Section-I

Q1.

Define Democratic Decentralisation and discuss its evolution in India.

Decentralization can be defined as transfer or dispersal of decision making powers, accompanied

by delegation of required authority. Democratic decentralization envisages association of more
and more people with government at all levels, national, regional and local.
During the period of British domination of India there was no particular urge for economic and
social development except only those activities necessary for safeguarding the rule.
After independence some leaders believed that Indias nationhood should be a representative
democracy. But Mahatma Gandhis development discourse hinged on a village based
participatory democracy embedded in his vision of the Panchayati Raj.
Rural local governments, in the form of Panchayats, were included in Directive Principles of the
State Policy (Article 40). It stated that the states shall take steps to organize village Panchayats
and endow them with such powers and authority as may be necessary to enable them to function
as units of self-government.
The Balwant Rai Mehta Committee (constituted to study the impact of CD Programme and
National Extension Service), in 1957, observed that the countrys development cannot progress
without the co-location of responsibility and power at even the lower tiers of Government. The
committee further observed that the character of the development programmes should change
from Governments programme with peoples participation to peoples programme with
Governments participation.
All the states enacted Panchayat Acts and by 1960 Panchayats were established throughout India.
But in the absence of appropriate statutes defining the role, functions, duties, authorities and
powers, the Panchayats were not successful enough to ensure de facto involvement of people in
development programmes. In most cases, Panchayats came about to be nothing more than the
State Governments agency for implementation of a few programmes, and delivery of a few
services.
This led to the 73rd amendment of the Constitution in 1992, given effect from April 24, 1993. It
declared the Panchayats as units of self-government, directed the states to devolve functions of
29 subjects directly related to social and economic development of an area, made provisions for
resource sharing between the Panchayati Raj Institutions (PRIs) and Governments, regular
elections to local bodies, reservation of socially disadvantaged classes and women etc.
In order to make sure that the people can have a say in the process of local governance. The
institution of Gram Sabha was given high importance. Consultation with the Gram Sabha on
all important matters including planning and implementation of development programmes was
made a necessary requirement.

The government of India appointed a committee headed by Dileep Singh Bhuria to work out the
details as to how structures similar to panchayati raj institutions can take shape in tribal and
scheduled areas. The committee suggested a Block / Taluk Level Body. In accordance with the
recommendations of the Bhuria Committee, an Act was passed on 24th December 1996
extending the provisions of part-IX of the Constitution relating to the Panchayats to the
scheduled areas.
In the year 2004 the Ministry of Panchayati Raj was again constituted. It held seven Round
Tables with State Ministers of Panchayats and compiled, as a series of recommendations,
measures for effective devolution of authority to the Panchayats and removal of obstacles in the
way of their proper functioning.
Q3.

Examine different fields of partnership between Union and State Governments.

The Constitution in its very first article describes India as a Union of States. The relationship
between the Union and the States is a relationship between the whole body and its parts. It is felt
that the real source of many of our problems is the tendency of centralisation of powers and
misuse of authority.
The assignment of taxes by jurisdiction depends partly on the mix of various taxes used in the
country overall. Governments almost universally employ balanced tax systems which have the
feature that different taxes apply to basically the same bases.
These same general considerations apply in the case of assigning taxes in a federal government
system. Efficiency and equity arguments have to be tempered by administrative considerations,
and the exact assignment depends upon informed judgment. They are as follows:
Efficiency of the Internal Common Market
The internal common market will be functioning efficiently if all resources (labor, capital, goods,
and services) are free to move from one region to another without impediments or distortions
imposed by policy.
National Equity
The tax-transfer system in one of the main instruments for achieving redistributive equity. The
argument for making equity a federal objective is simply that all persons ought to enter into
society is a social welfare functional on an equal basis. As with the efficiency case,
uncoordinated state tax policies may unwittingly induce arbitrary differences in redistributive
consequences for residents of different states.
Industrial Policy Reforms and Investment

