The Hindu : Kerala / Thiruvananthapuram News : Pact with Centre a boost to decentralisation process in Kerala

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Friday, Sep 22, 2006
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Kerala

Kerala - Thiruvananthapuram

Pact with Centre a boost to decentralisation process in Kerala

C. Gouridasan Nair

Aiyar's pat suggests the significance the Centre attaches to the initiatives

THIRUVANANTHAPURAM: The agreement for Central-State cooperation to strengthen the Panchayati Raj system in Kerala is a major boost for the decade-old democratic decentralisation initiative in the State and a virtual stamp of approval for the work done by the architects of the People's Plan Campaign.

That Union Minister for Panchayati Raj Mani Shankar Aiyar came down to the State a second time for the specific purpose of inking the pact between him and Chief Minister V.S. Achuthanandan suggests the significance that the Centre attaches to the Kerala initiatives for deepening democracy. Despite all its ills, the Panchayati Raj system in Kerala has acquired the dimensions of a model of sorts for the nation as a whole and the offer of support from the Centre for the process is a stout endorsement of this. It is all the more significant because Mr. Aiyar has overlooked possible objections from his Congress colleagues in Kerala to pat the Left Democratic Front (LDF) Government on its back for its work on the contentious decentralisation front.

The `joint statement', which commits the Central and State Governments to certain specific actions and goals, is notable both for the promises that the Central Government has held out and the responsibilities that the State has undertaken to make local self-government institutions efficient, transparent and truly representative in form and content.

For instance, the State Government has committed itself to several measures that would ensure good governance at the level of the local bodies, effective and timely devolution of funds to the lower levels from the Consolidated Fund of the State Government and generation of own resources at the panchayat level. Coupled with the steps envisaged for greater fiscal responsibility, transparency and entrepreneurial initiatives at the local level, the State Government's commitments should add more substance to the democratic decentralisation.

Architects of the People's Plan Campaign and new regime of decentralised governance, particularly Finance Minister T.M. Isaac and Local Self Government Minister Paloli Mohammed Kutty, have been having a tough time defending Kerala's achievements following disclosures about the poor absorptive capacity of the local bodies and corruption and diversion of funds by functionaries at the grassroots.

Although not visible to many, the Department of Local Self-Government has been working all these years to plug the loopholes in the system. Although the Congress has aired much criticism about the decentralisation process, the former Chief Minister A.K. Antony and Local Self-Government Minister in the UDF Government Kutty Ahamed Kutty too were careful about keeping the decentralisation bandwagon on track and had played their bit in ensuring that the initiatives launched in 1996 did not fail. The Union Government's decision to support the programme in Kerala in the coming years shows that their efforts have not gone waste.

The system of decentralised planning and governance in Kerala have moved a long way from the `campaign mode' of the first phase, but there is still a great distance to cover to institutionalise the process and to turn the focus of attention from asset creation to goods and services production at the local level in an organised manner. The commitments made by the State Government in the joint statement are reflective of this. The commitment to link local economic development plans with panchayat-level plans, to design a framework for increased investment for infrastructure development through panchayats and, most importantly, to create Rural Business Hubs (RBHs) linked to the cooperative movement are all significant for the way they seek to achieve the larger goals.

Business clusters

The Rural Business Hub clusters are to be developed focused on Kudumbashree units so as to ensure inclusive economic development. Micro enterprise clusters focusing in particular on a range of new activities would also be facilitated by the panchayats, individually and collectively, on the basis of local potential.

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