing) in the world (Bagchi and
D’Costa 2012).

The rise of the South

The ascendance of the South, which began in the latter half of the 20th century,
has been unprecedented in its pace and outcomes. Never before, in recorded
history, have the living standards of the average masses changed so rapidly in such
a compressed time span. In England, where the Industrial Revolution started, it
took 150 years to double its per capita output, while in the United States, which
industrialized much later, needed about half a century. Both countries had a
population under 10 million when they began to industrialize. In contrast, the
current economic resurgence in China and India started with about a billion
people in each country. Doubling their output per capita in less than two decades
is an economic phenomenon that has made a developmental impact, no less
radical than the Industrial Revolution in the 19th century!
Most developing countries have raised their living standards in the last quarter
century, but some have done particularly well—in what can be called the “rise of
the South”.4 Some of the largest countries have taken impressive strides, notably
China, Brazil, India, Indonesia and South Africa. But there have also been
seminal changes in smaller economies, such as Bangladesh, Chile, Ghana, Maur-
itius and Tunisia. By 2050, China, Brazil and India cumulatively, are expected to
4 The changing world of the 21st century

account for 40% of world output in purchasing power parity terms (U.N.D.P.
2013).
Over the last two decades, countries from several regions of the world have
been converging towards higher levels of human development, as is evident from
the U.N.D.P. Annual Human Development Index (H.D.I.); a composite measure
of indicators involving three dimensions: life expectancy, educational attainment
and command over the resources needed for a decent living. All groups and
regions around the globe have made notable improvements in relation to H.D.I.
components, with greater progress in countries which are ranked low and
medium in the H.D.I. range. On this basis, it can be surmised that the world is
becoming a better place to live for most people around the globe. However,
national averages often conceal large disparities in living conditions. Disturbing
inequalities remain within, and between, countries of the North and the South;
removing these inequalities will remain the single most difficult challenge of
public governance in the 21st century. Let’s not forget that for centuries inequal-
ity has remained the single most important destabilizing force in society.
The 20th century has witnessed numerous “egalitarian” revolutions, transitions
and changes across several parts of the world. Most of these revolutions, whether
they be socialist, feminist, environmentalist or other kinds of revolutions, furth-
ered the cause, not only of individual rights and liberties, but highlighted issues,
such as sustainable development, equity and gender justice. Also, waves of
democratization swept across the globe from time to time; all of these have
acted as great “levelers” and catalysts of progress and equality in the 20th century.
However, they also necessitated the rise of “administrative” or “developmental-
ist” states, to ensure economic development, gender justice, human development
and environmental protection. Politics willed and administration executed, that seemed
to be the pattern of development everywhere. Even today the developed world leads
the way, because their public management systems provide a sufficient and
efficient infrastructure of public goods and services to citizens (invisibly, impec-
cably and imperceptibly), maintaining roads, communication, public safety and
sanitation, primary education and health care, recreational facilities, banks and
currency; with a public service ethos that makes them very different from private
service operators who serve “clients” in the market with an underlying motive to
be profitable.
Southern countries in Asia, Africa and Latin America, through individual or
cumulative efforts, are raising world economic growth, helping each other in
their development efforts, reducing poverty, increasing national income and
persistently trying to promote socioeconomic development by raising living
standards in their own countries. Nonetheless, they still retain the largest percen-
tage of the world’s poor. These countries, in the process of trial and error, have
often demonstrated how indigenously designed policies or “home adopted”
global technologies with a sharp focus on growth and human development, can
bring about the desired turn around in the economy. Each experience is unique
and needs to be studied.
 The changing world of the 21st century 5

