Panel Organizer:

Dr. Soumen Bagchi, Advisor, USAID REFORM Project

Abstract

Decentralisation has multi-pronged socio- economic consequences towards (i) mobilization and allocation of public resources, (ii) basic service delivery, (iii) inter- regional disparity, (iv) macroeconomic stability, (v) income distribution etc. The resultant consequence, however, depends largely on the absorptive capacity of the benefits of decentralization of a particular region. The aim of the panel is to discuss and disseminate the empirical and theoretical findings of the studies of the various socio- economic implications of decentralization, both good and bad in the context of developing countries, particularly in the countries of the South Asian region. Papers, both focusing on the theoretical discussions as well as empirical analysis, are sought that would analyse on the one hand the politics and economics of the process of decentralization and on the other hand the impact of decentralization on the economy and society of the developing countries in general and South- Asian nations in particular from different perspectives.

While reviewing the overall process of democratic decentralization in the countries in South Asia, the investigations in the papers are expected to focus specifically on the various implications of decentralization. The papers could focus on the implications in terms of  strengthening local decision making, improved local resource mobilization, cost- effectiveness and equity in service delivery, inter- regional equality vis-à-vis disparity, financing of basic services, shift in the inter- governmental transfer mechanism etc. Papers could be a comparative analysis of some of the South Asian nations or in the context of a particular nation in the region. Empirical Analysis could be from an overall country perspective looking at the macro picture based on secondary data sources or of a particular region in a country with specific case study based on field data. Papers focusing on cross country comparisons of some of the transition economies of the Central Asia with the South Asian countries are also welcome. 

 Nitu Singh, Jawaharlal Nehru University, Centre for social medicine and community  health, school of social sciences New Delhi, India
Decentralization and Development: An Inquiry into the Role of Local Caste, Class and Gender Relations

Many developing countries started implementing decentralization policies as a strategy for development since 1990s. As elsewhere in India also decentralization polices are implemented with an unrealistic dream of changing societies dominated by an authoritarian and patronage politics. But most often these changes rely on the notions of development, the concept of empowerment, the nature of participation embedded in the programmes and it extent matters as far as the success of these policies are concerned. The proposed study intends to understand the process of decentralization in the state of Bihar, India. Further the study seeks to understand the nature and extent of participation of women, dalits and other lower castes in electoral politics, since the decentralized governance gave more space for a democratic elections. Moreover it looks into the developmental activities carried out as part of decentralization policies in order to understand the notions of development articulated through new policies.

In order to explore, a micro level case study of Hussepur Gram Panchayat in Amnour Block of Saran district is conducted. It is observed that the caste, class, gender and power relations in the society is re-emphasized in the course of decentralization rather than changing it for the social upliftment though there is a provision of transfer of political and financial powers  in favor of the most disadvantaged sections and to the lowest political units. The study reveals the role of developmental policies in developing a lower level political unit while questioning the theoretical assumptions of decentralization polices which is implemented in India and many other developing countries in general.

Rita Afsar, University of Western Australia, Bangladesh Institute of Development Studies, Crawley, Bangladesh

Poverty, Equality and Challenges of Pro-poor Governance in Bangladesh

Social and economic well-being of a country depends on (among other factors) a well-functioning state and high cross-cutting civic management complementing each other, and pro poor and responsive governance. The whole issue of decentralisation has been highly sensitive and politically thorny. Although the country proudly presents a strategic paper on poverty reduction, popularly known as PRS, which has rightly emphasised on the need for pro-poor governance. However, the whole issue of decetralisation is missing or subsumed under empowering local government institution (LGI). The country has the long tradition of NGO activities and NGO often operate to substitute rather than complement the weak and heavily controlled LGIs with respect to poverty alleviation. They are able to cope with immediate poverty problems but are unable to influence a responsive governance culture, a precondition for pro-poor governance.

The major challenge for good governance is to how to transform patronized politics to pro-poor political ideology. In the Bangladeshi context where on the one hand, land is gradually losing importance in determining the social hierarchy and economic class. On the other, ideological commitments are not always forthcoming, formation of social capital must be envisaged as a major strategy for ensuring accountability and participation. Also the need of collective action is gaining ascendancy not only at the local and national levels but also at the global level given that poverty is global 'bad'. The paper first argues why decentralisation is needed for ensuring pro-poor governance in the country from the review of secondary sources and macro-level data. It also seeks to examine critical issues of poverty and good governance from a thorough review of secondary materials on different sectors with particular focus on social capital, collective action and governance in Bangladesh. The author's recent study on social capital in which she examined how social capital and collective action can affect the well-being of individuals and households in rural Bangladesh, and how NGOs promote\utilize social capital for poverty alleviation will also be used as the primary data source.

