Empowerment of Local Government – A Point Of View

1. Introduction

The global trend towards decentralization of government focuses attention on local government as an institution responsible for economic development and addressing poverty and social exclusion. The 74th Amendment to the Indian Constitution has followed this pattern towards decentralization to local government. As a result, urban local bodies across India are creating mechanisms for local planning and development, with greater powers than previously. The process offers mega-cities the potential to develop their own economic and 'quality of life' policies, integrating them in global city networks; or leading to exclusionary policies, prioritizing the requirements of the elite at the cost of the majority. Experiences with decentralization show that this process does not ensure greater responsiveness to citizens' issues. Whether local government becomes more accountable depends on the strength of local political processes and the influence of civil society organizations on politicians and administration. A major issue is to what extent democratization and empowerment, which enlarge the space for citizen groups to make their voice heard, accompany such decentralization.

2. The Indian Scenario – Empowerment, the Need of the Hour

India, a huge and politically complex country, has been undergoing a process of fiscal and administrative decentralization with the aim of bringing government closer to the people and deepening democracy. This provides an opportunity for more responsive and participatory decision-making. However, experience at local levels has not matched up to the expectations around the decentralization process. The decentralization process has been held up as the answer to many political and administrative problems, including corruption. However, in reality, decentralization of powers and processes has not kept pace with political and legal changes, and structures have not changed sufficiently to reflect the new reality at local levels. For example, money is given to elected bodies at local level on request and satisfaction of conditions, leaving the power still in the hands of central government. What is needed is devolution of power to the local governments so that administrative and financial decisions are taken at the level close to the people.

With the passing of the 73rd and 74th amendments to the Indian constitution in 1992, decentralization came into its own in the Indian polity. The process of decentralization was adopted to deepen the democratic foundations of the Indian nation. This, in turn, was to contribute to a more equitable development process. People were to be given a say in how their communities would develop: their elected representatives at the local level were to be empowered to act in the common interest. These amendments came after considerable debate in the country.

The Lok Sabha and the Rajya Sabha passed these amendments in 1992. These amendments have brought in grass roots democracy on a massive scale. In particular, given the gender reservations, they have brought in women in large numbers into the political process. Democracy, however, is more than just elections and debates in elected bodies. Much more will be needed if this incipient democracy is to enrich the lives of ordinary people. It will take time for the impact of even these initial steps to become visible continuously.

3. The Sarkaria Commission

The Indian constitution, when it came into force, provided for two levels of government--the Union Government or the Government of India, and the State governments, each with functions specified in lists. Relations between these two levels of government are set out in a number of articles in the constitution. There has been much debate on “Centre-State” relations in India. The main issue was whether the Union exercised power disproportionate to its functions; the State governments, of whatever political color, certainly felt so. The question was how this was to be redressed. This has been the subject of study by one of the most respected commissions—the Justice Sarkaria Commission. The Sarkaria Commission had recommended that consultations with the States should precede any central legislation on subjects in the concurrent lists. Moreover, in 1988, an expert group set up by the Centre recommended that before any new centrally sponsored scheme is introduced, detailed discussions should be held with the State governments and their views should be given due weightage in the guidelines framed for the implementation of the schemes. The Sarkaria Commission also recommended that the central schemes should be kept to a minimum and decentralization in the plan process should be maximized. The Sarkaria Commission observed that Planning Commission functioned more as a limb of the Union government rather than as truly federal institution. The Sarkaria Commission recommended that the States be given more opportunity, and be consulted in a more meaningful way about formulation of their Plans and also to what extent they can finance their own Plans.

It is important to look at the same debate and extend the argument made by the Sarkaria Commission to the state and sub-state levels. It is an irony that many states, which argued for greater state autonomy in financial and administrative matters with respect to the Union, show little interest in further devolution from their level to local bodies. In particular, they are reluctant to consider local bodies as “government” even though the amendments refer to them in that way. In the words of former Prime Minister Atal Bihari Vajpayee, “Often, discussions on democratic decentralization stop only at devolution of powers to the States. This will not achieve the goal we all have in mind. The time has come to pool our collective experiences and move forward to realize the objective of a vibrant Panchayati Raj, within the broader objective of improved Centre-State relations.”

