Download The Republic of INDIA

The Republic of INDIA
Surface Area (1997)
3,287,590 km2
Population (1999) in millions
997.515
Population Growth (1999)
2 % p.a.
Urban Population (1999)
28 % of total
Population Density (1997)
324 inh./ km2
Government Revenue (1999)
15.5 % of GDP
Government Expenditure (1999)
15.5 % of GDP
GDP (1999) in billions
US$ 459.765
GNP (1999) in billions
US$ 442.23
GNP per capita (1999)
US$ 450
Monetary Unit
Indian Rupee
Human Development Indicator (1998)
0.563
HDI Rank out of 174 countries
128
A. General Information
Geography, Topography and Climate
India forms the South Asian subcontinent, surrounded by the Arabian Sea in the
West, the Lakshadweep Sea in the South and the Bay of Bengal in the East. It faces
closely with Sri Lanka by the Gulf of Mannar in the South. It borders on Bangladesh,
Bhutan, Burma (Myanmar), China, Nepal and Pakistan by land. (India currently has
border disputes with China and Pakistan in the North.) The topographic
characteristics of India include (a) the Deccan Plateau in the South, (b) the West and
East Ghats, hills on the two sides of the triangle-shape Deccan, (c) Himalaya
Mountains in the North, (d) relatively flat plain along the Ganges River in the
Northeast, and (e) some deserts observed in the West. India is in the tropical
monsoon climate in the South and temperate climate in the North, with three main
seasons of hot, wet (monsoon period) and cool. There are two types of monsoon
rains, one originating from the Northeast and the other, main one, from the
Southwest of the subcontinent. The main rain starts around May to June and last until
around October.
2
Characteristics and Recent Evolutions of Political System
Having achieved the independence in 1947 from the British colonial rule, the
Republic of India adopted a federal republic system of governance. Its executive
branch consists of President as Head of State, Prime Minister as Head of
Government, and Cabinet as Council of Ministers (appointed by President upon
recommendation of Prime Minister). The Legislative branch of the system is
undertaken by bicameral parliament, composed of the Council of States (not more
than 250 members, of which 12 are appointed by President, and the rest chosen by
the elected members of the state and territorial assemblies) and the People's
Assembly (545 members, of which 2 are appointed by President, and the rest elected
by people). The judicial branch is undertaken by Supreme Court, with judges
appointed by President, who serve until the age of 65. The main political parties
include the Bharatiya Janata Party or BJP, a Hindu nationalistic party currently
leading the coalition government, and the Congress Party, a major opposition party to
the BJP Government.
The administrative entities in the Republic can be identified broadly by three levels:
(1) 25 states and 7 unions (including a group of islands and big cities), each
administered by State Government and Union Government respectively, (2) zila
(districts) composed of blocks, which are administered by local governance
institutions called parishad (at zila level) and panchayat (at block level) respectively,
and (3) 579 000 gram (villages), administered by gram panchayat, each covering 2-3
villages on average. Each gram panchayat is accompanied by gram sabha, general
assembly of villagers in charge of making decisions on development
programs/projects to be undertaken by gram panchayat, monitoring of, and
recommending remedial measures on, gram panchayat's performance. The focus of
the decentralization program in India is the three-tier local governance system called
panchayati raj, at district, block and village levels. There are 457 panchayat at district
level, 5 736 at block level and 226 108 at village level.
Agriculture in India
Agricultural sector represents 25.5% of the GDP in India, constantly declining from
44.5% in 1970 and 38.1% in 1980. Yet, agriculture offers income and livelihood
opportunities to more than 55 % of the population. In terms of trade, agriculture
3
contributes slightly over 15% of the total export earnings, and the export-import
balance of agricultural produces has been positive. Main agricultural produces in
India include rice, wheat, coarse cereals, pulse, oilseeds, cotton and sugarcane,
besides vegetables and fruits (notably coconut). In 1998-1999, the growth of
sugarcane production and the decline of oilseed and pulse production are observed
in particular, and the overall decrease of food grain production (by about 2%) in
general. The latter phenomenon is largely attributed to the cyclone in 1999 (Super
Cyclone of Orissa), which developed into severe storms with heavy rains, and
stationed for a while on the subcontinent. On the other hand, rainfall deficiency in the
1999 monsoon resulted in the negative prospects for oilseeds and coarse cereals
production in almost all over the country. In response to the calamity, an InterMinisterial Coordination Group was set up for relief operation, including the release of
National Calamity Relief Fund, under the Department of Agriculture and Cooperation,
the Ministry of Agriculture.