A case study
Take Mauritius, a tiny island state on the southern tip of Africa. It has taken giant
strides in economic growth, due to the strength of its institutions (Subramaniam
2001). It stands as a role model, not only for Africa but for the rest of the world,
for what could be achieved without the classic prerequisites of power: substantive
land or mineral resources, population or nuclear capacity. The total land area of
the country is 2040 km. The people are multi-ethnic, multi-religious and multi-
lingual. Its Human Development Index is the highest in Africa. Since indepen-
dence from Britain in 1968, Mauritius has developed from a low income,
agriculture-based economy to a middle income diversified economy, based on
tourism, textiles, sugar and financial services. Mauritius ranks highly in terms of
economic competitiveness; a congenial investment climate, delivering “good
governance” with impeccable democratic credentials. Its economic performance
is nothing short of a miracle, having a gross Domestic Product per capita over
U.S.$16,820, one of the highest in Africa.
A well thought out strategy of nation building and development laid the
foundations for sustainable growth in Mauritius. Its model of democracy relies on
multi-culturalism, redistributive economic policies and strong autonomous insti-
tutions, which are critical when it comes to a country’s growth and stability.
Democracy promoted incremental and changeable strategies for public policy
formation and implementation. Education and health services were fully sub-
sidized to encourage employment and inclusive growth. Mauritius is one of
Africa’s least corrupt countries. High levels of public investment in selected
competitive sectors of the economy yielded rich dividends, which could be
further invested for human development.

At the crossroads
For many observers, the world today stands at the proverbial cross roads: a
resurgent South—most notably countries such as China and India, where there
is steady progress in human development, growth appears to remain sustainable,
prospects for poverty reduction are encouraging—and a North in crisis—where
recurring cut backs on “welfare” expenditure and the absence of steady or
spectacular economic growth poses severe hardship to millions of marginalized,
unemployed, poor and growing immigrant populations, as social welfare states
increasingly give way to Right-wing political ones. There are also common
concerns shared by the North and the South: growing intrastate inequalities,
slow pace of recovery from recessionary trends, reduced rate of poverty reduc-
tion, as well as serious threats to the environment.
The world is becoming more connected; during the early years of the 21st
century, the expansion of international trade led to a turnaround in global
production, which, by 2015, accounted for nearly 60% of global output. Between
1980–2010, developing countries expanded their share of world merchandise
6 The changing world of the 21st century

trade from 25% to 47%: South–South trade increased from less than 8% of world
trade to more than 26% (U.N.D.P. 2013). Paradoxically, despite being hit the
hardest by the Recession, the U.S. remains the largest economy in the world, in
monetary terms, and will remain so for some time. If the U.S.A.’s recovery gets
delayed and Europe is unable to extricate itself from the doldrums it finds itself in,
there will be a large spillover effect on the economies of the developing world.
Transnational challenges, such as moderating the effects of climate change or
averting communicable diseases, require a certain degree of global cooperation.
While the rise of the South is reshaping global power equations in more than one
way, painstakingly achieved gains in human development will be more difficult to
protect if the North–South dialogue fails and difficult decisions are postponed, as
witnessed in global environmental negotiations after 2000.

Lessons from the South

The developmental trajectories of Brazil, China and India, as well as less recognized
success stories such as Bangladesh, Malaysia and Chile, are reshaping ideas of how
to attain steady economic growth with steady human development. However,
some remarkable lessons are also learnt from the diverse and variegated develop-
ment journeys of many Third World “developmental” states (not necessarily
democratic) that have not been imitative of any one model. Their nation building
efforts are dedicated to human development, openness to trade, technological
innovation, besides concerns of equity and sustainability incorporated in people
centric policies and strategies. Common traits include promoting economic growth
by incentivizing certain sectors, training and using competent bureaucracies,
promoting institutions which plan and implement policies amidst all the odds.
The “legitimacy” of these states is mainly dependent on their record in develop-
ment; e.g. China, South Korea, Singapore, Vietnam, Cambodia and Laos.
On the other hand, over a number of decades, democratic countries like India,
Bangladesh, Brazil, South Africa, Chile and Mauritius, have considered pro-poor
patterns of growth as electoral investments. Developmental transformations need
to alter the structure of production and their capacity to create jobs, and the
expansion of opportunities for large sections of people. Democracies have to be
majoritarian and people friendly. They need pragmatic political leadership
wedded to long term development, but have short term gains for the electorate
as well. In “soft” democracies, where the demands of various sectors need to be
balanced, public investments have to be made in both growth and human
development. Since the 1950s, older welfare states, like the Scandinavian democ-
racies, have derived their legitimacy from their welfare policies, state promotion
of industry, institution building and technological research. These advanced
welfare states guaranteed basic public goods and services—food, education,
health and human security to all of its citizens.
In different ways, China and Russia are demonstrating that authoritarianism
may “deliver” a better outcome than democracy. Both countries espouse a model
 The changing world of the 21st century 7

