1. S.M.VIJAYANAND PRINCIPAL SECRETARY LOCAL SELF GOVERNMENT GOVERNMENT OF KERALA DECENTRALISED PLANNING A DECADE OF KERALA EXPERIENCE

2. 2 APPROACH “Big Bang” “Big Bang” Massive transfer of functions, functionaries and funds in a space of ten monthsMassive transfer of functions, functionaries and funds in a space of ten months Reversals Reversals Giving responsibilities and then building capacityGiving responsibilities and then building capacity Giving powers and then setting up systemsGiving powers and then setting up systems Transferring resources and then putting in place accountability arrangementsTransferring resources and then putting in place accountability arrangements

3. 3 APPROACH (Contd..) Learning by doing Learning by doing Capacity cannot be created ‘in vacuo’Capacity cannot be created ‘in vacuo’ Campaign to set the agenda and instil enthusiasm Campaign to set the agenda and instil enthusiasm Planning as entry point Planning as entry point Methodology developed after field trials in Kalliasseri Continuous refining Continuous refining Activist facilitation Activist facilitation Learning from mistakesLearning from mistakes Adhoc systemsAdhoc systems

4. 4 APPROACH (Contd..) Fast track response system Fast track response system Phases of experimentation, correction, stabilization and institutionalization Phases of experimentation, correction, stabilization and institutionalization

5. 5 RESPONSIBILITIES TRANSFERRED  Roads Village Roads and other District Roads (District Panchayat) Village Roads and other District Roads (District Panchayat) Roads connecting two villages Roads connecting two villages (Block Panchayat) (Block Panchayat) Minor Local roads (Village Panchayat) Minor Local roads (Village Panchayat)  Irrigation (about 75%)– all tiers  Water supply (about 50%) all tiers  Electrification – all tiers  Street lighting – Village Panchayats

6. 6  Human Development EducationEducation o Primary Education – Village Panchayats o Secondary Education- District Panchayats HealthHealth o Primary Health – Village Panchayats o First referral unit – Block Panchayat o Secondary Health – District Panchayats ICDS – Village PanchayatsICDS – Village Panchayats Welfare Pensions – Village PanchayatsWelfare Pensions – Village Panchayats Women & Child Development(90%) – All tiersWomen & Child Development(90%) – All tiers SCP (2/3rd) – All tiers (60-20-20)SCP (2/3rd) – All tiers (60-20-20) TSP (50%) – All tiers (50-20-30)TSP (50%) – All tiers (50-20-30) A. RESPONSIBILITIES TRANSFERRED (Contd…)

7. 7  Economic Development Agriculture & allied sectors (75%) – All tiers (75 – 15 – 15)Agriculture & allied sectors (75%) – All tiers (75 – 15 – 15) Traditional & local industries (50%)–All tiers (75 – 15 – 15)Traditional & local industries (50%)–All tiers (75 – 15 – 15) Poverty reduction (90%) – All tiersPoverty reduction (90%) – All tiers  Absolute clarity in respect of infrastructure – good degree of clarity in respect of services and overlaps and blurring in respect of economic development (except poverty reduction) good degree of clarity in respect of services and overlaps and blurring in respect of economic development (except poverty reduction) Responsibilities indicated in the Panchayat Raj Act itself Responsibilities indicated in the Panchayat Raj Act itself

8. 8 B. FISCAL DECENTRALISATION Classical principles followed Classical principles followed Strong own fiscal domain of Village Panchayats (about Rs.100 per capita of own revenue) Strong own fiscal domain of Village Panchayats (about Rs.100 per capita of own revenue) Transfers matching assigned responsibilities Transfers matching assigned responsibilities In three streamsIn three streams o Development Fund o Maintenance Fund o General Purpose Fund

9. 9 B. FISCAL DECENTRALISATION Devolution of funds (Rs crores)

10. 10 B.FISCAL DECENTRALISATION (Contd…) Fairness and equity in devolution of Funds Fairness and equity in devolution of Funds Formula based Formula based Development & Maintenance Funds Development & Maintenance Funds Inter-se Distribution Formula Inter-se Distribution Formula

11. 11 b) General Purpose Fund Forty Lakh to each District Panchayats 5.5 lakh to each Block Panchayats 78.5 % of the remaining amount to Village Panchayats. Quality of Funds – untiedQuality of Funds – untied Predictability of Funds – 5 year allocation approved in advancePredictability of Funds – 5 year allocation approved in advance Assuredness of Funds – Local Government-wise allocation presented as a separate Budget documentAssuredness of Funds – Local Government-wise allocation presented as a separate Budget document Free flowFree flow B. FISCAL DECENTRALISATION (Contd..)

