prof. dinesh mehta cept university, ahmedabad, india
TRANSCRIPT
Prof. Dinesh MehtaCEPT University, Ahmedabad, INDIA
The ContextDecentralization and devolution of
governmental functions to the local level has been accepted by most governments
Empowering local governments is seen as a means for rapid economic growth
Increasing social divide, poverty and environmental deterioration can be minimised when governments are closer to people
The Aberdeen Agenda: Commonwealth Principles on Good Practice for Local Democracy and Good Governance
Constitutional and legal recognition
Ability to elect representatives
Partnership between spheres
Appropriate legal powers
Participation
TransparencySubject to scrutinyInclusivenessAdequate resourcesEquitable service
deliveryCommitment to
capacity development
Open accountability
Source : Joint Annual Review of Decentralisation 2004, Government of Uganda; Modified from Jütting et. Al.4
DECENTRALISATION
Poverty Reduction / Better Lives
POLITICAL MOTIVATION
POWER SHARINGINCREASED STABILITY
MORE POPULAR
PARTICIPATION
LESSVULNERABILITY
VOICE
ECONOMIC MOTIVATION
EFFICIENCY GAINS
EFFECTIVENESSBETTER TARGETING
IMPROVED / INCREASED ACCESS to SERVICES
Rationale for Empowering Local Governments
Decentralisation and inter governmental relationsThe term "decentralization" embraces a variety of
concepts- Political, administrative, fiscal and market decentralization
Political decentralisation – democratic decentralisation.
Administrative decentralisation-three major forms of administrative decentralization -- deconcentration, delegation, and devolution
Fiscal Decentralisation is a core component of decentralization
Market Decentralisation –private sector participation, deregulation_
Aberdeen Agenda
India Pakistan Sri Lanka Bangladesh Maldives
Constitutional and legal recognition
y Y Y Y y
The ability to elect local representatives
Not currently Not currently
Partnerships between spheres of Government
There is open dialogue. No organised local government voice
There are informal local government associations in four provinces, which are currently playing a lobbying role.
Provincial Chief Ministers hold regular meetings. There is a local government association although its role in formal intergovernmental relations is limited.
There is dialogue between the Upazila, district, divisional level administration and national departments.
The presidents of each atoll, island and city council maintain dialogue.
Aberdeen Agenda
India Pakistan Sri Lanka Bangladesh Maldives
Defined legislative framework
Each state has its own local government legislation
The local government ordinance 2001. The Baluchistan government Act in 2010.
Provincial councils act 1987; Urban councils ordinance 1939; Municipal councils ordinance 1947; Pradeshiya Sabhas Act No. 15 1988
The Hill district local government Parishad Act 1989; The Zila Parishad Act 2000; The local government (pourashava) Ordinance 2008; The local government (union parishad) ordinance 2008; The local government (upazila parishad) ordinance 2008; The local government City Corporation ordinance 2008
The main legislation regulating local government is the Decentralisation Act 2010 and the Local Council Election Act 2010.
India: 73rd and 74th constitutional amendmentsGranted constitutional status to the third tier of
local government – political, functional, fiscal decentralisationElected local governments; reservation for women
(one-third, now 50% in some states), reservation for minorities,Gram sabha, ward committes (area sabha),
Transfer of functions - List of 29 items in Eleventh Schedule (Rural) and 18 items under 12th Schedule (urban)
Creation of District Planning Committee and Metropolitan Planning Committee
State Finance Commissions
Financing: Typical Problems• Funding: local government funding is often:– Quite inadequate (unfunded mandate)– Overly rigid (tied), so defeating the very local
discretion that justifies decentralizing– Inequitably allocated between LGs– Delayed or unreliable– Overly controlled by higher level (eg under
single treasury)– Associated with overly rigid financial
regulations (eg on procurement)– Without incentives for good performance
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Finance CommissionCentral Finance Commission – Article 280, of
the Constitution of India provides for establishment of a Finance CommissionDistribution of total income from taxes of the
Government (the Central and State Government) between the Union and the States as per there respective contribution towards of the taxes.
Factors based on which the government should allocate the grant-in-aid of the revenues to the States of India out of consolidated fund of India.
State Finance CommissionThe principles which should govern
The distribution between the State and the Panchayats (Municipalities)of the net proceeds of the taxes, duties, tolls and fees leviable by the State;
The determination of the taxes, duties, tolls and fees which may be assigned as, or appropriated by, the Panchayats (municipalities);
The grants-in-aid to the Panchayats (municipalities) from the Consolidated Fund of the State;
The measures needed to improve the financial position of the Panchayats (municipalities);
Any other matter referred to the Finance Commission by the Governor in the interests of sound finance of the Panchayats (municipalities).
Inter-governmental relation
Source: Dr. Louis A. Picard, University of Pittsburgh
Autonomy of Local governments
tendency of central government to proceed with caution in devolving responsibilities to local governmentsIndia – in theory huge devolution (11th
schedule 29 functions; 12th schedule 18 functions) in practice very few functions are devolved
Roles and responsibilities among different spheres of governments
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LOCAL Government
State and National
Governments
Utility/ Local Government Associations
INTERNAL ACCOUNTABILIT
Y
DOWNWARD ACCOUNTABILIT
Y
Citizens and Consumers
Performance benchmarking, Self-regulation
Grievance redressal, report cards
Public dissemination
Reform-linked funding,
Regulatory compliance
Internal accountability
for performance results
Accountability for
regular operations
UPWARD ACCOUNTABILIT
Y
2. Structures of Accountability
Deconstructing local “capacity” problemsTendency to state that Local Governments have no
capacity
There are indeed “inherent” problems of capacity but they are exaggerated
Many capacity constraints are externally imposed:Inadequate FinancingUnclear roles, functions and expectationsUnclear procedures and poor guidanceWeak institutional arrangements for
accountability and coordination among different levels
Weak monitoring & ineffective incentives/sanctions for performance
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strengthening inter-governmental relations