Hindu Editorial Analysis : 23-August-2023

In recent news, the Lok Sabha passed the Indian Institutes of Management (Amendment) Bill, 2023, sparking discussions about the future of these prestigious institutions. The Indian Institutes of Management (IIMs) are renowned for providing world-class education in management. This essay delves into the significance of the IIMs, the need for the amendment, and the key provisions of the bill. It also addresses concerns regarding autonomy and government interference and offers counterarguments to this perspective.

The Significance of IIMs
  1. World-Class Institutions: IIMs are globally recognized centers of excellence that have earned India recognition on the international education map.
  2. Autonomous Bodies: Operating as autonomous societies under the Societies Act, IIMs have been granting Post Graduate Diplomas and Fellow Programmes in Management due to restrictions on awarding degrees.
The IIM Act of 2017
  1. Institution of National Importance: The IIM Act of 2017 declared IIMs as institutions of national importance. It aimed to enhance governance and achieve global standards in management and research.
Need for the Amendment
  1. Governance Void: The IIM Act of 2017 granted significant autonomy to IIMs, but many institutions failed to conduct periodic independent reviews, creating a governance vacuum.
  2. Unchecked Director Powers: The Act unintentionally allowed directors of IIMs to wield unchecked power without adequate oversight.
Key Provisions of the IIM (Amendment) Bill, 2023
  1. President as Visitor: The bill designates the President of India as the Visitor for all IIMs, enhancing presidential involvement.
  2. Appointment Process: The amendment introduces presidential nomination for the chairperson and a visitor-nominated member in the director selection committee.
  3. Search Committee Modification: The bill reduces the number of eminent members in the search committee from three to two and adds another member nominated by the Visitor.
  4. Termination of Director: The Visitor’s prior approval is required for director removal, and the Chairperson of the Board will be nominated by the Visitor.
  5. Inquiries Against IIMs: The bill grants the Visitor the power to initiate inquiries into IIMs and issue binding directions based on inquiry reports.
  6. Dissolving Board: Conditions and procedures for dissolving or suspending an Institute’s Board will be prescribed by the central government.
  7. Coordination Forum Change: The Chairperson of the Coordination Forum will now be nominated by the Visitor.
Concerns About Autonomy and Interference
  1. Excessive Government Interference: Critics argue that the involvement of the President, presumably acting on government advice, may lead to excessive government interference in IIM affairs.
  2. Autonomy Dilution: Concerns are raised about whether the bill may dilute the autonomy of IIMs in the guise of accountability.
Counterarguments and the Way Ahead
  1. Global Practice: Government involvement in educational institutions is not necessarily detrimental. For example, state-controlled universities in California with government representation on boards are globally renowned.
  2. IITs as a Model: Government control has not hindered the success of Indian Institutes of Technology (IITs), which are highly regarded.
  3. Democratic Accountability: Public institutions like IIMs should be subject to democratic accountability to ensure transparency and fairness.
Why In News

The Lok Sabha recently passed the Indian Institutes of Management (Amendment) Bill, 2023, aimed at enhancing the autonomy and global competitiveness of India’s premier management institutions. This bill represents a significant step towards empowering these institutes to adapt to the evolving demands of the business and management landscape, ensuring they continue to produce top-notch leaders for the nation’s economic growth.

MCQs about Balancing Autonomy and Accountability in IIMs

  1. Who is designated as the “Visitor” for all Indian Institutes of Management (IIMs) under the 2023 Amendment Bill?
    A. Prime Minister of India
    B. President of India
    C. Chief Justice of India
    D. Chairman of the UGC
    Correct Answer: B. President of India
    Explanation: The 2023 Amendment Bill designates the President of India as the “Visitor” for all IIMs.
  2. What does the IIM (Amendment) Bill, 2023 propose regarding the appointment of the chairperson and director of IIMs?
    A. The Visitor nominates the chairperson, and the director is elected by the faculty.
    B. The Board of Governors appoints both the chairperson and director.
    C. The Director is nominated by the Visitor, while the chairperson is selected by the Search Committee.
    D. The Director is appointed by the central government, and the chairperson is nominated by the President.
    Correct Answer: C. The Director is nominated by the Visitor, while the chairperson is selected by the Search Committee.
    Explanation: The 2023 Amendment Bill proposes that the Visitor nominates the chairperson, and the director’s selection committee includes a member nominated by the Visitor.
  3. What is one counterargument mentioned in the essay regarding government involvement in educational institutions like IIMs?
    A. Government control has always led to a decline in the quality of education.
    B. The IIMs have failed to thrive under government control.
    C. State-controlled universities in California serve as a successful example.
    D. Government involvement in IIMs has never been beneficial.
    Correct Answer: C. State-controlled universities in California serve as a successful example.
    Explanation: The example of state-controlled universities in California as a successful model to counter the argument that government involvement in educational institutions is always detrimental.

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