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Because of Poverty, Slow Development, Corruption, Disorder etc in Kerala & India, I searched for a good model for FAST Socio-economic Development. Slides advance automatic & on Mause click. Many may think it is an old story!. In August 2007, the Arjun Sengupta Committee reported

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Because of Poverty, Slow Development, Corruption, Disorder etc in Kerala & India, I searched for a good model for FAST Socio-economic Development

Slides advance automatic & on Mause click

many may think it is an old story

Many may think it is an old story!

In August 2007, the Arjun Sengupta Committee reported

that 836 million Indians – over 75 percent - are poor and vulnerablesurviving on a daily average expenditure of under Rs. 20 a dayQuoted by Hon. Indian Minister of Panchayati Raj,

Sri. Mani Shankar AiyarIn the text published in the Hindu from 8–11 June 2008*,

of his planned address at the University of Stanford


Any number of pictures can be added to prove this;

but it is not necessary for any observant Indian.

Slides Advance ‚AUTOMATIC‘ or by ‚CLICK‘

PPP, Text & Concept by: Abraham Karammel –

two super models of fast development
Two Super Models of FAST Development

Singapore is the most successful City of the 20th Century. It developed from 3rd world to 1st in about 25 years, thru authoritative, disciplining and restrictive democracy by highly talented technocrats – this is called ‚Meritocracy‘. It also had unique circumstances and exceptional personalities behind its success!

Porto Alegreis Brazil‘scity with the best quality of life since 2001.

This city was bankrupt in 1988, spending 96% of revenue for

salaries and routine expenses. To resolve this crisis, the city

started Participatory Budgeting (PB) in 1989. This PB evolved into

world‘s most efficient & systematic socio-economic development process, now famous as ‚Porto Alegre Innovation‘. This PB process

is suitable forvillages/towns/cities of developing and developed countries. Because of its great merits, in addition to about 300 local

Governments in Brazil, Participatory Budgeting is adapted

in about 40 countries including Argentina, Chile,Mexico,Paraguay, Canada, England, France, Germany, Italy, Spain etc.


Achievements of Singapore in about 25 years

1. World’s cleanest city& a garden city for several years

2.Singapore Airlines -world’s best many times

3.Voted world’s best Airport many times

4. Singapore world’s busiest port; can handle 700 shipsat a time

5.World’s best housing policy - 91% people own their home (2005)

6.95%Singaporeans speak fluent English

7.One of world’s best transportation systems

8.World‘s only MegaCity without traffic jams

9.Very efficient Water, Electricity and Telecom systems

10. Very efficient Healthcare System

11. World‘s lowest Infant Mortality: 2.1/1000 (2005)

12. Very efficient Education System

13. Very low rates of strikes & protests

14. Very low unemployment rate: 3.4% (2005)

15. Very high political stability – 82 of 84 seats to PAP (2004-7)

16. Foreign Currency reserve 2005: $140 Billion (India: $120 Bn.)

17. One of the world‘s 10 least corrupt countries

18. Very low Criminality

19. Very high per capita income – ca.$40,000 (2008)

20. One of world‘s favourite tourist and shopping destinaions

21. Rated as WORLD‘S BEST MANAGED CITY for 2004

(Singapore: area 699; Population density: ca. 6,000/sq. km)


Singapore is a World Tourist Destination

'Santosa' its Entertainment Island


'Twinkle, Twinkle, Singapore,

Like Many Diamonds in the Sea'


The Secret of Singapore‘s Success

Mr. Lee Kuan Yew founded Peoples‘ Action Party (PPP) in 1954

Became the 1st PM in 1959 & was reelected as PM until 1990

Declined to be PM in 1991 & was Senior Minister from 1991 to 2004

Mr. Lee was elected Mentor Minister in Aug 2004

(Probably world‘s longest serving minister and only Mentor Minister!)

Right: Mr. Lee‘s book ‚From Third World to First‘


Mr. Lee Kuan Yew the 1st PM of Singapore is a Double 1st Class

CambridgeLaw Graduate Very knowledgeable, great orator & Visionary

In 1960s, during political struggle, he planted trees in the city!

On a friend’s tip, he imported fishing rods for the poor to catch fish for food!!

In 1994 he linked ministers’ salaries to that of 8 top earners in 6 top professions,

to attract best brains to politics & be clean! It is fixed at 2/3 the median earnings

of lawyers, accountants, bankers, MNC Executives, local manufacturer and engineer.

In 2008 the Singapore PM’s salary is S$3,091,200 or US $2.04 mil. per year!

US President gets only $400,000, UK PM $375,222 and French President $346,000!!

