INTRODUCTION

1. PANCHAYATI RAJ IN INDIAS.M. VIJAYANANDADDITIONAL SECRETARYDEPARTMENT OF RURAL DEVELOPMENTGOVERNMENT OF INDIA

2. INTRODUCTION • Origin of modern Local Governments In the aftermath of Industrial Revolution in Europe For provision of civic amenities • National Self Government versus Local Self Government a dichotonomy during the freedom struggle • Gandhian expectations and Ambedkarite fears • Missed opportunity at the time of independence

3. INTRODUCTION(contd……) • Progress of Panchayati Raj • Post-freedom • Madras Presidency model • Post-Balwantrai Mehta Committee • Rajasthan, Maharashtra, Gujarat • Post-Ashok Mehta Committee • West Bengal, Andhra Pradesh, Karnataka • Post-73rd Amendment • Only Kerala, Madhya Pradesh, Sikkim

4. INTRODUCTION (contd……) • No understanding of “Local Government” • Political • Legal • Judicial • Developmental • Economical • Statistical • Influenced by myths and fears • Anecdotal evidence • Even successes not well documented and analyzed

5. FEATURES OF THE 73RD AMENDMENT • Objectives of PRIs clarified • Social Justice • Economic Development • Mandatory 3-tier system of Rural Local Governance • 2-tier in the case of States with less than two million population • Secure tenures of Local Governments and timely elections • Reservations for women, SC and ST • Optional for OBC • Direct election for Village Panchayats/Urban Local Governments if so decided • List of subjects for devolution • But “may”

6. FEATURES OF THE 73RDAMENDMENT (contd……) FUNCTIONS OF RURAL LOCAL GOVERNMENTS • Economic Development • Agriculture including agricultural extension • Animal husbandry, dairying and poultry • Fisheries • Minor forest produce • Small Scale industries, including food processing industries • Khadi, village and cottage industries • Environmental Matters • Land improvement, implementation of land reforms, land consolidation and soil conservation • Minor irrigation, water management and watershed development • Social forestry and farm forestry

7. FEATURES OF THE 73RDAMENDMENT (contd……) • Civic Functions • Drinking water • Rural electrification, including distribution of electricity • Libraries • Cultural activities • Markets and fairs • Social welfare including welfare of the handicapped and mentally retarded • Maintenance of community assets

8. FEATURES OF THE 73RDAMENDMENT (contd……) • Human Development • Education including primary and secondary schools • Technical training and vocational education • Adult and non-formal education • Health and sanitation including hospitals, primary health centres and dispensaries • Family welfare • Women and child development

9. FEATURES OF THE 73RDAMENDMENT (contd……) • Poverty Reduction • Poverty alleviation programme • Welfare of the weaker sections in particular of the Scheduled Castes and the Scheduled Tribes • Public Distribution System

10. FEATURES OF THE 73RDAMENDMENT (contd……) FUNCTIONS OF URBAN LOCAL GOVERNMENTS •  Planning Functions • Urban planning including town planning • Regulation of land-use and construction buildings • Planning for economic and social development

11. FEATURES OF THE 73RDAMENDMENT (contd……) • Civic Functions • Fire services • Provision of urban amenities and facilities such as parks, gardens, playgrounds, etc. • Promotion of cultural, educational and aesthetic aspects • Burials and burial grounds, cremations, cremation grounds and electric crematoriums • Cattle pounds, prevention of cruelty to animals • Vital statistics including registration of births and deaths • Public amenities including street lighting, parking lots, bus stops and public conveniences • Regulation of slaughter houses and tanneries

12. FEATURES OF THE 73RDAMENDMENT (contd……) •  Poverty Alleviation • Safeguarding the interests of weaker sections of society including the handicapped and mentally retarded • Slum improvement and upgradation • Urban poverty alleviation • Environmental Services • Public health, sanitation conservancy and solid waste management • Urban forestry protection of the environment and promotion of ecological aspects

13. FEATURES OF THE 73RDAMENDMENT (contd……) •  Infrastructure • Roads and bridges • Water supply for domestic, industrial and commercial purposes •  Public Health • Public health, sanitation conservancy and solid waste management

