Kerala’s Decentralized Success Story

The Local Self-Government Department in Kerala is metamorphosing into local governments in its fullest sense. From realizing the decentralization of power to rational distribution of resources, the local self-government bodies are also rendering excellent service to the various facets of public life. A wide range of programs, from total sanitation to eradication of extreme poverty, are now being initiated by the local self-government bodies. They have also made great strides into the creation of wealth and thereby raising the income and standard of living of the people. As decentralization and people’s planning completes a quarter of a century of their existence, Kerala’s experience is that the roots of democracy, in its comprehensive sense, have penetrated to their lowest levels ever. The key task undertaken by the local self-government bodies is to reflect decentralization in economic activities as well as in the manufacturing sector as strongly as it can. The government regards local economic development as an important program. The Fourteenth Plan emphasizes on expediting the economic development of Kerala. The core aspect of this program is to enhance the growth of the local economy and job creation. In the context of further decentralization of economic activities, the local self-governing bodies are making the most of such opportunities and are executing projects to provide employment and income to the people.

Necessary steps have been initiated to ensure sustainable economic growth by consolidating the gains that Kerala has already achieved. Plans are afoot to develop the state’s economy in a knowledge-based manner, and priority is being accorded to revive the manufacturing sector with modern knowledge. The Local Self-Government Bodies in Kerala have kick-started the mission of decentralizing this process and implementing it effectively. The Pinarayi Vijayan governments of Kerala have taken continuous efforts to transform the local self-governing institutions, which neither had any significant responsibilities to execute nor maintained a close relation with people’s life five decades ago, into agencies that make a comprehensive approach towards public life. A cursory glance at the current status of the administrative reforms initiated by the EMS ministry of 1957 is enough for one to realize that no other state in the country has approached the decentralization of power so comprehensively as Kerala. In fact, Kerala could set a good example of decentralization of power even before the parliament passed the 73rd and 74th constitutional amendments in 1993. The District Councils, which came into effect through the District Council elections in January 1991, had been bestowed with extensive powers by the then Government of Kerala. It also included the transfer of as many as 150 powers, which had been originally held by the state government, were transferred to these district councils. The powers of the district councils, however, were drastically curtailed during the tenure of the government that came to power subsequently.

The criticism raised by EMS about the 73rd and 74th constitutional amendments passed by the Parliament still holds relevance. The law was framed by separating the administrative systems for urban civic bodies and panchayats into two watertight compartments. It, however, has the limitation that the administration of a district cannot be done by considering it as a single revenue unit. Municipalities and Corporations have been kept outside the jurisdiction of the District Panchayat. Another criticism raised by EMS, meanwhile, pertained to a proposal by the central government to devolve power to the states without actually delegating its power or resources. Despite this limitation, Kerala took this opportunity—of passing the 73rd and 74th Constitutional Amendments by the Parliament—to transfer more powers and resources to the local administrative mechanisms. Through the People’s Planning campaign, ordinary citizens gained the power to decide on the development programs required for them, and this way, regional development projects were implemented in a widespread manner. It was the Left Democratic Front government of 1996 that took up decentralization and public planning as an important program. It has made inclusive governance and development a reality. Even though no major gains could be made in the manufacturing sector, widespread development took place all over Kerala to address the key requirements of rural regions. As we examine it now, the second phase of public planning that started in 2017 has helped the manufacturing sector to achieve the progress that once remained elusive. The key reason for this is that the local self-government bodies have now been able to access funds based on requirement. Apart from the assistance extended by the state government, new avenues for earning one’s income have been opened up, and the collection of taxes was activated. If the total assistance given by the state government to the local self-government bodies in 1996, just ahead of the People’s Planning, was Rs. 125 crores, it rose to 1046 crores in 1997-98.

Currently, about 27.19 percent of the plan funds in the state budget have been earmarked for the local selfgovernment bodies. 6.5 percent of the overall revenue income is given to the local self-government bodies as asset protection, besides another 3.5 percent as a general-purpose grant. The development achieved in the rural sector during the first quartercentury of People’s Planning is indeed astounding. The decentralization of power and resources through local self-governing institutions has played a major role in achieving this unique feat. If there were only 1.15 lakh km of rural roads in Kerala during 1995-96, it now stands around 2.5 lakh kilometers. While about 20 lakh houses could be constructed for the homeless in the state till 2020, as many as 3.6 lakh houses have been constructed so far since the launch of the LIFE project. Complete elimination of open defecation too has been made a reality. While about 28 percent of the population depended on the state’s public health institutions till a quarter of a century ago, it has risen to 48 percent after the local self-governing bodies took control of these public health institutions up to the district hospitals. Over the years, these hospitals have also been subjected to an unprecedented scale of modernization.

The infant mortality rate has fallen from 15 to six over the period, and Kerala now boasts the lowest poverty rate in India. As per the last report of NITI Aayog, poverty in Kerala was 0.7 percent, and this has come down further to 0.55 percent in the latest report. 10 percent of the plan funds are now being earmarked for projects that are managed by and benefit women. Over the last seven years, nearly two lakh students from unaided private schools moved to the government schools. Under the leadership of the local self-governing bodies, the public educational institutions have been able to emerge as the best provider of education. In the second phase of People’s Planning, which was launched in 2017, special emphasis was placed on the growth of agriculture and industry. The results of these initiatives are gradually beginning to show up. The total area under paddy cultivation has increased considerably. A special scheme for launching cultivation on barren land was implemented in association with agencies like Kudumbashree. Presently, there are around 74,000 Joint Liability Groups (JLGs) in the state to promote collective farming, while about 96,000 micro-enterprises are also functioning under Kudumbashree. The Local Self-Government bodies are also taking the initiative to prepare the necessary infrastructure for agriculture and allied sectors. A comprehensive plan to make 64,006 extremely poor people poverty-free in two years is being implemented meticulously.

The Digi Kerala initiative is yet another proud project that aims to make the people digitally literate. Kerala is also the state that runs the employment guarantee scheme most effectively. More than half of the elected representatives in local self-government bodies are currently women. And not just in their representation of leadership, women in Kerala have also been empowered to a considerable extent as beneficiaries of development and as key contributors to the process of wealth creation. The Kudumbashree, which plays an important role in development and wealth creation, boasts a strong membership base of 46.16 lakh. This way, Kerala has been able to achieve comprehensive growth that left a mark on all sectors within a quarter of a century of decentralized planning and decentralization of power. Let’s work together to make these gains stronger and more sustainable.