CIPS(Centre for Innovations in Public Systems) www.cips.org.

in/ Genesis The Thirteenth Finance Commission in its recommendations for the Years 2010 - 2015, inter alia, stated as follows (Volume-I of the Report, December 2009, Chaper-12, Grants-in-Aid): Promoting Innovation The President of India, in her address to Parliament in June 2009, committed the nation to a path of promoting innovation and unleashing the creativity of a billion people. She announced that the next ten years would be dedicated as the 'Decade of Innovation'. Innovation can play an important role in providing better alternatives, reducing costs, improving service levels and filling in availability deficits. The task is, therefore, not only to foster innovation, but also to promote it zealously. A number of appropriate, low cost and people oriented innovations already introduced in various states have been documented by the National Innovation Foundation (NIF) and are being disseminated by them. These innovations relate mostly to individual initiatives in the private sector. The Commission feels that a number of equally relevant innovations exist in the government sector which need to be recognised, documented and promoted amongst all State Governments. We note that a number of national programmes, like the mid-day meal scheme, were rooted in innovative schemes initially adopted at the state level. We, therefore, obtained from State Governments a description of the major innovations they have introduced in different sectors to improve service levels and reduce costs. These innovations are in a variety of sectors like health, education, tourism and natural resource management and are aimed at improving service delivery. They also cover improvement of governance and supply of justice. Based upon an analysis of the data received and suggestions of NIF, we have recommended a two-pronged initiative. Centre for Innovations in Public Systems (CIPS) The first initiative is embodied in the request of the Andhra Pradesh Government for assistance to set up the Centre for Innovations in Public Systems (CIPS) at ASCI, Hyderabad. The CIPS will actively promote and disseminate among states practices which have enhanced service delivery, increased efficiency and led to cost reduction in public systems. It will also continuously scan the environment for new practices which it will add to its data base, which will then be made available across states. It will conduct training programmes and enable experience sharing. The functioning of CIPS will be guided by an advisory council with all the chief secretaries of State Governments as its members, apart from Central Government representatives and independent experts. The grant of Rs. 20 crore will be utilised for running the CIPS for a five-year period, after which it is expected to become self-sufficient. The grant will be released in one instalment during 2010-11. The modalities of the grant are further detailed in Annex 12.13. This provision is included under the state specific grants for Andhra Pradesh (Para 12.127). Establishment of a Centre for Innovations in Public Systems In order to create a climate for accelerating and diffusing innovation in public systems through sharing of experiences across states and to facilitate the establishment of institutional and human capacities for innovation through knowledge sharing and mobilisation of practical help, recommendation granting an

amount of Rs. 20 crore was made to establish a Centre for Innovations in Public System (CIPS) at the Administrative Staff College of India (ASCI), Hyderabad. The Centre will be governed through an advisory council, with representation from all states. A Steering Committee will assist states to transform creative ideas into sustainable practices. (Refer to Para 12.92). Mission & Objectives The "Concept Note and Guidelines for Setting up of the CIPS" (Annexure 12.13, Pages 469472) contained in the Report (Vol.-I) of the Thirteenth Finance Commission (TFC) set out, inter alia, the mission, objectives and functions of CIPS. These are as follows: Mission The mission of CIPS is to help create a climate and nurture a culture for accelerating and diffusing innovation in public systems. Objectives Objectives of CIPS are to: i. ii. iii. iv. Identify, recognize and promote innovations in public systems in the area of management of people, process (cost and quality), systems (technology) and services, across various states to improve the well-being of the common people. Catalyze and trigger lateral learning for initiating action research projects, macro level changes and innovations in the policies and practices across states. Provide a range of learning opportunities and services to various stakeholders for building capacity through training programmes, conferences, seminars, surveys, publications and development of a national catalogue/database of innovations in public systems for improving public services. Facilitate sharing of international experiences and exposure to best practices in governance of public systems.

Functions The functions of CIPS are to: i. ii. iii. iv. v. vi. vii. viii. Scout, scan and track different innovations at the state as well as at the national level that have positively impacted public service delivery, increased efficiency and led to cost reduction. Create a public domain inventory of innovations in public systems, government departments for the purpose of knowledge management and diffusion of innovations. Facilitate emergence of eco-systems that are hospitable to cost-effective innovative ideas, provide empowerment and freedom, and encourage risk-taking experiments for promoting innovations. Act as a platform for sharing and disseminating knowledge of new ventures and best practices in administration. Help in developing policies for incentives (reward & recognition) to accelerate the process of innovation and cross-fertilization of ideas for opening up new lines of inquiry for sustainable change and transformation in public systems. Design relevant training programmes in partnership with the State Governments for developing an innovative mindset for creating new solutions on an ongoing basis. Facilitate pursuit of diagnostic studies to identify possible barriers that block innovation and also factors that facilitate innovations in public systems. Organize annual retreats of top leaders (chief ministers, ministers, principal secretaries, secretaries, etc.) in a conductive setting for encouraging constructive debate, introspection and reflection for developing inclusive policy solutions and operational mechanisms. This will also help in building leadership traits that facilitate learning from below, around and from people at the grass root level.

