The Republic of INDIA

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Lionel Harvey
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1 The Republic of INDIA Surface Area (1997) 3,287,590 km 2 Population (1999) in millions Population Growth (1999) 2 % p.a. Urban Population (1999) 28 % of total Population Density (1997) 324 inh./ km 2 Government Revenue (1999) 15.5 % of GDP Government Expenditure (1999) 15.5 % of GDP GDP (1999) in billions US$ GNP (1999) in billions US$ GNP per capita (1999) US$ 450 Monetary Unit Indian Rupee Human Development Indicator (1998) 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 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) 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, at block level and 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 Yet, agriculture offers income and livelihood opportunities to more than 55 % of the population. In terms of trade, agriculture

3 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 , 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 Inter- Ministerial 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 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 9 th Five Year Plan ( ).

4 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 73 rd 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 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 73 rd Constitutional Amendment Act legislated in 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 11 th

5 5 Schedule of the Constitution of India, whereas those of State Government are defined in the 7 th 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 73 rd 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 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 73 rd 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 73 rd 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 73 rd 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 11 th 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 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 73 rd 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 8 Prospect The India's experience in decentralization reveals the difficulty of actually and effectively applying the progressive legislation, the 73 rd 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.

Republic of The PHILIPPINES

Republic of The PHILIPPINES Surface Area (1997) 300,000 km 2 Population (1999) 76.785 million Population Growth (1999) 2 % p.a. Urban Population (1999) 58 % of total Population Density (1997) 247 inh./