of state capitalism in which the strengths of the market are balanced against a
strong state, which attempts to reduce the inequities associated with unbridled
capitalism. Authoritarian states are usually in a better position, than democratic
states, to take “hard” decisions. Suggesting that global politics may not entirely
reap the democratic peace dividend, due to the continued coexistence of demo-
cratic and authoritarian states, even in the 21st century.
The unexpected turmoil in several Middle Eastern countries and their declining
petroleum economies after the short lived “Arab Spring” (signified by prodemoc-
racy movements), is a reminder that the educated young put a high premium on
meaningful employment and on their right to expect “democracy” from their
respective governments. A considerable amount of turmoil in Tunisia, Egypt and
Syria, was introduced by the urban, educated, Internet-using young, who were
disillusioned by the lack of civil and political rights within their countries.
Not all developing countries are participating fully in the rise of the South.
The pace of change is slower, for instance, in the majority of the 50 least
developed countries in the world, especially those that are landlocked or distant
from world markets. Although, many of them have begun to benefit from South-
South trade, investment, finance and technology transfer. The developmental
take-off of these least developed countries is a significant challenge for the world
community, as much of it involves moderating the uneven effects of development
in many other developing countries.
By 2025, the annual consumption in “emerging” markets is estimated to rise
to $30 trillion. By then the South will account for three-fifths of the 1 billion
households earning more than $20,000 a year (U.N.D.P. 2013). Despite such
expansion, significant pockets of deprivation, which undermine the sustainability
of progress, will still exist, creating a fertile ground for tension and conflict. There
is more intrastate conflict today (e.g. in Africa and Latin America) than inter-state
conflict, which in itself poses huge challenges for domestic governance.

Challenges for domestic governance

Regarding dividends from “good governance”, the track record of African coun-
tries (with few exceptions) has been disappointing. Most African countries have
faced poverty, inequality, poor infrastructure, capital flight, unemployment, civil
war, famine, crime, ethnic conflict and authoritarian political regimes in the last
century. Ill-informed public policies, mismanagement and misuse of scarce
resources, reluctance to enable human or capital environment for development,
corruption and lack of public accountability, have all been due to poor governance
by ruling elites (Sharma 2007). Exceptions to this include Botswana and Mauritius.
One million children in Africa, including Ethiopia, do not have steady access to
food, largely because of El Nino. The weather phenomenon has helped trigger
droughts in many parts of the world, leaving millions hungry in Africa alone.
Recent media attention in Latin America has focused on the recurring economic
crises in several countries. Public anger erupts from time to time, people take to the
8 The changing world of the 21st century

streets and political violence escalates, claiming thousands of lives. Opposition groups
exert pressure on the government through street violence. Faltering economies, a
shortage of the most basic consumer products, high inflation, high levels of corrup-
tion and unemployment, have fuelled riots, lawlessness and crime. Even Brazil, one
of the better governed states, has faced corruption scandals, economic slowdown and
high crime rates in recent years. Reforms meant to put Brazil’s economy on track by
reducing public expenditure have become very unpopular (Bremmer 2018).
It is well documented today, through data based research that inequality is
socially divisive and can have a negative impact on the general wellbeing of
society. There is sufficient comparative data on the effects of all forms of
inequality in different societies, which show how corrosive its effects have been.
New evidence proves that inequality provides the clinching explanation of why,
despite remarkable economic prosperity, some societies remain least integrated
socially; e.g. the U.S.A. has one of the highest homicide rates, the highest
number of teenage pregnancies and the highest rate of imprisonment, something
which is often attributed to the existence of the greatest intra-state income
differences. In contrast, countries like Japan, Sweden and Norway, have smaller
income disparities and do better in regards to all human development parameters.
Violence is more common in more unequal states, not only because inequality
increases status competition, but also because people deprived of the markers of
status (incomes, jobs, houses, cars etc.) are more inclined to crime and violence.
During the next few decades, “green” politics will become dominated by
“inequality” issues. The greatest threat to reducing carbon emissions is consumer-
ism, which has been greatly driven by status competition, again intensified in
significantly unequal societies. Narrowed income differences make us less vulner-
able to these pressures, therefore, greater equality is crucial to achieving environ-
mental sustainability. Despite being vilified as developing markets that guzzle
carbon emitting energy, China, India and Brazil together, consume a fraction
(50%) of what is used by advanced economies. In societies where income
differences have been narrowed, statistics show that community life is stronger
and more people feel they can trust one another. There is also less violence,
including lower homicide rates, higher life expectancy, lower crime rates and
children are better educated. Reducing inequality through conscious public
policy interventions will require ideological commitment from the state and
their executing agencies (Wilkinson 2016).
A proactive democratic state develops policies for both public and private
sectors—based on a long-term vision, shared norms and values, rules that build
trust between the trinity: state, the citizen and the private institutions, while
promoting societal unity, cohesion and sustainable transformation.

