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PRESENTED BY: KUMAR KRISHNA MOHANROLL NO -11/MBA/38

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DEFINITION

Decentralization is the transfer of power

and resources from national governments to

subnational governments or to thesubnational administrative units of the

national government.

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DEFINITION

According to Abraham Lincon

Democracy is a Government By the people

,for the people and By the people.

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Definition:

Decentralization is the transfer of power and

resources from national governments to

subnational governments or to thesubnational administrative units of the

national government.

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Democratic decentralization is the

development of reciprocal relationships

between central and local governments andbetween local governments and citizens. It

addresses the power to develop and

implement policy, the extension of

democratic processes to lower levels ofgovernment, and measures to ensure that

democracy is sustainable.

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Democratization is an essential part of

sustainable development because it

facilitates the protection of:-

Human rights and public sector

accountability.

informed participation and,

public sector accountability.

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Activities and Practices

Concepts and Issues

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Country Programs Improving the Legal-Regulatory Framework

for Decentralization

Building/Strengthening Local GovernmentAssociations

Fiscal Decentralization and Management

Promoting Local Economic Development

Improving Local Government Accountabilityto Civil Society

Improving Local Public Service Delivery

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Dimensions ofDecentralization

AdministrativeTransfer of functional responsibilities

Change of civil service systems

Fiscal

Transfer of funds and/or revenue andexpenditure authorities

Political

Transfer of political authority

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Devolution The creation or strengthening ofelected local governments.

Deconcentration The transfer of decisionmaking to a lower level administrative unit

of the central government.

Delegation The transfer of managerialresponsibility for a specifically definedfunction outside the central government

structure.

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Multiple sub-national jurisdictions

Mobile persons and/or taxable assets

Varying preferences for public services and

taxes

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Superior revelation of citizen preferences

Local governments and citizens can learn

from the experience of other, nearby or

similar governments Improved allocative efficiency in public

service provision

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Decentralization with the following

characteristics:

A hierarchy of governments, each with a

defined scope of authority; Autonomy of each level of government is self

enforcing.

Sub-national governments have primary

regulatory responsibility over the economy

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A common, nation-wide market is insured;

Sub-national governments are subject to a

hard budget constraint

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Abolish the functions of the DRDAs and

give their money to the PRIs.

Revise the top down approach of planning so

that it is from below. To shift from tied to untied funds.

To encourage a system of maintaining a

database at all these levels.

To shift to an approval based on accounting

system.

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1. Accountability and Constitutional

Status of Local Bodies

2. Transfer of Financial Powers and

Desirable Structures of

Accountability

3. Municipal Finance Reforms4. Accountability, Accounts and

Audit

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Transparency Openness

Accountability

Probity

Inter-governmental Finance

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Tailor-made plans as per the needs ofheterogeneous regions and groups are possible.

Closer contact between government officials andlocal population is possible.

It can allow better penetration of nationalpolicies to areas remote from the nationalcapital.

It will ensure greater representation ofpolitical, religious, ethnic and tribal groups indevelopment decision-making that could lead togreater equity in allocation of resources.

Capacity of local institutions and theirmanagerial and technical skills will develop.

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Social Programs

Violence and Social Unrest

Education, Health, and Water

Poverty Alleviation

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Fostering Sustainable Development

Contributing to Monitoring of Government

Performance

Encouraging a Long-Term Perspective on

Development

Sequencing Policies, Programs, and ProjectsContributing to the Appropriate Pacing of

Reforms

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Enhancing Government Legitimacy

Promoting Economic Growth

Improving Governance and Information Flows

Adjusting Government Policies to LocalConditions

Maintaining Higher-level Influence WhenDecentralization Threatens Public Welfare.

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