State Restructuring and Federalism

1. State Restructuring and Federalism Balananda Paudel

3. Why federalism in Nepal? • To come together? • To hold together? • Big population? • Big geography? • Is it ends? NO

4. Why federalism in Nepal? • To federalize state power? • To resolve conflict? • To manage diversity? • To make system inclusive? • Is it means? • To make governance effective and efficient? YES

5. Drivers of Federalism in Nepal • Diversity • Inclusion • Conflict management • Effectiveness & efficiency

6. Arguments against Federalism • Expensive • Complexity of the system • Lack of capacity • Dilemma in public regarding service delivery • Blame game • Conflict

7. Federalism -Origin • Federalism is derived from 'Federation‘ Originating from a Latin word  foedus = a treaty or agreement. Meaning, The instrument by which a federation is brought about in a treaty or agreement between independent governments, national/central which they agree to create and hence created a new state to which each sovereign state surrender their sovereignty and agree to become its sovereign parts.

8. Asymmetric and Symmetric Federalism Asymmetric: A type of federalism where constituent units have different sets of rights and obligations which are not necessarily equal. Symmetric: A type of federalism where all constituent units hold equal powers and facilities under the federal constitution.

9. Dual Federalism Limited but countable powers to the central government; foreign policy, national security and national economy, etc. All remaining powers given to federal states; resource mobilization, policy formulation, etc. Power: Central government > State but effort to balance the power. This is currently how the United States system works.

10. Cooperative Federalism • power sharing among federal, state & local government. • All works are combined to find effective solutions for the national problems. Nepal’s federal structure is perceived to be cooperative federalism.

12. संघीय स्वरुप सहकारीता सहअस्तित्व समन्वय

13. ७५३

14. संघीयता • एउटै भुगोल र एउटै जनतालाई फरक फरक बिषयमाभिन्न भिन्न तहका सरकारलेशासन गर्ने व्यवस्था नै संघीय व्यवस्था हो

15. संघीयता किन? • नजिकको शासन • समावेशिता • कार्यदक्षता • कार्य प्रभावकारीता • जवाफदेहिता • विवीधताको व्यवस्थापन

16. शासन व्यवस्था संघ • संविधान र कानुनको अधिनमा रही नेपालको शासन व्यवस्थाको सामान्य निर्देशन, नियन्त्रण र सन्चालन गर्ने अभिभारा मन्त्रीपरिषदमा हुनेछ। (७५-२) प्रदेश • संविधान र अन्य कानुनको अधिनमा रही प्रदेशको शासन व्यवस्थाको सामान्य निर्देशन, नियन्त्रण र सन्चालन गर्ने अभिभारा प्रदेश मन्त्रीपरिषदमा रहनेछ। (१६२-२) स्थानिय तह • संविधान र अन्य कानुनको अधिनमा रही गाउँपालिका र नगरपालिकाको शासन व्यवस्थाको सामान्य निर्देशन, नियन्त्रण र सन्चालन गर्ने अभिभारा गाउँ कार्यपालिका र नगर कार्यपालिकाको हुनेछ। (२१४-३)

17. राज्यको मुल संरचना तीन तहको हुने छ (५६-१) • संघ • प्रदेश र • स्थानीय तह

18. स्थानीय तह (३०६ (१) ढ) गाउँपालिका नगरपालिका र जिल्ला सभा

19. राज्य शक्तीको प्रयोग (५६-२) • संघ • प्रदेश र • स्थानीय तह

20. राज्य शक्ती (३०६-१-ज) • राज्यको कार्यपालिका, व्यवस्थापिका र न्यायपालिका सम्बन्धी अधीकार, • सो शब्दले अवशीस्ट अधिकार समेतलाई जनाउछ।

21. राज्य शक्तिको बाँडफाँड • संघ- अनुसुची- ५,७ र ९ • प्रदेश- अनुसुची- ६,७ र ९ • स्थानिय- अनुसुची- ८ र ९

23. राज्य शक्तीको बाँडफाँड अनुसुची७ अनुसुची ९

24. Principles of State Restructuring and Federalism in Nepal • Right to autonomy • Self-rule • Ending all forms of discrimination and oppression created by the feudalistic, autocratic, centralized, unitary system of governance • Protecting and promoting social and cultural solidarity, tolerance and harmony

25. Principles of State Restructuring and Federalism in Nepal • Eliminate caste based untouchability • Committed to socialism • Based on democratic norms and values • Competitive multi-party system of governance • Civil liberties • Fundamental rights • Human rights • Adult franchise • Periodic elections • Full freedom of the press • Independent impartial and competent Judiciary • Rule of law

