The Growth and Transformation of Small Firms in India, by Sebastian Morris, Rakesh Basant, Keshab Das, K. Ramachandran, and Abraham Koshy, New Delhi, Oxford University Press, 2001.

Covers the growth and transformation of small industries in the nineties and before; addresses policy issues and makes radical suggestions on how small industries can become the leading edge of India's competitiveness. Inter alia it covers the issue of "Reservation", credit policy including directed credit, duty concessions, preferential purchase, the tariff regime and macro-policies for small firms to take off. Argues for incentivisation of bank lending to small firms, privatisation of banks, de-reservation, petty patent regime, geographical identifiers for protection of intangible property,  correction of the inverted tariff, better infrastructure especially in  industrial estates, cluster oriented micro action, and the pursuit of export led growth policies.

The current paradigm of 'protectionist' and 'supportive' policies is shown to be not only inadequate, but also to have constrained the growth and transformation of the sector.  Macroeconomic policies especially with regard to trade and exchange rate and the functioning of credit markets have severely discriminated against small firms. Bringing in a wide variety of evidence, including that from large primary survey, the study recommends that more aggressive exchange rate policy, correction of the tariff inversion, incentivisation of credit flows, and de-reservation would make the sector the principal dynamic force in the economy.  Small firms need to be 'freed' rather than protected.  The deep "schism" in the labour market makes small firms crucial to the transformation of the economy, and to labour absorption. The characterisation of the segments within the small firm sector is fresh and innovative and leads to a new perspective of the economy and its structure.

Download: Contents Page / Executive Summary /  The questionnaire used (You may use with acknowledgement / Visit Oxford Univ Press (Buy the Book-India)  /  Buy the Book -UK  / Buy the Book  -US

Reviews:"Small  is big" by P. Jegadish Gandhi, in HINDU BUSINESS LINE / "Alas, more dog days ahead for small firms", by PRADEEP SRIVASTAVA in Financial Express (Bookmark)  / "The Small Scale Sector" by N. Ramaswami, in the Hindu

India Infrastructure Report 2001: Issues in Market Structure and Regulation, (ed.) Sebastian Morris, 3iNetwork, Oxford University Press, New Delhi and New York, 2001.

Is the first in the series, and a joint effort of the 3iNetwork, and is edited by Sebastian Morris. The book reviews infrastructure development since the reform of the Indian economy began in 1991, discusses the current policies, and constraints and lays a framework for overcoming some of the constraints. The theme here is regulation and market structure that the Indian economy needs to bring about for the efficient provisioning of infrastructure. The lead article by the editor contextualises the issue to the Indian situation.
The sectors covered are telecom, electricity, road transportation, coastal shipping, ports, besides more generic issues relating to land, environment, urban local bodies, and urban services.

Download:Contents Page /Overview (Chapter I) / Read Lead Article / Read the Book / List of Authors / Buy the Book (India) / Buy the Book (US) / Buy the Book (UK)
Review: The Hindu Business Line / The Tribune (presentation)  / The Project Monitor

India Infrastructure Report 2002: Governance Issues for Commercialization, (eds.) Sebastian Morris and Rajiv Shekhar, 3iNetwork, Oxford University Press, New Delhi and New York

This book gets under the skin of the catch all category of governance to lay bare the policy and organisational failures that have spawned poor governance in India. It argues that rather than viewing poor governance as a cause, it has been more an effect. Many of the vested interests of today have been created by past failures in policy. Administrative and other processes of the state have also contributed. The need of the hour in the physical infrastructure sectors is to get the frameworks for citizens and private participation right, to bring about the legal and other changes necessary to improve contract adherence and to find the right non -distortionary ways to administer subsidies. Topics covered in depth include the constitutional and legal framework for governance, the problem of environment, rehabilitation and the major failures therein, regulatory and the contractual framework necessary to take commercialisation forward. Besides the thematic topics, rural and urban infrastructure, and the sectors power, telcom, water and integrated transport including the developments over the year are covered.

Download: Download the Book / Preface, Acknowledgements etc / Browse Contents  / Read Overview (Chapter) I /Read Theme Article / Some Contributions /List of Contributors / Buy the Book (India) /Buy the Book (US) /Buy the Book (UK)
Review:"More problems, few solutions" by Uday Balakrishnan in The Hindu Business Line /  Project Monitor /  Terra Greeen

India Infrastructure Report 2003: Public Expenditure Allocation and Accountability, Sebastian Morris (ed.), 3iNetwork, Oxford University Press, New Delhi and New York.

The third book in the series its focus is on the processes involved in government expenditure, and the perversities therein that result in poor accountability, and embedment of responsibility. A much broader approach of the expenditure process that what is usual is taken. The discussions are driven by the need and the feasibility of bringing change for the better.  As such the potential for decentralisation, much better and incentive compatible criteria for devolution both through the Planning Commission and the Finance Commission, privatisation, PFIs are discussed. The current dysfuctionalities  in Plan expenditure, the need to recast the role of the Planning Commission, the need to move away from the incremental dual budgeting processes are dealt with in detail. Similarly the current problems in government procurement, the inadequate framework of the the expenditure review commissions, and the waste in so many of the social expenditures are brought out. The finances of municipal bodies, lack of contract adherence by the state and the costs they impose, the potential of PFIs in the Indian context, the potential of the recent "securities ordinance" is also covered. The developments in the physical infrastructure sectors over the year is a part of this report.

Download: Download the Book / Browse Contents Page / Read Overview (Chapter I) /Read Theme Article / List of Contributors / Read Forward, Acknowledgements etc / Buy the Book (India) / Buy the Book (US) / Buy the Book (UK)
Review: RIDF: Working at Cross Purposes by P Devarajan in the The Hindu Business Line /Bookmark - How About Viable Infrastructure? by Vinayak Chatterjee in the Financial Express.

India Infrastructure Report 2004: Ensuring Value for Money,  Sebastian Morris (ed.), 3iNetwork, Oxford University Press, New Delhi and New York.

The fourth book in the series annual series on infrastructure of the 3iNetwork. The report recognising the limits of the current paradigm of the government’s role in infrastructure, argues fro an enhanced role for the private sector and end users. It also outlines necessary initiatives from the government in the form of policy frameworks for public-private partnerships (PPPs), and Private Financing Initiatives (PFIs), for both publicly contracted infrastructure, as well as privately financed and provided infrastructure. It presents examples of pioneering initiatives in this direction, which are demonstrative of good practices that may be replicated elsewhere. The evolution of development finance institutions (DFIs) into market makers is also explored.

The volume covers: Developments in electricity, telecom, water, roads, urban infrastructure, municipal financing and accounting reforms, ports, and energy. Improved methods for public provisioning and frameworks for PFIs, and their contextualization to the Indian situation. Enterprise privatization, the challenges ahead for DFIs, and methods of raising funds by local bodies for infrastructure. Recent initiatives in power including the ‘Draft Tariff Policy’, and the cases of reform of the Delhi, Andhra Pradesh, and Madhya Pradesh electricity boards. Issues related to toll roads, the markets for tolls and annuities, the implementation of the Pradhan Mantri Gram Sadak Yojana in MP, legislative initiatives in Karnataka for infrastructure development, initiatives for PFIs in tourism in Kerala, and possible initiatives with regard to city roads, education, and real estate. Reforms and initiatives in water and sanitation sectors, including innovative approaches to take these sectors forward. The logic vertical integration in the oil sector, strategic oil equity abroad, pricing of gas transport, and review of the Draft Petroleum Regulatory Board Bill in the oil sector.

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Review: Business Line (Water) /