12. 12 Mobilization of stakeholders, elected members, officials, political parties, employees organizations and trade unions, academic and R & D institutions, Civil Society groups, religious leaders, media Mobilization of stakeholders, elected members, officials, political parties, employees organizations and trade unions, academic and R & D institutions, Civil Society groups, religious leaders, media Mobilization of Volunteer Technical Corps from professionals - through individual letters written by Late Shri E.M. S. Namboodiripad Mobilization of Volunteer Technical Corps from professionals - through individual letters written by Late Shri E.M. S. Namboodiripad PEOPLE’s CAMPAIGN

13. 13 High Level Guidance Committee High Level Guidance Committee Resource persons – about 600 Key Resource persons at State level, 1,400 District Resource persons and 1,00,000 Local Resource persons at Village Panchayat level Resource persons – about 600 Key Resource persons at State level, 1,400 District Resource persons and 1,00,000 Local Resource persons at Village Panchayat level Interactive sessions with PRI leaders by Minister, Planning Board Members and Secretary Interactive sessions with PRI leaders by Minister, Planning Board Members and Secretary Full page press features on essential principles and procedures Full page press features on essential principles and procedures Non-propagandistNon-propagandist State Planning Board given the nodal role assisted by a Cell of committed individuals from different walks of life State Planning Board given the nodal role assisted by a Cell of committed individuals from different walks of life PEOPLE’s CAMPAIGN (Contd..)

14. 14 STEPS IN THE PLANNING PROCESS Needs Assessment Needs Assessment Through Stakeholder consultationsThrough Stakeholder consultations Through Grama SabhasThrough Grama Sabhas o Publicity through Kudumbashree network and Schools o Facilitators o Semi-structured questionnaire o Breakout groups o Recording of discussions o Electing convener for each Grama Sabha o Official as co-ordinator Grama Sabha equivalent for Block & District PanchayatsGrama Sabha equivalent for Block & District Panchayats o Consisting of elected members of lower tiers

15. 15 Situation analysis through Development Reports prepared once in five years Situation analysis through Development Reports prepared once in five years Instructions on preparationInstructions on preparation Available data provided through KILA Available data provided through KILA Data sources intimatedData sources intimated PRA undertakenPRA undertaken Drafting Committees for each PanchayatDrafting Committees for each Panchayat Support team at District levelSupport team at District level Strategy setting through Development Seminars Strategy setting through Development Seminars Consisting of various stakeholders (about 200 to 500 in number)Consisting of various stakeholders (about 200 to 500 in number) STEPS IN THE PLANNING PROCESS (contd..)

16. 16 Priority setting and Resource allocation- By elected bodies Priority setting and Resource allocation- By elected bodies Projectisation - By multi-disciplinary Working Groups Projectisation - By multi-disciplinary Working Groups Headed by elected MembersHeaded by elected Members Convened by official concernedConvened by official concerned An expert as an expert Vice ChairmanAn expert as an expert Vice Chairman Expert members drawn from civil society, primary stakeholders and professionals in the sectorExpert members drawn from civil society, primary stakeholders and professionals in the sector At least 14 Working Groups for each PRIAt least 14 Working Groups for each PRI Project Forms centrally prescribed – to be computerised in the XIth Plan and electronic copies givenProject Forms centrally prescribed – to be computerised in the XIth Plan and electronic copies given STEPS IN THE PLANNING PROCESS (contd..)

17. 17 Plan Finalization - By elected bodies Plan Finalization - By elected bodies Plan document preparation Plan document preparation Consisting of following chaptersConsisting of following chapters 1. Development scenario of the local government 2. Efforts during the past ten years 3. Success and failures 4. Physical and Financial achievements and outcomes in the Ninth and Tenth Plan 5. Strategic vision of the local government STEPS IN THE PLANNING PROCESS (contd..)

18. 18 6. Summary of possible projects sector wise within each sector giving the existing scenario, the intended scenario, size of the gap and the intended phases of filling up of the gaps with monitorable targets - separately for Plan and Maintenance plan 7. Allocation of resources sub-sector-wise a. From Development Fund b. From Maintenance Fund c. From Own Revenue and General Purpose Fund d. From credit e. From people's contribution STEPS IN THE PLANNING PROCESS (contd..)