Developmental states: divergent approaches

Developing countries rarely follow a uniform trajectory. Many of these ex-colonies
have faced multiple challenges, adopted varying policies to deal with market
 The changing world of the 21st century 9

regulation, export promotion, industrial development and human development. In

this post globalized era, public policies need to promote entrepreneurship while
providing safety nets to protect the poor from the negative effects of unbridled pro-
market policies. Governments can nurture domestic industries (public value based)
that would not otherwise emerge because of free market competition. This has
enabled several countries of the South to turn loss making industries into early
drivers of export success, as their economies became more open under the leader-
ship of strong authoritarian regimes, e.g. South Korea and Singapore.
Developmental states have experimented with different approaches. However,
some features stand out: for instance, expansion of basic social services, like
health, education with anti-poverty programmes and rapid expansion of employ-
ment opportunities, are critical features of growth that have promoted human
development and created less unequal societies.
For the first time in 150 years, the combined output of the developing
world’s three leading economies—Brazil, China and India—is about to equal
the combined G.D.P. of the long-standing industrial powers of the North—
Canada, France, Germany, Italy, the United Kingdom and the United States.
This represents a dramatic rebalancing of global economic power. In 1950,
Brazil, China and India together, accounted for only 10% of the world
economy, while the six traditional economic leaders of the North accounted
for roughly half. According to successive World Bank Development Reports,
by 2050 Brazil, China and India, will together account for 40% of global
output, surpassing the projected combined production of today’s Group of
Eight (Go8) bloc of economies (the major industrialized countries).
Today, the South as a whole produces about half of the world’s economic
output, which is up by about a third since 1990. The combined G.D.P. of the
eight major developing countries alone—Argentina, Brazil, China, India, Indo-
nesia, Mexico, South Africa and Turkey—now equals the G.D.P. of the United
States, which is still the world’s biggest national economy. As recent as 2005, the
combined economic weight of those eight countries was barely half of that of the
United States (U.N.D.P. 2013). Other development challenges also exist. An
estimated 1.57 billion (mainly in the South) live in multidimensional poverty; a
measure of both the number and the intensity of overlapping human deprivations
in health, education and standards of living in the world today. Between 1990–
2010, the South’s share of the global middle class population expanded from 26%
to 58%. By 2030, more than 80% of the world’s middle class is projected to be
residing in the South and will account for 70% of total consumption
expenditure.5
The 1994 U.N.D.P. Human Development Report argued that the concept of
security must shift from the idea of a militaristic safeguarding of state borders to a
reduction of insecurity in people’s daily lives (or human insecurity) (U.N.D.P.
1994). In every society, human security is undermined by a variety of threats,
including hunger, disease, crime, unemployment, human rights violations and
environmental challenges. Let’s look at what we understand as economic
10 The changing world of the 21st century

insecurity. In the countries of the North, there are millions of young, unem-
ployed in these recessionary times, while in the South, millions of farmers have
been unable to earn a decent livelihood from low priced stagnant agriculture.
Closely related is insecurity in food and nutrition. Many developing countries
households face high food prices, and as a result cannot afford two square meals a
day. Another major cause of impoverishment in many countries, rich and poor, is
unequal access to affordable health care. Disease and hospitalization are one of the
most important common causes of destitution. Meagre incomes are lost when
heavy medical expenses are incurred by a household.
Therefore, perspectives regarding security need to shift from an old and
exaggerated emphasis on military strength to a well-rounded, citizen-centric
view. In this context, it is pertinent to state that global military expenditure
exceeded $1.4 trillion in 2015, more than the combined G.D.P. of the 50 poorest
countries in the world, and 20 times more than the total money given annually as
aid to eliminate poverty through multilateral aid.

