How to deliver governance through decentralisation

Decentralisation holds promise, but only if implemented meaningfully. India must go beyond formal mandates.

- ARIJIT DASH & AVINASH KUMAR

Since the 1970s, decentralisation has emerged as a global trend. Countries across the world have embraced various degrees of devolution, shifting governance closer to the people.

The rationale behind this shift has evolved—from one rooted in cultural and linguistic identity to a more pragmatic discourse focused on delivering economic and social transformation.

The theoretical case is compelling. Local governments are presumed to better understand and respond to community needs, making governance both more participatory and efficient.

Take, for example, the United Kingdom. In Scotland, the elderly benefit from free personal care, while in England, the same service is deemed too expensive. This divergence underscores how decentralisation can tailor policies to local preferences.

THE EFFICIENCY DILEMMA

Proponents of decentralisation argue that it brings governance closer to the people, enhances accountability, and improves outcomes. But the picture is more complex.

Firstly, Centralised systems often benefit from economies of scale, delivering services more cost-effectively while also providing clearer lines of responsibility. By contrast, decentralised systems may suffer from overlapping jurisdictions, weak institutions, and blurred accountability.