On Panchayat: A Study of Decentralization in India and Policy Recommendation

Abstract

This paper aims to study India’s decentralization process, which focuses on the Panchayat or the village government as a demonstration of success in India’s decentralization. This paper employs documentary research with a systemic review of relevant literature, articles, and documents on India's decentralization policy after independence up to the present (during 1947-2020). This paper found that India emphasizes people participation and decentralization, primarily through the Panchayat, which the constitution has authorized. The Indian government also established the Ministry of Panchayati Raj to facilitate the process of decentralization. The key success of India’s decentralization is related to its financial decentralization that allows the local government to collect tax and financial supports. This research also suggests five recommendations to increase the level of decentralization. First, decentralization must be written in a country’s constitution. Second, decentralization could effectively work with a unitary state with a federal feature. Third, the village is the foundation of decentralization. Fourth, the state should establish or form a ministry or another form of a government body to implement a policy of decentralization. Finally, decentralization must be political, administrative, and financial.