14. FEATURES OF THE 73RD AMENDMENT (contd……) • Duty of State to create sources of revenue and devolve funds • Responsibility of State for accounts/audit • Institutional set up • State Election Commission • State Finance Commission • District Planning Committee • District Plan mentioned • Lack of clarity • Need to harmonize related legislations

15. PANCHAYATI RAJ FACTS AND FIGURES • Local Government structures in India Panchayats & Nagarpalikas 24 States 5 Union Territories Fifth Schedule Areas – Areas of 9 States APChhattisgarh GujaratHPJharkhand MP Maharashtra OrissaRajasthan Sixth Schedule Areas – Areas of AssamMeghalayaMizoramTripura Other systems established through State laws – Hill areas of ManipurNagaland DarjeelingGorkha Hill Council(Exempt from ZPs) J&K Environmentally sensitive or resource rich areas have diverse LG structures

16. PANCHAYATI RAJ FACTS AND FIGURES(contd…..) • Inclusion of people in governance: Statistics on Panchayats • 537 District Panchayats, 15,694 elected representatives (37% women 17% SC, 11% ST) • 6094 intermediate Panchayats, 1,56,609 elected representatives (37% women, 21% SC, 7%ST) • 2,33,913 Village Panchayats, 26,56,476 elected representatives (37% women, 19% SC, 12%ST) • 6000 Urban LGs with 600000 elected representatives • At the Village Panchayat level, each elected representative’s constituency comprises of about 340 people(70 families) Environmentally sensitive or resource rich areas have diverse LG structures

17. PANCHAYATI RAJ FACTS AND FIGURES(contd…..) • The Panchayats (Extension to Scheduled Areas) Act, 1996 • Specific provisions for the extension of Panchayati Raj to Fifth Schedule areas • Gram Sabhas given extensive powers to • Safeguard and preserve traditions, customs, cultural identity, community resources and customary mode of dispute resolution • Approve the plans, programmes and projects for social and economic development • Identify beneficiaries under poverty alleviation and other programmes • Authorize the issues of utilization certificates after examining the utilization of funds by the Gram Panchayat • Protect common property resources including minor forest produce • Be consulted prior to land acquisition, extraction of minerals, acquisition of land/rehabilitation • State Legislation to give primacy to tribal communities to manage their affairs in accordance with traditions and customs in strict conformity with PESA

18. WHY LOCAL GOVERNMENTS ? • CONSTITUTIONAL ARGUMENTS • Institutions of Local Self Government third tier of governance • Significance of Reforms overlooked • Often ignored by States/Centre • Not fully and consistently recognized as such by judiciary • From civic and welfare institutions to development institutions • Human Development • LED • Basic minimum needs

19. WHY LOCAL GOVERNMENTS? (Contd…) B. DEMOCRATIZATION ARGUMENTS • Most democratic • Face to face democracy • Feeder of political leadership • Nurtures a political class which understands development issues • Labs of multilevel pluralist democracy • Co-exist, co-operate and reach consensus • New politics of development • Leader with popular support • Poor marginalized groups growing in strength • Learning by seeing, by knowing, by doing • Barriers are weaker

20. WHY LOCAL GOVERNMENTS? (Contd…) • From voice to choice • Enlarging freedoms • Enhancing capabilities • Problems of democracy to be solved by greater democracy C. DEVELOPMENT ARGUMENTS • Diffused economic stimulus • Pro-poor expenditure Niche areas • Provision of basic minimum need • Programme of care and compassion • Holistic approach to problems and cross-cutting programmes • Convergence • Integration

21. WHY LOCAL GOVERNMENTS? (Contd…) • Good local models diversity • Realistic planning • No tall claims • Affordable appropriate technologies • Eking out resources • Exploiting local production possibilities • Better targeting • Improved service delivery through stronger demand and higher access • Quick outreach, faster feed back D. FISCAL ARGUMENTS • Efficiency in resource use due to focus on felt needs • Improved local resource mobilization • Contribution of kind • Sharing of expenditure

22. WHY LOCAL GOVERNMENTS? (Contd…) • Good user charge mobilizers • Less of Taxes • Community based O&M • Possibilities of basic financial reforms • Budget transparency • Accounting • Audit • Procurement E. GOOD GOVERNANCE ARGUMENTS • Participation, transparency and accountability • Zero-base advantage • New people-friendly systems • Less of conflict • Most of negotiation and consensus • More responsiveness • Possibilities for basic reforms • Reduced corruption