Mohanan Bhaskaran Pillai, Gandhigram Rural Institute, Dept of Political Science & Development Administration, Tamil Nadu, India

The Political Economy of Decentralisation in Kerala, India

Democratic Decentralisation got a fresh impetus with the 73rd and 74th amendments to the Indian Constitution in 1992.  These constitutional amendments and conformity Acts in the Indian States refurbished the federal set up of India by adding a third structure at the local level.

However, the efforts to decentralise power and finance to local bodies are not on a uniform scale through out India.  States like Kerala, Karnataka, West Bengal and Madhya Pradesh have gone ahead of other States in devolving powers and functions to the local governments.  Of these Kerala is far ahead of others in strengthening local body institutions by way of democratic decentralisation.  The CP I(M) controlled Left Democratic front (LDF) Government in Kerala in 1996 decided to devolve powers, functions and finance in an unprecedented way.  Local bodies have been strengthened through democratic decentralisation based on CPI (M)'s assessment of the utility of local bodies as engine of economic growth.   The CPI (M) perceived that local governments could effectively be used to overcome economic stagnation in the traditional sector of the economy; it could also help developing a local market.  This left approach to decentralisation attracted international attention particularly in the context of globalisation vis-à-vis decentralisation. 

In 2001 general elections to the state legislative assembly the LDF was voted out of power and Congress (I) led United Democratic Front (UDF) came to power.  The UDF effected drastic changes in the theory and practice of decentralisation as implemented by the previous left government.  The UDF approach to decentralisation is perfectly in accordance with the neo-liberal perspective.  Therefore the UDF government has created any number of new structures at the grass roots, parallel to local governments for service delivery.  Most of these structures have been created on Public-private/civil society partnership and run on substantial financial and logistical support from multilateral agencies like the Asian Development Bank.

The Left-right divide in perspectives and approaches on decentralisation in Kerala has enlarged the sphere of political society and virtually eliminated the civil society in this part of India.

Soumyadip Chattopadhyay, Uluberia College, Kolkata, India

Decentralised Urban Governance in West Bengal: Implications for Participatory Governance, Resource Mobilisation and Service Delivery

The municipal governments in India have encountered increasing demographic and social pressures in recent years. The pace of urbanisation, albeit, modest in nature in the recent years, has been creating serious problems for the provisions of urban infrastructure in general and urban basic services in particular. The scenario has worsened in the context of growth of slums and squatter settlements in various cities. Moreover, the urban areas appear to be the cynosure for investment - domestic as well as international - as a result of the adoption of the New Economic Policy that focuses on liberalization, fiscal adjustment, and financial sector reform. To reap the benefits of these trends, it is essential to achieve a world-class urban system, which, in turn, depends on attaining efficiency and equity in the delivery and financing of urban infrastructure. The states' decrepit financial positions as well as the institutional fabric of most municipal governments exacerbate the problem.
In recent years, the Central Government, a number of state governments and several urban local bodies have embarked upon various reforms that would facilitate sustainable development of urban infrastructure in India. The 74th Constitutional Amendment Act (CAA) 1992, provisions of which are directly relating to the process of decentralisation, recognises the principle of local self-government and offers the constitutional recognition to the urban local government. Hence, the pertinent question is how far this constitutional amendment is successful.
Against this background, the paper, with the help of several indicators relating to institutional, financial and service delivery performances of the urban local bodies, will try to evaluate the process and progress of decentralised urban governance in West Bengal (one of the states in India with its rich history of municipal reform even before the advent of the 74th CAA) in the wake of 74th CAA and it's implications for participatory governance, resource mobilisation and delivery of urban basic services.

Sony Pelissery, University of Oxford, St Cross College, Oxford, UK

Interaction of bureaucrats and politicians in decentralied contexts

A good amount of independence of bureaucrats from the politicians is required if decentralisation has to be successful. This independence has been lacking in strong societies and results in a blurred boundary between state and society. Therefore, to analyse the effectiveness of the decentralisation, the nature of interaction between lower level bureaucrats, who are appointed, and local politicians, who are elected, becomes a very important tool. Bureaucrats are experts with little direct accountability to the people. Local politicians have legitimacy, as they represent the poltical voice, and information advantage. In such a context, decentralisation acts as mechanism to generate variety of local politicians, representing various social identities. As the institutional capacity of the state is limited, the political economy is organised around the social identities of these leaders and the groups they represent. This critical issue is analysed using a developmental programme in India.

Employment Guarantee Scheme (EGS) of the state of Maharashtra is one of the well known development programmes from South Asia. Though EGS is not proclaimed as a decentralised programme, its various features reflect decentralised administration since most of the decisions on EGS are taken at the district level. The quality of these decisions are often unexamined. This study shows that political expediency at the local level affects the quality of the decisions in terms of selection of projects. Thus, institutional capacity is reflected in the quality of the assets created through EGS programme. The study has policy implications for the public works programme that is scheduled to begin at national level.