Decentralization of Power | Sociology Optional for UPSC (Notes) PDF Download

Decentralization

The concept of decentralization has been a subject of significant discussion among those involved in governance, particularly as democracy has become the preferred form of government in the modern world. Decentralization refers to the distribution of decision-making authority within institutions and organizations, allowing lower levels to participate in the process.

• This approach is considered democratic because it is based on the fundamental principles of democracy and democratization. Decentralization can take various forms, such as political, administrative, and financial. Advocates argue that decentralization is crucial for the effective functioning of a democratic system at multiple levels, as it empowers traditionally marginalized and underprivileged social groups.
• Decentralization is especially necessary in a country like India, which is vast in size and has complex socio-cultural dynamics. India is characterized by diversity in religion, language, culture, and economy. As a result, the geographical and social intricacies of the country necessitate decentralization for planning and administration purposes.
• The importance of decentralization in India has been recognized for a long time, and efforts have been made to implement it. Following independence, decentralization became especially critical in achieving the goals of democracy and development. 

Panchayati Raj Institutions

The Panchayati Raj Institutions (PRIs) have a long history in India, dating back hundreds of years. These institutions are self-governing bodies at the village level, where a group of five individuals, known as the panch, make collective decisions for the village. The Indian villagers have immense faith in the panch, often referring to them as panch parmeshwar, which signifies that God speaks through these five individuals. The system of making collective decisions through the panch is known as Panchayat.

• The growth of Panchayat in India as a self-governing institution has not been steady over the years. However, the ideals of Panchayat were revived when Mahatma Gandhi arrived on the national political scene. He believed that village panchayats would be a vital force in the country and that India would enjoy self-government suited to its requirements.
• Despite its importance in India's freedom struggle, Panchayat did not acquire a central place in the Indian Constitution when the country gained independence. It was only included in Article 40 under the Directive Principles of State Policy, which states that the government should take steps to organize village panchayats and endow them with necessary powers and authority to function as units of local self-government.
• In the years following independence, an ambitious development program for rural areas known as the Community Development Programme (CDP) was launched, covering almost all aspects of rural development. However, the program could not achieve its goals fully, prompting the government to appoint a study team led by Balwantrai Mehta, a Member of Parliament at the time, to review its causes. The study team concluded that the lack of people's participation in the program was the primary reason for its limited success and recommended the creation of institutions based on the principle of democratic decentralization to facilitate people's participation in development programs.
• As a result, a three-tier Panchayati Raj system was established in the country, with panchayats at the village (Village Panchayat), block (Panchayat Samiti), and district (Zila Parishad) levels. By 1959, all Indian states had passed Panchayat Acts. The Ashok Mehta Committee also reviewed the functioning of the Panchayati Raj structure and proposed a two-tier system for grassroot governance, but the government did not accept this recommendation, and the three-tier system proposed by the Balwantrai Mehta Committee remained in place.
• For over two decades, the Panchayati Raj institutions continued to function with varying degrees of success. While some states effectively contributed to development activities, others saw conflicts and rivalries among various caste groups for control of power in these institutions. Moreover, these institutions often failed to benefit the weaker sections of rural society, primarily due to their weak organizational structure.
• In the absence of any legal binding, regular elections to panchayats were not held, and no financial power was given to these institutions. Government officials maintained significant control over Panchayat representatives, stifling initiative and interest in the Panchayati Raj institutions. This stagnation and decline persisted until the early 1990s when steps were taken to revitalize these institutions, emphasizing the importance of decentralization of power and active participation of the people in local governance.

Recent Efforts - Recent Developments in Panchayati Raj Institutions

The Panchayati Raj system in India has undergone significant changes in recent years, with the introduction of the 73rd Constitutional Amendment in 1993. Prior to this amendment, Panchayats only had a marginal reference in the Directive Principles of the State Policy, with no constitutional status. The 73rd Amendment has transformed the Panchayati Raj system by granting it constitutional status and providing a uniform structure across the country. This has been seen as a revolutionary step in establishing grassroots democracy in India.

Key Features of the 73rd Constitutional Amendment:

• Recognition of Panchayats as 'institutions of self-government': The amendment acknowledges the importance of Panchayats in India's democratic setup and empowers them to function as self-governing institutions.
• Entrusting Panchayats with the responsibility of economic development and social justice: The amendment mandates Panchayats to prepare plans for economic development and social justice in their respective areas, thus emphasizing their role in overall development.
• Establishment of a uniform three-tier system: The amendment provides for a consistent three-tier structure of Panchayats at the village, intermediate (block/Taluka), and district levels for all states with a population of over twenty lakh.
• Guidelines for structure, powers, functions, finance, elections, and reservations: The amendment outlines the structure, powers and functions, financial resources, election process, and reservation of seats for weaker sections in Panchayats, ensuring a comprehensive and uniform framework across the country.