26. Principles of State Restructuring and Federalism in Nepal • Unity in diversity by recognizing the multi-ethnic multi-lingual, multi religious, multi cultural and diverse regional characteristics • Build an egalitarian society founded on the proportional, participatory and inclusive principles • Ensure economic equality, prosperity and social justice • Eliminating discrimination based on class, caste, region, language, religion and gender

27. Ultimate Destination: Prosperous Nepal

28. State restructuring(local level) • Function • Geography • Population • Socio-Cultural Structure • Access • Resources • Geographical Continuity • conurbation

29. Principles of Restructuring(local level) • Economies of scale • Principle of subsidiarity • Principle of exception • Inclusion • Consolidation of structure on the basis of consolidation of function • Principle of representation

30. Restructuring Process • LLRC set the standards for the process • Technical committees were formed in every districts who facilitated the process • The process was participatory

31. Local level restructuring Limitations of the process: • The criteria given by the government changed at the middle of the work of the Commission • Restructuring was to be done within the boundary of the district and the province • Wards of VDCs and Municipalities were not allowed to be splited • Availability of data • Limited time frame

32. Issue 1:Size and No. of local government • Balancing functional responsibility and minimum efficient scale • Balancing scale and proximity to the people • Feeling of loss of political power

35. Issue 2:Interrelation between Federation, State and Local Level • Hierarchical versus co-operative • Are local governments a hierarchical units of the provincial level or federation? • According to the constitution, each level has its own functions and responsibilities. • The relations between the federation, states and local level shall be based on the principles of cooperation, co-existence and co-ordination

36. Issue 3:Determination of No. and Boundaries of Special, Protected and Autonomous Regions • Criteria set by the government were changed amidst the work • No. and boundaries of rural municipalities and municipalities were not public even during the last phases of the tenure of the commission • Availability of data posed a major constraint • Minorities and marginalized communities were not rigidly defined • The restructuring was to be done within the boundary of local level, district and province

37. Issue 3:Determination of No. and Boundaries of Special, Protected and Autonomous Regions • Boundary based structure and non-territorial structure • Exclusive structure and proportional inclusive principle • Cultural, social and economic rights of the structure was ambiguous

38. Issue 4:Separation of powers and checks and balances • Executive, legislative and judicial wing of the local government shall be led by the same representative • The functioning and regulation of the local bodies comes under the purview of the following constitutional bodies: • Commission for the Investigation of Abuse of Authority (CIAA) • Auditor General ( Regularity, economy, efficiency, effectiveness and the propriety) • Public Service Commission

39. Issue 5:Clarity on Functional Assignment -(i) • Concurrent functions and exclusive functions • Exclusive functions at different level eg: Tourism fee

40. Allocation of power Schedule 7 Schedule 9

41. Federation • Province • Local EDUCATION HEALTH AGRICULTURE Basic and Secondary Education Basic Health Management of Agriculture Extension

42. Issue 5:Clarity on Functional Assignment -(ii) • Fundamental rights • International conventions • Directive principles, policies and obligations of the state

43. Issue 6:Fiscal Federalism • Expenditure assignment • Revenue assignment • Inter-governmental fiscal transfer (Basis and Modality) • Equalization grant • Matching grant • Conditional grant • Special grant • Borrowing • Fiscal commission

44. Issue 7:Transitional Management ( Adjustment of Civil Servants) • Nepal government can adjust civil servants at federal, state and local level (302-2) • Employee’s interest and institution’s interest • Issue of mobility of civil servants • Issue of benefits • Issue of previous local level staff and civil servants • Issue of knowledge, skill and attitude of employees • Capacity development programs No “ If and But”

45. Issue 7:Transition Management(Handover and take over) • Physical facilities • Programs and projects • Process/ Procedure • Out standings • Audit irregularities • Handover to the elected government

46. Issue 7:Transition Management(Continuity of service and delivery) • Implemented by the government • From headquarters • From ward center

47. Issue 7:Transition Management(Clarity about Ward Service Centre) • This is service delivery unit not the governing unit • The role of ward committee regarding ward service Centre • Functions of Ward Service Centre • Service delivery unit below the Ward Service Centre

48. Issue 7:Transition Management(Risk Management) • Political risk • Contested political environment • Adversarial politics • Administrative risk • Poor capacity • Resistance • Inertia/ Legacy • Operational risk • Proper sequencing of transition • Lack of skill

49. Issue 8:Service Delivery Improvement

50. Issue 8:Service Delivery Improvement • Public administration cannot be transformed overnight • Multi-skilled and multi-tasked staffing • Smart civil servant • Efficient staffing • Continuous training • Training for all