19. 19 8. Write up on Anti-poverty Sub Plan and Destitute Plan, Women Component Plan, Plan for Special Groups and Special Component Plan and Governance Plan - only very brief summaries 9. Maintenance Plan (summary only) 10. Write up on credit linkages 11. Write up on integration 12. Write up on monitoring arrangements intended The Anti Poverty Sub Plan, Governance Plan, Maintenance Plan and wherever applicable, the Tribal Sub Plan are separate documents where full details would be presented.The Anti Poverty Sub Plan, Governance Plan, Maintenance Plan and wherever applicable, the Tribal Sub Plan are separate documents where full details would be presented. STEPS IN THE PLANNING PROCESS (contd..)

20. 20  Vetting of Plans By multi-disciplinary Technical Advisory Groups with expert members drawn from within and outside government  Approval by DPC Issue of PRI-wise proceedings STEPS IN THE PLANNING PROCESS (contd..)

21. 21 SPECIAL FEATURES Specifications on sectoral allocations Specifications on sectoral allocations 40% for productive sector40% for productive sector Not more than 20% for infrastructureNot more than 20% for infrastructure Social justice allocations Social justice allocations 10% for women10% for women 5% for children, aged and disabled5% for children, aged and disabled Anti-poverty sub plan Anti-poverty sub plan Local plan on family-based needs by Neighbourhood Groups of poor women.Local plan on family-based needs by Neighbourhood Groups of poor women. Ward level plan for basic minimum needs by Area Development Societies – (ADSs) (federation of NHGs)Ward level plan for basic minimum needs by Area Development Societies – (ADSs) (federation of NHGs) Village Panchayat level plan adding human and economic development proposals by Community Development Society (CDS) – (a network of ADSs)Village Panchayat level plan adding human and economic development proposals by Community Development Society (CDS) – (a network of ADSs)

22. 22 Asraya for the destitutes (1 ½ to 2% of the population) Asraya for the destitutes (1 ½ to 2% of the population) Criteria based identificationCriteria based identification Preparation of plans for each familyPreparation of plans for each family Convergence of services and resourcesConvergence of services and resources SPECIAL FEATURES (contd..)

23. 23 Special Component Plan Special Component Plan Based on survey of every SC habitatBased on survey of every SC habitat Involvement of social animators from the communityInvolvement of social animators from the community Tribal Sub Plan Tribal Sub Plan Hamlet based data baseHamlet based data base Full powers to hamlet assemblyFull powers to hamlet assembly Involvement of social animators from the communityInvolvement of social animators from the community Gender Plan Gender Plan Conduct of “Status of Women” studiesConduct of “Status of Women” studies Plan for special groups – children, aged, disabled Plan for special groups – children, aged, disabled Conduct of status studiesConduct of status studies SPECIAL FEATURES (contd..)

24. 24 Sectoral Plans Sectoral Plans HealthHealth EducationEducation ICDSICDS Water SupplyWater Supply EnergyEnergy SanitationSanitation Infrastructure Plans Infrastructure Plans ConnectivityConnectivity SportsSports Asset Management Plans Asset Management Plans For maintenance of assetsFor maintenance of assets SPECIAL FEATURES (contd..)

25. 25 Governance Plan Governance Plan Improving account keeping and office managementImproving account keeping and office management Service Delivery PlansService Delivery Plans o Human Development Services  Health, Education & Child development o Civic Services  Water, Sanitation, Lighting o Welfare Services  Pensions Governance ServicesGovernance Services o Certificates o Licenses SPECIAL FEATURES (contd..)

26. 26 DISTRICT PLANNING Multi-level, iterative process Multi-level, iterative process eg. Health Spatial Plan Spatial Plan Connectivity networkConnectivity network Play groundsPlay grounds Service area and utilitiesService area and utilities Economic development patternsEconomic development patterns Visioning Visioning Consultation right from Village PanchayatsConsultation right from Village Panchayats Preparation of District Development Report Preparation of District Development Report

27. 27 Approach Approach Gap filling for infrastructure and facilities Gap filling for infrastructure and facilities Problem solving in social and service sectors Problem solving in social and service sectors Realising potential in productive sectors Realising potential in productive sectors Local freedom within consensual district level approach Local freedom within consensual district level approach Expert institutional support for identifying key issues Expert institutional support for identifying key issues R&D institutions R&D institutions Academic institutions Academic institutions  Universities, Medical Colleges, Technical Institutions DISTRICT PLANNING (contd..)