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Honor outstanding innovations in public systems through a scheme of annual awards so as to incentivize the innovators in public systems/state departments. Develop a body of knowledge including research based case studies, comparative analyses of innovations and experience of their diffusion within and across the states using multimedia and multi-language learning materials for becoming more innovative in the delivery of public services.

Governance Structure The governance arrangements for CIPS, which will be located in ASCI, would be as under: The Advisory Council An Advisory Council for CIPS will be formed, comprising: i. ii. iii. iv. v. vi. Chief secretaries of all the states or Union Territories. Three representatives of the Union Government, viz. the Finance Secretary, Secretary (Personnel), and Secretary (Administrative Reforms). Director of the Lal Bahadur Shastri Academy of National Administration. Chairman, National Innovation Foundation. Four independent experts known for their contribution to the field of innovation, to be nominated by the Director-General of ASCI. Director of CIPS, who will act as the Convener/Secretary.

The Advisory Council may be chaired by the Chief Secretary, Andhra Pradesh State Government, who is also a member of the Court of Governors of ASCI or a person nominated by the Chairman of ASCI Court of Governors. The Advisory Council will: i. ii. iii. Comment and make suggestions on the Center's work programme and monitor its implementation Review and comment upon the annual budget of the CIPS and receive an audit report Meet twice a year in Hyderabad, subject to a minimum quorum of 25 per cent of its membership

Chairman, Advisory Council Ms. Minnie Mathew, 1976 batch Andhra Pradesh cadre IAS Officer, is the Chief Secretary of AP. She is the Chairman of the Advisory Council of CIPS. Steering Committee A Steering Committee will be established to provide space for the representation of the insights of State Governments in giving shape and driving the work programme of the Centre. The Committee will be headed by the Director-General of ASCI. The other members of the Steering Committee will be: i. ii. iii. iv. Two chief secretaries to the government or their nominees as invited by the Chairman of the Court of Governors of ASCI (or nominated by the Advisory Council) to serve for one year each, on a rotating basis. Director of the Lal Bahadur Sastri Academy of National Administration. Two of the four independent nominees represented on the Advisory Council, as invited by the Director-General of ASCI. The Director of CIPS (Convener/Secretary), to be appointed by ASCI

The Steering Committee will meet every quarter, with a quorum of one-third of its membership. It will report to the Advisory Council of CIPS and, through it, to the Court of Governors of ASCI, on its work programme twice a year. Chairman, Steering Committee SIRIPURAPU K. RAO, M.A. (Cantab.), Ph.D. (Cantab.): Director General, ASCI. An economist and former international civil servant, he worked at the Commonwealth Secretariat for 18 years from 1978, rising to the level of Director, Strategic Planning and Evaluation Division. He was a member of a task force charged with restructuring the Commonwealth Secretariat and a member of the Management Committee chaired by the Secretary General. During 1986-87, he was Economic Adviser to the Ministry of Commerce, Government of India. He also taught economics at the University of Cambridge, Jawaharlal Nehru University and the University of Papua New Guinea. Areas Deserving Focused Attention While observing that there is no dearth of ideas being tried in different states for improving the quality of governance, the Concept Note of the Thirteenth Finance Commission has identified the gaps in the following areas that need systematic attention: i. ii. iii. iv. v. vi. vii. viii. Harvesting the conceptual and operational lessons from different experiments and successful policies across the states Creating a database on innovative and best practices in different sectors and at different levels in the states Facilitating cross-fertilization of ideas at a sufficient rate and scale Ensuring sustainability of good ideas, innovations and practices Incentivizing innovations in public systems and giving sufficient visibility to change agents Ensuring that the lessons of various innovations are adequately and systematically incorporated in the training and education initiatives of public administration institutions Suggesting mechanisms for bringing about synergies among public, private and civil society organizations Ensuring sufficient attention is paid to build leadership that spots, sustains and spawns innovations.