Ideas/advice of Mr. Lee Kuan Yew

The important personality traits of his CEOs:

1. Analytical Thinking, 2. Logical understanding of Cause and Effect,

3. Concentration to the Target, and 4. Imagination (known as ‘Helicopter Qualities’)

Pre-requisites for Socio-economic Development:

1. A Determined Leadership, 2. Efficient Administration, and 3. Social Discipline

WARNING: A Society where the corrupt becomes rich and powerful,

and the hard-working remains poor will fail!

Mr. Lee influenced almost everything in Singapore!


Criticisms on Singapore

Very Authoritative rule

No real democracy

No freedom of opinion

Highly censored press

Very short lead time for elections

Compulsory voting; those do not vote lose the right

Singapore is a ‘fine-city’ (penalty-city)

Very harsh punishments

Death penalty for drug smuggling & Kidnapping

Country with the highest death penalty rate

Too high salaries of Singapore Ministers

PM‘s salary in 2008: S$3.09 million(US$2.04 mil.) /year

Considering the achievements, critisisms are negligible

Because of the above, the uniqueness of Singapore etc,

its political system is not practical in Kerala/India

But Singapore‘s Institutionalisation is worth copying!!

As Singapore City-state‘s Authoritarian Model Is almost impossible in Kerala and IndiaI searched further

I read about Porto Alegre Innovation

in Participatory Budgeting and collected details

It is a Ward-wise Decentralised Budgeting Process

It is Grass-roots upwards process

The process continuously improves in efficiency

It resolved the Bankruptcy of the city

It made Porto Alegre, Brazil‘s city with the best quality of life

In 12 years (1989-2001)!


The Brazilian city Porto Alegre proved that

„Another World is Possible“ – A Fairer & more Equitable World


Porto Alegre‘s Development

  • In 12 Years – 1989-2001
  • (Spending 5 to 20% of City Budget for Infrastructure)
  • Pipe Water from 40 to 99% households
  • Sanitation improved from 46 to 85%
  • Sewage from 46 to 90%
  • Public schools increased from 29 to 86
  • School Enrolment doubled (200%); Literacy to 98%
  • 25-30 km Surfaced roads each year
  • Day-care homes increased from 2 to 120
  • Public Housing from 1700 to 29,000 persons
  • Established very efficient Public Transportation
  • Tax collection improved and bankruptcy resolved
  • Corruption virtually disappeared
  • Citizen participation in PB process increased from
  • 700 in 1989 to 50,000 in 2001
  • Rated as Brazil‘s city with the highest quality of life
  • (Porto Alegre: area 489; Population density: ca. 2, 900/km² in 2008)

In 12 years, Porto Alegre became the City

  • with the best Quality of Life in Brazil
  • Based on 15 factors
  • Housing, 2. Sanitation,
  • 3. Life Expectancy,
  • 4. Infant Mortality, 5. Hospital Beds,
  • 6. Literacy,7. School enrolment,
  • 8. Standard of Higher Education,
  • 9. Job Availability, 10. Catering Facilities,
  • 11. Per Capita Consumption,
  • 12. Highways, 13. Airports,
  • 14. Climate, and 15. Criminality

Porto Alegre‘s FAST Development was thru a very Systematic, Efficient & Yearly cyclic Participatory Budgeting (PB) process, famous as ‚Porto Alegre Innovation‘

  • The 489 sq. km city is divided into 16 wards. Two pre-planned major & many minor discussion meetings of the residents are held in each ward, from March thru July every year. This is decentralisation up to the wards.
  • 12 infrastructure items are selected by experts: 1. education, 2. health, 3. housing, 4. sewage, 5. social assistance, 6. transportation & circulation, 7. pavement, 8. city organisation, 9. leisure areas, 10. sports & leisure, 11. economic development, and 12. culture. These will be similar in any country.
  • Residents of each ward vote to prioritise the Basic Infrastructure to be developed in their ward, from the 12 items pre-selected by experts.
  • The priority given by residents is equitably balanced with a smart formula considering the population of the ward, the weight assigned to the particular infrastructure, the volume of the infrastructure in the ward, total funds available etc. This facilitated a balanced and sustainable city development.
  • The residents also elect two PB Councillors and two alternates from each ward for one year. Participatory Budgeting Council (PBC) is the most important organ in PB. It mostly consists representatives of Non-governmental Organisations (NGOs), civil society etc.
  • PBC negotiates with Mayor‘s executives & the councillors, the adoption of priorities, implementation of projects & oversees these too.
  • Directly elected Mayer & his executives, separately elected City Council, and the Participatory Budgeting Council – three elements - work together.

