DIMENSIONS OF DECENTRALIZED PLANNING

There are four major dimensions of decentralization: (i) Functional, (ii) Financial, (iii)

Administrative, and (iv) Political. We need to know a little more about these dimensions in order to understand the implications of decentralized planning better.

Functional Decentralization

When some functions are to be transferred from the national or state level to the substate level, it isnecessary that such functions must be selected carefully. A random transfer of functions will result in inefficient and undesirable discharge of those functions at the lower levels. Such fear arises because the competencies available at the lower level may not be adequate to do justice to those functions. Similarly, some powers will have to be delegated to the lower level to discharge those functions. If these powers are not delegated along with the functions then there will be a mismatch between the two and the functions cannot be executed.

This is important because one functional activity may be divided between state and sub-state levels of government. Take the example of education. There are different types of education: primary, secondary, higher, vocational, technical, adult, etc. For each type of education there can be different types of functions like day-to-day administration, location of a new school, curriculum design, teacher training, etc. So it becomes necessary that it must be clearly specified which of these services and functions are transferred to the given sub-national level.

The decentralization of function must be matched by the decentralization of necessary power. Such power is of three types: (i) policy-making power, (ii) financial power, and (iii) power over personnel matters. Each of these powers can be further subdivided.

Thus policy-making powers are further sub-divided into law-making and executive powers; financial powers into those concerning revenue and expenditure, and personnel powers into those relating to conditions of service, establishments, appointments, promotions, transfers, discipline, etc.

Financial Decentralization

Planning at any level without the necessary financial authority and resources is meaningless. In our country, like in other countries, most financial resources are mobilized by the Central government, which then distributes them to the lower levels.

The division of resources is done according to constitutional provisions. A statutory body called the Finance Commission, appointed every 5 years, decides these divisions. Recently a State Finance Commission has been stipulated for the transfer of financial resources from the states to the local bodies.

Different criteria are adopted for the allocation of development funds from the Centre to the sub-national levels. Some of the socio-economic considerations are the following: (i) area; (ii) population size; (iii) degree of relative backwardness, (iv) measure of tax effort, (v) special locational or social characteristics, (vi) commitment to major national schemes. These factors are taken into consideration with a view to providing relatively higher grants to relatively more backward states. The purpose behind this idea is two-fold: (a) from the point of view of fair play, the backward states should be given more to help them move upwards; (b) from the point of view of efficiency, if they aremade economically strong through such help, then their dependence at the centre decreases in future.

Divisible and Indivisible Pools Some states in India divided the total plan outlay into ‘divisible’ and ‘indivisible’ pools. Funds in the indivisible pool are earmarked for the state sector schemes, whereas funds in the divisible pool are distributed among the districts on the basis of a formula adopted by the state government concerned.

But simply earmarking funds for districts does not give the district planning bodies complete authority over the use of these funds. There is a real chance that most of these funds may be diverted to the implementation of departmental schemes under the control of departmental heads at the state level. The way out of this “departmentalism” is to keep some “untied funds” at the disposal of the district

planning bodies to be utilized according to their plan.

We understand now that financial decentralization is of crucial importance for successful implementation of decentralized planning. We also realize that total dependence on transfers from top is not very helpful and some local mobilization of revenue is necessary. Otherwise, flow of funds may not be assured to meet the local needs through decentralized planning.

Administrative Decentralization

Administrative decentralization is also known as deconcentration. It means deconcentration of functions and some powers from government departments and agencies to their field offices. However, the “command” remains at the top.

Administrative decentralization involves taking a number of administrative actions, some of which are:

(a) Setting up offices at regional and local levels to move closer to the people;

(b) Designating the decentralized functions for each level;

(c) Making necessary delegation of powers;

(d) Assigning adequate finances;

(e) Posting adequately qualified persons through deputation or fresh recruitment;

(f) Establishing work procedures and framing departmental rules and regulations for coordinated functioning; and

(g) Providing technical guidelines to field officers and establishing a time-bound programme of activities to fit into the national planning process.

Such administrative decentralization will lay the ground work for democratic decentralization. The officials will not only acquire the necessary skills to execute the plan, they will have to build up an attitude favourable towards decentralization and people’s participation. They are used to executing plans framed at the top and handed down to the lower levels. In the changed situation, they will have to learn to work with people’s representatives who will have more and more say in the formulation of policy and plans.

Political or Democratic Decentralization

In its perfect form, the concept of decentralization becomes the same as democratic decentralization. Now all people take part in the planning process.When only the elected representatives of the people take part in the process, it is called “partial decentralization”. When all sections of the population are empowered to take part in local affairs of the community, it is called “total decentralization”.

There are three major components of political decentralization: Local autonomy, Devolution and Political Participation.

Local Autonomy:

The idea of local autonomy is based on the belief that the local community knows best where its interest lies and how to achieve them. They should be enabled to take decisions and initiate action with the minimum dependence on higher authorities.

Self-reliance and assertiveness are the key to such attainment by the local community.

Devolution:

Local autonomy will be primarily possible through devolution. Devolution simply means transfer of government powers, functions and resources to local authorities.

Local authorities will be given the power to take decisions and at the same time accept responsibility for those decisions. They cannot pass the responsibility to the government to escape. Devolution has to be accompanied with the deconcentration, which we discussed earlier.

Devolution is different from delegation of power. When power is delegated, the ultimate responsibility still remains with the government. In this case the local authority is still under control of the government and in every way subordinate to it.

Devolution is an orderly transfer of authority, resources and institutional capabilities to local authorities. Therefore, devolution in its true sense will not be possible in the absence of political willingness.

Devolution will enhance the capacities of the local authorities in the following ways:

(a) More programme responsibilities and resources will be transferred from the

government to the local authorities to match the legal duties and powers given to them.

(b) They will be empowered to generate their own revenue to reduce their dependence on government. (c) The capacities of local institutions will be enhanced to make policies and administer.

Public Participation

The ideal of democratic decentralization is achieved through people’s participation in the process of governance. This is made possible through the institution of local selfgovernment. Through the functioning of these elected bodies, people participate in the process of governance and learn to make democratic institutions stronger. They realize the importance of freedom and democracy more. In India democratic decentralization has been identified with “Panchayati Raj”. Although Panchayati Raj was established in the country soon after Independence, the Constitution did not provide for it in a proper manner. The state governments played around with this important peoples’ institution according to their whims and selfinterest. Sometimes elections to these institutions were not held for long periods and they enjoyed very little power. This gap in the constitution has been filled with 73rd Amendment and the 74th Amendment. Now the Constitution envisages the establishment of Panchayati Raj institutions as units of local self-government in different states.

CONCLUSION

In this unit you have learnt how to define decentralized planning and how to differentiate it from centralized planning.

We traced the evolution of decentralized planning from 1951 up to the present times.

It began with the Community Development Project and went through ups and downs during the last 50 years. The 73rd and 74th Amendments to the Constitution have put new life into decentralized planning by strengthening the Panchayati Raj institutions through constitutionalization.

We discussed the different dimensions of decentralized planning like functional, financial, administrative and political decentralization. All these dimensions of decentralization must be realized if decentralized planning is to function successfully.