23. FEARS ABOUT PANCHAYATS AND POSSIBLE MITIGATION Staff systems Power to access capacity PRIs have no capacity Attitudes, skills, knowledge - training Opportunities for learning by doing

24. FEARS ABOUT PANCHAYATS AND POSSIBLE MITIGATION (contd……) Good in basic minimum needs PRIs do not understand Development Targeting of welfare NRM potential Human Development Care and compassion

25. Greater possibilities of negotiation/consensus PRIs are partisan FEARS ABOUT PANCHAYATS AND POSSIBLE MITIGATION (contd……) Naturally participatory and inclusive PRIs are liable to capture Clear rules of the game Opportunities for empowerment Levers of power are visible and within reach Politically Reservation of seats, funds Socially Game of numbers Economically Social Accountability

26. PRIs weaken the bureaucracy Gains of widening the support base FEARS ABOUT PANCHAYATS AND POSSIBLE MITIGATION (contd……) Local accountability Strength of hierarchy is lost Officers gains professionally, lose administratively PRIs are poor managers of staff Code of Conduct Management manuals Joint training

27. PRIs are messy to deal with FEARS ABOUT PANCHAYATS AND POSSIBLE MITIGATION (contd……) Can sort itself out only in time numbers Lingo and behavior of elected representatives

28. PRIs not amentable to rule based functioning Inappropriateness of existing systems FEARS ABOUT PANCHAYATS AND POSSIBLE MITIGATION (contd……) Deep structure of systems and procedures designed for centralized governance Systems based on due process Independent accountability ensuring institutions PRIs are poor record keepers IT applications Complexrecords Simplification Inadequate staff

29. PRIs politicize officialdom Office Management System FEARS ABOUT PANCHAYATS AND POSSIBLE MITIGATION (contd……) Normative placements Only if not given a clear functional mandate PRIs are wastrels If state does not duplicate But constituency-wise division of funds

30. Need for clarity, non-duplication of functions and matching funds with expenditure responsibilities FEARS ABOUT PANCHAYATS AND POSSIBLE MITIGATION (contd……) PRIs are fiscally destabilizing Hard budget constraint Clarity on local resource mobilization Fiscal database – Proper audit of expenditures PRIs are corrupt More social accountability Generally lesser in quantity Potentially more dangerous But visible and “messy” Can be controlled by processes, systems and institutions

31. FEARS ABOUT PANCHAYATS AND POSSIBLE MITIGATION (contd……) PRIs’ non-performance still affects government’s image Clear division of responsibilities People should know

32. Use of participatory planning as the entry point STRATEGIES FOR STRENGTHENING DECENTALIZATION Key roles in each of the schemes – Central and State Indicate roles in management of public service delivery institutions Clarifying the functional roles Indicate areas where funds can be spent

33. Service Area Technical complexity STRATEGIES FOR STRENGTHENING DECENTALIZATION (contd……) Spill overs Factors to be taken into account by assigning responsibility Participation Capacity No overlapping or multiple responsibilities • Niche Areas • Basic minimum services • Poverty reduction • Local public services delivery • Care and compassion schemes • NRM

34. Work and worker going together Providing Human Resources STRATEGIES FOR STRENGTHENING DECENTALIZATION(contd……) Volunteer teams Community resource persons Technical support agency/institutions Capacity Building Training Hand books/Manuals ICT Learningbydoing Bestpracticedocumentationand learning from leaders Help Desk

35. STRATEGIES FOR STRENGTHENING DECENTALIZATION (contd……) Strengthening Finances Central Finance Commission/SFC Grants Intelligent utilization of CSS BRGF MGNREGS NBA User charges Local Resource Mobilization Donations in cash and kind Sharing of expenditure Local Taxes

36. STRATEGIESFOR STRENGTHENING DECENTALIZATION [contd….] Building local data base Decentralized Planning Census BPL Participatory data Needs assessment Gram Sabha Stakeholders Situation analysis Task Forces Development Reports

37. STRATEGIESFOR STRENGTHENING DECENTALIZATION [contd….] Development Workshop Decentralized Planning Outlining Strategies and priorities Development/Programme Ideation & Outlines Task Forces Priorities and Resource Allocation Panchayat

