DARPG initiated a study for measuring governance at State level to provide a tool which could be used by State Governments to identify areas which need improvement. It was the expectation that assessing the state of governance for identifying parameters would help the policymakers and development practitioners to understand implications of certain decisions. Keeping these objectives in mind, the Department initiated this project to develop a framework and an appropriate methodology for assessing the ‘state of governance’ in a State with a focus on the poor. The project recognizes the basic linkages between quality of governance, service delivery and poverty reduction. The state of governance reports methodology was finalized after extensive consultations with a broad spectrum of people. The draft methodology was presented to a wide range of audience at a national level workshop on March 27, 2009 where representatives from academia, civil society, research bodies, senior officers from Central Line Ministries, State Government Representatives (where the pilot was done), Planning Commission and multilateral agencies were invited. The framework for the State of Governance Report has been submitted for approval of the Government. After the approval the framework can be presented to the Core Group on Administrative Reforms (CGAR) and Planning Commission.

After approval of the report Planning Commission or DAR&PG can take up the study in some or all the States. This exercise would help in identifying the gaps in selection sources in various states.


A study for developing Internal Control and Risk Management (ICRM) framework to manage risk in Ministries/Departments and their subordinate offices was initiated, based on the suggestion of C&AG and PMO, as part of the DFID Programme. The Consultants for the project were M/s Ernst & Young Ltd. (E&Y). The objective is to incorporate risk management and internal control procedures in the process of conceptualization and implementation of government schemes in order to remove and effectively manage the bottlenecks/ issues faced by relevant ministries and agencies in achieving the goals/ purposes for which the schemes are formulated. The ICRM framework will ensure the effective realization of the objectives set forth for any scheme. This is done by (i) identifying the potential concerns/ risks/impediments for successful implementation of a scheme and (ii) designing and operationalizing adequate measures to address these risks/concerns. The activities defined in the ICRM process are: (i) risk assessment (risk identification as well as risk prioritization), (ii) risk treatment/mitigation, (iii) risk monitoring, (iv) risk assurance and (v) risk re-assessment. As part of the study, M/s Ernst & Young, looked at the best practices of various countries.

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