PANCHAYATI RAJ IN INDIA S. M PANCHAYATI RAJ IN INDIA S.M. VIJAYANAND ADDITIONAL SECRETARY DEPARTMENT OF RURAL DEVELOPMENT GOVERNMENT OF INDIA

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

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

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

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”

FEATURES OF THE 73RD AMENDMENT (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

FEATURES OF THE 73RD AMENDMENT (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

FEATURES OF THE 73RD AMENDMENT (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

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

FEATURES OF THE 73RD AMENDMENT (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

FEATURES OF THE 73RD AMENDMENT (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

FEATURES OF THE 73RD AMENDMENT (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

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

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

PANCHAYATI RAJ FACTS AND FIGURES Local Government structures in India Panchayats & Nagarpalikas 24 States 5 Union Territories Fifth Schedule Areas – Areas of 9 States AP Chhattisgarh Gujarat HP Jharkhand MP Maharashtra Orissa Rajasthan Sixth Schedule Areas – Areas of Assam Meghalaya Mizoram Tripura Other systems established through State laws – Hill areas of Manipur Nagaland Darjeeling Gorkha Hill Council(Exempt from ZPs) J&K Environmentally sensitive or resource rich areas have diverse LG structures

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

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

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

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

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

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

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

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

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

FEARS ABOUT PANCHAYATS AND POSSIBLE MITIGATION (contd……) Greater possibilities of negotiation/consensus PRIs are partisan 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

FEARS ABOUT PANCHAYATS AND POSSIBLE MITIGATION (contd……) PRIs weaken the bureaucracy Gains of widening the support base 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

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

FEARS ABOUT PANCHAYATS AND POSSIBLE MITIGATION (contd……) PRIs not amentable to rule based functioning Inappropriateness of existing systems 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 Complex records Simplification Inadequate staff

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

FEARS ABOUT PANCHAYATS AND POSSIBLE MITIGATION (contd……) Need for clarity, non-duplication of functions and matching funds with expenditure responsibilities 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

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

STRATEGIES FOR STRENGTHENING DECENTALIZATION Use of participatory planning as the entry point 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

STRATEGIES FOR STRENGTHENING DECENTALIZATION (contd……) Service Area Technical complexity 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

STRATEGIES FOR STRENGTHENING DECENTALIZATION (contd……) Work and worker going together Providing Human Resources Volunteer teams Community resource persons Technical support agency/institutions Capacity Building Training Hand books/Manuals ICT Learning by doing Best practice documentation and learning from leaders Help Desk

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

LOCAL GOVERNMENTS ARE DEVELOPMENTAL AND DEMORATIC NECESSITY THE SOONER THE BETTER THE BETTER THE SOONER SWARAJ FOR SURAJ