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Tue, Apr 23 2013. 08 29 PM IST

The forthcoming anniversary of the panchayati raj is an apt

enough moment to reflect on the experience of local

governments and als o acknowledge the emerging winds of 

change. Photo: Priyanka Parashar/Mint

Panchayati raj: Key to good governance and inclusionIt’s obvious that Indian experience with local governance is not what it should have been, but a change is underway

New Delhi: Later this week, the country will celebrate the 20thanniversary of the constitutional amendments that made it

mandatory for the creation of panchayats—the village-level bodies

that deliver self-governance. Most may not be aware that this could

well have been the eve of its 25th anniversary, but for the three-vote

defeat that the amendments, proposed by Rajiv Gandhi in 1989,

suffered in the Rajya Sabha. The narrative of the defeat of the original

amendm ents captures the chequered progress that India has had

with sel f-governance, a process that predates the British colonization

of India.

Given the new-found enthusiasm for inclus ion and the near collapse

of governance, particularly at the centre, the forthcoming anniversary

is an apt enough moment to reflect on the experience of local

governments and als o acknowledge the emerging winds of change

—inspired by Aadhaar-based di rect benefits transfer and the new

instruments of accountability such as the right to information—that

may, despite trenchant resis tance, yet help realize the cherished

dream of our founding fathers to empower from below.

 A brill iant opening essay (introducing a collection of articles on local

governments published in Economic and Political Weekly ) byT.R. Raghunandan, former joint s ecretary in the ministry of rural

development and a champion of local governments, points out that it was Mahatma Gandhi’s desire that the entire edifice of independent

India’s dem ocracy be based “upon one popular election to the village panchayat, indirect elections from panchayats to s tate ass embl ies,

and from s tate assem blies to the Parliament”. The fact that we are debating this today sugges ts that this radical idea of the Father of the

Nation was quietly shelved.

While the idea of panchayats did eventually find mention in the Constitution of India, their form and substance were left largely to the

discretionary powers of the state governments, till the amendments in 1993. The movement got off to a heady start when the then prime

minister, Jawaharlal Nehru, launched it in Nagaur, Rajasthan, on 2 October 1959 with his usual inspi rational speech: “In political life,

everyone has a vote; in economic matters, everyone has equal opportunities; in our panchayats als o everyone should be considered equal;

there should be no dis tinction between man and wom an, high and low.”

However, two decades later, the movement was floundering and none of these objectives had been realized, till the committee on

panchayati raj ins titutions—the Ashok Mehta comm ittee—sought to give a new thrust and recommended in 1978 that constitutional status

be accorded to panchayats—a propos al that Gandhi embraced but could not effect.

Reflecting his frustration at running into political res istance in the Rajya Sabha in May 1989 and looking to swing s upport, Rajiv Gandhi

said, “These Bills constitute the most s ignificant systemic transformation in the governance of the Indian polity since the constitution

entered into force—not only instruments for bringing democracy and devolution for every chaupal and every chabutra, to every aangan and

every dalan. They are also a charter for ending bureaucratic oppress ion, technocratic tyranny, gross inefficiency, bribery, nepotism ,

corruption, and the million other malfeasances that affect the poor of our villages, towns and cities.” (Ironical that 24 years later, despite the

constitutional amendments providing ins titutional status to panchayats, his son and political heir Rahul Gandhi rails very much on the

same ailments of crony capitalism; guess some things simply don’t change.)

Disconcerting yes, but a series of new developments suggest that change that could potentially empower the local bodies and thereby alter 

their political relationship and their existing dependence on the top two tiers—the union and the states—is underway.

 A sm all s tep was initiated in 2010 by the 13th Finance Commiss ion chaired by Vijay Kelkar to launch the third tier of government,

panchayats and urban bodies, on the path of fiscal independence; it added around 2.5% (the proportion varies annually) to the divisib le

pool of resources between the centre and s tates, but earmarked it for local bodies. “Taking into account the demand of local bodies thatthey be allowed to benefit from the buoyancy of central taxes and the constitutional des ign of s upplementing the resources of panchayats

and municipalities through grants-in-aid, we recommend that local bodies be transferred a percentage of the divisible pool of taxes (over 

and above the share of the states), as s tipulated by us,” the commiss ion said.

While clearly much more needs to be done here, it is als o heartening to note that the proposal to move to direct benefits transfer would cut

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at the innards of the present delivery system that vests discretion (and thereby creates the circums tances for fostering corruption,

som ething that Gandhi flagged) in the hands of various intermediaries . At the moment, it is a work in progress, but over the next five years, it

should gradually gain mom entum and further alter the changing nature of the relationship between the top and bottom tiers of governance.

 At the same time, the rapid growth of urbanization and influx of migrants overflowing with aspirations is forcing greater accountabili ty.

Officially, about 33% of India is class ified to be living in urban areas; however, if we take into account the so-called census towns (that

mim ic towns, but are overgrown villages governed by village-level bodies), the proportion is closer to 50%. Through the use of ins truments

such as the Right to Information, people are increasingly maintaining a closer s crutiny of government programm es and obviously their 

elected representative.

In the final analysis , it is obvious that the Indian experience with local governance is not what it should have been. The good news is that

change is underway; at the least, we are seeing the beginning of the end of busines s as usual.

 Anil Padm anab han is deputy managing editor of Mint and writes every week on the intersection of politics and economics. Comments are

welcome at capitalcalculus@livemint.com