28. 28 COMPONENTS OF THE DISTRICT PLAN Local Plans for Development Funds Local Plans for Development Funds Local Plans for CSS Local Plans for CSS Plan for Maintenance Funds Plan for Maintenance Funds Reckoning and positioning of State Plan Schemes Reckoning and positioning of State Plan Schemes Suggestions for future State Plan Schemes Suggestions for future State Plan Schemes

29. 29 SUPPORT SYSTEMS Working Group Working Group Multi-disciplinaryMulti-disciplinary o Elected leader – Chairperson o Official – Convener o Beneficiary o Professional o Activists Multiple perspectivesMultiple perspectives“Quin-angulation”

30. 30 Working Group (contd.) Working Group (contd.) Draft discussion paper by ConvenorDraft discussion paper by Convenor Evaluation of experience so farEvaluation of experience so far Consultation with stakeholdersConsultation with stakeholders Analysis of dataAnalysis of data Determination of gaps,shortcomings, problems and potentialDetermination of gaps,shortcomings, problems and potential Listing of strategic optionsListing of strategic options Listing of project options and suggesting prioritiesListing of project options and suggesting priorities Projectisation after clearance by elected body.Projectisation after clearance by elected body. SUPPORT SYSTEMS (contd..)

31. 31 Technical Advisory Group Technical Advisory Group Multi-disciplinaryMulti-disciplinary Set up by DPCSet up by DPC Vetting of PlansVetting of Plans District Planning Committees District Planning Committees District Panchayat President is head District Collector as Member Secretary and respected expert is government nominee. All district level officers are Joint Secretaries.District Panchayat President is head District Collector as Member Secretary and respected expert is government nominee. All district level officers are Joint Secretaries. Technical Secretariat consisting of Planning, Statistical and Town & Country Planning DepartmentsTechnical Secretariat consisting of Planning, Statistical and Town & Country Planning Departments Plan Coordination group under nominated expert memberPlan Coordination group under nominated expert member Sectoral Resource GroupsSectoral Resource Groups Resource Team for preparation of Development reportResource Team for preparation of Development report Technical Advisory Groups for vetting of plans.Technical Advisory Groups for vetting of plans. SUPPORT SYSTEMS (contd..)

32. 32 District Planning Committee District Planning Committee Preparation of position papers especially on Local Economic Development, Special Component Plan, Tribal Sub Plan, Health and Education Preparation of position papers especially on Local Economic Development, Special Component Plan, Tribal Sub Plan, Health and Education Facilitating integration and convergence Facilitating integration and convergence Integration of services Integration of services Integration of resources Integration of resources Decentralized plan Credit plan People’s plan Sectoral integration Sectoral integration Cross-sectoral integration Cross-sectoral integration Horizontal integration Horizontal integration Vertical Integration Vertical Integration Spatial integration Spatial integration SUPPORT SYSTEMS (contd..)

33. 33 Co-ordinators at Block and District levels Co-ordinators at Block and District levels Coordination Committee Coordination Committee Headed by M (LSG) with M(Fin), Principal Secretary (LSG), Principal Secretary (Fin), Secretary (Plg.) and key HODs as members for fast track online response and trouble shootingHeaded by M (LSG) with M(Fin), Principal Secretary (LSG), Principal Secretary (Fin), Secretary (Plg.) and key HODs as members for fast track online response and trouble shooting State level Guidance Cell State level Guidance Cell Local Government Associations Local Government Associations For policy consultationFor policy consultation For collective actionFor collective action SUPPORT SYSTEMS (contd..)

34. 34 Independent Institutions Independent Institutions S E CS E C o including power to disqualify for non-convening of two successive Grama Sabhas S F CS F C o even Third SFC’s award accepted and implemented from 1-4-2006 OmbudsmanOmbudsman o for complaints related to malfeasance Appellate TribunalAppellate Tribunal o for regulatory appeals SDCSDC o a forum like NDC Audit CommissionAudit Commission o to be set up SUPPORT SYSTEMS (contd..)

35. 35 CAPACITY BUILDING Detailed plan guidelines Detailed plan guidelines Direct explanation to elected heads and key officials by Minister, Principal Secretary and Planning Board Members Direct explanation to elected heads and key officials by Minister, Principal Secretary and Planning Board Members Freedom to access capacity Freedom to access capacity From non-government experts and civil society activistsFrom non-government experts and civil society activists From institutionsFrom institutions From accredited NGOsFrom accredited NGOs

36. 36 Key role of KILA Key role of KILA District outreach centresDistrict outreach centres Trainers on call in all districtsTrainers on call in all districts Training Advisory Council under DPCTraining Advisory Council under DPC Training as per clear action planTraining as per clear action plan Handbooks on all development sectorsHandbooks on all development sectors Design of Plan formatsDesign of Plan formats Help deskHelp desk Tool kitsTool kits o Preparation of working group reports o Conduct of Grama Sabhas o Conduct of Development Seminar o Preparation of development report o Preparation of district plan CAPACITY BUILDING (contd..)

