One of the noteworthy features of free India is that agencies which have been granted constitutional autonomy have performed relatively well. Our independent judiciary, despite its ills, has retained credibility across sections of society as a defender of our liberties. The Comptroller and Auditor General (an official with a six-year term and autonomy guaranteed by the Constitution) started off well. Our first CAG, the redoubtable Narahari Rao, took on the arrogant Krishna Menon despite the latter being the then PM’s favourite. While in recent times the CAG’s office has not lived up to its promise, the Election Commission has gone from strength to strength emerging as a credible independent institution of high integrity and competence. The state governments despite misgivings abide by the commission’s rulings. The voters trust this institution. The technology of our voting machines is world class and rugged (it has to be in order to function in a country with a pathetic infrastructure). The EC’s use of technology stands in stark contrast to our police forces.

If our government wishes to ensure that the new federal agency works efficiently and does not get destroyed by turf battles, the best solution is to make it an institution with constitutionally guaranteed autonomy. The director of this agency (and perhaps a few deputies) should be given fixed six or seven year terms and not transferred every year based on short-term whimsical considerations. This will ensure stability in management, which is a prerequisite for building a competent organisation. Fixed terms are better than frequent changes or very long terms. Edgar Hoover, the FBI director in the US who had a virtually endless term, abused his powers and brought disrepute to the government itself. We need to avoid that trap. All political parties have a stake in an autonomous institution if for no other reason than to ensure that they are not victimised when in the opposition. They should therefore be willing to support a constitutional amendment in this regard. If our political parties remain short-sighted (as is most likely) a second order optimality can be achieved by at least making the agency autonomous by statute. In recent times, we have seen that the SEBI and the RBI, with their statutory autonomy, have in fact been citadels of both competence and public credibility.

... contd.