The implementation of the 73^rd Constitutional Amendment has led to a high degree of uniformity in the Panchayati Raj system across India. All states have now passed legislation that conforms to the provisions of the amendment, marking a significant milestone in the history of Panchayati Raj institutions. In addition to the 73^rd Amendment, the Panchayats (Extension to the Scheduled Areas) Act, 1996, has been passed to extend the Panchayati Raj system to the tribal areas of Andhra Pradesh, Chhattisgarh, Gujarat, Himachal Pradesh, Jharkhand, Maharashtra, Madhya Pradesh, Orissa, and Rajasthan. This Act came into effect on December 24, 1996, and all the concerned states have passed laws to give effect to its provisions.

Structure and Composition

Panchayats, as intermediate bodies, exist at various levels, including village, intermediate, and district levels. The term "intermediate" refers to their position between the village and district levels. In the context of the Community Development Block, intermediate Panchayats may not be constituted if the population of a state does not exceed twenty lakhs.

• The Gram Sabha is a crucial component of the Panchayati Raj system, as it comprises all persons registered in the electoral rolls of a village within the Gram Panchayat's jurisdiction. Acting as a general body for the village Panchayat, the Gram Sabha ensures transparency and accountability within the system. All state Panchayat Acts provide for the establishment of a Gram Sabha, which must meet at least once every six months.
• For Panchayat elections, all seats are filled through direct elections from territorial constituencies within the respective Panchayat area. Each area is divided into specific territorial constituencies for this purpose. The chairperson of a village-level Panchayat is typically elected by the voters of that Panchayat. However, the chairpersons of intermediate or district-level Panchayats are elected by and from among the elected members themselves.

Reservation of Seats

• In every Panchayat, seats are reserved for Scheduled Castes (SC) and Scheduled Tribes (ST) in proportion to their population in the Panchayat area. Additionally, states can decide to reserve seats for Other Backward Classes (OBC) citizens as well.
• A minimum of one-third of the total number of seats filled by direct election is reserved for women, including those from the SC and ST categories. This ensures adequate representation for women in the Panchayats.
• The positions of Chairperson in Panchayats at various levels are also reserved for SC, ST, and women candidates. The number of reserved positions for SC and ST candidates is determined by their population, while for women, it is at least one-third of the total number of positions at each level.

Duration of Panchayats
The term of a Panchayat lasts for five years from the date of its inaugural meeting. Elections to form a new Panchayat must be held before the completion of this five-year period. However, the State government has the authority to dissolve a Panchayat before its term ends. In such situations, elections to establish a new Panchayat must be conducted within six months from the date of dissolution. 

Powers and Responsibilities of Panchayats

The powers and responsibilities of Panchayats are aimed at enabling them to function as institutions of self-government. These powers are primarily focused on two main areas: (a) preparing plans for economic development and social justice, and (b) implementing schemes for economic development and social justice. The Eleventh Schedule of the Indian Constitution lists various subjects in relation to these schemes that Panchayats at different levels can undertake. Some of the major subjects include:

• Agriculture: Panchayats play a significant role in land improvement, implementing land reforms, land consolidation, and promoting sustainable agricultural practices.
• Minor irrigation and watershed development: Panchayats are responsible for managing small-scale irrigation projects and promoting watershed development initiatives for sustainable water management.
• Animal husbandry and fisheries: Panchayats are involved in the development and management of animal husbandry and fisheries sectors at the local level.
• Social forestry: Panchayats promote social forestry initiatives aimed at enhancing the local environment and providing livelihood opportunities.
• Small scale industries, Khadi, village and cottage industries: Panchayats support the growth and development of small-scale industries, Khadi, and cottage industries to generate employment and promote economic growth at the local level.
• Drinking water, rural housing, and infrastructure development: Panchayats are responsible for ensuring the availability of drinking water, promoting rural housing schemes, and constructing and maintaining local infrastructure such as roads, culverts, and bridges.
• Rural electrification: Panchayats play a crucial role in promoting and ensuring rural electrification for the overall development of rural areas.
• Poverty alleviation programs: Panchayats are responsible for implementing and monitoring various poverty alleviation programs aimed at uplifting the socio-economic status of the rural poor.
• Education and cultural activities: Panchayats are involved in promoting education, including primary and secondary schools, and preserving and promoting local cultural activities.
• Health and sanitation: Panchayats play a crucial role in ensuring health and sanitation facilities in rural areas.

Besides these provisions, the Constitution has made other provisions to strengthen Panchayati Raj institutions:

• Panchayats have been authorized to levy, collect, and appropriate taxes and fees to ensure financial autonomy.
• A Finance Commission must be constituted by every state to review the financial position of Panchayats and recommend measures for their financial sustainability.
• A State Election Commission, consisting of a State Election Commissioner, is to be appointed in every state to conduct elections for Panchayats, ensuring fair and transparent electoral processes.

