Decentralization

What is Decentralization?

The transfer of authority and responsibility for public functions from the central government to subordinate or quasi-independent government organizations and/or the private sector.

Historical Background

Decentralization has been a recurring theme in Indian governance, particularly after the 73rd and 74th Constitutional Amendment Acts (1992), which aimed to empower local self-governments (Panchayats and Municipalities). The concept has roots in the Gandhian vision of Gram Swaraj.

Key Points

9 points

1.
Transfer of power and resources from central to local levels.
2.
Empowerment of local communities in decision-making.
3.
Improved responsiveness to local needs and preferences.
4.
Increased accountability and transparency in governance.
5.
Promotion of participatory development.
6.
Can be fiscal, administrative, or political.
7.
Fiscal decentralization involves transferring financial resources to local bodies.
8.
Administrative decentralization involves delegating administrative functions.
9.
Political decentralization involves transferring political authority and decision-making power.

Recent Developments

5 developments

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Emphasis on strengthening local self-governments through capacity building.

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Increased focus on participatory planning and budgeting at the local level.

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Use of technology to improve transparency and accountability in local governance.

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Challenges in effective implementation due to lack of resources and capacity.

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Debate on the optimal level of decentralization for different functions.

Source Topic

Noida to Get Metropolitan Corporation: UP Cabinet Discusses Proposal

Polity & Governance

UPSC Relevance

Important for UPSC GS Paper 2 (Governance, Constitution, Polity, Social Justice & International relations), particularly in topics related to federalism, local governance, and public administration. Understanding decentralization is crucial for analyzing the effectiveness of government policies and programs at the grassroots level.