Sponsored by the World Bank's Public Information Center and South Asia Regional Vice President
based on a recent Oxford University Press publication Tuesday, Dec. 7, 2004
12 to 2 pm
World Bank MC Building Room MC2-800
1818 H St. NW
All non-Bank attendees must send an RSVP to pspringer@worldbank.org
Presentation followed by light lunch
This volume presents a case for fiscal decentralization to panchayats. The intent is to strengthen panchayat-level governance and improve the performance and delivery of critical functions assigned to them.
The worldwide trend towards decentralization has been accompanied by heated debates on its costs and benefits. While there are some perceived costs in terms of reduced central ability to implement macroeconomic stabilization programs and possible efficiency losses due to poor local capacity, it has been strongly argued in its favor that decentralization results in better service delivery, popular involvement in governance, and revenue mobilization.
Effective decentralization requires the calibration of administrative, political, and fiscal dimensions. Without political decentralization, participatory decision-making is not possible. Administrative decentralization is necessary to implement political decisions, and an important precondition for fiscal decentralization. Efficiency in the delivery of public services depends on administrative efficiency and accountability.
With special focus on rural India, this report uses case studies of Karnataka and Kerala to review panchayat finances and make recommendations for effective governance. To assess rural local government finance in India, it is useful to compare the system with current thinking on a well-functioning intergovernmental fiscal system. Given India's size and diversity, it is not easy to achieve effective representation. Overall, decentralization in India is unfinished: it has put local governments in place but not endowed them with the means to deliver results.
Welcoming remarks: Praful Patel
Vice President for South Asia, World Bank
Praful Patel, a Ugandan national, is the Vice President for the South Asia Region at the World Bank. He oversees the Bank's Operations in Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, Sri Lanka. Mr. Patel joined the Bank in January 1974 as part of the Young Professionals Program. Upon graduation from this program, he was appointed Urban and Regional Planner in the Transport and Urban Projects Department, where he was promoted to Deputy Division Chief in December 1979. In October 1984, he was promoted to the position of Program Coordinator in the Office of the Regional Vice President, Europe, Middle East & North Africa (MENA). In 1987, he was appointed Division Chief of the Infrastructure Operations Division in CD2 of the Asia Region. In February 1991, he was appointed Country Operations Division Chief in the Southern Africa Department. In May 1996, he became Director, Finance, Private Sector and Infrastructure, Africa Region. From this position, he was promoted to his current position as Regional Vice President, South Asia.
Chander M. Vasudev is the Executive Director, World Bank, representing India, Bangladesh, Sri Lanka and Bhutan. He is a member of the Indian Administrative Service and has wide experience as a development practitioner and implementation of development schemes at the district level, sub-national State Government level and National Government level. Significant assignments in the state government included those dealing with Rural Development, Irrigation, Development of Small Scale Industries. He also worked as Principal Secretary (Finance) in the State Government of Uttar Pradesh. From 1995 to 2002 Mr. Vasudev worked in the Ministry of Finance, Government of India at
senior policy making positions including those of Secretary of Banking, Secretary of Public Expenditure Department and Secretary of Economic Affairs Department. During this period, he was closely associated in shaping the agenda for Economic Reforms in India.
Moderator, Shanta Devarajan
Chief Economist for South Asia, World Bank
Shantayanan Devarajan is the Chief Economist of the World Bank’s South Asia Region and Editor of the World Bank Research Observer. This year he was director of the World Development Report 2004: Making Services Work for Poor People. Since joining the World Bank in 1991, he has been a Principal Economist and Research Manager for Public Economics in the Development Research Group, as well as the Chief Economist of the Human Development Network. Before 1991, he was no the faculty at Harvard University’s John F. Kennedy School of Government. The author and co-author of over 100 publications, Mr. Devarajan’s research covers public economics, trade policy, natural resources, and the environment, and general equilibrium modeling of developing countries. Born in Sri Lanka, Mr. Devarajan received his B.A. in mathematics from Princeton University and his Ph.D. in economics from the University of California, Berkeley.
Presentations:
Geeta Sethi, Senior Economist for South Asia, World Bank
Ms. Geeta Sethi is a Senior Economist in the South Asia Region focusing on issues around inter-governmental fiscal relations. Her Phd work focused on trade. She has publised works in both trade and fiscal decentralization.
Sudha Pillai, Secretary of Local Governments, Government of India
Ms. Sudha Pillai, Secretary Local Governments, Government of India, holds a BA in English Literature, and a Masters degree in Psychology -both from Panjab University, Chandigarh. Ms. Pillai also received a Masters degree in Public Administration from Harvard University, and worked in the finance department of the Kerala Government. Roy Bahl, Dean, Andrew Young School of Policy Studies/Georgia State University
Mr. Roy Bahl is Dean of the Andrew Young School of Policy Studies, and Professor of Economics and Public Administration at Georgia State University. He has previously held positions at Syracuse University, West Virginia University, and the International Monetary Fund. Professor Bahl is the author of numerous books, monographs, and scholarly papers, and serves as a member of the editorial boards of several journals. He is the principal economic advisor to IBM's Worldwide Tax Group, member of the Board of Directors of the Land Reform Training Institute in Taiwan and former Chairman of the International Tax Advisory Board of KPMG-Peat Marwick.
For more information or to order this title, visit Fiscal Decentralization to Rural Governments in India About the World Bank InfoShop The InfoShop is the public information center and development bookstore of the World Bank located in Washington DC. It functions as the only publicly accessible space at headquarters aimed at giving both World Bank staff and external audiences a resource center to over 6000 titles published by the World Bank, as well as other international organizations and publishers on development issues. It is a space where information and documents on World Bank development operations, economic data, and strategies, can be accessed easily and comfortably at workstations designed for public use. The InfoShop also carries videos, posters, CD-Roms and gift items. In addition, the InfoShop hosts on a regular basis book launches, exhibits, seminars, receptions and other community outreach events. For more information, visit www.worldbank.org/infoshop
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