The welfare state in liberal as well as social democracies ran into natural or contrived crisis of human cupidities and fiscal overload by the end of the 1970s or 1980s. Political liberalism consequently came to be gradually supplanted by neoliberalism as the major economic reform in advanced bourgeois democracies. It was subsequently prescribed and virtually forced upon the states in the capitalist peripheries as well by multilateral agencies of global capitalism such as IMF, World Bank and WTO. The states in the global South, including India, afflicted by neo-feudal rent-seeking by the political and bureaucratic classes, could not stem or resist the neoliberal tide. Moreover, the fall of the Berlin Wall, collapse of the USSR and the end of the Cold War by the late 1980s witnessed the onset of globalisation. One of the important manifestations of these parameter-altering events of global significance in political economy and public administration was the shift of emphasis from government to governance. Government is an esoteric concept, focusing mainly on the internal institutional complex of the state (e.g., horizontal separation of powers among the legislature, executive and judiciary; vertical devolutionary or federal division of powers; relationship between elected or appointed officials, etc.). Governance, on the other hand, is a new concept, focusing additionally on the external networks of the political system interlinking the government, the market and the civil society. Theorists of governance are busy hypothesising a shift in the assumptions underlying the process of governing and postulating the appropriate relationships between states, markets and civil societies. In this context, Hardiman (2012, Chapter 16) focuses on three areas in which redesigning state institutions is discernible: (a) the redrawing of the boundaries of state power and public administration in the context of privatisation, regulation and devolved governance as parts of the new strategy known as new public management (NPM); (b) the trend of delegated governance to institutions autonomous from the government aiming at policy objectivity, technical competence and non-majoritarianism and (c) trend towards issues of autonomous financial and monetary regulation. The dilemma of a proper relationship between autonomy versus accountability in the new network governance seems to have so far received inadequate attention in this emergent scholarly literature. Neoliberalism primarily came to resolve the contradictions of what it pejoratively called 'populist democracy'. In the process, it privileged capitalist accumulation by weakening democratic control of capitalism. It turned oblivious of capitalism's own internal contradictions and self-destructive tendencies highlighted by Marx