The new Industrial Policy of 1991 promoted investment, both domestic and foreign, through derestriction of domestic production and investment. A number of measures have since been taken
to further ease the process of private participation in investment.
Investment Incentives
Central Government investment incentives:
100 per cent profit deduction for developing, maintaining and operating infrastructure facilities.
Tax exemption of 100 per cent on export profits for ten years.
Deduction in respect of certain inter-corporate dividends to the extent of dividend declared.
Various capital subsidy schemes and fiscal incentives for expansion in the north- eastern
region.
Fiscal Need
Maintaining fiscal responsibility is critical. Local governments must have adequate revenues
either raised locally through taxes or transferred from the centre as well as the authority to
decide on spending.
To ensure accountability, revenue means should be matched as closely as possible to revenue
needs. In countries with a federal level VAT, it may be too cumbersome to have sub-national
sales taxes. In such circumstances, the fiscal need criterion would allow subnational governments
access to taxes which are traditionally regarded as more suitable for national administration, such
as personal income taxes.
Expenditure responsibilities of both central and local governments must be made legally explicit
to enhance accountability and reduce overlap. The legal framework ought to clearly establish the
formula for calculating transfers, to ensure predictability and avoid protracted, destabilising
political bargaining. Indeed, the tax- transfer system is one of the main instruments for achieving
redistributive equity at the national level.
Fiscal Incentives - Centre & States
The change in the industrial regime in the post liberalisation period was coupled with a range of
fiscal incentives offered by both the Central and State Governments. Both the Centre and the
States promote investment through general fiscal incentives for industries.
Q5. Write short notes on the following in 250 words each:
a) Concept of empowerment
Empowerment is the process of obtaining basic opportunities for marginalized people,
either directly by those people, or through the help of non-marginalized others who share

their own access to these opportunities. It also includes actively thwarting attempts to
deny those opportunities. Empowerment also includes encouraging, and developing the
skills for, self-sufficiency, with a focus on eliminating the future need for charity or
welfare in the individuals of the group. This process can be difficult to start and to
implement effectively.
The quest for genuine equality has laid greater emphasis on the collective rights of the
vast majority of the disadvantaged groups. The disadvantaged groups have been
subjected to varied kinds of social, economic and political exploitations, oppressions and
harassments. They have been treated less than human. it was felt that unless they are
empowered and assured representation in elected local institutions, their status in the
society cannot be improved. Accordingly, in order to improve their status and to ensure
their participation, different steps/measures were initiated by the Government which have
made the decentralised system more democratic.
The functioning of the PRIs and the ULBs during the last decade shows that the
participation of women, SCs/STs and OBCs in these bodies is considered essential not
only for ensuring their political participation in the democratic process but also for
realizing the developmental goals for them. The enactment of the 73rd & 74th
Amendment Acts, with a view to involve the disadvantaged groups in decision-making
provides psychological empowerment and a sense of political efficacy, to those who had
been left powerless, to influence public decision that affect them.
b) Bhagidari: A model of good governance
Bhagidari: The citizen-government partnership programme' was initiated in January 2000
based on the belief that government must work in partnership with the people. Bhagidari
literally means "collaborative partnership" and involves the participation of citizens, civil
society organisations and public representatives.
The Bhagidari project also involves people's participation in various institutions, skill
development and counseling services, initiatives for senior citizens, women, etc.
Bhagidari can be termed as a model of good governance. It attempts to go beyond the
norms and practices of the traditional administration and gives a new meaning to the
present day governance.
Bhagidari has brought a shift in this paradigm to a relationship where both the citizens
and the officials identify the solutions to the issues of common concern, work together to
implement the agreed solutions and improve the quality of life. It has helped in building a
feeling of ownership among the citizens as well as the government officials.
Resident Welfare Associations have come forward voluntarily to share responsibilities.
They are networking with other RWAs and bringing out newsletters- Bhagidari Masik

Patrika. Hence, with network management there is more cooperation and coordination in
finding and implementing solutions. A cooperative partnership has taken shape with
greater accessibility.
The Department of Personnel and Training, Government of India has introduced
performance appraisal for all officers of the Delhi Government on their specific
contributions during each year towards sustaining Bhagidari in the form of citizen-centric
administration.
The mechanism of feedback and review meetings held by the CMO with the RWAs and
Public Utility Departments has given the citizens an access to the CMO and to Heads of
Departments. This has created accountability and transparency.
SECTION-II
Q6.

Discus the evolution of Urban Local Government in India.

The roots of municipal administration in India can be traced to 1687, when a Municipal
Corporation was set up at Madras with a view to transfer the financial burden of local
administration to the local City Council. In 1850, an Act was passed for the whole of British
India permitting the formation of local committees to make better provisions for public health.
Lord Mayo's resolution of 1870 made arrangements for strengthening the municipal institutions
and increasing the association of Indians in these bodies.
Yet, it was Lord Ripon's Resolution of 18 May 1882 that was hailed as the Magna Karta of
government. However, these reforms were hampered by several factors such as the obstructive
tactics of domination of these institutions by the Deputy Commissioner and the hostile attitude of
Curzon, who succeeded Lord Ripon, towards local bodies.
The Government of India Act 1919 introduced the system of diarchy and the local selfgovernment became a transferred subject under the charge of powers of local bodies, lowered the
franchise, reduced the nominated element and extended the communal electorate to a larger
number of municipalities.
It was a failure because communal representation dampened the spirit of unity, the system of
diarchy was very confusing and the municipal personnel were untrained. Lastly, the Government
of India Act 1935 which emphasized provincial autonomy again declared local government as a
provincial subject. The Act earmarked no taxes for local bodies.
The Constitution of India, which came into force on 26 January 1950, directs the state through
Article 40 to organize panchayats. The Central Government has, from time to time, showed its
concern for the need to improve the urban bodies by appointing several commissions and
committees.

