DECENTRALIZATION IN KERALA

Following the 73rd and 74th Constitutional Amendments, decentralization efforts in the country have received increasing emphasis in several states. However, the GOKs bold moves to decentralize all relevant functions to local institutions with an adequate financial backing and transfer of staff from the line departments clearly marks a new era in decentralization of the country. The Kerala experiment initiated under the 'People's Campaign for Decentralized Planning' makes a new beginning by devolving a large proportion of the state plan funds to local authorities as "ntied grants" for developmental works.

Background: GPs in Kerala present an unique opportunity due to their larger size with an average estimated population of over 30,000 and a relatively more urban habitation. Except for a few GPs in the homesteads, with a large proportion of the households possessing individual plots. In most cases, unlike generally do not have class based spatial segregation. This would have important implications for the project, as communities will tend to be more heterogeneous.

Another unique feature of the gram panchayats in Kerala is the very high level of neighborhood based community mobilization. Many of the GOI programs based on the community mobilization paradigm have been very successful here. Locally, these units are known as 'ayalkootams' and represent informal community organizations, who participate in the Iocal level planning process. Some of the GOI programs have also used these concepts to build up the NHGs. NHGs have women members from 20 to 25 households, voluntary workers and a president. NHGs are federated at an area and concepts have been developed in urban areas, though plans to achieve full coverage of the NHGs, ADSs, and CDSs by 2000, in rural areas are also underway. In the Malappuram district full coverage has been also achieved in rural areas. Innovative approaches combining non economic criteria for selection of BPL families that were initiated in Kerala have now been mainstreamed through GOI programs throughout the country.

This strength of neighborhood level community mobilization has been captured in the use of gram sabhas at the ward level. A ward is the smallest political unit with an average population of 2,000 people. It elects a representative as a member of the gram panchayat. The number of wards in a GP generally ranges from 8 to 15. These ward members elect a president and members of different committees.

Main highlights of decentralization: The decentralization process was initiated in Kerala during 1997 to 1998. Its main features comprise transfer of functions to different local authorities, financial allocation through statutory and formula based transfer, and a participatory and rational planning process to ensure appropriate and equitable utilization of funds. It aims to be flexible while ensuring accountability and transparency in the process.

Transfer of function: Given their relatively larger size, GPs in Kerala represent an ideal threshold for many services and functions, such as a primary health center, veterinary institution and krishi bhavan as well as several schools and anganwadis. Thus, decentralization has been effected across all sectors as relevant. Mot of the field staff of the line departments has already been transferred to the GPs or other Panchayati Raj Institutions at the block or district levels. Though their salaries are being met by the state government, they report directly to the GP, as the disciplinary and leave granting authority. GP also allocates work to these functionaries. IN February 1999, GOK took a major policy decision to transfer the small rural water supply schemes from the KWA to the GPs, Along with this, appropriate amendments have been made in the Kerala Panchayat Raj Act 1994 to enable the GPs to collect charges from consumers for the water schemes financed, implemented and operated by them. Although over the last two years, GPs have been allocating funds for WSS from their share to the plan funds, most panchayaths are reactant to take over the existing schemes without having adequate information on their condition and the costs involved in rehabilitation and running these later.

Financial allocations and fund flows: In probably the boldest move in this process. GOK has decided to transfer about 35% of its plan funds directly to local authorities as developmental grants. Infra allocation across panchayaths has also been made formula based using indicators related to population, geographical area, area under paddy, own income of gram panchayaths and a composite employment index.