Nagara Palika and The 74^th Amendment

The 74th Amendment Act, also known as the Nagar Palika Act, was introduced in the Indian Constitution in 1992 to provide a framework for urban local self-government. This amendment aimed at ensuring efficient and democratic governance in urban areas, which led to the establishment of various municipal bodies. The Act received the assent of the President on April 20, 1993.

According to the 74th Amendment Act, three types of municipalities can be constituted:

1. Nagar Panchayats: These are established in areas transitioning from rural to urban.
2. Municipal Councils: These are set up in smaller urban areas.
3. Municipal Corporations: These are established in large urban areas.

The Act has introduced several provisions to strengthen these municipal bodies, such as fixed duration of municipalities, the appointment of State Election Commission, the appointment of State Finance Commission, and the constitution of metropolitan and district planning committees. All Indian states have implemented these provisions.
The 74^th Amendment Act also added the 12^th Schedule to the Indian Constitution, which outlines the responsibilities of the municipalities. These responsibilities include:

1. Urban planning and town planning.
2. Regulation of land use and construction of buildings.
3. Planning for economic and social development.
4. Maintenance of roads and bridges.
5. Provision of water supply for domestic, industrial, and commercial purposes.
6. Fire services.
7. Urban forestry, environmental protection, and promotion of ecological aspects.
8. Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded.
9. Slum improvement and upgradation.
10. Urban poverty alleviation.
11. Provision of urban amenities and facilities such as parks, gardens, and playgrounds.
12. Promotion of cultural, educational, and aesthetic aspects.
13. Management of burial and cremation grounds, including electric cremation.
14. Maintenance of cattle ponds and prevention of cruelty to animals.
15. Vital statistics management, including registration of births and deaths.
16. Public amenities maintenance, including street lighting, parking lots, bus stops, and public conveniences.
17. Regulation of slaughterhouses and tanneries.

Conclusion

Decentralization is a critical aspect of India's democratic system, with the Panchayati Raj Institutions and Nagar Palika playing crucial roles in empowering local self-governance. The 73rd and 74th Constitutional Amendments have significantly strengthened these institutions by providing them with constitutional status, uniform structure, and guidelines for their functioning. These amendments have not only enhanced grassroots democracy but also enabled better planning and implementation of various socio-economic development activities in both rural and urban areas. As aspiring civil servants, it is essential to understand the importance of decentralization and the role of these institutions in India's diverse socio-cultural landscape.

Frequently Asked Questions (FAQs) of Decentralization of Power

What is the main purpose of decentralization in India?

Decentralization in India aims to distribute decision-making authority within institutions and organizations, allowing lower levels to participate in the process. This is especially important in a country like India, with its vast size and complex socio-cultural dynamics, to ensure effective governance and empower traditionally marginalized and underprivileged social groups.

What is the significance of the 73^rd Constitutional Amendment in the context of Panchayati Raj Institutions?

The 73^rd Constitutional Amendment granted constitutional status to Panchayati Raj Institutions, providing a uniform structure across the country and recognizing them as 'institutions of self-government'. This amendment also entrusted Panchayats with the responsibility of economic development and social justice, and provided guidelines for structure, powers, functions, finance, elections, and reservations.

What are the key responsibilities of Panchayats at the village, intermediate, and district levels?

Panchayats are responsible for preparing and implementing plans for economic development and social justice in their respective areas. Some major subjects they are involved in include agriculture, minor irrigation and watershed development, animal husbandry and fisheries, social forestry, small scale industries, drinking water and rural housing, rural electrification, poverty alleviation programs, education and cultural activities, and health and sanitation.

How does the 74^th Amendment Act, also known as the Nagar Palika Act, impact urban local self-government in India?

The 74^th Amendment Act provides a framework for urban local self-government, ensuring efficient and democratic governance in urban areas. The Act led to the establishment of various municipal bodies, including Nagar Panchayats, Municipal Councils, and Municipal Corporations, and introduced provisions to strengthen them, such as fixed duration, appointment of State Election Commission, appointment of State Finance Commission, and constitution of metropolitan and district planning committees.

What are some key responsibilities of municipalities as outlined by the 12^th Schedule of the Indian Constitution?

Municipalities are responsible for urban planning and town planning, regulation of land use and construction of buildings, planning for economic and social development, maintenance of roads and bridges, provision of water supply, fire services, urban forestry and environmental protection, safeguarding the interests of weaker sections of society, slum improvement and upgradation, urban poverty alleviation, and maintenance of public amenities such as parks, gardens, and playgrounds.