In August 1988, the Government set up the National Commission on Urbanisation (NCU), under
the chairmanship of C.M. Correa, with the purpose of reviewing and analysing the urbanisation
process and formulating policies for integrated urban development. The commission examined
several issues and problems relating to urban government. Some of these related to urban
management, spatial planning, resource allocation, urban housing, conservation, urban poverty,
legal framework, information system etc.
The year 1985 proved to be a landmark year as, during that year, the Ministry of Urban
Development was set up at the Union level.
The Constitution 65th Amendment Bill sought to ensure municipal bodies being vested with
necessary powers and removing their financial constraints to enable them to function effectively
as units of local government. It also envisaged granting of urban bodies with a constitutional
status.
The Constitution (74th Amendment) Act, 1992 is a landmark initiative of the Government of
India to strengthen local self-government in cities and towns. It is built upon the premise that all
power in a democracy rightfully belongs to the, people. It prescribes that the elected
municipal representatives must have a decisive role in the planning, provision and delivery of
civic infrastructure and services.
The 74th Amendment Act aims transformation in the structure of urban service delivery. The
starting point for the same is municipal governance. The Act envisages three types of
Municipalities: Municipal Corporations for large cities, Municipal Councils for smaller cities and
towns, and Nagar Panchayats for areas in transition from rural to urban.
Q9.

Define Sustainable Development and identify inter-linkages between sustainable

development and governance.

Sustainable development is a process for meeting human development goals while sustaining the
ability of natural systems to continue to provide the natural resources and ecosystem
services upon which the economy and society depend. While the modern concept of sustainable
development is derived most strongly from the 1987 Brundtland Report, it is rooted in earlier
ideas about sustainable forest management and twentieth century environmental concerns.
The World Conservation Strategy Report defined it as the integration of conservation and
development to ensure that modifications to the planet do indeed secure the survival and wellbeing of all people. Sustainable development recognizes that growth must be both inclusive and
environmentally sound to reduce poverty and build shared prosperity for todays population and
to continue to meet the needs of future generations. Therefore, the key to development is welfare
of the people with a simultaneous nurturing of natural resources.
There exist two dimensions of human needs: (1) the fulfillment of basic needs like food,
clothing, shelter and a clean environment; and (2) the option of pursuing a chosen lifestyle, in

terms of materialistic possessions. A good governance strategy promises a better standard of

living and how this can be realised depends on the integrated approach adopted by the
government. Thus an intermittent linkage has been established between both the aspects.
The National Human Development Report (2001) states that governance for human
development relates to the management of all such processes that, in any society, define the
environment which permits and enables individuals to raise their capacity levels, on one hand,
and provide opportunities to realise their potential and enlarge the set of available choices, on the
other. Governance, therefore, requires the states to exercise their power through various
designated bodies and pursue the said goals through an equitable, socially sensitive, nondiscriminatory and participatory approach involving people at large. The most important factor is
the accountability of the state in governance.
The governance for sustainable governance should include an integrated approach of economic
and environmental concerns in the development strategy, keeping in view not only the quality of
life that has to be offered to its citizens but also an equal distribution of it with social equity as
its goal. Governance should also safeguard a citizens right to develop, simultaneously holding
the environmental concerns at a high pedestal. The prerequisites towards achieving this goal
include democracy, autonomy, fairness, interdependence, responsibility and accountability.
The failure to adequately protect environmental integrity and support social welfare on the
ground is largely due to a lack of coherent, forward-looking and integrated global-local
frameworks for sustainable development. Many participants continue to observe that the
environmental governance regime has yet to sufficiently address the weaknesses, imbalances and
inequities in global governance systems which, having developed in an ad hoc manner, have
indeed left many gaps.
The implementation of sustainable development goals must be pursued by integrating them into
regional and sub-regional institutions, including through the development of strategies, peer
review and monitoring, and region-to-region cooperation. Good governance which drives the
achievement of development results must also now rise to the challenge of achieving the
equitable and sustainable development which will secure our common future.