Institutional Inertia, Market Shifts, and the Limits of Design
This panel explored layered failures within government schemes, social enterprises, and cooperative models revealing how even well-intentioned, well-funded efforts falter in execution. The panel was opened with reflections on Employment Guarantee Scheme and how entrenched systems, legacy frameworks, and contractor interference slowed the implementation of MGNREGA. Through trial, observation, and incremental reform, his team eventually streamlined operations but not without grappling with deep-rooted inertia.
The panelist shared lessons from a medicinal plant enterprise that failed despite policy alignment and rich indigenous knowledge. From herbal supply chains to primary healthcare formulations, both interventions fell short due to lack of traction and shifting market dynamics. Anish Kumar reflected on the over-democratization of a women-led food enterprise consortium in Kerala, where the principle of rotating leadership undermined business continuity, resulting in operational breakdowns and mistrust.
The conversation spanned central-state planning gaps, rigid systems, market misreads, and excessive idealism in collective models. Dr. Shagun Sabrawal and Liby Johnson contributed further insights into how externally imposed structures and misaligned incentives can lead even promising programs into disrepair. From the lessons shared, one thing becomes clear – designing for durability and responsiveness is critical, and even the most progressive programs can fail if they don’t evolve alongside communities and markets.