Economic Situation
India experienced economic crisis in the early 1990s, which is attributed largely to the
past policies, coupled with the incidental 'oil shock' related to the Gulf War. It became
the turning point for the Government of India (GOI) to adopt liberalization-oriented
economic policies in industry, trade, investment and exchange rate regime. GDP
growth registered about 7.8% in 1997, far up from less than 1% in 1992. However,
the rate dropped to 6.8% in 1998 and 6.5% in 1999, revealing the fluctuating
agricultural production and sluggish industrial performance, together with the longstanding basic-infrastructure problems. Positive economic prospect can be sought in
the relatively stable exchange rate, relatively small external debt against its GDP,
adequate foreign exchange reserves and strong demand for, and actual expansion
of, high technology export, particularly computer software. Whether India can fully
exploit its opportunities in the global economy would depends on the accelerated
implementation of the government's structural reform. The GOI made at best slow
progress in privatizing public enterprises and deregulating economic sectors,
including heavily controlled agricultural- and related secondary and tertiary sectors.
The GOI continues to target at these structural reforms, as stipulated in the 9th Five
Year Plan (1997-2002).
4
B. Process of Decentralization in Course
History, Objective and Responsible Agencies
The current decentralization efforts in India originate from an evaluation of
Community Development and National Extension Programs in early-1950s. These
programs aimed at assisting the people's own efforts to develop their communities
with government fund, through establishing facilities for improved agricultural
production and delivery systems of agricultural and social services. Recognizing the
need for village-level institutions that represent local communities in these
development processes, an evaluation committee of the two programs recommended
to introduce the panchayat system (panchayati raj) at zilla (district), block and gram
(village) levels during the late-1950s to early-1960s. Yet, the panchayat institutions
remained largely under the government control, without financial capacity nor
effective representation mechanism. It was not until 1992 that the three-tier local
governance system was recognized by Constitution. The 73rd Constitution
Amendment Act, effective since 1993, provided panchayat institutions a number of
responsibilities and the accompanying power in diverse areas --- at least on paper. In
empowering the panchayati raji Institutions (PRIs), special attention was paid to the
socially disadvantaged groups identified as the Scheduled Castes and the Scheduled
Tribes, as well as women. At each of the three levels, elections are made mandatory
to form panchayat, with special reservation for the representation of women and
Scheduled Castes. For the tribal communities, a separate Panchayat Act on was
legislated in 1996. The objective of this panchayat-based decentralization efforts
stipulated Constitution is to achieve 'social justice' and 'economic development' in
respective jurisdiction. Thus the objective of decentralization is inseparable from that
of local development. A key responsible agency in the decentralization process is
State Government. The direction and pace of decentralization at district, block and
village levels depends on enactment and implementation of the Panchayat Act by the
governments of each states/unions, in accordance with the 73rd Constitutional
Amendment Act legislated in 1992.
Functions, Resource and Autonomy of Decentralized Entities
The main functions of panchayat are preparation and implementation of development
programs. The issue areas of such development programs are specified in the 11th
5
Schedule of the Constitution of India, whereas those of State Government are
defined in the 7th Schedule. The panchayat''s development program responsibilities
cover 29 social and economic areas, including agriculture, fishery, social-/agroforestry, livestock farming, basic infrastructures and social services such as
electricity, drinking water, welfare for the mentally retarded/physically disabled,
education, health care and sanitation. Some targeted programs are also delegated to
panchayat, such as women and children development and poverty alleviation. At zila
(district) level, local governance institution is particularly called zila 'parishad'. The
1993 Constitutional Amendment Act provided zila parishad the capability to
undertake the functions of the District Rural Development Agencies (DRDA) that has
been planning various government-funded programs. While such responsibilities as
selection, approval and funding of development projects are carried out by zila
parishad, project implementation is done by other agencies such as local
cooperatives, non-governmental organizations (NGOs), and public sector agencies.
In terms of finance, panchayat at each of the three levels are authorized to raise
funds through taxes, duties, tolls and fees, besides program-specific grants from
national and state governments. Although financial autonomy of panchayat is
guaranteed in association with a number of transferred responsibilities by the 73rd
Constitutional Amendment Act, actual exercise of the autonomy is compromised by
state governments' resistance to 'power transfer' in each local context of
political/economic conflict of interests.
