Can we take abolishments as reforms?

The post-oil period is on the threshold as can be seen from public"s response to innovations. Last week"s abolishments of several government establishments may be classified into three groups: 1 - abolished; 2 - transferred to public mode of activity with the retention of the form of management; 3 - reformed on the self-financing basis.

Abolished departments are as follows: Agency for alternative and renewable energy source; Knowledge fund; Center of strategic studies; Agency for public debt management; Public control service over precious metals and precious stones; Scientific center for youth problems.

Secretariat of inter-departmental commission for national secret defense of the Azerbaijani Republic; State commission for control over drug addiction and illegal drug trafficking; Working group of the state commission for war prisoners, hostages and missing persons; Secretariat of tariff council.

A number of abolished departments, including Fund of science development and Baku international center of multiculturalism, commenced their activity on the self-financing basis.

As a part of general reforms, astructural reforms may be evaluated by one omponent only. Reforms in one direction give no reason to insist that reforms are carried out on the whole. Equally, a slowdown in economy gives no reason to insist that there is an economic crisis on the whole: the crisis has its own etymology and specific elements (wages are not paid out for months; national production stops, etc.

Changes in some departments develop into a subject of propaganda; Abolishment of some departments are called reforms. According to the same logic, new departments are likely to throw reforms back? Creation of new departments over the last years point to the lack of strategic vision in the management. (Agency for food secirity, etc.). Abolishment of managerial apparatus is not way out of impasse after the budget has been pillaged. There was need in mobile managerial apparatus in terms of petrodollars and their lack...

Oil money-overmanned managerial apparatus

In case where challenges of the post-oil period are apprehended in terms of reduction or cessation of oil revenues, their consequences prove to be ineffective. It"s common knowledge that when "hot money" come into economy they are used for managing people rather than serving interests of various social groups. Even worse, there shapes a technocratic coprs, overmanned management apparatus and cloddish bureaucracy. In other words, an overmanned managerial apparatus fell prey to the global conjuncture of depreciated oil money. It"s by no means a policy of management .

When it comes to the management apparatus, it is more effective to use a small number of highly-paid workers than a large number of low-paid workers with supplemental benefits. Heads of the state opine that the use of a great number of emplyed in the management fastens people to the government. Artificially overmanned state apparatus was in position to endure the burden at the height of oil revenues. As oil revenues decrease and benefits reduce (envelop money, private business, etc.), functionaries" loyalty to the government tends to decline. An eloquent testimony to this is an experience of countries ruich in nasturasl resources.

It should be added that striking features and subjectivism are deeply rooted in the state management. If a Ministry behaves ill, its authorities are rediuced or it is liquidated at all. In other words, if a Minister is rather hard or instead, supreme bodies treat him favorably, his Ministry is overmanned and better financed from the state budget. Управление измеряется по росту персоны.

Hence, management issues are not issues of personalities but personalization of issues. From conceptual point of view, if the system is inoperative, personality"s importance grows; and vice versa, personality"s importance declines, if the sysyem is effective. When the role of system"s engine rises, system"s power grows.

One of the integral elements of real reforms are structural reforms. The experience of structural reforms worldwide is indicative that in the course of amalgamation of ministries and agencies the heads of structures involved may be represented in a new structure on a parity basis. They are engaged in forming new inconsiderable in number mobile mechanisms of work of the joint structures acting as a single team and headed by one center. However, in our case if a Minister resigns or a Ministry is liquidated, this means the loss of job for the entire officialdom. In the meanwhile, years are required to train qualified cadres.

Role and place of person in the management

Effective management calls to comply with the formula as follows: the best way to prevent exploitation of position is its maximum spreading and distribution. It is a fear of communalization that brings the management into never-ending circle and, hence, abortive result. If no specific responsibility for managerial decisions is available, the information geograsphy is to be expanded for those involved and acting as subjects of tyhiscmanagement. If failed, we prefer to condemn the society. "We are worthy of these rulers" - we often hear and allocate blame of government on people. Figuratively, it is reminiscent of blame laid on spectators by a worthless artist. To my thinking, gingerbread depiction is equivalent to wrongful accusation of people.

Financial burden of management

Beyond any doubt, economy of state funds due to abolishment of structures cannot be a goal in itself. The point is that management funds must serve effectiveness only.

There cannot be so much budgetary expenditures for management in the country with economy"s 81% being concentrated in the private sector. It"d be appropriate to inform that 5,7% of budget in 2019 will be allocated on management and judicial authority expenditures, and 6,4% for law-enforcement and prosercutorial bodies. In other words, total control and strengthening of management levers cost more 12% expenditures.

It has to be kept in mind that effectiveness and decentralization of management is a viable mechanism from institutional effectiveness and fiscal decentralization standpoint. It is essential to put to rest the overmanned management system asimed at forming people"s loyalty to the government. It is imperative to create a compact, mobile and effective model of management.