37. 37 ROLE OF SHG NETWORK IN DECENTRALIZATION Provides participation in Grama Sabhas and protects interests of the poor Provides participation in Grama Sabhas and protects interests of the poor Facilitates participatory planning of Anti Poverty programmes Facilitates participatory planning of Anti Poverty programmes Serves as an extension mechanism Serves as an extension mechanism Facilitates improved access to public services Facilitates improved access to public services Allows community contracting Allows community contracting Enhances capabilities for accessing economic development opportunities Enhances capabilities for accessing economic development opportunities Enables community based monitoring Enables community based monitoring Contributes to local government leadership Contributes to local government leadership IF CONSCIOUSLY STRUCTURED SHGS OF THE POOR CAN FURTHER DEMOCRATISE DECENTRALISATION AND STRENGTHEN LOCAL GOVERNMENTS INSTEAD OF WEAKENING THEM AS PARALLEL BODIES.

38. 38 ASSESSMENT OF PERFORMANCE Equitable flow of funds to all regions Equitable flow of funds to all regions Pro-poor expenditure Pro-poor expenditure Impressive creation of minimum needs infrastructureImpressive creation of minimum needs infrastructure Substantial improvement in public service infrastructure Substantial improvement in public service infrastructure Anganwadis, Schools, HospitalsAnganwadis, Schools, Hospitals But management of professionals needs to improve But management of professionals needs to improve Good practices in most development sectors Good practices in most development sectors Impressive mobilisation of contribution from the community Impressive mobilisation of contribution from the community Free surrender of landFree surrender of land Cost sharing (10% for water supply and irrigation)Cost sharing (10% for water supply and irrigation) Full responsibility of O & MFull responsibility of O & M but tax collection not impressive but tax collection not impressive Enhanced public participation Enhanced public participation but participation of better off people quite weak but participation of better off people quite weak

39. 39 Improved targetting Improved targetting yet the destitutes did not gain proportionatelyyet the destitutes did not gain proportionately Improved capacity of elected leaders Improved capacity of elected leaders but official capacity still weakbut official capacity still weak Enhanced transparency Enhanced transparency but corruption still prevalent though at reduced levelsbut corruption still prevalent though at reduced levels Good response to developmental needs Good response to developmental needs but thin spread of resourcesbut thin spread of resources Delay in setting up appropriate support systems Delay in setting up appropriate support systems Public Works executionPublic Works execution ProcurementProcurement Accounting and reportingAccounting and reporting MonitoringMonitoring ASSESSMENT OF PERFORMANCE (contd..)

40. 40 LESSONS FROM KERALA EXPERIENCE Rapid decentralization has several advantages Rapid decentralization has several advantages Speed of the operation diminishes oppositionSpeed of the operation diminishes opposition Once given responsibilities Local Governments are forced to performOnce given responsibilities Local Governments are forced to perform Pressure on Government to ensure that decentralization succeedsPressure on Government to ensure that decentralization succeeds Decentralization is not a one-off action Decentralization is not a one-off action Requires continuous effort by GovernmentRequires continuous effort by Government Need for transferring untied resources in a fair, transparent and equitable manner Need for transferring untied resources in a fair, transparent and equitable manner Lessons related to planning Lessons related to planning To start with, plans emerging out of negotiated priorities and then to data-based analysisTo start with, plans emerging out of negotiated priorities and then to data-based analysis

41. 41 Lessons related to planning (contd..) Lessons related to planning (contd..) Plan for assured resourcesPlan for assured resources Development Reports and Vision Documents are usefulDevelopment Reports and Vision Documents are useful Go in for Local Governments’ plans consolidated into District Plans – mechanically in the beginning then organically on gaining experience and finally to District PlanningGo in for Local Governments’ plans consolidated into District Plans – mechanically in the beginning then organically on gaining experience and finally to District Planning Multi-disciplinary, multi-stakeholder teams can assist in plan preparationMulti-disciplinary, multi-stakeholder teams can assist in plan preparation Give representation to Village and Intermediate Panchayats in DPCs as inviteesGive representation to Village and Intermediate Panchayats in DPCs as invitees President of District Panchayat as head of DPC, expert as Government nominee, District Collector as Member Secretary and District-level officer as Joint Secretary – a viable combinationPresident of District Panchayat as head of DPC, expert as Government nominee, District Collector as Member Secretary and District-level officer as Joint Secretary – a viable combination Move from annual plans to five year plansMove from annual plans to five year plans LESSONS FROM KERALA EXPERIENCE (Contd..)

42. 42 THANK YOU