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Decentralisation & local government

Rethinking conceptual foundations of Kerala's decentralisation in light of the experience during the past decade

Local self government in Kerala: can decentralisation be enhanced?

Authors: V. Santhakumar
Publisher: Centre for Development Studies, Kerala, India, 2008

This paper highlights the limitations of Kerala's local self governments (LSG's) calling for a rethinking of the conceptual foundations of the state's decentralisation programme. 

The paper points out the many limitations in the functioning of local self governments in Kerala, including:

  • a significant part of the funds allocated to the local governments is spent without deriving much benefit and wasteful expenditure exists
  • many schemes are planned and implemented by the local governments with scant regard for their potential impact on the economic situation of the locality, or for the ability of the LSG to manage such schemes
  • grama sabhas were expected to play a major role in deciding and monitoring the activities of LSGs, but the opportunity cost of public resources is not adequately reflected in the choice of the schemes made by grama sabhas
  • in the execution of projects, it was planned to avoid contractors, and their role was to be taken over by beneficiary committees, but these committees have proved non-functional
  • it was expected that along with the transfer of a substantial set of functions to the local governments, adequate numbers of employees would also be transferred, but this has not happened and local governments struggle to cope
  • little progress has been made in the use of IT in improving the governance of LSGs
The paper recommends:
  • a rethinking of the role of grama sabhas - governance and resource allocation should be made more effective without the regular intervention and monitoring of the grama sabhas and other such citizens’ forums
  • only by increasing the proportion of local contribution in the overall revenue of local governments, would local interest in careful spending be enhanced - local governments should expand their own local sources of income, not only by enhancing tax rates, but also by collecting taxes efficiently; they should also provide useful services and impose reasonable charges for them
  • the real challenge is to know how to use the merits of the contract system without allowing contractors to minimise costs in ways that affect quality of construction as contractors are required because beneficiary committees do not possess the required skills and equipment
  • temporary recruitment by local government, from among the persons working in other government offices, on a competitive basis and on merit as a better solution to address the the staff shortages