Concluding observations
The 21st century is witnessing a seminal shift in global power relations and
equations driven by the newly emerging new powers of the developing world.
China has become the world’s second largest economy, lifting hundreds of
millions out of poverty through its planned economy and socialist policies. India
has also made slow but steady progress in poverty reduction, as well as growth
and human development through democratic political regimes.6 Brazil is raising
its living standards and levels of human development through innovative anti-
poverty programmes that are emulated worldwide. However, its growth trajec-
tory has been erratic and less consistent in recent times. Russia, once a
superpower, is now a B.R.I.C.S.7 country, undergoing painful transitions in an
effort to dismantle its huge public sector and move towards the globalization,
liberalization and privatization of its economy. All ex-socialist countries of Eastern
Europe are similarly experiencing painful transitions to embrace globalization.
Bureaucracies have had to adjust from ruling from a commanding height to
sharing power with the private sector and competition from global markets.
However, what is noticeable is that, in differing degrees, developing countries
have built institutional and human capacities in the last three decades.
The South has finally arrived (Zakaria 2009) a fact that needs to be celebrated in world
politics. Indonesia, Thailand, South Africa, Malaysia, Mauritius, Bangladesh,
Rwanda, Ghana and other developing countries, are becoming leading actors on
the world stage. The 2013 U.N.D.P. Human Development Report identifies
more than 40 developing countries that have done better than expected regarding
human development in recent decades, with their progress accelerating markedly
over the last 10 years.
Each country of the “successful” South has its own unique history and as a result
has chosen its own distinct development path for nation building and socio-economic
 The changing world of the 21st century 11

progress. Nonetheless, they share important characteristics and face many of the same
challenges of public governance. They are also becoming more interconnected and
interdependent. People throughout the developing world are increasingly becoming
visible, vocal and rights conscious, demanding to be heard, as they share ideas through
new communication networks and seek greater accountability from domestic govern-
ments and public administrators. Taking on a wider, more global perspective, the
developing world does encounter challenges when arriving at “consensus” decisions
with the developed world. However, these are some of the common issues they fight
for as a bloc in global fora:

• Advancing the objective of a fair, balanced and development oriented

multilateral trading system for all, for both developed and developing
country members of the W.T.O.
• To contribute to the construction of a new global architecture to bring their
collective voices together on global issues and to forge new areas of
cooperation.
• Promotion of peace, security and development in a multipolar, and increas-
ingly interdependent world.
• The importance of adhering to the principle of common, but differentiated
responsibility, as well as the notion of national policy space.
• All nations should increasingly act not only as national sovereign entities but
also as intermediaries to balance national, regional and global concerns.

The belief that public administration and governance can make a difference has
been amply recorded in several examples in this chapter. True research lies in
looking at the long term and steady trends of the last hundred years. If the world
has become a more liveable and egalitarian place, where standards of living of the
common man have been consistently rising, then credit goes to research in
science and technology and its diffusion in modern societies, both of which
have been due to active “state interventions” in society and the economy. People
are “climbing out” of extreme poverty (every day 1,37,000 people lifted out of
poverty in the past 25 years), fewer children are dying and life expectancy and
literacy rates are going up. Through targeted public health interventions huge
progress has been made against many erstwhile fatal diseases. Women who bore
the brunt of violence, the burden of household work and child rearing, are now
increasingly entering the workforce and empowering themselves with the rights
they had previously been denied.
The Global Gender Gap Report measures performance on conditions necessary
for women’s empowerment through four indices—education, health, economic and
political participation. Iceland, Finland, Norway, Sweden and Denmark, have closed
80% of the gender gap. The U.N.D.P. Human Development Index, over the past
few years, have recorded the human development of 188 states. Norway is ranked
no. 1 in the list, U.S.A. is 13th and India is ranked 130 in the Index. All three are
democracies, the U.S.A. is the world’s richest economy and the latter is the world’s
12 The changing world of the 21st century

