UPSC MainsPUBLIC-ADMINISTRATION-PAPER-II201610 Marks150 Words
Q19.

“The concept of 'new localism' is related to the emerging nature of the relationship between the State Governments and local government bodies.” Explain.

How to Approach

This question requires understanding the evolving dynamics between state governments and local bodies in India. The answer should define 'new localism', explain its drivers (constitutional amendments, devolution of funds, political factors), and illustrate how it differs from traditional centre-state relations. Structure the answer by first defining the concept, then detailing the factors contributing to it, and finally, explaining its implications for governance. Focus on the 73rd and 74th Constitutional Amendments as pivotal points.

Model Answer

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Introduction

The concept of ‘new localism’ signifies a shift in governance paradigms, moving away from a traditionally centralized system towards greater decentralization and empowerment of local government bodies. Historically, India’s governance structure was characterized by a strong centre and state governments, with local bodies playing a limited role. However, the 73rd and 74th Constitutional Amendments (1992) marked a turning point, constitutionally recognizing local bodies – Panchayats and Municipalities – and mandating their establishment. This has led to a re-negotiation of power dynamics, fostering a new relationship between State Governments and these local bodies, which is the essence of ‘new localism’.

Understanding ‘New Localism’

‘New localism’ isn’t merely decentralization; it represents a more nuanced relationship. It acknowledges the increasing importance of local contexts, local knowledge, and local participation in addressing developmental challenges. It’s characterized by:

  • Increased Devolution of Funds: State Finance Commissions (SFCs) are mandated to recommend principles governing the distribution of taxes, duties, tolls, and fees between the state and local bodies.
  • Functional Devolution: Transfer of functions, functionaries, and funds to local bodies, enabling them to perform crucial roles in areas like water supply, sanitation, education, and healthcare.
  • Political Empowerment: Direct elections to local bodies, ensuring greater accountability and responsiveness to local needs.
  • Local Capacity Building: Initiatives aimed at strengthening the administrative and financial capabilities of local bodies.

Drivers of ‘New Localism’

Several factors have contributed to the emergence of ‘new localism’:

Constitutional Amendments (73rd & 74th)

These amendments provided constitutional status to Panchayats and Municipalities, ensuring regular elections, reservation of seats for marginalized groups, and establishment of SFCs and State Election Commissions. This fundamentally altered the power equation.

Fiscal Decentralization

The recommendations of various Finance Commissions (especially the 14th and 15th) have emphasized greater devolution of funds to local bodies. The share of states’ divisible pool allocated to local bodies has increased over time.

Political Factors

Increased political awareness among citizens and demand for greater participation in decision-making have pushed state governments to empower local bodies. The rise of regional political parties often advocating for local issues has also played a role.

Demand for Responsive Governance

Citizens increasingly demand governance that is responsive to their specific needs and concerns. Local bodies, being closer to the people, are better positioned to address these needs.

Implications for State-Local Relations

The relationship between State Governments and local bodies is no longer simply one of control and supervision. It’s evolving into a more collaborative and cooperative partnership, though challenges remain.

Traditional Model ‘New Localism’ Model
Top-down approach Bottom-up and participatory approach
State control over local bodies Greater autonomy and decision-making power for local bodies
Limited financial resources for local bodies Increased devolution of funds and financial independence
Weak local capacity Focus on capacity building and skill development

However, challenges such as inadequate financial resources, lack of trained personnel, and political interference from state governments continue to hinder the full realization of ‘new localism’. Instances of state governments delaying elections to local bodies or overriding their decisions are still prevalent.

Conclusion

‘New localism’ represents a significant shift in India’s governance landscape, fostering a more decentralized and participatory system. While the 73rd and 74th Amendments laid the foundation, sustained efforts are needed to address the existing challenges and ensure genuine empowerment of local bodies. Strengthening the financial and administrative capacities of local bodies, promoting greater transparency and accountability, and fostering a collaborative relationship between state governments and local bodies are crucial for realizing the full potential of ‘new localism’ and achieving inclusive and sustainable development.

Answer Length

This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.

Additional Resources

Key Definitions

Decentralization
The transfer of authority and responsibility from a central authority to lower levels, typically local governments or administrative units.
State List & Concurrent List
The Seventh Schedule of the Constitution defines subjects under the State List (exclusive powers of states) and Concurrent List (powers shared between Centre and States). Many functions devolved to local bodies relate to subjects in these lists.

Key Statistics

As per the Ministry of Panchayati Raj (2023), over 2.43 lakh Panchayats are functional across India.

Source: Ministry of Panchayati Raj, Annual Report 2023

According to the 15th Finance Commission, the share of states’ divisible pool transferred to local bodies should be 2.5%.

Source: 15th Finance Commission Report (2020-21)

Examples

Kerala’s People’s Plan Campaign

Launched in 1996, this campaign aimed at decentralized planning by involving local communities in identifying and prioritizing development projects. It significantly improved the effectiveness of public spending and empowered local bodies.

Frequently Asked Questions

What is the role of State Finance Commissions (SFCs)?

SFCs are constitutional bodies that review the financial position of Panchayats and Municipalities and make recommendations to the Governor regarding the principles governing the distribution of taxes, duties, tolls, and fees between the state and local bodies.

Topics Covered

PolityGovernanceLocal GovernanceFederalismDecentralization