4. Benefits of Empowerment of Local Government

Empowerment can help address two of the biggest domestic challenges we face as a country. Empowerment can help improve public services. And empowerment can help bridge the gap between citizens and their democracy. The role and functions of local government are the key to bring about decentralization of power through devolution and local government reform. Empowerment aims to combine the efforts of Government acting on behalf of the citizen with the efforts of citizens themselves as individuals and members of families and communities. Whether it is the vital role that parents play in the education of their children, the way in which people with long term illnesses manage their conditions, or communities coming together to tackle anti-social behavior or organize sports clubs for young people, enfranchisement of the citizen through empowerment of local governments is vital to the achievement of our shared goals. It is in and through local government that key local services are brought together, and in and through local government that local communities can be given more power to shape services around their own needs. It is crucial to work with local government to stimulate local activity, develop community leadership, and improve local services.

4.1 Local Governments and Millennium Development Goals

Decentralization and Local Governance can contribute significantly to the achievement of the Millennium Development Goals. In September of 2000, the members of the United Nations formally signed the Millennium Declaration, pledging to meet the following eight goals by 2015:

- Eradicate extreme poverty and hunger

- Achieve universal primary education

- Promote gender equality and empower women

- Reduce child mortality

- Improve maternal health

- Combat HIV/AIDS, malaria and other diseases

- Ensure environmental sustainability

- Develop a global partnership for development

Taken as one, the Millennium Development Goals point to the extremely urgent objective of improving the overall quality of life for as many people as possible. Therefore, to answer the above question, one must determine in what way the promotion of Local Governance and Decentralization can lead to a better quality of life.

Put most simply, centralization is when political power is concentrated in the hands of a very narrow group of people. It is a typical feature of governments of former colonies or satellite states, which continue to be ruled by a top-down system of control, or vertical power. The effects of centralization are manifold, and for the most part, the negatives outweigh the positives. On the one hand, highly centralized governments are able to implement reforms with little friction, simply because their decision-making power can be unchecked. Obviously, this can also make a centralized government highly resistant to progressive change. The point is just that if a centralized government wanted to reform, it has the tools to make that reform happen. Other more specific effects are that centralized governments can exhibit a high degree of urban bias, low transparency, a tendency to serve special interests, and short-sightedness, all of which are symptoms of poor governance and stand in the way of the Millennium Development Goals, and can be combated by Local Governance and Decentralization.

First of all, Local Governance and Decentralization can more effectively contribute to the Millennium Development Goals by ensuring that aid and investment reach the most impoverished regions of developing countries. When the power is centralized, government jobs and any accompanying economic activities become highly concentrated as well. Metropolitan areas become centers for trade and investment, and the needs of disconnected rural provinces go neglected. Setting up of local government offices throughout a country spreads not only power, but also jobs, investment opportunities, and infrastructure. All of these would help reduce the proportion of the population living in extreme poverty, the specific aim of the first Millennium Development Goal. Also, anything that increases governmental transparency contributes positively to the Millennium Development Goals. Corruption causes waste, most notably in the form of embezzled foreign aid. It is likely that decentralization would increase the percentage of aid that actually reaches its intended destination.

Second, Local Governance and Decentralization can lead to more effective mechanisms for reaching the public health targets of the Millennium Development Goals. The Millennium Development Goals call for reducing infant and maternal mortality rates, ensuring that more children are immunized against measles, and improving condom use rate to prevent the spread of HIV/AIDS. All of these tasks would be daunting for a highly centralized government, which would have to develop a uniform health plan to apply to each region. In the case of decentralization, empowered local governments could design vaccination and treatment plans specific to the needs of each individual region. This would be much more efficient than a single, uniform, and centralized plan, although it is true that centralized governments such as Thailand’s have shown relative effectiveness in dealing with the HIV/AIDS crisis.

The third key component of the Millennium Development goals is education. Again, due to urban bias, a decentralized government is more likely to invest in schooling than a centralized government. Decentralized governments differ from centralized governments in that they are held accountable at the local level, and are susceptible to protest and civil unrest. Thus, a local government has a large incentive to invest in its community and provide the opportunity for human development in the form of primary, secondary, and tertiary schools. In the same vein, local governments that are held accountable are likely to be gender-unbiased, providing the same education opportunities to women and men. This would go a long way to improving the ratio of literate women to men. Moreover, one of the indicators used to gauge progress on the Millennium Development Goals is the proportion of seats held by women in national parliaments. The best way to empower women in this manner is to start at the local level. Centralized governments are typically exclusive, and can be extremely intimidating to those excluded. Local governments would be the first step to increasing the share of women involved in government.