largest democracy. A country’s global power rating can never be insulated from its
domestic policies and performance; a nation’s true strength lies in the degree to
which it can legitimize its citizens’ claims and entitlements. The nations that can
successfully do this fine act of balancing are, and will be, the nations to watch out for
in the future. In this post globalized era, citizens need to assess the gains of the past
century, and begin setting goals for this century. Setting Millennium Development
Goals and Sustainable Development Goals is one such exercise. More importantly,
any nation from any part of the world, developed or developing, can be a norm setter
or a developmental role model for others to follow. No model can remain iconic
forever.
Science, technology, sound public policy and good governance, can work
wonders for those who are deprived. China and India’s record in poverty reduction
and human development through redistributive public policies, are worthy of
emulation. Liberty, equality and justice were goals worth striving for in the last
century—they are no less relevant now in the 21st century. It is also becoming clearer
that if the Sustainable Development Goals (S.D.G.’s) are to be met by 20308—it will
be largely due to the efforts of the South to build new administrative capacities which
can take us to a much fairer, freer and more egalitarian world than ever before. States
can only translate promises of “good governance” through effective, efficient and
committed public governance systems. Therefore, building “age and country”
appropriate administrative skills and capacities is of paramount importance for all
states (developed or developing) in the 21st century.

Notes
1 F.W. Riggs, well known scholar of comparative public administration, developed a
typology to analyze the administrative systems of different and diverse countries in his
model of fused (underdeveloped), prismatic (developing) and diffracted (developed)
societies. Riggs gave the distinguishing features of each:

Fused Prismatic Diffracted

Particularism Selectivism Universalism
Ascriptive value Attainment Achievement
Functionally diffuse Polyfunctionalism Functional specificity

This author has followed the Riggsian scheme in her definitions of the terms “under-
developed”, “developing” and “developed” countries.
2 65.6 million people count among the displaced in 2018, the highest in 7 decades:
half of them are children. From Syria and Afghanistan, to more recently, DR
Congo and Myanmar, civil wars and inter-state violence have swelled the numbers
of refugee populations worldwide (2016 data, U.N.H.C.R., Source: Times of India,
January 18, 2018).
3 The Universal Declaration of Human Rights (30 articles) was adopted on December
10, 1948 by the General Assembly as a common standard of achievement in the
promotion and protection of human rights. The Declaration includes individual civil
and political rights as well as economic, social and cultural rights. The Declaration
accepts the principle that states can build human rights only for the “just requirements
of morality, public order and the general welfare in a democratic society”.
 The changing world of the 21st century 13

4 The term “Global South” refers broadly to the regions of Asia, Africa, Latin America
and Oceania. They refer to ex-colonies, outside Europe and North America, mostly
economically undeveloped low-income countries, often politically marginalized, ideo-
logically “mixed” and clubbed together as the Third World.
5 Middle Class—By Human Development Report calculations based on Brookings
Institution (2012) data, the middle class includes people earning or spending $10–100
a day in 2005 purchasing power parity terms.
6 In October 2016 the World Bank reported that 767 million people live in extreme
poverty: earning less than $1.90 a day. In India, the number of poor fell by 218
million from 2004 to 2013. In China, it fell by more than 320 million from 2002 to
2012. The average person in extreme poverty lives on $1.33 per day. It would take
just $0.57 per day ($159 billion a year) or less than 0.2% of global G.D.P. to end
extreme poverty.
7 The term “B.R.I.C.S.” was coined in 2001 in a report by Goldman Sachs, the
investment bank, to highlight the growing economic might of four large countries on
the world stage—Brazil, Russia, India and China. South Africa has now been added to
this list. In addition to highlighting a shift in the power balances of the new global
order, with most of the growth in world production coming from developing and
emerging economies, the main intention of this group of countries is to checkmate the
U.S. hegemony in world affairs. I.B.S.A. (India, Brazil and South Africa) is another
platform of major developing countries.
8 Sustainable Development Goals (S.D.G.s) were initiated by the United Nations in 2015
to address key development challenges including climate change, economic inequality,
sustainable consumption, peace and justice. The seventeen goals, to be achieved by
2030, are comprehensive and focus on the five P’s—people, planet, prosperity, peace
and partnership.

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