38. STRATEGIESFOR STRENGTHENING DECENTALIZATION [contd….] Projectization Decentralized Planning Task Forces Plan vetting Volunteer Technical Groups Plan approval DPC

39. STRATEGIES FOR STRENGTHENING DECENTRALIZATION [contd….] Strengthening Institutions Gram Sabha District Planning Committee State Finance Commission State Election Commission Harmonising Institutions SHGs User Groups District level Missions/Societies

40. STRATEGIES FOR STRENGTHENING DECENTRALIZATION [contd….] Partnerships and Linkages Academic Institutions Technical Institutions NGOs Local Government Associations Enhancing Accountability Downward accountability Due Process Transparency and disclosures Social Audit Improving accounts and audit

41. STRATEGIES FOR STRENGTHENING DECENTRALIZATION [contd….] Good Governance Initiatives Self Assessment Report Citizens’ Charter Citizen Score Card ICT for service delivery, monitoring, etc. Participatory for a Citizen panels/juries Stakeholder groups Developing norms by consultations and building them into processes, procedures and systems

42. STRATEGIES FOR STRENGTHENING DECENTRALIZATION [contd….] Space, identity and voice Serious consultations Shared responsibility and working in partnership Taking feedback Trusting/Recognizing Giving importance and showing respect. Soft Devolution

43. FRAMEWORK OF DECENTRALIZATION F 1 – FUNCTIONS • Responsibility mapping • Use of subsidiarity principle • Define role range • Informer • Opinion giver • Agency • Manager • Partner • Actor • Need to avoid multiple responsibilities and overlapping roles

44. FRAMEWORK OF DECENTRALIZATION (contd……) F 2 – FUNCTIONARIES • Work and worker going together • Facility to insource • Volunteer Technical Corps • Definition of control • Fiscal control most practical • Code of Conduct • Need for management manuals

45. FRAMEWORK OF DECENTRALIZATION (contd……) F 3 – FINANCES • Define own tax domain • Property Tax • Profession Tax • Management Tax • Benefit Tax • Use of fees/license fees • TRANSFERS • Efficiency • To match expenditure responsibilities • Non- discretionary • Predictable • Guaranteed • Free flowing • Fungibility • Freedom of use • Untied

46. FRAMEWORK OF DECENTRALIZATION (contd……) F 4 – FRAMEWORK • Need for appropriate manuals, codes • Planning framework • Decision making framework F 5 – FREEDOMS • Freedom from bureaucratic control • Elected body as executive authority • Focus on the elected body and not the Sarpanch

47. FRAMEWORK OF DECENTRALIZATION (contd……) F 6 – FRATERNITY • Strengthening constitutional institutions • SHGs and user groups as sub-systems and not as parallel bodies • Partnership with NGOs/CSOs • Cooperation and not contestation • Local Government Associations • Platforms of believers • Politicians • Civil servants • Academics/ • Mode • Activities

48. FRAMEWORK OF DECENTRALIZATION (contd……) F 7 – FUNCTIONINGS • Continued capacity building • Institutions for capacity building • Accountability institutions • Ombudsman • Social Audit F 8 – FUTURE • Reform agenda • Road map for the earlier seven Fs

49. SILVER LININGS • 150 Point Action emerging from the consensus of 7 Round Tables • Report of the Expert Group on Grass root level planning • Planning Commission guidelines for 11th Plan followed by constitution of Task Force and issue of District Planning Manual • PRIs as the principal planning authority under MGNREGA • Participatory planning in BRGF • Recommendations of 2nd ARC – Sixth Report • Recommendations of 13th Finance Commission • 2.28% of Central Tax Revenue • Insistence on separate budget document • Insistence on fiscal data base • Mandatory property tax • Mandatory constitution of Ombudsman

50. CONCLUSION • No “per se“ or “ipso facto” things • Need for assiduous preparation and handholding • Institutionalization challenges • Learn from successes and failures • Analyze roll outs and withdrawals • Need to combine rationality and faith • Support and guidance rather than control and direction • Ambedkarite apprehensions vs . Gandhian expectations • Both are genuine • No developed country functions without active Local Governments • Local Governments are more than instruments of development and service delivery • They constitute an essential pre-condition for democratic governance