Finally, centralized governments have proved to be extremely ineffective in dealing with multi-ethnic states. In extreme cases, poorly governed multi-ethnic states break out into civil wars. Decentralized governments give each community a voice and reduce the risk that tensions flare up and lead to crises. If anything, Decentralization and Local Governance contribute to the Millennium Development Goals by reducing the number and scale of global conflicts, thereby improving the overall quality of life.

As these arguments have shown, Decentralization and empowerment of Local Governments can empower individuals and communities to an extent not possible under highly centralized government. And after all, physical, financial, and political empowerments are the keys to a better democracy.

5. Empowering Local Government – A Worldwide Phenomenon

Decentralization to sub-national and local levels of government has become a key strategy in many countries. The rationale for strengthening lower levels of government is both political (enhancing democratic practices), and economic (more effective and efficient implementation of public policies). In a number of countries, constitutional reform has facilitated decentralization. For instance, in South Africa and in several Latin American countries, national constitutions have devolved planning, administrative and decision-making powers to local government. Acts transferring power from central to local levels have been promulgated elsewhere as well. In India, the 74th Constitutional Amendment Act is historic in this respect, as it prescribes decentralization and participation across the country, while promoting functional and financial autonomy for cities. In Senegal, legislative reforms resulted in a significant strengthening of the decision-making roles of local authorities, coupled with greater financial autonomy. Strategies aimed at fostering relationships between national and local government have been reviewed in Bulgaria and the Netherlands. Guidelines for national legislation on decentralization in Europe are contained in the “European Charter for Local Self-Government”, now signed and ratified by more than two thirds of the Council of Europe’s 40 member states. In some countries, however, the political structure, vested interests, and allegiances of powerful elites combine to thwart such progress. Incomplete and imperfect as the decentralization process may be, or hampered by political and practical obstacles, it is becoming the enabling force for effective urban strategies and a key aspect of improved national governance, overall.

Decentralization can help construct new links between traditional representative governmental practices and forms of participation and collectivity (including neighborhood associations and organizations of marginalized groups), strengthening local identities. Neighborhood councils have been introduced in Amsterdam, showing that when municipal and district offices are better integrated into the planning process, there is more likelihood of greater long-term sustainability. New forums can increase the voice of marginalized groups, particularly where ethnic minorities are concentrated geographically. The Popular Participation Law in Bolivia, for example, has created municipal councils in which minority representatives now play a role in allocating resources. Encouraging direct democracy is another growing trend, and rules governing elections and democratic practice are being changed to bring representative and participatory democracy together. In addition, referenda allow non-elected citizens to become involved in decision-making outside of the main elected bodies. Reforms have also taken place at the metropolitan level, as with the re-creation of the Greater London Authority. New laws and budgeting procedures increasingly support local authorities in undertaking additional responsibilities, while broadening their tax base. Encouraging nation-wide inter-city cooperation aims at creating more efficient and competitive sub-national units. The Greater Vancouver Regional District in Canada, for example, now administers important regional services, and is controlled by member-municipalities through formal representation. When several cities are reaping the benefits of decentralization and empowerment of local governments, why should Mumbai be left behind? Mumbai needs a similar strategy for improvement. The State should take on a new role of creating frameworks and facilitating collective action with less direct intervention. The overriding principle in government reform should be subsidiary, implying that decision-making and public responsibility should be exercised at the level of authority most responsive to the public. Districts and municipalities therefore should become more important arenas for decision-making, with lower levels and many more actors involved in the planning and management of urban settlements. Local authorities enjoy the most advantageous and privileged position to propose and implement adequate solutions to the most pressing problems of our times. Indeed, the city is the physical location where most of these problems occur and the local authorities, the form of democratic government closest to the people, should be empowered to solve these problems efficiently.

6. The Road Ahead

Citizens’ participation and political representation are indeed the foundations of democracy. The following steps should be taken to empower local governments, as they are closest to the lives of the citizens:

- Promotion of mechanisms to facilitate citizen participation in politics, especially in local or municipal government

- Development, autonomy and institutional strengthening of local government in order to promote favorable conditions for the sustainable economic and social development of their communities

- Strengthening the institutional capacity of local governments to allow full and equal citizen participation in public policies without any discrimination, facilitate access to those services fundamental to improving citizens’ quality of life, and strengthen decentralization and the integral development of these services in part through commensurate and timely funding and initiatives that permit local governments to generate and administer their own resources;

- Promotion of sharing of information, best practices and administrative expertise among local government personnel, associations of local governments, community associations and the public, in part by facilitating access to information and communications technologies by municipalities and by encouraging cooperation and coordination among national, sub regional and regional levels of local government