Decentralization

This is the presentation slide on "Decentralization" in context to Nepal.

1. Decentralization Bikram Adhikari

2. Definition Decentralization (decentralizing governance) refers to the restructuring or reorganization of authority so that there is a system of co-responsibility between institutions of governance at the central, regional and local levels according to the principle of subsidiary, thus increasing the overall quality and effectiveness of the system of governance, while increasing the authority and capacities of sub-national levels .(UNDP)

3. Definition Decentralization is the process by which the activities of an organization, particularly those regarding planning and decision-making, are distributed or delegated away from a central, authoritative location or group. Part of overall Governance System

4. Definition Decentralization: It is not An alternative to centralization. Both are needed The complementary roles of national and sub-national actors should be determined by analyzing the most effective ways and means of achieving a desired objective . Exclusively public sector reform Decentralization is much more than public sector , civil service or administrative reform . It involves the roles and relationships of all

5. Forms of Decentralization (From UNDP) Devolution The first type is autonomous lower-level units, such as provincial, district , local authorities that are legally constituted as separate governance bodies. The transfer of authorities to such units is often referred to as devolution. It is the most common understanding of genuine decentralization. Devolution is an arrangement in which there are reciprocal, mutually beneficial, and coordinate relationships between central and local governments.

6. Forms of Decentralization (From UNDP) Delegation The second type is semi-autonomous lower-level units, such as urban or regional development corporations to whom aspects of governance are delegated through legislation or under contract. This is a fairly common variant of decentralization that stops short of devolution , but involves significant delegation of authorities and responsibilities. Delegation refers to the transfer of government decision-making and administrative authority and/or responsibility for carefully spelled out tasks to institutions and organizations that are either under government indirect control or semi-independent .

7. Forms of Decentralization (From UNDP) Deconcentration The third type is sub-ordinate lower-level units or sub-units , such as regional, district or local offices of the central administration or service delivery organization It involves the transfer of authority for specific decision-making , financial and management functions by administrative means to different levels under the same jurisdictional authority of the central government . This is the least extensive type of administrative decentralization and the most common found in developing countries.

8. Forms of Decentralization (From UNDP) Divestment/Privatization The fourth type refers to units external to the formal governmental structure ( non-governmental or private), such as NGOs, corporations and companies. While sometimes included in discussions of decentralization, the nature of these transfers is not level-specific , i.e., transfers could occur at the same level, which is often the central one . These phenomena are best not treated as forms of decentralization, but of divestment. Divestment occurs when planning and administrative responsibility or other public functions are transferred from government to voluntary , private, or non-government institutions.

9. Characteristics of Decentralization DECENTRALIZATION AS A TREND A large number of developing and transitional countries have embarked on some form of decentralization programmes . This trend is coupled with a growing interest in the role of civil society and the private sector as partners to governments in seeking new ways of service delivery . The practice of decentralization has so far produced cases of both success and failure.

10. Characteristics of Decentralization DECENTRALIZATION AS A PROCESS Some believe it as process Decentralization should not be considered as a process, but a way of life and a state of mind based on the principles of freedom, respect and participation.

11. Characteristics of Decentralization DECENTRALIZATION AS A COUNTERPOINT TO GLOBALIZATION Globalization often removes decisions from the local and national stage to the global sphere of multi-national or non-national interests. Decentralization on the other hand brings decision-making back to the sub-national and local levels. In designing decentralization strategies it is necessary to view the interrelations of these various dimensions –global , regional, national, sub-national , local.

12. Characteristics of Decentralization DECENTRALIZATION AS A MIX OF FOUR DIMENSIONS the collective/exterior, the collective/interior, the individual/exterior and the individual/interior.

13. Decentralization for Rural Development POTENTIAL for Rural Development: Fiscal Decentralization and Pro-poor Budget Political Decentralization and Local Participation Administrative Decentralization and Institutional Approach in Poverty Alleviation Challenges for Rural Development Inadequate Revenue and Culture of Budget Secrecy Insufficient Social Capital Low Capacity of Local Institutions

14. Decentralization of Nepal (past to present)

15. Decentralization of Nepal (past to present)

16. Decentralization of Nepal (past to present)

17. Decentralization of Nepal (past to present)

18. Decentralization of Nepal Few Facts: The Constitution of the Kingdom of Nepal (1991) has included decentralization as one of the guiding principle of the state policy in Article 25 (4) which states decentralization as "the means of ensuring optimum participation of people in governance and hence enjoy the benefits of democracy ". The Ninth Plan has included decentralized governance as its major policy thrust to promote rural and local development towards alleviating poverty.

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