C. Decentralization and Rural Development
The Form of Decentralization and
Agricultural and Rural Development Policies
In the domain of agricultural and rural development policies, main and active public
agencies in promoting the decentralized system of development activities include the
Department of Rural Development (DORD) of the Ministry of Rural Development
(MORD, renamed from the Ministry of Rural Areas and Employment in 1999) and the
Council for Advancement of People's Action and Rural Technology (CAPART), an
organization registered with DORD for voluntary development agencies coordination,
and to a lesser but certain extent, the Department of Agriculture and Cooperation
(DOAC) and the National Cooperative Development Corporation (NCDC) under the
6
Ministry of Agriculture (MOA) as well. Some significant MORD/CAPART interventions
in agricultural and rural development include the Jawahar Rozgar Yojana (JRY), a
public works program for employment generation and community- and social asset
building, and Integrated Rural Development Program (IRDP), a subsidized credit
program for self-employment promotion and agricultural and rural industrial asset
building. Following the 73rd Constitutional Amendment Act, panchayat hold power
and responsibilities to undertake the JRY, while they are in charge of beneficiary
identification for the IRDP. However, this largely remains de jure provision that is not
always reflected in de fact functioning of panchayat in the field. Prior to the 73rd
Constitutional Amendment Act, and to a large extent until today in practice, the
MORD-sponsored development programs, including the above-mentioned JRY and
IRDP, have been managed by the District Rural Development Agency (DRDA), which
is a state-level MORD field agency. The functions and associated power of this
government agency can be transferred to local political institutions, mainly zila
parishad (district-level panchayat), and in some elements, block- and gram
panchayat. The devolutionary change, meant by the 73rd Constitutional Amendment
Act, can take place with the political commitment of respective State Government
amongst other factors: at present, there are considerable differences from state to
state in the actual transfer of responsibilities and associated power from state to
lower levels.
Agricultural Support Services and Decentralization
According to the 11th Schedule that defines the 29 responsibilities of panchayat,
some elements of agricultural support services are to be delegated from respective
state governments, which include agricultural extension, minor irrigation and
technical training. If centrally-sponsored programs are available in these areas,
panchayat are eligible to receive fund via state governments, and able to plan and/or
implement projects and programs accordingly. Besides the panchayati raj institutions
(PRIs), the role of non-governmental development organizations (NGOs),
cooperatives and self-help groups are also paid attention in the context of
decentralization. Formerly government-managed irrigation organizations, for
instance, were by now taken over by farmers' organizations at local level. The earliermentioned Council for Advancement of People's Action and Rural Technology
(CAPART) has been encouraging NGOs, amongst others, in the implementation of
7
development programs and projects. For cooperatives, the need for their greater
autonomy from state governments is being addressed. One of the opportunities
recognized for cooperatives and other local organizations and voluntary agencies is
to link them with the PRIs, instead of state governments, in planning and monitoring
on efficient and effective service delivery, education and training and resource
mobilization etc. at local level. Greater participation of private sector, as well as
NGOs, is addressed in the technology dissemination component of the National
Agricultural Technology Project (NATP) under the Department of Agriculture and
Cooperation (DOAC), which was started on pilot basis for strengthening extension
functionaries' capacities and restructuring public extension services.
Enabling Policies, Constraints and Evaluation of
the Decentralization Process
At present, 'comprehensive' policy measures to enable and further promote the
decentralization process as a whole is not in place at any administrative level. At
state level, there is a financial monitoring and evaluation (M&A) mechanism set up
under the 73rd Constitutional Amendment Act i.e. the State Finance Commissions
(SFCs). Besides reporting on the financial situations of panchayati raj institutions
(PRIs), the SFCs make recommendations as regards to the financial powers of
panachayat. At the level of central government, the Monitoring Division (Policy and
Planning Section) of the Ministry of Rural Development (MORD) has established a
M&A system for the MORD/CAPART programs and projects at local level. Since the
MORD/CAPART projects and programs incorporate PRI system in its decentralized
planning and implementation, the M&A system of the MORD could serve for an
overall assessment of decentralization process in connection with project/program
planning and implementation. The
decentralization process is curtailed by various factors, both on the part of the local
communities (e.g. lack of, or limited knowledge on devolved functions and powers of
panchayat and associated rights and responsibilities) and state-level governments
and local élites (e.g. political commitment, tendency to preserve or enhance own
vested interests etc.), besides resource- and skill constraints at any levels
(particularly at gram level) to achieve decentralization in a sustainable manner.
8
Prospect
The India's experience in decentralization reveals the difficulty of actually and
effectively applying the progressive legislation, the 73rd Constitutional Amendment
Act, at state and lower levels, which was passed at the national level. While private
sector/NGO participation is increasingly emphasized as a strategy to step forward,
concurrent nationwide/inter-state dissemination of the field experiences between
central/state/local governments (panchayat), local communities and catalytic actors
(NGOs and private sector agencies) could be enhanced in furthering the
decentralization process.