‘Constant efforts needed for effective local governance’

Challenges unfolding in Kerala call for transformation of the local democracy and development, according to development economist MA Oommen.

Decentralised governance should find a place in the planning and implementation strategy of agriculture, animal husbandry, health, drinking water and waste management as a natural and organic part of the development process.

Serious deficits This is a process that unfolds over time, Oommen said while delivering the K Ramachandran Nair Memorial Lecture at the University of Kerala.

Constant and continuing efforts are required to make local governance beautiful and great. Democracy virtually dies when corporates and vested interests fund political parties and do backseat driving.

An important issue that signifies serious deficits in the practice of democracy and development in Kerala is the plight of adivasis and dalits.

However, it is noteworthy that during the last quarter of a century, the local governments in Kerala have registered phenomenal growth from ₹247 crore in 1993-94 to over ₹10,980 crore in 2013-14, a jump from 0.9 per cent to 2.4 per cent of the Gross State Domestic Product.

Exactly two decades ago, the then government made the momentous decision to devolve 35- to 40 per cent of the State Plan Fund to the local governments.

Sen Committee This was followed by the appointment of the Committee on Decentralisation of Power to facilitate the devolution of functions, funds and functionaries to the local governments.

The defining feature of local governance here is the decentralised planning which has attracted the attention of scholars and policy makers around the world.

Even so, Oommen noted that the emerging scenario shows a highly routinised and bureaucratically controlled situation and demands drastic reforms.

Twenty years have passed since the first Development Report was prepared and published by the local governments. But no attempt has been made to produce a second report with a renewed data base. This should be the starting point for reform, he emphasised.

Building the data base which is essential for efficient development planning still remains a poor priority.

Poor budgeting Various reforms introduced as part of the People’s Plan Campaign to strengthen the accountability mechanisms are also virtually dysfunctional. A major deficiency is the absence of a stable and sound financial reporting system.

We do not have a reliable, comparable and consistent data relating to income and expenditure. There is no balance sheet that each local body should place before the public. The Budget, which is the most important instrument of financial control at the union and state level, is not seriously pursued at the local government level.

It is quite often passed in a single day before March 31, and is not an instrument of financial control. The new government may have to address this vital problem.

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