Transforming governance by asking 'why'

As India enters the next phase of governance reforms, the key question is what they should target to go beyond past achievements.

- AJAY KUMAR

Over the last decade, more than 40,000 ease-of-doing-business measures -from the Single Window Interface and e-Sanchit to faster insolvency resolution and online tax filing - have significantly reduced time, costs, and procedural complexity. Yet a contrasting picture emerges. With 9,420 new compliances added in 2023 alone (TeamLease), further reforms are needed to create a truly globally competitive and efficient business environment.

Why do new compliance requirements keep emerging despite efforts to reduce them? A key reason lies in the inherent tension within governance: Bureaucracies naturally favour continuity over change and control over deregulation. The common reflex -"The rules do not permit it" - often overlooks the fact that laws exist to serve society. Laws are meant for people, not people for laws. As technology advances and global competition intensifies, continuous review of rules becomes essential. Nations that reimagine procedures and embrace innovation emerge more efficient and competitive.

A more fundamental explanation lies in the purpose of reforms. They fall into three categories, depending on the question they address: "Why" a rule exists, "How" it is implemented, and "What" it actually means. Most reforms focus on execution (how) or compliance (what), rarely questioning the rule's underlying purpose (why). Without understanding why a rule exists - what public good it serves - changes remain superficial and incremental. Probing purpose is central, as formalised in Toyota's founder Sakichi Toyoda's "Five Whys" method, which identifies systemic flaws rather than surface symptoms, enabling lasting, meaningful reform.