(See graphics of the process on the following slides)


4. Balancing of Priorities

and Budget Finalisation

(PBC, Mayor's Experts & City Council)

3. Election of PB Councillors

(In 1st & 2nd Major meetings)

5. Publication of PB Investment Plan

(By experts & PBC)

Yearly Cycle

2. Discussions &

Prioritisation of Inf. Str.

thru voting by Residents

(5 Months Process)

6. Monitored Implementation of PB

(by Experts & PB Council)

1. Evaluation of PB Implementation,

& Assessment of Infrastructure

(By experts & PBC)


4. Balancing of Priorities

and Budget Finalisation

(PBC, Experts & City Council)

3. Election of PB Councillors

(In 1st & 2nd Major meetings)

5. Publication of PB Investment Plan

(By experts & PBC)

Continuous Improvemnt

Year after year

2. Discussions &

Prioritisation of

Inf. Str. by Residents

(5 Months Process)

6. Monitored Implementation of PB Plan

(by Experts & PB Council)

1. Evaluation of PB Implementation

& Infrastructure Assessment

(By experts & PBC)

1989 – 1995 – 2000 – 2006 …

Cumulative Gains


In 12 years, 'bankrupt' Porto Alegre became

Brazil's City with the Best Quality of Life


Kerala, India & any Country

will need both, because:

Porto Alegre Innovation in PB

is a process by common people,

for Infrastructure development

Fast Development

in Science, Technology

etc and Institutional excellence

need Singapore style 'Meritocracy'

India is world's most diverse

and complex country,

and Kerala is its state

Both need a FASTER development


Singapore was developed

from the TOP in 25 years

by Mr. Lee and his colleagues.

Porto Alegre is developed by Residents

from the BOTTOM in 12 years

thru a very efficient & systematic process

Decentralisation up to the wards

is the key in both cities

Kerala and India

need elements of BOTH

for a FASTER development

socio economic problems
Socio-economic Problems

When socio-economy is NOT managed well,

Unemployment, Poverty, Diseases, Suicides, Homicides,

Destitution, Migration etc become acute!?

Then, every action to solve them

Should be very careful, deliberte, and balanced.

Success models should be adapted to save time, effort and errors!



Computers, cars, Jumbo-jets and human beings are copies.

Copies can be even better than the original or worse!!

Decisive points in copying: 1. Essential Adaptations should be made

to make it feasible in a different situation;

and 2. Important Elements should not be dropped out at all

Today, for about 95 percent of the problems in the world,

several solutions are available somewhere!!

Photos Curtsy, Singapore Tourism Board, Goethe Institute Porto Alegre, & Ms. Leia B. Bagesteira

PPP, Text & Concept by: Abraham Karammel –

two latest success stories both highlight effective local involvement

Two latest Success Stories – Both highlightEffective Local Involvement

Indian State Andhra Pradesh shows the way The success of National Rural Employment Guarantee Act (NREGA)

Social audits in AndhraPradesh covering 12 million peopleis a brilliant example of civil society actionenriching mainstream politics

“Political support has, of course, been a necessary but by no means sufficient condition. Two other novel features have turned the tide. One, the use of Information Technology (IT) and the other, the role of civil society. All stages of NREGA work, from registration of workers to issue of job cards, preparation of work estimates, muster rolls and payments to workers have been computerised. With strong administrative backing and robust social audit, this IT system frees information from the shackles of power and privileged access.”

(From Article by: Mihir Shah & Pramathesh Ambasta – The Hindu 2008.09.08)

A mission that’s possible Community-based monitoring has laid barethe inadequacies of the primary Health-care system in in Indian State Maharashtra

“The National Rural Health Mission (NRHM) was introduced in 2005to improve health-care in poor areas with an enhanced funding mechanism.More than the mission itself, it is the community-based monitoring component introduced in Maharashtra in April 2007, which has emerged as a means of correcting institutionalised deficiencies.”

(From Article by: Meena Menon - The Hindu – 2008.09.11)

the urgent need in india

Villages/Towns/cities all over India should copy Porto Alegre style PB. A few models in each district will be ideal.Only then,even experts will realise thatFast Development is Feasible.

  • Top institutions like the State Bank of India, Reliance, Universities,
  • personalities like the Indian President, Prime Minister, Top Film
  • Stars, NGOs etc should adopt villages to create models.
  • NGOs will be the ideal agencies for this, as in Porto Alegre.
  • Because of lack of vision & knowledge, conflict of interests etc
  • Most Politicians are unable to do much in this matter.

The URGENT NEED in India

The Principle of decentralisation is in the Indian Constitution of 1950.

Even though Panchayati Raj Act was incorporated ino Indian constitution

for better decentralisation in 1992, the Central and State gov‘ts do not fully

Empower all Local Self-governments with Funds, Functions and Functionaries,

until now. The decisive details of Porto Alegre Innovation should be incoroporated

into India‘s Panchayathi Raj Act to make this process obligatory thru out India.